Press Release

Tokyo, September 26, 2007 ---Japan Tobacco Inc. (JT) (TSE: 2914) and Torii Pharmaceutical Co., Ltd. (Torii) (TSE: 4551), JT's pharmaceutical business subsidiary, announced today that the companies have signed a licensing agreement with Keryx Biopharmaceuticals, Inc. (Keryx) (Nasdaq: KERX), under which JT and Torii will hold the exclusive rights to develop and commercialize Keryx's hyperphosphatemia drug in Japan, which is currently in phase II clinical study in the United States under the name of "Zerenex^TM."

Hemodialysis patients with chronic renal insufficiency often suffer from hyperphosphatemia (high phosphorus levels in the blood), a condition that may lead to complications that frequently present themselves concurrently in patients, including bone fractures and a calcified vessel wall, which is known to cause sclerosis.

The drug is a novel and ferric ion-based product, which has the capacity to bind to phosphorous and form non-absorbable complexes. The product is orally available and is unique to existing products, such as those containing aluminum ion or calcium ion, or polymer compound.

Under the terms of the agreement, JT and Torii will develop the compound and Torii will be commercializing it, once the development and necessary approval procedures have been completed. JT and Torii will pay to Keryx up to US$100 million in upfront licensing fees and payments upon the achievement of certain milestones, including up to US$20 million in upfront payments and near-term milestones by the end of the fiscal year ending March 31, 2008. In addition, the companies will pay royalties to Keryx based on product sales.

About Keryx Biopharmaceuticals, Inc.
Keryx Biopharmaceuticals, Inc. is focused on the acquisition, development and commercialization of medically important, novel pharmaceutical products for the treatment of life-threatening diseases, including diabetes and cancer.
Keryx is traded on the Nasdaq Stock Market under the symbol "KERX."

Headquarters: New York, USA
Chairman and CEO: MICHAEL S. WEISS
Established: 1998

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Japan Tobacco Inc. is the world's third largest international manufacturer of tobacco products. Since its privatization in 1985, JT has actively diversified its operations into pharmaceuticals and foods. JT entered into the pharmaceutical business in 1987 and established the Central Pharmaceutical Research Institute in 1993. JT is currently engaged in the research and development of new drugs in various areas such as glucose and lipid metabolism, anti-virus, immune disorders and inflammation, and bone metabolism. The company's net sales were JPY 4.769 trillion in the fiscal year that ended March 31, 2007.

Torii Pharmaceutical Co., Ltd., established in 1921, has manufactured and distributed ethical pharmaceutical products. In 1998, Torii became a member of the JT Group. To maximally leverage the synergy of the Group, R&D functions were transferred to JT and sales and marketing functions were transferred to Torii. Torii and JT continue to operate in close collaboration. Torii's net sales were approximately JPY 39,577 million in the fiscal year that ended March 31, 2007.

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