Watson Takes Another Step Toward Acquisition of Schein Pharmaceuticals

Watson Pharmaceuticals Inc. (Corona, CA) has completed its tender offer for Schein Pharmaceutical Inc. (Florham Park, NJ). Watson accepted or paid for more than 24 million shares of Schein common stock at $19.50 per share, and has received Notices of Guaranteed Delivery for an additional 1.5 million shares. The total 26,070,950 shares represent approximately 77.9% of the outstanding Schein shares.

In connection with the completion of the tender offer, Watson also paid off approximately $190 million in Schein outstanding bank debt.

Now that it has majority ownership of Schein, Watson plans to call a special meeting of the Schein stockholders to obtain approval of a merger of a Watson subsidiary into Schein. As a result of the merger, which is expected to close in September 2000, Schein will become a wholly owned subsidiary of Watson.

Watson Pharmaceuticals Inc. is engaged in the development, manufacture, and sale of proprietary and off-patent pharmaceutical products.

For more information: Watson Pharmaceuticals Inc., 311 Bonnie Circle, Corona, CA 91720. Tel: 909-270-1400. Fax: 909-270-1096.

Edited by Jim Pomager