MEDICIS REPORTS $15 MILLION NET INCOME FOR 2ND QTR FISCAL '03.

Medicis (NYSE:MRX), Scottsdale, Ariz., has announced second quarter fiscal 2003 net revenues of $59.5 million with net income of $15.3 million, or $0.55 per diluted share, compared to second quarter fiscal 2002 net revenues of $53.0 million with net income of $14.8 million, or $0.47 per diluted share, absent a special charge of $6.2 million for purchased in- process research and development associated with the Ascent Pediatrics transaction reported in the second quarter of fiscal 2002. Including the special charge of $6.2 million for purchased in-process research and development associated with the Ascent Pediatrics transaction, Medicis reported net income of $8.6 million, or $0.27 per diluted share.

Second quarter fiscal 2003 net revenue increased primarily as a result of net overall growth in sales of the company's core brands. The company's core brands represented approximately 86% of total product sales on a collective basis and increased approximately 30% in total reported prescription volume. At the end of the second quarter, the company's core brands included DYNACIN(R), LOPROX(R), LUSTRA(R), OMNICEF(R), ORAPRED(R), PLEXION(R), TRIAZ(R) and OVIDE(R). The company's gross profit margin for the second quarter of fiscal 2003 was 84.4% compared to 83.0% for the second quarter of fiscal 2002.

For the first six months of fiscal 2003, Medicis reported net revenues of $118.3 million with net income of $30.6 million, or $1.09 per diluted share, absent a $3.4 million tax-effected special charge reported in the first quarter of fiscal 2003 associated with a research and development collaboration. Including the special charge of $3.4 million, Medicis reported net income of $27.2 million, or $0.97 per diluted share for the first six months of fiscal 2003. Comparatively, in the first half of fiscal 2002, Medicis reported net revenues of $98.6 million with net income of $28.6 million, or $0.91 per diluted share, absent a special charge of $6.2 million for purchased in-process research and development associated with the Ascent Pediatrics transaction reported in the second quarter of fiscal 2002. Including the special charge of $6.2 million for purchased in-process research and development associated with the Ascent Pediatrics transaction, Medicis reported net income of $22.4 million, or $0.71 per diluted share in the first six months of fiscal 2002.

For the first six months of fiscal 2003, net revenue increased primarily as a result of net overall growth in sales of the company's core brands. In the first half of fiscal 2003, the company's core brands represented approximately 86% of total product sales and increased approximately 31% in total reported prescription volume. Cash flow from operations for the first half of fiscal 2003 was $41.8 million, compared to $38.6 million for the second half of fiscal 2002. The company's gross profit margin for the first half of fiscal 2003 was 84.4% compared to 83.1% for the first half of fiscal 2002.

Cash flow from operations for the second quarter of fiscal 2003 and for the six months ended December 31, 2002 were $7 million and $42 million, respectively, or an average quarterly cash flow from operations of approximately $21 million, as projected by the company in the first quarter of fiscal 2003. The company's first quarter fiscal 2003 cash flows from operations were atypically high primarily due to a significant accounts receivable prepayment and other favorable working capital fluctuations. The company continues to anticipate cash flows from operations for fiscal 2003 to average on a quarterly basis between $20 million and $22 million.

"We are pleased to announce another strong quarter driven by the growth of our core dermatological and pediatric brands," said Jonah Shacknai, chairman and CEO of Medicis. "As we continue to enjoy success in the dermatologic, pediatric and podiatric markets, we remain focused on expanding sales of our core brands, pursuing interesting business development opportunities and supplementing our research and development pipeline with additional therapies of benefit to our universe of physicians. Evidenced by increasing prescription volume in many of the company's core brands, our sales and marketing organization remains steadfast in their focus by promoting brands which have the potential to provide meaningful contributions to the future growth of Medicis."

Medicis previously released fiscal 2003 revenue guidance of approximately $244 million and earnings guidance of $2.26. The impact of the second quarter's results improve the fiscal 2003 guidance to approximately $245 million in revenues and $2.27 in diluted earnings per share, excluding special charges.

Medicis is a leading independent specialty pharmaceutical company in the United States focusing primarily on the treatment of dermatological, pediatric and podiatric conditions. Medicis has leading prescription products in a number of therapeutic categories, including acne, asthma, eczema, fungal infections, hyperpigmentation, photoaging, psoriasis, rosacea, seborrheic dermatitis and skin and skin-structure infections. The company's products have earned wide acceptance by both physicians and patients due to their clinical effectiveness, high quality and cosmetic elegance.

The company's products include the prescription brands DYNACIN(R) (minocycline HCl), LOPROX(R) (ciclopirox), LUSTRA(R) (hydroquinone), LUSTRA-AF(R) (hydroquinone) with sunscreen, ALUSTRA(R) (hydroquinone) with retinol, OMNICEF(R) (cefdinir), ORAPRED(R) (prednisolone sodium phosphate), PLEXION(R) Cleanser (sodium sulfacetamide/sulfur), PLEXION TS(R) (sodium sulfacetamide/sulfur), PLEXION SCT(R) (sodium sulfacetamide/sulfur), TRIAZ(R) (benzoyl peroxide), LIDEX(R) (fluocinonide), and SYNALAR(R) (fluocinolone acetonide); the over-the-counter brand ESOTERICA(R); and BUPHENYL(R) (sodium phenylbutyrate), a prescription product indicated in the treatment of Urea Cycle Disorder.

For more information, visit http://www.medicis.com or call 602/808-3854.