Andrx Corporation Reports Financial Results for 2006 First Quarter

Business Wire, May 4, 2006

Readers are cautioned not to place reliance on these forward-looking statements, which are valid only as of the date they were made. We undertake no obligation to update or revise any forward-looking statements to reflect new information or the occurrence of unanticipated events or otherwise, except as expressly required by law.

Additional Information and Where to Find It

This press release may be deemed to be solicitation material in respect of the proposed merger of Watson and Andrx. In connection with the proposed merger, Andrx intends to file relevant materials with the U.S. Securities and Exchange Commission (the "SEC"). In connection with the merger, on April 28, 2006, Andrx filed a preliminary proxy statement with the SEC. INVESTORS AND SECURITY HOLDERS OF ANDRX ARE URGED TO READ ANDRX'S PRELIMINARY PROXY STATEMENT AND THE DEFINITIVE PROXY STATEMENT WHEN IT BECOMES AVAILABLE. THE PRELIMINARY PROXY STATEMENT CONTAINS, AND THE DEFINITIVE PROXY STATEMENT WILL CONTAIN, IMPORTANT INFORMATION ABOUT ANDRX AND THE MERGER. The definitive proxy statement (when it becomes available) will be mailed to stockholders of Andrx. The preliminary proxy statement, the definitive proxy statement (when it becomes available) and other relevant materials (when they become available), and any other documents filed by Andrx with the SEC, may be obtained free of charge at the SEC's web site at http://www.sec.gov. In addition, investors and security holders may obtain free copies of the documents filed by Andrx with the SEC by directing a request to Andrx Corporation, 4955 Orange Drive, Davie, Florida 33314, Attention: Investor Relations.

Participants in Solicitation

Andrx and its directors, executive officers and other members of its management and employees may be deemed to be soliciting proxies from its stockholders in favor of the merger. Information regarding Andrx's directors and executive officers is available in Andrx's annual report on Form 10-K/A for the year ended December 31, 2005, which was filed with the SEC on May 1, 2006. Additional information regarding the interests of such potential participants is included in the preliminary proxy statement referred to above, and will be included in the definitive proxy statement and the other relevant documents filed with the SEC when they become available.

This release and additional information about Andrx Corporation is also available on the Internet at: http://www.andrx.com.

Andrx Corporation and Subsidiaries
       Unaudited Condensed Consolidated Statements of Operations
               (in thousands, except per share amounts)

                                                 Three Months Ended
                                                      March 31,
                                               -----------------------
                                                  2006        2005
                                               ----------- -----------
Revenues:
   Distributed products                        $  159,091  $  179,725
   Andrx products                                  68,515      92,414
   Licensing, royalties and other                  13,823       6,244
                                               ----------- -----------
      Total revenues                              241,429     278,383

Operating expenses:
   Cost of goods sold                             207,462     201,154
   Selling, general and administrative             43,401      62,753
   Research and development                        13,570      12,111
   Goodwill impairment charge                           -      26,316
                                               ----------- -----------
      Total operating expenses                    264,433     302,334
                                               ----------- -----------
      Loss from operations                        (23,004)    (23,951)
Other income (expense):
   Equity in earnings of unconsolidated joint
    ventures                                          676       1,024
   Interest income                                  3,893       1,606
   Interest expense                                     -        (686)
                                               ----------- -----------
      Loss before income taxes and cumulative
       effect of a change in accounting
       principle                                  (18,435)    (22,007)
Benefit for income taxes                           (6,434)    (57,344)
                                               ----------- -----------
      (Loss) income before cumulative effect of
       a change in accounting principle           (12,001)     35,337
Cumulative effect of a change in accounting
 principle, net of income taxes of $408               695           -
                                               ----------- -----------
      Net (loss) income                        $  (11,306) $   35,337
                                               =========== ===========

(Loss) earnings before cumulative effect of a
 change in accounting principle per share:
   Basic                                       $    (0.16) $     0.48
                                               =========== ===========

   Diluted                                     $    (0.16) $     0.48
                                               =========== ===========

(Loss) earnings per share:
   Basic                                       $    (0.15) $     0.48
                                               =========== ===========

   Diluted                                     $    (0.15) $     0.48
                                               =========== ===========

Weighted average shares of common stock
 outstanding:
   Basic                                           73,662      73,013
                                               =========== ===========

   Diluted                                         73,662      73,590
                                               =========== ===========