Ipsen's First Half 2007 Sales and Outlook for the Second Half 2007

Business Wire, August 1, 2007

* +7.6% growth in Group sales, +9.3% growth in volume sold

* Continued growth outside the Major Western European Countries: +16.2%

* Strong dynamics in specialist care products: +10.6%

* Sales outlook for the full year 2007 updated

PARIS -- Regulatory News:

Ipsen (Paris:IPN) reported today its sales for the second quarter and first half 2007.

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Note: From January 1, 2007, the Group reports its former "Other Drugs" sales in the Primary care sales in order to improve readability. This change has no impact on overall Group sales. "Other drugs" sales amounted to EU1.9 million for the second quarter 2007 compared with EU0.9 million a year ago. 2006 numbers are presented accordingly.

1 Active ingredients and raw materials

First half 2007 sales highlights

Consolidated Group sales reached EU463.2 million, up 7.6% year-on-year (or up 7.7% excluding foreign exchange impacts. This increase was fuelled by the strong growth of Somatuline([R]), NutropinAq([R]) and Dysport([R]), up 11.7%, 84.6% and 13.9% respectively over the period and by the strong performance of gastroenterology products in international markets, up 18.4% year-on-year. Excluding Ginkor Fort([R]), Group sales grew by 8.5% year-on-year.

Group sales grew by 7.6% year-on-year, despite price pressure negatively impacting Ipsen's consolidated sales by EU6.9 million, among which EU3.0 million on Decapeptyl([R]) in Italy, due to a combination of price cuts enforced by Health authorities and price erosions linked to higher hospital distribution.

Sales in the Major Western European countries amounted to EU283.0 million, up 2.7% year-on-year, driven by robust growth of Decapeptyl([R]) in Germany and of Dysport([R]) and Decapeptyl([R]) in the United Kingdom partially offset by negative price impacts in Italy and in France. Over the same period sales in this region represented 61.1% of total sales compared with 64.0% a year earlier. Sales generated in the Other European countries reached EU106.1 million, up 13.7% year-on-year. Over the same period, sales in this region represented 22.9% of total sales, against 21.7% a year earlier. Sales generated in the Rest of the World reached EU74.1 million, up 20.1% year-on-year, driven notably by strong sales of Somatuline([R]) in the Middle East and Australia, good performance of Dysport([R]) in Brazil and of Smecta([R]) in China. Over the same period, sales in this region represented 16.0% of total sales, against 14.3% a year earlier.

2007 outlook

The Group is pleased with its first half 2007 sales performance, and remains confident in its perspectives despite increased competition expected in the second half of 2007, notably in the area of cognitive disorders in France. Therefore, the Group retains its objective to grow its sales for the full year 2007 by 6.5% to 7.5% after taking into account the 10% price decrease implemented on 1 July 2007 on Tanakan([R]) in France. Its former objective, announced on 19 March 2007, did not include this price cut. Moreover, the Group reiterates its objective to grow its total revenues by 4.0 to 5.0% year-on-year.

The Group will update its operating margin objective when it releases its first half results on 29 August 2007.

These objectives were prepared without taking into account external growth assumptions, which may alter this outlook. These objectives are based on data and assumptions regarded as reasonable by the Group. These objectives depend on conditions or facts likely to happen in the future, and not exclusively on historical data. Actual results may differ significantly from these objectives given the occurrence of certain risks and uncertainties. The Group does not commit nor gives any guarantee that it will meet the objectives mentioned above.

About Ipsen

Ipsen is an innovation driven international specialty pharmaceutical group with over 20 products on the market and a total worldwide staff of nearly 4,000. The company's development strategy is based on a combination of products in specialist care areas (oncology, endocrinology and neuromuscular disorders) which are growth drivers, and primary care products which contribute significantly to its research financing. This strategy is also supported by an active policy of partnerships. The location of its four Research and Development centres (Paris, Boston, Barcelona, London) gives the Group a competitive edge in gaining access to leading university research teams and highly qualified personnel. In 2006, R&D expenditure was EU178.3 million, i.e. 20.7% of consolidated sales, which amounted to EU861.7 million while total revenues amounted to EU945.3 million (in IFRS). 700 people in R&D are dedicated to the discovery and development of innovative drugs for patient care. Ipsen's shares are traded on Segment A of Eurolist by Euronext(TM) (stock code: IPN, ISIN code: FR0010259150). Ipsen's shares are eligible to the "Syst[c]me a R[c]glement Differe" ("SRD") and the Group is part of the SBF 250 index. For more information on Ipsen, visit our website at www.ipsen.com.