Warner Chilcott Reports Operating Results for the Quarter Ended June 30, 2009 and Updates 2009 Full Year Guidance

Growth of DORYX, LOESTRIN 24 FE and ESTRACE CREAM drives solid earnings growth


ARDEE, Ireland, Aug. 7  /PRNewswire-Firstcall/ -- Warner Chilcott Limited (NASDAQ:WCRX) today announced its results for the quarter ended June 30, 2009. Revenue in the quarter ended June 30, 2009 increased 7.1% to $250.8 million over the prior year quarter. The primary drivers of the increase in revenue were the net sales of DORYX, LOESTRIN 24 FE and ESTRACE Cream which were partially offset by net sales declines of other products, primarily ESTROSTEP FE, SARAFEM and FEMHRT.

The Company reported net income of $56.0 million ($0.22 per diluted share) in the quarter ended June 30, 2009, compared with net income of $33.6 million ($0.13 per diluted share) in the prior year quarter, an increase of 66.9%. Cash net income ("CNI") in the quarter ended June 30, 2009 rose to $109.2 million ($0.44 per diluted share), an increase of 29.6% over the prior year quarter.

References in this release to "cash net income" or "CNI" mean the Company's net income adjusted for the after-tax effects of two non-cash items: amortization (including impairments, if any) of intangible assets and amortization (including write-offs, if any) of deferred loan costs related to the Company's debt. Reconciliations from the Company's reported results in accordance with US GAAP to CNI and adjusted earnings before interest, taxes, depreciation and amortization ("EBITDA") for all periods are presented in the tables at the end of this press release.

Revenue

Revenue in the quarter ended June 30, 2009 was $250.8 million, an increase of $16.6 million, or 7.1%, over the prior year quarter. The primary drivers of the increase in revenue were the net sales of DORYX, LOESTRIN 24 FE and ESTRACE Cream, which together contributed $28.0 million of revenue growth for the quarter ended June 30, 2009. The growth delivered by these products was partially offset by net sales declines in certain other products, primarily ESTROSTEP FE, SARAFEM and FEMHRT. Period over period changes in the net sales of our products are a function of a number of factors including changes in: market demand, gross selling prices, sales-related deductions from gross sales to arrive at net sales and the levels of pipeline inventories of our products held by our direct and indirect customers. The Company uses IMS Health, Inc. estimates of filled prescriptions for our products as a proxy for market demand.

Net sales of our oral contraceptive products increased $4.2 million, or 5.6%, in the quarter ended June 30, 2009, compared with the prior year quarter. LOESTRIN 24 FE generated revenues of $58.0 million in the quarter ended June 30, 2009, an increase of 15.5% compared with $50.2 million in the prior year quarter. The increase in LOESTRIN 24 FE net sales over the prior year quarter was primarily due to higher average selling prices and an increase in filled prescriptions of 10.3%, offset in part by the impact of higher sales-related deductions and a contraction of pipeline inventories relative to the prior year period. FEMCON FE generated revenues of $12.4 million in the quarter ended June 30, 2009, an increase of $1.7 million, or 14.7%, versus the prior year quarter. The increase in FEMCON FE net sales was primarily due to higher average selling prices and an increase in filled prescriptions of 6.3% in the quarter ended June 30, 2009, offset in part by a contraction of pipeline inventories relative to the prior year quarter.

