News Release

ORIX to Invest in Kyoto Biken Laboratories, Japan’s Leading Manufacturer of Veterinary Vaccines

Feb 25, 2016

TOKYO, Japan - February 25, 2016 - ORIX Corporation ("ORIX"), a leading integrated financial services group, today announced that it intends to make equity investment in Kyoto Biken Laboratories, Inc. ("Kyoto Biken"), Japan's leading manufacturer of veterinary vaccines. ORIX plans to acquire 100% of total outstanding shares of Kyoto Biken by around the end of April, 2016.

Kyoto Biken is an independent pharmaceutical company that develops, manufactures and markets prophylactic vaccines against infectious diseases in cows, pigs, chickens, and other livestock as well as pet dogs and cats. The company was founded as Japan's first private-sector veterinary drug manufacturer in 1948. Since then, it has leveraged its R&D capabilities cultivated over many years and its know-how in vaccine manufacturing, which is regarded as a highly difficult area, to acquire the highest net sales for veterinary vaccines in Japan. In particular, Kyoto Biken boasts a market share in Japan exceeding 60% for bovine vaccines* . Additionally, the company established a local subsidiary in Vietnam in 2011, putting in place a production and marketing base targeting China and Southeast Asia, where demand is expected to grow in the future.

In recent years, the veterinary drug industry has been going through reorganization, including spinoffs of veterinary drug divisions from general pharmaceutical companies in Japan into separate companies as well as business transfers. Cross-border business alliances have gradually started to increase, including non-Japanese manufacturers entering the Japanese market and Japanese manufacturers attempting to venture into overseas markets through mergers with foreign manufacturers and other means. Furthermore, prompted by changes in the international business environment after the TPP agreement comes into effect, Japanese livestock farmers are anticipated to accelerate the expansion to large operations, in order to increase production efficiency. It is thought that this in turn will boost demand for vaccines against infectious diseases.

While maintaining Kyoto Biken's management independence, ORIX will help increase its corporate value through measures to strengthen its financial base and support its overseas expansion, especially in Asia. Acknowledging the likelihood of further reorganization within the industry, ORIX will strive to strengthen its investee's position in the industry by seeking opportunities to invest in other prominent players for business alliance among its investees.

Going forward, ORIX will draw on the expertise it has developed thus far to support the growth of companies with stable business platforms, high-quality technologies and services, and further growth potential.

* Source: "2014 Veterinary Drugs and Diseases of Concern Market Analysis and Outline of Market Trends," Fuji Keizai Co., Ltd.

■ Overview of Kyoto Biken
Company name Kyoto Biken Laboratories, Inc.
Representative Chiyo Naoe
Established June 1948
Address 24-16 Makishima-cho, Uji City, Kyoto
Business locations Five domestic locations; One overseas location (Vietnam)
Number of employees 258 (as of October 31, 2015)
Business Scope Research and development, manufacturing, marketing,
import and export of veterinary and plant vaccines and drugs
Revenues c. 6.0 billion yen (year ended December 2015)
Website http://www.kyotobiken.co.jp/english/index.htmlOpen Link in New Window

Contact Information:
ORIX Corporation
Corporate Planning Department
Tel: +81-3-3435-3121

About ORIX:
ORIX Corporation (TSE: 8591; NYSE: IX) is a financial services group which provides innovative products and services to its customers by constantly pursuing new businesses. Established in 1964, from its start in the leasing business, ORIX has advanced into neighboring fields and at present has expanded into the lending, investment, life insurance, banking, asset management, automobile-related, real estate and environment and energy-related businesses. Since its first overseas expansion into Hong Kong in 1971, ORIX has spread its business globally by establishing locations in a total of 36 countries and regions across the world. Moving forward, ORIX aims to contribute to society while continuing to capture new business opportunities. For more details, please visit our website: http://www.orix.co.jp/grp/en/

Caution Concerning Forward Looking Statements:
These documents may contain forward-looking statements about expected future events and financial results that involve risks and uncertainties. Such statements are based on our current expectations and are subject to uncertainties and risks that could cause actual results to differ materially from those described in the forward-looking statements. Factors that could cause such a difference include, but are not limited to, those described under "Risk Factors" in the Company's annual report on Form 20-F filed with the United States Securities and Exchange Commission and under "4. Risk Factors" of the "Summary of Consolidated Financial Results" of the "Consolidated Financial Results April 1, 2014 - March 31, 2015."

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