Watson Pharmaceuticals Inc.

Watson Pharmaceuticals Inc. reported financial results for the first quarter ended March 31, 2008. The company reported net income of $50,629,000 or $0.45 per diluted share on net revenue of $626,949,000 compared to net income of $31,612,000 or $0.29 per diluted share on net revenue of $671,605,000 for the same period a year ago.Net income for the first quarter 2008 included charges related to the Company's Global Supply Chain Initiative, a milestone payment, debt repurchase costs, and a gain on the sale of securities. Excluding special items as detailed in the reconciliation table below, adjusted net income for the first quarter was $62.1 million, or $0.55 per diluted share.