Net sales of our dermatology products increased $11.3 million, or 10.9%, in the quarter ended June 30, 2009, compared to the prior year quarter. Net sales of DORYX increased $13.2 million, or 41.6%, in the quarter ended June 30, 2009, compared to the prior year quarter, primarily due to a 41.6% increase in filled prescriptions and an expansion of pipeline inventories compared to the prior year period, which were offset, in part, by higher sales-related deductions. The increase in filled prescriptions primarily relates to DORYX 150 mg, which we launched in the third quarter of 2008 and to which we have dedicated significant promotional efforts, including our recently launched customer loyalty card program. DORYX 150 mg accounted for 76% of new DORYX prescriptions and 72% of total DORYX prescriptions in the quarter ended June 30, 2009. Increased utilization of the customer loyalty card for DORYX 150 mg drove the increase in sales-related deductions in the quarter. Net sales of TACLONEX decreased $2.3 million, or 5.9%, to $36.5 million in the quarter ended June 30, 2009, compared to $38.8 million in the prior year quarter. The decrease in TACLONEX net sales is primarily due to a 5.7% decrease in filled prescriptions, as well as higher sales-related deductions, offset in part, by the impact of higher average sales prices. Net sales of DOVONEX increased by $0.4 million, or 1.4%, in the quarter ended June 30, 2009, compared with the prior year quarter. The increase in net sales of DOVONEX was due to higher average sales prices and a reduction in sales-related deductions, which more than offset a 24.6% decline in filled prescriptions as compared to the prior year quarter.

Net sales of our hormone therapy products increased $3.9 million, or 9.1%, in the quarter ended June 30, 2009, compared with the prior year quarter. Net sales of ESTRACE Cream increased $7.0 million, or 33.1%, in the quarter ended June 30, 2009, compared to the prior year quarter due to increased demand and higher average selling prices. We began promotional efforts for ESTRACE Cream in early 2009 resulting in an increase in filled prescriptions of 21.2% in the quarter ended June 30, 2009 compared with the prior year quarter. Net sales of FEMHRT decreased $3.3 million, or 19.9%, in the quarter ended June 30, 2009 compared to the prior year quarter due to a decrease in filled prescriptions of 12.0% and a contraction of pipeline inventories relative to the prior year quarter, which were offset, in part, by higher average selling prices compared to the prior year quarter.

Cost of Sales (excluding amortization of intangible assets)

Cost of sales decreased $4.1 million, or 7.9%, in the quarter ended June 30, 2009, compared with the prior year quarter. Our gross profit margin as a percentage of total revenue increased to 81.3% in the quarter ended June 30, 2009 as compared to 78.2% in the prior year quarter, primarily due to a favorable mix of products sold as compared to the prior year quarter, offset in part, by increases in manufacturing costs.

Selling, General and Administrative ("SG&A") Expenses

SG&A expenses for the quarter ended June 30, 2009 were $53.0 million, an increase of $5.9 million, or 12.6%, from $47.1 million in the prior year quarter. Advertising and Promotion ("A&P") expenses for the quarter ended June 30, 2009 increased $0.2 million, or 1.7%, compared with the prior year quarter, due primarily to increased sampling activities. Selling and distribution expenses for the quarter ended June 30, 2009 decreased $2.7 million, or 11.7%, compared to the prior year quarter primarily due to a reduction in the size of our field sales forces, offset, in part by, promotion expenses related to FEMRING. General, Administrative and Other ("G&A") expenses increased $8.4 million, or 61.1%, in the quarter ended June 30, 2009, as compared with the prior year quarter. The increase is due in large part to increases in professional and legal fees primarily in connection with our proposed redomicile to Ireland and, to a lesser extent, to increases in compensation expenses, including non-cash stock-based compensation, and other costs.

Research and Development ("R&D")

Our investment in R&D for the quarter ended June 30, 2009 was $11.9 million, a decrease of $0.6 million, or 4.8%, compared with the prior year quarter. Our internal R&D expenditures fluctuate based on the nature and timing of our on-going R&D programs. We expect our internal R&D spend in the second half of 2009 to increase over the first six months of 2009.

