INAMED Reports 17% Sales Growth for Third Quarter 2005

-- Third quarter 2005 sales were $105.2 million, an increase of 17%.

-- INAMED Health's sales were a record $35.5 million, an increase of 59%.

-- Third quarter 2005 diluted GAAP earnings per share were $0.41, including merger related expenses of $4.5 million or $0.12 per share.

-- Third quarter 2005 diluted non-GAAP earnings per share were $0.53.

INAMED Corporation (NASDAQ:IMDC), a global health care company,today announced its financial results for the third quarter endedSeptember 30, 2005.

Financial Results

Total sales in the third quarter 2005 increased by 17% to $105.2million, up from $90.0 million for the third quarter 2004. DilutedGAAP earnings per share were $0.41 including expenses of $4.5 million,or $0.12 per share, related to the pending merger of the Company withMedicis Pharmaceutical Corporation.

Diluted non-GAAP earnings per share were $0.53.

"Record sales of our LAP-BAND(R) System in the U.S. contributed toa high double-digit growth sales period for INAMED in the thirdquarter," said Nick Teti, Chairman, President and Chief ExecutiveOfficer. "Our solid operating performance during the quarterdemonstrates that the diverse, global platform that we have put inplace is continuing to drive positive results across the organization.As an example, the INAMED Health franchise, which is our highest grossmargin business, accounted for greater than one third of our sales inthe quarter."

-- INAMED Sales

Total sales were $105.2 million in the third quarter 2005.

INAMED Health - Obesity Intervention
Worldwide sales of obesity intervention products in the third quarter
2005 increased 59% over the third quarter 2004 to $35.5 million.

INAMED Aesthetics - Breast
Worldwide breast aesthetics products sales in the third quarter 2005
were $52.2 million, representing a 6% increase over the same period in
2004.

INAMED Aesthetics - Facial
Worldwide facial aesthetics product sales of $16.5 million were down
3% compared to sales in the third quarter 2004.

-- Foreign Currency Effect

Foreign exchange negatively impacted sales during the third quarter
2005 by approximately $0.2 million.

-- Gross Profit Margin and Selling, General and Administration
Expenses ("SG&A")

Commencing January 1, 2005, the Company began recording royalty
expense as part of cost of goods sold and is no longer including them
in SG&A expenses. The comparative numbers for the corresponding prior
year's period have been reclassified to reflect this change.

-- Gross Profit Margin

The gross profit margin in the third quarter 2005 was 72.2%
compared to 71.3% in the third quarter 2004. Excluding the
reclassification of royalties in cost of goods sold, the gross
profit margin would have been 76.5% in the third quarter 2005
compared with 74.9% in the same period 2004.

-- Selling, General and Administrative

For the third quarter 2005, SG&A expenses were $45.9 million
or 43.6% of sales, compared to $35.6 million or 39.6% of sales
for the third quarter 2004. Excluding the reclassification of
royalties and the merger related expenses of $4.5 million in
third quarter, the SG&A expenses as a percentage of sales
would have been 43.6% in the third quarter 2005, compared to
43.1% in the third quarter 2004.

-- Research and Development

The research and development ("R&D") expense in the third quarter 2005
was $9.1 million or 9% of sales compared to $7.2 million or 8% of
sales in the third quarter 2004, an increase of 26%. The increase in
R&D was due principally to the ongoing Reloxin(R) clinical program.

-- Income Taxes

The income tax expense in the third quarter 2005 was $6.3 million
representing 30% of pre-tax income. Excluding the $4.5 million of
merger-related expenses from pre-tax income, the income tax expense
would have been 24% of pre-tax income.

Conference Call

As previously announced, INAMED will host a conference call todayto discuss its third quarter 2005 results at 5:00 p.m. Eastern Time.Live audio of the conference call will be simultaneously broadcastover the Internet and will be available to members of the news media,investors and the general public by going to Inamed's website,www.Inamed.com. The event will be archived and available for replayfor fourteen days following the conference call.

