UPDATE: Allergan Board Offers Statement, Says Valeant's Bid 'Grossly Inadequate'

The Board of Directors of Allergan, Inc.

(“Allergan” or the “Company”) today issued the following statement: There has recently been significant and potentially distracting market speculation regarding Allergan, so, as the Company's Board of Directors, we think it is important to reiterate our unanimous perspective. Our conclusion that Valeant's offer is grossly inadequate and substantially undervalues Allergan remains unchanged. We continue to believe strongly that Valeant's offer does not appropriately reflect the underlying value of Allergan's assets, operations and prospects, including Allergan's industry-leading franchises of global scale and its projected growth opportunities. To that point, we note that since Valeant Pharmaceuticals International, Inc. (“Valeant”) first made its unsolicited proposal to acquire Allergan on April 22, 2014, Allergan's already leading growth trajectory has been accelerated through: * Operational excellence, with Allergan demonstrating a continuation of the significant momentum in its businesses that began in early 2013, driven by strong double digit sales growth and numerous regulatory approvals around the world; * Outstanding sales growth in the second quarter of 2014, with significant contributions from nearly all of Allergan's businesses and major products, translating into the greatest increase in absolute dollar sales during any quarter in the Company's 64 year history; * Exceeding and raising guidance, with Allergan again delivering sales and earnings per share (EPS) growth above the high end of expectations, continuing the Company's longstanding and consistent track record of delivering superior results; and * A restructuring and value creation plan that will significantly reduce costs by approximately $475 million annually relative to Allergan's prior strategic plan, while preserving the strength of the Company's R&D pipeline and its ability to deliver double digit sales growth during the next five years. Over the same five year period, Allergan expects to generate compounded annual adjusted EPS growth of more than 20 percent, which translates into $10.00 per share of adjusted EPS in 2016. Importantly, Allergan's strategic plan will also generate considerable free cash flow of approximately $18 billion during the period, which provides significant upside to current EPS targets. As a Board, we have a longstanding track record of consistently acting in the best interests of Allergan's stockholders by delivering superior performance as prudent stewards of capital. Thus, while we will not comment on market rumors or speculation, we remain focused on our shared commitment to enhancing stockholder value. Goldman, Sachs & Co. and BofA Merrill Lynch are serving as financial advisors to the Company and Latham & Watkins, Richards, Layton & Finger, P.A. and Wachtell, Lipton, Rosen & Katz are serving as legal counsel to the Company.