ASPEN SEES EXCELLENT PROSPECTS

MONDAY SEPTEMBER 27, 1999

DYNAMIC PHARMACEUTICALS GROUP ASPEN HEALTHCARE HOLDINGS PRODUCED ATTRIBUTABLE
EARNINGS OF R55,0 MILLION IN THE 12 MONTHS TO JUNE 30, 1999, FROM A TURNOVER OF
R522,4 MILLION. THIS TRANSLATES INTO HEADLINE EARNINGS PER SHARE FROM
CONTINUING OPERATIONS OF 19,5 CENTS.

IT WAS A YEAR OF DRAMATIC CHANGE, WHICH SAW ASPEN TRANSFORMED INTO THE SECOND
LARGEST PLAYER IN THE SOUTH AFRICAN PHARMACEUTICALS SECTOR. AS A CONSEQUENCE OF
THE MATERIAL CHANGE IN THE SHAPE OF THE GROUP, THE RESULTS ARE NOT DIRECTLY
COMPARABLE WITH THOSE OF THE PRECEDING 14 MONTHS.

ASPEN REVERSE-LISTED INTO MEDHOLD ON JULY 1, 1998, AND THE JSE LISTING NAME WAS
CHANGED TO ASPEN HEALTHCARE HOLDINGS LIMITED IN FEBRUARY THIS YEAR. ON MARCH 1,
ASPEN ACQUIRED THE PHARMACEUTICALS BUSINESS OF SA DRUGGISTS.

THE GROUP HAS NOT DECLARED A DIVIDEND. THIS IS IN LINE WITH A COMMITMENT TO
REDUCE INTEREST-BEARING DEBT, THE SHORT-TERM PORTION OF WHICH STOOD AT R516
MILLION AT YEAR-END. THE DEBT IS AS A RESULT OF THE GEARED SAD ACQUISITION.
JOINT CEO STEPHEN SAAD SAYS DEBT REDUCTION IS A MANAGEMENT PRIORITY AND IT WILL
BE ACHIEVED THROUGH UNLOCKING VALUE FROM NON-CORE ASSETS, DEBT RESTRUCTURING
AND INCREASED OPERATIONAL CASH FLOWS.

HE SAYS PERFORMANCE OVER THE NEXT 12 MONTHS WILL STRENGTHEN PROGRESSIVELY DUE
TO SEASONAL WEIGHTING, THE LESSENING DEBT BURDEN AND THE IMPACT OF NEW
STRATEGIES.

MR SAAD SAYS SOUTHERN AFRICAN HEALTHCARE MARKETS OFFER EXCELLENT OPPORTUNITIES
FOR ENTREPRENEURIAL COMPANIES SUCH AS ASPEN. HE SAYS A NEW PRODUCT PIPELINE,
IMPROVED PRODUCTION OF EXISTING BRANDS AND BETTER MARGINS WILL ENHANCE THE
GROUP'S PROSPECTS.

HE SAYS ASPEN BUSINESSES, PRIOR TO THE SAD ACQUISITION, MADE AN OPERATING
PROFIT OF R37,4 MILLION ON A TURNOVER OF R141,5 MILLION. THIS WAS IN LINE WITH
EXPECTATIONS, DESPITE THE DEMAND FOR FLU REMEDIES BEING LOWER THAN NORMAL.
THE FOCUS OF PHARMACARE, A MAJOR ELEMENT OF THE SAD ACQUISITION, HAD BEEN
SHIFTED FROM MANUFACTURING TO MARKETING. RESEARCH HAD BEEN REDIRECTED SO AS TO
ENABLE THE COMPANY TO CAPITALISE ON ITS CORE STRENGTHS OF GENERIC DEVELOPMENT.
ALSO ENHANCING ASPEN'S POSITION AS THE LEADING PROVIDER OF GENERIC MEDICINES IS
AN AGREEMENT WITH CANADIAN OFF-PATENT PHARMACEUTICALS DEVELOPER APOTEX TO
ACQUIRE ITS EXISTING AND PENDING GENERIC REGISTRATIONS AND ACCESS TO ITS
EXTENSIVE DEVELOPMENT PIPELINE.

OFFSHORE BUSINESSES ACQUIRED FROM SAD WORE SERIOUSLY UNDERPERFORMING, WITH AN
OPERATING LOSS OF R1 MILLION IN THE FOUR MONTHS TO JUNE 30. ASPEN IS

INVESTIGATING THE OPTIONS OF DISPOSAL, DOWNSIZING OR CLOSURE FOR THESE
BUSINESSES AND EXPECTS TO HAVE IMPLEMENTED ITS STRATEGY BY MARCH 2000.
ASPEN HAS CREATED A GENERAL PROVISION OF R50,0 MILLION FOR UNFORESEEN OR
UNQUANTIFIABLE RISKS ASSOCIATED WITH THE ACQUISITION OF SAD BUSINESSES AND THE
SUBSEQUENT DISPOSAL OF CERTAIN COMPONENTS.

LAST WEEK, ASPEN ANNOUNCED THAT IT HAD REACH AGREEMENT TO SELL GENERICS
DISTRIBUTOR LAGAP PHARMACEUTICALS, ONE OF THE FORMER SAD OFFSHORE COMPANIES
REGISTERED IN THE UNITED KINGDOM, TO ADCOCK INGRAM FOR R310 MILLION CASH.
IN LINE WITH ASPEN'S ACCOUNTING POLICY, INTELLECTUAL PROPERTY - AMOUNTING TO
R843 MILLION - ACQUIRED DURING THE YEAR HAS BEEN CHARGED AGAINST SHARE PREMIUM
AND OPENING DISTRIBUTABLE RESERVES. TAX EXPENSES INCLUDE R24,1 MILLION IN
RESPECT OF THE PROPORTIONAL REVERSAL OF THE DEFERRED TAX ASSET CREATED AS A
RESULT OF THE GROUP'S ACCOUNTING POLICY FOR INTELLECTUAL PROPERTY.
ENDS
ISSUED BY        :   KATE ALEXANDER
OF               :   SIMEKA TWS COMMUNICATIONS
PHONE            :   (031) 203-9800
CELL             :   (083) 626-6274
E-MAIL           :   KATEA@STWS.ADCORP.CO.ZA
ON BEHALF OF     :   ASPEN HEALTHCARE HOLDINGS
CONTACT          :   STEPHEN SAAD
PHONE            :   (031) 268-9500