Kyowa Hakko Kogyo Co., Ltd.
Transfers Alcoholic Beverage Business
to Asahi Breweries Ltd.

 Tokyo, Japan, February 18, 2002 - Asahi Breweries, Ltd. (President: Kouichi Ikeda, Head office: Tokyo, Japan) and Kyowa Hakko Kogyo Co., Ltd. (President: Tadashi Hirata, Head office: Tokyo, Japan) have reached a basic agreement to transfer Kyowa Hakko ("Kyowa")'s alcoholic beverage business to Asahi Breweries ("Asahi"). This decision, which will see the transfer of businesses relating to Shochu, low alcohol beverage, wine and other related products, was reached at today's meeting of the boards of directors of the two companies. The raw alcohol business will not be included in the transfer.