Shionogi & Co., Ltd.

Completion of New Pharmaceutical Research Building

Osaka, Japan, August 4, 2011 - Shionogi & Co., Ltd. (Head Office: Osaka; President & CEO: Isao Teshirogi, Ph.D.; hereafter “Shionogi” or “the Company”) today announced that it has held an inauguration ceremony of the new pharmaceutical research building, which was constructed on the grounds of the Company’s existing laboratories located in Toyonaka City, Osaka, where this building will become the central core of Shionogi’s research operations.

With the completion of the new facility, Shionogi’s drug discovery research operations, which were previously distributed amongst four sites in Osaka and Shiga Prefectures, are now integrated into the Shionogi Pharmaceutical Research Center (referred to as “SPRC (spark)”), which is composed of the new building and the existing three buildings. Shionogi aims to achieve world-leading research productivity, aided by enhanced coordination among the integrated functions at SPRC.

The new building contains drug discovery research laboratories built to the highest standard, with cutting-edge laboratory equipment and information technology capabilities. At the same time, the facility is environmentally-sensitive and incorporates a specially-designed layout designed to stimulate creativity and support innovation by increasing communication and mutual collaboration among researchers.

“With the cutting-edge core facility, which will support maximal creativity and high productivity, we will concentrate all drug discovery research functions at SPRC. It will be the foundation for the growth and globalization of Shionogi for the next 10 to 20 years.” said Dr. Isao Teshirogi, President & CEO of Shionogi. “Shionogi is dedicated to creating innovative new medicines through the research conducted at SPRC with a mission – to provide better medicines from Osaka to the world.”

As a research-driven pharmaceutical company, Shionogi is dedicated to the continuous improvement of research productivity and to increasing the speed of drug development, focused on generating high-quality drug candidates with strong global potential in-house, in the target therapeutic areas of metabolic syndrome, infectious diseases and pain.

Overview of New Pharmaceutical Research Facility
Location: 1-1, Futaba-cho 3-chome, Toyonaka, Osaka, Japan
Site area: 34627.97 m2 (SPRC area)
Building area: 9,800m2
Total floor area: Approximately 43,000m2 (Reference: Existing three buildings, total floor area; approximately 23,400m2)
Construction: Steel-reinforced concrete construction, quake-absorbing structure Building: 5 stories above ground
Total construction cost: Approximately ¥18.9 billion
Start of construction: September 2008
Completion of construction: July 2011
Start of operations: Mid-August 2011 (scheduled)
Design and construction: Takenaka Corporation
Annotation:
The new pharmaceutical research facility was adopted a model project of housing and buildings for promoting CO2 reduction as an “Environmentally-conscious laboratory” by Ministry of Land, Infrastructure, Transport and Tourism in 2009.

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.
Telephone: +81-6-6209-7885
Fax: +81-6-6229-9596