May 10, 2012
Seikagaku Corporation(Securities Code: 4548)

Seikagaku Announces a New Mid-term Management Plan
Tokyo, Japan, May 10, 2012 - Seikagaku Corporation (head office: Tokyo) has
established a new mid-term management plan for the period from the fiscal year 2012
ending March 2013 (Fiscal 2012) to the fiscal year 2015 ending March 2016 (Fiscal2015). A summary of the new mid-term management plan together with the review ofthe previous plan follows.
1. The Seikagaku Corporation Ten-Year Vision, established in March 2009
The pharmaceutical industry is in a period of great transformation due to worseningfiscal crunch for medical services, large-scale realignment of pharmaceuticalcompanies across national borders, technological innovation in drug discovery researchaccompanying intensification of competition in new drug development. In this businessenvironment, Seikagaku established the Seikagaku Corporation Ten-Year Vision withthe aim of developing as a “Global Category Pharma.”
Seikagaku Corporation Ten-Year Vision
Launch new drugs (including medical devices) on a consistent basis and cultivate
the capability to open up every three years a new market that has the potential to
become a mainstay business.

Focus research and development on glycoscience and sustain steady growth as a“Global Category Pharma” that establishes global competitiveness.

2. Review of the previous mid-term management plan (Fiscal 2009 to Fiscal 2011)
Seikagaku started a three-year mid-term management plan in April 2009 and has
undertaken “the fostering of basic corporate strength and development of core systems”
as the first step toward achievement of the Vision.
During the period of the previous plan, sales volume of ARTZ® in Japan, an injectable
treatment for osteoarthritis, continuously increased and export to China also increased.
Seikagaku has started to expand production facilities to meet increasing demand. Inaddition, the U.S. subsidiary Associates of Cape Cod, Inc. achieved profitability. In thearea of new drug development, Seikagaku obtained approval in the U.S. for Gel One®, asingle-injection injectable treatment for osteoarthritis pain of the knee. SI-6603,
indicated for treatment of lumbar disc herniation, also reached the final stage ofdevelopment in Japan and its clinical trial in the U.S. is going steadily. Seikagaku1recognizes that certain achievements were made in “the fostering of basic corporate
strength and development of core systems” as a result of the above activities.
3. Outline of the new mid-term plan (Fiscal 2012 to Fiscal 2015)
On the basis of the above review, Seikagaku has established a new mid-term
management plan for a four-year period beginning in April 2012 as the second step
toward achievement of the Vision. Under this plan, Seikagaku will make proactive
investments in key strategies of research, development, production and marketing toachieve the Vision, and strive to develop new buds that will grow into future results.
Management Objective and Slogan

Develop new buds for achieving the Ten-Year Vision

Slogan: “ACT for the Future”
Advance:
Highly advanced technologies
Unafraid mind against challenges
Challenge:
Transparency: A highly transparent company

Overall Strategy(1) Research
1) In addition to broadening the scope of glycoscience research, develop a structurethat will accelerate the creation of new research themes.
2) Strengthen mechanisms and relationships that will contribute to research results
by incorporating knowledge and know-how from outside academic organizations
such as universities and research institutes.
(2) Development
1) Develop a structure that can cope with parallel development of multiple themes
and steadily advance the stages of projects in the current pipeline, starting withSI-6603, indicated for treatment of lumbar disc herniation.
2) Foster organizational strength that can achieve development on a global scale.
(3) Production
1) Steadily implement the production facilities construction plan and establish anoptimal production system.
2) Pursue cost reduction and mitigate the risk of stock-outs through greater
production efficiency by means including reduction of lead times.
3) Review the inventory policy for raw materials, etc. and also strengthen thelogistics system in preparation for a major earthquake or other emergency.
(4) Marketing
1) Increase sales by utilizing the competitive advantage of products already on themarket.
2) Seek market expansion by promoting awareness activities targeting knee

2osteoarthritis patients.
3) Increase sales in China and other overseas growth markets and step up efforts toopen up emerging markets.
Numerical Targets
Fiscal 2012 Forecast

Fiscal 2015 Goal

Net sales¥26.7 billion¥31.5 billion

Operating income¥2.6 billion¥3.0 billion*Key Assumptions
1) Increase in depreciation related to new facilities construction (to peak in Fiscal2015)
2) Increase in R&D expenses associated with advances in new drug development(ratio of R&D expenses to net sales: 20% to 30%)
3) Decline in domestic selling prices due to drug price revisions (in Fiscal 2012 andFiscal 2014)
4) Exchange rate: ¥81 to the U.S. dollar
4. Change of Dividend Policy
Seikagaku regards improving shareholder value as an important management priority
and in Fiscal 2005 introduced a performance-based dividend policy with an emphasison the dividend payout ratio. Now, taking into account changes in the business situation
surrounding the Company, Seikagaku changes its policy so that we aim at stable andcontinuous dividends with a basis of an annual dividend of ¥25 per share from Fiscal
2012, the first fiscal year for the new mid-term management plan.
* The plans and forecasts in this release have been prepared on the basis of current
assumptions about future economic conditions, market trends, and other factors. Actualresults may differ from the plans and forecasts due to various factors.

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