May 8, 2009
To whom it may concern:
5-2-1 Daizawa, Setagaya Ward, TokyoTOHO HOLDINGS CO., LTD.
(Tokyo Stock Exchange Securities Code: 8129)
Norio Hamada, President and CEO
Contact:
Kato Katsuya
Corporate Officer, General Manager ofCorporate Communications Office(TEL: 03-5259－9520)

Notice on the Formulation of the New Medium-term Management PlanTOHO HOLDINGS CO., LTD. hereby announces that it has formulated a new Medium-termManagement Plan, which covers the period from April 2009 to March 2012. An outline of the newMedium-term Management Plan is as follows:
1. Purpose of Formulating the Medium-term Management Plan
With the shift to the holding company system from April 2009, the Company has formulated a newMedium-term Management Plan “Challenge to be the Demand Innovator 10-12.” The Company aims
to overcome the current severe business environment as soon as possible and to be the corporate groupthat will realize by itself demand innovation in the fields of medical care and health in Japan and theworld under the corporate slogan of “Total Commitment to Good Health” with various measures toachieve new growth and full optimization and improvements in productivity by preempting rapidchanges in the medical service industry.

2. Basic policy of the Medium-term Management Plan
(1) Establishment of a new group strategy
Taking advantage of the opportunity to shift to a holding company structure, the Company will
uphold the theme “Securing Growth and Profits” in the mainstay pharmaceutical wholesaling
business and implement a zero-based review of the existing marketing strategy. In thedispensing pharmacy business, the Company will strongly support the improvement of businessefficiency and increase added value in the management of dispensing pharmacies, which areresponsible for community healthcare. Furthermore, as for other peripheral fields of medical
business, the Company plans to create a new core business so that each member company may
be able to establish a business structure that enables it to display its characteristics to themaximum and to anticipate growth.
(2)Creation of an original business model
In addition to the CS (customer satisfaction) type business model, which responds and gives
satisfaction to the customer’s actual demands, the Company will focus on creating an original
business model of the CJ (customer’s joy) type, which gives joy to the customers by satisfying
their potential needs, and will maximize corporate value.
13. Priority measures towards achievement of the Medium-term Management Plan’s goals(1) Innovation and increments in productivity in marketing activities
The Company will promote the compatibility of proposal-based marketing that is centered on
customer support and the promotion of medicines, and, at the same time, reinforce the ability tocollect pharmaceutical market information and information on customers. In addition, theCompany will continue to deploy its prime partner strategy and will be involved in activities toenhance transactions with prime customers and to develop new customers. Furthermore, theCompany will verify the importance of information-based marketing activities and realize
improvements in added value and productivity by implementing individual marketing according
to the characteristics of the customers.
(2)

Improvements in distribution efficiency and the upgrading of traceability
The Company views ensuring of safety and security in pharmaceutical distribution as one of its
top priority management issues and will promote the construction of storage and delivery
systems. The Company will materialize auto location control over pharmaceutical products
based on a production number (lot number) and an expiry date at all distribution centers, as wellas promoting innovation in distribution equipment, including the introduction of robots toimprove the efficiency of warehouse tasks.

(3)

Promotion of cash flow management
The Company will strive to improve its cash flows based on the principles of selection andconcentration and priority, through the implementation of shortening of the terms of notes andaccounts receivable, improving cost-effectiveness and screening the investment recovery planfor each new planned investment.

(4)

Human resources development to achieve a lean and active business organization
The Company sets a high value on employees aspiring to challenges from the viewpoint ofimproving the productivity of employees and will build an organizational climate that enables
employees to exert their multiple capabilities through their voluntary activities. In addition, theCompany will increase business efficiency through the promotion of cross-organizational
project activities.

4. Performance targets
Numerical targets for the performance during the new Medium-term Management Plan have been set
as follows:
Consolidated(Unit: million yen)FY2009

FY2010 (Target)

FY2011 (Target)

FY2012 (Target)

838,903

970,000

1,027,000

1,080,000

Operating income

3,022

6,000

8,000

10,500Ordinary income

6,525

9,100

12,50015,000Net sales

Note:

Demand innovation refers to understanding the priority order of the urgent problems, potentialproblems and related issues of a customer and to establish a package of products, information,
services and a network for the customers to improve their quality of life by proactively
2corresponding to these problems and issues.

3