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KHAN DETAILS APPEALS COURT DECISION

 LOS ANGELES, Aug. 31 /PRNewswire/ -- Rafi Khan today issued a statement correcting what he believes to be a misleading press release issued by ICN Pharmaceuticals Inc. with respect to the recent decision of the United States Court of Appeals for the Second Circuit. As previously announced, the Appeals Court unanimously vacated a preliminary injunction issued by the District Court in connection with Khan's effort to replace the board of directors of ICN.
 The Appeals Court did find, as stated in the ICN press release, that Khan was a statutory underwriter and had fiduciary duties to ICN and its subsidiary, Viratek. However, the court went on to adopt Khan's position and rule that "his duty as a fiduciary is owed to the shareholders of ICN and Viratek, rather than to their incumbent managements," and that such duty was not breached by his effort to unseat the ICN board.
 The Appeals Court noted that the "central themes of the federal securities laws concerning regulation of contests for corporate control ... are (1) full disclosure, and (2) a level playing field that does not unduly advantage either incumbent management or its challenger," and concluded that "a permanent ... ban against participation in a takeover should rarely, if ever, be imposed."
 -0- 8/31/93
 /CONTACT: Fran Daniels, 310-278-4413/


CO: ICN Pharmaceuticals Inc. ST: California IN: MTC SU:

EH-JB -- LA015 -- 7490 08/31/93 12:12 EDT
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Publication:PR Newswire
Date:Aug 31, 1993
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