-KRW79 billion earmarked for R&D in 2009, up 75.6% from last year

-Annual sales and operating profit targets set at KRW800 billion and KRW100 billion, up 13.9% and 22.4%
respectively from the previous year and the highest ever in the Korean pharmaceutical industry



Dong-A Pharmaceutical reaffirmed its aggressive 2009 business plan. The Korean drug company announced
that it would sharply boost outlays for R&D for the development of highly marketable drugs and spur its forays
into foreign markets, despite the gloomy economic environment. It seeks to become one of the twenty largest
pharmaceutical companies in Asia by 2012.



“By stepping up R&D investment and overseas marketing & sales, the company intends to become one of Asia’
s twenty largest pharmaceutical companies with annual sales of KRW1,400 billion by 2012, laying the foundation
for the company to become a global company,” said President Kim, Won-Bae on March 12.



For 2009, Dong-A projects sales to rise 13.9% to KRW800 billion and operating profit to rise 22.4% to KRW100
billion. The company will also focus even more aggressively on the development of drugs with great potential in
the global market and global marketing & sales.



President Kim said, “Times are tough as the global financial crisis has triggered a depression, a softening of
the Korean won and increases in raw material prices, but Dong-A will continue to hone its competitiveness for
the future through a massive expansion of R&D. Developing globally competitive new drugs and aggressive
advancing into foreign markets will be key toward creating new future value.”



To that end, Dong-A Pharmaceutical set aside KRW79 billion for R&D in 2009, which represents a 75.6%
increase from last year’s KRW45 billion. In order to become an R&D-driven global player, it plans to focus on
building a competitive R&D portfolio, as well as developing brand-name drugs by concentrating on specialized
areas, bio drugs that will increase global sales and mega incrementally modified drug (IMD) products reflecting
market trends.



The company is also going to direct its R&D capabilities on quality-of-life (QOL) products, capitalizing on its
technology and experience in new drug development. While strengthening R&D in digestive system disease
treatment and urinary disease treatment to build on the success of Stillen(gastritis drug) and Zydena(erectile
dysfunction drug), it will also take on R&D in metabolic and endocrine diseases including diabetes,
creating global brands one after another in the process. Alongside, the company will step up R&D for the 22
new drug candidates in the pipeline, as well as for the development of incrementally modified drugs and new
products.



Presently, Zydena, an erectile dysfunction drug, is awaiting the commencement of the US FDA’s Phase 3
clinical trials; and udenafil (DA-8159), the active substance in Zydena, is undergoing expanded Phase 2
clinical trials on its efficacy on portal hypertension in Europe. In addition, DA-7218, an oxazolidinone antibiotic
against super bacteria, is almost entirely through Phase 2 clinical trials in the US and is likely to enter Phase 3
late this year or early next year. It has a high probability of success. Meanwhile, a diabetes drug and a
premature ejaculation drug that Dong-A has been ambitiously developing as new global drugs are expected to
finish the preclinical development stage and move on to clinical trials this year.



For more active global marketing & sales, the company will finalize export contracts that it is currently pursuing,
pioneer new export markets, develop global talent, open more branches in the focus markets, and form
strategic alliances with foreign companies to establish a global business network. A phase-by-phase plan