Alpharma's Q2 2008 benefits from sale of discontinued operations 

During the second quarter, the Company repurchased 1.1 million shares of its common stock for an aggregate total cost of US$26.4 million. The Company's cash and cash equivalents balance at June 30, 2008 was US$606.8 million. 

"We remain pleased with our progress during this crucial period of transformation for Alpharma," commented Dean Mitchell, President and Chief Executive Officer. He continued, "Our year-to-date revenues from continuing operations are almost 30 percent ahead of last year.

The company said it has also expanded its animal health products into 13 new geographic regions along with receiving four new indications for existing products.

Earnings before interest, taxes, depreciation and amortization ("EBITDA") from continuing operations in the second quarter of 2008 totaled US$7.4 million and adjusted free cash flow from continuing operations was approximately US$18.3 million. Free cash flow is based on operating cash flow less capital expenditures and purchased intangibles. 

Discontinued Operations 

On April 1, 2008, the Company completed the sale of its Active Pharmaceutical Ingredients ("API") business, with the transaction closing effective as of March 31, 2008. The Company recorded an estimated net after-tax gain on the transaction of US$209.5 million during the first quarter of 2008.

The Company's second quarter 2008 results from discontinued operations reflect a net loss after taxes of US$6.5 million, or a diluted loss per share of US$0.15. The second quarter loss is primarily attributable to foreign exchange and certain transaction-related costs and adjustments. Including these adjustments, results for the six months ended June 30, 2008, include a net after-tax gain on sale of discontinued operations of US$203.0 million and total income, net of taxes from discontinued operations of US$203.7 million, or EPS of US$4.71.