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West Announces Second Quarter 2008 Results
Date:8/5/2008

upply, by taking appropriate and fair pricing actions and by looking within our own operations for ways to manage other costs. The Tech Group improved on operating efficiencies resulting from restructuring and by making steady progress ramping up utilization at the Michigan facility."

"Our customers continue to carefully manage their inventory levels in response to broad cost increases, and West is, in turn, sensitive to the effects of customer order patterns and higher costs on our own results," said Dr. Morel. "We are focused on managing through this difficult period and remain confident that our 2008 results will be in line with our previous earnings guidance."

"The ESA situation aside, we have not seen anything that fundamentally changes our long-term, positive outlook for the markets we serve or our growth expectations. While costs and inventory management policies can impact our near-term results and require our attention, it is the success of our customers' products and our ability to support them that have the greatest impact on our performance. We are implementing our strategic plans, including optimizing our production efficiency, and advancing our IT platform upgrade, product development, and capacity expansion initiatives. West will continue to distinguish itself in the market based upon the significant value of our products, customer service and standard-setting innovation, with products like the Daikyo Crystal Zenith(R) resin-based silicone-free prefillable syringe that we introduced during the quarter."

Pharmaceutical Systems Segment

Pharmaceutical Systems segment sales in the second quarter of 2008 were $212.6 million, compared to $189.3 million in the prior year quarter, a 12.3% increase. Favorable foreign currency translation contributed 8.4%. Over 60% of segment sales are reported in currencies other than the US dollar and benefited from the relatively weak US dollar. Quarterly sales of components used for packaging ESA
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SOURCE West Pharmaceutical Services, Inc.
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