Net Interest Expense

Net interest expense for the quarter ended June 30, 2009 was $15.2 million, a decrease of $9.4 million, or 38.2%, from $24.6 million in the prior year quarter. Included in net interest expense in the quarter ended June 30, 2008 was a $1.1 million expense relating to the write-off of deferred loan costs associated with the optional prepayment of $70.0 million of indebtedness under our senior secured credit facility. The Company did not make any optional prepayments of debt during the quarter ended June 30, 2009. The decrease in net interest expense in the 2009 period was primarily the result of cumulative reductions in outstanding debt during 2008 and the first half of 2009 which reduced the average debt balance outstanding from $1,198.2 million in the quarter ended June 30, 2008 to $861.1 million in the quarter ended June 30, 2009. The cumulative reduction in the average debt level is the result of optional prepayments and purchases made using cash flows from operations and cash on hand, net of investing activities.

Net Income and Cash Net Income

For the quarter ended June 30, 2009, reported net income was $56.0 million, or $0.22 per share, and CNI was $109.2 million, or $0.44 per share, based on 250.7 million diluted Class A common shares outstanding. In calculating CNI, we add back the after-tax impact of the amortization (including impairments, if any) of intangible assets and the amortization (including write-offs, if any) of deferred loan costs. These items are tax-effected at the estimated marginal rates attributable to them. In the quarter ended June 30, 2009, the marginal tax rate associated with the amortization of intangible assets was 8.4% and the marginal tax rate for amortization (including write-offs) of deferred loan costs was 19.9%.

Liquidity, Balance Sheet and Cash Flows

As of June 30, 2009, our cash and cash equivalents totaled $138.2 million and our total debt outstanding was $859.8 million. There were no borrowings outstanding under the revolving portion of our senior secured credit facility. We generated $124.5 million of cash from operating activities in the quarter ended June 30, 2009, compared with $122.8 million in the prior year quarter, an increase of $1.7 million.

Recent Events

The Company recently announced that at a special court-ordered meeting of shareholders held on August 5, 2009 (the "Special Meeting"), its shareholders approved a scheme of arrangement between the Company and such shareholders. Assuming receipt of the required approval of the Supreme Court of Bermuda at a hearing to be held on August 14, 2009, and the satisfaction of certain other conditions, the transaction will result in Warner Chilcott plc, a newly formed public holding company, organized in, and a tax resident of, Ireland becoming the ultimate public holding company of the Warner Chilcott group. The Company expects that the transaction will be completed on or about August 20, 2009. Following completion of the transaction, shares of Warner Chilcott plc will begin trading on the NASDAQ Global Market under the symbol "WCRX," the same symbol under which the Company's shares currently trade. Warner Chilcott also announced that at the Special Meeting its shareholders approved the creation of distributable reserves of Warner Chilcott plc, subject to the approval of the High Court of Ireland following the completion of the transaction.

2009 Financial Guidance Update

Based on the year-to-date results and current outlook for the remainder of 2009, the Company is affirming its full year 2009 revenue guidance. For 2009, the Company continues to anticipate revenue to be in the range of $1,015 to $1,025 million.

Based on the current and forecasted mix of products sold, the Company is raising its guidance on gross margin as a percentage of total revenue to a range of 80% to 81%. This reflects of the Company's current expectation that a favorable product mix will continue to benefit its overall margins.

The Company is updating its expected ranges for certain operating expense items for the full year 2009. Total anticipated SG&A expenses continue to be in the range of $203 to $212 million, as expected reductions in A&P expenses should offset expected increases in G&A expenses. More specifically, A&P expenses are expected to be in the range of $38 to $41 million which reflects our current expectations of promotional spending by our sales forces. G&A expenses are expected to be in the range of $81 to $84 million, which reflects an increase to previously estimated professional and legal fees. R&D spend is now expected to be in the range of $72 to $75 million rather than $77 to $80 million. The decrease is reflective of reduced estimates of ongoing R&D study expenses primarily due to changes to the expected timing of expenditures.

Based on the above revisions, the Company is now anticipating CNI per share to be $0.05 per share higher than previously forecasted. The Company anticipates CNI per share to in the range of $1.60 to $1.65.

The Company's full year 2009 revised guidance is summarized on the last exhibit to this release.

