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UPDATE: Valeant Complains to SEC Regarding Allergan Claims

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Valeant Pharmaceuticals
International, Inc. ("Valeant") (NYSE: VRX) (TSX: VRX) has contacted both
the Autorite des marches financiers ("AMF") in Quebec and the U.S.
Securities and Exchange Commission ("SEC") regarding Allergan Inc.'s (NYSE: AGN) apparent attempt to mislead investors and manipulate the market for
Valeant common shares by continuing to make false and misleading statements
regarding Valeant's business despite Valeant's public statements correcting
such information. The latest misleading statements were made last Friday
when Allergan falsely asserted in an SEC filing that Bausch + Lomb's
pharmaceutical sales were stagnant or declining. Contrary to Allergan's
statements this past Friday, Bausch + Lomb's global prescription
pharmaceutical business, which represents less than 20% of Bausch + Lomb
total sales, grew approximately 6% in the second quarter of 2014, while the
U.S. prescription pharmaceutical business grew 17%, as compared to the prior
year, with well over 70% of that growth attributable to volume increases.
Valeant's decision to contact the authorities also reflects concerns raised
by several Canadian Valeant shareholders about comments made about Valeant
by Allergan's management during recent meetings with these investors in
Canada.
"We can no longer tolerate unjustified attacks on Valeant's business and
strongly believe we are obligated to take action to protect Valeant
shareholders from Allergan's apparent attempts to mislead investors and
manipulate the market for Valeant stock," said J. Michael Pearson, chairman
and chief executive officer. "Allergan's continued disparagement of Valeant
and repeated questioning of Bausch + Lomb's performance demonstrate their
fundamental lack of knowledge about Valeant's business. Valeant has owned
Bausch + Lomb for 11 months and the business has performed extremely well,
delivering total organic growth of 11% since the acquisition, with over 90%
of that growth attributable to volume. With our continued success with
Bausch + Lomb, we believe that the Bausch + Lomb transaction is a perfect
blueprint for our proposed merger with Allergan.
"Finally, we do not believe that it is productive for either company to
conduct due diligence in a public forum and although we have consistently
offered Allergan the opportunity to conduct due diligence on our business,
its management and board have refused, and have instead chosen to make
misrepresentations and false statements about our business," continued
Pearson. "Their ongoing tactics reinforce how imperative it is that
Allergan stockholders call a special meeting to amend the company's unduly
onerous and non-stockholder friendly by-laws, remove six directors, and
propose the appointment of new directors, who will thoroughly evaluate
Valeant's offer, which represents a strategically compelling and enormously
value-creating opportunity for Allergan stockholders at a 50%+ premium to
Allergan's unaffected share price."

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