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Mylan Laboratories Announces $1.25 Billion Share Buyback, Expected to Represent Nearly 25% of the Company's Stock.

Article Excerpt
COMPANY ALSO ANNOUNCES ADDITIONAL STRATEGIC INITIATIVES:

- PLANS TO OUT-LICENSE NEBIVOLOL - - DOUBLES ANNUAL DIVIDEND - - PROVIDES 2 YEARS OF REVENUE AND ADJUSTED EPS GUIDANCE -

PITTSBURGH, June 14 /PRNewswire-FirstCall/ -- Mylan Laboratories Inc. today announced several key strategic initiatives, including a $1.25 billion share buyback, comprised of a modified "Dutch Auction" self- tender for up to approximately 48.8 million shares (up to $1 billion) and a $250 million follow-on share repurchase program in the open market or otherwise. These share repurchases will represent, upon completion, nearly 25% of the Company's outstanding shares. In addition, the Company announced today that is increasing its annual dividend by 100%, effective as of the first quarter ending June 30, 2005. Mylan also announced plans to out-license nebivolol, the highly anticipated next-generation beta blocker.

In addition to these actions, the Company today also announced adjusted diluted EPS guidance of $0.92 to $1.15 in fiscal 2006 and $1.20 to $1.74 in fiscal 2007. A presentation with more specific information concerning these announcements is being provided via a live investor conference call and webcast, which is being archived and is available on http://www.mylan.com/ until June 21, 2005.

Robert J. Coury, Mylan's Vice Chairman and Chief Executive Officer, commented: "These strategic announcements demonstrate Mylan's continued commitment to enhancing our leading position in the generic pharmaceutical industry, while optimizing value for our shareholders. We are extremely well positioned to capitalize on multiple new product and other opportunities, and we believe today's announcements will be accretive to our shareholders and position the Company for significantly enhanced potential EPS growth."

$1.25 Billion Share Buyback Program

Mylan announced today that on June 16, 2005 it will commence a modified "Dutch Auction" self-tender for up to approximately 48.8 million shares (up to $1 billion) of its common stock. In the tender offer, shareholders will have the opportunity to tender some or all of their shares at a price not less than $18.00 per share or more than $20.50 per share. Based on the number of shares tendered and the prices specified by the tendering shareholders, Mylan will determine the lowest per share price within the range that will enable it to buy up to approximately 48.8 million shares, or such lesser number of shares as are properly tendered. If more than approximately 48.8 million shares are properly tendered at or below the determined price per share, Mylan will purchase shares tendered by such shareholders, at the determined price per share, on a pro rata basis, as will be specified in the offer to purchase relating to the tender offer that will be distributed to shareholders. Shareholders whose shares are purchased in the tender offer will be paid the determined price per share, net in cash, without interest, promptly following the expiration of the tender offer period, as it may be extended. Additionally, in...

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