-- Fiscal third quarter revenue from continuing operations increased $25

million, or 5%, to $506 million as compared to $481 million this quarter

a year ago__

-- Fiscal third quarter earnings from continuing operations were a record

$0.50 per share__

-- Consumer Healthcare fiscal third quarter revenue increased by $46

million or 12%__

-- Company revises adjusted full year fiscal 2009 income from continuing

operations guidance to be in a range of $1.80 to $1.90 per share from

previously announced $1.75 to $1.90__

-- The Israel Consumer Products business has been classified as

discontinued operations and a sales process has commenced__

Perrigo Company (Nasdaq: PRGO; TASE) today announced results for its fiscal year 2009 third quarter and nine months that ended March 28, 2009.

Perrigo Company

(from continuing operations, in thousands, except per share amounts)

Third Quarter__ Nine Months

__ 2009__ 2008__ 2009__ 2008

----__ ----__ ----__ ----

Net Sales__ $505,902 $480,640 $1,498,653 $1,255,639

Reported Income__ $46,469__ $40,230__ $108,818__ $108,037

Adjusted Income__ $46,999__ $44,527__ $127,710__ $112,334

Reported Diluted EPS__ $0.50__ $0.42__ $1.16__ $1.14

Adjusted Diluted EPS__ $0.50__ $0.47__ $1.36__ $1.18

Diluted Shares__ 93,153__ 94,955__ 93,747__ 95,115__

Third Quarter Results

Net sales from continuing operations for the third quarter of fiscal 2009 were $505.9 million, an increase of 5%. Reported income from continuing operations was $46.5 million, or $0.50 per share, compared with $40.2 million, or $0.42 per share, a year ago, an increase of 16%. Excluding charges as outlined in Table II at the end of this release, third quarter fiscal 2009 adjusted income from continuing operations was $47.0 million, or $0.50 per share.

(Refer to Table II at the end of this press release for additional adjustments in the current year period and additional non- GAAP disclosure information.)

As part of management's strategic review of its portfolio of businesses, in March 2009, the Company committed to a plan to sell its Israel Consumer Products business. The results of this business are reflected in the condensed consolidated financial statements as discontinued operations for all periods presented. The Company has engaged the investment banking firms of William Blair and Poalim Capital Markets to assist in this sale process, which is expected to be completed within one year.

Perrigo's Chairman and CEO Joseph C. Papa stated, "I am very pleased with our record third quarter sales and earnings. In this quarter, the over-the-counter category fell 3% versus third quarter last year and the national brand category fell more than 7%, while Perrigo Consumer Healthcare grew 12%. We were able to achieve this growth rate despite the fact that we are comparing the results to the launches of Omeprazole and Cetirizine at this time last year. More consumers than ever are realizing the value that store brands have to offer."

Nine Months Results

Net sales from continuing operations for the first nine months of fiscal 2009 were $1,498.7 million, an increase of 19% over fiscal 2008. The increase was driven by the Consumer Healthcare segment and included $203.7 million of consolidated new product sales. Reported gross profit of $432.1 million was an increase of 13% over fiscal 2008, driven by the Consumer Healthcare segment. The year-to-date reported gross profit percentage in fiscal 2009 was 28.8%, down from 30.5% last year. Reported operating expenses were $240.4 million, an increase of 5% over fiscal 2008. However, as a percentage of net sales, operating expenses were 16.0%, down from 18.2% in fiscal 2008. Reported income from continuing operations was $108.8 million, relatively flat over fiscal 2008.

Consumer Healthcare

Consumer Healthcare segment net sales in the third quarter were $419.1 million compared with $373.0 million in the third quarter last year, an increase of $46.1 million or 12%. The increase resulted from approximately $39.2 million of sales from the acquisitions of JB Labs, Unico, Diba and Brunel, and $31.4 million from sales of new and existing products in the gastrointestinal, cough/cold, smoking cessation and nutrition categories. These increases were partially offset by the impact of unfavorable changes in foreign currency exchange rates of $12.4 million and the absence of the U.K.'s Vitamins, Minerals, and Supplements (VMS) business's sales of $9.8 million.

