Strategic Acquisition of MedPointe Inc Completed

Meda announced that it had signed an agreement to acquire all shares in MedPointe. This strategic acquisition has now been completed and consolidation of MedPointe starts immediately. Meda plans to give further information on the acquisition and its impact on Meda in the interim report for the third quarter - to be released on 30 October 2007.

The final purchase price for MedPointe was 5 229 MSEK. This price consisted of 520 MUSD in cash and 17,5 million newly issued Meda shares. The cash component of 520 MUSD was hedged at SEK/USD 6,74 and compared to the current exchange rate this is equivalent to a positive effect of about 100 MSEK. The cash payment was therefore 3 506 MSEK, an amount fully financed through an existing credit facility. The book value of the newly issued shares was set to 98,50 SEK per share. New shareholders in Meda are The Carlyle Group, The Cypress Group LLC, and other US investors, who will have a combined shareholding in Meda of approximately 7%.

The strategic acquisition of MedPointe will establish Meda as a world-class specialty pharma company with full marketing coverage both in the US and Europe and with revenues of around 9 billion SEK. The acquisition of MedPointe is expected to be accretive to Meda's earnings per share at the latest during 2009.

MedPointe is a fast growing US-based specialty pharma company focused on two of Meda's priority areas, Allergy / Respiratory and Pain. The product portfolios are highly complementary. MedPointe's net sales in 2006 were 252 MUSD, representing a 23% growth in local currency compared to previous year. Net sales for the first half of 2007 amounted to around 145 MUSD, which, on an annualised basis, is equivalent to a purchase price revenue multiple of around 2,6. On a pro forma basis, Meda's US operation accounts for about 20% of annual sales.

Meda's pipeline which is open for the US market can now be commercialised in own regimen through a wholly-owned subsidiary and thereby retaining 100% of the value of the product assets. Likewise Meda, through its strong European organisation, will be able to capitalise on product development opportunities based on MedPointe's pipeline. The new transatlantic combination will enable Meda to develop synergies both as to geographical markets and product portfolios.

About MEDA AB
MEDA AB (publ) is an international specialty pharma company that concentrates on marketing and market-adapted product development. Acquisitions and long-term partnerships are fundamental factors that drive the company's strategy. Meda is represented with own organisations 26 countries and with more than 1 500 employees within marketing and sales. Meda's products are sold in approximately 120 countries world-wide. The Meda share is listed under Large Cap on the OMX Nordic Stock Exchange. Find out more, visit www.meda.se.

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