For Immediate Release

Allergan, Inc. Announces Agreement To Acquire Oculex Pharmaceuticals For $230 Million

Oct. 14, 2003

IRVINE, Calif. -- Allergan, Inc. (NYSE:AGN - News) announced today that it has entered into a definitive merger agreement to acquire Oculex Pharmaceuticals, Inc., subject to certain conditions, including Federal Trade Commission and Oculex shareholder approval. Officers, directors, affiliated investment funds and certain other significant shareholders of Oculex have executed shareholder support agreements, agreeing to vote in favor of the acquisition approved by the Boards of Directors of both Allergan and Oculex. Allergan will pay approximately $230 million for the Oculex business in an all cash transaction. It is estimated that as much as 75 percent to 90 percent of the purchase price will be expensed by Allergan as in-process research and development in the fourth quarter of 2003, with the balance being allocated to other tangible net assets, core technology and goodwill. An independent valuation is being performed by a major accounting firm to determine the final allocation of the purchase price. Allergan expects the acquisition to be completed by the end of November 2003.

Oculex is a privately held company developing innovative, therapeutic products for the treatment of major, sight-threatening diseases of the eye. Allergan and Oculex entered into a license and research collaboration in May 2001 to discover, develop and commercialize compounds for ophthalmic use, based on Oculex's proprietary, biodegradable drug delivery technology. In January 2002, Allergan and EntreMed, Inc. entered into a strategic alliance that included the assessment of the Oculex drug delivery technology. Allergan believes that biodegradable drug delivery technology offers a superior method to target drugs to the back of the eye for disorders such as age-related macular degeneration, diabetic retinopathy and macular edema. Allergan currently believes that the annual market for back of the eye pharmaceuticals could eventually exceed one billion dollars.

"This is a very exciting opportunity for Allergan," said Dr. Lester J. Kaplan, Allergan's Corporate Vice President and President, Research and Development and Global BOTOX®. "This acquisition is consistent with Allergan's goal to find innovative treatments for the currently unmet medical needs in the posterior segment of the eye. This transaction provides us with access to a late stage retinal disease development program with strong Phase 2 data. Additionally, Oculex's biodegradable drug delivery technology will provide Allergan with a versatile platform for sustained local delivery of compounds to the eye, whether on our own or in collaboration with others."

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