Commerce Bank Announces Launch of Venture Fund Targeting Healthcare and Life Science Companies.

Business Editors/Health/Medical Writers

NEW YORK--(BUSINESS WIRE)--Jan. 22, 2004

Commerce Bancorp, Inc. (NYSE:CBH) today announced that the company and Barr Ventures, LLC, a subsidiary of Barr Pharmaceuticals Inc. (NYSE:BRL) have agreed to contribute funds to form Commerce Health Ventures, Inc., a new venture capital fund. The Fund also announced that it has entered into a strategic consulting relationship with GNYHA Ventures, Inc., a subsidiary of the Greater New York Hospital Association.

Commerce Health Ventures will provide equity capital to intermediate and late-stage companies in healthcare and life sciences with a particular emphasis in the northeast region of the United States, including New York, New Jersey, and Pennsylvania, where many healthcare and life sciences companies are located.

In accordance with the Fund's strategic affiliation agreement, GNYHA Ventures will assist the Fund in identifying promising technologies, products and services in the fields of healthcare and life sciences and use its extensive knowledge of the healthcare field to assist the Fund in recognizing these opportunities.

The venture fund currently has $25 million in investments and plans to target up to $150 million.

"We are excited about the participation of GNYHA Ventures, Inc. and Barr Ventures, LLC in this fund," said Robert Falese, Commerce Bank's Chief Lending Officer. "The Commerce Health Ventures fund represents another dynamic commitment by Commerce Bank to provide financing for the healthcare sector, particularly in Metro New York."

Commerce Bank's team of healthcare lenders associated with the Fund will be led by Gregory Braca, Commerce's Metro New York Market Manager.

"We are confident that GNYHA Ventures' expertise and knowledge of the healthcare field, particularly in the New York metropolitan area, will be a great asset to the Commerce Health Ventures fund," said Braca. "We are particularly pleased that the Fund will focus on the northeast region - a key strategic market for Commerce Bank - where we hope to continue to develop relationships with a variety of promising, growing companies in the healthcare field."

Commerce Bancorp is a leader in healthcare financing serving acute care hospitals, long term care facilities, research facilities, biotechnology, physician practices, healthcare insurers, pharmaceutical companies, and software suppliers to the industry.

Lee H. Perlman, President of GNYHA Ventures, Inc., stated: "We are delighted with our new relationship with Commerce Health Ventures. We believe the Fund has the potential to provide significant opportunities for health care companies and make important contributions to the advancement of medical science."

The Greater New York Hospital Association represents more than 250 not-for-profit hospitals and continuing care facilities, both voluntary and public, in New York, New Jersey, Connecticut, and Rhode Island. Its members include large academic medical centers and teaching institutions that provide state-of-the-art patient care, medical education, and biomedical research. Many of the GNYHA member hospitals are leaders in medical innovation and healthcare technology. GNYHA Ventures and its subsidiaries operate a number of innovative businesses designed to bring high quality products to health care providers at the lowest possible cost.

Barr Ventures, LLC is a subsidiary of Barr Pharmaceuticals, Inc. Barr Pharmaceuticals, Inc. and its subsidiaries are engaged in the development, manufacture and marketing of generic and proprietary pharmaceuticals.

Commerce Health Ventures

The Fund will be managed by Commerce Health Capital, LLC, which has offices in New York City and King of Prussia, Pennsylvania. The Fund's management team consists of Joseph Williamson, Zev Scherl, David Robbins, Richard Lipkin, and NewSpring Capital Management, LLC and its Principals, who will provide strategic investment and administrative support.

About Commerce Bank

Commerce Bank, "America's Most Convenient Bank," is a leading retailer of financial services with more than 270 convenient stores in New Jersey, New York, Pennsylvania, and Delaware. In 2004, the bank plans to add 50 new locations and will create approximately 1,800 career opportunities throughout its territory. Maintaining an aggressive expansion pace, Commerce Bank is working toward a total asset goal of $50 billion and a store network of 500-plus offices by 2007. Commerce Bank currently has nearly $23 billion in assets. For more information about Commerce, please visit the company's interactive financial resource center at commerceonline.com.

About Barr Pharmaceuticals, Inc.

Barr Pharmaceuticals, Inc and its subsidiaries currently manufacture and distribute more than 100 different dosage forms and strengths of pharmaceutical products in core therapeutic categories. A research-intensive pharmaceutical company, Barr's product line is concentrated primarily in the oncology, female healthcare (including hormone therapy and oral contraceptives), cardiovascular, anti-infective and psychotherapeutics therapeutic categories. In its most recent fiscal year ended June 30, 2003, Barr recorded revenues of $903 million.