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April 1, 2008

Revision of forecasts for year ending December 31, 2008
concomitant with gain on change in equity arising from share exchange and consolidation into Kirin Group

Tokyo, April 1, 2008— Kirin Holdings Company, Limited ("Kirin") today announced revised consolidated and non-consolidated interim and full-year forecasts for the fiscal year ending December 31, 2008, based on a gain on change in equity and the consolidation of earnings arising from the share exchange undertaken between Kirin's consolidated subsidiary Kirin Pharma Company, Limited ("Kirin Pharma") and Kyowa Hakko Kogyo Co., Ltd. ("Kyowa Hakko"). The previous forecasts were announced on February 7, 2008 with the release of full-year results for the previous fiscal year.

(1)Interim forecasts

Consolidated forecasts (January 1, 2008 to June 30, 2008) (¥ million, %)
  Sales Operating
income
Ordinary
income
Net income
Previous (A) 936,000 45,000 40,000 12,000
Revised (B) 1,030,000 51,000 45,000 80,000
Change (B) — (A) 94,000 6,000 5,000 68,000
Change in percent 10.0% 13.3% 12.5% 566.7%
Previous interim results
(To June 30, 2007)
836,020 42,881 45,696 16,796
Non-consolidated forecasts (January 1, 2008 to June 30, 2008) (¥ million, %)
  Sales Operating
income
Ordinary
income
Net income
Previous (A) 56,300 44,700 44,000 42,500
Revised (B) 60,000 48,000 47,000 45,000
Change (B) — (A) 3,700 3,300 3,000 2,500
Change in percent 6.6% 7.4% 6.8% 5.9%

(2)Full-year forecasts

Consolidated forecasts (January 1, 2008 to December 31, 2008) (¥ million, %)
  Sales Operating
income
Ordinary
income
Net income
Previous (A) 2,100,000 133,000 124,000 57,000
Revised (B) 2,390,000 160,000 148,000 127,000
Change (B) — (A) 290,000 27,000 24,000 70,000
Change in percent 13.8% 20.3% 19.4% 122.8%
Previous full-year results
(To December 31, 2007)
1,801,164 120,608 123,389 66,713
Non-consolidated forecasts (January 1, 2008 to December 31, 2008) (¥ million, %)
  Sales Operating
income
Ordinary
income
Net income
Previous (A) 68,800 45,000 43,300 41,600
Revised (B) 73,000 49,000 48,000 46,000
Change (B) — (A) 4,200 4,000 4,700 4,400
Change in percent 6.1% 8.9% 10.9% 10.6%

(3)Reason for revisions

1. Consolidated

Kyowa Hakko has become a consolidated subsidiary of Kirin, as a result of Kirin acquiring ordinary Kyowa Hakko shares through a tender offer implemented between October 31, 2007 and December 6, 2007 in combination with Kyowa Hakko shares acquired through a share exchange implemented between Kirin's consolidated subsidiary Kirin Pharma and Kyowa Hakko on April 1, 2008. Concomitant with this, extraordinary income of approximately ¥70 billion is expected to arise as a gain on change in equity.

This gain on change in equity is recognized as arising from the difference between the value of Kirin Pharma shares held by Kirin that were exchanged (the decrease of Kirin's holding of Kirin Pharma shares, based on its market price) and the reduced amount of Kirin's holding of Kirin Pharma shares (the decrease of the value of Kirin's holding of Kirin Pharma shares based on the fair book value of Kirin's holdings of Kirin Pharma immediately prior to the share exchange)

In addition to the extraordinary income noted above, the consolidation of Kyowa Hakko is forecast to increase Kirin's net sales, operating income and ordinary income for the period.

2. Non-consolidated
Dividend income from group companies including Kyowa Hakko and others is forecast to increase.

As a result of the above, forecast consolidated sales for the interim period ending June 30, 2008 have been revised to ¥1.03 trillion, 10% higher than the previous forecast, and forecast consolidated net income for the interim period has been revised to ¥80 billion, 566.7% higher than the previous forecast. Forecast consolidated sales for the full year ending December 31, 2008 have been revised to ¥2.39 trillion, 13.8% higher than the previous forecast, and forecast consolidated net income for the full year has been revised to ¥127 billion, 122.8% higher than the previous forecast.

ENDS

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