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News Release : Mitsubishi Pharma Corporation 2003

April 10, 2003
Mitsubishi Pharma Corporation

Mitsubishi Pharma to Withdraw from US Plasma Fractionation Business as US Subsidiary Transfers Operations

Mitsubishi Pharma Corporation (Mitsubishi Pharma) is to withdraw from the US plasma fractionation business following the agreement by its US subsidiary, Alpha Therapeutic Corporation (Alpha, based in Los Angeles, President Claude Miller), to transfer its plasma fractionation operations to Probitas Pharma S.A. (Probitas, based in Barcelona, Spain, President Victor Grifols).

As announced on December 20, 2002, Alpha has already agreed to transfer its 42 US plasma collection centers, its central testing laboratory, and related assets to Baxter Healthcare Corporation (Baxter) along with all rights to its Alpha 1-Protease Inhibitor (A1-PI) for the treatment of hereditary emphysema, which received FDA approval on December 23, 2002.

Mitsubishi Pharma and Alpha undertook exhaustive exploration of options for their US plasma fractionation operations after the partial transfer of assets to Baxter. As a result, Mitsubishi Pharma has agreed to a contract involving the subsequent transfer of Alpha's remaining plasma fractionation business to Probitas and has decided to simultaneously withdraw from the US plasma fractionation business. Probitas is a Grifols Group holding company.

Mitsubishi Pharma plans to reflect this decision in the consolidated results for the fiscal year ended March 31, 2003, by recording as an extraordinary loss the 16.8 billion yen provision made for losses associated with the disposition of the US plasma fractionation business. In the non-consolidated accounts, it plans to record as extraordinary losses both the 17.9 billion yen valuation loss on shares in the subsidiary (of which 11.7 billion yen has already been recorded in the interim accounts) and an 11.2 billion yen allowance for doubtful receivables.

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