news release

TOAGOSEI

August 31, 2005

Otsuka Chemical to acquire Toagosei's Agrochemical Division

Otsuka Chemical Co., Ltd.
Toagosei Co., Ltd.

Otsuka Chemical Co., Ltd. (Head office: Osaka, President: Akihei Mori, hereunder "Otsuka Chemical") and Toagosei Co., Ltd. (Head office: Tokyo, President: Akihiko Yamadera hereunder "Toagosei") announced that both the companies have mutually agreed upon the transfer of Toagosei's agrochemical business to Otsuka Chemical.

1) Reason for transfer
The AgriTechno Division of Otsuka Chemical is engaged in a wide range of agribusiness-related activities, from manufacturing and marketing of agricultural chemicals to selling crop cultivation systems. Through the acquisition of Toagosei's agrochemical business, Otsuka Chemical assessed that the addition of environmentally friendly products would strengthen its portfolio and contribute to its expanding businesses.

Toagosei had been intending to concentrate management resources on its core business under the mid-term management plan ending 2007, and Toagosei decided that the transfer of its agrochemical business would lead to an overall increase in the company value.

The views of Otsuka Chemical and Toagosei have thus accorded, reaching an agreement for the transfer of the agrochemical business.

2) Object of transfer
Toagosei's agrochemical business ("Toarrow CT WP and Toarrow CT FW", "Kaligreen", "Acaritouch EC"), including intellectual property rights, trademarks, and agrochemical registration and position under agreement.

3) Date of transfer
September 30, 2005

4) Company profile

Otsuka Chemical Co., Ltd.

Establishment date:	September 1, 2002
Capital:	1,000 million yen (not listed)

Toagosei Co., Ltd.

Establishment date:	March 31, 1942
Capital:	20,800 million yen

Furthermore, it is our priority to proceed with the transfer of the business as smoothly as possible. We look forward to receiving your continued support.

For further information, please contact:

Otsuka Chemical Co., Ltd. AgriTechno Division +81-3-3294-1616

Toagosei Co., Ltd. IR Public Relations +81-3-3597-7215