ASPEN SHEDS NON-CORE INFANT NUTRITIONAL BUSINESS

TUESDAY, FEBRUARY 08, 2000

IN A MAJOR MOVE TO SHED ITS NON-CORE INFANT NUTRITIONAL BUSINESS, ASPEN
HEALTHCARE HOLDINGS HAS CONCLUDED A DEAL WITH AMERICAN HOME PRODUCTS
CORPORATION (AHP).

JOINT CHIEF EXECUTIVE STEPHEN SAAD SAYS THE DEAL REDEFINES THE LICENCE
AGREEMENTS BETWEEN THE TWO PHARMACEUTICAL OPERATORS.

AHP WILL PAY ASPEN FOR EARLY TERMINATION OF THE LICENCE TO MARKET AND

DISTRIBUTE INFANT NUTRITIONAL PRODUCTS AND CERTAIN ORAL CONTRACEPTIVES. AS PART
OF THE DEAL, ASPEN HAS SECURED AN EXTENDED LICENCE ON FURTHER ORAL

CONTRACEPTIVES AND A BASKET OF ETHICAL AND OVER-THE-COUNTER PRODUCTS.

MR SAAD SAYS, "AHP HAVE REGAINED CONTROL OVER SOME PRODUCTS THEY SEE AS
STRATEGICALLY IMPORTANT. IN EXCHANGE FOR THIS WE HAVE EXTENDED THE RIGHTS TO
PRODUCTS WITH AN ANNUAL TURNOVER OF R60 MILLION FOR PERIODS ENDING BETWEEN 2010
AND 2030."

THE INFANT NUTRITIONAL COMPONENT IS EFFECTIVE FROM APRIL 1, 2000.

AHP'S PAYMENT AND THE REALISATION OF ASSETS SHOULD RAISE R75-MILLION FOR ASPEN
BEFORE ITS FINANCIAL YEAR END ON JUNE 30, 2000.

ASPEN'S SPECIALIST INFANT NUTRITIONAL MANUFACTURING FACILITY AND THE INFACARE
TRADEMARK UNDER WHICH THE PRODUCTS HAVE BEEN MARKETED ARE NOT PART OF THE AHP
DEAL. "HOWEVER, THERE HAS BEEN SUBSTANTIAL INTEREST IN THESE ASSETS AND
DISCUSSIONS ARE AT AN ADVANCED STAGE ON A POTENTIAL DISPOSAL," SAYS MR SAAD.
ENDS
ISSUED BY          :    DAVID GODDIN
OF                 :    SIMEKA TWS COMMUNICATIONS
PHONE              :    (031) 203-9824
CELL               :    (082) 558-7906
E-MAIL             :    DAVIDG@STWS.ADCORP.CO.ZA
ON BEHALF OF       :    ASPEN HEALTHCARE HOLDINGS
CONTACT            :    STEPHEN SAAD
PHONE              :    (031) 268-9500