Reported operating income was $62.3 million, compared with $51.7 million a year ago, largely driven by a favorable mix of products sold both domestically and internationally, gross margins from sales by Unico and the absence of a $2.9 million charge to cost of sales related to the step-up in value of inventory acquired in the Galpharm acquisition that was recognized in fiscal 2008. Adjusted operating income was $63.0 million, an increase of 15% compared to a year ago.

For the first nine months of fiscal year 2009, Consumer Healthcare net sales increased 28% or $270.3 million compared to fiscal 2008. The increase resulted primarily from sales of new and existing products of approximately $212.7 million, primarily in the gastrointestinal, cough/cold, nutrition, smoking cessation and analgesic categories. The increase was also driven by $109.8 million of sales from JB Labs, Unico, Galpharm, Brunel and Diba. These combined increases were partially offset by the absence of the U.K.'s VMS business's sales of $25.7 million and the impact of unfavorable changes in foreign currency exchange rates of $22.4 million.

On February 20, 2009, the Company announced that it began shipping over-the-counter (OTC) Ibuprofen and Diphenhydramine Citrate Tablets, 200/38 mg (Ibuprofen PM). The product is being marketed under store brand labels and is comparable to Wyeth Consumer Healthcare's Advil(R) PM tablets, 200/38 mg, indicated as a pain reliever (NSAID)/nighttime sleep-aid. Estimated brand sales for the product for the 12 months ended December 21, 2008 were $71 million.

Rx Pharmaceuticals

The Rx Pharmaceutical segment third quarter net sales were $41.7 million compared with $49.2 million a year ago. The decrease was due primarily to the absence of the fiscal 2008 receipt of a one-time cash payment of $8.5 million from a customer in lieu of expected future minimum royalty payments, as agreed upon in a license termination agreement. Net sales were also negatively impacted by a $2.2 million reduction in non-product revenue, as well as continued pricing pressures on certain existing products in the portfolio. These decreases were partially offset by $5.1 million of increased sales volumes on other products in the portfolio.

For the first nine months of fiscal year 2009, net sales for the Rx Pharmaceutical segment decreased 6% compared to fiscal 2008. The decrease was due primarily to the aforementioned one-time cash payment of $8.5 million. The decrease in net sales was also due to an $8.2 million reduction in non-product revenue, as well as pricing pressures due to continued competition in the marketplace for generic drugs. These decreases were partially offset by new product sales of approximately $11.0 million, along with an increase in sales volumes on the Company's existing portfolio of products of approximately $7.0 million.

On March 17, 2009, the Company announced that its partner Cobrek Pharmaceuticals, Inc. (Cobrek) had filed an Abbreviated New Drug Application (ANDA) for Clindamycin Phosphate Foam 1%, a generic version of Evoclin(R) Foam 1%. The Company believes that Cobrek is the first to file an ANDA with a Paragraph IV certification against Evoclin(R). Evoclin(R) (clindamycin phosphate) Foam 1% is a topical antibiotic indicated for topical application in the treatment of acne vulgaris, and had sales of approximately $44 million for the 12 months ended January 2009, as measured by Wolters Kluwer Health.

API

The API segment reported third quarter net sales of $31.0 million compared with $37.8 million a year ago. The decrease was due primarily to the absence of a one-time $4.9 million accrual reversal related to a long standing customer contract negotiation recognized in fiscal 2008, along with approximately $2.0 million resulting from unfavorable changes in foreign currency exchange rates. Operating income was $4.3 million, compared with $6.0 million last year, reflecting the aforementioned accrual reversal, as well as unfavorable foreign currency exchange rate changes, partially offset by favorable contributions from new products, pricing improvements and lower operating expenses.

For the first nine months of fiscal year 2009, net sales decreased 13% compared to fiscal 2008. This decrease was due primarily to a decline of approximately $16.7 million in sales of three key products, the absence of the one-time $4.9 million accrual reversal mentioned above and approximately $1.0 million resulting from unfavorable changes in foreign currency exchange rates. These decreases were partially offset by a $5.3 million increase in the sales mix of existing products, along with new product sales of approximately $3.2 million.

Other

Continuing operations for the Other category, consisting of the Israel Pharmaceutical and Diagnostic Products operating segment, reported third quarter net sales of $14.1 million, compared with $20.6 million a year ago. Operating income was $2.7 million, up from $1.4 million last year. The increase in operating income was due primarily to operating expenses for fiscal 2009 decreasing by 30% compared to fiscal 2008. The decrease was due primarily to lower employee-related expenses and slightly favorable changes in the foreign exchange rate.

