Press release
May 29, 2007

Sosei Announces Start of SD118 Phase I Studies

Tokyo, Japan – 29 May 2007: Sosei Group Corporation (“Sosei”; TSE Mothers Index: 4565), a biopharmaceutical company, today announces that its collaborative project SD118, which is under development for the treatment of neuropathic pain, has commenced Phase I clinical trials.

SD118 is being jointly developed with NeuroDiscovery Ltd (ASX Code: NDL) and its wholly owned subsidiary NeuroSolutions Ltd under a Collaboration Agreement concluded in June 2006. SD118 was previously under investigation in Japan for a different indication and now, following re-profiling and evaluation in experimental animal models, has demonstrated its potential as a new oral therapy for neuropathic pain.

The study is a double blind, placebo controlled, single dose, sequential group, dose escalation trial in healthy male volunteers to assess the safety, tolerability and pharmacokinetic profile of SD118 administered as an oral capsule. The study, involving some 40 subjects, will be conducted in a single centre in the UK under a CTA regulatory approval. Mr Shinichi Tamura, President & CEO of Sosei, said: "I am delighted that SD118 has now moved forward into clinical development. This project has the potential to provide a valuable addition to currently available therapies in an area of notable unmet medical need”