Valeant declares one-time special dividend

Nov 4 2010

Valeant Pharmaceuticals International, Inc. (NYSE: VRX) (TSX: VRX) today announced that the Company's Board of Directors (the "Board") has declared a one-time special dividend of US$1.00 per common share (the "Special Dividend") that shareholders of record as of the close of business on November 15, 2010 (the "Record Date") will be entitled to receive on December 22, 2010.  The Board declared the Special Dividend in connection with the consummation, on September 28, 2010, of the previously announced merger of Valeant Pharmaceuticals International and Biovail Corporation.  After payment of the Special Dividend, the Company does not expect to pay dividends in the future.

In addition, the Board has approved the establishment of a Special Dividend Reinvestment Plan (the "Plan"), which will enable eligible shareholders to elect to reinvest the Special Dividend (net of any applicable withholding tax) in additional common shares of the Company ( the "Common Shares").  Only Canadian and United States residents who are shareholders of record as of the Record Date will be eligible to participate in the Plan.

The Plan is being created solely for use in connection with the Special Dividend and will only be used for this one-time purpose.  The Plan will automatically terminate on December 22, 2010, immediately following payment of the Special Dividend.  

Before enrolling, eligible shareholders are advised to read the complete text of the Plan and to consult their financial advisers regarding their unique investment profile and tax situation.

CIBC Mellon Trust Company (the "Agent") has been appointed as the agent to administer the Plan.  Shareholders of record as of the Record Date will receive by mail the Plan and enrollment form, as well as the registration statement on Form S-3 (the "Registration Statement") (including prospectus) for the offering of Common Shares to which this communication relates shortly after the Record Date.  Non-registered beneficial shareholders are advised to contact their broker, investment dealer or other financial intermediary for details on how to participate in the Plan.  To participate in the Plan, eligible shareholders must return their enrollment forms to the Agent in accordance with the Plan by 5:00 p.m. (Toronto time) on December 8, 2010.