kuraray


News Releases 2005

Transfer of the Contact Lens Business

July 14, 2005
Kuraray Medical, Inc.
(The Kuraray Group)

Kuraray Medical, Inc. (Headquarters: Chiyoda-ku, Tokyo; President: Hideo Horii; hereafter "Kuraray Medical") and EIKO Corporation (Headquarters: Nagoya City, Aichi Prefecture; President: Takeshige Kasumi; hereafter "EIKO") agreed on July 12, 2005 to transfer the contact lens business of Kuraray Medical to a new company, which the aforesaid companies plan to establish with capital participation from Kuraray Medical employees and EIKO.

While inheriting Kuraray Medical's advanced manufacturing technologies, brand name, and sales network, the new company will maximize the synergistic effects to be gained from the tie up with EIKO, which is currently developing its specialized contact lens business. Through these synergistic effects, the new company will conduct efficient and flexible operations.

Outline of New Company

1. Company Name Facile Co., Ltd.
2. Representative Koji Matsui
3. Headquarters 2-2 Kandatsukasa-cho, Chiyoda-ku, Tokyo
4. Established July 2005
5. Commencing of Operations October 2005
6. Capital ¥30 million (Ownership: A group primarily composed of Kuraray Medical employees: 51%, EIKO: 49%)
7. Content of Business Development, manufacture and sales of contact lenses and related products.
8. Net Sales ¥1.7 billion (Plan for fiscal 2006)

Kuraray Medical, Inc.

President Hideo Horii
Headquarters 1-1-3 Otemachi, Chiyoda-ku, Tokyo
Capitalization ¥2.5 billion (As of March 31, 2005; Ownership: Kuraray Co., Ltd. 100%)
Business Content Development, manufacture and sales of medical-related products
Net Sales ¥12.1 billion (Fiscal year ended March 31, 2005)

EIKO Corporation

President Takeshige Kasumi
Headquarters 2-11-33 Noritake-shinmachi, Nishi-ku, Nagoya City, Aichi
Capitalization ¥80 million (As of March 31, 2005)
Business Content Development, manufacture, import and sales of contact lenses and related products.
Net Sales ¥1.2 billion (Fiscal year ended March 31, 2004)