Picoliter Inc. and Hosokawa Micron Group

Enter into Licensing Agreement

March 18, 2002
MOUNTAIN VIEW, California, and OSAKA, Japan
MOUNTAIN VIEW, California, and OSAKA, Japan, March 18—Picoliter Inc. and Hosokawa Micron Group announced today that they have entered into an agreement whereby Hosokawa Micron will explore development and commercialization of the PicoliterTM proprietary fluidics technology for pharmaceutical production. Terms of the agreement include technology transfer fees to be paid by Hosokawa for the initial R&D stage of the relationship, and license fees and royalties to be paid by Hosokawa for future products and technology commercialized by Hosokawa.  In return, Hosokawa will gain access to PicoliterTM technology for pharmaceutical preparation applications as identified, protected and developed by Hosokawa. 

Picoliter will transfer specific technology and know-how to Hosokawa, and will provide on-going technical support to assist Hosokawa in the development of products for the target applications. Hosokawa will leverage its engineering capability and extensive industry contacts to identify, develop and commercialize products.

``Hosokawa is a highly respected leader in particle manufacturing equipment, and has a proven record of commercializing products for high value applications.” said Dr. Elaine J. Heron, Chairman and CEO of Picoliter Inc., adding, “We are extremely delighted to be working with the Hosokawa team on the development of our technology for such an important and valuable field, and will explore opportunities to expand the relationship with future success''.

``Picoliter Inc. is a prime example of a young company that understands the value of a partnership with a leading and established business in an area complementary to its core market.     We believe their technology has a unique set of attributes ideally suited for the specific applications that our team has identified.   We are confident of the capabilities of their people and look forward to a fruitful venture.” said Mr. Y. Hosokawa, Co-Chairman of Hosokawa Micron Group.

About Hosokawa Micron
Hosokawa Micron Group, headquartered in Osaka Japan, with global organization of 1920 employees, R&D and production facilities worldwide, is the leading global company in the field of powder technologies to provide a comprehensive range of powder and particle processing technologies, software and process system engineering for a wide range of industries worldwide, and has been making an extensive contribution to the development of powder technological and scientific societies.  Its brand names include Alpine, Bepex, Mikro, Vireco-Nauta, Stott, Vitalair, Rietz, and Micron. Hosokawa is also a pioneer for the creation of ultra fine composite material as a new advanced material to electronic, magnetic, imaging, battery, plastics, chemicals and pharmaceutical industries. Hosokawa is listed on the Tokyo and Osaka stock exchanges.  For more information on Hosokawa Micron Group, please visit the company's Web site at www.hosokawa.com.

About Picoliter Inc.
Picoliter Inc. is a development stage company located in Mountain View, CA.  The company is based on a technology for manipulating and moving small amounts of liquid using ultrasound energy. The PicoliterTM technology has broad application in the life science tools market to include microarrays, liquid handling/dispensing equipment, and living cell transfer devices.  For more information on Picoliter Inc., contact business development at 650-940-4578.

For Hosokawa Only:
Certain statements in this press release are forward-looking and involve risks and uncertainties. These may be identified by the use of forward-looking words or phrases such as ``believe,'' ``expect,'' ``intend,'' ``anticipate,'' ``should,'' ``planned,'' ``forecast,'' ``estimated,'' and ``potential,'' among others. These forward-looking statements are based on Hosokawa’s current expectations. The Private Securities Litigation Reform Act of 1995 provides a ``safe harbor'' for such forward-looking statements. In order to comply with the terms of the safe harbor, Hosokawa notes that a variety of factors could cause actual results and experience to differ materially from the anticipated results or other expectations expressed in such forward-looking statements. The risks and uncertainties that may affect the operations, performance, development, and results of Hosokawa businesses include but are not limited to
(1) market acceptance of Hosokawa’s products and services;
(2) uncertainties relating to the pace, quality or number of discoveries of new materials;
(3) the dependence on collaborators to successfully commercialize products;
(4) uncertainties of patent protection and litigation;
(5) future growth strategy;
(6) general economic conditions in the United States and in major European and Asian markets;
(7) natural disasters, power failures and other disasters;
(8) and other factors that might be described from time to time in Hosokawa’s filings with the Securities and Exchange Commission or other national securities reporting agencies.