News Release Detail

July 25, 2002

Mylan Reports Record First Quarter Revenue and Earnings

Mylan Reports Record First Quarter Revenue and EarningsPITTSBURGH, Jul 25, 2002 (BUSINESS WIRE) --

Financial Highlights
--  Net revenues increased 16% to $275.5 million.
--  Gross profit increased 21% to $147.6 million.
--  Net earnings increased 22% to $61.8 million.
--  Earnings per diluted share increased 22% to $.49 per share.
Mylan Laboratories Inc. (NYSE:MYL) announced today financial results for the first quarter fiscal 2003. Net revenues grew 16% to $275.5 million for the quarter ended June 30, 2002, from $237.9 million for the quarter ended June 30, 2001.

Net earnings and earnings per diluted share increased 22% to $61.8 million or $.49 per diluted share from $50.6 million or $.40 per diluted share from the prior year quarter. The increase in net revenues was primarily attributable to volume growth, relatively stable pricing for generic products and the launch of new products, as well as improved marketing conditions for the brand products. Net earnings and earnings per diluted share were driven by higher sales and gross profit as well as lower operating expenses.

Milan Puskar, Chairman and CEO, commented, "We experienced the strongest first quarter earnings in Mylan's history and exceeded our prior year's first quarter earnings, a quarter which included the exclusivity on buspirone. We have built our generic business upon strong fundamentals that continue to produce excellent results."

Effective April 1, 2002, the Company adopted Statement of Financial Accounting Standard (SFAS) No. 142, Goodwill and Other Intangible Assets, and consequently, goodwill and certain other intangibles were not amortized in the current quarter. The financial results for the quarter ended June 30, 2001, include amortization of goodwill and certain other intangibles of $1.8 million. Excluding this amortization, net earnings and earnings per diluted share for the quarter ended June 30, 2001, would have been $52.4 million or $.42 per share.

    Second Quarter and Fiscal 2003 Earnings Guidance
We anticipate diluted earnings per share of $.48 to $.52 for the quarter ending September 30, 2002, and confirm our prior guidance for fiscal 2003 of $2.05 to $2.09 per diluted share.

Segment Information
                                        June 30,
                                -----------------------
                                   2002         2001      Change
                                   ----         ----      ------
Net Revenues (in millions)
   Generic Segment                $ 235.6      $ 209.8      12%
   Brand Segment                     39.8         28.1      42%
       Total                        275.5        237.9      16%
    Generic Segment
Net revenues for the current quarter increased 12% or $25.8 million to $235.6 million from $209.8 million for the prior year. Earnings from operations were $106.3 million for the current quarter compared to $89.4 million for the prior year, an increase of 19% or $16.9 million.

The increases in net revenues and earnings from operations were attributable to increased sales volume, relatively stable pricing, new product launches and decreased operating expenses. The volume increase in generic products was the result of our ability to reliably supply customers with quality products at competitive prices.

    Brand Segment
Net revenues for the current quarter increased 42% or $11.7 million to $39.8 million from $28.1 million for the prior year. The loss from operations for the current quarter was $0.4 million compared to a loss of $10.9 million for the prior year. The improvement in net revenues and loss from operations was due to increased sales volume and improved marketing conditions resulting from the curtailment of end-of-quarter promotions in the prior year.

Overall, operating expenses remained consistent with the prior year. Research and development expenses were relatively unchanged. We anticipate research and development expenses to increase in future quarters as activities related to nebivolol progress. Selling and marketing expenses increased by 17% or $2.1 million from the prior year. Marketing efforts continue to focus on existing products, as well as the anticipated launch of isotretinoin, a product indicated for severe acne. General and administrative expenses decreased by 37% or $1.5 million from the prior year, which included the expenses related to the relocation of the Brand segment to Research Triangle Park, North Carolina.

    Corporate/Other Segment
General and administrative expenses for the current quarter decreased $2.8 million to $11.3 million from $14.1 million for the prior year. The decrease was primarily the result of the adoption of SFAS No. 142 and goodwill not being amortized in the current quarter. Other income decreased $12.1 million to $3.3 million for the current quarter from $15.4 million for the prior year. The decrease was primarily due to decreased earnings from investments and lower interest income.

During the quarter, the Company initiated the purchase of common stock under a stock purchase program and has acquired approximately 1.5 million shares to date. Such purchases had a de minimis impact on current quarter earnings per share data.

    Conference Call and Live Webcast
A conference call and live webcast to discuss this earnings release and other matters of interest to investors and analysts will be held today at 10:00 a.m. EDT. The dial-in number to access this call is 913/981-4910. A replay of the conference call will be available from approximately 12:00 p.m. EDT on July 25 through 12:00 p.m. EDT on August 1, and can be accessed by dialing 888/203-1112 with access pass code 342573.

To access the live webcast, go to Mylan's website at www.mylan.com and click on the webcast icon at least 15 minutes before the call is to begin to register and download or install any necessary audio software. If you are unable to listen to the live webcast, please access www.mylan.com at any time within seven days to listen to a replay of the webcast.