For the first nine months of fiscal 2009, net sales decreased $5.6 million or 9%, compared to fiscal 2008. The decrease was driven primarily by a $7.6 million impact related to a change in a customer contract. In addition, sales in the diagnostic product line decreased by approximately $2.4 million. These decreases were partially offset by changes in foreign currency exchange rates, along with increased sales due to changes in the sales mix of existing products in the remaining portfolio.

Guidance

Chairman and CEO Joseph C. Papa concluded, "We are now expecting adjusted fiscal 2009 earnings from continuing operations to be between $1.80 and $1.90 per share, which implies a year over year growth rate of adjusted earnings from continuing operations of 15% to 22% over fiscal 2008. This is revised from our previous guidance of $1.75 to $1.90 per share, excluding charges outlined in Table III at the end of this release. Looking ahead, we believe Perrigo is well positioned to continue to add value to its customers and shareholders."

Perrigo will host a conference call to discuss fiscal 2009 third quarter results at 10:00 a.m. (ET) on Thursday, May 7. The conference call and presentation slides will be available live via webcast to interested parties on the Perrigo website www.perrigo.com or by phone 877-248-9413, International 973-582-2737 and reference ID# 95095054. A taped replay of the call will be available beginning at approximately 2:00 p.m. (ET) Thursday, May 7, until midnight Friday, May 15, 2009. To listen to the replay, call 800-642-1687, International 706-645-9291, access code 95095054.

Perrigo Company is a leading global healthcare supplier that develops, manufactures and distributes OTC and generic prescription pharmaceuticals, nutritional products, active pharmaceutical ingredients (API) and pharmaceutical and medical diagnostic products. The Company is the world's largest manufacturer of OTC pharmaceutical products for the store brand market. The Company's primary markets and locations of manufacturing and logistics operations are the United States, Israel, Mexico and the United Kingdom. Visit Perrigo on the Internet (www.perrigo.com).

Note: Certain statements in this press release are forward- looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor created thereby. These statements relate to future events or the Company's future financial performance and involve known and unknown risks, uncertainties and other factors that may cause the actual results, levels of activity, performance or achievements of the Company or its industry to be materially different from those expressed or implied by any forward-looking statements. In some cases, forward-looking statements can be identified by terminology such as "may," "will," "could," "would," "should," "expect," "plan," "anticipate," "intend," "believe," "estimate," "predict," "potential" or other comparable terminology. The Company has based these forward-looking statements on its current expectations, assumptions, estimates and projections. While the Company believes these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond the Company's control. These and other important factors, including those discussed under "Risk Factors" in the Company's Form 10-K for the year ended June 28, 2008, as well as the Company's subsequent filings with the Securities and Exchange Commission, may cause actual results, performance or achievements to differ materially from those expressed or implied by these forward- looking statements. The forward-looking statements in this press release are made only as of the date hereof, and unless otherwise required by applicable securities laws, the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

PERRIGO COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share amounts)

(unaudited)

Third Quarter__ Year-to-Date

-------------__ ------------

__ 2009__ 2008__ 2009__ 2008

----__ ----__ ----__ ----

Net sales__ $505,902 $480,640 $1,498,653 $1,255,639

Cost of sales__ 356,310__ 330,337__ 1,066,509__ 873,004

-------__ -------__ ---------__ -------

Gross profit__ 149,592__ 150,303__ 432,144__ 382,635

-------__ -------__ -------__ -------

Operating expenses

Distribution__ 6,167__ 6,525__ 18,513__ 18,450

Research and

development__ 17,890__ 19,160__ 56,036__ 51,623

Selling and

administration__ 53,638__ 61,470__ 165,533__ 154,949

------__ ------__ -------__ -------

Subtotal__ 77,695__ 87,155__ 240,082__ 225,022

------__ ------__ -------__ -------

Write-off of

in-process

research and

development__ -__ 2,786__ 279__ 2,786

Restructuring__ -__ 348__ -__ 348

---__ ---__ ---__ ---

Total__ 77,695__ 90,289__ 240,361__ 228,156

------__ ------__ -------__ -------

Operating income__ 71,897__ 60,014__ 191,783__ 154,479

Interest, net__ 6,966__ 3,686__ 20,465__ 12,009

Other (income)

expense, net__ 1,160__ 353__ 2,565__ (905)

