Allergan Reports First Quarter Operating Results.

Business Editors/Health/Medical Writers

IRVINE, Calif.--(BUSINESS WIRE)--April 30, 2004

-- Pharmaceutical Sales Increased 21 Percent for the First Quarter

-- Board of Directors Declares First Quarter Dividend

Allergan, Inc. (NYSE:AGN) today announced operating results for the first quarter ended March 26, 2004. Allergan also announced that its Board of Directors has declared a first quarter dividend of $0.09 per share, payable on June 10, 2004 to stockholders of record on May 12, 2004.

Operating Results

For the quarter ended March 26, 2004:

-- Allergan's net sales were $472.4 million, including $24.9

million of non-pharmaceutical product sales, primarily

consisting of contract manufacturing sales to Advanced Medical

Optics, Inc. (AMO), a former subsidiary that was spun-off from

Allergan on June 29, 2002.

-- Pharmaceutical sales were up 20.9 percent, or 16.6 percent at

constant currency, compared to pharmaceutical sales in the

first quarter of 2003.

-- Allergan reported $0.61 diluted earnings per share, including

the favorable settlement of a patent dispute covering the use

of botulinum toxin type B for cervical dystonia and the effect

of an unrealized loss on the mark-to-market adjustment to

foreign currency derivative instruments, totaling $2.3 million

pre-tax, compared to the $0.53 diluted earnings per share

reported for the first quarter of 2003.

-- Allergan's adjusted diluted earnings per share were $0.60,

representing an 11.1 percent increase compared to adjusted

diluted earnings per share of $0.54 reported for the first

quarter of 2003. Adjusted diluted earnings per share for the

first quarter of 2004 exclude the effects of the favorable

settlement of the patent dispute and the unrealized loss. A

reconciliation of the adjustments made from reported earnings

per share to adjusted earnings per share is contained in the

financial tables of this document.

"We are very pleased with the continued strong sales growth in the first quarter, and we are excited by the anticipated filing of several Investigational New Drug applications with the United States Food & Drug Administration during 2004," said David E.I. Pyott, Allergan's Chairman of the Board, President and Chief Executive Officer.

Product and Pipeline Update

During the first quarter of 2004:

-- Allergan announced that Apotex, Inc., Apotex Corp., and Novex

Pharma Inc. dismissed their antitrust lawsuit against Allergan

and Roche Palo Alto, LLC relating to Acular(R).

-- The Federal Trade Commission's Bureau of Competition notified

Allergan that it officially closed its investigation of

Allergan relating to the Acular(R) patent infringement case.

-- The European Commission approved Lumigan(R) as first-line

therapy for the reduction of elevated intraocular pressure in

chronic open-angle glaucoma and ocular hypertension.

Following the end of the first quarter of 2004:

-- Lupin Limited announced that its wholly owned subsidiary,

Lupin Pharmaceuticals, Inc., entered into an agreement with

Allergan to promote Zymar(TM) in the United States pediatric

specialty market.

-- Allergan announced that it was selected as a partner to supply

its novel ophthalmic formulation of triamcinolone for two

National Eye Institute-sponsored clinical trials on macular

edema (swelling of the retina).

Outlook

-- For the second quarter of 2004, Allergan estimates:

-- Total pharmaceutical only sales between $465 million and

$480 million.

-- Adjusted diluted earnings per share between $0.61 and

$0.62, reflecting anticipated direct-to-consumer

expenditures which did not occur in the first quarter of

2004.

-- For the full year of 2004:

-- Allergan is reducing the expected range of Tazorac(R) and

Avage(R) sales by $15 million to between $70 million and

$80 million.

-- All other product sales guidance provided in January 2004

remains unchanged.

-- Total pharmaceutical sales guidance and contract sales

guidance provided in January 2004 remains unchanged.

-- Income statement ratio guidance provided in January 2004

remains unchanged.

-- Allergan currently estimates that its effective tax rate

will be approximately 30 percent.

-- Adjusted diluted earnings per share guidance between $2.72

and $2.75 provided in January 2004 remains unchanged.

