1. Purpose of Formulating the 2014 MEDIPAL Medium-Term Vision

Over the past three years (through the fiscal year ending March 31, 2011) the MEDIPAL Group has closely followed changes in the market environment and in customer and consumer needs, and is adapting to these changes by proactively promoting business innovations and restructuring Group operations to enhance and expand its business.

We formulated the 2014 MEDIPAL Medium-Term Vision to make the most of the new business foundation and wholesale functions created by these reforms. Our objective over the three years from April 2011 through March 2014 is to establish a structure throughout the Group that will allow us to respond accurately to the apparent or underlying needs of customers and consumers through high-quality distribution services.

The basic policy representing the direction of the MEDIPAL Group in the next three years is as follows: “By building a new distribution system focused on safety, security and low cost, we aim to be the most reliable business group for our customers and society.�E

The pharmaceuticals, medical equipment, cosmetics, daily necessities and other products that the MEDIPAL Group handles are indispensable in helping people live safe, secure lives. A stable supply of these products will always be needed, regardless of changes in the social environment. The MEDIPAL Group views this role as its primary mission, and we will make a concerted effort as a Group to create distribution that makes people happy.