Investment impairment__ -__ -__ 15,104__ -

------__ ------__ ------__ ------

Income from continuing

operations before

income taxes__ 63,771__ 55,975__ 153,649__ 143,375

Income tax expense__ 17,302__ 15,745__ 44,831__ 35,338

------__ ------__ ------__ ------

Income from

continuing

operations__ 46,469__ 40,230__ 108,818__ 108,037

Income (loss) from

discontinued

operations, net

of tax__ (572)__ (263)__ 30__ 238

----__ ----__ --__ ---

Net income__ $45,897__ $39,967__ $108,848__ $108,275

=======__ =======__ ========__ ========

Earnings (loss) per

share

Basic

Continuing

operations__ $0.51__ $0.43__ $1.18__ $1.16

Discontinued

operations__ (0.01)__ 0.00__ 0.00__ 0.00

-----__ ----__ ----__ ----

Basic

earnings per

share__ $0.50__ $0.43__ $1.18__ $1.16

Diluted

Continuing

operations__ $0.50__ $0.42__ $1.16__ $1.14

Discontinued

operations__ (0.01)__ 0.00__ 0.00__ 0.00

-----__ ----__ ----__ ----

Diluted

earnings per

share__ $0.49__ $0.42__ $1.16__ $1.14

Weighted average

shares outstanding

Basic__ 91,967__ 92,854__ 92,251__ 93,127

Diluted__ 93,153__ 94,955__ 93,747__ 95,115

Dividends

declared per

share__ $0.055__ $0.050__ $0.160__ $0.145

PERRIGO COMPANY

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

(unaudited)

March 28,__ June 28,__ March 29,

__ 2009__ 2008__ 2008

----__ ----__ ----

Assets

Current assets

Cash and cash equivalents__ $197,817__ $318,599__ $64,113

Investment securities__ 5__ 560__ 725

Accounts receivable, net__ 331,307__ 317,875__ 347,058

Inventories__ 383,010__ 374,782__ 335,905

Current deferred income taxes__ 40,447__ 42,241__ 36,631

Income taxes refundable__ 12,191__ 12,841__ 6,412

Prepaid expenses and

other current assets__ 26,904__ 36,951__ 18,634

Current assets of

discontinued operations__ 45,796__ 58,968__ 48,100

------__ ------__ ------

Total current assets__ 1,037,477__ 1,162,817__ 857,578

Property and equipment__ 724,242__ 719,593__ 685,323

Less accumulated depreciation__ (385,780)__ (381,053)__ (366,048)

--------__ --------__ --------

338,462__ 338,540__ 319,275

Restricted cash__ 400,000__ 400,000__ 400,000

Goodwill and other indefinite-

lived intangible assets__ 249,960__ 287,112__ 269,608

Other intangible assets__ 208,093__ 220,724__ 222,346

Non-current deferred income taxes__ 70,610__ 73,726__ 50,128

Other non-current assets__ 45,101__ 63,914__ 49,937

Non-current assets of

discontinued operations__ 22,181__ 34,202__ 30,241

------__ ------__ ------

$2,371,884 $2,581,035 $2,199,113

========== ========== ==========

Liabilities and

Shareholders' Equity

Current liabilities

Accounts payable__ $232,875__ $235,922__ $216,030

Notes payable__ -__ -__ 10,169

Payroll and related taxes__ 51,949__ 70,977__ 49,910

Accrued customer programs__ 52,789__ 53,419__ 45,537

Accrued liabilities__ 49,435__ 55,055__ 38,162

Current deferred income taxes__ 16,120__ 24,493__ 18,864

Current portion of

long-term debt__ 15,869__ 20,095__ 17,598

Current liabilities of

discontinued operations__ 18,975__ 31,659__ 21,493

------__ ------__ ------

Total current

liabilities__ 438,012__ 491,620__ 417,763

Non-current liabilities

Long-term debt, less

current portion__ 875,000__ 895,095__ 697,598

Non-current

deferred income

taxes__ 133,955__ 138,158__ 111,483

Other non-current liabilities__ 74,770__ 112,396__ 102,472

Non-current liabilities of

discontinued operations__ 9,391__ 10,051__ 9,233

-----__ ------__ -----

Total non-

current

liabilities__ 1,093,116__ 1,155,700__ 920,786

Shareholders' equity

Preferred stock, without par

value, 10,000 shares authorized__ -__ -__ -

Common stock, without par value,

200,000 shares authorized__ 448,589__ 488,537__ 498,002

Accumulated other

comprehensive income__ 8,111__ 155,184__ 95,398

Retained earnings__ 384,056__ 289,994__ 267,164

-------__ -------__ -------

Total

shareholders'

