FRX Forest Road Acquisition Corp

Forest Laboratories Reports Fiscal First Quarter Earnings of $.60 Per Share Company Raises FY05 EPS Guidance to $2.40-$2.50 NEW YORK, July 20 /PRNewswire-FirstCall/ -- Forest Laboratories, Inc. (NYSE:FRX), an international pharmaceutical manufacturer and marketer, today announced that diluted earnings per share equaled $.60 in the first quarter of fiscal 2005, an increase of 25% from the reported $.48 in last year's first quarter. Net sales for the quarter increased 29% to $782,396,000 from $605,748,000 in the prior year. Sales in the quarter included $624,925,000 for Forest's antidepressant franchise which was comprised of $363,872,000 of Lexapro(R) (escitalopram oxalate) and $261,053,000 of Celexa(R) (citalopram HBr). Lexapro sales were driven by increased prescription volume while Celexa sales were impacted by lower prescription volume which was more than offset by a higher average selling price. The average pricing on Celexa during the quarter was a result of a 4% price increase implemented in early March 2004, elimination of managed-care rebates and greater number of pills per Celexa prescription due to the larger proportion of Celexa prescriptions in the mail-order segment. Namenda(R), our NMDA receptor antagonist for the treatment of moderate to severe Alzheimer's disease, recorded sales of $57,368,000 during the quarter. (Logo: http://www.newscom.com/cgi-bin/prnh/20001011/FORESTLOGO) Net income in the current quarter increased 28% to $229,919,000 from $179,817,000 reported in the first quarter of the prior year. Selling, general and administrative expense increased 25% to $239,305,000 while research and development spending increased 60% to $85,283,000. Research and development spending included a one-time upfront payment to PAION GmbH for the U.S. and Canadian rights to desmoteplase, a compound being investigated for the treatment of acute ischemic stroke. Howard Solomon, Chairman and Chief Executive Officer of Forest, said: "Our three principal promoted products, Lexapro, Namenda and the angiotensin receptor blocker Benicar(R)*, which we co-promote with Sankyo Pharma., continued their strong performance during the quarter increasing their respective market shares in response to continued growth in physician acceptance and patient response. The underlying prescription growth rate of the overall antidepressant market continued to grow in line with our previous expectations and we are encouraged by the strong prescription growth rates in the underlying markets for Namenda and Benicar." Mr. Solomon continued: "Our strong financial performance this quarter will allow us to modify our earnings per share guidance for the fiscal year ending March 31, 2005 by increasing the lower end of our range from $2.35 to $2.40 while maintaining the upper end at $2.50." Forest will host a conference call at 10:00 AM EDT today to discuss the results. The conference call will be webcast live beginning at 10:00 AM EDT on the Company's website at http://www.frx.com/ and also on the website http://www.streetevents.com/. Please log on to either website at least fifteen minutes prior to the conference call as it may be necessary to download software to access the call. A replay of the conference call will be available until July 30, 2004 at both websites and also by dialing (800) 642- 1687 (US or Canada) or +1 706 645-9291 (International). Conference ID: 8687994. Except for historical information contained herein, this release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to risks and uncertainties that affect our business, including risk factors listed from time to time in the Company's SEC reports, including the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2004. Actual results may differ materially from those projected. * Benicar is a registered trademark of Sankyo Pharma. FOREST LABORATORIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF INCOME (Unaudited) THREE MONTHS ENDED JUNE 30 (In thousands, except per share amounts) 2004 2003 Revenues: Net sales $782,396 $605,748 Other income 10,430 8,681 Net revenues 792,826 614,429 Costs and expenses: Cost of goods sold 177,201 140,668 Selling, general and administrative 239,305 191,494 Research and development 85,283 53,347 501,789 385,509 Income before income tax expense 291,037 228,920 Income tax expense 61,118 49,103 Net income $229,919 $179,817 Net income per common and common equivalent share: Basic $0.62 $0.49 Diluted $0.60 $0.48 Weighted average number of common and common equivalent shares outstanding: Basic 369,796 364,098 Diluted 380,943 376,803 http://www.newscom.com/cgi-bin/prnh/20001011/FORESTLOGODATASOURCE: Forest Laboratories, Inc. CONTACT: Charles E. Triano, Vice President - Investor Relations of Forest Laboratories, Inc., +1-212-224-6714, or Web site: http://www.streetevents.com/ http://www.frx.com/

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