NEWS RELEASEMedia/Investor Contacts:
KYORIN Holdings, Inc.
Shuji Miyaki(03) 3293-3414

MSD K.K.
Naomi Kobayashi(03) 6272-1001

Announcement Regarding Transfer/Acquisition of MSD Shiga Plant
TOKYO, May 28, 2012 – KYORIN Holdings, Inc. (Head Office: Chiyoda-ku, Tokyo, Representative
Director and President: Masahiro Yamashita, TSE Code No. 4569, “Kyorin”) and MSD K.K. (Head office:Chiyoda-ku, Tokyo; Representative Director and President: Tony Alvarez, “MSD”) announced today thatthe companies have reached an agreement regarding transfer and acquisition of MSD's assets at its
Shiga Plant (Koka, Shiga Prefecture) and contract manufacturing.

Under the agreement, ownership of MSD’s Shiga Plant is scheduled to be transferred to KYORIN
Pharmaceutical Facilities Co.,Ltd. to be established on June 15, 2012, a wholly owned subsidiary ofKyorin, effective October 1, 2012, and Kyorin will engage in contract manufacturing of MSD products
currently produced at the plant. In addition, most employees at the plant are expected to transfer toKYORIN Pharmaceutical Facilities Co.,Ltd..

Kyorin and MSD and Merck & Co., Inc., Whitehouse Station, N.J., U.S.A, a parent company of MSD
have been developing a relationship of mutual trust through long years of various businesscollaborations. The agreement covering product manufacturing and supply is expected to reinforce
strategic partnership.

Notes
1.

Reasons for signing the agreement[Kyorin]
Kyorin has been promoting total optimization of a new manufacturing system, low-cost operation, global
deployment, development of human resources and other initiatives across the group based on the policyof “Establishing a manufacturing system for stable and low-cost supply of high-quality products.” This is
one of the key items included in Kyorin Group's long-term vision “HOPE 100 (Aim for Health of Peopleand our Enterprises) for FY2010-2023 and “Hope 100-Stage 1-" for FY 2010-2015 which started inFY2010. As part of these efforts, the company had been considering constructing its manufacturingsystem, including possible opening of a new plant, as well as ensuring output and reducing costs
through contract manufacturing and joint production. Kyorin decided to sign the contract expecting thatthe acquisition of MSD’s assets at its Shiga Plant and the employment of its highly skilled employees atthe plant are in line with the corporate objectives stated in Kyorin's mid-term business plan.

[MSD]MSD has been rebuilding the optimal supply chain within its global manufacturing system and it wasdetermined that this agreement would contribute to optimizing manufacturing system in Japan whilestrengthening capabilities to ensure stable product supply. Established in 1977 by former
Schering-Plough K.K., Shiga Plant is one of the two major manufacturing bases of MSD in Japan alongwith Menuma Plant (Kumagaya, Saitama Prefecture). Since the integration of Schering-Plough K.K. andformer Banyu Pharmaceutical Co., Ltd. in October 2010, Shiga Plan has been manufacturing about 22
major products, including ZETIA® (for the treatment of hyperlipidemia), PEGINTRON® (for the treatmentof hepatitis C), and NASONEX® (for the treatment of allergic rhinitis).

2.

Summary of transfer/acquisition(1) Assets to be transferred/acquired
Land, buildings, machines (with certain exceptions) and equipment at MSD K.K. Shiga Plant.

(2) Overview of Shiga Plant
・

Established: 1977

・Address: 1-4 Sasagaoka, Mizukuchi-cho, Koka, Shiga Prefecture・

Number of employees: Approximately 160 (As of April 1, 2012)

・Land: 61,272 m2

・Buildings: Office, laboratory, warehouse, plant, motor room, guardhouse, pump room, bicycle
parking space・Floor space: 17,293 m2

・Main products manufactured: PEGINTRON®, REBETOL®, ZETIA®, NASONEX®, CLARITIN®,
BRIDION®, TEMODAR®

3.

Transfer/acquisition schedule
・ May 28, 2012

Board of Directors meeting at KYORIN Holdings, Inc.

・ May 28, 2012

Signing of the contract.

・ October 1, 2012

Execution of the contract (agreement) covering transfer/acquisition ofShiga Plant

4.

Financial impact
・ Financial impact on Kyorin
Expected financial impact is minimal on the consolidated financial results for period ending March
2013.

(Information: Outline of the Companies)
KYORIN Holdings, Inc.
・ Head Office:

2-5 Kanda Surugadai, Chiyoda-ku, Tokyo・ Representative:
・ Scope of business:

Masahiro Yamashita, Representative Director and President
A holding company that is to be in charge of all functions of all Kyorin
Group companies centered on the affiliated companies that carry on
pharmaceutical business.

・ Capital:

700 million yen・ Closing Date:

March 31.

・ Number of employees:

80 (As of March 31, 2012)

About Kyorin GroupKyorin Group carries on founding spirit under the corporate philosophy of cherishing life and benefiting
society by contributing to better health. In addition to contributing to the treatment of disease byproviding superior drugs and by building a portfolio of business that can respond to diversifying healthneeds,from health maintenance and advancement to disease prevention, we are working to enhance ouridentity as a Group and our corporate value.

MSD K.K.
・ Head Office:Kitanomaru Square, 1-13-12, Kudan-kita, Chiyoda-ku, Tokyo・ Representative:

Tony Alvarez, Representative Director and President

・ Scope of business:

Development, import, manufacturing, and distribution of ethical drugs andmedical equipment

・ Capital:

26,349 million yen

・ Closing date:

December 31

・ Number of employees:

Approximately 4,400 (As of April 1, 2012)

About MSD
Today's MSD is a global healthcare leader working to help the world be well. Through our prescription
medicines, vaccines, biologic therapies, and consumer care and animal health products, we work withcustomers and operate in more than 140 countries to deliver innovative health solutions. We also
demonstrate our commitment to increasing access to healthcare through far-reaching policies, programs
and partnerships. For more information, visit www.msd.co.jp