Mylan Laboratories Inc has agreed to a tentative settlement under which it will receive $12.5 million from Aventis Pharmaceuticals Inc. The Company also announced that it will receive an additional $10 million from its co-defendants in the lorazepam and clorazepate litigation.

Mylan will receive the $12.5 million payment from Aventis in return for its agreement to settle claims related to contracts for the marketing and manufacturing of Zagam. In addition, Aventis has agreed to the dismissal of its counterclaims against Mylan and the termination of the two agreements in question.

Mylan previously announced the settlement in principle of the direct purchaser lorazepam and clorazepate anti-trust litigation for $35 million. Mylan's co-defendants agreed to an initial contribution of approximately $7 million, toward the $35 million settlement. Their contribution has now increased by an additional $10 million which reduces Mylan's share of the total settlement to approximately $18 million. Mylan will receive the $10 million in five annual payments of $2 million each.

Robert J. Coury, Vice Chairman and CEO stated, "Once again we are very pleased that we have tentatively resolved another legal dispute and we are equally pleased that we have been able to reduce our share of the anti-trust settlement by another $10 million."