DENTSPLY International, Inc. Announces Agreement to Acquire the Dental Injectible Anesthetic Business of AstraZeneca.

Business Editors

YORK, Pa.--(BUSINESS WIRE)--Jan. 19, 2001

DENTSPLY International Inc., (NASDAQ:XRAY) announced today that the Company has agreed to acquire the dental injectible anesthetic assets of AstraZeneca, including licensing rights to the dental trademarks, for $136.5 million and royalties on future sales of AstraZeneca's revolutionary new anesthetic product for scaling and root planing (Oraqix(TM)) currently in Stage III clinicals.

The $136.5 million purchase price will be paid as follows: $96.5 million will be paid at close, $20 million will be a contingency payment associated with sales of injectible dental anesthetic, $10 million as a milestone payment upon submission of an Oraqix New Drug Application (NDA) in the U.S., and Marketing Authorization Application (MAA) in Europe, and $10 million as a milestone payment upon approval of the NDA and MAA.

All of these payments are expected to be paid within 24 months of closing. The acquisition is targeted to close March 1, 2001. This transaction is expected to add $65 million to DENTSPLY's annual sales.

AstraZeneca's dental injectible anesthetic business, with a worldwide market share of 40%, is the global market share leader in dental anesthetics -- the second largest dental consumable category. With product drug registrations in over sixty countries, its brand names such as Xylocaine(R), Citanest(R), and Polocaine(R) are among the most powerful trade names in dentistry.

DENTSPLY has also acquired full rights to Oraqix - AstraZeneca's revolutionary new anesthetic product for scaling and root planing associated with periodontal treatment, currently in Stage III clinicals. An NDA and MAA are expected to be filed during the third quarter of 2001.

Oraqix is in a gel format and provides pain relief similar to an injectible anesthetic without requiring a needle for application.

In commenting on this transaction, John C. Miles II, Chairman and Chief Executive Officer of DENTSPLY said, "We are very excited to announce another significant acquisition which will fill another large product gap in our arsenal of dental products. It's a very unique opportunity to be able to acquire the global market share leader in a major dental consumable segment. Additionally, Oraqix, while still pending regulatory approval, holds the promise of a major increase in anesthetic sales by providing a solution to the current clinical issue of pain during scaling and root planing procedures. Finally, this acquisition provides DENTSPLY with a base to establish a dental pharmaceutical business, including analgesic and anti-infective products."

DENTSPLY was advised on the transaction by UBS Warburg.

A conference call has been scheduled for Monday, January 22, 2001 at 8:30 a.m. Eastern Standard Time.

You are invited to participate in the conference call. In order to participate, dial in on the appropriate line (U.S. Callers 800-873-4866 - International Callers 212-676-5372 ) at 8:30 a.m. and you will be able to discuss this Press Release with DENTSPLY's Chairman and Chief Executive Officer, Mr. John Miles; President and Chief Operations Officer, Mr. Gary Kunkle; and Senior Vice President and Chief Financial Officer, Mr. Bill Jellison.

An on-line rebroadcast will be available to institutional investors at: www.dentsply.com. This will be available for 45 days.

DENTSPLY designs, develops, manufactures and markets a broad range of products for the dental market. The Company believes that it is the world's leading manufacturer and distributor of dental prosthetics, endodontic instruments and materials, prophylaxis paste, dental sealants, ultrasonic scalers, and crown and bridge materials; the leading United States manufacturer and distributor of dental x-ray equipment, dental handpieces, dental x-ray film holders, film mounts and bone substitute/grafting materials; and a leading United States manufacturer or distributor of impression materials, orthodontic appliances, dental cutting instruments, intraoral cameras and dental operatory software systems.

The Company distributes its dental products in over 100 countries under some of the most well established brand names in the industry.

DENTSPLY is committed to the development of innovative, high quality, cost-effective new products for the dental market.

This press release contains forward-looking statements concerning sales and earnings expectations and other matters. Actual results could differ materially from these expectations as a result of certain risk factors, including those stated herein as well as those described in the Company's Annual Report on Form 10-K for the year ended December 31, 1999.