Makoto Signs $20 Million Research Collaboration with Taiho Pharmaceutical, Co., Ltd.

CAMBRIDGE, MASSACHUSETTS – July 24, 2006 – Makoto Life Sciences, Inc. announced today that it has signed a Funded Research Agreement with Taiho Pharmaceutical Co., Ltd of Japan. Under the terms of the Agreement, which provides research funding, potential future milestone and royalty payments, the companies will collaborate and leverage Makoto’s multi-component platform for applications in small molecule target identification. Target identification is among the most challenging problems along the critical path to drug discovery and development. Makoto’s integrated approach will be utilized under the Agreement to identify targets within disease pathways in several therapeutic areas, including, oncology, urology and allergic inflammation, and will facilitate further drug development activities at Taiho.

Makoto specializes in small molecule target identification, which is the process of finding the cellular target(s), typically proteins, responsible for the biological effects of drugs or potential drugs. Makoto has developed a unique multi- component approach to target identification that combines genetic, biochemical, and chemical methods. Central to Makoto’s approach to target identification is protein profiling, which enables the simultaneous monitoring of the activation state of multiple proteins.

The discovery of new drug-target pairs by Makoto Life Sciences, Inc. will accelerate drug discovery by coupling the discovery of novel targets with compounds that modulate their activity.

“We are delighted to have this collaboration with Taiho and believe that this is the first step towards a productive and long term strategic relationship between the companies,” commented Dr. Terence S. Russell, Chief Executive Officer at Makoto Life Sciences.

About Taiho Pharmaceutical Co., Ltd.

Taiho Pharmaceutical Co., Ltd. is a company engaged in the discovery, development, manufacturing and marketing of pharmaceutical products. Taiho was founded in 1963 and is now the leading company in the Japanese oncology field. Taiho, headquartered in Tokyo, Japan, is a member of the Otsuka Group and has operations in Japan and the United States.

About Makoto Life Sciences, Inc.

Makoto Life Sciences, Inc. specializes in small molecule target identification, the process of finding the cellular targets responsible for the biological effects of potentially therapeutic compounds. The company seeks to identify targets in several therapeutic areas, including oncology, urology and allergic inflammation. Makoto is located in Bedford, MA. To learn more visit www.makotolife.com.