Watson Announces Expansion of Salt Lake City, Utah Pharmaceutical R&D and Manufacturing Facility

Watson Pharmaceuticals, Inc., today formally announced an approximately $44 million expansion of its Salt Lake City, Utah, Watson Laboratories, Inc. site.

This facility, is Watson's state-of-the-art pharmaceutical research, development and
manufacturing facility for transdermal patches and topical gels. Governor Gary R. Herbert toured the facility and participated with Watson's President and Chief Executive Officer, Paul Bisaro, in ceremonies marking the expansion.

The Salt Lake City expansion includes retrofitting approximately 20,000 square feet of existing space and the construction of approximately 17,000 square feet of future manufacturing space. The Company anticipates the expansion could ultimately result in the addition of approximately 300 employees within the next 3-5 years. The expansion supports a potential tripling in annual manufacturing batch capacity to support future new
products, including the generic version of the Lidoderm® transdermal pain management product, which the Company may launch as early as mid to late 2012. It will also support Watson's expansion of transdermal and topical gel products manufactured in Salt Lake City into select international
markets.

"We are committed to expanding our presence in Salt Lake City, which is our center of excellence for the manufacture of brand and generic pharmaceutical products that utilize topical or transdermal patch drug delivery technologies. This expansion not only supports our near-term product manufacturing and packaging needs, but also positions us to more efficiently meet anticipated future consumer demand for products that are currently in various stages of development," said Paul Bisaro, President and CEO.

"This expansion is more than just bricks and mortar. We are investing in the creation of skilled manufacturing, packaging and quality control/quality assurance and other jobs that will create opportunities for the population of Salt Lake City and the surrounding areas. We are delighted to have Governor Herbert join us in commemorating Watson's significant investment in the future of our Company and in the future of the Salt Lake City community."
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