Banca IMI Investment Seminar Milan, 8 March Exceeding our targets

Banca IMI Investment Seminar - Milan, 8 March 2001 Giovanni Recordati Giovanni Recordati Chairman and Chief Executive Officer Chairman and Chief Executive Officer Fritz Squindo Fritz Squindo Chief Financial Officer Chief Financial Officer Walter Bevilacqua Walter Bevilacqua Vice President Corporate Development Vice President Corporate Development 1

Giovanni Recordati Chairman and Chief Executive Officer 2

3 WHO WE ARE In business for 75 yearsIn business for 75 years A public company since 1984A public company since 1984 Always profitable, a regular dividend paidAlways profitable, a regular dividend paid A strong, aggressive marketerA strong, aggressive marketer A long-lasting commitment to R&DA long-lasting commitment to R&D R&D success accelerates growthR&D success accelerates growth

4 KEY EVENTS IN 2000 Strong improvement in businessStrong improvement in business Expansion in France completed successfullyExpansion in France completed successfully Zanidip ® license for the USAZanidip ® license for the USA Pharmacia agreement: a strong basis for further growthPharmacia agreement: a strong basis for further growth

Fritz Squindo Chief Financial Officer 5

YEAR 2000 RESULTS YEAR 2000 RESULTS QUARTERLY SALES AND EBIT QUARTERLY SALES AND EBIT COMPOSITION OF SALES COMPOSITION OF SALES YEAR 2000 GROWTH YEAR 2000 GROWTH EBITDA BY BUSINESS AREA EBITDA BY BUSINESS AREA CAPITAL EMPLOYED CAPITAL EMPLOYED 6

% % % % % % % % % % % % 30.9% 41.8% 142.5% 107.1% 128.9% 89.3% Change % 21.6% YEAR 2000 RESULTS Net Sales Gross Profit as % of sales Operating Income as % of sales Pretax Income as % of sales Net Income as % of sales EBITDA (billion lira) R&D Expenses as % of sales

8 QUARTERLY SALES DEVELOPMENT

9 QUARTERLY EBIT DEVELOPMENT

% 1999 Change % YEAR 2000 COMPOSITION OF SALES (billion lira) PHARMACEUTICALS % 47.7 ACTIVE INGREDIENTS & INTERMEDIATES TOTAL ITALY INTERNATIONAL % % % % % % % %

Change % % % % % % % 6.5% % % % % % % YEAR 2000 COMPOSITION OF PHARMACEUTICAL SALES Pharmaceuticals Italy Pharmaceuticals France International licensees International pharmaceuticals TOTAL PHARMACEUTICALS Pharmaceuticals Spain (billion lira)

% 29.1% YEAR 2000 SOURCES OF GROWTH Pharmaceuticals Total Growth 1.7% 1.8% Total % % (% change, 2000 over 1999) Price / Exchange 16.5% % Pharmaceutical Chemicals Organic Growth, total 1.9% 2.0% 12.6% 1.8% Acquisitions % + 3.9% Volume

% % 7.1% YEAR 2000 EBITDA BY BUSINESS AREA Pharmaceuticals as % of sales Operating Income as % of sales % % Change % % % (billion lira) * Including inter-company sales % Pharmaceutical Chemicals as % of sales* Total as % of sales % % % % Operating depreciation Goodwill amortization % + 6.6% % 1999

14 IMPACT OF ACQUISITION OF BOUCHARA Consolidated since Q3Consolidated since Q3 Contributes to sales growthContributes to sales growth Goodwill amortized over 5 years, starting Q3 2000Goodwill amortized over 5 years, starting Q Contributes to EBIT after amortization of goodwillContributes to EBIT after amortization of goodwill

/ (36.5) CAPITAL EMPLOYED Net Working Capital for Operations Net Non-current Assets of which goodwill Reserves for Long - term Liabilities FINANCING OF CAPITAL EMPLOYED Net Debt Shareholders’ Equity CAPITAL EMPLOYED (billion lira) (43.1) /12

Walter Bevilacqua Vice President Corporate Development 16

ZANIDIP ® WORLDWIDE SITUATION AND OUTLOOK 17

18 ZANIDIP ® (LERCANIDIPINE) A COMPARATIVE PRODUCT PROFILE Latest generation calcium-channel blockerLatest generation calcium-channel blocker Natural once a dayNatural once a day Efficacy comparable to best competitorsEfficacy comparable to best competitors Excellent / superior tolerability and safety profileExcellent / superior tolerability and safety profile

19 ZANIDIP ® (LERCANIDIPINE) THE REFERENCE MARKET Hypertension is the largest indication worldwide - over $30 billionHypertension is the largest indication worldwide - over $30 billion Addressed by several classes of drugsAddressed by several classes of drugs CCBs are one of the largest, about $10 billionCCBs are one of the largest, about $10 billion The leading brand is Norvasc(amlodipine), sold by Pfizer, about $3.4 billionThe leading brand is Norvasc ® (amlodipine), sold by Pfizer, about $3.4 billion

