February 21, 2011

Whom It May Concern
KYORIN Holdings, Inc.
Securities Code: 4569, TSE 1st Sec.

KYORIN Group’s Participation in Environmental Hygiene
KYORIN Holdings, Inc. (Head office: Chiyoda-ku, Tokyo, Representative Director, President and Chief
Executive Officer: Masahiro Yamashita) has decided to launch an environmental hygiene business as a new businessin the healthcare domain.
1.

Background to participation in environmental hygiene
As people’s lifestyles change and health-related needs become increasingly more diversified, KYORIN Group will aim
to manage the risk of a pharmaceutical business and grow the group continuously through multinuclearity in thehealthcare business, while incorporating the creation of new businesses in the healthcare field in its New Medium-TermBusiness Plan “HOPE 100 Stage 1” (FY2010-FY2015).
Under this policy, the group has decided to take a proactive approach to an environmental hygiene business so as tocontribute to medical needs and health through environmental infection control.
2.

About the environmental hygiene business
The group regards environmental hygiene as being about approaching the issues of health and diseases from theenvironment surrounding humans and improving the environment in areas where it is harmful to humans, in order tomaintain and improve health.
As the first step toward the creation of the environmental hygiene business, having established a presence in theinfection-related field with its new drug business and other activities, the group is releasing the Milton Air Cleaner Kyorin
and a special gel. The system is designed to clean facilities such as medical institutes, nursing facilities and publicfacilities.
KYORIN Medical Supply Co., Ltd. (a new trade name of Kyobundo Co., Ltd.) will promote the business while
KYORIN pharmaceutical Co.,Ltd. will manufacture the product. The group will promote the product’s dissemination to
medical institutes and other major buyers of the product, with a view to increasing the number of buyers based on theevidence regarding efficacy and safety in cooperation with KYORIN Pharmaceutical Co., Ltd., which has a track record
and knowhow in the medical field. In addition, the group will also expand the business without delay by utilizing theMilton brand, which is the brand name for disinfection/sterilization products for infants’ bottles and other related articles
that KYORIN Pharmaceutical Co., Ltd. has distributed since 1998.
Upon the launch of the new business, the group will increase the capital of KYORIN Medical Supply Co., Ltd. toreinforce its financial position.
3.
About the new product(1) Outline of the new product: See the reference material(2) Release of the new product: April 2011(3) Impact on consolidated sales and future outlook
It is expected that the release of the new product will contribute to improving the group’s performance, being
accompanied by a medium- and long-term increase in sales of the product. The impact on performance will beannounced when details are clarified after the upcoming sales track record is carefully monitored.
4.
Change of the trade name of Kyobundo Co., Ltd.
(1) New trade name: KYORIN Medical Supply Co., Ltd.
(2) Date of change: April 1, 2011
5.
Increase in capital of Kyobundo Co., Ltd.
(1) Outline of the subsidiary whose capital is increased
Trade name: Kyobundo Co., Ltd.（new trade name：KYORIN Medical Supply Co., Ltd.）
Representative: Satoru Kanai, Representative Director and President
Address: 25-13, 6-chome Nishi-shinjuku, Shinjuku-ku, Tokyo
Major business domains: Sales promotion, advertising planning and production
Capital: 488,000,000 yen (after capital increase)
Major shareholder: KYORIN Holdings, Inc.１００％

(2) Purpose of capital increase
To reinforce the financial position by strengthening the capital base, KYORIN Holdings,Inc., as parent company,
will contribute a total capital increase of 952,000,000 yen in March 2011.

Reference material
About the New Environmental Hygiene ProductSpecial gel■ Product nameSpace hygiene equipment

Milton Air Cleaner Kyorin

Stabilized chloride dioxide gel

Special gel for the Milton Air Cleaner Kyorin■ System name
Clo2UV System■ What is the Clo2UV (pronounced “clove”) System ?
With its potent oxidation effect, chloride dioxide (ClO2) has powerful sterilization and deodorizing properties.
It has been widely used for sterilization and odor elimination in various applications, including in drinking waterin the United States for many years. On the other hand, chloride dioxide exists in the unstable form in the air.
Accordingly, it has been a major challenge to generate the substance in a stable fashion. The group has
successfully commercialized the (patented) technology for ensuring the continuous and stable control of therelease of chloride dioxide in a business collaboration with Sunseal Chemical Co., Ltd. (Chiyoda-ku, Tokyo,Representative Director: Kohei Aoyagi) by irradiating ultraviolet rays of a specific wavelength through thespecial gel (stabilized chloride dioxide gel) made from the stabilized chloride dioxide manufactured by DuPont(United States). The group has named this safe and highly effective higiene system as the Clo2UV System.

■ Characteristics of the productz

Powerful sterilization and odor elimination effect based on the Clo2UV System