Watson Pharmaceuticals to Consolidate Solid Dosage Manufacturing Facilities

CORONA, Calif., Oct. 11 /PRNewswire-FirstCall/ -- Watson Pharmaceuticals, Inc. , a leading specialty pharmaceutical company, today announced its plan to consolidate certain of its solid dosage manufacturing operations, as part of an ongoing effort to optimize the Company's manufacturing operations.

Over the last several years, Watson has made significant improvements and enhancements to its solid dosage manufacturing facilities, creating the opportunity for its Carmel, NY and Corona, CA sites to absorb additional production volume. As a result, the Company plans to transfer manufacturing of products from its Humacao, Puerto Rico site to its Carmel, NY and Corona, CA sites and discontinue operations at the Puerto Rico facility over the next 18 to 24 months.

The Puerto Rico facility is one of three Watson solid dosage manufacturing sites that produce both brand and generic tablets and capsules. The facility was acquired in 2000 as part of Watson's acquisition of Schein Pharmaceutical, Inc. and employs approximately 315 employees.

In conjunction with the closure of the Puerto Rico facility, Watson expects to record an asset impairment charge in the fourth quarter of 2005, primarily related to the planned cessation of production at the facility. The Company is in the process of determining the amount of the charge and will provide further details at a future date.

Forward-Looking Statement

Any statements contained in this press release that refer to future events or other non-historical facts are forward-looking statements that reflect Watson's current perspective of existing trends and information as of the date of this release. Except as expressly required by law, Watson disclaims any intent or obligation to update these forward-looking statements. Actual results may differ materially from Watson's current expectations depending upon a number of factors affecting Watson's business. These factors include, among others, difficulties or delays in transferring product manufacturing from the Company's Puerto Rico site to its Carmel, NY and Corona, CA sites and obtaining FDA or other regulatory agency approvals of such transfers; successful compliance with FDA and other governmental regulations applicable to Watson's facilities, products and/or business; the impact of competitive products and pricing; market acceptance of and continued demand for Watson's products; and other risks and uncertainties detailed in Watson's periodic public filings with the Securities and Exchange Commission, including but not limited to Watson's Annual Report on Form 10-K for the year ended December 31, 2004 and Form 10-Q for the period ended June 30, 2005.