Note Regarding Use of Non-GAAP Financial Measures

Certain of the information set forth herein, including dilutednon-GAAP earnings per share and certain of the cost of goods sold,selling, general and administrative expenses and income tax expensedata may be considered non-GAAP financial measures. Inamed believesthis information is useful to investors because it provides a basisfor measuring the Company's available capital resources, the operatingperformance of the Company's business and the Company's cash flow,excluding non-recurring items that would normally be included in themost directly comparable measures calculated and presented inaccordance with Generally Accepted Accounting Principles. TheCompany's management uses these non-GAAP financial measures along withthe most directly comparable GAAP financial measures in evaluating theCompany's operating performance, capital resources and cash flow.Non-GAAP financial measures should not be considered in isolationfrom, or as a substitute for, financial information presented incompliance with GAAP, and non-financial measures as reported by theCompany may not be comparable to similarly titled amounts reported byother companies.

About INAMED Corporation

Inamed (NASDAQ:IMDC) is a global healthcare company with over 25years of experience developing, manufacturing and marketinginnovative, high-quality, science-based products. Current productsinclude breast implants for aesthetic augmentation and forreconstructive surgery; a range of dermal products to treat facialwrinkles; and minimally invasive devices for obesity intervention,including the LAP-BAND(R) System for morbid obesity. The Company'swebsite is www.Inamed.com.

Forward-Looking Statements

This press release contains, in addition to historicalinformation, forward-looking statements. Such statements are based onmanagement's current estimates and expectations and are subject to anumber of uncertainties and risks that could cause actual results todiffer materially from those described in the forward-lookingstatements. Inamed is providing this information as of November 1,2005 and expressly disclaims any duty to update information containedin this press release.

Forward-looking statements in this press release include, withoutlimitation, express and implied statements regarding Inamed'santicipated sales, operating results, expenses, cash flows, capitalexpenditures, research and development, product development andregulatory approvals. These forward-looking statements involve risksand uncertainties which could cause actual results to differmaterially from those expressed or implied here. Readers are referredto the documents filed by Inamed with the Securities and ExchangeCommission, specifically the most recent reports which identifyimportant risk factors that could cause actual results to differ fromthose contained in the forward-looking statements, including but notlimited to: exposure to product liability and intellectual propertyclaims; exposure to liabilities that may not be adequately covered byinsurance or for which there is no insurance; potential negativepublicity concerning product safety; the receipt of requiredregulatory approvals for the merger with Medicis PharmaceuticalCorporation (including the approval of antitrust authorities necessaryto complete the merger); the approval of the merger by thestockholders of Inamed and Medicis; potential fluctuations inquarterly and annual results; the effect of changing accounting andpublic reporting rules and regulations; volatility of Inamed's stockprice; changes in the economy and consumer spending; competition fromexisting and/or new products; failure or delay of clinical trials;uncertainty in receiving timely regulatory approval or marketacceptance for new products; dependence on a single supplier for eachof Inamed's silicone raw materials, bovine and human collagen-basedproducts, hyaluronic acid-based products, and botulinum toxin Type Aproducts; failure to protect Inamed's intellectual property; adversechanges in the regulatory or legislative environment (both in the U.S.and internationally) affecting our business; and failure of some orall of our collaborative partners to perform. The informationcontained in this press release is a statement of Inamed's presentintention, belief or expectation and is based upon, among otherthings, the existing regulatory environment, industry conditions,market conditions and prices, the economy in general and Inamed'sassumptions. Inamed may change its intention, belief or expectation,at any time and without notice, based upon any changes in suchfactors, in Inamed's assumptions or otherwise. Inamed undertakes noobligation to review or confirm analysts' expectations or estimates orto release publicly any revisions to any forward-looking statements toreflect events or circumstances after the date hereof or to reflectthe occurrence of unanticipated events.

