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Chattem Reports Results, Increases Fiscal 2007 Outlook

March 6, 2007

Chattem said sales rose 8% in fiscal 2006 to $300.5 million. Revenue growth for the fiscal year was led by brands such as Gold Bond, Selsun and the launch Icy Hot Pro-Therapy. The increase excludes the divested pHisoderm brand. Fourth quarter sales rose less than 2% to $65.1 million compared to $63.9 million in the prior year fourth quarter.

In early January, Chattem completed the acquisition of five brands from Johnson & Johnson—ACT anti-cavity mouthwash, Cortizone anti-itch product, Unisom OTC sleep-aid, Kaopectate anti-diarrhea product and Balmex diaper-rash product for $410 million.

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