Investor Conference Call

The Company is hosting a conference call open to all interested parties, on Friday, August 7, 2009 beginning at 8:00 AM EDT. The number to call within the United States and Canada is [phone]. Participants outside the United States and Canada should call [phone]. A replay of the conference call will be available for two weeks following the call and can be accessed by dialing [phone] from within the United States and Canada or [phone] from outside the United States and Canada. The replay ID number is 6093247.

The Company

Warner Chilcott is a leading specialty pharmaceutical company currently focused on the women's healthcare and dermatology segments of the U.S. pharmaceuticals market. The Company is a fully integrated company with internal resources dedicated to the development, manufacturing and promotion of its products. WCRX-F

Forward Looking Statements

This press release contains forward-looking statements, including statements concerning our operations, our economic performance and financial condition, and our business plans and growth strategy and product development efforts. These statements constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The words "may," "might," "will," "should," "estimate," "project," "plan," "anticipate," "expect," "intend," "outlook," "believe" and other similar expressions are intended to identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates. These forward-looking statements are based on estimates and assumptions by our management that, although we believe to be reasonable, are inherently uncertain and subject to a number of risks and uncertainties. The following represent some, but not necessarily all, of the factors that could cause actual results to differ from historical results or those anticipated or predicted by our forward-looking statements: our substantial indebtedness; competitive factors in the industry in which we operate (including the approval and introduction of generic or branded products that compete with our products); our ability to protect our intellectual property; a delay in qualifying our manufacturing facility to produce our products or production or regulatory problems with either third party manufacturers upon whom we may rely for some of our products or our own manufacturing facilities; pricing pressures from reimbursement policies of private managed care organizations and other third party payors, government sponsored health systems, the continued consolidation of the distribution network through which we sell our products, including wholesale drug distributors and the growth of large retail drug store chains; the loss of key senior management or scientific staff; adverse outcomes in our outstanding litigation or an increase in the number of litigation matters to which we are subject; government regulation affecting the development, manufacture, marketing and sale of pharmaceutical products, including our ability and the ability of companies with whom we do business to obtain necessary regulatory approvals; our ability to manage the growth of our business by successfully identifying, developing, acquiring or licensing new products at favorable prices and marketing such new products; our ability to obtain regulatory approval and customer acceptance of new products, and continued customer acceptance of our existing products; changes in tax laws or interpretations that could increase our consolidated tax liabilities; the other risks identified in our Annual Report on Form 10-K for the year ended December 31, 2008, as amended; and other risks detailed from time-to-time in our public filings, financial statements and other investor communications.

We caution you that the foregoing list of important factors is not exclusive. In addition, in light of these risks and uncertainties, the matters referred to in our forward-looking statements may not occur. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as may be required by law.

  Reconciliations to GAAP Net Income
  CNI


To supplement its condensed consolidated financial statements presented in accordance with US GAAP, the Company provides a summary to show the computation of CNI. CNI is defined as the Company's GAAP net income adjusted for the after-tax effects of two non-cash items: amortization (including impairments, if any) of intangible assets and amortization (including write-offs, if any) of deferred loan costs related to the Company's debt. The Company believes that the presentation of CNI provides useful information to both management and investors concerning the approximate impact of the above items. The Company also believes that considering the effect of these items allows management and investors to better compare the Company's financial performance from period-to-period, and to better compare the Company's financial performance with that of its competitors. The presentation of this additional information is not meant to be considered in isolation of, or as a substitute for, results prepared in accordance with US GAAP.

Adjusted EBITDA

To supplement its condensed consolidated financial statements presented in accordance with US GAAP, the Company is providing a summary to show the computation of adjusted EBITDA taking into account certain charges that were taken during the quarters and six months ended June 30, 2009 and 2008. The computation of adjusted EBITDA is based on the definition of EBITDA contained in the indenture governing the Company's Senior Subordinated Notes due 2015.

