We hereby announce that TRANS GENIC INC. (hereinafter referred to as q‡weqˆ) has obtained two patents on a knockout mouse that can be used as an experimental animal for drug development involving neovascularization.

Said patents (Patent number: 3711367, patent number: 3713513) had been co-applied for by three groups, Japan Science and Technology Agency, Kumamoto University, EU GENE LTD. (especially EU GENE LTD.) and Kenichi Yamamura, Professor at Kumamoto University and board member of both EU GENE LTD. and TRANS GENIC. Application was based on research achievements regarding q‡technology of knockout mouse by exchangeable gene-trap method,qˆ adopted by the Japan Science and Technology Corporation (current Japan Science and Technology Agency) as q‡pre-venture business.qˆ

Having merged EU GENE LTD., our wholly owned company, on July 1, 2005, that companyq†s equity patents have been transferred to us.

These inventions involve a novel gene knockout mouse in which a gene closely correlated with neovascularization is destroyed. We expect that these inventions will contribute as experimental research animals to drug development in the field of neovascularization.

The effects of said authorization on our future business performance are unknown, but the performance projection for the fiscal term ending March 2006 thus far remains unchanged.