June 28, 2006

Takeda Pharmaceutical Company Limited

Correction against Takeda Based on Transfer Pricing Taxation

Osaka, Japan, June 28, 2006 --- Takeda Pharmaceutical Company Limited ("Takeda") today received a notice of correction based on transfer pricing taxation from the Osaka Regional Taxation Bureau ("ORTB") founded on the ORTB's conclusion that the profits earned in the US market in relation to product supply and license trans-actions between Takeda and TAP Pharmaceutical Products Inc., a fifty-fifty joint venture between Abbott Laboratories and Takeda America Holdings, Inc., a wholly owned subsidiary of Takeda in the US, over the six-year period from fiscal year ending March 2000 through fiscal year ending March 2005 were under-allocated to Takeda.

In the notice of correction, the assessed income is ¥122.3 billion for the six-year period, and the total additional tax is approximately ¥57 billion, including local taxes and others.

Takeda disagrees to this correction because:

• - There is absolutely no purpose or motive for Takeda to transfer income to TAP.
• - The transaction prices in question are not to be set without the consent from a U.S. third party as the joint venture partner and are essentially the Arm's Length Prices, and accordingly no transfer pricing taxation should be applicable to the transactions in question.
• - The original allocation of profits between Takeda and TAP is fair, and the profit allocation amounts so corrected by the ORTB are not fair or reasonable.

Takeda will seek through legal procedures to have this correction revoked.

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