December 26, 2005

House Foods Corporation
Takeda Pharmaceutical Company Limited

House Foods and Takeda To Form Business Alliance

Transfer of the Business of Takeda's Wholly Owned Subsidiary, Takeda Food Products to A New Joint Venture with House Foods

House Foods Corporation ("House Foods") and Takeda Pharmaceutical Company Limited ("Takeda") announced today that both parties have reached a basic agreement to establish a new joint venture, to which all the business of Takeda Food Products, Ltd. ("Takeda Food") will be transferred. This agreement is subject to the approval by Japan Fair Trade Commission in view of the antimonopoly act.

House Foods and Takeda will own 66% and 34% of the shares of the new joint venture respectively, and it is scheduled to start its operation in April 2006. Eighteen months later, the 34% shares owned by Takeda will be transferred to House Foods and the joint venture will become a wholly owned subsidiary of House Foods.

House Foods has a main line of products of processed cooking preparations such as curry and stew mixes, retort foods and spices, while it is nurturing beverage and health food products as the future core business. This agreement will support House Foods strategies to expand such business by adding the Takeda Food' products such as "C1000 Vitamin Lemon" drink and "C1000 Lemon Water" and others. In addition, the synergy effect is expected from the fusion of Takeda Food' development ability centered on vitamin products and House Foods' food-processing technology.

"We will position the new joint venture as one of core businesses assuming a pivotal role in our portfolio strategy," said Mr. Akira Oze, President of House Foods. " We aim to maximize the synergy effect of our own technology and Takeda Food', which I believe will contribute to the further improvement of our corporate value."

"Takeda Food has been steadily expanding its business with mainstay products such as "C1000" brand beverages." said Mr. Yasuchika Hasegawa, President & COO of Takeda. "I believe that House Foods will be the best partner for Takeda Food for future growth as it can fully support and fit the strategy of House Food."

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Profile of a new joint venture

1. Company Name	:	to be decided
2. Scheduled start of business	:	April 3, 2006
3. Location of Head Office	:	to be decided
4. Joint-venture Period	:	18 months from the start of business
5. Capital	:	to be decided
6. Number of employees	:	Approx. 300

Profile of Takeda Food

1. Sales	:	37.5 billion yen (fiscal year ending Mar. 2005)
2. Number of employees	:	298 (As of end Mar. 2005)
3. Capital	:	2.0 billion yen

About House Foods

1. Consolidated Sales	:	184.9 billion yen (fiscal year ending Mar. 2005)
2. Location of Head Office	:	Higashi Osaka, Japan
3. Number of employees	:	3,731 (As of end Mar. 2005)
4. Capital	:	9.9 billion yen

About Takeda

1. Consolidated Sales	:	1,122.9 billion yen (fiscal year ending Mar. 2005)
2. Location of Head Office	:	Osaka, Japan
3. Number of employees	:	14,510 (As of end Mar. 2005)
4. Capital	:	63.5 billion yen