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STATEMENT BY ICN PHARMACEUTICALS

 COSTA MESA, Calif., Sept. 3 /PRNewswire/ -- ICN Pharmaceuticals, Inc. (NYSE: ICN) issued the following statement today:
 The United Sates Court of Appeals has affirmed the finding of U.S Federal Judge John Sprizzo that stockbroker Rafi Khan violated his fiduciary responsibility to ICN by trading on insider information.
 Quoting directly from Judge Sprizzo's finding, "I find that in fact he was trading on inside information ... I think the record supports an inference that there was inside information available to Mr. Khan and that he acted upon that information, as his stock transactions reflect, in his efforts to use whatever leverage he had as a result of that inside information to benefit himself."
 We would also point out that Khan, in his latest statement, attempts only to refute one of the very serious charges made against him. He fails to say anything about the finding that he lied under oath in a Federal Court. Nor does he have anything to say about the finding that he willfully failed to disclose material information in his filings with the Securities and Exchange Commission.
 Judge Sprizzo said that Khan had willfully lied under oath during a hearing on the case and provided testimony that was "false and willfully false."
 We note that the ruling of the Appellate Court reads in part, "In this case, however, it is clear that corrective disclosure (by Khan) would not address all the securities law violations that Khan was found to have committed. The district court explicitly concluded, on the basis of factual determinations that are amply supported in the record, that Khan has engaged in illegal insider trading of ICN's common stock."
 ICN will be seeking a new injunction against Khan preventing him from proceeding and will seek monetary damages.
 Sprizzo enumerated a range of failures by Khan to disclose material information in his filings with the Securities and Exchange Commission. "The court finds for the record that there are many material nondisclosures in the consent statement."
 Sprizzo took note of Khan's failure to include in his SEC filings the fact that Khan was part of a group. "Therefore, I find as a matter of fact that he was part of a group which had undertaken to finance him ..." The judge noted Khan's changing testimony regarding his representation of other shareholders in the attempt to take control of ICN, "... another example, it seems, of Mr. Khan's shifting view of the truth, depending on what his interest is at the moment." The judge further said, "I conclude therefore ... that Mr. Khan was in fact representing a group. His failure to disclose that in the statements, in my view, makes the statements materially false and, I think, based upon the evidence, designedly so. That is a most material nondisclosure."
 Note that the appeals court sent the case back to Sprizzo because of the nature of the injunction Sprizzo issued. The appeals court did nothing to refute the very serious findings Judge Sprizzo reached.
 -0- 9/3/93
 /CONTACT: Doug Schoen of ICN Pharmaceuticals, 212-534-4000/
 (ICN) CO: ICN Pharmaceuticals, Inc. ST: California IN: MTC SU:


TS-MP -- NY038 -- 8955 09/03/93 16:39 EDT
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Publication:PR Newswire
Date:Sep 3, 1993
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