Kyowa Hakko Reorganization Focuses on Production of Higher Value Added Amino Acids

January 1, 2002

Kyowa Hakko Kogyo Co., Ltd. announced that it would reorganize the feed-use amino acid operations at BioKyowa Inc. and the food-grade nucleic acid business of both Kyowa Foods Inc. and Kyowa America.

Under the plan, BioKyowa will cease manufacturing feed-grade L-Lysine at its Missouri plant and shift production to higher value-added amino acids for products such as nutritional food supplements. Likewise, Kyowa Foods will limit production of food seasoning nucleotides and convert its multi-purpose facility to the manufacture of amino acids, nucleic acids, and related products.

"Despite a difficult operating environment, sales and operating profits have grown steadily over the second and third quarters of 2001," stated Toshiaki Mizutani, manager of investor relations at Kyowa Hakko. "While we are pleased with these results, the reorganization of our bio-chemicals and food operations will further increase their competitiveness and profitability over the longer term. Equally important, these changes enhance Kyowa's ability to respond to customer demands."