Recordati S.p.A. : reports revenue and earnings in the first nine months 2008

Market Wire, October, 2008

RECORDATI REPORTS REVENUE AND EARNINGS GROWTH IN THE FIRST NINE MONTHS 2008

- Consolidated revenue EUR 508.2 million, + 9.0%.

- Pharmaceutical revenue EUR 485.0 million, + 10.1%.

- International sales EUR 352.5 million (69.4% of total sales), + 12.5%.

- Operating income EUR 111.3 million, + 10.3%.

- Net income EUR 76.6 million, + 19.6%.

- Net financial position*: net debt of EUR 43.5 million.

- Acquisition of FIC and FIC Médical present in Russia and other C.I.S. countries.

- MRP for approval of lercanidipine+enalapril fixed combination in Europe completed.

- Sale of Jaba Recordati's production business in Portugal.

- Subsequent events: European license for pitavastatin, novel anti- cholesterol drug, obtained.

Acquisition of Yeni Ilaç in Turkey.

- Presentation of 2009-2011business plan announced for 18 December.

Milan, 29 October 2008 - The Board of Directors of Recordati S.p.A. approved the first nine months 2008 financial report which was prepared pursuant to Article 154-ter of Legislative Decree 58/1998 and is consistent with applicable international financial accounting standards adopted by the European Union in EC Regulation 1606/2002 issued by the European Parliament and the Council of the European Union on 19 July 2002 - in particular, the requirements of IAS 34: Interim Reporting.

First nine months financial highlights

- In the first nine months 2008 consolidated revenue is EUR 508.2 million, an increase of 9.0% over the same period of the preceding year. Pharmaceutical sales are EUR 485.0 million, an increase of 10.1% and include the Orphan Europe group of companies acquired at the end of 2007. The growth is to be attributed to international sales which are up 16.5% while sales in Italy are down by 2.0% due to a negative price effect. Pharmaceutical chemicals sales are EUR 23.2 million, down by 10.8%.

- Operating income, at 21.9% of sales, is EUR 111.3 million, an increase of 10.3% over the first nine months of the preceding year. Gross margin reached 68.2% of sales due to a favourable product mix.

- Net income is EUR 76.6 million, an increase of 19.6% more than the increase in operating income thanks to a lower tax rate.

- The net financial position* at 30 September 2008 is a net debt of EUR 43.5 million, a reduction of EUR 53.6 million as compared to the net debt position at 31 December 2007. Shareholders' equity further increased and is EUR 426.2 million.

* Cash and short-term financial investments net of bank overdrafts and medium/long-term loans which include the measurement at fair value of hedging derivatives (fair value hedge).

Business development news

- During January an exclusive license agreement was signed with a subsidiary of Watson Pharmaceuticals, Inc. a U.S. pharmaceutical company, for the marketing and sale in 29 European countries of Kentera®, a bi- weekly oxybutynin transdermal patch indicated for the symptomatic treatment of urge incontinence and/or increased urinary frequency and urgency as may occur in patients. Kentera® is on the market in a number of countries. The acquisition of Kentera® reinforces Recordati's focus in the urology area where it is developing silodosin, indicated for the treatment of benign prostate hypertrophy, due for filing in Europe in the fourth quarter of 2008.

- In February a semi-exclusive licensing agreement was entered into with Menarini, the leading Italian pharmaceutical group, for the marketing and sales of frovatriptan, a medicine belonging to the triptan group of drugs indicated for the acute treatment of migraine attacks with or without aura, in France and Greece. Frovatriptan is a selective 5HT1B/1D receptor agonist. Frovatriptan is distinguished from other triptans by its long half- life (26 hours) which ensures long-lasting clinical efficacy and reduces the recurrence rate of migraine attacks. The product is already approved in the licensed markets and is sold there by Menarini under a different brand. Recordati launched its own brand in France in September while the launch in Greece is expected to take place at the beginning of 2009.

- In March the French companies FIC and FIC Médical which are dedicated to the registration and the promotion of pharmaceutical products on behalf of third party companies in Russia and other Commonwealth of Independent States (C.I.S.) countries were acquired. FIC Médical, headquartered in Paris, is present in Russia, Ukraine, Kazakhstan, Belarus, Azerbaijan, Georgia and Armenia. The company's business is carried out by around 200 people, of which 150 are medical representatives. The price of the acquisition is EUR 12 million, of which EUR 9 million were paid upon signing the agreement while EUR 3 million are due over a period of three years contingent upon certain conditions. FIC Médical's organization will be the base upon which Recordati will develop its own presence in Russia and in the C.I.S. markets, driven, among others, by the enhancement of the product portfolio through the launch of its new original products.