Adjusted diluted earnings per share guidance excludes any

non-GAAP adjustments to diluted earnings per share.

-- At Allergan's Annual Meeting on April 28, 2004, a stockholder

proposal requiring Allergan to develop a policy for expensing

the cost of future stock option grants was approved by a

majority of Allergan's stockholders. Therefore, Allergan will

develop a plan for expensing future stock option grants and

will ensure that its stock option expensing plan is complete

and ready for implementation at the time of Allergan's next

full round stock option grant.

Forward-Looking Statements

In this press release, the statements regarding the outlook for Allergan's earnings per share and revenue forecasts, and statements from Mr. Pyott, among other statements above, are forward-looking statements. Because forecasts are inherently estimates that cannot be made with precision, Allergan's performance at times differs materially from its estimates and targets, and Allergan often does not know what the actual results will be until after a quarter's end and year's end. Therefore, Allergan will not report or comment on its progress during a current quarter. Any statement made by others with respect to progress during a current quarter cannot be attributed to Allergan.

Any other statements in this press release that refer to Allergan's expected, estimated or anticipated future results are forward-looking statements. All forward-looking statements in this press release reflect Allergan's current analysis of existing trends and information and represent Allergan's judgment only as of the date of this press release. Actual results may differ materially from current expectations based on a number of factors affecting Allergan's businesses, including among other things, changing competitive, market and regulatory conditions; the timing and uncertainty of the results of both the research and development and regulatory processes; domestic and foreign health care and cost containment reforms; technological advances and patents obtained by competitors; the performance, including the approval, introduction, and consumer and physician acceptance, of new products and the continuing acceptance of currently marketed products; the effectiveness of advertising and other promotional campaigns; the timely and successful implementation of strategic initiatives; the results of any pending litigations, investigations or claims; the uncertainty associated with the identification of and successful consummation and execution of external corporate development initiatives and strategic partnering transactions; and Allergan's ability to obtain and successfully maintain a sufficient supply of products to meet market demand in a timely manner. In addition, matters generally affecting the economy, such as changes in interest and currency exchange rates; international relations; and the state of the economy worldwide, can materially affect Allergan's results. Therefore, the reader is cautioned not to rely on these forward-looking statements. Allergan expressly disclaims any intent or obligation to update these forward-looking statements.

Additional information concerning these and other risk factors can be found in press releases issued by Allergan, as well as Allergan's public periodic filings with the Securities and Exchange Commission, including the discussion under the heading "Certain Factors and Trends Affecting Allergan and its Businesses" in Allergan's 2003 Form 10-K. Copies of Allergan's press releases and additional information about Allergan is available on the World Wide Web at www.allergan.com or you can contact the Allergan Investor Relations Department by calling 714-246-4636.

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, neuromodulator, skin care and other specialty markets that deliver value to our customers, satisfy unmet medical needs, and improve patients' lives.

                            ALLERGAN, INC.
           Condensed Consolidated Statements of Earnings and
                Reconciliation of Non-GAAP Adjustments
                              (Unaudited)
in millions,
 except per                       Three months ended
 share amounts       March 26, 2004              March 28, 2003

                       Non-GAAP                    Non-GAAP
                GAAP  Adjustments Adjusted  GAAP  Adjustments Adjusted
Product sales
Net sales      $472.4        $--   $472.4  $391.2        $--   $391.2
Cost of sales    87.6         --     87.6    68.4         --     68.4
   Product
    gross
    margin      384.8         --    384.8   322.8         --    322.8

Research
 services
Research
 service
 revenues          --         --       --     9.8         --      9.8
Cost of
 research
 services          --         --       --     8.9         --      8.9
   Research
    services
    margin         --         --       --     0.9         --      0.9

Selling,
 general and
 administrative 180.6        2.4(a) 183.0   170.0         --    170.0
Research and
 development     86.1         --     86.1    55.9         --     55.9

