May 29, 2009

Seikagaku Corporation(Securities code: 4548)

Conclusion of an Exclusive Distributorship Agreement for Gel-200 withZimmer, Inc. of the U.S.
On May 29, 2009 Seikagaku Corporation (“Seikagaku”) (head office: Chiyoda-ku,Tokyo) entered into an agreement with Zimmer, Inc. (head office: Warsaw, Indiana)
concerning a sole distributorship in the United States for Gel-200, a medical device
indicated for osteoarthritis of the knee.

Gel-200 is an intra-articular injection that is expected to provide long-term pain relief
with a single injection. The main ingredient of Gel-200 is cross-linked hyaluronatehydrogel manufactured using Seikagaku’s own cross-linking technology. On July 30,
2008 (U.S. local time) Seikagaku submitted to the FDA a premarket approval (PMA)
application (an application for approval to market a medical device), which is currently
undergoing review.

Osteoarthritis of the knee is a condition characterized by the degeneration anddisappearance of articular cartilage and consequent swelling and pain. It is primarily
caused by aging. As the U.S. population is aging, the number of patients suffering fromosteoarthritis of the knee is increasing. In these circumstances, diverse patient wishes
and physician treatment policies have highlighted the need for a joint injection that
demonstrates efficacy with a low number of injections. Since 2001, Seikagaku has sold
SUPARTZ® in the U.S. market, a formulation administered in multiple injections for asingle treatment. The forthcoming market introduction of a single-injection product,Gel-200, will enhance the product line in the field of joint disorder treatment. Seikagaku
plans to solidify its presence in the U.S. market by expanding sales of both products inthe multiple-injection and single-injection markets to satisfy the needs of physicians andpatients.

Zimmer, Inc. is a global leader in the field of orthopedic surgical products. The company
engages in the development, manufacture and sale of medical devices and is themarket share leader in the U.S. in replacement knee joints. As replacement knee joints
and hyaluronic acid injections are used in the same therapy field, it is expected thatGel-200 can be successfully sold through the sales channels that Zimmer alreadypossesses. Also, in its role as the manufacturer of Gel-200, Seikagaku will support
Zimmer’s sales activities through the provision of academic information and othermeans.

Reference Information(1) About Gel-200
As Gel-200 remains in the knee-joint cavity for long periods of time owing to theextremely high viscoelasticity of cross-linked hyaluronate hydrogel, a single injection
is expected to provide long-term pain relief. In Phase III clinical trials conducted in
the U.S. with a patient group that conformed to the protocol, Gel-200 showed astatistically significant improvement compared to the placebo against pain
associated with osteoarthritis of the knee, the principal evaluation item. Also, there
was no difference in occurrence of side effects compared to the placebo group, andsafety equivalent to or exceeding that of existing hyaluronic acid injections isexpected.

(2) Overview of Zimmer, Inc.
1) Company name: Zimmer, Inc.
2) Headquarters: 345 East Main Street, Warsaw, Indiana, USA
3) Representative: Mr. David Dvorak, President and CEO
4) Established: 1927
5) Business description: Development, manufacturing and sale of medical devices;
operation of business sites in 25 countries and marketing of products in more than
100 countries worldwide6) Sales: Approx. US$4.1 billion (2008)
7) Number of employees: Approx. 8,500