July 7, 2004

Takeda Pharmaceutical Company Limited

The Revision of Remuneration Rule for Employees' Inventions

Osaka, Japan, July 7 2004 - Takeda Pharmaceutical Company Limited ("Takeda") announced today that Takeda has reached an agreement with Takeda Worker's Union regarding the introduction of revised scheme for remuneration for employees' inventions that has contributed to the company's revenue.

This new scheme is to respond in a timely fashion to implementation of the revision of the Patent Law effective January 1, 2005, specifically to Article 35 governing remuneration for transferring the right to obtain@patent between an employee and an employer.

The original scheme was introduced in 1998 with a maximum of Yen 10 million for a period of upto five years. This amount was revised to Yen 30 million in 2002. The remuneration is calculated based on the worldwide sales of a product to be covered the relevant inventions.

Under the agreed new scheme, the ceiling for remuneration is removed and the scope of remuneration is extended, retroactively by 10 years from now, for the invention covering products on sales as of 1994.

In fiscal 2003, Takeda paid compensation of Yen 93.85 million to total number of 72 employees for the inventions such as, candesartan cilexetil (a hypertension treatment sold as Blopress), Shin Alinamin A (vitamin B1 derivative and vitamin B6, B12), pioglitazone hydrochloride (a type 2 diabetes treatment sold as Actos) and sulfosulfuron (herbicide), and for the invention contributed to company's revenue by licensing out.

Takeda is an R&D oriented global company with its main focus on pharmaceuticals. As the largest pharmaceutical company in Japan and one of the leaders in the world, Takeda is committed to strive toward better health for individuals and progress in medicine by developing superior harmaceutical products.

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