Milan, 9 May Building Value

Milan, 9 May 2001 Giovanni Recordati Giovanni Recordati Chairman and Chief Executive Officer Chairman and Chief Executive Officer Walter Bevilacqua Walter Bevilacqua Vice President Corporate Development Vice President Corporate Development Avi Sartani Avi Sartani Vice President Pharmaceutical R&D Vice President Pharmaceutical R&D 1

Giovanni Recordati Chairman and Chief Executive Officer 2

3 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

4 KEY TRENDS IN Q Sales up 40.4%Sales up 40.4% Double digit organic growth continuesDouble digit organic growth continues International sales over 60% of total salesInternational sales over 60% of total sales Strong increase in international sales ofStrong increase in international sales oflercanidipine Further increase in profitabilityFurther increase in profitability

Walter Bevilacqua Vice President Corporate Development 5

% % % % % Q % % % % % % Q % 40.4% 41.2% 64.6% 20.2% 14.4% 66.7% Change % (9.9)% RESULTS Q Net Sales Gross Profit as % of sales EBIT Pretax Income as % of sales Net Income as % of sales EBITDA (billion lira) R&D Expenses as % of sales

7 Q Q (0.3) 16.2 Change % 54.2% n.s. 14.4% NET INCOME (billion lira) Net Income from Operations Non-recurring Income / Expense, (Net) Net Income, Comprehensive

8 Q % Q Change % COMPOSITION OF SALES (billion lira) PHARMACEUTICALS % 80.8 ACTIVE INGREDIENTS & INTERMEDIATES TOTAL ITALY INTERNATIONAL % % % % % % % %

9 Q Q Change % % % % % % % % % % % % % COMPOSITION OF PHARMACEUTICAL SALES Pharmaceuticals Italy Pharmaceuticals France International licensees International pharmaceuticals TOTAL PHARMACEUTICALS Pharmaceuticals Spain (billion lira)

% 39.9% SOURCES OF GROWTH Pharmaceuticals Total Growth 0.9% 0.5% Total % % (% change, Q over Q1 2000) Price / Exchange 28.5% % Pharmaceutical Chemicals Organic Growth, total 7.4% -0.7% 11.4% 0.5% Acquisitions % + 6.7% Volume

% % EBITDA BY BUSINESS AREA EBITDA BY BUSINESS AREA Pharmaceuticals as % of sales EBIT % % Change % % % (billion lira) * Including inter-company sales Q % Pharmaceutical Chemicals as % of sales* Total as % of sales % % % % Operating depreciation Goodwill amortization % + 3.4% % Q1 2000

DEC (43.1) CAPITAL EMPLOYED Net Working Capital for Operations Net Non-current Assets Reserves for Long - term Liabilities FINANCING OF CAPITAL EMPLOYED Net Debt Shareholders’ Equity CAPITAL EMPLOYED (billion lira) (42.9) MAR NET DEBT / EQUITY RATIO 0.94  0.43

ZANIDIP ® WORLDWIDE SITUATION AND OUTLOOK 13

14 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

15 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

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

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

18 ROLL OUT HISTORY 1998 AUSTRIAGREECEISRAELITALYLUXEMBOURG NETHERLANDS * SPAINUK 1999 BELGIUMBRAZILLEBANONCHILECYPRUSDENMARKFINLANDGERMANYKOREAKUWAITNORWAYPAKISTANPHILIPPINESSWEDEN 2000 EXPECTED2001 ARGENTINAFRANCEECUADOR HONG KONG MEXICOSINGAPORETAIWANTURKEYVENEZUELAVIETNAM * Dec. 1997

19 ROLL OUT PLAN LAUNCHED:25 countries, representing approx. 29% of world market (of which 15% in last 12 months) APPROVED:4 additional countries FILED FOR APPROVAL:32 additional countries LICENSED:>40 additional countries Status Today:

20 ROLL OUT PLAN AUSTRALIA(registered, launch late early 2002) CANADA CHINA USA (filing expected 2H 2001) JAPAN (local phase III studies) Key countries where regulatory development is ongoing:

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

ZANIDIP ® IN THE USA FOREST LABORATORIES LICENSE AGREEMENT 22

23 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

24 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

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

Avi Sartani Vice President Pharmaceutical R&D 26

27 DRIVERS FOR GROWTH LICENSED-IN PRODUCTS Focus, determination, speed and willingnessFocus, determination, speed and willingness to invest Multi-territorial presenceMulti-territorial presence Growing interest in the cardiovascularGrowing interest in the cardiovascular therapeutic area A pipeline with the right balance betweenA pipeline with the right balance between potential and risks as well as time to market

28 FILLING THE PIPELINE: LICENSING-IN ACTIVITIES At least 2 significant projects are in advanced negotiations for products in the cardiovascular area.At least 2 significant projects are in advanced negotiations for products in the cardiovascular area.

29 FILLING THE PIPELINE: ONGOING R&D Lercanidipine:Lercanidipine: - Consolidate its advantageous clinical profile - Extend its patent life

30 FILLING THE PIPELINE: ONGOING R&D Lercanidipine-ACEI fixed combination:Lercanidipine-ACEI fixed combination: - New aggressive targets for blood pressure control control - Combination of drugs needed for most patients - Patient compliance - Fixed combinations will play a significant role in the future hypertension market. in the future hypertension market.

31 FILLING THE PIPELINE: ONGOING R&D Urology:Urology: - Collaboration agreement with Pharmacia - Lead optimization in the area of overactive bladder is at an advanced stage bladder is at an advanced stage - Formulation activities are underway on a lead compound for female sexual dysfunction compound for female sexual dysfunction

Giovanni Recordati Chairman and Chief Executive Officer 32

33 Basis for targets Current businessCurrent business Current products/late stage projectsCurrent products/late stage projects Current geographyCurrent geography Zanidip in U.S., Japan not includedZanidip in U.S., Japan not included ®

TARGETS Net Sales Gross Profit as % of sales EBIT % % % R&D %708.5% % % % % CAGR % 12.1% 10.1% 17.3% (billion lira) EBITDA as % of sales % % 14.3% %

35 EVOLUTION OF NET SALES & EBIT (billion lira) EBIT Net Sales 13.1% % 14.1% 15.2% 16.3% 10.4% 11.0% 12.1% 13.0% EBIT Prev. targets

36 RECORDATI IN Pharmaceutical Chemicals CAGR % 12.6% 8.5% Net Sales Other Countries Italy Pharmaceuticals % %

Milan, 9 May Building Value