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Recordati : Positive First Nine Months 2012 Results

October 25, 2012 - Milan, Italy

* Consolidated revenue EUR 620.3 million, + 6.8%.

* Operating income EUR 132.4 million, + 2.7%.

* Net income EUR 93.1 million, + 1.2%.

* Net financial position*: net debt of EUR 44.6 million.

* Start of phase III clinical trials concerning REC 0482 (NX-1207), an innovative BPH treatment.

* Six OTC products acquired in Germany

* Acquisition of Farma-Projekt and a portfolio of products in Poland

* Subsequent events: Agreement signed for the acquisition of a portfolioof OTC products in Russia

* Interim 2012 dividend of EUR 0.20 per share to be distributed.

The Board of Directors of Recordati S.p.A. approved theGroup's consolidated results for the first nine months 2012prepared inaccordance with International Accounting Standards and InternationalFinancialReporting Standards (IAS/IFRS) and in particular as per IAS 34requirements forinterim reporting. These financial statements will be available todayat thecompany's offices and on the company's website: can also be viewed on the website of Borsa Italiana S.p.A.

Financial highlights

* Consolidated revenue in the first nine months 2012 is EUR 620.3million, up by 6.8% compared to the same period of the preceding year. Internationalsales grow by 11.0%.

* Operating income, at 21.3% of sales, is EUR 132.4 million, an increaseof 2.7% over the same period of the preceding year.

* Net income at 15.0% of sales is EUR 93.1 million, an increase of 1.2%over the first nine months of 2011.

* Net financial position* at 30 September 2012 records a net debt of EUR44.6 million. During the period EUR 21.0 million were paid for theacquisition of six OTC products in Germany, EUR 14.3 million overall were paid for the acquisitions in Poland of the pharmaceutical company Farma-Projekt plusa portfolio of products and dividends for a total of EUR 21.3 millionwere distributed. Shareholders' equity increases to EUR 674.9 million.

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

Business development news

In February the activities for the preparation of a European Phase IIIclinicaltrial for REC 0482 (NX-1207), following the successful completionof aScientific Advice meeting with the European Medicines Agency (EMA)wereinitiated. The pivotal controlled clinical trial will assess theefficacy andsafety of a single TRUS-guided intraprostatic injection of the drug inpatientswith lower urinary tract symptoms (LUTS) associated with BPH notadequatelycontrolled by medical therapy. A European licensing agreement forthedevelopment and commercialization of NX-1207 was signed in 2010 byRecordati andNymox Pharmaceutical Corporation. Under the terms of the agreementRecordatireceived exclusive rights to develop and subsequently market and sell thedrugin Europe including Russia and the CIS, the Middle East, South Africaand theMaghreb area of North Africa.

During April the marketing authorizations, the trademarks and additionalassetsconcerning six OTC pharmaceuticals for Germany were acquired from CilagGmbHInternational and McNeil GmbH & Co. oHG. The products acquired areJHP-Rödler® (mint oil indicated for digestive disorder, headache,cough and cold), Betadorm®D (diphenhydramine HCl indicated for sleep disorders),Rhinopront®(pseudoephedrine+triprolidine indicated for rhinitis and head colds),Collomack®Topical (salicylic acid solution, an anti-corn preparation), Tirgon®(bisacodylfor constipation) and Xitix® (vitamin C lozenges to treat vitamin Cdeficiency).Estimated 2012 sales for the six products are of around EUR 6 million.

In August he acquisition of 100% of the share capital of Farma-ProjektSp. zo.o., a Polish pharmaceutical company with headquarters in Krakow,wassuccessfully concluded. The value of the transaction (enterprise value)is ofPLN 71.0 million (approx. EUR 17.4 million) of which PLN 50.8 million(approx. EUR12.5 million) were paid at the closing. Of the remaining balance a portionwillbe paid in tranches on future dates and a portion comprises the company'sdebt.Farma-Projekt operates on the Polish pharmaceutical market since2003 andmarkets drugs belonging to a variety of therapeutic areas, mainlycardiovascularand urological treatments as well as dietary supplements. The companyemploysaround 135 personnel, of which 84 are dedicated to sales and marketing.Sales in2011 were of around PLN 47 million (approx. EUR 11.5 million).