equity__ 840,756__ 933,715__ 860,564

-------__ -------__ -------

$2,371,884 $2,581,035 $2,199,113

========== ========== ==========

Supplemental Disclosures of

Balance Sheet Information

Allowance for doubtful accounts__ $9,750__ $7,511__ $7,419

Working capital from

continuing operations__ $572,644__ $643,888__ $413,208

Preferred stock, shares issued__ -__ -__ -

Common stock, shares issued__ 92,171__ 93,311__ 93,380

PERRIGO COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

Year-To-Date

------------

__ 2009__ 2008

----__ ----

Cash Flows From (For)

Operating Activities

Net income__ $108,848 $108,275

Adjustments to derive cash flows

Write-off of in-process

research and development__ 279__ 2,786

Depreciation and amortization__ 50,906__ 50,822

Asset impairments__ 16,704__ -

Share-based compensation__ 7,322__ 6,457

Income tax benefit from

exercise of stock options__ (2,673)__ 3,245

Excess tax benefit of

stock transactions__ (2,970)__ (8,253)

Deferred income taxes__ 811__ 1,846

---__ -----

Sub-total__ 179,227__ 165,178

------- -------

Changes in operating assets

and liabilities, net of

asset and business

acquisitions and

restructuring

Accounts receivable__ (6,053) (71,497)

Inventories__ (9,007) (37,314)

Income taxes refundable__ (10,617)__ (4,684)

Accounts payable__ (4,219)__ 52,513

Payroll and related taxes__ (21,258)__ 6,958

Accrued customer programs__ (580)__ (2,445)

Accrued liabilities__ (16,907) (14,771)

Accrued income taxes__ 19,726__ 20,342

Other__ (28,729)__ 17,969

-------__ ------

Sub-total__ (77,644) (32,929)

------- -------

Net cash from

operating

activities__ 101,583__ 132,249

------- -------

Cash Flows (For) From

Investing Activities

Purchase of securities__ - (170,552)

Proceeds from sales of securities__ -__ 201,436

Cash acquired in asset exchange__ 2,115__ -

Acquisitions of

businesses, net of cash

acquired__ (88,248) (87,130)

Acquisition of intangible assets__ (1,000) (12,401)

Additions to

property and

equipment__ (32,020) (26,022)

------- -------

Net cash for

investing

activities__ (119,153) (94,669)

-------- -------

Cash Flows (For) From

Financing Activities

Repayments of short-term debt, net__ (13,736)__ (1,607)

Borrowings of long-term debt__ -__ 140,000

Repayments of long-term debt__ (31,380) (95,801)

Excess tax benefit of

stock transactions__ 2,970__ 8,253

Issuance of common stock__ 9,434__ 26,097

Repurchase of common stock__ (62,347) (58,979)

Cash dividends__ (14,786) (13,551)

------- -------

Net cash (for) from

financing activities__ (109,845)__ 4,412

--------__ -----

Effect of exchange

rate changes on cash__ 6,632__ (7,895)

-----__ ------

Net increase (decrease) in

cash and cash equivalents__ (120,783)__ 34,097

Cash and cash equivalents of continuing

operations, beginning of period__ 318,599__ 30,301

Cash balance of discontinued

operations, beginning of period__ 5__ 4

-----__ ------

Cash and cash

equivalents, end of

period__ 197,821__ 64,402

Less cash balance of

discontinued operations, end of

period__ (4)__ (289)

--__ ----

Cash and cash equivalents of

continuing operations, end of period__ $197,817__ $64,113

======== =======

Supplemental Disclosures of

Cash Flow Information

Cash paid/received

during the period for:

Interest paid__ $33,829__ $29,102

Interest received__ $18,872__ $15,590

Income taxes paid__ $60,105__ $25,715

Income taxes refunded__ $3,627__ $6,560

Table I

PERRIGO COMPANY

SEGMENT INFORMATION

(in thousands)

