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Recordati Sales and Income Increase in the First Quarter 2011; 3 Year Business Plan Updated


May 6, 2011 - Milan, Italy


* Consolidated revenue EUR 197.8 million, + 6.4%.

* Operating income EUR 44.3 million, + 2.9%.

* Net income EUR 31.4 million, + 4.8%.

* Net financial position*: net cash of EUR 37.5 million.

* Procto-Glyvenol® acquired from Novartis Consumer Health

* 2011-2013 Business Plan updated.


Milan, 6 May 2011 - The Board of Directors of Recordati S.p.A.approved theGroup's consolidated results for the first quarter 2011 prepared inaccordancewith International Accounting Standards and International FinancialReportingStandards (IAS/IFRS) and in particular as per IAS 34 requirements forinterimreporting. These financial statements are available at the company'soffices, atBorsa Italiana S.p.A. and on the company's website:http://www.recordati.com/rec_en/investors/reports/

Recordati presents its First quarter 2011 results and its updated 2011-2013Business Plan, which was approved by the Board of Directors, to thefinancialcommunity and specialized press today at 4.00 pm at Borsa Italiana. Thecompletepresentation will be placed on the company's website at the followingaddress:http://www.recordati.com/rec_en/investors/presentations/

Financial highlights

* Consolidated revenue in the first quarter of 2011 is EUR 197.8 million,up by 6.4% compared to the same period of the preceding year, despite salesof lercanidipine down by 19.7% as a result of the entry of generics intothe market following this product's patent expiry in January 2010 .

* Operating income, at 22.4% of sales, is EUR 44.3 million, an increaseof 2.9% over the same period of the preceding year. Selling expenses increaseby 8.5% mainly to support the launch of the new products.

* Net income is EUR 31.4 million, an increase of 4.8%, higher than thatrecorded by operating income thanks to a lower tax rate.

* Net financial position* at 31 March 2011 records net cash of EUR 37.5million, a decrease of of EUR 8.5 million as compared to 31 December 2010 due tothe acquisition of the new product Procto-Glyvenol® and the purchaseof own shares. Shareholders' equity increased to EUR 599.1 million.

* Cash and short-term financial investments net of bank overdraftsandmedium/long-term loans which include the measurement at fair value ofhedgingderivatives (fair value hedge).

Business development news

The marketing authorizations, the brand and the rights to the productProcto-Glyvenol® were acquired from Novartis Consumer Health for thefollowingcountries: Poland, Russia, Turkey, Romania, Czech Republic, Slovakia,Ukraine,Portugal, the Baltic countries and Cyprus. Procto-Glyvenol® isindicated forthe localized treatment of internal and external hemorrhoids and iscurrently onthe market in the countries included in the agreement.

Business plan update

The development of the Recordati group will continue to be focusedon theEuropean pharmaceutical markets, both in Western and the emerging CEEcountries.The group will develop its business through the growth of its productportfolio,which includes the launch of its new approved products, the acquisitionof newproduct licenses, the enhancement of its pipeline of products indevelopment andby entering new markets.

Excluding the contribution of further acquisitions which may be completedwithinthe period under analysis, our financial performance expectationsfor the2011-2013 period are the following:

* Expectations for the full year 2011 are confirmed: revenues of aroundEUR 750 million, operating income of around EUR 160 million and net income ofaround EUR 110 million.

* Targets for 2012: revenues of around EUR 810 million, operating incomeof around EUR 170 million and net income of around EUR 120 million.

* Targets for 2013: revenues of around EUR 875 million, operating incomeof around EUR 185 million and net income of around EUR 132 million.

Management comments

"The results of the first quarter and the Business Plan that we havejustpresented show that we are starting a new growth cycle, thanks to thequality ofour product portfolio and the development of our business in the newemergingmarkets. Our new plan includes an acceleration of sales growth from 5%to 8%over the period and an increase of around 10% per year in the 2012 and2013 netincome" declared Giovanni Recordati, Chairman and Chief ExecutiveOfficer."Furthermore, we will continue with our policy to acquire newproducts todevelop as well as new geographical presence in order to enhance bothsales andprofits growth."

Conference Call

A simultaneous translation into English of the proceedings, which willstart at4.00 pm, is available via conference call. Dial-in numbers for thecall inEnglish and access ID are:


Italia +39 064 521 7063
UK +44 (0) 20 7136 2058
USA +1 718 247 0884
Francia +33 (0) 1 70994301
Germania +49 (0) 69 5007 1309

ID to access the call in the English language: 3380664

A set of slides which will be referred to during the call will beavailable onour website: http://www.recordati.com/rec_en/investors/presentations/

Callers are invited to dial-in 10 minutes before conference time. Ifconferenceoperator assistance is required during the connection please digit *followed by0 or call +353 23 8832493. A recording of the conference callwill besubsequently placed on the website:http://www.recordati.com/rec_en/investors/presentations/

Recordati, established in 1926, is a European pharmaceutical group,listed onthe Italian Stock Exchange (Reuters RECI.MI, Bloomberg REC IM,ISIN IT0003828271), with a total staff of over 2,800, dedicated to theresearch,development, manufacturing and marketing of pharmaceuticals. It hasheadquartersin Milan, Italy, operations in the main European countries, and agrowingpresence in the new markets of Central and Eastern Europe. A Europeanfieldforce of around 1,400 medical representatives promotes a widerange ofinnovative pharmaceuticals, both proprietary and under license, in anumber oftherapeutic areas including a specialized business dedicated totreatments forrare diseases. Recordati's current and growing coverage of theEuropeanpharmaceutical market makes it a partner of choice for new product licensesfromcompanies which do not have European marketing organizations.Recordati iscommitted to the research and development of new drug entitieswithin thecardiovascular and urogenital therapeutic areas and of treatments forrarediseases. Consolidated revenue for 2010 was EUR 728.1 million, operatingincomewas EUR 154.8 million and net income was EUR 108.6 million.

Statements contained in this release, other than historical facts, are"forward-looking statements" (as such term is defined in the PrivateSecuritiesLitigation Reform Act of 1995). These statements are based on currentlyavailable information, on current best estimates, and on assumptionsbelieved tobe reasonable. This information, these estimates and assumptions may proveto beincomplete or erroneous, and involve numerous risks and uncertainties,beyondthe Company's control. Hence, actual results may differ materially fromthoseexpressed or implied by such forward-looking statements. All mentions anddescriptions of Recordati products are intended solely as information onthegeneral nature of the company's activities and are not intended to indicatetheadvisability of administering any product in any particular instance.

SALES AND INCOME INCREASE IN THE I QUARTER 2011. 3 YEAR BUSINESS PLAN:http://hugin.info/143644/R/1513274/449065.pdf


This announcement is distributed by Thomson Reuters on behalf ofThomson Reuters clients. The owner of this announcement warrants that:

(i) the releases contained herein are protected by copyright and other applicable laws; and

(ii) they are solely responsible for the content, accuracy and originality of the information contained therein.

Source: RECORDATI via Thomson Reuters ONE

[HUG#1513274]

For further information:

Recordati website: www.recordati.com

Investor Relations
Marianne Tatschke
(39)0248787393
e-mail: Email Contact

Media Relations
Claudio Rossetti (Echo Comunicazione d'Impresa)
(39)02 62694736
e-mail: Email Contact

MarketWire

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