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Exhibit 99.2


FOR IMMEDIATE RELEASE Contact: David J. Coles
(310) 952-1579

LEINER HEALTH PRODUCTS ANNOUNCES FOURTH QUARTER AND YEAR-END RESULTS

Operational Restructuring Showing Positive Results

Waiver Expires; Company Negotiating Forbearance Agreement with Bank Lenders

CARSON, CA, June 29, 2001 Leiner Health Products Inc. today reported financial and operating results for its fourth quarter and fiscal year ended March 31, 2001.

Net sales for the fourth quarter were $157.5 million compared to $214.2 million during the same period a year ago. The company had a net loss before taxes for the quarter of $98.9 million compared to a net gain before taxes of $15.4 million for the same period in 2000. The fourth quarter loss reflects charges of $77.1 million in relation to an operational restructuring more fully discussed below and in the company's 10-K, which was filed with the SEC today.

For the fiscal year ended March 31, 2001, net sales were $612.1 million compared to $662.3 million during fiscal year 2000. The company had a net loss before taxes for fiscal 2001 of $120.4 million compared to a net gain before taxes of $8.0 million for the fiscal year 2000. The fiscal 2001 loss reflects the charge relating to the operational restructuring noted above.

Operational Restructuring Yields Positive Results

The company said that it is continuing to execute its operational restructuring, for which it recognized restructuring and other related charges of $77.1 million to close three OTC drug manufacturing facilities, reduce approximately 2,600 of it's 6,000 SKUs and eliminate approximately 500 positions.

Robert Kaminski, Chief Executive Officer, said, "Our previously announced plant closings, headcount reductions and product line streamlining have allowed us to simplify our operations and improve our performance in both the commercial and financial segments of the business. Furthermore, with the first quarter of fiscal 2002 nearly complete, we are seeing improvement in our business, both from a revenue and a gross margin perspective. We believe that, based upon our strong order book position and the effect of our restructuring program, these trends will continue in the second quarter." Kaminski continued, "I cannot overstate my appreciation of our customers' and suppliers' support durin
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