Advanced Medical Optics Intends to Raise $200 Million Through a 144A Private Placement of Senior Subordinated Notes.

Business Editors & Health/Medical Writers

IRVINE, Calif.--(BUSINESS WIRE)--June 14, 2002

Allergan, Inc. (NYSE:AGN) and its wholly owned subsidiary, Advanced Medical Optics, Inc. (AMO), announced today that AMO has entered into a purchase agreement with respect to the offer and sale by AMO of $200 million aggregate principal amount of AMO's 9-1/4% Senior Subordinated Notes due 2010 at a price of 98.597% of principal amount in a private placement pursuant to Rule 144A and Regulation S under the Securities Act of 1933. The transaction is expected to close on June 20, 2002. The purchase agreement is subject to certain conditions, and there can be no assurance that the sale of the notes will be completed. Allergan executed the purchase agreement as guarantor but will cease to be a guarantor as of the spin off of AMO, which is currently anticipated to occur on June 29, 2002.

The net proceeds from the issuance of the notes, together with $100 million of borrowings under a new senior credit facility, will be used to fund in part the previously announced spin-off of the optical medical device business from Allergan to AMO and for working capital purposes.

The notes are being offered only to "qualified institutional buyers" and in "offshore transactions" to non-"U.S. persons," as such terms are defined for purposes of the Securities Act of 1933. The notes have not been registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.

Forward-Looking Statements

In this press release, forward-looking statements such as the timing of the sale of AMO notes and the spin-off of AMO, are forward-looking. All forward-looking statements in this press release reflect Allergan's analysis and intentions only as of the date of this press release. Actual events may differ from current expectations based on a number of factors, including the uncertainties associated with completing the sale of AMO notes and effecting a spin-off of a separate public company and the discretion of Allergan's Board of Directors to delay or cancel the spin-off of AMO prior to its consummation. Therefore, the reader is cautioned not to rely on these forward-looking statements. Allergan disclaims any intent or obligation to update these forward-looking statements. Additional information on the factors affecting these forward-looking statements can be found in AMO's Registration Statement on Form 10 under the caption "Risk Factors."

About Advanced Medical Optics, Inc.

In January 2002, Allergan announced plans to spin-off Advanced Medical Optics. The spin-off is expected to occur on June 29, 2002. Advanced Medical Optics, Inc., with headquarters in Orange County, California, is a global leader in the development, manufacturing and marketing of medical devices for the eye and contact lens care products. The Company focuses on developing a broad suite of innovative technologies and devices to address a wide range of eye disorders.

About Allergan, Inc.

Allergan, Inc., with headquarters in Irvine, California, is a technology-driven, global health care company providing eye care and specialty pharmaceutical products worldwide. Allergan develops and commercializes products in the eye care, neuromuscular and skin care markets that deliver value to our customers, satisfy unmet medical needs, and improve patients' lives.