By including any information in this press release, Inamed doesnot necessarily acknowledge that disclosure of such information isrequired by applicable law or that the information is material.
INAMED CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
(millions, except per share data)

Three Months Three Months
Ended Ended
September 30, 2005 September 30, 2004
------------------ -------------------
Net sales $105.2 $90.0
Cost of goods sold 29.2 25.8
------------------ -------------------
Gross profit 76.0 64.2
------------------ -------------------
Operating expenses:
Selling, general and
administrative 45.9 35.6
Research and development 9.1 7.2
Amortization of intangible
assets 1.4 1.3
------------------ -------------------
Total operating expenses 56.4 44.1

Operating income 19.6 20.1

Other income/(expense):
Net interest income and debt
costs 0.9 0.1
Foreign currency transaction
(losses)/gains (0.1) 0.2
Royalty income and other 0.8 1.2
------------------ -------------------
Total other income, net 1.6 1.5

Income before income tax
expense 21.2 21.6
Income tax expense 6.3 4.8
------------------ -------------------
Net income $14.9 $16.8
================== ===================

Net income per share of common
stock:
Basic EPS $0.41 $0.47
Diluted EPS $0.41 $0.47

Weighted average shares
outstanding:
Basic 36.3 35.7
Diluted 36.8 36.0

Note: Certain items in prior year consolidated financials have
been reclassified to conform to current year presentation. The
Company has reclassified royalties from SG&A to Cost of Goods
Sold.


INAMED CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
(millions, except per share data)

Nine Months Nine Months
Ended Ended
September 30, 2005 September 30, 2004
------------------ ------------------
Net sales $325.1 $280.6
Cost of goods sold 90.3 77.7
------------------ ------------------
Gross profit 234.8 202.9
------------------ ------------------
Operating expenses:
Selling, general and
administrative 137.6 130.2
Research and development 29.9 19.1
Restructuring charges (0.7) -
Amortization of intangible
assets 4.0 3.7
------------------ ------------------
Total operating expenses 170.8 153.0

Operating income 64.0 49.9

Other income/(expense):
Net interest income and debt
costs 1.7 0.4
Foreign currency transaction
losses (0.3) -
Royalty income and other 2.8 3.5
------------------ ------------------
Total other income, net 4.2 3.9

Income before income tax expense 68.2 53.8
Income tax expense 19.0 9.6
------------------ ------------------
Net income $49.2 $44.2
================== ==================

Net income per share of common
stock:
Basic EPS $1.36 $1.25
Diluted EPS $1.34 $1.23

Weighted average shares
outstanding:
Basic 36.2 35.5
Diluted 36.6 35.9

Note: Certain items in prior year consolidated financials have
been reclassified to conform to current year presentation. The
Company has reclassified royalties from SG&A to Cost of Goods
Sold.


INAMED CORPORATION AND SUBSIDIARIES
SALES BY PRODUCT LINE
(unaudited)
(millions)

Three Months Three Months
Ended Ended Growth
September 30, 2005 September 30, 2004 Rates
------------------- ------------------ -------
Sales by product line
Breast aesthetics $52.2 $49.3 6 %
Health 35.5 22.2 59 %
Facial aesthetics 16.5 17.1 (3)%
Other (a) 1.0 1.4 (29)%
------------------- ------------------ ------
Total $105.2 $90.0 17 %
=================== ================== ======

(a) Other includes ongoing sales to other medical manufacturers
(principally sales of Contigen(R))


INAMED CORPORATION AND SUBSIDIARIES
SALES BY PRODUCT LINE
(unaudited)
(millions)

Nine Months Nine Months
Ended Ended Growth
September 30, 2005 September 30, 2004 Rates
------------------ ------------------ -------
Sales by product line
Breast aesthetics $176.0 $159.5 10 %
Health 92.8 62.6 48 %
Facial aesthetics 53.1 55.0 (3)%
Other (a) 3.2 3.5 (9)%
------------------ ------------------ ------
Total $325.1 $280.6 16 %
================== ================== ======

(a) Other includes ongoing sales to other medical manufacturers
(principally sales of Contigen(R))


INAMED CORPORATION AND SUBSIDIARIES
NON GAAP EARNINGS PER SHARE RECONCILIATION
(unaudited)
(millions, except per share data)