                         WARNER CHILCOTT LIMITED
               CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
            (In thousands of U.S. dollars, except per share amounts)
                              (Unaudited)


                               Quarter Ended          Six Months Ended
                         June-30-09    June-30-08  June-30-09  June-30-08

  REVENUE:
    Product net sales      $245,565      $229,636    $484,589    $453,336
    Other revenue             5,251         4,580      12,216      10,363

     Total revenue          250,816       234,216     496,805     463,699

  COSTS & EXPENSES:
    Cost of sales
     (excludes
     amortization)           46,962        51,012      95,712      98,782
    Selling, general and
     administrative          53,022        47,097      99,788     102,324
    Research and
     development             11,945        12,546      35,817      24,726
    Amortization of
     intangible assets       56,992        53,137     113,985     105,750
    Interest expense
     (net)                   15,201        24,591      33,218      48,609

  INCOME BEFORE TAXES        66,694        45,833     118,285      83,508
    Provision for income
     taxes                   10,671        12,265      18,926      16,282

  NET INCOME                $56,023       $33,568     $99,359     $67,226


  Earnings per share:
  Class A - Basic             $0.22         $0.13       $0.40       $0.27

  Class A - Diluted           $0.22         $0.13       $0.40       $0.27


  RECONCILIATIONS:
  Net income - GAAP         $56,023       $33,568     $99,359     $67,226
    + Amortization of
      intangible assets,
      net of tax             52,217        48,358     104,435      96,264
    + Amortization and
      write-offs of
      deferred loan costs,
      net of tax                965         2,349       3,121       3,651

     Cash net income       $109,205       $84,275    $206,915    $167,141



                            WARNER CHILCOTT LIMITED
                     CONDENSED CONSOLIDATED BALANCE SHEETS
                        (In thousands of U.S. dollars)
                                  (Unaudited)


                                                 As of               As of
                                         June 30, 2009   December 31, 2008

  ASSETS
    Current assets:
      Cash & cash equivalents                 $138,190            $35,906
      Accounts receivable, net                  98,428             93,015
      Inventories                               61,728             57,776
      Prepaid expenses & other current
       assets                                   86,498             69,813

        Total current assets                   384,844            256,510


    Other assets:
      Property, plant and equipment, net        77,725             60,908
      Intangible assets, net                   885,613            993,798
      Goodwill                               1,250,324          1,250,324
      Other non-current assets                  17,603             21,351

  TOTAL ASSETS                              $2,616,109         $2,582,891


  LIABILITIES
    Current liabilities:
      Accounts payable                         $26,140            $15,014
      Accrued expenses & other current
       liabilities                             165,415            151,753
      Current portion of long-term debt          4,935              5,977

        Total current liabilities              196,490            172,744


    Other liabilities:
      Long-term debt, excluding current
       portion                                 854,895            956,580
      Other non-current liabilities            103,830            103,647

        Total liabilities                    1,155,215          1,232,971


  SHAREHOLDERS' EQUITY                       1,460,894          1,349,920

  TOTAL LIABILITIES & SHAREHOLDERS'
   EQUITY                                   $2,616,109         $2,582,891



                             WARNER CHILCOTT LIMITED
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                         (in thousands of U.S. dollars)
                                    (Unaudited)


                              Quarter Ended         Six Months Ended
                         June-30-09  June-30-08   June-30-09  June-30-08

  CASH FLOWS FROM
   OPERATING ACTIVITIES:
  Net income                $56,023     $33,568      $99,359     $67,226
  Adjustments to
   reconcile net income
   to net cash provided
   by operating
   activities:
     Depreciation             3,400       3,124        6,426       6,049
     Amortization of
      intangible assets      56,992      53,137      113,985     105,750
     Amortization and
      write-offs of
      deferred loan costs     1,205       2,676        3,771       4,235
      Stock-based
      compensation expense    3,330       2,195        5,962       4,005
  Changes in assets and
   liabilities:
     (Increase) / decrease
      in accounts
      receivable, prepaid
      and other assets      (19,913)      4,303      (16,031)     (4,311)
     (Increase) / decrease
      in inventories           (250)        458       (3,952)     (6,248)
     Increase / (decrease)
      in accounts payable,
      accrued & other
      liabilities            24,954      13,020       23,437        (812)
     (Decrease) / increase
      in income taxes and
      other, net             (1,226)     10,335       (3,083)    (55,760)

