FHRX First Horizon Pharmaceutical (MM)

First Horizon Pharmaceutical Corporation (NASDAQ:FHRX) today announced that the Company has increased its adjusted diluted earnings per share (a non-GAAP measure) guidance by $0.10 to $1.27 - $1.32 for the full year 2006, compared to its previously announced guidance of $1.17 - $1.22. This increase in adjusted diluted EPS guidance is due to the reduction in diluted shares outstanding of 6.8 million shares to 35.8 million shares from 42.6 million shares during the second quarter of 2006. This reduction in diluted shares outstanding is derived from the successful completion and the 100% participation in the Company's offer to exchange all of its 1.75% Contingent Convertible Senior Subordinated Notes Due 2024 plus a cash exchange fee of $7.50 for an equal principal amount of its 1.75% Contingent Convertible Senior Subordinated Notes Due 2024. The exchange offer expired at 5:00 p.m. EDT, on May 2, 2006. This EPS guidance is based on the Company's closing common stock price of $22.00 on May 2, 2006 and assumes no additional shares utilizing the net share settlement feature. For the full year 2006 EPS calculation the weighted average diluted shares outstanding is 38.1 million. The reduction in shares outstanding becomes effective on May 3, 2006. About First Horizon Pharmaceutical Corporation First Horizon is a specialty pharmaceutical company that markets, develops and sells brand name prescription products for the primary service of cardiology and women's health. First Horizon has a portfolio that includes 15 branded products, of which eight are actively promoted to high prescribing physicians through its recently expanded nationwide sales force of approximately 525 sales representatives. First Horizon's website address is www.fhrx.com, but information contained therein is not part of this press release. -0- *T Reconciliation of Projected Adjusted Diluted Earnings per Share (a) (Unaudited) For the Year Ended December 31, 2006 ----------- 2006 Projected diluted earnings per share, as presented $1.27-1.32 Less: Stock-based compensation expense (0.13) ----------- 2006 Projected adjusted diluted earnings per share (GAAP) $1.14-1.19 =========== (a) The Company believes that projected diluted earnings per share before stock-based compensation expense is a meaningful non-GAAP financial measure for providing comparability to 2005 reported diluted earnings per share. Diluted earnings per share before stock-based compensation expense, as defined and presented by the Company, may not be comparable to similar measures reported by other companies. *T