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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 2003 Earnings of $0.28 Per Share

The Perrigo Company (NASDAQ: PRGO) today announced results for the first quarter of fiscal 2003 ended September 28, 2002.

                      Perrigo Company (NASDAQ: PRGO)
                 (In thousands, except per share amounts)

                           Fiscal 2003                  Fiscal 2002
                        1st Quarter Ended           1st Quarter Ended
                             9/28/02                      9/29/01
   Sales                    $213,215                     $217,116
   Net Income                $20,011                      $13,090
   Diluted Shares             72,136                       76,925
   Diluted EPS                 $0.28                        $0.17

Net sales for fiscal 2003's first quarter were $213.2 million, a decrease of two percent from $217.1 million last year. Net income was $20.0 million, or $0.28 per share, including a lawsuit settlement of $2.0 million after-tax, or $0.03 per share. Excluding the lawsuit settlement, net income in the quarter was $18.0 million, or $0.25 per share compared with $13.1 million, or $0.17 per share, a year ago.

"We are pleased with the excellent results recorded in our fiscal first quarter," stated David T. Gibbons, Perrigo's President and Chief Executive Officer. "The strong start to fiscal 2003 was achieved despite a difficult sales comparison from the successful new product sell-in of famotidine (Pepcid®) a year ago. Earnings reflect the execution of our key strategies and the collective positive effect from several factors. Among the key factors this quarter were the operational improvement initiatives begun last year. Our continuing focus on manufacturing efficiencies and costs have benefited margins. Other key factors were a favorable product mix, improved net pricing, and excellent inventory management. Inventories declined $7.4 million, or four percent from last year's first quarter, allowing us to manage inventory obsolescence expense closely."

Mr. Gibbons also noted, "With operational improvements taking hold, we continue to generate cash and our balance sheet remains very strong. In the quarter, our cash position and operating cash flow of $8.8 million helped us buy back 3.1 million shares of the Company's common stock under our ongoing share repurchase program.

"We have had a great start to the year and feel confident that we will continue to make progress toward meeting our long-term financial goals. The cough, cold and flu season, however, still lies ahead, and the timing and magnitude of the season are not yet clear. It's off to a slow start so far. Until we begin to see signs as to how this cough, cold and flu season will compare with last year's, we are reluctant to change our relatively flat operating earnings expectations for fiscal 2003."

Continuing, Gibbons said, "Another concern is the impact on our store brand allergy business of the likely switch of Claritin® from prescription to over-the-counter (OTC) status. While this switch will benefit us in fiscal 2004, a switch to OTC in December or January will impact the sales of existing allergy products during the third and fourth quarters of fiscal 2003. We do, however, remain confident the strategies that have helped us to this point will help us grow our store brand market leadership position in the future. Specifically, we continue to improve upon our low-cost producer status, invest in research and development, and generate cash."

"Relatively flat" earnings expectations for fiscal 2003 are prior to accounting for $0.03 per share from this quarter's lawsuit settlement income and an additional $0.02 to $0.03 per share for the year since there will be fewer shares outstanding as a result of the share repurchase program.

Perrigo will host a conference call to discuss first quarter fiscal 2003 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) Thursday, October 24. To listen to the replay, call 800-642-1687, access code 6217377 (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 23-27 of the Company's Form 10-K for the year ended June 29, 2002 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 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)

                                              First Quarter
                                         2003              2002

  Net sales                           $213,215          $217,116
  Cost of sales                        151,536           164,777
  Gross profit                          61,679            52,339

  Operating expenses
   Distribution                          4,027             4,017
   Research and development              5,448             5,296
   Selling and administration           24,270            22,576
    Subtotal                            33,745            31,889
   Unusual litigation                   (3,128)                -
    Total                               30,617            31,889

  Operating income                      31,062            20,450
  Interest and other, net                 (208)             (163)

  Income before income taxes            31,270            20,613
  Income tax expense                    11,259             7,523

  Net income                           $20,011           $13,090

  Earnings per share
   Basic                                 $0.28             $0.18
   Diluted                               $0.28             $0.17

