Herbert Hugill Joins Qualicaps Group as First Global Chairman and CEO; Enhancing Competitive Position in the Global Environment by Delivering Quality, Service, Innovation and Value

Whitsett, NC – The Qualicaps Group announced that it has appointed Mr. Herbert L. Hugill to the newly created post of chairman and CEO in charge of coordinating global operations. He will be based in North Carolina and begins his duties immediately.

The Qualicaps Group, a leading manufacturer of two-piece hard gelatin and hypromellose (HPMC) capsules, has operations in Japan, Europe and the United States and markets its products worldwide. Mr. Hugill will orchestrate the Group’s global business while local managers will continue to be responsible for regional operations. To enhance its competitive position in the increasingly globalized healthcare industry, the Group plans, where appropriate, to globally standardize its products, technologies and processes in order to optimize its cost, capital efficiency and customer satisfaction, and to begin servicing its multi-national customers in a globally coordinated manner.

The Qualicaps Group was spun off from Shionogi & Co., Ltd. in October 2005 through a management buyout sponsored by The Carlyle Group, a global private equity firm.

Mr. Hugill’s background includes more than 22 years of successful management and leadership roles in the pharmaceutical product and service industry sector including: North American sales manager at Capsugel in the mid-1980s, now a division of Pfizer, Inc.; president of the North American division of RP Scherer Corporation in the 1990s, the world’s leading supplier of softgelatin capsules; and from 2000 until his retirement in September 2005, as president of the Americas of West Pharmaceutical Services, the leading manufacturer of elastomeric components and systems for injectable drug vials and disposable and pre-fillable syringes.

Tamotsu Adachi, Carlyle Managing Director and Head of the Japan Team, said, "We are pleased to have Herb with his successful track record in the industry and his proven leadership capability as a global CEO of The Qualicaps Group. He is expected to drive Qualicaps to a globally integrated group of companies. We are confident that Qualicaps’ innovativeness, top quality products, and impeccable customer service will allow it to further increase its presence in the international market."

"I am extremely pleased," said Mr. Hugill, "about joining The Qualicaps Group at this time in its developmental evolution following its acquisition by Carlyle. Qualicaps has been a leading supplier of two-piece hard gelatin capsules for more than 100 years. Now under The Carlyle Group it will be managed as a global enterprise where quality, service, innovation and value will be our mantra. I look forward to working with our board of directors and our employees and our customers from around the world to build on the proud heritage of The Qualicaps Group."

The Qualicaps Group, a leading capsule manufacturer since 1897, was originally part of Eli Lilly & Co. of Indianapolis. In 1965, Eli Lilly joined forces with Shionogi & Co, Ltd. to form Japan Elanco and expand their global capsule offerings. In 1992, Elanco became known as Shionogi Qualicaps following its complete acquisition by Shionogi & Co., Ltd. of Japan.