Basic Agreement on Assignment of Bone Replacement Material Business[2005.05.11] Olympus Biomaterial Corp. (Olympus BM, CEO: Hitoshi Mizuno, HQ: Shinjuku, Tokyo), Sumitomo Osaka Cement Co., Ltd. (SOC, CEO: Yasuyuki Odagiri, HQ: Chiyoda, Tokyo), and Sumitomo Pharmaceuticals Co., Ltd. (CEO: Yasuo Okamoto, HQ: Osaka-city, Osaka) reached a basic agreement on transferring the artificial bone replacement material category, which SOC manufactures, and Sumitomo Pharmaceuticals distributes, to Olympus BM. Specific terms will be discussed, and the transfer will be completed by the end of June 2005. 1. Purpose of the business transfer Olympus BM was established Sep. 1, 2004 as a wholly-owned subsidiary of Olympus Corporation (Tsuyoshi Kikukawa CEO).