June 17, 2011
Press Release
Mitsubishi Tanabe Pharma Corporation
Japanese Red Cross Society

Notice of a basic agreement between the Japanese Red Cross Society andMitsubishi Tanabe Pharma Corporation regarding the commencement ofdiscussions about the integration of their plasma fractionation operations
Mitsubishi Tanabe Pharma Corporation (Head Office: Chuo-ku, Osaka; President andCEO: Michihiro Tsuchiya) and the Japanese Red Cross Society (National Headquarters:Minato-ku, Tokyo; President: Tadateru Konoe), announced today that they have reached anagreement, with the approval of the Board of Directors of Mitsubishi Tanabe Pharma
Corporation and the Board of Governors of the Japanese Red Cross Society, to commence
discussions about an integration of their respective plasma fractionation operations. Thisintegration would entail the combination of Benesis Corporation, a wholly owned
subsidiary of Mitsubishi Tanabe Pharma Corporation that is engaged in the production andsale of plasma fractionation products, and the plasma fractionation operations of theJapanese Red Cross Society, with a target date of April 1, 2012.
1. Intent and Purpose of Operational Integration
In Japan, with the objective of contributing to the health and welfare of the people of Japanby improving the safety of blood products and securing a stable supply of these products,
the Act on Securing a Stable Supply of Safe Blood Products was put into effect in July
2003. This act is based on the viewpoints of ethics and international fairness, and one of its
basic principles is to secure national self-sufficiency and a stable supply of blood products.
Furthermore, the achievement of national self-sufficiency has become an international issue,
including calls for international, efficient, sustainable blood operations with the objective ofachieving national self-sufficiency for member countries of the World Health Organization.
In addition, the achievement of national self-sufficiency is also indispensable from the-1-

viewpoint of securing safety by protecting the health of the people in the event that there isa worldwide shortage of blood products.
However, Japan has not yet achieved national self-sufficiency in plasma fractionation
products. In particular, the national self-sufficiency level for albumin products was only
58.7% in 2010, and there are some products that are not manufactured in Japan at all. The
major reason for this situation is that the operational scale of domestic manufacturers issmall in comparison with the operation scale of competing overseas companies that
conduct business around the world, and there are limits to what can be achieved byincreasing efficiency, including the area of production costs.
In this setting, Mitsubishi Tanabe Pharma Corporation and the Japanese Red Cross Society,to meet the mandate of the people to provide sustained, stable plasma fractionation
operations in Japan, agreed that the integration of their respective plasma fractionation
operations should be considered as an important option, and they considered the potentialof such an initiative. In addition, the Committee on Blood Products, Pharmaceutical Affairs
Department, Pharmaceutical Affairs and Food Sanitation Council, Ministry of Health,Labour and Welfare deliberated and approved (March 8, 2011) an interim report from astudy committee regarding the supply of plasma derivative preparations. At that point, thedeliberations of the two corporations were moving in the same direction, and therefore theydecided to begin concrete discussions regarding the establishment of a new corporation.
The establishment of this new corporation will be intended to help Japan to achieve
national self-sufficiency in blood products through the use of economies of scale to reduce
costs at the production and supply stages and through efficient management.
2. Framework Following the Operational Integration
The new corporation will be formed through the integration of the plasma fractionation
operations of Mitsubishi Tanabe Pharma Corporation and the Japanese Red Cross Society.
It will be a non-profit organization that works to enhance the public welfare through theachievement of national self-sufficiency in blood products made from blood obtained
through voluntary non-remunerated blood donation. Moreover, the new company will also-2-be expected to build a large-scale alcohol fractionation plant with the capacity to process allof the raw materials needed nationwide for plasma fractionation products and to play acentral role in the domestic production of plasma fractionation products through anefficient production system.
3. Outline of Basic Agreement(1) Conclusion of basic agreement
Today, the two corporations concluded a basic agreement regarding the fundamental issues
involving the integration of the plasma fractionation operations.
(2) Basic matters agreed upon regarding the operational integration
1. Framework of integration
The objective will be an operational integration of the plasma derivative operations ofthe two corporations, with the new corporation acquiring the operations through donationor through business transfer.
2. Name of new corporation
To be determined.
3. Date of establishment
April 1, 2012 (planned)
4. Operational activities
Manufacturing, sales, and distribution of plasma fractionation products and relatedproducts.
5. Location
Head office: Tokyo Prefecture (planned)
6. Representative
To be determined.
7. Scale of operations resulting from the integration
Total of the plasma fractionation products of the two corporations: ¥37.0 billion (Basedon NHI drug prices in fiscal year ended March 2010)-3-4. System for Advancement of the Integration
Today, both organizations formed integration promotion committees, which will work toachieve a smooth, rapid integration.
5. Other
Important matters that have not yet been determined will be disclosed when they aredetermined.

For further information:
Mitsubishi Tanabe Pharma Corporation
Corporate Communications Department
TEL: 06-6205-5211

Japanese Red Cross Society
Blood Service Headquarters, Public Relations
TEL: 03-3437-7507-4-