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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 Third Quarter Fiscal 2002 Earnings of $0.26 Per Share

Perrigo Company (NASDAQ: PRGO) today announced results for the third quarter and nine months ended March 30, 2002.

Net sales for the third quarter were $198.5 million, an increase of four percent compared with $190.9 million last year. Net income was $19.3 million, or $0.26 per share, including a civil lawsuit settlement of $5.0 million after-tax, or $0.07 per share. Excluding the lawsuit settlement, net income in the quarter was $14.3 million, or $0.19 per share compared with $10.1 million, or $0.14 per share, a year ago.

"We are pleased with the excellent results recorded in our fiscal third quarter," stated David T. Gibbons, President and Chief Executive Officer. "The addition of Wrafton Laboratories, strong vitamin and antacid sales and new products led to the sales increase. Margin expansion was derived in part by the aggressive management of inventories, which resulted in lower obsolescence expense. Lower inventories and receivables, along with continuing cost control, contributed to operating cash flow of $55 million in the quarter. We achieved our objective of substantially higher customer service levels, while at the same time making substantial improvement to our balance sheet."

For the nine months ended March 30, 2002, sales were $644.3 million, an increase of $71.7 million, or 13 percent, from $572.6 million reported a year ago. Net sales last year, prior to a charge for the discontinuation of certain cough/cold and diet aid products, were $586.6 million. Net income for the nine months was $48.9 million, or $0.65 per share. Excluding the $5.0 million after-tax lawsuit settlement, net income was $43.9 million, or $0.58 per share. This compares with reported net income of $21.5 million, or $0.29 per share, a year ago. Excluding the product discontinuation charge, net income for the nine months last year was $36.8 million, or $0.50 per share.

Commenting further, Gibbons said, "We have done a good job to date meeting our plans while managing through a seasonal cycle that proved difficult to forecast. Revenues, new product introductions, cost control initiatives and working capital measures have met our targets within this challenging environment. In line with our seasonal pattern, we expect lower fourth- quarter sales and margins compared with the third quarter and expect earnings of $0.04 to $0.06 per share.

"Looking forward, we see continuing progress as we execute against our core strategies -- quality, customer service, low cost and innovation. However, we also anticipate challenges ahead, such as the speed with which we can implement new global sourcing initiatives meant to offset rising costs for health care coverage, liability insurance and quality programs. While we will be challenged to continue increasing our margins and income next year, we are confident Perrigo is doing all the right things to achieve our long-term goals and to maintain our strong leadership position in the store brand market."

Perrigo will host a conference call to discuss third quarter fiscal 2002 results at 11:00 a.m. (EDT) today. The call and replay will be available via webcast on the Company's web site at or by phone, toll free, 1-800-553-0318. A taped replay of the call will be available beginning at approximately 2:30 p.m. (EDT) Thursday, April 25. To listen to the replay, call 1-800-475-6701, access code 637133 (outside the United States, call 320-365-3844).

Perrigo Company is the nation's largest manufacturer of over-the-counter (non-prescription) pharmaceutical and nutritional products sold by supermarket, drug, and mass merchandise chains under their own labels. The Company's products include over-the-counter pharmaceuticals such as analgesics, cough and cold remedies, gastrointestinal, and feminine hygiene 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 see the "Cautionary Note Regarding Forward-Looking Statements" on pages 24-29 of the Company's Form 10-K for the year ended June 30, 2001 for a discussion of certain important factors that relate to forward-looking statements contained in this press release. In addition, the Company's future results may be affected by the impact of events flowing from the September 11, 2001 terrorist attacks, current economic conditions in the United States, retailers' financial difficulties or current cough/cold/flu seasonal trends. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. Unless otherwise required by applicable securities laws, the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

                             PERRIGO COMPANY
                 (in thousands, except per share amounts)

                                     Third Quarter         Year-To-Date
                                    2002        2001      2002       2001

  Net sales                       $198,491    $190,898  $644,301   $572,590
  Cost of sales                    143,333     144,472   476,999    429,653
  PPA product discontinuation           --          --        --     20,200
  Gross profit                      55,158      46,426   167,302    122,737

  Operating expenses
     Distribution                    4,048       4,080    12,330     11,498
     Research and development        4,312       5,202    13,116     12,630
     Selling and administration     24,748      24,152    71,540     68,379
     Restructuring                      --          --     2,046         --
     Unusual litigation             (7,813)       (538)   (7,813)      (995)
                                    25,295      32,896    91,219     91,512

  Operating income                  29,863      13,530    76,083     31,225
  Interest and other, net             (220)     (1,687)     (496)    (2,822)

  Income before income taxes        30,083      15,217    76,579     34,047
  Income tax expense                10,822       5,116    27,663     12,592

  Net income                       $19,261     $10,101   $48,916    $21,455

  Basic earnings per share           $0.26       $0.14     $0.67      $0.29

  Diluted earnings per share         $0.26       $0.14     $0.65      $0.29

                             PERRIGO COMPANY
                       SELECTED BALANCE SHEET DATA
                              (in thousands)

                                               March 30,         June 30,
                                                 2002              2001

  Current assets                                $309,108          $313,137
  Property & equipment, net                      211,455           212,087
  Other assets                                    52,627            50,688
     Total Assets                               $573,190          $575,912

  Current liabilities                           $138,107          $171,759
  Deferred income taxes                           18,046            17,419
  Other long-term liabilities                      2,685               859
  Shareholders' equity                           414,352           385,875
     Total Liabilities and Equity               $573,190          $575,912

                             PERRIGO COMPANY
                              (in thousands)

                                                   2002              2001

     Net income                                  $48,916           $21,455
     Depreciation and amortization                17,968            18,055
     Other operating activities                  (13,882)           40,541
  Net cash from operating activities              53,002            80,051

     Additions to property and
      equipment                                  (17,321)          (17,373)
     Proceeds from sale of assets
      held for sale                               14,161                --
     Other                                          (426)               --
  Net cash (for) from investing
   activities                                     (3,586)          (17,373)

  Net cash (for) from financing
   activities                                    (23,719)              493

  Net Increase in Cash and Cash
   Equivalents                                    25,697            63,171
  Cash and Cash Equivalents, at
   Beginning of Period                            11,016             7,055
  Effect of exchange rate changes
   on cash                                           (39)               --
  Cash and Cash Equivalents, at End
   of Period                                     $36,674           $70,226


SOURCE: Perrigo Company

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


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