SECURITIES AND EXCHANGE COMMISSION

   Litigation Release No. 16383 / December 9, 1999

   SECURITIES AND EXCHANGE COMMISSION v. ICN PHARMACEUTICALS, INC., MILAN
   PANIC, NILS O. JOHANNESSON AND DAVID C. WATT, Civil Action No.
   SACV99-1016DOC(ANX) (C.D. Cal.)

   Court Refuses to Dismiss SEC's Fraud Suit Against ICN Pharmaceuticals,
   Milan Panic and Nils Johannesson

   The Securities and Exchange Commission ("Commission") announced today
   that, on December 8, 1999, the United States District Court for the
   Central District of California denied motions made by ICN
   Pharmaceuticals, Inc. ("ICN"), ICN's chief executive officer, Milan
   Panic ("Panic"), and ICN's former vice president of research and
   development, Nils O. Johannesson ("Johannesson"), asking the court to
   dismiss the Commission's complaint against them, filed August 11,
   1999. The Commission's complaint charges that the defendants failed to
   publicly disclose that, in November 1994, the FDA rejected ICN's
   application for approval of ribavirin, a new drug to treat hepatitis
   C, and that they made fraudulent and misleading public statements
   about that new drug application.

   In denying the defendants' motions, the court found the allegations in
   the complaint sufficient and noted that both Panic and Johannesson
   allegedly sold shares of ICN stock while aware that the FDA had
   rejected the new drug application, but prior to full public disclosure
   of that information. The court also let stand the Commission's request
   for an order barring Panic from acting as an officer or director of
   any public company. At the same time, the court granted the motion of
   another ICN official, David C. Watt ("Watt"), to dismiss the
   allegations against him, but permitted the Commission 20 days in which
   to amend its complaint to supplement the allegations against Watt.

   The Commission's complaint alleges that ICN received a letter from the
   FDA on November 28, 1994 informing the company that its drug
   application was "not approvable" because the data in the application
   failed to show that ribavirin was safe and effective in the treatment
   of hepatitis C. The complaint further alleges that on December 22,
   1994 the FDA sent ICN another letter which restated the FDA's earlier
   rejection of its drug application, and urged the company to withdraw
   its application. The Commission alleges that the defendants failed to
   publicly disclose the FDA's November 28, 1994 rejection of the drug
   application until ICN issued a press release on February 17, 1995.
   Prior to the issuance of that press release, ICN allegedly made
   numerous public statements which misled the public about the status of
   its ribavirin application.