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ViroPharma Incorporated Reports Fourth Quarter and Full Year 2010 Financial Results
Date:2/24/2011

opean approval in the first half of 2011.  Additionally, our work will accelerate in 2011 toward expanding the use of C1 esterase inhibitor into other complement-mediated diseases."

The Company is reporting both GAAP net income (loss) and non-GAAP adjusted results for the three and twelve months ended December 31, 2010 and 2009.  Non-GAAP adjusted net income is GAAP net income excluding (1) non-cash interest expense, (2) amortization related intangible assets acquired, and step up in inventory related to purchase accounting, (3) stock compensation expenses, and (4) certain non-recurring events such as the goodwill write off, impairment loss and gain on extinguishment of repurchased bonds.  A reconciliation between GAAP and non-GAAP adjusted net income is provided in the Selected Financial Information - Reconciliation of GAAP Net Income (loss) to non-GAAP adjusted Net Income table included with this release.

The Company believes it is important to share these non-GAAP financial measures with shareholders as they better represent the ongoing economics of the business and reflect how we manage the business.  Accordingly, management believes investors' understanding of the Company's financial performance is enhanced as a result of our disclosing these non-GAAP financial measures. Non-GAAP adjusted net income should not be viewed in isolation, or as a substitute for or superior to reported GAAP net income (loss). ViroPharma's definition of non-GAAP financial measures may differ from others.

Non-GAAP adjusted net income in the three and twelve months ended December 31, 2010 was $45.6 million and $156.9 million, respectively, compared to $20.8 million and $83.6 million, respectively, for the same periods in 2009.  The increase in adjusted net income for both periods is primarily due to the net effect of the Cinryze launch and lower research and development expenses, partly offset by increased cost of sales due to the increase
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