Harshith Dharmadasa

Tadashi Fujisawa(Director)(CEO)

Nawaloka Holdings (Pvt) Ltd.

Mebiopharm Co., Ltd.

Colombo, Sri Lanka

Tokyo, Japan(Tokyo AIM Stock Code: 4580)

February 20, 2012
Announcement of Establishing a Joint Company in Sri Lanka
Nawaloka Holdings (Pvt) Ltd. (Colombo, Sri Lanka, Chairman: Jayantha Dharmadasa,
hereinafter “NAWALOKA") which holds a listed and the biggest private hospital in Sri Lanka,
and Mebiopharm Co., Ltd. (Tokyo, Japan, CEO: Tadashi Fujisawa, a bio-venture company ofJapan, hereinafter “MEBIO”) have established a new company jointly, N & M VENTURE
PRIVATE LIMITED (hereinafter “N & M Limited”), in healthcare business in Colombo, SriLanka on February 17, 2012.
1. Outline of N & M Limited
NAWALOKA and MEBIO established joint venture company, N & M Limited, with thepurpose to involve a healthcare business in Sri Lanka on February 17, 2012. The capital ofN & M Limited is 20,000,000 Sri Lankan Rupee, and NAWALOKA and MEBIO shall eachtake a 50% equity participation in N & M Limited (registration number is PV 84287).
N & M Limited makes the organization which can perform a human clinical developmentof medical drugs based on ICH (International Conference on Harmonization of TechnicalRequirements for Registration of Pharmaceuticals for Human Use) guidelines which is a
global standard, and provides, offers, distributes, brings, and imports medical drugs of aworld level (ethical drug, general drug and OTC (Over The Counter) drug), medical device
and equipment, and a consumer health care related product in the healthcare field which isstill insufficient and will be expected remarkable expanded market from now on, in Sri Lanka.
Moreover, N & M Limited consolidate an organization which can improve a basic researchand carry out research and development for producing medical drugs, through cooperation
or licensing of technology by MEBIO, and hospital (Nawaloka Hospitals PLC, Colombo
Stock Exchange Code: NHL B0000. Hereinafter “Nawaloka Hospital”) as a core which
NAWALOKA holds and is a maximum private hospital which has listed.

N & M Limited will do the following three businesses mainly.
(1) N & M Limited do first-time SMO (Site Management Organization services: Note*)
business in Sri Lanka, and it improves a clinical study system and build a system toconduct clinical studies of the drugs under the global standard in Sri Lanka.
(2) N & M Limited do import business of drugs, quasi drugs, medical device andequipment, and consumer healthcare products etc. that are approved in the world but
not approved or not used commonly in Sri Lanka cooperating with group corporationsof NAWALOKA which have experiences and licenses of import-export business andhave a distribution network.
(3) N & M Limited build an organization which is able to carry out drug development
business that contributes to a development of lifescience as a nation by beingtransferred MEBIO’s platform technology and know-how and by conducting basic
research of development for pharmaceuticals in Sri Lanka.
The sales in this business enterprise aim at 170 million yen of the first fiscal year (realoperating first year, 2013/3) and aim at 2,500 million yen of the fifth fiscal year (2018/3).

Name of the Entity

N & M VENTURE PRIVATE LIMITED(registration number is PV 84287)

Place of Registration

Colombo, Sri Lanka

Representative

Chairman: Mr. Tadashi Fujisawa (from MEBIO)Managing

Director:Mr.

HarshithDharmadasa(fromNAWALOKA)
Business1) SMO business2) Import-export business of not approved or not usedcommonly products
3) Research and development, and new drug development
business

Paid-in Capital

LKR 20,000,000

Date of Establishment

February 17, 2012

Fiscal Year End

March 31

Investment Ratio

NAWALOKA: 50%, MEBIO: 50%

Note: SMO performs services in a portion of medical institutions. SMO works for medical
institutions to support clinical trials, whereas CRO (Clinical Research Organization) works
for pharmaceutical companies, sponsors of the clinical trials.

2. About NAWALOKA
After 30 years of civil war in 2009, Sri Lanka has achieved GDP real growth rate 8% in
2010. In addition, its stock exchange market has grown with the largest growth rate 73.99%.
Sri Lanka has continued to grow strongly even comparing with other emerging countries inrecent years. Sales of pharmaceuticals in Sri Lanka are expected to increase from LKR
38.97 bn in 2009 to LKR 43.54 bn in 2010.
NAWALOKA is a conglomerate in Sri Lanka and has 15 companies such as construction,industries, trading and healthcare. Nawaloka Hospital is one of the NAWALOKA and thebiggest private hospital group with 400 beds in Sri Lanka. Nawaloka Hospital was awarded
ISO9001-2008 in 2011 and successfully conducted a liver-doner liver transplant and lungtransplant, first in Sri Lanka; the proof of high medical skills. Moreover, Nawaloka Hospital islisted on the main board of Colombo Stock Exchange with the market capitalization of LKR
5.6 bn.
3. Outline of N & M Limited
N & M Limited may become a consolidated subsidiary of MEBIO, but it is expected thatthe influence to consolidated performance of MEBIO in this fiscal year (2012/3) is slight.