We hereby announce that TRANS GENIC INC. (hereinafter referred to as q‡weqˆ), headquartered at Kumamoto-city, Kumamoto (CEO: Masahiro Koreishi), on 7th November, 2005 concluded an agreement with JSW-Research (hereinafter referred to as q‡JSWqˆ), headquartered in Austria (CEO: Dr. Manfred Windisch), regarding a business tie-up involving JSWq†s products and services for upgrading and expanding our customer support services.

We are developing knockout mouse models and providing information on gene functions to domestic and foreign pharmaceutical companies and academies, with the aim of drug discovery development. JSW, a research and development company based in Austria, specializes in drug development focusing on neurodegenerative disorders such as Alzheimerq†s disease and Parkinsonq†s disease, in addition to providing contract research services in Europe.

Having concluded the agreement on business tie-up involving JSWq†s products and services, we have commenced marketing JSW products and services in Japan, as well as other countries in Asia. We believe that this latest conclusion of the agreement will improve our business performance, particularly in the field of drug discovery development support.

In addition, we expect to develop our own drug discovery development business, in addition to our drug discovery development support business using knockout mouse technology. JSW possesses specific pharmacologic assessment and animal models of disease, specializing in neurodegenerative disorders, which will be key elements in the expansion of said business. Regarding this conclusion of the agreement as a first step, we therefore intend to develop our own drug discovery research.

At present, any future effect of this agreement is unknown; however, this agreement will have no influence on the earning forecast of March 2006.