Biovail Comments on Rating Agency Outlooks.

Business Editors

TORONTO--(BUSINESS WIRE)--March 9, 2004

Biovail Corporation (NYSE:BVF)(TSX:BVF) today provided the following comments with respect to statements from both Moody's Investors Service and Standard and Poor's Ratings Services.

Moody's Investors Service has placed the ratings of Biovail's senior subordinated notes due 2010 under review for a possible downgrade. Standard and Poor's Ratings Services revised the outlook on Biovail to negative from stable, although reaffirmed the existing ratings of the company, including the 'BB+' long-term corporate credit rating.

Moody's Investors Service noted the rising sales of Biovail's Wellbutrin XL and Cardizem LA, while Standard and Poor's Ratings Services noted the strength of Wellbutrin XL and Biovail's core product portfolio, particularly Cardizem LA, as well as the Company's recent statement that it will be increasing transparency and disclosure, adopting more conservative financial reporting and increasing focus on organic growth.

A possible ratings downgrade or revised outlook do not trigger any cash payment requirement or affect Biovail's available cash position. Biovail's bank covenants and interest rates are based on calculated Earnings Before Interest Tax Depreciation and Amortization (EBITDA) excluding certain items.

Biovail is due to renew a Revolving Term Credit Facility with a syndicate of banks on mutually acceptable terms by March 25, 2004. If the parties cannot agree on terms, Biovail has the right to term out the existing loan balance by making eight equal quarterly payments. As of March 8, 2004, Biovail's revolving secured credit facility was $303 million and the Company had $168 million cash on hand.

On Biovail's March 3, 2004 conference call, the Company provided 2004 cash flow from operations guidance of $300 million to $350 million and a spending range of $40 million to $60 million for capital expenditures during 2004. Biovail believes this level of cash flow provides the Company with sufficient liquidity to comfortably term out the Revolving Term Credit facility or reduce the available amount under a new facility as it is Biovail's intention to focus more of its Business Development activities in 2004 on out-licensing opportunities as opposed to acquisitions.

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 further information, please contact Ken Howling at 905-286-3000 or send inquiries to [e-mail].

"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995.

To the extent any statements made in this release contain information that is not historical, these statements are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. We have based these forward-looking statements on our current expectations and projections about future events. While we believe our cash flow is adequate to meet our liquidity requirements, there are no guarantees that they will or that Biovail can obtain alternative sources of financing if required. Our actual results could differ materially from those discussed in, or implied by, these forward-looking statements. Forward-looking statements are identified by words such as "believe", "anticipate", "expect", "intend", "plan", "will", "may" and other similar expressions. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements. Forward-looking statements include, but are not necessarily limited to risks and uncertainties, including the difficulty of predicting FDA approvals, acceptance and demand for new pharmaceutical products, the impact of competitive products and pricing, new product development and launch, reliance on key strategic alliances, availability of raw materials and finished products, third parties, the regulatory environment, fluctuations in operating results and other risks detailed from time to time in the company's filings with the Securities and Exchange Commission.