INAMED Reports Record Quarterly Sales of $114.6 Million

-- Second quarter 2005 sales were $114.6 million, an increase of 15%.

-- Second quarter 2005 diluted GAAP earnings per share were $0.56, including merger related expenses of $0.7 million or $0.02 per share.

-- Second quarter 2005 diluted Non-GAAP earnings per share were $0.58.

INAMED Corporation (NASDAQ:IMDC), a global health care company,today announced its financial results for the second quarter endedJune 30, 2005.

Financial Results

Total sales in the second quarter 2005 increased by 15% to $114.6million, up from $99.7 million for the second quarter 2004. DilutedGAAP earnings per share were $0.56 including expenses of $0.7 million,or $0.02 per share, related to the pending merger of the Company withMedicis Pharmaceutical Corporation.

Diluted Non-GAAP earnings per share were $0.58.

"INAMED had another outstanding quarter led by the continuedstrong growth and market acceptance of our LAP-BAND(R) System in theU.S. and the record sales in our breast aesthetics franchise," saidNick Teti, Chairman, President and Chief Executive Officer. "Sales forthe quarter of almost $115 million represented a record for thecompany. The excellent sales and financial performance in the quarterwas a result of the dedication, focus and commitment of INAMED'semployees around the world in all aspects of our business."

INAMED Sales

Total sales were $114.6 million in the second quarter 2005.

INAMED Health - Obesity Intervention

Worldwide sales of obesity intervention products in the secondquarter 2005 increased 41% over the second quarter 2004 to $29.7million. U.S. sales of the LAP-BAND(R) System were the primarycatalyst of this growth.

INAMED Aesthetics - Breast

Worldwide breast aesthetics products sales in the second quarter2005 were $64.5 million, representing a 13% increase over the sameperiod in 2004.

INAMED Aesthetics - Facial

Worldwide facial aesthetics product sales of $19.1 million weredown 7% compared to sales in the second quarter 2004. This decreasewas primarily due to lower sales of dermal filler products in the U.S.market.

-- Foreign Currency Effect

Foreign exchange favorably impacted sales during the secondquarter 2005 by approximately $1.0 million.

-- Gross Profit Margin and Selling, General and Administration Expenses ("SG&A")

Commencing January 1, 2005, the Company began expensing royaltiesas part of cost of goods and is no longer including them in SG&Aexpenses. The comparative numbers for the corresponding prior year'speriod have been reclassified to reflect this change.

-- Gross Profit Margin

The gross profit margin in the second quarter 2005 was 72.2%compared to 73.1% in the second quarter 2004. Excluding thereclassification of royalties in cost of goods sold, the gross profitmargin would have been 76.0% in the second quarter 2005 compared with74.8% in the same period 2004.

-- Selling, General and Administrative

For the second quarter 2005, SG&A expenses were $44.8 million or39% of sales, compared to $57.3 million or 57% of sales for the secondquarter 2004. Excluding the reclassification of royalties, the mergerrelated expenses of $0.7 million in second quarter 2005 and theEthicon settlement charge of $17.2 million in second quarter 2004, theSG&A expenses as a percentage of sales would have been 42% in thesecond quarter 2005, the same percentage as the second quarter 2004.

-- Research and Development

The research and development ("R&D") expense in the second quarter2005 was $11.0 million or 10% of sales compared to $6.6 million or 7%of sales in the second quarter 2004, an increase of 67%. The increasein R&D was due principally to the ongoing Reloxin(R) and Juvederm(TM)clinical programs in facial aesthetics as well as costs related tosustained activities in our silicone breast implant regulatoryprograms.

-- Income Taxes

The income tax expense in the second quarter 2005 was $6.7 millionrepresenting 25% of pre-tax income. Excluding the $0.7 million ofmerger-related expenses from pre-tax income, the income tax expensewould have been 24% of pre-tax income.

Conference Call

As previously announced, Inamed will host a conference call todayto discuss its second quarter 2005 results at 5:00 p.m. Eastern Time.Live audio of the conference call will be simultaneously broadcastover the Internet and will be available to members of the news media,investors and the general public by going to Inamed's website,www.Inamed.com. The event will be archived and available for replayfor seven days following the conference call.

