Indevus and Valera complete merger

Indevus Pharmaceuticals and Valera Pharmaceuticals have announced the completion of their previously announced merger, which became effective at 12:01 a.m., April 18, 2007.

Effective today, trading in Valera common stock has been discontinued.

The merger, which was announced on December 12, 2006, was approved by the stockholders of both companies at meetings held on April 17, 2007. In addition, Indevus stockholders approved each of the other proposals presented at its meeting.

"We are very pleased with the strategic acquisition of Valera and believe this transaction will be a strong driver of growth for us in the coming years," said Glenn L. Cooper, M.D., chairman and chief executive officer of Indevus. "The completion of the merger firmly establishes Indevus as an emerging leader in the specialty areas of urology and endocrinology and fully leverages our national sales force. We are very excited about our expanded product portfolio and anticipate five new product launches within two years, including three products from Valera."

"This is an exciting day for Valera," said David S. Tierney, M.D., chief executive officer of Valera. "Becoming part of Indevus creates considerable opportunities for our shareholders, our customers and our employees."

Under the terms of the merger agreement, each holder of Valera's common stock issued and outstanding immediately prior to the effective time, other than dissenting shares, will receive 1.1337 shares of Indevus common stock for each share of Valera common stock. In addition, these Valera stockholders will receive three contingent stock rights for each of their shares of Valera common stock. The contingent stock rights will become convertible into $1.00, $1.00 and $1.50, respectively, worth of Indevus common stock upon the achievement of particular milestones with respect to three Valera product candidates in development - Supprelin-LA, ureteral stent and VP003 (Octreotide implant).

Indevus also announced that James C. Gale, formerly chairman of the board of directors of Valera, has been elected as a member of the board of directors of Indevus. Mr. Gale, who served as a Valera director since 2001, is a managing director of SMH Capital Inc., a national investment management and investment banking company, and serves as chief investment officer of the Corporate Opportunities Funds and Life Sciences Opportunities Fund, affiliates of SMH Capital.

http://www.indevus.com/ and http://www.valerapharma.com