Patheon 1Q

1Q Revenues: $147.2 million (-10%)

1Q Loss: $6.0 million (loss of $15.0 million 1Q08)

Comments: Operating income was $3.9 million in the quarter, compared to a loss of $4.0 million in 1Q08. Gross profit was up 19% to $30.7 million due to improved cost structure, favorable foreign exchange impact and lower inventory provisions, offsetting lower revenues. Commercial manufacturing revenues from operations decreased 12%, or $16.2 million. Revenues from North American operations were down 16% to $55.3 million due to lower customer demand from the Cincinnati and Whitby operations, partially offset by higher revenue in Puerto Rico. Revenues from European operations decreased $6.0 million or 9% compared to prior year. Pharmaceutical Development Services revenues were down 2% to $29.5 million.