Watson Pharmaceuticals, Inc.

Watson Pharmaceuticals, Inc. (NYSE: WPI), headquartered in Corona, California, is a leading specialty pharmaceuticals company that develops, manufactures, markets, and distributes brand and generic pharmaceutical products. With a track record of service excellence, Watson has earned a solid reputation as a reliable and low-cost provider of quality pharmaceutical products.

With a portfolio of more than 150 generic pharmaceutical products, Watson's U.S. Generics division is one of the largestsuppliers of generic pharmaceuticals in the United States. More than half of Watson's generic products hold either leading or secondary market share positions, making Watson one of the top 5 pharmaceutical companies in the United States based on prescriptions dispensed.

Paul Bisaro, president and chief executive officer, Watson Pharmaceuticals, Inc.

Within its Brand division, Watson promotes more than 25 pharmaceutical product families with a primary focus in Urology and Nephrology. A promising pipeline of specialty urology products, together with a number of strategic alliances, positions Watson's Brand division for steady, highly profitable growth in the future.

Watson also has a distribution division, Anda, offering over 7,000 products from over 100 manufacturers to over 50,000 locations nationwide. Anda is well respected among independent retail pharmacies, chain drug stores, physicians, and alternate care providers.

Founded in 1984, Watson has approximately 5,600 employees, 9 manufacturing facilities, and 2007 revenue of $2.5 billion.

Watson remains focused on quality, integrity, teamwork, customer service, and leadership in its continued quest to improve the health and quality of people's lives.

Corporate Management

Allen Chao, Ph.D. ? Chairman of the Board of Directors

Paul Bisaro ? President and Chief Executive Officer

Thomas Russillo ? EVP and President, U.S. Generics Division

Edward Heimers, Jr. ? EVP and President, Brand Division

Albert Paonessa, III ? EVP and Chief Operating Officer,

  Anda Distribution Division

Mark Durand ? Sr. VP and Chief Financial Officer

Major Marketed Products

Watson markets over 150 genericproducts in a wide variety of therapeuticclasses. Major generic productsinclude:

• Nicotine Polacrilex Gum, USP
• Quasense?, an extended regimen oral contraceptive
• Hydrocodone and Acetaminophen ? in the pain management category
• Oxycodone and Acetaminophen ? in the pain management category
• Fentanyl Transdermal Patch ? in the pain management category

Watson markets brand products in the areas of Urology and Nephrology. Key products include:

• Ferrlecit?, intravenous iron in the treatment of iron deficiency anemia
• Trelstar?, an LHRH agonist for the treatment of advanced prostate cancer
• Androderm?, a transdermal patch for testosterone replacement therapy in men
• Oxytrol?, a transdermal patch for the treatment of overactive bladder

Watson's Brand division also promotes AndroGel?, a topical testosterone gel and ProQuin? XR, an antibiotic.

Product Pipeline

Watson's Generic division has over 60 Abbreviated New Drug Applications (ANDAs) pending with the FDA. Watson's Brand Division has several products under development. These products include:

• Silodosin ? under development for the treatment of benign prostatic hyperplasia
• Topical oxybutynin gel ? under development for the treatment of overactive bladder
• Trelstar? 6 month ? a 6 month formulation of Trelstar? under development for the treatment of advanced prostate cancer
• Uracyst? ? under development for the treatment of interstitial cystitis

Some New Products Launched in 2007

• Zenchent (EE/norethindrone) (1/30/07)
• Bupropion HCl XL 300mg tablets (6/13/07)
• Fentanyl transdermal system 25, 50, 75, 100 mcg C-II (8/21/07)
• Albuterol sulfate inhalation solution (9/25/07)
• Tilia Fe (NEA/EE and Fe) tablets (10/29/07)
• Oxycodone HCl/Ibuprofen tablets 5/400mg C-II (11/26/07)

Recent Launches in 2008

• Balsalzide disodium 750mg capsules (1/2/08)
• Ipratropium B albuterol 0.5/3mg inhalation solution 30X3mL (1/2/08)
• Ipratropium B albuterol 0.5/3mg inhalation solution 60X3mL (1/2/08)
• Clarithromycin ER 500mg tablets (1/3/08)
• Alendronate sodium 35mg tablets (2/6/08)
• Alendronate sodium 70mg tablets (2/6/08)

Responding to Major Challenges and Opportunities Facing Watson and the Industry

Contact Info:

Watson Pharmaceuticals, Inc.

Corporate Headquarters:

311 Bonnie Circle, Corona, CA 92880

Ph: 951-493-5300 Fax: 951-493-5817

www.watson.com

Patty Eisenhaur ? Director, Investor Relations

Watson is executing on a multiyear strategic plan designed to ensure the company's long-term growth and to support the company's vision of delivering cost-effective pharmaceuticals that improve the health and quality of people's lives worldwide. The company has made significant progress over the last year on a number of strategic initiatives designed toreduce its overall cost structure, enhance operating efficiencies, and expand its pipeline. These initiatives have significantly strengthened the company's base business and leave it poised for significant growth.