BIOVAIL PROVIDES 2005 GUIDANCE AND STRATEGY UPDATE.

Biovail Corporation (NYSE:BVF)(TSX:BVF), Toronto, has announced its revenues and earnings guidance for 2005. The financial guidance reflects the company's strength in leveraging its drug-delivery technologies to develop and commercialize medications that provide clinically meaningful enhancements to patients.

Biovail is providing overall revenue guidance for 2005 of $925 million to $1 billion, and diluted earnings per share (EPS) guidance of $1.50 - $1.60 (exclusive of any charges), which, at the mid-point, represents growth of approximately 15% relative to 2004. Biovail's 2005 guidance does not include the impact of executing strategies to optimize the company's U.S. Commercial Operations; any potential new-product launches, licensings or acquisitions; restructuring or other specific charges; nor does it include expenses related to stock-based compensation. Executing strategies to optimize the company's U.S. Commercial Operations will have a material, positive impact on Biovail's 2005 and 2006 financial performance. Biovail's revenue guidance is based on a number of variables, including current prescription and business trends, and assumes wholesaler inventory levels in 2005 will be within a range of one to two months. Wellbutrin XL, Biovail's once-daily bupropion formulation which is sold under license by GlaxoSmithKline (GSK) in the United States, continues to be a key contributor to Biovail's earnings in 2005. $320 million to $340 million in 2005, with the majority occurring in the second-half of the year. This reflects the dynamics of the tiered-pricing agreement with GSK, and the expectation that Biovail will dedicate manufacturing capacity to scale-up activities related to Tramadol ER and other products.

Biovail's guidance for gross margins on product sales in 2005 is 78% to 79%. Gross margins are expected to increase through the second-half of 2005, primarily due the realization of manufacturing efficiencies and product mix.

Research-and-development expenses are projected to be within a range of $80 million to $95 million in 2005. Selling, general and administrative expenses are forecast to be in the range of $300 million to $335 million in 2005.

Biovail's diluted EPS guidance for 2005 is based on a number of variables and assumptions, including estimated revenues, expenses, wholesaler and distribution-partner buying patterns and inventory levels, gross margins, tax rate, number of shares outstanding and numerous other items.

Strategic Planning Update Biovail is currently engaged in a strategic-planning process addressing all aspects of the company's businesses, including U.S. Commercial Operations, non-core business lines and product-development pipeline. The goal of the strategic-planning process is to provide the framework for long-term, sustainable growth, with the ultimate goal of maximizing shareholder value. Biovail's first priority is to enhance the return on investment of the company's U.S. Commercial Operations. This phase of the strategic plan is nearing completion, and Biovail expects to be in a position to announce and begin implementing the chosen U.S. strategy in the next 30 to 60 days. The selected strategy will have a material, positive impact on Biovail's 2005 and 2006 financial performance.

In addition to the above, Biovail's Board of Directors is currently in the process of evaluating a number of options to maximize the value of Biovail's Legacy products. These options include the sale of the Legacy products to strategic or financial buyers, the transfer of the assets to a new entity and sale of the shares of that entity pursuant to an initial public offering (IPO), or a return of capital to Biovail shareholders as a dividend. Biovail expects to make a further announcement with regard to legacy products during the second quarter of 2005.

About Biovail Corporation

Biovail Corporation is an international full-service pharmaceutical company, engaged in the formulation, clinical testing, registration, manufacture, sale and promotion of pharmaceutical products utilizing advanced drug-delivery technologies.

For more information, visit http://www.biovail.com or call 905/286-3000.