MEDICIS REPORTS RECORD 4TH QTR/FISCAL YEAR RESULTS.

Medicis Pharmaceutical Corporation (NYSE:MRX), Scottsdale, Ariz., has announced fiscal 2001 net income of $51.9 million, or $1.64 per diluted share, absent the first quarter tax-effected special charge of $11.5 million associated with a research project collaboration, on net revenues of $167.8 million, versus fiscal 2000 comparative net income of $43.0 million, or $1.41 per diluted share, on net revenues of $139.1 million. Fiscal 2001 net revenues increased approximately 20.6% as compared to fiscal 2000. Net income including the special charge associated with the research project collaboration was $40.4 million, or $1.28 per diluted share. Cash flow from operations for the fiscal year was $70.6 million, an increase of 71.3%, compared to $41.2 million in fiscal 2000.

The company also reported fourth quarter fiscal 2001 net income of $13.9 million, or $0.44 per diluted share, on net revenues of $43.8 million, versus fourth quarter fiscal 2000 comparative net income of $11.8 million, or $0.38 per diluted share, on net revenues of $39.0 million. Cash flow from operations for fourth quarter fiscal 2001 was $23.9 million, an increase of 70.7%, compared to $14.0 million in the fourth quarter of fiscal 2000.

The company's reported effective tax rate decreased primarily due to a change in investment mix to non-taxable securities, contributions to charitable programs that receive favorable tax treatment and an increase in the company's research and development tax credits. During fiscal 2001, Medicis reported research and development expenditures of $7.7 million, absent the first quarter special charge associated with a research project collaboration, or its targeted goal of 5% of revenues, an increase of 57.6%, compared to $4.9 million in fiscal 2000.

Strong fiscal year and fourth quarter operating results are attributable primarily to the growth of several of the company's core prescription brands LOPROX(R), PLEXION(TM), LUSTRA(R), TRIAZ(R) and OVIDE(R). Additionally, during the fiscal year, Medicis introduced four new products to the company's universe of specialty physicians, PLEXION(TM), PLEXION-TS(TM), ALUSTRA(TM) and OMNICEF(R).

"We are pleased to announce the completion of our eighth consecutive profitable year with strong quarter and fiscal year financial results," said Jonah Shacknai, chairman and Chief Executive Officer of Medicis. "Fiscal 2001 was a year of achievement of several corporate goals. Medicis launched three new products to dermatologists, entered a new strategic market category through a collaborative relationship, and grew core prescription products while effectively balancing the product mix of the company's most profitable brands. Over the next year, Medicis expects to advance its research and development pipeline and to expand its sales force and universe of specialty physicians served."

The company's previously announced fiscal year 2002 revenue guidance of $192.0 million and earnings guidance of $1.88 remains unchanged. The company's previously announced first quarter fiscal year 2002 (for the quarter ending September 30, 2001) revenue guidance of $44.0 million and earnings guidance of $0.42 remains unchanged. The company is also evaluating the potential impact of FAS 142, relating to the amortization of intangible assets. The company's earnings guidance does not include the impact of FAS 142.

Medicis is the leading independent pharmaceutical company in the United States focusing primarily on the treatment of dermatological conditions. Medicis develops and markets leading products for major segments within dermatology, including acne, fungal infections, rosacea, hyperpigmentation, psoriasis, eczema, skin and skin-structure infections, seborrheic dermatitis, head lice and cosmesis (improvement in the texture and appearance of skin).

Primary products include the prescription brands DYNACIN(R) (minocycline HCl), TRIAZ(R) (benzoyl peroxide), LUSTRA(R) (hydroquinone), LUSTRA-AF(R) (hydroquinone) with sunscreen, ALUSTRA(TM) (hydroquinone) with retinol, LOPROX(R) (ciclopirox), PLEXION(TM) (sodium sulfacetamide/sulfur), PLEXION-TS(TM) (sodium sulfacetamide/sulfur), OMNICEF(R) (cefdinir), OVIDE(R) (malathion), LIDEX(R) (fluocinonide), SYNALAR(R) (fluocinolone acetonide), TOPICORT(R) (desoximetasone) and A/T/S(R) (erythromycin); the over-the- counter brand ESOTERICA(R); and BUPHENYL(R) (sodium phenylbutyrate), a prescription product indicated in the treatment of Urea Cycle Disorder.

For more information, call 602/808-3854 or visit http://www.medicis.com.