At its Board of Directors meeting held on March 26, 2008, Alfresa Holdings Corporation passed a resolution to acquire shares of APOLLO MEDICAL HOLDINGS INC and make APOLLO MEDICAL HOLDINGS its subsidiary as described below.

1. Reason for acquisition of shares
Our group mission is “to maximize corporate value by creating innovative value and earning the trust of society through contribution to people’s health mainly in the field of medical care” while our group vision is “to be a ‘Healthcare Consortium’ that provides comprehensive healthcare services.” With this mission and vision, Alfresa Group undertakes business activities.

Also, in the “07-09 Medium-term Management Plan – Advancement and Expansion” announced in May 2007, efforts for the development of new business category in response to health-related needs is mentioned as one of the measures for realization of the ‘Healthcare Consortium’.

Alfresa Holdings Corporation will acquire shares of APOLLO MEDICAL HOLDINGS at the request of APOLLO MEDICAL HOLDINGS, which contributes to the medical care in local communities as a company that provides “total healthcare services” primarily in the dispensing pharmacy business. Following such acquisition, Alfresa Holdings Corporation will aim at realizing the group vision and maximizing its corporate value through the pursuit of mutual synergy effects.

2. Outline of subsidiary to be acquired (APOLLO MEDICAL HOLDINGS INC)
(1) Trade name: APOLLO MEDICAL HOLDINGS INC
(2) Representative: Teruo Azuma, Chairman & President
(3) Address of head office: 2-32-22, Higashi-Ikebukuro, Toshima-ku, Tokyo
(4) Establishment: March 28, 1991
(5) Main business: Operation of dispensing pharmacies
(6) Fiscal year-end: March 31
(7) Number of employees: 372 (as of March 31, 2007)
(8) Number of stores: 47
(9) Capital amount: 385 million yen
(10) Total number of shares issued and outstanding: 5,377
(11) Major shareholders and shareholding ratio: Takashi Sato 26.1%, Teruo Azuma 25.0%, Employee Shareholders Association 6.5%, Akihiko Tsuji 6.0% (as of March 31, 2007)

(12) Performance trends in the most recent business year

3. Acquiree of shares
(1) Acquiree: Due to be acquired from individual shareholder
(2) Relationship with Alfresa Holdings: None

4. Number of acquired shares and status of owned shares before and after acquisition

5. Schedule

March 26, 2008: Resolution at the Board of Directors meeting
March 27, 2008: Date of share acquisition (planned)

6. Future outlook
The conversion of APOLLO MEDICAL HOLDINGS INC into a subsidiary will have an immaterial impact on the consolidated operating results of Alfresa Holdings Corporation.