We hereby announce that TRANS GENIC INC. (hereinafter referred to as q‡weqˆ) moved some functions of Aburahi Research Center (in Koka, Shiga-Prefecture) to Kobe Research Center on November 1, 2006 to improve its research and development capabilities.

Aburahi Research Center has conducted research and development in the field of reproductive engineering in our knockout mouse business, such as transplantation of ES cells, production of chimeric mice, establishment of knockout mice strains and preservation of sperms and embryos.

Consolidating research and development functions and setting up embryo manipulation facilities in our core laboratory of Kobe Research Center enable us to enhance our research and development capabilities based on synergy between genetic and cell engineering and reproductive engineering and streamline our existing businesses.

We consider the embryo manipulation facilities as a q‡technical center for introducing state-of-the-art technologies and improving our technologies and skills in reproductive engineeringqˆ. We intend to support the field of assisted reproductive treatments in which many of our accumulated technologies can be applied.

The effects of said reorganization on our business performance for the fiscal term ending March, 2007 are as yet immaterial.