(unaudited)

Third Quarter__ Year-to-Date

-------------__ -------------

__ 2009__ 2008__ 2009__ 2008

----__ ----__ ----__ ----

Segment Net Sales

Consumer Healthcare__ $419,148 $373,031 $1,231,761__ $961,495

Rx Pharmaceuticals__ 41,747__ 49,231__ 115,323__ 122,846

API__ 30,953__ 37,818__ 97,062__ 111,240

Other__ 14,054__ 20,560__ 54,507__ 60,058

------__ ------__ ------__ ------

Total__ $505,902 $480,640 $1,498,653 $1,255,639

======== ======== ========== ==========

Segment Operating Income (Loss)

Consumer Healthcare__ $62,278__ $51,693__ $177,697__ $120,549

Rx Pharmaceuticals__ 7,982__ 11,349__ 16,938__ 27,160

API__ 4,344__ 6,024__ 5,842__ 16,723

Other__ 2,726__ 1,368__ 5,327__ 6,221

Unallocated expenses__ (5,433) (10,420)__ (14,021)__ (16,174)

------__ -------__ -------__ -------

Total__ $71,897__ $60,014__ $191,783__ $154,479

=======__ =======__ ========__ ========

*All information based on continuing operations.

Table II

PERRIGO COMPANY

RECONCILIATION OF NON-GAAP MEASURES

(in thousands, except per share amounts)

(unaudited)

