Mylan Laboratories to Acquire Generics Business of Merck KGaA (y 2)

The combined company will have a dramatically accelerated growth profile with long-term compounded net income growth expected to exceed 30% per annum and long-term revenue growth in excess of 10%. This growth will be driven by new opportunities created by the formation of a truly global platform, through promising growth at Merck Generics, and by expected de-leveraging of the balance sheet.

The transaction remains subject to regulatory review in relevant jurisdictions and certain other customary closing conditions, and is expected to close in the second half of 2007.

Mr. Coury concluded: "We have been very impressed by the successful business built by the management team and employees at Merck Generics and by their dedication to excellence across all areas of their operations. We look forward to working together to create greater opportunities for all employees of Mylan and Merck Generics, as well as to uniting two cultures built on excellence in regulatory, R&D, manufacturing and customer service in one of the world's largest global generic pharmaceutical companies."

Merrill Lynch acted as exclusive financial advisor and provided a fairness opinion to Mylan in this transaction. The external legal counsel for Mylan was Cravath, Swaine & Moore LLP.

Conference Call and Webcast Information

Mylan will host a conference call and webcast for investors and analysts on Monday, May 14, 2007 at 8:00 a.m. EDT / 2:00 p.m. CET to discuss the transaction. To participate in the conference call, please +1-800-657-1263 (U.S.) or +1-973-633-8200 (international) fifteen minutes before start time. The pass code for the live call is 8805204. A telephonic replay of the call Will be available by dialing +1-877-519-4471 (U.S.) or +1-973-341-3080 (international). The replay participant code is 8805204.

Live audio of the conference call and slide presentation will be simultaneously broadcast over the Internet. The webcast of the conference can be found on Mylan's Web site, www.mylan.com. The webcast will be archived and available for replay after the event.

About Mylan

Mylan Laboratories Inc. is a leading pharmaceutical company with three principle subsidiaries, Mylan Pharmaceuticals Inc., Mylan Technologies Inc. and UDL Laboratories Inc., and a controlling interest in Matrix Laboratories Limited, India. Mylan develops, licenses, manufactures, markets and distributes an extensive line of generic and proprietary products. For more information about Mylan, visit http://www.mylan.com.

About Merck Generics

Merck Generics offers affordable standard therapies in nearly all major therapeutic areas through high-quality drugs containing active ingredients that are no longer patent protected. The range of products includes a wide assortment of more than 400 different substances plus special dosage forms and delivery systems with high patient benefit.

Forward Looking Statements

This press release contains statements that constitute "forward-looking statements", including with regard to the expected future business and financial performance of Mylan Laboratories Inc. ("Mylan" or the "Company") resulting from and following the planned acquisition of the generics business of Merck KGaA, such as the generation of cash flows; anticipated synergies and efficiencies; anticipated cost savings; the Company's ability to reduce debt; and expectations for long-term growth. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Because such statements inherently involve risks and uncertainties, actual future results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to: factors relating to satisfaction of the conditions to the acquisition, including regulatory approvals; challenges and costs relating to integration of the two businesses; the effect of any changes in customer and supplier relationships and customer purchasing patterns; the impact and effects of legal or regulatory proceedings, actions or changes; general market perception of the transaction; the effects of vigorous competition on commercial acceptance of the companies' products and their pricing; the potential costs and product introduction delays that may result from use of legal, regulatory and legislative strategies by Mylan's competitors; uncertainties regarding patent, intellectual and other proprietary property protections; exposure to lawsuits and contingencies associated with both companies' businesses; the ability to attract and retain key personnel; prevailing market conditions; changes in economic and financial conditions of the Company's business; uncertainties and matters beyond the control of management; and the other risks detailed in the periodic filings filed by the Company with the Securities and Exchange Commission. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release.

Web site: http://www.mylan.com

Patrick Fitzgerald, Mylan Laboratories, +1-724-514-1811, or Patrick.Fitzgerald@mylanlabs.com; or Nina Devlin, or Cindy Leggett-Flynn, +1-212-333-3810, mylan@brunswickgroup.com, or Alexa von Wietzlow +44-207-404-5959, avonwietzlow@brunswickgroup.com, all of Brunswick Group