  Net cash provided by
   operating activities    $124,515    $122,816     $229,874    $120,134


  CASH FLOWS FROM
   INVESTING ACTIVITIES:
     Purchase of intangible
      assets                 (2,900)    (42,900)      (5,800)    (45,800)
  Capital expenditures      (12,485)     (3,068)     (19,033)    (10,013)

  Net cash (used in)
   investing activities    $(15,385)   $(45,968)    $(24,833)   $(55,813)


  CASH FLOWS FROM
   FINANCING ACTIVITIES:
     Repayments under bank
      term credit facility   (1,233)    (72,071)    (102,727)    (74,142)
     Other                      (15)        194          (30)        255

  Net cash (used in)
   financing activities     $(1,248)   $(71,877)   $(102,757)   $(73,887)

     Net increase /
      (decrease) in cash
      and cash equivalents $107,882      $4,971     $102,284     $(9,566)

     Cash and cash
      equivalents,
      beginning of period    30,308      16,239       35,906      30,776

     Cash and cash
      equivalents, end of
      period               $138,190     $21,210     $138,190     $21,210



                             WARNER CHILCOTT LIMITED
                 Reconciliation of Net Income to Adjusted EBITDA
                         (In thousands of U.S. dollars)
                                   (Unaudited)


                       Quarter Ended           Six Months Ended
                  June-30-09  June-30-08   June-30-09  June-30-08

  RECONCILIATION TO
   ADJUSTED EBITDA:

  Net income -
   GAAP               $56,023     $33,568      $99,359    $67,226

  + Interest
    expense, net       15,201      24,591       33,218     48,609
  + Provision for
    income taxes       10,671      12,265       18,926     16,282
  + Non-cash
    stock-based
    compensation
    expense             3,330       2,195        5,962      4,005
  + Depreciation        3,400       3,124        6,426      6,049
  + Amortization
    of intangible
    assets             56,992      53,137      113,985    105,750
  + R&D milestone
    payments                -           -       11,500          -

     Adjusted EBITDA
      of WCL, as
      defined        $145,617    $128,880     $289,376   $247,921

  + Expenses of
    WCL and other       7,481         969        9,854      2,770

  Adjusted EBITDA
   of Warner
   Chilcott
   Holdings
   Company III,
   Ltd., as
   defined           $153,098    $129,849     $299,230   $250,691


  Note: Warner Chilcott Holdings Company III, Limited and certain of its
  subsidiaries are parties to our credit agreement and the indenture
  governing our Senior Subordinated Notes due 2015. Warner Chilcott Limited
  is not a party to these agreements. Certain expenses included in Warner
  Chilcott Limited's consolidated operating results are not deducted in
  arriving at Adjusted EBITDA for Warner Chilcott Holdings Company III, Ltd
  and its subsidiaries.



                           WARNER CHILCOTT LIMITED
                             REVENUE BY PRODUCT
                       (In millions of U.S. dollars)
                                (Unaudited)


                            Quarter Ended          Six Months Ended
                       June-30-09  June-30-08   June-30-09  June-30-08

  Oral Contraception ("OC")
     LOESTRIN 24 FE         $58.0       $50.2       $110.4       $97.1
     FEMCON FE               12.4        10.7         25.3        21.5
     ESTROSTEP FE *           2.9         6.4          8.0        11.0
     OVCON *                  2.2         4.0          4.9         6.8

