Salix Pharmaceuticals Prices Convertible Notes Offering

Salix Pharmaceuticals, Ltd.

today announced the pricing of its offering of $600 million aggregate principal amount of 1.5% convertible senior notes due 2019 to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. Salix has also granted an option to the initial purchasers of the notes to purchase up to an additional $90 million aggregate principal amount of notes to cover overallotments. The coupon on the notes will be 1.5% per year on the principal amount. Interest will accrue from March 16, 2012, and will be payable semi-annually in arrears on March 15 and September 15 of each year, beginning September 15, 2012. The notes will mature on March 15, 2019, unless previously converted or repurchased in accordance with their terms. The notes will be convertible, under certain circumstances, into cash, shares of Salix's common stock or any combination thereof at Salix's election. The initial conversion rate for the notes will be 15.1947 shares of Salix's common stock per $1,000 principal amount of notes, which is equivalent to an initial conversion price of approximately $65.81 per share of common stock and represents a conversion premium of approximately 35% over the last reported sale price of Salix's common stock on March 12, 2012, which was $48.75 per share. The conversion rate and the conversion price will be subject to adjustment in certain events, such as distributions of dividends or stock splits.