Third Quarter__ Year-to-Date

-------------__ -------------

__ 2009__ 2008__ 2009__ 2008

----__ ----__ ----__ ----

Net sales__ $505,902 $480,640 $1,498,653 $1,255,639

Reported gross

profit__ $149,592 $150,303__ $432,144__ $382,635

Inventory

step-up -

Unico__ -__ -__ 1,062__ -

Inventory

step-up -

Diba__ 736__ -__ 1,503__ -

Inventory

step-up - JB

Labs__ -__ -__ 358__ -

Impairment of

fixed assets__ -__ -__ 1,600__ -

Inventory

step-up -

Galpharm__ -__ 2,878__ -__ 2,878

-----__ -----__ -----__ -----

Adjusted gross

profit__ $150,328 $153,181__ $436,667__ $385,513

======== ========__ ========__ ========

Adjusted gross

profit %__ 29.7%__ 31.9%__ 29.1%__ 30.7%

Reported

operating

income__ $71,897__ $60,014__ $191,783__ $154,479

Inventory

step-up -

Unico__ -__ -__ 1,062__ -

Inventory

step-up -

Diba__ 736__ -__ 1,503__ -

Inventory

step-up - JB

Labs__ -__ -__ 358__ -

Impairment of

fixed assets__ -__ -__ 1,600__ -

Write-off of

in-process

R&D - Diba

acquisition__ -__ -__ 279__ -

Loss on asset

exchange__ -__ -__ 639__ -

Inventory

step-up -

Galpharm__ -__ 2,878__ -__ 2,878

Restructuring__ -__ 348__ -__ 348

Write-off of

in-process

R&D -

Galpharm

acquisition__ -__ 2,786__ -__ 2,786

------__ -----__ ------__ -----

Adjusted

operating

income__ $72,633__ $66,026__ $197,224__ $160,491

=======__ =======__ ========__ ========

Adjusted

operating

income %__ 14.4%__ 13.7%__ 13.2%__ 12.8%

Reported income

from continuing

operations__ $46,469__ $40,230__ $108,818__ $108,037

Inventory

step-up -

Unico (5)__ -__ -__ 645__ -

Inventory

step-up -

Diba (1)__ 530__ -__ 1,082__ -

Inventory

step-up - JB

Labs (2)__ -__ -__ 229__ -

Impairment of

fixed assets (4)__ -__ -__ 992__ -

Write-off of

in-process

R&D - Diba

acquisition (1)__ -__ -__ 201__ -

Investment

impairment (6)__ -__ -__ 15,104__ -

Loss on asset

exchange (6)__ -__ -__ 639__ -

Inventory

step-up -

Galpharm (1)__ -__ 2,072__ -__ 2,072

Restructuring (3)__ -__ 219__ -__ 219

Write-off of

in-process

R&D -

Galpharm

acquisition (1)__ -__ 2,006__ -__ 2,006

-----__ -----__ -----__ -----

Adjusted income

from continuing

operations__ $46,999__ $44,527__ $127,710__ $112,334

=======__ =======__ ========__ ========

Diluted earnings

per share from

continuing

operations

Reported__ $0.50__ $0.42__ $1.16__ $1.14

Adjusted__ $0.50__ $0.47__ $1.36__ $1.18

Diluted

weighted

average shares

outstanding__ 93,153__ 94,955__ 93,747__ 95,115

(1) Net of taxes at 28%

(2) Net of taxes at 36%

(3) Net of taxes at 37%

(4) Net of taxes at 38%

(5) Net of taxes at 39.3%

(6) No tax impact

*All information based on continuing operations.

Table II (Continued)

REPORTABLE SEGMENTS

RECONCILIATION OF NON-GAAP MEASURES

(in thousands)

(unaudited)

Third Quarter__ Year-to-Date

-------------__ -------------

__ 2009__ 2008__ 2009__ 2008

----__ ----__ ----__ ----

Consumer Healthcare

Net sales__ $419,148 $373,031 $1,231,761 $961,495

Reported gross

profit__ $116,068 $107,819__ $340,351 $266,728

Inventory step-

up - Unico__ -__ -__ 1,062__ -

Inventory step-

up - Diba__ 736__ -__ 1,503__ -

Inventory step-

up - JB Labs__ -__ -__ 358__ -

Impairment of

fixed assets__ -__ -__ 1,600__ -

Inventory step-

up - Galpharm__ -__ 2,878__ -__ 2,878

-----__ -----__ -----__ -----

Adjusted gross

profit__ $116,804 $110,697__ $344,874 $269,606

======== ========__ ======== ========

Adjusted gross

profit %__ 27.9%__ 29.7%__ 28.0%__ 28.0%

Reported operating

expenses__ $53,790__ $56,126__ $162,654 $146,179

Loss on asset

exchange__ -__ -__ (639)__ -

Restructuring__ -__ (348)__ -__ (348)

----__ ----__ ----__ ----

Adjusted operating

expenses__ $53,790__ $55,778__ $162,015 $145,831

=======__ =======__ ======== ========

Adjusted operating

expenses %__ 12.8%__ 15.0%__ 13.2%__ 15.2%

Reported operating

income__ $62,278__ $51,693__ $177,697 $120,549

Inventory step-

up - Unico__ -__ -__ 1,062__ -

Inventory step-

up - Diba__ 736__ -__ 1,503__ -

Inventory step-

up - JB Labs__ -__ -__ 358__ -

Impairment of

fixed assets__ -__ -__ 1,600__ -

Loss on asset

exchange__ -__ -__ 639__ -

Inventory step-

up - Galpharm__ -__ 2,878__ -__ 2,878

Restructuring__ -__ 348__ -__ 348

---__ ---__ ---__ ---

Adjusted operating

income__ $63,014__ $54,919__ $182,859 $123,775

=======__ =======__ ======== ========

Adjusted operating

income %__ 15.0%__ 14.7%__ 14.8%__ 12.9%

Unallocated

Reported operating

loss__ $(5,433) $(10,420)__ $(14,021) $(16,174)

Write-off of in-

process R&D -

Diba acquisition

-__ -__ 279__ -

Write-off of in-

process R&D -

Galpharm

acquisition__ -__ 2,786__ -__ 2,786

-----__ -----__ -----__ -----

Adjusted operating

loss__ $(5,433) $(7,634)__ $(13,742) $(13,388)

=======__ =======__ ======== ========

*All information based on continuing operations.

Table III

2009 GUIDANCE

RECONCILIATION OF NON-GAAP MEASURES

(unaudited)

Full Year

Fiscal 2009 Guidance

--------------------

Reported earnings

per share from

continuing

operations range__ $1.60 - $1.70

Loss on asset

exchange__ $0.007

Charges

associated with

inventory step-

ups__ $0.021

Fixed asset

impairment__ $0.011

Write-off of in-

process R&D__ $0.002

Investment

impairment__ $0.161

------

Adjusted earnings

per share from

continuing

operations range__ $1.80 - $1.90

===============__

SOURCE Perrigo Company

Originally published by Perrigo Company.

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