       Total OC              75.5        71.3        148.6       136.4

  Hormone therapy ("HT")
     ESTRACE Cream           28.2        21.2         51.4        40.4
     FEMHRT                  13.1        16.4         25.8        32.4
     FEMRING                  3.6         3.4          7.4         6.9
     Other HT                 2.5         2.5          5.0         5.4

       Total HT              47.4        43.5         89.6        85.1

  Dermatology
     DORYX                   44.9        31.7         95.3        66.8
     TACLONEX                36.5        38.8         73.1        75.8
     DOVONEX *               33.9        33.5         61.9        66.6

       Total Dermatology    115.3       104.0        230.3       209.2

  PMDD
     SARAFEM                  4.4         7.8          8.5        12.2

  Other product sales
     Other                    0.5        (1.1)         1.4        (0.9)
     Contract manufacturing   2.5         4.1          6.2        11.3


  Total product net sales   245.6       229.6        484.6       453.3

  Other revenue
     Other non-product
      Revenue                 5.2         4.6         12.2        10.4

  Total revenue            $250.8      $234.2       $496.8      $463.7


  * Includes revenue from related authorized generic product sales from the
    date of their respective launch.



                          WARNER CHILCOTT LIMITED
                         SUMMARY OF SG&A EXPENSES
                       (In millions of U.S. dollars)
                                (Unaudited)


                                                       Quarter Ended
                                                 June-30-09  June-30-08

  Advertising & promotion                             $10.5       $10.3
  Selling & distribution                               20.3        23.0
  General, administrative & other                      22.2        13.8

     Total SG&A                                       $53.0       $47.1


                                                     Six Months Ended
                                                 June-30-09  June-30-08

  Advertising & promotion                             $18.2       $27.5
  Selling & distribution                               43.2        46.6
  General, administrative & other                      38.4        28.2

     Total SG&A                                       $99.8      $102.3



                         WARNER CHILCOTT LIMITED
                    2009 Full Year Financial Guidance
             (U.S. dollars in millions, except per share amounts)



                                        Prior Guidance  Revised Guidance
                                           May 2009         August 2009


  Total Revenue (1)                    $1,015 to $1,025  $1,015 to $1,025

  Gross margin as a % of total revenue        79% to 80%        80% to 81%

  SG&A Expenses:
  A&P                                        $41 to $44        $38 to $41
  Selling & Distribution                     $84 to $87        $84 to $87
  G&A                                        $78 to $81        $81 to $84

     Total SG&A Expenses (2)               $203 to $212      $203 to $212

  Total R&D (3)                              $77 to $80        $72 to $75

  GAAP Net Income (4)                      $174 to $186      $186 to $199

  CNI (5)                                  $390 to $402      $402 to $415

  CNI per share (5) (6)                  $1.55 to $1.60    $1.60 to $1.65


  (1) Our 2009 guidance does not account for the impact of any future new
      licensing agreements.
  (2) Total SG&A expenses do not include any amount that may be payable in
      connection with the potential settlement of our outstanding legal
      actions.
  (3) Total 2009 R&D expense consists of internal R&D anticipated to be in
      the range of $57.5 to $60.5 million. Included in total 2009 R&D
      expense are $11.5 million of milestone payments expensed during the
      six months ended June 30, 2009, as well as $3.0 million of anticipated
      future milestone payments.
  (4) The effective GAAP tax rate for 2009 is expected to be in the mid-to-
      high teens.
  (5) A reconciliation of 2009 GAAP net income to CNI adds back the expected
      after tax impact of amortization of intangibles ($209M) and the
      expected after tax impact of the amortization and write-offs of
      deferred loan costs ($7M).
  (6) CNI per share is based on 251.4 million fully diluted Class A shares.


DATASOURCE: Warner Chilcott Limited



CONTACT:  Rochelle Fuhrmann, Investor Relations of Warner Chilcott

Limited, [phone], or 



Web Site:  http://www.wcrx.com/ 

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