Taconic and CLEA Japan, Inc. Announce New Distribution Agreement

Hudson, New York — September 30, 2010 - Taconic, a leading provider of genetically modified solutions to researchers worldwide, announced that it has signed an agreement with CLEA Japan, Inc. for the distribution of Taconic's genetically modified mice and rats in Japan. This distribution agreement builds upon the relationship between Taconic and CLEA Japan, Inc., that began in 1998 whereby Taconic and CLEA concluded the GALAS alliance.

With this agreement, CLEA Japan, Inc. becomes the exclusive distributor of a wide range of Taconic models and services in Japan - including the unique Taconic Transgenic Models™ (TTM™) program, a portfolio of more than 60 transgenic rat and mouse models available off-the-shelf. The agreement also gives CLEA Japan, Inc. rights to distribute Taconic's Emerging Models portfolio of researcher-sponsored models; the Knockout Mouse Repository of over 3,600 genetically modified mouse lines and the TKO™ Rat Repository, currently comprising 90 genetically modified rat lines.

"Taconic's agreement with CLEA Japan, Inc. is a natural extension of the strong relationship we already enjoy with its sister organization, the Central Institute for Experimental Animals (CIEA)," said Sam Phelan, Taconic vice-chairman of the Board. "For over a decade, Taconic and CIEA have worked together to increase access to the genetically modified mice developed by CIEA, for the benefit of biomedical researchers worldwide. We're delighted to expand that relationship through our new agreement with CLEA Japan, Inc., which enables Taconic's genetically modified models to be more readily accessed by researchers in Japan. The agreement with CLEA Japan, Inc is also a natural outgrowth of Taconic's strategic direction to provide researchers throughout the world with the highest quality and most scientifically relevant novel transgenic rat and mouse models for in vivo research."

"Taconic recently implemented a global reorganization that aligns the depth and breadth of our resources more effectively worldwide for the benefit of our clients," said Kevin Leak, Senior Vice President, Global Client Relations Group. "Through our assessment of the market potential in Japan, it became clear that our clients in Japan would benefit greatly by an expanded and strengthened business relationship between CLEA Japan, Inc and Taconic."

"Based on the long-term collaboration between CLEA and Taconic through the distribution of PVR mice (for testing of oral polio vaccine) and the rasH2 mice (for short-term carcinogenicity testing) produced by CLEA to European customers, the global alliance for distribution of Wistar Hannover GALAS™ rats (for carcinogenicity and safety studies) and the recent sales and distribution agreement made with Taconic for the generation of genetically modified mice such as the ADME models, we are very confident that we can assist scientists in Japan in their studies by adding the TTMs™" said Fukushi Taguchi, president, CLEA Japan, Inc.

About CLEA Japan, Inc. 
Based in Tokyo and founded in 1965, CLEA Japan, Inc. is engaged in lab animal production and sales, the manufacture and sale of research animal feed and breeding equipment, the delivery of lab animal quarantine, inspection and testing services, and consultation on experimental animal facility design and construction. The company is also committed to expanding the availability of disease-specific models to advance the field of bio-science. For more information about CLEA Japan, visit www.clea-japan.com.

About Taconic
Taconic is a leading provider of life sciences solutions to researchers worldwide, offering innovative lab animal models and scientific services that facilitate in vivo studies and advance drug discovery. Taconic's wide range of advanced solutions include custom model design, generation and production, imaging, off-the-shelf model repositories, compound profiling, contract research, contract breeding, genetic monitoring, and health testing. Headquartered in New York's Hudson River Valley, Taconic operates seven breeding facilities and three service laboratories in the U.S. and Europe and maintains a staff of over 1,000 scientific specialists committed to technological innovation.