Lonza Group and Kyowa Hakko Kogyo announce today an agreement, whereby Lonza will license to Kyowa Hakko and its US subsidiary BioWa Inc. (Kyowa Hakko Group) its GS (glutamine synthetase) Gene Expression System(TM)

Basel, CH & Tokyo, Japan | July 15, 2008 | Lonza Group Ltd and Kyowa Hakko Kogyo Co., Ltd. announce today an agreement, whereby Lonza will license to Kyowa Hakko and its US subsidiary BioWa Inc. (Kyowa Hakko Group) its GS (glutamine synthetase) Gene Expression System(TM). Prior to this agreement BioWa and Lonza entered into a strategic research collaboration agreement combining Kyowa Hakko’s POTELLIGENT(R) technology with Lonza’s GS Gene Expression System(TM). This worldwide, non-exclusive umbrella research and license agreement enables Kyowa Hakko Group to use Lonza’s proprietary GS-System(TM) and the POTELLIGENT(R) technology as a platform for the production of antibodies and recombinant proteins being developed by Kyowa Hakko Group.

"Lonza is pleased to broaden its collaboration with Kyowa Hakko Group. As a leader in their field, we believe that having Kyowa Hakko Group select the GS Gene Expression System(TM) underscores the success and importance of this technology for the efficient production of therapeutic antibodies and recombinant proteins", commented Dr. Stephan Kutzer, Head of Lonza Biopharmaceuticals.

"We are excited about the combination of our POTELLIGENT(R) technology with Lonza’s GS Gene Expression System(TM) which has potential to strengthen Kyowa Hakko Group’s production system for biological drugs", added Dr. Nobuo Hanai, Managing Officer, Head of Pharmaceutical R&D Division of Kyowa Hakko.

About GS Gene Expression System(TM)

The GS Gene Expression System(TM), which is owned and licensed by Lonza, is used for the production of therapeutic recombinant proteins and monoclonal antibodies. Nearly 100 biotechnology and pharmaceutical companies and over 75 academic laboratories worldwide are successfully using the GS Gene Expression System(TM) which has established itself as the industry standard. This system is characterized by its speed and ease of use. In addition, the higher yielding cell lines provide cost-efficient production of therapeutic proteins.

About Lonza

Lonza is one of the world’s leading suppliers to the pharmaceutical, healthcare and life science industries. Its products and services span its customers’ needs from research to final product manufacture. Lonza is the global leader in the production and support of active pharmaceutical ingredients both chemically as well as biotechnologically. Biopharmaceuticals are one of the key growth drivers of the pharmaceutical and biotechnology industries. Lonza has strong capabilities in large and small molecules, peptides, amino acids and niche bioproducts which play an important role in the development of novel medicines and healthcare products. Lonza is a leader in cell-based research, endotoxin detection and cell therapy manufacturing. Lonza is also a leading provider of value chemical and biotech ingredients to the nutrition, hygiene, preservation, agro and personal care markets. Lonza is headquartered in Basel, Switzerland and is listed on the SWX Swiss Exchange. In 2007, Lonza had sales of CHF 2.87 billion. Further information can be found at www.lonza.com.

About Kyowa Hakko

Kyowa Hakko Kogyo Co., Ltd. is one of Japan’s leading pharmaceutical and biotech companies and is a global leader in antibody technology. Kyowa Hakko is the inventor of POTELLIGENT(R) technology, which creates high ADCC monoclonal antibodies. Currently, Kyowa Hakko is developing ADCC enhanced monoclonal antibody-based therapeutics to fight cancer and other life-threatening diseases. Kyowa Hakko and its wholly owned US subsidiary BioWa Inc. have POTELLIGENT(R) antibody products in various clinical stages. Kyowa Hakko creates and develops enhanced ADCC antibodies for itself and others, offering a full range of antibody discovery and development capabilities. For more information about Kyowa Hakko, visit its web site at http://www.kyowa.co.jp/eng/index.htm. POTELLIGENT(R) is the registered trademark of Kyowa Hakko Kogyo Co., Ltd. All rights are reserved.

SOURCE: Kyowa Hakko Kogyo Co., Ltd.