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Perrigo is a leading global consumer-focused self-care company. Our vision is to make lives better by bringing “Quality, Affordable Self-Care Products” that consumers trust everywhere they are sold. The Company is a leading provider of health and wellness solutions that enhance individual well-being by empowering consumers to proactively prevent or treat conditions that can be self-managed.

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Perrigo Company Reports First Quarter Fiscal 2001 Earnings of $0.14 Per Share

The Perrigo Company (NASDAQ: PRGO) today announced results for the first quarter of fiscal year 2001 ended September 30, 2000.

On a proforma basis, which reflects the ongoing over-the-counter (OTC) pharmaceutical and nutritional lines of business, first quarter sales were $193.3 million, a one percent decrease from last year's $194.5 million. The flat year-over-year sales were due to lower vitamin volume and a difficult sales comparison to the successful rollout last year of the Company's nicotine patch product. Including one month's results of the personal care business, which was divested in August 1999, net sales reported for last year's first quarter were $212.3 million, or $0.14 per share, as reported last year. On a proforma basis, excluding personal care results for one month, earnings last year were an estimated $0.13 per share.

"I am pleased to report a good start to fiscal 2001 with solid financial results in our first quarter. During the quarter, we continued our focus on investing for growth, strengthening operations and controlling expenses," stated Perrigo's President and Chief Executive Officer, David T. Gibbons. "I am also pleased with the further strengthening of our balance sheet. Our financial position today is excellent, reflecting the initiatives taken last year to reduce our working capital position. I am confident our balance sheet will continue to be a positive for Perrigo throughout fiscal 2001."

Douglas R. Schrank, Executive Vice President and Chief Financial Officer, noted, "On a proforma basis, gross profit in the quarter approximated a year ago, while operating expense increased slightly due to higher research and development and administrative costs. Management of working capital exceeded expectations as inventories remained in check, receivables were up seasonally and payables were also up as anticipated. Cash flow, including the receipt of a $16 million income tax refund, was very strong at $32.6 million. Our strong cash flow has helped us retire our long-term debt going in to this year and we expect excellent cash flow through the balance of fiscal 2001.

"Based on our current expectations, we expect our forecasted earnings for the fiscal 2001 second quarter to be in a range of $0.14 to $0.16 per share. For the full year ending June 30, 2001, we expect earnings to be in a range of $0.42 to $0.46 per share."

Perrigo will host a conference call to discuss first quarter 2001 results at 11 a.m. (EDT) today. The call and replay will be available via webcast on the Company's web site at . The conference call may also be accessed by phone on a listen-only basis by calling 888-400-7918 and asking for Perrigo's first quarter review. A taped replay of the call will be available beginning at approximately 2:30 p.m. (EDT) Wednesday, October 25. To listen to the replay, call 800-475-6701 (outside the United States, call 320-365-3844) and enter the access number 545192.

Perrigo Company is the nation's largest manufacturer of over-the-counter (non-prescription) pharmaceutical and nutritional products for the store brand market. Store brand products are sold by national and regional supermarket, drugstore and mass merchandise chains under their own labels and compete with nationally advertised brands. The Company's products include over-the-counter pharmaceuticals, such as analgesics, cough and cold remedies, antacids, laxatives, feminine hygiene and smoking cessation products, and nutritional products, such as vitamins, nutritional supplements and nutritional drinks. Visit Perrigo on the Internet at .

Note: Certain statements in this press release are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended and are subject to the safe harbor created thereby. Please refer to pages 23-27 of the Company's Form 10-K for the year ended July 1, 2000 for a discussion of certain important factors that relate to forward- looking statements contained in this press release. Although the Company believes that the expectations reflected in any such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct.

                             PERRIGO COMPANY
                 (In thousands, except per share amounts)

                                                      First Quarter
                                                   2001            2000

  Net sales                                     $193,333        $212,320
  Cost of sales                                  146,394         162,527
  Gross profit                                    46,939          49,793

  Operating expenses
     Distribution                                  3,457           4,595
     Research and development                      3,958           3,517
     Selling and administrative                   23,091          23,867
                                                  30,506          31,979

  Operating income                                16,433          17,814
  Interest and other, net                           (174)          2,462

  Income before income taxes                      16,607          15,352
  Income tax expense                               6,073           5,327

  Net income                                     $10,534         $10,025

  Basic earnings per share                         $0.14           $0.14

  Diluted earnings per share                       $0.14           $0.14

                             PERRIGO COMPANY
                       SELECTED BALANCE SHEET DATA
                              (In thousands)

                                               September 30,      July 1,
                                                   2000            2000

  Current assets                                $304,645        $268,645
  Property & equipment, net                      193,523         193,580
  Other assets                                    23,329          23,839
     Total Assets                               $521,497        $486,064

  Current liabilities                           $139,010        $113,920
  Deferred income taxes                           18,967          19,462
  Minority interest                                  922             922
  Shareholders' equity                           362,598         351,760
     Total Liabilities and Equity               $521,497        $486,064

                             PERRIGO COMPANY
                              (In thousands)

                                                     First Quarter
                                                   2001             2000

     Net income                                  $10,534          $10,025
     Depreciation and amortization                 6,176            5,433
     Other operating activities                   15,931          (22,757)
  Net cash from (for) operating activities        32,641           (7,299)

     Additions to property and equipment          (5,810)          (3,766)
     Proceeds from sale of assets held for sale        -           31,186
  Net cash (for) from investing activities        (5,810)          27,420

  Net cash (for) financing activities               (472)         (20,552)

  Net Increase (Decrease) in Cash and
   Cash Equivalents                               26,359             (431)
  Cash and Cash Equivalents,
   at Beginning of Period                          7,055            1,695
  Cash and Cash Equivalents, at End of Period    $33,414           $1,264

SOURCE: Perrigo Company

Contact: Ernest J. Schenk, Manager, Investor Relations and Communication
of Perrigo Company, 616-673-9212, email,


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