Kyowa Hakko Raises Interim Operating Income Forecasts: Full-Year Forecasts Unchanged

Kyowa Hakko Kogyo Co., Ltd. (Kyowa Hakko) (TOKYO:4151) today
revised its forecasts for the interim period of the fiscal year ending
March 31, 2008. Forecasts for the full year remain unchanged. Details
of the revised forecasts and previous forecasts announced on July, 27,
2007 are as follows:

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*T
Revised forecasts: Interim period (April 1, 2007 to September 30,
2007)
Millions of yen
Consolidated Net
Operating Recurring Net income
Net sales income income income per
share
(yen)
---------------------------------------------------------------------
Previous forecasts 193,000 15,000 16,000 10,000 25.13
Revised forecasts 192,600 18,200 18,000 11,000 27.65
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Change in forecasts -400 3,200 2,000 1,000 2.52
Percentage change -0.2% 21.3% 12.5% 10.0% 10.0%
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Reference: Results for
interim period ended
September 2006 173,139 14,570 15,137 3,984 9.66
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*T

Main reasons for revised forecasts

Forecast consolidated net sales for the interim period are broadly
unchanged from our previous forecast. However, profits for the interim
period are expected to exceed previously announced forecasts due to a
shift in certain R&D and other expenses from the first half of the
fiscal year to the second half, and cost savings.

As these expenses are expected to be incurred in the second half
of the fiscal year, full-year forecasts remain unchanged.

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Reference: Full-year forecasts: April 1, 2007 to 31 March, 2008
(announced July 27, 2007)
Consolidated Millions of yen
Recurring Net income
Net sales Operating income income Net income per share
(yen)
---------------------------------------------------------------------
395,000 36,000 36,000 26,000 65.35
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-- The above forecasts are based on information available and
assumptions made at the time of release of this document about a
number of uncertain factors that can affect results in the future. It
is possible that actual results are materially different for a wide
variety of reasons.
*T

For further information please access:
http://ir.kyowa.co.jp/english/index.cfm

This document is an English translation of the Japanese-language
original. All financial information has been prepared in accordance
with generally accepted accounting principles in Japan. It contains
forward-looking statements based on a number of assumptions and
beliefs made by management in light of information currently
available. Actual financial results may differ materially depending on
a number of factors, including fluctuations in exchange rates,
changing economic conditions, legislative and regulatory developments,
delays in new product launches, and pricing and product initiatives of
competitors.