Biovail Reaches FTC Settlement Regarding Adalat Agreement.

Business Editors/Health & Medical Writers

Biovail Corporation (NYSE:BVF)(TSX:BVF) announced today that is has entered into a settlement with Elan Corporation, PLC (NYSE:ELN) and the Federal Trade Commission ("FTC") in which Elan and Biovail have agreed to dissolve their Licensing Agreement (the "Adalat Agreement") relating to the licensing of a generic version of Adalat. Under the terms of the settlement with the FTC, Biovail and Elan agreed to unwind the Adalat Agreement so that each of Elan and Biovail will henceforth be respectively responsible for the manufacturing and marketing of its own 30mg and 60mg generic Adalat products. The FTC settlement also allows Biovail a guaranteed supply of the 30mg generic Adalat product from Elan during Biovail's transition to internal production of this dosage. Biovail's commercialization of the current 30mg and 60mg products will continue unabated and without interruption. Moreover, the FTC settlement will have no material impact on Biovail's expected revenues from these products, or on its overall product strategies.

Biovail maintains that the Adalat Agreement is lawful and pro-competitive. The Adalat Agreement allowed Biovail to introduce into the marketplace Elan's 30mg generic version of Adalat CC earlier than otherwise possible, and subsequently Biovail's own 60mg generic version of Adalat. The Adalat Agreement also allowed Biovail to market effectively against the Adalat brand, introducing a combination of the 30mg and 60mg products earlier than either Elan or Biovail could have accomplished alone. Consumers benefited from increased supply and lower market price.

Biovail's Consent Agreement with the FTC, which provides for the unwinding of the Adalat Agreement, also specifically states that the Consent Agreement is for settlement purposes only and that it does not constitute an admission by Biovail that any law has been violated or that any FTC factual assertion is correct. Nevertheless, Biovail agreed to settle with the FTC in order to resolve these issues in a speedy and permanent manner. There are no financial or other penalties either expressed or envisioned by the settlement.

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

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To the extent any statements made in this release contain information that is not historical, these statements are essentially forward looking and are subject 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, 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.