Mylan Reports Adjusted Diluted EPS of $0.16 for the Quarter Ended Jun...(the United Kingdom and Germany. Total re...),Health

The Matrix Segment reported third-party revenues of $104.6 million for the three months ended June 30, 2008 compared to $91.3 million for the same prior year period, representing an increase of $13.3 million or 15%. This increase is the result of growth in the anti-retroviral franchise, with higher sales of both API and finished dosage form products, the latter of which Matrix began to produce and sell in late calendar year 2007.

For the Specialty Segment, total revenues for the three months ended June 30, 2008, were $116.0 million of which $105.9 million represented sales to third-parties. The Specialty Segment consists of the Dey business that focuses on the development, manufacturing and marketing of specialty pharmaceuticals in the respiratory and severe allergy markets. On February 27, 2008 the Company announced that it was reviewing strategic alternatives for Dey, including the potential sale of the business.

Gross profit for the three months ended June 30, 2008 was $414.2 million and gross margins were 34.4%. Gross margins were negatively impacted by certain purchase accounting items recorded during the quarter of approximately $112.1 million, which consisted primarily of amortization related to purchased intangible assets and the amortization of the inventory step-up associated with the acquisition of Merck Generics. Excluding such items, gross margins were 43.7%. Gross margins in the same prior year period, also adjusted to exclude certain purchase accounting items, would have been 57.7%. This decrease is due to the fact that, on average, the newly acquired Merck Generics entities, particularly in countries outside of the United States, contribute margins that are lower than those realized by Mylan's domestic subsidiaries. Ad
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