January 5, 2012Seikagaku Corporation(Securities Code: 4548)

Seikagaku Announces a Change in Sales Partner
for SUPARTZ® in the U.S.
Tokyo, Japan, January 5, 2012 – Seikagaku Corporation (hereafter "Seikagaku")(head office: Chiyoda-ku, Tokyo) has heretofore sold SUPARTZ®, an injectable
treatment for osteoarthritis pain of the knee, in the U.S. through Smith & Nephew,
Inc. (U.S., hereafter "S&N, Inc." ), a subsidiary of Smith & Nephew plc (UK,hereafter "S&N plc"). Seikagaku hereby announces that upon the closing of theestablishment of a joint venture, Bioventus LLC (hereafter "Bioventus") between
S&N plc and Essex Woodlands, as well as the transfer of S&N, Inc.'s Clinical
Therapies business to Bioventus, Seikagaku has agreed and decided to newly
enter into an exclusive distribution agreement with Bioventus for SUPARTZ®.
Bioventus is expected to be established in the next few months and Seikagaku
plans to execute the agreement with them at that time.
The vast majority of the US management team and employees now involved inS&N, Inc.'s Clinical Therapies business will be transferred to Bioventus andcontinue to engage in the sale of SUPARTZ®. Essex Woodlands, a healthcare
growth equity and venture capital firm, will put its expertise and medium- tolong-term management resources into Bioventus and provide strong support forthe sale of SUPARTZ®.
SUPARTZ® is an injectable treatment for knee osteoarthritis pain whose active
ingredient is highly-purified hyaluronan. SUPARTZ® was approved by the U.S.
Food and Drug Administration (FDA) in 2001 as a medical device indicated fortreatment of osteoarthritis of the knee, and more than 7 million units have beenused in the U.S. since its launch. In its role as the manufacturer of SUPARTZ®,
Seikagaku will continue to support sales and promotion activities through means
including the provision of scientific information.

Reference Information(1) Overview of Bioventus
1) Company name: Bioventus LLC
2) Location: Durham, North Carolina, USA
3) Representative: Mr. Mark Augusti, President and CEO
4) Established: in the next few months
5) Business description: The Company will manufacture and sell EXOGEN◊
Ultrasound Bone Healing System and sell joint fluid therapies including
SUPARTZ®. (◊ Trademark of Smith & Nephew)
6) Net sales of the Clinical Therapies Business to be transferred from S&N, Inc.:
US$223 million (2010)(2) Overview of Essex Woodlands
With $2.5 billion under management, Essex Woodlands is one of the largest
and oldest growth equity and venture capital firms pursuing investments inhealthcare. Since its founding in 1985, Essex Woodlands has been involved in
the founding, investing, and/or management of over 120 health carecompanies.
(3) Overview of Smith & Nephew plc
1) Company name: Smith & Nephew plc
2) Location: London, United Kingdom
3) Representative: Dr. Olivier Bohuon, CEO4) Established: 1856
5) Business description: Smith & Nephew is a global medical technology
business with global leadership positions in Orthopaedic Reconstruction,
Advanced Wound Management, Sports Medicine, Trauma and Clinical
Therapies. The Company has distribution channels, purchasing agents andbuying entities in over 90 countries worldwide.
6) Net sales: approx. US$4.0 billion (2010)#######