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EXHIBIT 99
N E W S R E L E A S E
[KING LOGO]
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FOR IMMEDIATE RELEASE
SHAREHOLDERS APPROVE MERGER OF
KING PHARMACEUTICALS AND JONES PHARMA INCORPORATED
BRISTOL, TN and ST. LOUIS, MO, August 31, 2000 - King Pharmaceuticals, Inc.
(NYSE:KG) and Jones Pharma Incorporated (NASDAQ:JMED) announced that both the
shareholders of King and the shareholders of Jones approved today the previously
announced proposed merger of the two companies in a stock-for-stock transaction.
The transaction is expected to be accounted for as a tax-free pooling of
interests. The companies expect to complete the merger today by the close of
business.
Under the terms of the agreement, Jones shareholders will receive 1.125 shares
of King common stock in exchange for each share of Jones common stock.
John M. Gregory, Chairman and Chief Executive Officer of King, stated, "King is
pleased to report the shareholders' approval today of our merger with Jones, and
we are excited about the potential opportunities created by this excellent
business combination. The merger will provide King with a more diversified
portfolio of branded pharmaceutical products with the addition of Jones'
Levoxyl(R), Thrombin-JMI(R), and Cytomel(R) and a combined sales force of over
400 representatives providing potential synergies in the expanded marketing of
our products." Mr. Gregory added, "The significantly greater market
capitalization and the potential substantial reduction in the Company's
outstanding debt resulting from the merger will better position King for the
continued successful execution of our growth strategies."
Dennis M. Jones, Founder and Chairman of Jones, stated, "After an exciting and
fulfilling nineteen years since I began this journey, I would like to send a
hearty thank you to all my associates at Jones Pharma for their years of
dedication and efforts in building our fine Company. I further want to
congratulate Mr. John Gregory for what I believe is great foresight in bringing
these two great companies together. Under his dynamic leadership and vision,
together with two great groups of employees, I believe King will become a very
significant factor within this great American industry."
King, headquartered in Bristol, Tennessee, is a vertically integrated
pharmaceutical company that manufactures, markets, and sells primarily branded
prescription pharmaceutical products. King seeks to capitalize on niche
opportunities in the pharmaceutical industry created by cost containment
initiatives and consolidation among large global pharmaceutical companies.
King's strategy is to acquire branded pharmaceutical products and to increase
their sales by focused promotion and marketing and through product life cycle
management.
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Jones Pharma Incorporated, founded in 1981, is an emerging specialty
pharmaceutical company with a national sales force of 123 dedicated sales
representatives who promote Jones' products throughout the United States. Jones'
strategy has been to build a portfolio of growing products through the
acquisition of under-promoted, promotion sensitive FDA approved products from
other pharmaceutical companies. About half of Jones' sales are generated by the
thyroid-disorder drugs Levoxyl(R), Tapazole(R), Triostat(R), and Cytomel(R).
Jones' other products include Thrombin-JMI(R) for controlling blood loss during
surgery; Brevital Sodium(R), an anesthetic; and veterinary pharmaceuticals,
Soloxine(R), Tussigon(R), and Pancrezyme(R). In early 2000, Jones' 574% ten-year
sales growth and 1,633% ten-year earnings growth were recognized by the Wall
Street Journal's Fifth Annual Shareholder Scoreboard. Jones was ranked number
one in ten-year shareholder return when compared to its peers within the
pharmaceutical sector. When compared to America's top 1,000 companies in 76
industries, Jones Pharma was ranked 23rd in five-year shareholder return. In
addition, Jones was named by Forbes in November 1999 as one of the "200 Best
Small Companies in America" for seven of the last ten years.
This release may contain forward-looking statements which reflect management's
current views of future events and operations. These forward-looking statements
involve certain significant risks and uncertainties, and actual results may
differ materially from the forward-looking statements. Some important factors
which may cause results to differ include: the ability of King and Jones to
consummate the merger described above, management of King's growth and
integration of its acquisitions, specifically including, but not limited to, the
merger described above, the ability of King to realize potential synergies from
the merger, significant leverage and debt service requirements of King,
dependence on King's ability to continue to acquire branded products, dependence
on sales of King's products, the high cost and uncertainty of research, clinical
trials, and other development activities involving pharmaceutical products, and
the unpredictability of the duration and results of the U.S. Food and Drug
Administration's review of New Drug Applications and other filings and/or the
review of other regulatory agencies worldwide. Other important factors which may
cause results to differ materially from the forward-looking statements are
discussed in various sections of King's and Jones' latest Form 10-K and other
filings with the Securities and Exchange Commission. King does not undertake to
publicly update or revise any of its forward-looking statements even if
experience or future changes show that the indicated results or events will not
be realized.
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Contacts:
KING: Kyle P. Macione, Executive Vice President, Corporate Affairs
423-989-8077
JONES: Michael T. Bramblett, Executive Vice President
314-576-6100
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N E W S R E L E A S E
[KING LOGO]
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FOR IMMEDIATE RELEASE
KING PHARMACEUTICALS COMPLETES
PREVIOUSLY ANNOUNCED MERGER WITH JONES PHARMA
BRISTOL, TENNESSEE, August 31, 2000 - King Pharmaceuticals, Inc. (NYSE:KG)
announced today that it has completed the previously announced merger with Jones
Pharma Incorporated (NASDAQ:JMED) in a stock-for-stock transaction. Under the
terms of the agreement, Jones shareholders will receive 1.125 shares of King
common stock in exchange for each share of Jones common stock.
King, headquartered in Bristol, Tennessee, is a vertically integrated
pharmaceutical company that manufactures, markets, and sells primarily branded
prescription pharmaceutical products. King seeks to capitalize on niche
opportunities in the pharmaceutical industry created by cost containment
initiatives and consolidation among large global pharmaceutical companies.
King's strategy is to acquire branded pharmaceutical products and to increase
their sales by focused promotion and marketing and through product life cycle
management.
# # #
Contact: Kyle P. Macione, Executive Vice President,
Corporate Affairs- 423-989-8077
