News Releases

Business and Capital Alliance with the Siemens Group

(Tokyo, July 16, 2004) Mochida Pharmaceutical Co., Ltd. (TSE: 4534, 1st Section; President: Naoyuki Mochida) and Siemens AG (Siemens Medical Solutions Group; President: Prof. Dr. Erich R. Reinhardt) - the parent company of Siemens Group - has agreed upon a strategic business and capital alliance for the business development of ultrasonic diagnostic equipment in Japan.

  1. Details of the Alliance

    a) Business alliance

    Mochida Medical Systems Co., Ltd. (President: Hirokazu Komatsu), a 100% subsidiary of Mochida Pharmaceutical, will receive the ultrasonic diagnostic equipment business transferred from Siemens-Asahi Medical Technologies Ltd. (President: Akihiro Hiratsuka), a subsidiary of Siemens AG.

    b) Capital alliance

    To further strengthen the alliance, Siemens AG is scheduled to possess 35% of outstanding in Mochida Medical Systems stocks by August 31st, 2004. The investment ratio will not changed for at least three years, and Hirokazu Komatsu at Mochida Medical Systems will remain in office as president.

    When Siemens AG acquires 35% stocks, Mochida Medical Systems will change its name to Mochida Siemens Medical Systems and launch the sale of ultrasonic diagnostic equipment manufactured by Siemens AG formerly sold by Siemens-Asahi Medical Technologies, in addition to existing product lines.

  2. Future prospects

    This business and capital alliance is not expected to exert a major influence on this year's consolidated performance of the Mochida Pharmaceutical Group.