Kyowa Hakko to Showcase New Liquid Version of Cholesterol-lowering Functional Food and Drink Ingredient at July IFT Food Expo

TOKYO, July 8 -- Kyowa Hakko Kogyo Co., Ltd., one of Japan's leading developers of pharmaceutical and biotechnology products, has developed a liquid version of CSPHP(1), its popular cholesterol-lowering food ingredient. This technological breakthrough means that food and drinks manufacturers can make functional beverages that dramatically lower cholesterol levels.

Kyowa Hakko will be showcasing its new liquid CSPHP at the IFT Annual Meeting in Chicago from July 12 - 16. Interest from the food and drink industry is expected to be high as companies look for innovative ways to catch the attention of increasingly health conscious consumers.

Since its release in Japan in 2001 in powder form, CSPHP has become a popular ingredient for functional foods among Japanese consumers.

"We believe that CSPHP-containing drinks will appeal more to consumers in the U.S. and Europe where functional beverages are more common than functional foods," said Tadayasu Furukawa, President of Kyowa Hakko's Food Company. "It requires such small volumes and is so stable that almost any manufacturer can incorporate it into their products. We think this unique product will add real impetus to the overall functional beverage market."

According to the National Heart, Lung, and Blood Institute's National Cholesterol Education Program, about 50 percent of American adults have elevated blood cholesterol levels, one of the key risk factors for heart disease, which is the number one killer of both men and women in the U.S.

Kyowa Hakko released a mild yogurt-flavored CSPHP drink in Japan in May 2003. The Company plans to market the liquid CSPHP technology in the U.S. through New York-based Kyowa Hakko U.S.A., Inc.

(1)About CSPHP:

CSPHP is a novel cholesterol-lowering compound that combines soy protein hydrolyzate and soy phospholipids to block the absorption of harmful LDL cholesterol in the intestine. CSPHP also has a unique property that promotes the production of healthy HDL cholesterol.

Controlled trials indicated that 3 grams of CSPHP taken every day for one month reduced LDL-cholesterol by 17 percent, compared to a 13 percent reduction with the same quantity of plant sterol ester. In the same trials, a daily intake of 25 grams of soy protein resulted in a reduction of LDL-cholesterol by only 10 percent.

As a food additive CSPHP is highly stable, retaining its properties even through high temperature food manufacturing processes. Because CSPHP can be added to proteins, lipids, starches, and minerals it can be used as an active health ingredient in a wide range of consumer-acceptable foods, drinks, and dietary supplements.

Japan's Ministry of Health, Labour, and Welfare officially recognizes CSPHP as a 'Food for Specified Health Use (FOSHU)'. For the U.S. market, CSPHP has been self-affirmed GRAS (Generally Recognized As Safe) through an independent evaluation by an expert panel.

About Kyowa Hakko:

Kyowa Hakko is an industry leading global supplier to the food, pharmaceutical and chemical industries, with net sales in the fiscal year ending March 31, 2003 of 359 billion yen. The Company was established in 1949 and is headquartered in Tokyo, Japan.

Areas of expertise include the development and application of fermentation technology, and new forms of biotechnology. Kyowa Hakko's core pharmaceutical research focuses on drug discovery using antibody-based technologies and on developing therapeutic agents for cancer and allergies.

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