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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 Announces Fourth Quarter and Year End Results

Perrigo Company (NASDAQ: PRGO) today announced results for the fourth quarter and fiscal year ended June 30, 2001.

For the fourth quarter, net sales were $180.9 million, an increase of 19 percent from $152.3 million in the fourth quarter last year. Net income was $6.2 million compared with a loss of $8.1 million a year ago. Earnings per share from operations were $0.05 compared with a loss of $0.11 per share in the fourth quarter of fiscal 2000. At year-end, the Company reduced a charge taken in the second quarter related to a product line discontinuation, adding another $0.03 per share to earnings in the current quarter.

In November 2000, in compliance with the Food and Drug Administration's (FDA) recommendation, the Company voluntarily discontinued production and halted shipments of all products containing the ingredient phenylpropanolamine (PPA). On a proforma basis, excluding both the PPA discontinuation, which resulted in a $12.5 million reduction in sales in fiscal 2001, and $17.7 million in fiscal 2000 sales from the personal care business divested that year, the Company recorded sales of $766.0 million compared with $726.6 million last year, an increase of five percent. The PPA discontinuation also resulted in a charge of $21.0 million, or $0.18 per share. Proforma net income for 2001 was $41.1 million, or $0.55 per share. Including the PPA- related reduction in sales, reported net sales for fiscal 2001 were $753.5 million and reported net income, including the PPA charge, was $27.7 million, or $0.37 per share fully diluted. For fiscal 2000, including the divested personal care business, Perrigo reported net income of $19.3 million, or $0.26 per share fully diluted.

Commenting on the quarter and year, Chief Executive Officer, David T. Gibbons, said, "We are pleased with our fiscal 2001 results, which benefited from solid business trends, new products like famotidine and strong balance sheet and cash management. This year we made good progress in our plans for continuous improvement in product quality, operational excellence and ultimately our financial results. The continuing investments in the quality and compliance initiatives being made today will be fully implemented in fiscal 2002. We will continue to be challenged with absorbing these additional costs in the year ahead.

"In the fourth quarter, we had a strong sell-in of our new 10 mg famotidine antacid tablet, which is comparable to the national brand Pepcid® AC. We also began shipping reformulated cough and cold products related to the PPA discontinuation. New product development will continue to be a key to growth, and we are targeting several rollouts for fiscal 2002, including store brand equivalents to Advil® Cold & Sinus, Rogaine® Extra Strength, and Excedrin® Migraine.

"We also were pleased to complete the acquisition of Wrafton Laboratories in the United Kingdom, a supplier of over-the-counter (OTC) pharmaceutical store brands to grocery and pharmacy retailers as well as a contract manufacturer. The Wrafton acquisition serves as an excellent entry point into the U.K. market where some of our major domestic retail customers are expanding their operations.

"While fiscal 2002 will have its challenges, we look forward to solid sales and earnings growth. With the addition of Wrafton, our expectations are for double-digit sales growth and earnings of between $0.60 and $0.62 per share. We anticipate earnings for our fiscal first quarter 2002 ending in September to be in a range of $0.14 to $0.16 per share fully diluted."

Perrigo will host a conference call to discuss fourth quarter and fiscal 2001 year end results at 11:00 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 1-800-230-1059 and asking for Perrigo's fourth quarter and year end review. A taped replay of the call will be available beginning at approximately 2:30 p.m. (EDT) Wednesday, August 15. To listen to the replay, call 1-800-475-6701, access code 598085 (outside the United States, call 320-365-3844).

Perrigo Company is the nation's largest manufacturer of over-the-counter 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)

                                     Fourth Quarter        Year-To-Date
                                    2001        2000      2001       2000

  Net sales                       $180,898    $152,342  $753,488   $744,284
  Cost of sales                    139,341     134,239   568,994    597,646
  PPA product discontinuation       (2,600)          -    17,600          -
  Gross profit                      44,157      18,103   166,894    146,638

  Operating expenses
     Distribution                    3,650       3,654    15,148     16,002
     Research and development        5,004       6,122    17,634     16,314
     Selling and administration     24,442      22,972    92,821     81,509
     Restructuring and redesign      2,175       1,048     2,175      1,048
     Unusual litigation                  -      (4,154)     (995)    (4,154)
                                    35,271      29,642   126,783    110,719

  Operating income                   8,886     (11,539)   40,111     35,919
  Interest and other, net             (926)        473    (3,748)     4,994

  Income before income taxes         9,812     (12,012)   43,859     30,925
  Income tax expense                 3,611      (3,946)   16,203     11,627

  Net income                        $6,201     $(8,066)  $27,656    $19,298

  Basic earnings per share           $0.08      $(0.11)    $0.38      $0.26

  Diluted earnings per share         $0.08      $(0.11)    $0.37      $0.26

  Shares outstanding used for
   basic EPS calculation            73,750      73,436    73,646     73,370

  Shares outstanding used for
   diluted EPS calculation          75,720      73,436    74,566     73,593

                                 PERRIGO COMPANY
                           SELECTED BALANCE SHEET DATA
                                  (In thousands)

                                                 June 30,           July 1,
                                                   2001              2000

      Current assets                             $313,137          $268,645
      Property & equipment, net                   212,087           193,580
      Other assets                                 50,688            23,839
         Total Assets                            $575,912          $486,064

      Current liabilities                        $171,759          $113,920
      Deferred income taxes                        17,419            19,462
      Other long-term liabilities                     859                 -
      Minority interest                                 -               922
      Shareholders' equity                        385,875           351,760
         Total Liabilities and Equity            $575,912          $486,064

                                 PERRIGO COMPANY
                                  (In thousands)

                                                 June 30,            July 1,
                                                   2001               2000

         Net income                              $27,656            $19,298
         Depreciation and amortization            23,022             22,245
         Other operating activities               17,541             76,270
      Net cash from operating activities          68,219            117,813

         Additions to property and equipment     (26,804)           (14,364)
         Proceeds from sale of assets
          held for sale                                -             31,186
         Business acquisitions, net              (46,000)                 -
         Other                                       208              3,704
      Net cash (for) from investing activities   (72,596)            20,526

      Net cash from (for) financing activities     8,338           (132,979)

      Net Increase (Decrease) in Cash
       and Cash Equivalents                        3,961              5,360
      Cash and Cash Equivalents, at
       Beginning of Period                         7,055              1,695
      Cash and Cash Equivalents, at End
       of Period                                 $11,016             $7,055


SOURCE: Perrigo Company

Contact: Ernest J. Schenk, Manager, Investor Relations and Communication
of Perrigo Company, +1-616-673-9212, or email,



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