Biovail Announces $27.6-Million Expansion to Steinbach, Manitoba Manuf

    Business Editors/Health/Medical Writers

    TORONTO--(BUSINESS WIRE)--Feb. 22, 2005--Biovail Corporation (NYSE:BVF)(TSX:BVF) today announced a $27.6-million expansion project to further enhance the manufacturing capability of the Company's largest manufacturing facility located in Steinbach, Manitoba, 70 kilometres southeast of Winnipeg.
    The formal announcement was made today by Biovail Chief Executive Officer Dr. Douglas Squires and Manitoba Premier Gary Doer at a news conference in Steinbach.
    "The success and increased productivity that we have enjoyed in recent years at Steinbach has - and will continue to be - a testament to the commitment, dedication and hard work of those who work here," said Dr. Squires. "As a result, changes are required to fully capitalize on opportunities borne from our success. The expansion announced today for Steinbach will enable Biovail to optimize the current capacity with a focus on world-class manufacturing performance, as well as to meet growing demand and opportunities.
    "Furthermore, we believe this expansion will enhance Biovail's ability to attract and retain talented people by fortifying our reputation as an 'employer of choice'."
    Manitoba Premier Gary Doer praised Biovail for its role as one of the province's leading corporate citizens.
    "Manitoba has made significant strides in the last few years to position its life sciences industry on the international stage. According to Ernst & Young Resurgence: Global Biotechnology Report 2004, Manitoba has the fastest growing sector in Canada, and we are thrilled with this announcement of Biovail's commitment to make their Manitoba manufacturing site one of the most advanced pharmaceutical manufacturing sites in the world."
    John Sebben, Vice-President, Global Manufacturing at Biovail, said the Company believes that the planned improvements will support Steinbach, which opened in 1992, to be in a position to contribute to the launch of products in Biovail's product-development pipeline.
    "Biovail's expansion to the Steinbach facility in 2002 reflected an investment of almost $45 million in facility and equipment," Mr. Sebben points out. "Since then, demand for our products, including GlaxoSmithKline's Wellbutrin(R) XL, has exceeded Biovail's expectations - and the expectations of its customers. With the ensuing increases in output - and given our projected demand for new products - we are investing a further $27.6 million in facility enhancements and equipment."

    Commitment to Manitoba

    In making today's announcement, Dr. Squires also pointed to Biovail's strong ongoing relationship with the Province of Manitoba as a key factor for the company's continuing investment in Steinbach.
    "The Province of Manitoba has proven to be an excellent partner with which to do business for Biovail. Our relationship with the province has played a pivotal role in enabling us to become one of the largest employers in the health-sciences sector in Manitoba."
    Construction on the Steinbach expansion project, which is expected to begin this Spring, will include the addition of about 75,000 square feet, bringing the total to 220,000 square feet. Most areas of the site will be favorably impacted, including manufacturing, packaging, warehouse, laboratory operations and office space. Other upgrades include larger locker room and cafeteria facilities, as well as a fitness centre - all intended to enhance the quality of life of employees. Biovail expects the work to be completed in late 2006.

    Third Significant Enhancement

    Mr. Sebben added that the expansion project announced today is the third significant enhancement initiative for Steinbach in the past four years.
    "In mid-2003, 40,000 square feet of space was added to the facility, which is now being used to produce Wellbutrin(R) XL," Mr. Sebben pointed out. "The operation has also been staffed to meet the demand for Cardizem(R) LA and, subject to final approval from the United States Food and Drug Administration, a once-daily formulation of tramadol. As a result, total staff in the past 18 months has almost doubled to 550.
    "As might be expected, our recent growth is again straining our infrastructure. This expansion will address that, and will also give us the opportunity make additional enhancements to make our operations even more efficient."
    Mr. Sebben also said he anticipates the expansion project announced today to result in the creation of up to 40 skilled positions. The creation of additional jobs will be closely tied to volume mandates for current and new products, he added.

    About Biovail Manufacturing

    Biovail operates full-scale manufacturing facilities in Steinbach, and sites in Carolina and Dorado in Puerto Rico. These world-class pharmaceutical facilities, which currently total more than 310,000 square feet, provide Biovail with the capacity to meet the current and anticipated demand for a portfolio of products, including Wellbutrin(R) XL, Cardizem(R) LA and Tiazac(R) XC, among others, as well as a once-daily tramadol and other numerous pipeline products currently under development. Total combined output for these sites reached 1.6 billion dosage units in 2004, compared with one billion units in 2003. These facilities also have the capacity and available land to further expand to meet the near term future needs of Biovail - and those of its partners.

    About Biovail Corporation

    Biovail Corporation is an international full-service pharmaceutical company, engaged in the formulation, clinical testing, registration, manufacture, sale and promotion of pharmaceutical products utilizing advanced drug-delivery technologies. For more information about Biovail, visit the company's Web site at www.biovail.com.
    For further information, please contact Ken Howling at 905-286-3000 or send inquiries to ir@biovail.com.

    "Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995

    To the extent any statements made in this release contain information that is not historical, these statements are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. We have based these forward-looking statements on our current expectations and projections about future events. Our actual results could differ materially from those discussed in, or implied by, these forward-looking statements. Forward-looking statements are identified by words such as "believe", "anticipate", "expect", "intend", "plan", "will", "may" and other similar expressions. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements. Forward-looking statements include, but are not necessarily limited to, risks and uncertainties, including the difficulty of predicting U.S. Food and Drug Administration ("FDA") and Canadian Therapeutic Products Directorate ("TPD") approvals, acceptance and demand for new pharmaceutical products, the impact of competitive products and pricing, new product development and launch, reliance on key strategic alliances, availability of raw materials and finished products, third parties, the regulatory environment, fluctuations in operating results and other risks detailed from time to time in the company's filings with the Securities and Exchange Commission ("SEC") and the Ontario Securities Commission ("OSC"). Biovail Corporation undertakes no obligation to update or revise any forward-looking statement.

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CONTACT: Biovail Corporation Kenneth G. Howling, 905-286-3000

KEYWORD: NEW YORK INTERNATIONAL CANADA INDUSTRY KEYWORD: PHARMACEUTICAL MEDICAL BIOTECHNOLOGY SOURCE: Biovail Corporation

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