  Weighted average shares outstanding:
   Basic                                70,719            74,314
   Diluted                              72,136            76,925

                               PERRIGO COMPANY
                               (in thousands)

                               September 28,   June 29,   September 29,
                                   2002          2002         2001
  Assets:                       (unaudited)               (unaudited)
  Current assets
     Cash and cash equivalents    $49,214      $76,824        $297
     Accounts receivable, net of
      allowances                  105,777       82,560     120,525
     Inventories, net of
      allowances                  163,704      155,611     171,119
     Prepaid expenses and other
      current assets                8,635        6,896      11,536
     Current deferred income
      taxes                        19,863       19,860      19,203
     Assets held for sale               -            -      16,207
            Total current assets  347,193      341,751     338,887

  Property and equipment          405,258      399,461     382,055
     Less accumulated
      depreciation                195,486      188,417     171,990
                                  209,772      211,044     210,065

  Goodwill, net                    35,919       35,919      47,045
  Other                             4,295        5,073       3,820
                                 $597,179     $593,787    $599,817

  Liabilities and Shareholders'
  Current liabilities
     Accounts payable             $78,431      $74,449     $84,862
     Notes payable                  8,729        8,338       8,979
     Payrolls and related taxes    23,232       31,338      18,934
     Accrued expenses              39,740       32,721      31,141
     Income taxes                  17,864        8,088      19,097
            Total current
             liabilities          167,996      154,934     163,013

  Deferred income taxes            21,143       20,313      17,784
  Long-term debt                        -            -      21,380
  Other long-term liabilities       3,079        2,396       2,353

  Shareholders' equity
     Preferred stock, without par
      value, 10,000 shares
      authorized                        -            -           -
     Common stock, without par
      value, 200,000 shares
      authorized                   57,340       89,222     105,497
     Unearned compensation           (499)        (608)     (1,017)
     Accumulated other
      comprehensive income            952          373         757
     Retained earnings            347,168      327,157     290,050
            Total shareholders'
             equity               404,961      416,144     395,287
                                 $597,179     $593,787    $599,817

  Supplemental Disclosures of
   Balance Sheet Information:
     Allowance for doubtful
      accounts                     $8,050       $7,569      $6,902
     Allowance for inventory      $20,714      $21,360     $30,722
     Working capital             $179,197     $186,817    $175,874
     Preferred stock, shares
      issued                            -            -           -
     Common stock, shares issued   69,424       72,550      73,996

                                 PERRIGO COMPANY
                                  (in thousands)

                                                   First Quarter
                                               2003              2002
  Cash Flows From (For) Operating
     Net income                               $20,011           $13,090
     Depreciation and amortization              6,812             6,808
                                               26,823            19,898

     Accounts receivable                      (23,219)          (24,697)
     Inventories                               (8,111)          (10,007)
     Current and deferred income taxes         10,587            (1,115)
     Accounts payable                           3,998               477
     Payrolls and related taxes                (8,106)           (7,187)
     Other                                      6,798             2,522
           Net cash from (for)
            operating activities                8,770           (20,109)

  Cash Flows For Investing Activities:
     Additions to property and equipment       (4,950)           (4,786)
           Net cash for investing
            activities                         (4,950)           (4,786)

  Cash Flows From (For) Financing
     Borrowings of long-term debt                   -            21,380
     Borrowings/(repayments) of
      short-term debt                             393            (3,780)
     Issuance of common stock                     143             9,785
     Repurchase of common stock               (32,025)          (13,240)
     Other                                         59                31
           Net cash (for) from
            financing activities              (31,430)           14,176

  Net Decrease in Cash and Cash
   Equivalents                                (27,610)          (10,719)
  Cash and Cash Equivalents, at
   Beginning of Period                         76,824            11,016
  Cash and Cash Equivalents, at End
   of Period                                  $49,214              $297

  Supplemental Disclosures of Cash
   Flow Information:
     Interest paid                               $257              $604
     Income taxes paid                           $657            $8,344

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SOURCE: Perrigo Company

CONTACT: Ernest J. Schenk, Manager, Investor Relations and Communication
of Perrigo Company, +1-269-673-9212, or E-mail:

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