A Settlement for $138 million in cash and certain corporate governance changes has been proposed in the pending securities class action styled In re Biovail Corporation Securities Litigation, Master File No. 03-CV-8917 (GEL), in the United States District Court for the Southern District of New York (“U.S. Action”).

The Class consists of: all persons and entities who purchased the common stock of Biovail on the New York Stock Exchange or other U.S. stock exchanges or the Toronto Stock Exchange or other Canadian stock exchanges during the period from February 7, 2003 through and including March 2, 2004.

The key dates for the Settlement are:

Requests for Exclusion from the Class: Must be mailed postmarked no later than July 8, 2008.

Objections to the proposed Settlement: Must be filed with the Court and served on counsel no later than July 8, 2008.

Proofs of Claim to participate in the proceeds of the Settlement: Must be mailed postmarked no later than September 8, 2008.

The Settlement Fairness Hearing to determine whether the proposed Settlement should be approved as fair, reasonable, and adequate: Is scheduled for 11:00 a.m. on Friday, August 8, 2008.

A settlement has also been proposed in a separate securities class action styled Canadian Commercial Workers Industry Pension Plan against Biovail Corporation, Eugene N. Melnyk, Brian H. Crombie, John R. Miszuk and Kenneth G. Howling, Court File No. 48172 CP, pending in the Ontario Superior Court of Justice (“Canadian Action”).

The decision of the Canadian Court with respect to approval of the settlement of the Canadian Action does not affect the settlement of the U.S. Action or the determinations of the Court in the U.S. Action. Settlement of the U.S. Action is not conditioned on the decisions of the Canadian Court or approval of the settlement of the Canadian Action.

There will be no distribution of funds through the Canadian Action. The only Proof of Claim form that will be distributed is the claim form in the U.S. Action.