PHIBRO ANIMAL HEALTH CORPORATION AGREES TO ACQUIRE ABIC ANIMAL HEALTH BUSINESS

RIDGEFIELD PARK, New Jersey, 16 October 2008 - Phibro Animal Health Corporation ('PAHC' or the 'Company') announced today it has agreed to acquire the Israeli based veterinary products business unit of Teva Pharmaceutical Industries Ltd. ('Teva'). 

The business to be acquired includes Abic Biological Laboratories Teva Ltd. (Israel), Abic Veterinary Products Ltd. (Israel) and Assia Pharmaceuticals Ltd. (Kenya) (together 'Abic'). Abic is a manufacturer and marketer of over 60 animal health products, including vaccines, pharmaceuticals, antibiotics, parasiticides, disinfectants and antiseptics for the Israeli and international markets.

The purchase price for the business is approximately US $47 million and will be financed through a combination of new and existing credit facilities. The amount payable at closing is subject to adjustment based on working capital and indebtedness levels.  

The book value of Abic's net assets as of 31 December 2007 was approximately US $35 million, excluding inter-company balances.  Abic was profitable in its last fiscal year and currently operates one manufacturing facility in Israel with approximately 90 employees.  The Company expects the transaction will not have a significant effect on net income in the first year of acquisition. 

The transaction is subject to certain conditions, including Israeli antitrust approvals and other closing conditions, and is expected to close in the first quarter of 2009.

Jack Bendheim, Chairman and President of the Company, commented: 'Abic's expertise in vaccines complements our existing businesses and allows us to expand and enhance our value-added offerings to our customers in many of our markets. This is an important step forward in our vision to become a global leader in animal health and nutrition.'

ABOUT THE COMPANY 

PAHC is a diversified global manufacturer and marketer of a broad range of animal health and nutrition products to the poultry, swine and cattle markets. PAHC is also a manufacturer and marketer of performance products for the ethanol, wood preservation and personal care industries. For more information, please visit www.pahc.com.

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