Subsequent events and business outlook

In October the agreements covering the acquisition of all rights to fiveproductlines on the Russian and CIS market: Alfavit, Qudesan, Vetoron,Focus andCarnitone, were signed. The value of the transaction, which will be fundedfromexisting liquidity, is of RUB 2.7 billion (approx. EUR 67.2 million). Theclosingof the operation, expected to take place before year-end, is subject tocertainconditions. The brands of the products acquired, which are OTCpharmaceuticalsand dietary supplements, are very well known in Russia. Total annualsales ofthe five product lines are of around RUB 1.0 billion (approx. EUR 24.9million).Recordati will also enter into cooperation agreements with Akviongroup tocontinue manufacturing the acquired products and for commercialdevelopment.

The group's business performance was in line with expectations duringOctober.For the full year 2012 we confirm our expectations to achieve revenuesbetween EUR810 and EUR 830 million, operating income between EUR 160 and EUR 170million and netincome between EUR 115 and EUR 120 million.

Further resolutions

The Board of Directors resolved to distribute an interim dividendrelating tothe financial year 2012 amounting to EUR 0.20 (before withholding tax)on eachoutstanding share, excluding shares in treasury stock. The interim dividendwillbe paid, through the authorised intermediaries, as from November 22,2012 oncoupon No. 10 to be presented on November 19, 2012.

The Independent Auditor's opinion on the distribution of the interimdividend isalso available at the Company's registered offices as per article2433-bis ofthe Italian Civil Code.

The Directors' Report and financial statements of Recordati S.p.A. as at 30June2012, on which the Board of Directors based its resolution todistribute theabovementioned interim dividend, are available at the Company'sregisteredoffices and published on the Company's website ( may also be viewed on Borsa Italiana S.p.A.'s website.

Conference call

Recordati will be hosting a conference call today 25 October at 4.00 pmItaliantime (3.00 pm London time, 10.00 am New York time). The dial-in numbersare:

+39 02 8058811
toll free 800 213 858

+44 1 212818003
toll free 800 0156384

+1 718 7058794
toll free 855 2656959

+33 170918703

+49 65 255114451

Callers are invited to dial-in 10 minutes before conference time. Ifconferenceoperator assistance is required during the connection please digit *followed by0 or call +39 02 8061371. A recording of the conference call will beplaced onthe website

A set of slides which will be referred to during the call will beavailable onour website under Investors/Company 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 3,200, dedicated to theresearch,development, manufacturing and marketing of pharmaceuticals.Headquartered inMilan, Italy, Recordati has operations in the main Europeancountries, inCentral and Eastern Europe, and in Turkey. A field force of around1,700medical representatives promotes a wide range of innovativepharmaceuticals,both proprietary and under license, in a number of therapeutic areasincluding aspecialized business dedicated to treatments for rare diseases. Recordatiis apartner of choice for new product licenses from companies which do nothave aEuropean presence. Recordati is committed to the research anddevelopment ofnew drug entities within the cardiovascular and urogenital therapeuticareas andof treatments for rare diseases. Consolidated revenue for 2011 was EUR762.0million, operating income was EUR 163.5 million and net income wasEUR 116.4million.

Statements contained in this release, other than historical facts, are"forward-looking statements" (as such term is defined in thePrivate SecuritiesLitigation Reform Act of 1995). These statements are based oncurrentlyavailable 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. Allmentions anddescriptions of Recordati products are intended solely as informationon thegeneral nature of the company's activities and are not intended toindicate theadvisability of administering any product in any particular instance.


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(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


For further information:

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Marianne Tatschke
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Cristina Risciotti
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