SK Life Science Introduction 2008 June 0 Life

SK Life Science Introduction 2008. June 0

Life Science in SK Group Life Science Business is outset for the growth drive in the future SK Group Revenue: $ 848 MM Employee > 300 Revenue: $ 1. 2 B. Employee > 1, 150 SK holdings SK Chemicals Holding company in SK Croup Fine Chemicals, Life Science Biz Life Science Division New Drug Development Drug development & Marketing Custom Manufacturing Service (Korean and Asian Market) 1) E&P: Exploration & Production 1

As of July 1 st 2007, SK Corporation was divided into two companies, SK Energy and SK Holdings Ltd, and Life Science biz becomes a part of SK Holdings Solidifying Corporate Governance Purpose of Reorganization Enhancing Overall Shareholder Value Maximizing Management Efficiency Resolving the Issue of Under-valuation Previous Structure New Structure • SK Corporation had various operating divisions and held many subsidiary companies E&P Oil Refinery SK Telecom Chemicals • Reorganize as a holding company and 8 operating companies • SK Life Science stays with holding company as one operating division Lubricants SK Corp. Life Science SK Networks Other Subsidiaries SK Holdings SK Energy SK Telecom SK Networks Science Life Other Subsidiaries 2

Organization SK Life Science Biz. Life Science Strategy Team Seoul, Korea Process R&D Lab. Drug Development Center (신약개발사업부) CMS Business (CMS사업부) Discovery Lab. CMS Production Team Drug Preclinical Research Lab. Marketing Team(New Jersey) Daejeon, Korea New Jersey, USA R&D Planning Team New Jersey R&D Center Shanghai R&D Center * CMS: Custom Manufacturing Service Shanghai, China 3

Drug Development Center

Role & Responsibility Drug Development Center KOREA [Seoul] Strategic Planning Licensing Out [LSRDP 1)] USA [New Jersey] Advanced Preclinical Studies Clinical Studies in USA Regulatory Affairs in USA CHINA [Shanghai] Drug discovery Market research in China R&D Planning Licensing In Drug Discovery Early Preclinical Studies Formulation Studies Intellectual Properties 1) LSRDP: Life Science R&D Park 5

History The first Korean company to obtain IND approval from U. S. FDA Licensing Out to Johnson & Johnson (CNS field) Developing globally competitive new drug pipeline Licensing Out to J&J (YKP 10 A) ( Start Pharmaceutical research in New Jersey, US and Daejeon, Korea focusing on CNS area 1996 1993 Licensing Out to J&J (YKP 509) Establish Shanghai Drug Dev. Center 1998 2003 1999 IND Approval for YKP 10 A, YKP 10 A an antidepressant, from U. S. FDA IND Approval for YKP 509, YKP 509 an anticonvulsant, from U. S. FDA 2000 2005 2007 2002 IND Approval for YKP 1358, YKP 1358 an Antipsychotic, from U. S. FDA New IND expected IND Approval for YKP 3089, YKP 3089 an anxiolytic, from U. S. FDA (currently at POC entering) 6

R&D Areas Successful track records in CNS drug discovery • Epilepsy, Depression, Schizophrenia, Neuropathic pain and Parkinson etc. Expansion toward Metabolic diseases • Obesity, Diabetes and Osteoporosis • Transdermal • Controlled release DDS • Intranasal Technology CV • Epilepsy • Depression • Schizophrenia CNS • Neuropathic Pain • Parkinson • Restenosis Metabolic diseases • Obesity • Diabetes 7

Pipeline Status Epilepsy(YKP 509) CNS By J&J Depression (YKP 10 A) Narcolepsy, Drug addiction (Ready to IND) Epilepsy/Anxiety/NP (YKP 3089) Schizophrenia (YKP 1358) on-going Preclinical studies w/ active enantiomer (YKP 1447) Neuropathic Pain Planning IND & Phase I in 2008 IBS Depression(SNDRI) Schizophrenia/Anxiety Parkinson Disease Pain (target based) DDS Metabolic CV Partnering Alliance - Clinical Study expected in May, 2008 Diazepam Nasal spray Obesity Compound for DES Discovery Lead Preclinical Phase III 8

CMS Business

Role & Responsibility CMS Business KOREA [Seoul] Planning [LSRDP 1)] USA CHINA [New Jersey] [Shanghai] Marketing Market Research Customer Relationship Process Development Biz Development Raw Material Purchasing Production Process Development QC/QA 1) LSRDP: Life Science R&D Park 10

Overview SK CMS provides custom manufacturing service to the global major pharma companies based on the innovative technological and production capabilities with a c. GMP complied quality system History & Location • Operation since 2000 based on R&D capabilities • Production Plants and R&D in Daejeon, Korea • Marketing in NJ, USA Customers • Global Major Pharmaceutical Companies Technology Products & Services Pfizer, Roche, Bristol-Meyers-Squibb, Schering Plough, Novartis, GSK, J&J, etc. • Catalytic Processes, Continuous Reaction Technologies • Enzymatic technology • Conventional Organic Synthesis • GMP Intermediates and API (End of 2007) • Process development and DMF support for customers – Catalytic and Continuous Processes – Co-Work and DMF support 1) GMP (Good Manufacturing Practice) 11

Quality System Plant Operation based upon c. GMP & ICH Q 7 A Quality Assurance based on Quality Management Systems • Quality Management System • Material Control System • Facilities & Equipment System • Production & In-Process Control System • Laboratory Control System Audits and Approval by Many Customers • • • ’ 98 ~’ 01 ’ 02 ~’ 03 ’ 04 ~’ 05 ’ 06 Current GSK Roche, Novartis, Pfizer, GSK, BMS, Lonza Pfizer, BMS (Approved for c. GMP Intermediate Production) Preparation of API Production and DMF Filing for New Drug 12

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