Aspen increases revenue by 41 percent

Aspen increases revenue by 41 percent                                           
Press Release                                                                   
Aspen, Southern Africa`s largest generics manufacturer and the largest          
JSE Securities Exchange listed pharmaceutical company, has announced an         
excellent performance for the financial year ended June 2002.                   
Turnover from continuing operations increased by 41 percent to R1.577           
billion (R1.118 billion).                                                       
Operating profit from continuing operations before amortisation of              
intangible assets rose 45 percent from R298.2 million to R431.5 million.        
Headline earnings per share (HEPS) from continuing operations grew by 36        
percent to 65 cents (47.9 cents).                                               
A dividend of 11 cents (8 cents) was declared.                                  
Stephen Saad, Group Chief Executive said "the success of new product            
launches has contributed to the Group`s strong performance in building          
from the excellent interim results reported in February 2002".                  
The impressive results from the South African operations are attributed         
to increased market penetration, numerous successful product launches           
and the Pharmaceutical Division`s distinguished performance. Aspen`s            
dominant generic leadership position was further boosted with the               
launches of Minerva (the oral contraceptive generic of Diane-35) and AP-        
Loratadine (the anti-histamine generic of Clarityne). Ongoing growth in         
state tender business further enhanced Aspen`s generic market share             
growth, reinforcing the company as South Africa`s leading manufacturer          
of quality generic products.                                                    
Aspen`s growth in the Ethical market was fueled by Mybulen (the non-            
narcotic analgesic) which has become one of Aspen`s leading brands and          
which continues to significantly increase its market share.  A 12-year          
marketing agreement was also concluded with Novartis in March 2002,             
enabling Aspen to promote twelve Novartis products including Voltaren,          
Slow-K, Estraderm and Syntocinon, a move with promises to further               
enhance the performance of this division.                                       
The Consumer and FMCG Divisions continued to deliver reasonable margins         
and maintained their market share amidst difficult trading conditions.          
Aspen`s offshore operations in the United Kingdom and Australia                 
performed admirably during their first full year of operation,                  
contributing 19 percent to the Group`s revenue.                                 
"Aspen`s strategic approach toward providing quality affordable generic         
anti retrovirals (ARV`s) for HIV/AIDS sufferers has progressed                  
significantly, firmly positioning us to deliver on this initiative in           
the foreseeable future," said Saad.                                             
Aspen is focused on playing a meaningful role in the fight against the          
HIV/AIDS pandemic by manufacturing desperately needed quality, cost             
effective generic ARV`s. The agreement concluded with Bristol Meyers            
Squibb (BMS) which authorises Aspen to produce Stavudine and Didanosine         
- the generics of BMS` patented ARV molecules, is currently under review        
by the Medicines Control Council (MCC).  Aspen has submitted the                
dossiers to the MCC under their fast track approval process. Once               
approval is granted the company can begin supplying products to the             
market immediately. The ARV`s have already undergone a development              
process and the requisite bio-studies, with the results showing that            
Aspen`s generic ARV`s are consistent with the original products.  A             
further agreement concluded with GlaxoSmithkline has enabled Aspen to           
begin development on the generics of Combivir, AZT and 3TC, and the             
company expects to be able to submit these to the MCC for approval              
within six months.                                                              
Saad said "Aspen`s focus on supplying generic ARV`s is such that we have        
committed our development facilities entirely to this matter, and we`ve         
managed to develop the BMS products in record time. The South African           
corporate market is showing a lot of activity in introducing HIV/AIDS           
strategies for their employees and we expect to receive their support as        
a fellow South African manufacturer".                                           
Record volumes have been produced at Aspen`s Port Elizabeth and East            
London facilities. "Our high volumes of production during the past year         
have led to capacity constraints. Following a strategic review of our           
production capabilities, we realised that we need to invest in order to         
retain our position as a competitive producer of quality pharmaceutical         
products. A R150 million investment for the enlargement and enhancement         
of the existing production facilities in Port Elizabeth has been                
authorized," said Saad.                                                         
Earlier this year Aspen concluded an empowerment deal with CEPPWAWU             
Investments, the investment arm of the COSATU Affiliated Union CEPPWAWU.        
Aspen recognises the importance of transformation and black empowerment,        
and selected CEPPWAWU as an empowerment partner offering the right fit          
for the business.                                                               
Future prospects remain positive thanks to the strong product pipeline          
and continued focus on strengthening the offshore operations. As the            
dominant generic market leader, Aspen is positively positioned to               
benefit from generic substitution, be it legislated or funder driven.           
ends                                                                           
Issued by:     Shauneen Beukes, Shauneen Beukes Communications                  
               Tel & Fax: (012) 661-8467                                        
               Cell: 082 389 8900                                               
On Behalf Of:  Stephen Saad, Aspen Pharmacare Group Chief Executive             
Tel: (031) 268 9506                                              

               Fax: (031) 208-0170                                              
               Cell:  083 303 4833                                              
               Gus Attridge, Aspen Pharmacare Deputy Group Chief                
Executive                                                        

               Tel: (031) 268 9505                                              
               Fax: (031) 208 0170                                              
               Cell: 083 628 8813                                               
Date: 21/08/2002 11:01:00 AM Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department