Three Months Nine Months
Ended Ended
September 30, 2005 September 30, 2005
------------------ ------------------
Earnings for per share
calculations
GAAP Net income $14.9 $49.2

Merger related expenses
(included in selling, general
and administrative expenses) 4.5 10.5

Tax effect - -

------------------ ------------------
Non GAAP Net income $19.4 $59.7
================== ==================

Earnings per share
GAAP Diluted EPS $0.41 $1.34
Merger related expenses 0.12 0.29
Tax effect - -

------------------ ------------------
Non GAAP Diluted EPS $0.53 $1.63
================== ==================

NOTE: There is no tax benefit to the merger related expenses as these
expenses, under current tax regulations, are capitalizable.


INAMED CORPORATION AND SUBSIDIARIES
GROSS MARGIN AND SG&A RECONCILIATION
(unaudited)
(millions, except as indicated)



Gross Margin
Three Months Three Months
Ended Ended
September 30, 2005 September 30, 2004
------------------ ------------------

Gross margin $76.0 72.2% $64.2 71.3%

Royalties 4.5 4.3% 3.2 3.6%
--------- -------- --------- --------

Gross margin excluding
royalties $80.5 76.5% $67.4 74.9%
========= ======== ========= ========


Selling, general and administrative (SG&A)

Three Months Three Months
Ended Ended
September 30, 2005 September 30, 2004
------------------ ------------------

SG&A $45.9 43.6 % $35.6 39.6 %

Add: Royalties 4.5 4.3 % 3.2 3.6 %
--------- -------- --------- --------

SG&A with Royalties 50.4 47.9 % 38.8 43.1 %

Less: Merger related expenses 4.5 4.3 % - -
--------- -------- --------- --------
SG&A excluding reclassification
of royalties and merger related
expenses $45.9 43.6% $38.8 43.1%
========= ======== ========= ========


INAMED CORPORATION AND SUBSIDIARIES
GROSS MARGIN AND SG&A RECONCILIATION
(unaudited)
(millions, except as indicated)

Gross Margin
Nine Months Nine Months
Ended Ended
September 30, 2005 September 30, 2004
------------------ ------------------

Gross margin $234.8 72.2% $202.9 72.3%

Royalties 12.5 3.9% 6.6 2.4%
----------- ------ --------- --------

Gross margin excluding royalties $247.3 76.1% $209.5 74.7%
=========== ====== ========= ========


Selling, general and administrative (SG&A)

Nine Months Nine Months
Ended Ended
September 30, 2005 September 30, 2004
------------------ ------------------

SG&A $137.6 42.3 % $130.2 46.4 %

Add: Royalties 12.5 3.9 % 6.6 2.4 %
----------- ------ --------- --------

SG&A with Royalties 150.1 46.2 % 136.8 48.8 %

Less: Merger related expenses 10.5 3.2 % - -

Less: Ethicon settlement in Q2
2004 - - 17.2 6.1 %
----------- ------ --------- --------
SG&A excluding reclassification
of royalties, merger related
expenses and Ethicon settlement $139.6 43.0% $119.6 42.7%
=========== ====== ========= ========


INAMED CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
(in millions)

September 30, December 31,
2005 2004
--------------- -------------
Assets
------
Current assets:
Cash and cash equivalents $115.5 $107.2
Short-term investments 62.7 23.1
Trade accounts receivable, net of
allowances of $17.7 and $18.7 in
2005 and 2004, respectively 76.6 69.2
Inventories, net 61.1 56.0
Prepaid expenses and other current
assets 25.8 23.7
--------------- -------------
Total current assets 341.7 279.2

Property and equipment, net 60.7 62.5
Other assets 206.6 228.4

--------------- -------------
Total Assets $609.0 $570.1
=============== =============

Liabilities and Stockholders' Equity
----------------------------------------
Current liabilities $92.2 $81.0
Non-current liabilities 17.3 42.8
Stockholders' equity 499.5 446.3

--------------- -------------
Total Liabilities and
Stockholders' Equity $609.0 $570.1
=============== =============