Barr Files Formal Tender Offer for PLIVA d.d. With HANFA

WOODCLIFF LAKE, N.J., July 28 /PRNewswire-FirstCall/ -- Barr Pharmaceuticals, Inc. today announced that its European subsidiary has officially filed a tender offer with the Croatian Financial Services Supervisory Agency (HANFA) to purchase 100% of the shares of PLIVA d.d. , based in Zagreb, Croatia. In accordance with Croatian takeover law and HANFA instructions, Barr is prohibited from discussing the amount and specifics of its bid until HANFA approval is received and Barr formally publishes the terms of its bid in Croatian media. Under Croatian law HANFA has 14 days to review the Company's submission, but could take an additional 30 days at its discretion. HANFA is responsible for ensuring that all formal tender offers comply with all aspects of Croatian takeover law, including ensuring that there is adequate financing to support a submitted bid.

On July 24, 2006, the Company announced that it is prepared to satisfy any requirements that the U.S. Federal Trade Commission (FTC) might impose regarding its proposed tender offer to purchase 100% of the shares of PLIVA. Consequently, the Company has not included any condition relating to FTC approval in the formal tender offer. The Company has been notified that its regulatory filings in Germany and Slovenia have received approval and it expects to receive final regulatory approval in all jurisdictions prior to an anticipated closing of the tender offer later this year.

The Company's ability to close its tender offer is only conditioned upon Barr receiving acceptances that result in the Company holding more than 50% of PLIVA shares.

"We continue to believe that the combination of PLIVA and Barr would create a leading pharmaceutical company that will be well positioned to generate long-term value for shareholders, employees, the people of Croatia, and our customers throughout the world," said Bruce L. Downey, Barr's Chairman and Chief Executive Officer. "Once our approval is received, and our formal bid published, we are committed to communicating the benefits of the combination of PLIVA and Barr to all shareholders through company press releases, however, we intend to comply with HANFA's request that bidders not communicate to shareholders individually between now and the closing of the tender offer."

"As we have repeatedly stated since announcing our intentions to bring Barr and PLIVA together into a single, global company, we believe that the combination of Barr and PLIVA represents a venture of extraordinary potential and that the benefits of this combination will only increase over time," Downey continued. "The combination represents an exceptional opportunity to combine two largely complementary product portfolios and R&D capabilities. It will create a leader with a broad portfolio of solid oral dosage forms, extended and delayed release products, injectables, creams/ointments and biopharmaceutical products. The new company will also benefit from the capabilities of PLIVA's active pharmaceutical ingredients operations, and its solid position in the emerging arena of generic biopharmaceuticals. The combined company will benefit from PLIVA's historical strength as a Croatian-based pharmaceutical leader."

"The PLIVA name and Croatian-based operations will become the headquarters for the European operations of the combined company, and the European facilities will offer Barr the opportunity to move manufacturing of select products to Croatia, increasing both production and employment at the Croatian and other European facilities, and enabling the combined company to benefit from lower cost of manufacturing at these sites," Downey continued. "The European headquarters will also coordinate the introduction of Barr products into the European market, where PLIVA is strong and has the expertise necessary for success. We also intend to invest significantly in research and development and manufacturing facilities to ensure a steady stream of new products, and the production capacity to support them. At the same time, Barr's marketing and regulatory expertise will make it possible to successfully bring additional PLIVA products into the United States. The strengths of PLIVA, the talent of its people, its capabilities and management team are critical to the success of this business combination, and we are committed to maximizing and expanding these strengths."

About PLIVA d.d.

PLIVA, established in 1921, is a global generic pharmaceutical company with operations in more than 30 countries worldwide. It is the leading pharmaceutical company based in Central and Eastern Europe (CEE) and has been listed on the Zagreb and London Stock Exchanges since 1996. PLIVA specializes in the development, production and distribution of generic pharmaceutical products, including biologicals, cytostatics, and other value-added generics, as well as active pharmaceutical ingredients.

About Barr Pharmaceuticals, Inc.

Barr Pharmaceuticals, Inc., a holding company that operates through its principal subsidiaries, Barr Laboratories, Inc. and Duramed Pharmaceuticals, Inc., is engaged in the development, manufacture and marketing of generic and proprietary pharmaceuticals.

This announcement does not constitute an offer to sell or invitation to purchase any securities or the solicitation of any vote for approval in any jurisdiction, nor shall there be any sale, issue or transfer of the securities referred to in this announcement in any jurisdiction in contravention of applicable law.

Forward-Looking Statements

Except for the historical information contained herein, the statements made in this press release constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements can be identified by their use of words such as "expects," "plans," "projects," "will," "may," "anticipates," "believes," "should," "intends," "estimates" and other words of similar meaning. Because such statements inherently involve risks and uncertainties that cannot be predicted or quantified, actual results may differ materially from those expressed or implied by such forward-looking statements depending upon a number of factors affecting the Company's business. These factors include, among others: the difficulty in predicting the timing and outcome of legal proceedings, including patent-related matters such as patent challenge settlements and patent infringement cases; the outcome of litigation arising from challenging the validity or non-infringement of patents covering our products; the difficulty of predicting the timing of FDA approvals; court and FDA decisions on exclusivity periods; the ability of competitors to extend exclusivity periods for their products; our ability to complete product development activities in the timeframes and for the costs we expect; market and customer acceptance and demand for our pharmaceutical products; our dependence on revenues from significant customers; reimbursement policies of third party payors; our dependence on revenues from significant products; the use of estimates in the preparation of our financial statements; the impact of competitive products and pricing on products, including the launch of authorized generics; the ability to launch new products in the timeframes we expect; the availability of raw materials; the availability of any product we purchase and sell as a distributor; the regulatory environment; our exposure to product liability and other lawsuits and contingencies; the increasing cost of insurance and the availability of product liability insurance coverage; our timely and successful completion of strategic initiatives, including integrating companies and products we acquire and implementing our new enterprise resource planning system; fluctuations in operating results, including the effects on such results from spending for research and development, sales and marketing activities and patent challenge activities; the inherent uncertainty associated with financial projections; changes in generally accepted accounting principles; and other risks detailed from time-to-time in our filings with the Securities and Exchange Commission, including in our Annual Report on Form 10-K for the fiscal year ended June 30, 2005.

The forward-looking statements contained in this press release speak only as of the date the statement was made. The Company undertakes no obligation (nor does it intend) to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required under applicable law.

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