Shire Delivers Strong Quarter: Driven by $243m of New Product Sales (+164% YOY Growth). Revenue Guidanc...(mpanyhas decided to stop commercialising...)

% of % of

product product

2008 sales 2007 sales

$m $m

_________ _________ _________ _________

R&D (US GAAP) 145.3 21% 103.1 20%

Payments in respect of

in-licensed products

- (5.9)

R&D commitments in respect

of DYNEPO

(6.5) -

Depreciation (3.1) (3.1)

_________ _________

R&D (Non GAAP) 135.7 19% 94.1 19%

_________ _________

R&D expenditure increased to $145.3 million for the three months to June 30, 2008 (21% of product sales), up from $103.1 million in the corresponding period in 2007 (20% of product sales).

Excluding costs relating to the exiting of post-approval marketing commitments for DYNEPO, which the Company has decided to stop commercialising , and depreciation (see reconciliation table above), R&D expenditure increased by $41.6 million over the same period in 2007, remaining consistent as a percentage of product sales at 19% (2007: 19% of product sales). Contributing to the increased R&D expenditure in the second quarter of 2008 over 2007 were costs associated with projects in-licensed and acquired since the second half of 2007 in
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