Valeant Pharmaceuticals Confirms Appropriateness Of Accounting, Appoints Ad Hoc Board Committee To Review Philidor

Valeant Pharmaceuticals International, Inc.

announced today that its Audit and Risk Committee and the full Board of Directors have reviewed the company's accounting for its Philidor arrangement and have confirmed the appropriateness of the company's related revenue recognition and accounting treatment. Based on its review conducted to date, Valeant also believes that the company is in compliance with applicable law. In light of the recent allegations made regarding Philidor, however, the Board of Directors has decided to establish an ad hoc committee of the board to review allegations related to the company's business relationship with Philidor and related matters. The committee will be chaired by Robert Ingram, the company's lead outside director. Other members will include Norma Provencio, chairman of the audit and risk committee; Colleen Goggins; and Mason Morfit, who has been appointed to the Board as an independent director. "As we have said previously, our accounting with respect to the Company's Philidor arrangements is fully compliant with the law," J. Michael Pearson, Chairman of the Board and Chief Executive Officer of Valeant said. "However, other issues have been raised publicly