Shionogi & Co., Ltd.

Shionogi reached an agreement to settle patent-infringement lawsuit
for Flomox® (Oral cephem antibiotic agent)

Osaka, Japan, October 20, 2010 – Shionogi & Co., Ltd. (Head Office: Osaka; President and Representative Director: Isao Teshirogi, Ph.D.; hereafter “Shionogi”) today announced that it reached an agreement with Sawai Pharmaceutical Co., Ltd. (Head office: Osaka) and ITOCHU CHEMICAL FRONTIER Corporation (Head Office: Minato-ku, Tokyo) to settle a pending patent-infringement lawsuit based on the crystal patent of
Flomox® (Oral cephem antibiotic agent) at the Intellectual Property High Court.

As a result of this settlement, the case will be terminated. Further terms of the settlement will not be disclosed
by mutual agreement. It is expected that this agreement will have a minor impact on the FY2010 earnings.

Shionogi sees intellectual property as very important resources and intends to take legal responses against infringements or the risk of infringements of our intellectual property in the future.

Forward-Looking Statements
This announcement contains forward-looking statements. These statements are based on expectations in light of the information currently available, assumptions that are subject to risks and uncertainties which could cause actual results to differ materially from these statements. Risks and uncertainties include general domestic and international economic conditions such as general industry and market conditions, and changes of interest rate and currency exchange rate. These risks and uncertainties particularly apply with respect to product-related forward-looking statements. Product risks and uncertainties include, but are not limited to, completion and discontinuation of clinical trials; obtaining regulatory approvals; claims and concerns about product safety and efficacy; technological advances; adverse outcome of important litigation; domestic and foreign healthcare reforms and changes of laws and regulations. Also for existing products, there are manufacturing and marketing risks, which include, but are not limited to, inability to build production capacity to meet demand, unavailability of raw materials and entry of competitive products. The company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

For further information, contact:
Corporate Communications Department
Shionogi & Co., Ltd.
Tel: +81-6-6209-7885
Fax: +81-6-6229-9596