Ajinomoto to Establish Pharmaceutical Intermediate Joint Venture in India

Tokyo, July 14, 2011 - A wholly owned subsidiary of Ajinomoto Co., Inc. (Ajinomoto), S.A. Ajinomoto OmniChem N.V. (OmniChem; Managing Director: Gwin Bompas; Head Office: Louvain-la-Neuve, Belgium) concluded an agreement today with Granules India Limited (Granules; Managing Director: Krishna Prasad; Head Office: Hyderabad, India), a manufacturer of active pharmaceutical ingredients (APIs) and pharmaceuticals in India, to form a joint venture, Granules OmniChem Private Ltd. The new company will be established during July 2011 and will manufacture pharmaceutical intermediates and APIs. It will begin construction of a plant in a special economic zone in Vishakhapatnam, Andhra Pradesh, India, in November 2011, and production is expected to begin in January 2013. Capital investment in the joint venture, including future expenditures, is expected to total approximately USD 20 to 25 million. The operating environment of the pharmaceutical industry is changing substantially. One factor driving change is the simultaneous expiration of the patents on several major drugs during 2010, which has significantly impacted pharmaceutical companies. Other factors include medical cost restraints and the decreasing number of new drug approvals. Companies are under pressure to change their strategies in order to survive, with an increasing number choosing to outsource production, particularly production of APIs. For some time, OmniChem has been investigating the construction of a new manufacturing base in India to respond to customer requests resulting from changes in the pharmaceutical industry and to enhance its business. In India, progress has been rapid in the pharmaceutical industry and costs are low. The joint venture agreement partner, Granules, has powerful technological capabilities that allow it to supply low-cost, high-quality APIs and pharmaceuticals. The establishment of the new company will increase OmniChem's cost competitiveness and production capacity. This will further enhance Ajinomoto's pharmaceutical intermediates business and allow it to provide new value to customers. Overview of the New Company

(1)  Name: Granules OmniChem Private Ltd.          (2)  Equity ownership:  S.A. Ajinomoto OmniChem N.V.: 50%  Granules India Limited: 50%          (3)  Location: Vishakhapatnam, Andhra Pradesh, India          (4)  Date of establishment: July 2011 (Planned)          (5)  Business: Manufacture of pharmaceutical intermediates and APIs          (6)  Capital: Not disclosed

For reference What are pharmaceutical intermediates? Pharmaceutical manufacturing is generally divided into multiple processes. Substances at process stages between the initial raw materials and the APIs are called pharmaceutical intermediates. APIs are the ingredients that give pharmaceuticals their effect. 1. Overview of S.A. Ajinomoto OmniChem N.V.          (1) Name: S.A. Ajinomoto OmniChem N.V.          (2) Location: Louvain-la-Neuve, Belgium          (3) Date of establishment: 1778　（Ajinomoto Group from 1989）          (4) Capital: EUR 21 million (approximately JPY 2.4 billion)          (5) Equity ownership: Ajinomoto Co., Inc.: 100%          (6) Business: Manufacture and marketing of pharmaceutical intermediates and APIs          (7) Representative: Gwin Bompas, Managing Director 2. Overview of Granules India Limited          (1) Name: Granules India Limited          (2) Location: Hyderabad, Andhra Pradesh, India          (3) Date of establishment: 1984          (4) Capital: INR 200 million (approximately JPY 360 million)          (5) Equity ownership: Promoters, Associates, etc.: 35%                                      Corporations: 35%                                      (Listed on the Bombay Stock Exchange/National Stock Exchange)          (6) Business: Manufacture and marketing of APIs and pharmaceuticals          (7) Representative: Krishna Prasad, Managing Director About Ajinomoto Ajinomoto is a global manufacturer of high-quality seasonings, processed foods, beverages, amino acids, pharmaceuticals and specialty chemicals. For many decades Ajinomoto has contributed to food culture and human health through wide-ranging application of amino acid technologies. Today, the company is becoming increasingly involved with solutions for improved food resources, human health and global sustainability. Founded in 1909 and now operating in 23 countries, Ajinomoto had net sales of JPY 1,207.6 billion (USD 14.2 billion) in fiscal 2010. For more about Ajinomoto (TYO: 2802), visit www.ajinomoto.com. For further information, please contact: Ajinomoto Co., Inc. Public Communications Department; pr_info@ajinomoto.com

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