20 LERCANIDIPINE IN ITALY MARKET SHARE AS A % OF NORVASC ®

21 LERCANIDIPINE IN ITALY MARKET SHARE AS A % OF OTHER CCBs (amlodipine excluded)

YEAR 2000 LERCANIDIPINE SALES SALES TO LICENSEES* (billion lira) Change % %8.6% * Excluding licensing income DIRECT SALES % OF TOTAL SALES TOTAL

23 ROLL OUT HISTORY 1998 AUSTRIAGREECEISRAELITALYLUXEMBOURG NETHERLANDS * SPAINUK 1999 BELGIUMBRAZILLEBANON 1H-2000 CHILEDENMARKFINLANDKOREAPHILIPPINESSWEDEN 2H-2000 CYPRUSGERMANYKUWAITNORWAYPAKISTAN EXPECTED2001 ARGENTINAFRANCEECUADOR HONG KONG MEXICOSINGAPORETAIWANTURKEYVENEZUELAVIETNAM * Dec. 1997

24 ROLL OUT PLAN AUSTRALIA CANADA CHINA USA (filing expected 2H 2001) JAPAN (local phase III studies) Key countries where regulatory development is ongoing:

25 LICENSING / ROLL OUT TARGETS ANNOUNCED FOR 2003 TO BE MET IN 2001 ROLL OUT PLAN

ZANIDIP ® IN THE USA FOREST LABORATORIES LICENSE AGREEMENT 26

27 THE HYPERTENSION MARKET IN THE USA Hypertension affects over 50 million people in the U.S.Hypertension affects over 50 million people in the U.S. Market size exceeding 10 bn US$ in annual salesMarket size exceeding 10 bn US$ in annual sales Calcium Channel Blockers account for well over one third of the anti-hypertensive market…Calcium Channel Blockers account for well over one third of the anti-hypertensive market… Norvasc ® sales exceed $1.5 billionNorvasc ® sales exceed $1.5 billion Source: Recordati / Forest Laboratories

28 FOREST LABORATORIES: THE RIGHT PARTNER Annual sales exceeding 1.1 billion US$Annual sales exceeding 1.1 billion US$ Sales force of over 1400 RepsSales force of over 1400 Reps Established presence in the cardiovascular marketEstablished presence in the cardiovascular market Tiazac ® sales exceeding 150 ml US$ (5% market share)Tiazac ® sales exceeding 150 ml US$ (5% market share) Strong track record in European partnerships & collaborations in FDA filingsStrong track record in European partnerships & collaborations in FDA filings Source: Forest Laboratories

29 TIAZAC ® SALES DEVELOPMENT (million USD) % market share Source: Forest Laboratories Fiscal year ending March

30 FILLING THE PIPELINE: ONGOING R&D LERCANIDIPINE - CLINICAL PROFILE - PATENT EXTENSIONS - NEW COMBINATION PRODUCT - GENE EXPRESSION STUDIES GENITO-URINARY DISORDERS - URINARY INCONTINENCE/ UNSTABLE BLADDER - BENIGN PROSTATIC HYPERPLASIA - FEMALE SEXUAL DYSFUNCTION LERCANIDIPINE - CLINICAL PROFILE - PATENT EXTENSIONS - NEW COMBINATION PRODUCT - GENE EXPRESSION STUDIES GENITO-URINARY DISORDERS - URINARY INCONTINENCE/ UNSTABLE BLADDER - BENIGN PROSTATIC HYPERPLASIA - FEMALE SEXUAL DYSFUNCTION

31 Genitourinary Alliance Recordati - Pharmacia 1. The alliance takes advantage of each partner's strength in this area. It aims at gaining a leadership position in the pharmacological treatment of a number of genitourinary disorders, particularly of micturition. 2. The initial announcement concerns the overactive bladder program. 3. The alliance has started work based on Recordati's discoveries. 4. Research will be mainly conducted at Recordati. Pharmacia will be responsible for development. Recordati will manufacture the active ingredients based on its compounds. 5. Pharmacia will have worldwide marketing rights with Recordati co- marketing in certain territories.

Giovanni Recordati Chairman and Chief Executive Officer 32

TARGETS (Milan, May 2000) Net Sales Gross Profit as % of sales EPS (lira) Operating Income as % of sales % % % 931 R&D % % % % % % 3092 CAGR % 18.8% 14.2% 36.7% 35.0% (billion lira)

EXCEEDING OUR TARGETS NET SALES OPERATING INCOME 10.4% 11.0% % 13.1%  13% (billion lira) AS PRESENTED MAY 2000 CURRENTOUTLOOK EPS (lira, pre-split) DEBT TO EQUITY < 0.5 ex acquisitions 2127 EBITDA 19.8% 19.8%  20%

Banca IMI Investment Seminar Milan, 8 March Exceeding our targets