Operating
 income         118.1       (2.4)   115.7    97.8         --     97.8

Interest income   2.0         --      2.0     4.1         --      4.1
Interest
 expense         (3.7)        --     (3.7)   (3.7)        --     (3.7)
Unrealized loss
 on derivative
 instruments,
 net             (0.1)       0.1(b)    --    (0.8)       0.8(b)    --
Loss on
 investments       --         --       --    (0.3)        --     (0.3)
Other, net       (0.1)        --     (0.1)    0.8         --      0.8
                 (1.9)       0.1     (1.8)    0.1        0.8      0.9

Earnings before
 income taxes
  and minority
   interest     116.2       (2.3)   113.9    97.9        0.8     98.7

Provision for
 income taxes    35.1      (0.9)(c)  34.2    27.4        0.2(c)  27.6
Minority
 interest         0.3         --      0.3     0.3         --      0.3

Net earnings    $80.8      $(1.4)   $79.4   $70.2       $0.6    $70.8

Net earnings
 per share:
    Basic       $0.62              $ 0.61   $0.54              $ 0.55
    Diluted     $0.61              $ 0.60   $0.53              $ 0.54


Weighted average number of common
 shares outstanding:
    Basic       130.8               130.8   129.7               129.7
    Diluted     133.0               133.0   131.8               131.8

Selected ratios
 as a percentage
 of net sales

Gross profit     81.5%               81.5%   82.5%               82.5%
Selling,
 general and
 administrative  38.2%               38.7%   43.5%               43.5%
Research and
 development     18.2%               18.2%   14.3%               14.3%

(a) Patent infringement settlement.
(b) Unrealized loss on the mark-to-market adjustment to derivative
instruments.
(c) Tax effect for non-GAAP adjustments.

"GAAP" refers to financial information presented in accordance with generally accepted accounting principles in the United States.

This press release includes historical non-GAAP financial measures, as defined in Regulation G promulgated by the Securities and Exchange Commission, with respect to the three months ended March 26, 2004 and March 28, 2003. Allergan believes that its presentation of historical non-GAAP financial measures provides useful supplementary information to investors. The presentation of historical non-GAAP financial measures is not meant to be considered in isolation from or as a substitute for results prepared in accordance with accounting principles generally accepted in the United States.

In this press release, Allergan reported the non-GAAP financial measure "adjusted earnings" and related "adjusted diluted earnings per share." Allergan uses adjusted earnings to enhance the investor's overall understanding of the financial performance and prospects for the future of Allergan's core business activities. Specifically, Allergan believes that a report of adjusted earnings provides consistency in its financial reporting and facilitates the comparison of results of core business operations between its current, past and future periods. Adjusted earnings is one of the primary indicators management uses for planning and forecasting in future periods. Allergan also uses adjusted earnings for evaluating management performance for compensation purposes.

                            ALLERGAN, INC.
                 Condensed Consolidated Balance Sheets
                              (Unaudited)

                                              March 26,   Dec. 31,
in millions                                     2004        2003

Assets

Cash and equivalents                            $568.3    $507.6
Trade receivables, net                           280.2     220.1
Inventories                                       82.9      76.3
Other current assets                             123.4     124.2

Total current assets                           1,054.8     928.2

Property, plant and equipment, net               424.6     422.5
Other noncurrent assets                          408.8     404.2

Total assets                                  $1,888.2  $1,754.9


Liabilities and stockholders' equity

Notes payable                                    $28.5     $24.4
Accounts payable                                  79.9      87.2
Accrued expenses and income taxes                267.2     271.8

Total current liabilities                        375.6     383.4

Long-term debt                                   564.7     573.3
Other liabilities                                 94.7      79.6
Stockholders' equity                             853.2     718.6

Total liabilities and stockholders' equity    $1,888.2  $1,754.9


Days on Hand (DOH)                                  86        78

Days Sales Outstanding (DSO)                        54        42

Cash, net of debt                               $(24.9)   $(90.1)

Debt-to-capital percentage                        41.0%     45.4%


                            ALLERGAN, INC.
             Reconciliation of Diluted Earnings Per Share
                              (Unaudited)

in millions, except per share amounts           Three months ended
                                                March 26,   March 28,
                                                  2004       2003

