Calpis and Unilever Enter into a Licence and Material Supply Agreement for AmealPeptide(TM)

- Unilever to Launch a Dairy Beverage Incorporating AmealPeptideTM in Europe from July -

Tokyo, June 23, 2005 - Calpis Co., Ltd. has entered agreements with Unilever (Unilever PLC and Unilever N.V.) to license the technologies, patents and trademark and to provide the blood pressure regulating ingredient AmealPeptideTM for blood pressure controlling foods to be manufactured and sold by Unilever in Europe .

As a result of this licensing agreement, Unilever will launch a blood pressure controlling dairy beverage incorporating AmealPeptideTM called “Becel/Flora* pro.activ ” in Portugal this July, and gradually expand its sales area .

AmealPeptideTM brand logo will show on the product package to emphasize the active ingredient and that the product is produced under the license of Calpis.

Through this latest tie-up with Unilever, Calpis is projecting its sales to be JPY 1.5 billion (approx. US$13.7 million) for the first 12 months. With the establishment of functional ingredient sales in Europe, Calpis intends to accelerate the expansion of its ingredients and intellectual property business in the United States and other areas, and establish the functional ingredients business to one of its mainstay business.

* (The product will be marketed under “Becel” brand or “Flora” brand )

Under its new three-year medium-term (2005/2007) business plan, Calpis is aiming to expand its domain lactic acid beverage business, as well as establishing the foundation of health food & beverage business and
aggressively expanding the overseas business. Within this business plan, Calpis will promote the global expansion of its health food & beverage business by utilizing the company’s proprietary micro-organism utilization technologies, such as the blood pressure regulating ingredient AmealPeptideTM .

Unilever already markets functional food product, such as cholesterol lowering margarine, in Europe where
many people suffer from lifestyle related diseases.

Through its investigation, Unilever noticed the research findings and health functions of Calpis’ AmealPeptideTM , and entered into a licensing and material supply agreement for the ingredient, with a view to launching “Becel/Flora pro.activ ”, a drink to help to control blood pressure in the European market, where there are said to be about 100 million people with high blood pressure. As a result of this agreement, Unilever will have the right to use AmealPeptideTM , while Calpis will be able to secure a strong base for its functional ingredient business
in the European market.

AmealPeptideTM , also known as LactotripeptideTM (LTP), is Calpis’ proprietary natural ingredient produced by the enzymatic hydrolysis of casein (milk protein), and has been available in Ameal STM , a FOSHU (Food for Specified Health Use) for people with high blood pressure sold in Japan by Calpis since 1997. In 2002, Calpis has succeeded in the production of AmealPeptideTM in powder form. Through the development of an efficient manufacturing process, Calpis started the expansion of its ingredients and intellectual property business under the AmealPeptide TM brand. Contract production of AmealPeptideTM has started in Denmark this May, enabling Calpis to achieve a stable supply, not only to Europe, but also to the US and Japan.

Research findings and results relating to Ameal STM have earned high recognition in the West. In 2001, for the successful research & development and commercialization of Ameal STM , Calpis was awarded the Food
Technology Industrial Achievement Award by the Institute of Food Technologists (IFT), headquartered in the United States, and the Food Ingredient Research Award at Food Ingredients Europe (FIE), one of the world’s largest food and ingredients exhibitions. As of today, Ameal STM holds about 70% shares in the blood pressure category of FOSHU products, and has been firmly established in the Japanese market.

Encouraged by this latest licensing and material supply agreement with Unilever, Calpis will communicate the importance of blood pressure health and aggressively expand its ingredients sales and intellectual property business in the U.S. and Europe, where many people suffer from lifestyle related diseases.

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