SOURCE: Recordati S.p.A.

July 28, 2006 10:38 ET

RECORDATI buys Jaba's pharmaceutical business in Portugal

MILANO (MI -- (MARKET WIRE) -- July 28, 2006 -- Milan, 28 July 2006 - Recordati has agreed to acquire Jaba Farmacêutica and the other pharmaceutical businesses belonging to the Grupo Jaba in Portugal. The purchase price is EUR 45 million approximately but may be adjusted contingent upon the full year 2006 operating results. The closing is expected to take place during 2006.

Founded in 1927, Jaba, the third largest Portuguese pharmaceutical group, has a significant market share and an extensive product portfolio covering a wide range of therapeutic areas. It includes prescription drugs sold under license as well as proprietary brands, plain generics, and a well-known line of OTC products. The business also includes modern production facilities which offer manufacturing services for third parties.

The acquired business, which is headquartered near Sintra, comprises an organization of around 330 employees, including more than 100 medical representatives, and generated revenues in 2005 of approximately EUR 39 million with positive margins.

"The agreement concluded with Jaba allows us to enter the Portuguese market directly and represents a further step in our strategy to expand our direct presence in the European pharmaceutical market", stated Giovanni Recordati, Chairman and CEO. "We intend to strengthen the product portfolio of our new subsidiary first of all by launching lercanidipine, our leading product, and over the medium term through the launch of our new pipeline products such as Zanitek®, a fixed combination of lercanidipine and enalapril for the treatment of hypertension, silodosin (a treatment for the symptoms of benign prostatic hyperplasia), stannsoporfin (indicated for the treatment of neonatal hyperbilirubinemia), Infasurf® (for the prevention and treatment of neonatal Respiratory Distress Syndrome) and others".

Recordati, established in 1926, is a European pharmaceutical group, listed on the Italian Stock Exchange (Reuters RECI.MI, Bloomberg REC IM, ISIN IT 0003828271), dedicated to the research, development, manufacturing and marketing of pharmaceuticals, with headquarters in Milan, Italy, operations in the main European countries, and a total staff of over 2,000. A European field force of over 1,000 medical representatives promotes a wide range of innovative pharmaceuticals, both proprietary and under license, in a number of therapeutic areas. Recordati's current and growing coverage of the European pharmaceutical market makes it a partner of choice for new product licenses from companies which do not have European marketing organizations. Recordati is committed to the research of new drug entities within the cardiovascular and urogenital therapeutic areas in which its research team has proven scientific competence and a track record of discovery and development of original drugs, the most recent of which, lercanidipine, a latest generation calcium channel blocker for the treatment of hypertension, is the company's leading product. Consolidated revenue for 2005 was EUR 576.1 million, operating income was EUR 111.1 million and net income was EUR 64.5 million.

For further information:

Recordati website:

Investor Relations

Marianne Tatschke



Claudio Rossetti (Echo Comunicazione d'Impresa)

(39)02 62694736


Statements contained in this release, other than historical facts, are "forward-looking statements" (as such term is defined in the Private Securities Litigation Reform Act of 1995). These statements are based on currently available information, on current best estimates, and on assumptions believed to be reasonable. This information, these estimates and assumptions may prove to be incomplete or erroneous, and involve numerous risks and uncertainties, beyond the Company's control. Hence, actual results may differ materially from those expressed or implied by such forward-looking statements.

All mentions and descriptions of Recordati products are intended solely as information on the general nature of the company's activities and are not intended to indicate the advisability of administering any product in any particular instance.

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