R&D for polyester fibers and for aramid, carbon and other high-performance fibers continues to focus on adding new performance features and greater value and making products more environment-friendly.

High-Performance Fibers  In fiscal 2008, we sought to develop applications for TEIJINCONEX metaaramid fibers in such areas as next-generation, high-performance fireproof clothing, as well as technologies for enhancing productivity. We also continued to focus on developing technologies to bolster productivity for TECHNORA para-aramid fibers, as well as new applications for TWARON para-aramid fibers in the production of new types of para-aramid pulp that offer a variety of new performance features. Our ongoing research in the use of nanotechnology is also enhancing fiber performance. On another front, we continued to work toward the commercialization of SULFRON, a newly developed rubber reinforcement that significantly enhances the performance and economy of tires.

We also endeavored to develop technologies that maximize the superb strength and tenacity of TENAX carbon fibers, as well as to cultivate applications in materials requiring electroconductivity and corrosion-resistance. As well, we are targeting the development of technologies for composite materials used in parts for automobiles.

Polyester Fibers  In this area, we have narrowed our focus to environment-friendly and highperformance products, and are highlighting research in the area of new polyester materials, as well as the development of new products. Efforts to develop environment-friendly products led to the selection of BIOFRONT (a heat-resistant bioplastic that offers the levels of quality and durability required for automotive interior materials) for use in car seats for a new commercial-model hydrogen hybrid vehicle manufactured by Mazda Motor Corporation. In high-performance polyester fibers, efforts aimed at commercializing and developing applications facilitated the start of commercial production of NANOFRONT, an innovative new high-strength polyester nanofiber that capitalizes on key technologies. A world's first, this product was awarded a prize for technology by the Society of Fiber Science and Technology, Japan, and is attracting considerable attention in both academic and industrial circles.

Films We are focusing development efforts on high-performance products, notably PET and PEN films. In films for FPDs, we are developing high-performance films and processed-film products, particularly liquid crystal and plasma displays. We are also emphasizing the development of films for solar cells to accommodate soaring global demand, and of industrial-use and packaging films with reduced environmental impact.

In the area of data storage media, we are responding to needs deriving from rapidly increasing storage capacities by developing a base film for LTO-5, the fifth generation linear tape-open (LTO) format, with a view to commercial launch by end of fiscal 2010. Additionally, we are promoting the development of applications for TEONEX PEN film in next-generation solar cells and lighting, as well for the automotive sector; for TEFLEX formable film in the automotive and ornamental and design fields; and for multilayered films for use in ornamental and design applications and in the prevention of forgery.

Plastics Efforts here currently highlight improving and modifying the physical properties of PANLITE polycarbonate resin, as well as developing molding technologies and new polymers and conducting research in the area of extrusion technologies for polycarbonate film and sheet.

For automotive applications, we are advocating polycarbonate as an alternative to glass in automotive glazing applications, with efforts focusing on the development of materials, as well as molding and hard-coating technologies. In the period under review, we became involved in a project organized by a domestic automaker to develop a new commercial-model car. Our involvement in this project ranges from R&D aimed at practical implementation of technologies to assessing material performance at each preliminary stage prior to production.

In June 2008, our molding technology that employs a two-component rotary injection-compression molding machine—one of the world's largest—was awarded the Aoki Katashi Technology Award, given by the Japan Society of Polymer Processing (JSPP) in recognition of excellent technologies that contribute to the evolution of Japanese plastic molding technology. This technology, developed jointly with Meiki Co., Ltd., facilitated the integrated molding of polycarbonate vehicle windows and frames.

With FPD manufacturers increasingly favoring our PURE-ACE phase-difference polycarbonate film for organic light-emitting diodes (OLEDs), we continue to conduct research aimed at developing new, higher-performance polycarbonate resins to facilitate new and improved phase-difference polycarbonate films. To accelerate efforts to respond to market needs, in April 2009 we launched a new integrated development and production organization for plastics.

Pharmaceuticals  R&D in pharmaceuticals focuses on three key therapeutic areas—bone and joint disease, respiratory disease, and cardiovascular and metabolic disease—and encompasses both independent efforts and collaboration with universities, research institutes and pharmaceuticals companies in Japan and overseas. In June 2008, we commenced phase III clinical trials for ALVESCO, an inhaled corticosteroid, for treating asthma in children, while in December we did the same for GTH-42V, a new injection form of osteoporosis treatment BONALON^*1. Also, in December 2008, GGS (VENILON), currently under development as a treatment for Churg-Strauss syndrome^*2, was granted orphan drug designation. The same month, we filed for regulatory approval for GGS for this new indication.

In April 2008, partner Beaufour Ipsen S.A. of France, to whom we have licensed out gout and hyperuricemia treatment TMX-67, was granted marketing authorization in Europe. The company is proceeding with preparations for launch. U.S. licensee Takeda Pharmaceuticals North America was authorized to market TMX-67 in the United States in February 2009 and commenced sales the following month. Also in March, a licensing agreement was concluded giving Bristol-Myers Squibb of the United States exclusive marketing rights outside of Japan for NTC-801, a novel atrial fibrillation and flutter treatment and preventative drug currently under joint development with Nissan Chemical Industries.

Home Health Care  We continue to promote the development and launch of new home health care equipment offering improved safety and ease of operation, as well as to cultivate new home health care markets. Having received approval to manufacture the previous month, in May 2008 we commenced rentals of HI-SANSO PORTABLE, a new portable therapeutic oxygen concentrator. We received approval to manufacture and market HI-SANSO 3R, a new high-performance, energy-saving unit, in September 2008 and commenced rentals in October.

^*1 BONALON is the registered trademark of Merck & Co., Inc., Whitehouse Station, NJ, U.S.A.

^*2A condition that affects asthma sufferers, Churg-Strauss syndrome is marked by an excessive number of eosinophils (a type of leukocyte) and eventually leads to vasculitis (vascular lesions causing inflammation of the small blood vessels). Churg-Strauss syndrome has been designated for study under the Research on Measures for Intractable Diseases project being undertaken by Japan's Ministry of Health, Labour and Welfare.

We are making efforts to fortify our foundation in chemical synthesis and polymer science—which is shared by all Teijin Group companies—as well as to cultivate new businesses. To this end, we opened the Teijin Technology Innovation Center in Iwakuni, Japan, in April 2008, which features an open laboratory designed to encourage the incubation of new businesses through the organic integration of proprietary technologies with technologies introduced from outside the Group.

In the area of water treatment, we sought to cultivate markets for wastewater treatment and recycling, primarily by capitalizing on our Multi-Stage Activated Biological Process (MSABP), a groundbreaking water purification system that uses the food chain of microorganisms to suppress the generation of residual sludge.

Research in the environment and energy field in recent years has yielded such materials as BIOFRONT, a heat-resistant bioplastic. In the period under review, we broke ground on a new medium-scale pilot plant with the aim of accelerating the development of applications for this innovative product. In the automobiles and aircraft field, where research currently focuses on the development of advanced composite materials, we acquired a majority stake in GH Craft Ltd., a manufacturer with outstanding technologies and a proven track record in this area. We also established the Teijin Composites Innovation Center on the GH Craft site in Gotemba, Shizuoka, a new facility that is charged with conducting R&D and cultivating markets for advanced composite materials. In information and electronics, we are working toward the early commercialization of RAHEAMA highly thermally conductive carbon fibers, as well as promoting the development of film substrates for flexible displays, while in health care our emphasis is on research in advanced medical materials.