Net earnings, as reported                         $80.8      $70.2

Non-GAAP pre-tax adjustments:
   Patent infringement settlement                  (2.4)        --
   Unrealized loss on derivative instruments        0.1        0.8
                                                   78.5       71.0
Tax effect for above items                          0.9       (0.2)

Adjusted diluted earnings                          79.4       70.8

Interest expense from convertible
 subordinated notes, net of tax                      --        0.2

                                                  $79.4      $71.0


Weighted average number of shares issued          130.8      129.7

Net shares assumed issued using the treasury stock
 method for options outstanding during each period
 based on average market price                      2.2        1.7

Dilutive effect of assumed conversion of convertible
 subordinated notes outstanding                      --        0.4

                                                  133.0      131.8

Diluted earnings per share, as reported           $0.61      $0.53

Non-GAAP earnings per share adjustments:
   Patent infringement settlement                 (0.01)        --
   Unrealized loss on derivative instruments         --       0.01


Adjusted diluted earnings per share               $0.60      $0.54

Year over year change                              11.1%


                            ALLERGAN, INC.
                   Supplemental Non-GAAP Information
                              (Unaudited)

                    Three months ended
                   March 26,  March 28,        $ change in net sales
                     2004        2003       Total Performance Currency
in millions

Eye Care
 Pharmaceuticals    $272.1      $221.0      $51.1     $40.4     $10.7
Botox/Neuromodulator 150.7       123.1       27.6      22.1       5.5
Skin Care             24.7        25.9       (1.2)     (1.2)       --
   Total             447.5       370.0       77.5      61.3      16.2

Other (primarily
 contract sales)      24.9        21.2        3.7       3.6       0.1

Net sales, as
 reported           $472.4      $391.2      $81.2     $64.9     $16.3

Alphagan P and
 Alphagan            $69.3       $77.3      $(8.0)   $(10.4)     $2.4

Lumigan               53.5        38.0       15.5      13.5       2.0

Other Glaucoma         4.9         5.4       (0.5)     (0.9)      0.4

Restasis              21.3          --       21.3      21.3        --

Tazorac, Zorac and
 Avage                18.0        19.7       (1.7)     (1.7)       --


Domestic              70.5%       72.8%

International         29.5%       27.2%

                            ALLERGAN, INC.
                   Supplemental Non-GAAP Information
                              (Unaudited)

                                  Percent change in net sales
                              Total       Performance       Currency

Eye Care
 Pharmaceuticals              23.1%         18.3%             4.8%
Botox/Neuromodulator          22.4%         18.0%             4.4%
Skin Care                    (4.6)%        (4.6)%              --
   Total                      20.9%         16.6%             4.3%

Other (primarily
 contract sales)              17.5%         17.0%             0.5%

Net sales, as
 reported                     20.8%         16.6%             4.2%

Alphagan P and
 Alphagan                   (10.3)%       (13.5)%             3.2%

Lumigan                       40.8%         35.5%             5.3%

Other Glaucoma               (9.3)%       (16.7)%             7.4%

Restasis                       n/a           n/a              n/a

Tazorac, Zorac and
 Avage                       (8.6)%        (8.6)%              --

In this press release, Allergan reported sales performance using the non-GAAP financial measure of constant currency sales. Constant currency sales represent current period reported sales adjusted for the translation effect of changes in average foreign exchange rates between the current period and the corresponding period in the prior year. Allergan calculates the currency effect by comparing adjusted current period reported amounts, calculated using the monthly average foreign exchange rates for the corresponding period in the prior year, to the actual current period reported amounts. Management refers to growth rates at constant currency so that sales results can be viewed without the impact of changing foreign currency exchange rates, thereby facilitating period-to-period comparisons of Allergan's sales. Generally, when the dollar either strengthens or weakens against other currencies, the growth at constant currency rates will be higher or lower, respectively, than growth reported at actual exchange rates.