We hereby announce that TRANS GENIC INC. (herein referred to as q‡weqˆ), on October 24, 2005 concluded an agreement with Protosera Inc. (hereinafter referred to as q‡this companyqˆ), headquartered at Chuo, Tokyo (CEO: Yoshitsugu Tanaka), on a business tie-up concerning proteome analysis.

We develop knockout mouse models and provide information on gene functions to domestic and foreign pharmaceutical companies and academies.

On the other hand, as part of this companyq†s business goal to develop drugs specific to each therapeutic area that targets membrane proteins, this company provides information on proteome analysis.

In accordance with said October 24 agreement with this company, we introduce our customers to this company and support its marketing in the proteome analysis business.

In addition, this company and we do collaborative research toward developing drug discovery, using this companyq†s technology, based on our knockout mice and ES library established through novel gene-trap technology.

This agreement enables us to take a contingent fee by establishing new contracts between customers and this company. Furthermore, we believe that this agreement will contribute to the development of a new high-value added business, such as drug target discovery using said knockout mice technology.

The effects of said agreement on our future business performance are negligible.