Note Regarding Use of Non-GAAP Financial Measures

Certain of the information set forth herein, including dilutednon-GAAP earnings per share and certain of the cost of goods sold,selling, general and administrative expenses and income tax expensedata may be considered non-GAAP financial measures. Inamed believesthis information is useful to investors because it provides a basisfor measuring the Company's available capital resources, the operatingperformance of the Company's business and the Company's cash flow,excluding non-recurring items that would normally be included in themost directly comparable measures calculated and presented inaccordance with Generally Accepted Accounting Principles. TheCompany's management uses these non-GAAP financial measures along withthe most directly comparable GAAP financial measures in evaluating theCompany's operating performance, capital resources and cash flow.Non-GAAP financial measures should not be considered in isolationfrom, or as a substitute for, financial information presented incompliance with GAAP, and non-financial measures as reported by theCompany may not be comparable to similarly titled amounts reported byother companies.

About INAMED Corporation

Inamed (NASDAQ: IMDC) is a global healthcare company with over 25years of experience developing, manufacturing and marketinginnovative, high-quality, science-based products. Current productsinclude breast implants for aesthetic augmentation and forreconstructive surgery; a range of dermal products to treat facialwrinkles; and minimally invasive devices for obesity intervention,including the LAP-BAND(R) System for morbid obesity. The Company'swebsite is www.Inamed.com.

Forward-Looking Statements

This press release contains, in addition to historicalinformation, forward-looking statements. Such statements are based onmanagement's current estimates and expectations and are subject to anumber of uncertainties and risks that could cause actual results todiffer materially from those described in the forward-lookingstatements. Inamed is providing this information as of July 27, 2005and expressly disclaims any duty to update information contained inthis press release.

Forward-looking statements in this press release include, withoutlimitation, express and implied statements regarding Inamed'santicipated sales, operating results, expenses, cash flows, capitalexpenditures, research and development, product development andregulatory approvals. These forward-looking statements involve risksand uncertainties which could cause actual results to differmaterially from those expressed or implied here. Readers are referredto the documents filed by Inamed with the Securities and ExchangeCommission, specifically the most recent reports which identifyimportant risk factors that could cause actual results to differ fromthose contained in the forward-looking statements, including but notlimited to: exposure to product liability and intellectual propertyclaims; exposure to liabilities that may not be adequately covered byinsurance or for which there is no insurance; potential negativepublicity concerning product safety; the receipt of requiredregulatory approvals for the merger with Medicis PharmaceuticalCorporation (including the approval of antitrust authorities necessaryto complete the merger); the approval of the merger by thestockholders of Inamed and Medicis; potential fluctuations inquarterly and annual results; the effect of changing accounting andpublic reporting rules and regulations; volatility of Inamed's stockprice; changes in the economy and consumer spending; competition fromexisting and/or new products; failure or delay of clinical trials;uncertainty in receiving timely regulatory approval or marketacceptance for new products; dependence on a single supplier for eachof Inamed's silicone raw materials, bovine and human collagen-basedproducts, hyaluronic acid-based products, and botulinum toxin Type Aproducts; failure to protect Inamed's intellectual property; adversechanges in the regulatory or legislative environment (both in the U.S.and internationally) affecting our business; and failure of some orall of our collaborative partners to perform. The informationcontained in this press release is a statement of Inamed's presentintention, belief or expectation and is based upon, among otherthings, the existing regulatory environment, industry conditions,market conditions and prices, the economy in general and Inamed'sassumptions. Inamed may change its intention, belief or expectation,at any time and without notice, based upon any changes in suchfactors, in Inamed's assumptions or otherwise. Inamed undertakes noobligation to review or confirm analysts' expectations or estimates orto release publicly any revisions to any forward-looking statements toreflect events or circumstances after the date hereof or to reflectthe occurrence of unanticipated events.

