Press Release
April 16, 2014
Lion Corporation President: Itsuo Hama (Code 4912)

Issuance of Zero Coupon Convertible Bonds due 2019 in form of Third Party Allotment

Lion Corporation (the "Company") hereby notifies the issuance of Zero Coupon Convertible Bonds due 2019 (bonds with stock acquisition rights, tenkanshasaigata shinkabu yoyakuken-tsuki shasai, hereinafter referred to as the "Bonds") in the issue amount of JPY 15 billion, through Third Party Allotment to Deutsche Securities Inc., pursuant to a resolution of a meeting of the Board of Directors held on April 16th, 2014. The Company has been informed that Deutsche Securities Inc. will sell call option of the Bonds as warrants to non-Japanese institutional investors.

1. Background, purpose and reason of the Issuance of the Bonds

Due to factors such as consumer spending showing upward trends, the business environment surrounding the
Company started to recover. On the other hand, competitions in retail stores still remain intense.
In this environment, to create value for lifestyle and spiritual fulfillment as set forth in its new management vision, "Vision 2020", the Company is implementing its medium-term management plan, "Vision 2020 Part-1 (V-1 Plan)," from 2012 which includes following four key strategies: (1) Qualitative Growth of Domestic Businesses; (2) Quantitative Expansion of Overseas Businesses; (3) Development of New Business Value; and (4) Enhancement of Organizational Learning Capabilities. By implementing various measures pursuant to these key strategies, the Company intends to realize steady improvement of its profitability and enhance its enterprise value by resolving social issues and creating new values.
In particular, in Japan, the Company aims to nurture high-value-added products, including Oral Care Products, Pharmaceutical Products and Fabric Care Products, while seeking to improve profitability by promoting costs efficiently. In overseas, the Company promotes development of its brand in Oral Care Products and Fabric Care Products, while continuing active investments in its facilities.
The Company decided to issue the Bonds to realize zero-cost financing for the repayment of existing long-term debt.

2. Use of Proceeds

All proceeds from the issuance of the Bonds will be used as part of funds for repayment of JPY21.2 billion long- term debt, which is due July, 2014.
Ends

This document is a press release for the purpose of general publicity concerning the issue of securities by Lion Corporation and is not intended to be used for the purpose of any solicitation for investment or any other similar activity in any jurisdiction in or outside Japan (including the United States).

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