Barr Pharmaceuticals, Inc. has announced that the Croatian Financial Services Supervisory Agency (HANFA) has approved for publication its amended tender offer for the purchase of 100 per cent of the shares of PLIVA based in Zagreb, Croatia. Under the terms of the formal $ 2.5 billion cash tender offer, PLIVA shareholders who tender their shares will receive HRK 820 per share in cash.

In accordance with Croatian takeover law and HANFA instructions, Barr anticipates that its formal offer will be published in major Croatian newspapers, including the "Official Gazette," The company's previous bid of $ 2.3 billion, or HRK 743 per share, in cash was published in the "Official Gazette" on August 18, 2006, initiating the company's 30-day tender process. On September 4, 2006, a competing bid by the Actavis Group of $ 2.5 billion, or HRK 795 per share, in cash was published in the "Official Gazette." the tender offer period is now expected to expire on October 11, 2006.

The company's ability to close its tender offer is only conditioned upon Barr receiving acceptances that result in the company holding more than 50 per cent of PLIVA shares.

"Our increased offer for PLIVA reflects our commitment to successfully completing this transaction, and the value we place on the combination of our two great companies," said Bruce L. Downey, Barr's chairman and CEO "Together, as the world's third largest generic pharmaceutical company, we will be able to build sustainable shareholder value, enhance the operations of PLIVA throughout Europe, and provide highly-skilled, high quality employment for the people of Croatia. With this enhanced offer, we hope that shareholders will recognize Barr is the most appropriate partner for PLIVA, and that we can move quickly to finalize this transaction, and turn our focus to the integration of the companies and the construction of a global leader in generic, proprietary and biopharmaceutical products."

"As we have repeatedly stated, the benefits of the combination of PLIVA and Barr are beyond question," Downey continued. "Unlike Actavis, where there is significant geographic and product overlap, Barr and PLIVA have two largely complementary product portfolios and R&D capabilities that will result in the ability to offer customers a broad portfolio of solid oral dosage forms, extended and delayed release products, injectables, creams ointments and biopharmaceutical products. The PLIVA name and Croatian-based operations will become the headquarters for the European operations and the European facilities will offer Barr the opportunity to move manufacturing of select products to Croatia, increasing both production and employment at the Croatian and other European facilities. We are committed to maximizing and expanding these strengths, to the benefit of shareholders, employees, and the people of Croatia."