EXTENDING OUR REACH AROUND THE WORLD

Opportunites come from expansion.

In 2007, we added 1,100 new employees, approximately 60 percent of whom joined our sales force or Research and Development (R&D) organization. Allergan now comprises approximately 7,900 employees who, inspired by a shared vision and united by common values, are accomplishing great things. They are driving scientific innovation. They are further positioning Allergan for leadership in Europe, Latin America, Asia Pacific and Canada, as well as in the United States. Thanks to their efforts, our product portfolios are stronger than ever. And, through our strategic collaborations, we are joining efforts with many other industry partners who are enriching our specialties and bolstering our core competencies.

Europe, Africa, Middle East

In 2007, we more than doubled our ophthalmology sales force in major European markets, as well as Belgium, the Netherlands, Sweden, Portugal, Switzerland and Austria. We are also expanding our presence in the important developing markets of Russia and Turkey. Worldwide launches of GANFORT™ and additional launches of COMBIGAN™ and OPTIVE™ have helped make Allergan the fastest-growing ophthalmic company in Europe.⁽¹⁾

Latin America

In 2007, Allergan opened a new manufacturing plant in Costa Rica to supply breast implant and obesity intervention devices to patients worldwide. We also enhanced our growth in this region with a strategic buy-out of competitive distributors and the expansion of our sales force, both in number and geography, to finalize the segmentation of BOTOX^® into BOTOX^® Cosmetic and BOTOX^® for therapeutic use across the region. In addition, we created sales forces for the Allergan Medical franchises in selected countries within the region.

Asia Pacific

Allergan opened a new R&D center in Bangalore, India — expanding our infrastructure to support R&D efforts worldwide and to facilitate the timely development of country-specific products in geographies with high-growth potential and need. Strong sales performance and the addition of people at all levels expanded our presence and competencies in Asia Pacific and drove growth in 2007.

Canada

Strong product growth continued in Canada. Our significant investment in the Allergan Medical business infrastructure contributed to Canada achieving its highest sales milestone to date with net Canadian product sales in 2007 increasing 29.9 percent, or 22.1 percent at constant currency, compared to total net product sales in 2006.

Expanding Core Specialties

Over the course of 2007, we expanded or deepened our presence in the specialty areas we serve through organic growth, sales force expansions and strategic acquisitions and collaborations. For example, as we have progressed in our clinical studies investigating the use of BOTOX^® for the treatment of overactive bladder (OAB), we have seen a significant opportunity to advance therapy and optimize patient outcomes in this area. With our acquisition of Esprit Pharma and its anticholinergic SANCTURA XR™, Allergan is investing significant resources to develop a product portfolio that addresses the full continuum of care for patients with OAB and other urologic disorders. We have also established a dedicated Urologics division that will offer urologists and patients deep expertise and continued innovation in the genitourinary therapeutic area.

We are enlarging our presence in the obesity intervention arena through our collaboration in the United States with Covidien, Ltd., an industry leader with significant experience in bariatrics. Over the next several years we will combine our expanded and experienced field sales force with the added reach of Covidien’s Surgical Devices sales team to provide extensive training, education and support for bariatric surgeons using the LAP-BAND^® System.

We also have entered into a strategic collaboration with Stiefel Laboratories, Inc. to further strengthen our presence in the medical dermatology market. The agreement brings together Allergan’s innovative tazarotene compound with Stiefel’s patent-protected technology to advance the development and commercialization of new products involving tazarotene for global dermatological use. Stiefel is also co-promoting TAZORAC^® in the United States.