1. Cosmeceuticals (Medical Cosmetics) 2009. 11

2. Cosmeceuticals Cosmeceuticals represent the marriage of cosmetics and pharmaceuticals. Cosmeceuticals are cosmetic products with biologically active ingredients purporting to have medical or drug-like benefits. However, according to the United States Food and Drug Administration (FDA), the Food,Drug, and Cosmetic Act "does not recognize any such category as "cosmeceuticals." A product can be a drug, a cosmetic, or a combination of both, but the term "cosmeceutical" has no meaning under the law” ( ☞ wikipedia) Pharmaceutical Cosmetic Drug Cosmeceutical ? Quasi Drug (only Korea) - Acne - Antiseptic - Deodorant - Anti Hair Loss - Atopy(Korea) - Anti Wrinkle - Whitening - Sun Care Medical Cosmetics (Cosmedicals) / Doctor Cosmetics 醫藥外品 機能性化粧品 (Japan & Korea)

3. Market Trend Background The customer who visits dermatology and drug store with acne, atopy, and skin trouble is getting increased the number. The dermatology clinic and the drug store has extended its service for beauty care. Product development Developed product for skin cure and improvement expertly. Dermatologist participates in cosmetic development directly on base of the clinical skin test Prospect Extended distribution for expert dermatology and drug store functionally sale for expert knowledge and credit by dermatologist and pharmacist Extended sales network for department store, mass market, home shopping, and internet. Cosmeceuticals developed its effect and function by new active ingredients and formula through clinical skin test are extended its new area in cosmetic.

4. Competitors(in Korea) LG Life Science(Atoverol) Pacificpharm(Atobarrier) Ildong Pharmaceuticals(Vitaterol) Stiefel Korea(Revaleskin) La Roche-posay(Effaclar Duo) Galderma Korea(Cetaphil) Dermatologist Pharmaceutical Company Dermatologist develops a large variety of cosmetic, but pharmaceutical company develops specialized cosmetic and introduces the product to dermatology. Li-Ji-Ham Cosmetic(www.ljhmall.com) CNP Cha & Park Cosmetic(www.cnpmall.com) Esthemed(www.esthemed.co.kr) Leaders Cosmetic(www.leaderseshop.com) GoWunSeSang Cosmetic(www.gwssmall.co.kr) Dr, Jart(www.drjart.com) HamSoa(www.hamsoamall.co.kr) Neopharm(www.neopharmshop.co.kr)

5. Product Range & Active Ingredients Atopy Care : Ceramide, Anti-itching Agent Anti Aging & Anti Wrinkle : EGF, Coenzyme Q10, Peptide, Stem Cell (Human origin) Acne Care : Salicylic acid, Triclosan, (Pine pollen extract) Peeling : Chemical (Glycolic Acid), Enzyme (Papaya), Physical (Dermabrasion) Whitening : Arbutin, 3-ethoxy ascorbic acid, Glabridin, Broussonetia Extract, Niacinamide, α-Bisabolol, Aascorbyl glucoside, Ascorbyl tetraisopalmitate, (Vitamin C), Sun Care : Chemical Sun Screen Agent, Chemical Agent Free Sensitive Skin Care : Green / Natural / Organic, Free (Mineral Oil, Preservatives, Fragrance, Pigment etc) Anti Hair Loss : Korean Traditional Herb Extract