Counsel Corporation Completes The Acquisition of Faro Pharmaceuticals, Inc.

TORONTO--(BUSINESS WIRE)--Aug. 17, 1998--Counsel Corporation (NASDAQ:CXSNF) (TSE:CXS.)

Faro Pharmaceuticals Gives Counsel Corporation an Entry into the Significant U.S. Emerging Pharmaceuticals Industry Segment

Allan Silber, Chairman and Chief Executive Officer of Counsel Corporation today announced the completion of the acquisition of a controlling interest in FARO Pharmaceuticals, Inc. This company becomes an important new affiliate of Counsel Corporation. FARO is focused on the fast-growing market for below threshold drugs called the Emerging Pharmaceuticals Industry. These are products with less than $50 million in annual sales each. Collectively they accounted for more than $29 billion in annual revenues in the United States in 1997.

FARO, like other companies in its segment, in-licenses, acquires, or co-promotes products that larger pharmaceutical companies want to divest.

FARO is currently focusing its efforts on podiatry, and has identified other physician specialty groups for future growth such as rheumatology and plastic surgery. Supporting its initiatives in podiatry, FARO has a strategic alliance with Glaxo Dermatology, a division of Glaxo Wellcome, Inc.

FARO will leverage its relationship with Counsel Corporation to accelerate and implement its product acquisition programs. Counsel will contribute significant value to FARO's shareholders as it will provide access to existing Counsel companies and strategic business relationships in healthcare.

Matthew C. Flemming will continue as Chairman and CEO of FARO. Counsel Corporation has been active in the healthcare sector since 1983. It is currently involved in three segments of the U.S. health care service industry: specialty retail pharmacy through 100 percent-owned Stadtlanders, home health care through 27 percent-owned American HomePatient Inc. (NASDAQ - AHOM), and institutional pharmacy through 9 percent-owned PharMerica, Inc. (NASDAQ - DOSE).

This release involves forward-looking statements with respect to business plans, acquisition prospects, development of relationships with third parties and other plans and expectations on the part of the Company. The accuracy of these statements involve a number of risks and uncertainties, including but not limited to the availability of acquisition prospects and financing for such prospects, changing economic and market conditions that would impact such prospects or financing related thereto, changes in governmental reimbursement regulations and laws which could impair or hinder the entering into strategic alliances of preferred provider agreements, as well as other risk factors detailed in the securities filings of Counsel Corporation (NASDAQ - CXSNF; TSE - CXS) to which recipients of this release are referred for additional information concerning the Company and its prospects.

    CONTACT:  Counsel Corporation
               Morris Perlis, 416/866-3193
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               Counsel Corporation
               Stephen Weintraub, 416/866-3058