Announcement of Takara Bio's mid-term management plan

May 13, 2008 --- Takara Bio Inc. (President and CEO: Ikunoshin Kato, Ph.D.) announced the midterm management plan from April 2008 to March 2011.

Using our core biotechnology, we have been focusing on 3 business segments: Genetic Engineering Research, which is the stable cash generating business, AgriBio, which aims for a secondary profitable business segment, and Gene Medicine, which is for future growth.

In this midterm management plan, we aim for business expansion and stabilization in Genetic Engeneering Research segment by synergistic effects with Clontech Laboratories, Inc. , a wholly owned subsidiary of Takara Bio, in research development, manufacturing, marketing and all the other fields. We also strive to increase earnings in AgriBio segment through sales alliances and to pursue research & development proactively in the Gene Medicine segment.

1. Profit forecasts

Consolidated Financial Forecast

(Millions of Yen)

	FY2008	FY2009	FY2010
Net sales	20,300	21,330	22,490
Operating Income	100	670	950
Ordinary Income	350	920	1,200
Net Income	250	370	540
R&D expenses	3,906	4,500	5,000

Forecast of Consolidated Net Sales by Business Segment

(Millions of Yen)

	FY2008	FY2009	FY2010
Research Reagents Scientific Instruments Contract Research Services, others	12,963 2,538 2,594	13,690 2,540 2,730	14,550 2,540 2,870
Genetic Engineering Research	18,096	18,960	19,960
Gene Medicine	130	130	130
AgriBio	2,073	2,240	2,400
Net sales Total	20,300	21,330	22,490

2. Strategy by each segment

While achieving constant revenue, we conduct business in Genetic Engineering Research, AgriBio and Gene Medicine as follows in order to continuously improve the business foundation for future growth. As for the financial target, we expect to achieve 22,490 million yen in consolidated revenue for fiscal 2010, and aim for 1,200 million yen as ordinary income.

(1) Genetic Engineering Research
This segment provides sales of research reagents, scientific instruments, and contracts research services for biomedical researchers from academic institutes and commercial entities. It is positioned as our cash generating core segment. In order to further strengthen our business in this segment, we will proceed as follows;

• Increase efficiency and take advantage of synergistic effects of Takara Bio's and Clontech's abilities in R&D
• Boost the price competitiveness of Clontech products through shifting its manufacturing facility from Clontech in the U.S. to Takara Biotechnology (Dalian) in China, and reconstruct worldwide logistic system and sales network of Clontech products
• Development of new real-time PCR products and expanding their sales

(2) Gene Medicine
Aiming for the commercialization of cell and gene therapies, and promoting clinical development, we will further develop our business as follows;

(Gene Therapy)

• Clinical development of ex vivo gene therapy for leukemia with National Cancer Center in Japan
• Clinical development of TCR gene therapy for esophageal cancer with Mie University School of Medicine
• Development of AIDs gene therapies using endoribonuclease (MazF)
• License out RetroNectin^® method worldwide

(Cell Therapy)

• Clinical development of cancer immunotherapy using RetroNectin^® expansion culture system for renal cancer with the Cancer Institute and Hospital, Chinese Academy of Medical Science
• Clinical development of cancer immunotherapy using RetroNectin^® expansion culture system with Tianjin Cancer Institute & Hospital, Tianjin Medical University
• Clinical development of cancer immunity reconstitution therapy for refractory cancers using RetroNectin^® expansion culture system with Mie University School Medicine
• Clinical development of cancer immunotherapy using RetroNectin^® expansion culture system with Green Cross Corp

(3) AgriBio
We pursue business expansion with health foods focusing on development of functional food materials and mushrooms.

• Sales expansion of health foods utilizing functional ingredients such as Kombu "fucoidan", Agar "agaoligo", Ashitaba "chalcone" and mushroom "terpene" through cooperation with Takara Healthcare which is a Takara Holdings' wholly owned subsidiary
• Development of new health foods applying ingredients derived from Yams which have anti-fatigue effects, and ingredients derived from a Japanese native herb Peucedanum Japonicum (Botan-boufu) which have preventive effects on arteriosclerosis
• Establishing cultivation method of high value-added mushrooms by applying genome analysis data of Matsutake mushroom
• Expansion of mushroom business, i.e. Bunashimeji, Hatakeshimeji and Honshimeji mushrooms

[ About Takara Bio Inc. ]

Takara Bio Inc. is an innovative biotechnology company based in Shiga, Japan. As a world leader in biotechnology research and development, Takara Bio was the first company to market PCR technology in Japan and is also the developer of the RetroNectin^® reagent, which is a world-standard in gene therapy protocols. In addition to providing research reagents and equipment to the life science research market, Takara Bio has active research and product development activities in the fields of gene and cell-based therapy, and agricultural biotechnology; and is committed preventing disease and improving the quality of life for all people through the use of biotechnology. Through strategic alliances with other industry leaders, the Company aims to extend its reach around the world. More information is available at http://www.takara-bio.com.

This article is translated from press release in Japanese for your convenience.

Forward-Looking Statements

Statements in this news release, other than those based on historical fact, concerning the current plans, prospects, strategies and expectations of the Company and its Group represent forecasts of future results. While such statements are based on the conclusions of management according to information available at the time of writing, they reflect many assumptions and opinions derived from information that includes major risks and uncertainties. Actual results may vary significantly from these forecasts due to various factors. Factors that could influence actual results include, but are not limited to, economic conditions, especially trends in consumer spending, as well as exchange rate fluctuations, changes in laws and government systems, pressure from competitors' prices and product strategies, decline in selling power of the Company's existing and new products, disruptions to production, violations of our intellectual property rights, rapid advances in technology and unfavorable verdicts in major litigation.