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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 Fiscal 2002 Financial Results

The Perrigo Company (NASDAQ: PRGO) today announced financial results for the full year and fourth quarter ended June 29, 2002.

Fiscal Year 2002

For fiscal 2002, Perrigo's sales increased 10 percent to $826.3 million from $753.5 million for fiscal 2001. Net income was $50.2 million, or $0.67 per share, compared with $27.7 million, or $0.37 per share, reported last year. Both years included a number of one-time items. Excluding those items, net income was $48.9 million, or $0.65 per share in fiscal 2002, compared with net income of $40.5 million, or $0.54 per share in fiscal 2001.

Reported net income for fiscal 2002 includes: (1) after-tax income of $17.9 million, or $0.24 per share, from vitamin litigation settlements; and (2) an after-tax charge of $16.6 million, or $0.22 per share, related to the restructuring of select Mexico operations. Reported net income in fiscal 2001 includes a net charge of $12.8 million after-tax, or $0.17 per share, reflecting the PPA product line discontinuation and a vitamin litigation settlement.

During the fourth quarter, Perrigo restructured a portion of its Mexico- based operations, which manufactured prescription pharmaceuticals and other non-core products.

David T. Gibbons, President and Chief Executive Officer of Perrigo, explained, "Quimica y Farmacia, purchased in 1997, was attractive because of its pharmaceutical manufacturing and packaging capabilities. This business participates in some non-core markets, which are marginally profitable. We will exit the non-core areas and focus our efforts and resources on our core store brand over-the-counter (OTC) pharmaceutical and nutritional business."

Commenting further, Mr. Gibbons noted, "Fiscal 2002 sales growth was spurred by the addition of Wrafton Laboratories, new products and generally strong demand for Perrigo's store brand OTC pharmaceutical and nutritional products. We also recorded margin expansion through operational efficiency initiatives, tight operating expense control and our ability to manage pricing to offset the impact of higher quality costs.

"We exit fiscal 2002 with a very strong balance sheet. Cash and equivalents increased nearly sevenfold to end fiscal 2002 at $76.8 million. Throughout the year, we tightly controlled inventories, receivables and costs, while investing in quality and service initiatives and research and development."

Fiscal Year 2003 Outlook

Mr. Gibbons stated, "Looking to fiscal 2003, we will continue to make progress toward our long-term goals of improving margins and the bottom line, but this will have its challenges. These challenges include a highly competitive marketplace and added costs stemming from our quality programs, company health care coverage and liability insurance. We are realistic about next year and expect earnings to be relatively flat. We remain confident about the health of our business, and confident we will manage our business successfully throughout fiscal 2003."

Fiscal 2002 Fourth Quarter

For the fourth quarter, sales were $182.0 million, a slight increase over the prior year's sales of $180.9 million. Net income was $1.3 million, or $0.02 per share, compared with $6.2 million, or $0.08 per share, reported last year. Excluding one-time items, net income was $5.0 million, or $0.07 per share, compared with $4.3 million, or $0.06 per share, a year ago.

Reported net income in the quarter includes: (1) after-tax income of $12.9 million, or $0.17 per share, from vitamin litigation settlements; and (2) a charge of $16.6 million after-tax, or $0.22 per share, related to the restructuring of select Mexico operations. Reported net income in the fourth quarter a year ago includes a reduction in a charge taken for a product line discontinuation, which added back $1.9 million after-tax, or $0.02 per share.

Perrigo will host a conference call to discuss 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, 888-489-0147. A taped replay of the call will be available beginning at approximately 2:30 p.m. (EDT) Friday, August 2. To listen to the replay, call 800-642-1687, access code 5014116 (outside the United States, call 706-645-9291).

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 ( ).

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)

                                     Fourth Quarter        Year-To-Date
                                    2002        2001      2002       2001

  Net sales                       $182,021    $180,898  $826,322   $753,488
  Cost of sales                    137,420     139,341   614,419    568,994
  PPA product discontinuation            -      (2,600)        -     17,600
  Gross profit                      44,601      44,157   211,903    166,894

  Operating expenses
     Distribution                    3,997       3,650    16,327     15,148
     Research and development        6,776       5,004    19,892     17,634
     Selling and administration     26,376      24,442    97,916     92,821
       Subtotal                     37,149      33,096   134,135    125,603
     Restructuring                   5,090       2,175     7,136      2,175
     Goodwill impairment            11,524           -    11,524          -
     Unusual litigation            (20,078)          -   (27,891)      (995)
       Total                        33,685      35,271   124,904    126,783

  Operating income                  10,916       8,886    86,999     40,111
  Interest and other, net             (859)       (926)   (1,355)    (3,748)

  Income before income taxes        11,775       9,812    88,354     43,859
  Income tax expense                10,494       3,611    38,157     16,203

  Net income                        $1,281      $6,201   $50,197    $27,656

  Basic earnings per share           $0.02       $0.08     $0.69      $0.38

  Diluted earnings per share         $0.02       $0.08     $0.67      $0.37

  Shares outstanding used for
     basic EPS calculation          72,307      73,750    73,164     73,646

  Shares outstanding used for
     diluted EPS calculation        74,051      75,720    75,113     74,566

                             PERRIGO COMPANY
                       SELECTED BALANCE SHEET DATA
                              (in thousands)

                                             June 29,         June 30,
                                               2002             2001
                                            (Unaudited)      (Unaudited)

  Current assets                             $341,751         $313,137
  Property & equipment, net                   211,044          212,087
  Other assets                                 40,992           50,688
    Total Assets                             $593,787         $575,912

  Current liabilities                        $154,934         $171,759
  Deferred income taxes                        20,313           17,419
  Other long-term liabilities                   2,396              859
  Shareholders' equity                        416,144          385,875
    Total Liabilities and Equity             $593,787         $575,912

                             PERRIGO COMPANY
                              (in thousands)

                                              June 29,        June 30,
                                                2002            2001

     Net income                               $50,197          $27,656
     Depreciation and amortization             25,613           23,022
     Other operating activities                26,945           17,541
  Net cash from operating activities          102,755           68,219

     Additions to property and equipment      (27,528)         (26,804)
     Proceeds from sale of assets held
      for sale                                 14,161                -
     Business acquisitions, net                     -          (46,000)
     Other                                       (398)             268
  Net cash (for) from investing activities    (13,765)         (72,536)

  Net cash (for) from financing activities    (23,176)           8,278

  Net Increase in Cash and Cash Equivalents    65,814            3,961
  Cash and Cash Equivalents, at Beginning
   of Period                                   11,016            7,055
  Effect of exchange rate changes on cash          (6)               -
  Cash and Cash Equivalents, at End of
   Period                                     $76,824          $11,016


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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