By including any information in this press release, Inamed doesnot necessarily acknowledge that disclosure of such information isrequired by applicable law or that the information is material.
INAMED CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
(millions, except per share data)


Three Three
Months Months
Ended Ended
June June
30, 30,
2005 2004
------- -------
Net sales $114.6 $99.7
Cost of goods sold 31.8 26.8
------- -------
Gross profit 82.8 72.9
------- -------
Operating expenses:
Selling, general and administrative 44.8 57.3
Research and development 11.0 6.6
Restructuring charges (0.2) -
Amortization of intangible assets 1.4 1.3
------- -------
Total operating expenses 57.0 65.2
Operating income 25.8 7.7
Other income/(expense):
Net interest income/(expense) and debt costs 0.6 (0.1)
Foreign currency transaction losses (0.2) (0.4)
Royalty income and other 1.1 1.3
------- -------
Total other income 1.5 0.8
Income before income tax expense 27.3 8.5
Income tax expense/(benefit) 6.7 (1.3)
------- -------
Net income $20.6 $9.8
======= =======

Net income per share of common stock:
Basic EPS $0.57 $0.28
Diluted EPS $0.56 $0.27
Weighted average shares outstanding:
Basic 36.2 35.5
Diluted 36.6 36.0



Note: Certain items in prior year consolidated financials have
been reclassified to conform to current year presentation. The Company
has reclassified royalties from SG&A to Cost of Goods Sold.



INAMED CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
(millions, except per share data)


Six Six
Months Months
Ended Ended
June June
30, 30,
2005 2004
------- -------
Net sales $219.9 $190.5
Cost of goods sold 61.1 51.8
------- -------
Gross profit 158.8 138.7
------- -------
Operating expenses:
Selling, general and administrative 91.7 94.6
Research and development 20.8 11.9
Restructuring charges (0.7) (0.0)
Amortization of intangible assets 2.7 2.4
------- -------
Total operating expenses 114.5 108.9
Operating income 44.3 29.8
Other income/(expense):
Net interest income and debt costs 0.9 0.3
Foreign currency transaction losses (0.2) (0.2)
Royalty income and other 2.0 2.3
------- -------
Total other income, net 2.7 2.4
Income before income tax expense 47.0 32.2
Income tax expense 12.7 4.9
------- -------
Net income $34.3 $27.3
======= =======

Net income per share of common stock:
Basic EPS $0.95 $0.77
Diluted EPS $0.94 $0.76
Weighted average shares outstanding:
Basic 36.1 35.4
Diluted 36.5 35.9



Note: Certain items in prior year consolidated financials have
been reclassified to conform to current year presentation. The Company
has reclassified royalties from SG&A to Cost of Goods Sold.



INAMED CORPORATION AND SUBSIDIARIES
SALES BY PRODUCT LINE
(unaudited)
(millions)


Three Three
Months Months
Ended Ended Growth
June June Rates
30, 30,
2005 2004
------- ------- ------
Sales by product line
Breast aesthetics $64.5 $57.3 13 %
Health 29.7 21.1 41 %
Facial aesthetics 19.1 20.5 (7)%
Other (a) 1.3 0.8 63 %
------- ------- ------
Total $114.6 $99.7 15 %
======= ======= ======

------------------


(a) Other includes ongoing sales to other medical manufacturers
(principally sales of Contigen(R))




INAMED CORPORATION AND SUBSIDIARIES
SALES BY PRODUCT LINE
(unaudited)
(millions)


Six Six
Months Months
Ended Ended Growth
June June Rates
30, 30,
2005 2004
------- ------- ------
Sales by product line
Breast aesthetics $123.8 $110.2 12 %
Health 57.4 40.3 42 %
Facial aesthetics 36.6 37.9 (3)%
Other (a) 2.1 2.1 -
------- ------- ------
Total $219.9 $190.5 15 %
======= ======= ======

------------------


(a) Other includes ongoing sales to other medical manufacturers
(principally sales of Contigen(R))


INAMED CORPORATION AND SUBSIDIARIES
NON GAAP EARNINGS PER SHARE RECONCILIATION
(unaudited)
(millions, except per share data)