This press release contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. No forward-looking statement can be guaranteed, and actual results may differ materially from those projected. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise. Forward-looking statements in this document should be evaluated together with the many uncertainties that affect our businesses, particularly those mentioned in the cautionary statements in Item 7 of our Form 10-K for the fiscal year ended March 31, 2002, and other periodic reports filed with the Securities and Exchange Commission.

Mylan Laboratories Inc. is a leading pharmaceutical company that develops, manufactures and markets generic and proprietary prescription products. Mylan has two operating segments that market an extensive line of generic and branded products through four business units: Mylan Pharmaceuticals Inc., Mylan Technologies Inc., UDL Laboratories Inc. and Bertek Pharmaceuticals Inc. For more information about Mylan, visit www.mylan.com.

               MYLAN LABORATORIES INC. AND SUBSIDIARIES
                  Consolidated Statements of Earnings
          (unaudited; in thousands, except per share amounts)
                                       Three Months Ended June 30,
                                       ---------------------------
                                          2002             2001
                                          ----             ----
Net revenues                           $ 275,473        $ 237,933
Cost of sales                            127,871          116,074
                                       ---------        ---------
Gross profit                             147,602          121,859
Operating expenses:
  Research and development                16,843           16,783
  Selling and marketing                   16,887           15,142
  General and administrative              19,221           25,595
                                       ---------        ---------
Earnings from operations                  94,651           64,339
Equity in loss of Somerset                (1,338)            (642)
Other income, net                          3,326           15,441
                                       ---------        ---------
Earnings before income taxes              96,639           79,138
Provision for income taxes                34,790           28,490
                                       ---------        ---------
Net earnings                           $  61,849        $  50,648
                                       =========        =========
Earnings per common share:
  Basic                                $    0.49        $    0.41
                                       =========        =========
  Diluted                              $    0.49        $    0.40
                                       =========        =========
Weighted average common shares:
  Basic                                  125,952          125,031
                                       =========        =========
  Diluted                                126,955          126,374
                                       =========        =========
    General and administrative expenses for the quarter ended June 30,
2001, include amortization expense of $1,801 for goodwill and certain
other intangibles. Excluding such expense would increase net earnings
to $52,449 and basic and diluted earnings per share to $0.42.
               MYLAN LABORATORIES INC. AND SUBSIDIARIES
                 Consolidated Condensed Balance Sheets
                       (unaudited; in thousands)
                                   June 30, 2002   March 31, 2002
                                  --------------   --------------
Assets
  Current assets:
     Cash and cash equivalents    $       84,979   $      160,790
     Marketable securities               509,515          456,266
     Accounts receivable, net            175,309          145,491
     Inventories                         207,634          195,074
     Other current assets                108,584          104,461
                                  --------------   --------------
        Total current assets           1,086,021        1,062,082
  Non-current assets                     549,486          554,628
                                  --------------   --------------
Total assets                           1,635,507        1,616,710
                                  ==============   ==============
Liabilities:
  Current liabilities                    169,980          173,118
  Non-current liabilities                 40,932           41,353
                                  --------------   --------------
Total liabilities                        210,912          214,471
Total shareholders' equity             1,424,595        1,402,239
                                  --------------   --------------
Total liabilities and
 shareholders' equity             $    1,635,507   $    1,616,710
                                  ==============   ==============
               MYLAN LABORATORIES INC. AND SUBSIDIARIES
                            Segment Results
                       (unaudited; in thousands)
                                       Three Months Ended June 30,
                                       ---------------------------
                                          2002             2001
                                          ----             ----
Consolidated
  Net revenues                         $ 275,473        $ 237,933
  Cost of sales                          127,871          116,074
                                       ---------        ---------
     Gross profit                        147,602          121,859
  Research and development                16,843           16,783
  Selling and marketing                   16,887           15,142
  General and administrative              19,221           25,595
                                       ---------        ---------
     Earnings from operations          $  94,651        $  64,339
                                       =========        =========
Generic Segment
  Net revenues                         $ 235,645        $ 209,822
  Cost of sales                          111,162          100,659
                                       ---------        ---------
     Gross profit                        124,483          109,163
  Research and development                10,014            9,289
  Selling and marketing                    2,748            3,078
  General and administrative               5,398            7,391
                                       ---------        ---------
     Earnings from operations          $ 106,323        $  89,405
                                       =========        =========
Brand Segment
  Net revenues                         $  39,828        $  28,111
  Cost of sales                           16,709           15,415
                                       ---------        ---------
     Gross profit                         23,119           12,696
  Research and development                 6,829            7,494
  Selling and marketing                   14,139           12,064
  General and administrative               2,565            4,087
                                       ---------        ---------
     Loss from operations              $    (414)       $ (10,949)
                                       =========        =========
Corporate/Other Segment
  General and administrative           $  11,258        $  14,117
                                       =========        =========


CONTACT:          Mylan Laboratories Inc., Pittsburgh
                  Patricia Sunseri, 412/232-0100

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