FOR IMMEDIATE RELEASE

Tokyo, March 22, 2005 --- Japan Tobacco Inc. (JT) (TSE: 2914) today announced that the company has signed a licensing agreement(*1) with Gilead Sciences, Inc. (Gilead) (Nasdaq: GILD) of Foster City, California, USA, under which Gilead will obtain the development and commercialization rights to JTK-303, JT's anti-HIV drug, outside Japan.

JTK-303, which is in phase I clinical study in Japan with JT, is an integrase inhibitor that works by blocking integrase, an enzyme that is involved in the replication of HIV. This compound's mechanism of inhibiting the HIV replication is novel, and no similar type of anti-HIV drug is yet available in the market. Thus, the two companies expect that the drug, once launched, would become another option for anti-HIV therapies.

"JT has long been committed to the exploration of anti-HIV drugs, and our efforts are gaining significant momentum. Today, we are extremely pleased to announce our partnership with Gilead, an ideal partner in the field of anti-HIV drug development," said Noriaki Okubo, President of JT's Pharmaceutical Business. "Together, we're now going to make every effort to advance this therapy into clinics as quickly as possible with the goal that it will some day benefit patients suffering from HIV."

"We are very pleased to partner with JT to develop this compound, which is from a novel class of drugs that target the integrase enzyme," said John C. Martin, PhD, President and CEO, Gilead Sciences. "HIV has been and continues to be a leading research and development priority at Gilead, and our efforts are focused on identifying compounds in established classes of HIV drugs and also exploring therapies with new mechanisms of action. We believe this particular compound has a profile that is complementary to our existing HIV products, and we look forward to advancing it forward in clinical trials later this year."

Under the terms of the agreement, Gilead will have exclusive worldwide rights, excluding Japan, to develop and commercialize JTK-303. JT will receive an upfront payment of US$15 million and could receive additional cash payments of up to US$90 million upon the achievement of certain milestones, and royalties based on product sales.

In July 2003, JT and Gilead announced that the two companies had signed a licensing agreement, under which JT would commercialize Gilead's anti-HIV drugs, Viread(R) (tenofovir disoproxil fumarate), Emtriva(R) (emtricitabine) and Truvada(R) (emtricitabine and tenofovir disoproxil fumarate) in Japan.

*1.

The transaction may be subject to review by the U.S. Federal Trade Commission under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

About Gilead Sciences, Inc.
Gilead Sciences is a biopharmaceutical company that discovers, develops and commercializes innovative therapeutics in areas of unmet medical need. The company's mission is to advance the care of patients suffering from life-threatening diseases worldwide. Headquartered in Foster City, California, Gilead has operations in North America, Europe and Australia.

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