Three Six
Months Months
Ended Ended
June June
30, 30,
2005 2005
------- -------
Earnings for per share calculations
GAAP Net income $20.6 $34.3

Merger related expenses (included in selling,
general and administrative expenses) 0.7 6.0
Tax effect - -
------- -------
Non GAAP Net income $21.3 $40.3
======= =======

Earnings per share
GAAP Diluted EPS $0.56 $0.94
Merger related expenses 0.02 0.16
Tax effect - -
------- -------
Non GAAP Diluted EPS $0.58 $1.10
======= =======


NOTE: There is no tax benefit to the merger related expenses as
these expenses, under current tax regulations, are capitalizable.



INAMED CORPORATION AND SUBSIDIARIES
GROSS MARGIN AND SG&A RECONCILIATION
(unaudited)
(millions, except as indicated)



Gross Margin
Three Three
Months Months
Ended Ended
June June
30, 30,
2005 2004
------ -------

Gross margin $82.8 72.2% $72.9 73.1%

Royalties 4.3 3.7% 1.7 1.7%
------ ------ ------- -----

Gross margin excluding royalties $87.1 76.0% $74.6 74.8%
====== ====== ======= =====




Selling, general and administrative (SG&A)
Three Three
Months Months
Ended Ended
June June
30, 30,
2005 2004
------ -------

SG&A $44.8 39.1 % $57.3 57.5%

Add: Royalties 4.3 3.8 % 1.7 1.7%
------ ------ ------- ---

SG&A with Royalties 49.1 42.8 % 59.0 59.2%

Less: Merger related expenses 0.7 0.6 % - -

Less: Ethicon settlement in Q2 2004 - - 17.2 17.3%
------ ------ -----------
SG&A excluding reclassification of
royalties, merger related expenses and
Ethicon settlement $48.4 42.2% $41.8 41.9%
====== ====== ===========

INAMED CORPORATION AND SUBSIDIARIES
GROSS MARGIN AND SG&A RECONCILIATION
(unaudited)
(millions, except as indicated)



Gross Margin
Six Six
Months Months
Ended Ended
June June
30, 30,
2005 2004
------- -------

Gross margin $158.8 72.2% $138.7 72.8%

Royalties 8.0 3.6% 3.4 1.8%
------- ------ ------- ----

Gross margin excluding royalties $166.8 75.9% $142.1 74.6%
======= ====== ======= ====




Selling, general and administrative (SG&A)
Six Six
Months Months
Ended Ended
June June
30, 30,
2005 2004
------- -------

SG&A $91.7 41.7 % $94.6 49.7%

Add: Royalties 8.0 3.6 % 3.4 1.8%
------- ------ ------- ----

SG&A with Royalties 99.7 45.3 % 98.0 51.4%

Less: Merger related expenses 6.0 2.7 % - -

Less: Ethicon settlement in
Q2 2004 - - 17.2 9.0%
------- ------ ------- -----
SG&A excluding reclassification of
royalties, merger related expenses
and Ethicon settlement $93.7 42.6% $80.8 42.4%
======= ====== ======= =====


INAMED CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
(in millions)




June December
30, 31,
2005 2004
------- --------
Assets
----------
Current assets:
Cash and cash equivalents $81.2 $107.2
Short-term investments 68.2 23.1
Trade accounts receivable, net of
allowances of $19.0
and $18.7 in 2005 and 2004,
respectively 76.9 69.2
Inventories, net 59.7 56.0
Prepaid expenses and other current assets 22.9 23.7
------- --------
Total current assets 308.9 279.2

Property and equipment, net 60.4 62.5
Other assets 205.5 228.4

------- --------
Total Assets $574.8 $570.1
======= ========

Liabilities and Stockholders' Equity
-----------------------------------------------------
Current liabilities $78.9 $81.0
Non-current liabilities 16.7 42.8
Stockholders' equity 479.2 446.3

------- --------
Total Liabilities and Stockholders'
Equity $574.8 $570.1
======= ========