Announcement of Takara Bio's mid-term management plan

May 12, 2009 --- Takara Bio Inc. (President & CEO: Koichi Nakao) announced the midterm management plan from April 2009 to March 2012.
Our corporate philosophy is to contribute to the health of mankind through the development of revolutionary biotechnologies such as gene therapy. Utilizing our core biotechnologies, Takara Bio Group has been focusing on three business segments : Genetic engineering research, which forms the basis of our stable earnings; AgriBio, which we are positioning to become our secondary profitable business; and Gene medicine, which is our platform for growth.

In this midterm management plan, we aim for business expansion and stabilization in the Genetic engineering research segment by synergic effects with Clontech Laboratories, Inc. in research development and by strengthening new product development capability. We also strive to increase earnings in the AgriBio segment through expanding sales of health foods and increasing productivity of mushrooms, and will accelerate clinical development in the Gene medicine segment.

1. Profit forecasts

Consolidated Financial Forecast(Millions of Yen)

	FY2009	FY2010	FY2011
Net sales	18,370	19,096	20,000
Operating Income	465	636	869
Ordinary Income	600	806	1,039
Net Income	360	457	573
R&D expenses	3,441	3,674	4,106

Forecast of Consolidated Net Sales by Business Segment(Millions of Yen)

	FY2009	FY2010	FY2011
Research Reagents Scientific Instruments Contract Research Services, others	11,085 2,168 2,487	11,639 2,168 2,611	12,281 2,168 2,742
Genetic Engineering Research	15,741	16,420	17,192
Gene Medicine	299	217	217
AgriBio	2,328	2,458	2,590
Net sales Total	18,370	19,096	20,000

In fiscal 2011, we aim to achieve net sales of ¥20 billion and operating income of ¥800 million. We intend to maintain R&D expenses at the level of approximately ¥1 billion per year in the Genetic engineering research segment and around ¥700 million per year in the AgriBio segment. In the Gene medicine segment, we plan to increase R&D expenses each year in line with progress in clinical development projects.

2. Strategy by each segment

While posting continuous net profit, we will 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 aim to achieve ¥20 billion in consolidated revenue for fiscal 2011, and aim for ¥1 billion as ordinary income.

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

• Accelerate new product development by enhancing and taking advantage of synergistic effects of Takara Bio's and Clontech's abilities in R&D
• Boost the price competitiveness of our group's products by shifting its manufacturing facility from both the U.S. and Japan to China
• Improve the efficiency of distribution systems by reconstructing our worldwide logistic system
• Develop new products in real-time PCR and cell engineering fields including iPS cells, and expand their sales
• Expand the sales of contracts research services using next-generation sequencing systems, and develop related technologies

(2) Gene Medicine
Aim for commercialization of cell and gene therapies, and promotion of clinical development. We will further develop our business as follows;

(Gene Therapy)

• Clinical development of HSV-TK gene therapy with National Cancer Center in Japan (clinical trial & study)
• Clinical development of TCR gene therapy for esophageal cancer with Mie University School of Medicine (clinical study)
• Development of AIDs gene therapies using endoribonuclease (MazF)
• License out RetroNectin^® method worldwide

(Cell Therapy)

• Clinical development of cancer immunity reconstitution therapy for refractory cancers using the RetroNectin^® expansion culture system with Mie University School of Medicine (clinical study)
• Clinical development of cancer immunotherapy with Kyoto Prefectural University (clinical study)
• Clinical development of cancer immunotherapy using the RetroNectin^® expansion culture system in China

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

• Sales expansion of health food materials utilizing functional ingredients such as Kombu "fucoidan", Agar "agaro-oligosaccharide", Ashitaba "chalcone", Yam (Dioscorea esculenta) and mushroom "terpene"
• Improve production technology and expand our sales of mushrooms, i.e. Hatakeshimeji and Honshimeji mushrooms
• Develop new production technology for the growth of high value-added mushrooms by utilizing genome analysis data of Matsutake mushroom

[ 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.