Biovail Subsidiary Reaches Settlement with United States Department of Justice

Fri May 16, 2008 2:05pm EDT

* Reuters is not responsible for the content in this press release.

TORONTO--(Business Wire)--
Biovail Corporation (NYSE:BVF)(TSX:BVF) today announced that a
subsidiary of the Company has reached an agreement with the United
States Department of Justice (DOJ) in respect of criminal allegations
related to activities surrounding the 2003 commercial launch of
Cardizem(R) LA. In particular, the allegations relate to prior
management's actions in 2002 and 2003 in respect of the Cardizem(R) LA
clinical experience program, titled PLACE (Proving L.A. through
Clinical Experience). The agreement eliminates any criminal liability
for Biovail Corporation arising from this matter, and preserves the
Company's ability to conduct business in the United States. Without
this agreement, the Company was at risk of being excluded from doing
business with any health program sponsored by the U.S. federal
government. These programs represent a material proportion of
Biovail's business.

   The agreement is subject to approval at a court hearing that is
expected to take place on a date between July 31, 2008 and September
15, 2008.

   Under the terms of the agreement, the subsidiary, Biovail
Pharmaceuticals, Inc. (BPI), would plead guilty to charges relating to
making payments to induce purchasing or ordering of Cardizem(R) LA in
2003 and would pay $24.6 million to fully settle this matter. As part
of the agreement, Biovail Corporation expects to receive full releases
for all matters related to the DOJ's investigation.

   "We are pleased to resolve another legacy action. The agreement
with the DOJ represents the fourth such action to be resolved in the
past six months," said Bill Wells, Biovail's Chief Executive Officer.
"This is an important and positive result for Biovail and its
shareholders as the agreement eliminates the significant exposure to
the Corporation related to this matter and should immediately reduce
our ongoing legal expenses.

   "As we continue to work to resolve the regulatory and legal
matters that remain outstanding, our primary focus is on implementing
our new strategic focus - one we believe will enhance value for all
shareholders."

   The agreement will not affect any current or future Biovail
medicines approved for use in the United States, and will not affect
the continued marketing of Cardizem(R) LA.

   Caution Regarding Forward-Looking Information and "Safe Harbor"
Statement

   To the extent any statements made in this press release contain
information that is not historical, these statements are
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended, and may be forward-looking
information under applicable Canadian provincial securities
legislation (collectively, "forward-looking statements"). These
forward-looking statements relate to, among other things, our
objectives, goals, targets, strategies, intentions, plans, beliefs,
estimates and outlook, including, without limitation, the anticipated
impact of this agreement and the anticipated impact of the Company's
new strategic focus, and can generally be identified by the use of
words such as "believe", "anticipate", "expect", "intend", "plan",
"will", "may", "should", "could" and other similar expressions. In
addition, any statements that refer to expectations, projections or
other characterizations of future events or circumstances are forward
looking statements.

   Although Biovail believes that the expectations reflected in such
forward-looking statements are reasonable, such statements involve
risks and uncertainties, and undue reliance should not be placed on
such statements. Certain material factors or assumptions are applied
in making forward-looking statements and actual results may differ
materially from those expressed or implied in such statements.
Important factors that could cause actual results to differ materially
from these expectations include, among other things: the procedure
involved in and the uncertain outcome of legal and regulatory
proceedings, the outcome of the court hearing regarding approval of
this agreement, the anticipated proxy contest in connection with the
election of the board of directors at our upcoming shareholders
meeting, and other risks detailed from time to time in the Company's
filings with the U.S. Securities and Exchange Commission and the
Ontario Securities Commission, as well as the Company's ability to
anticipate and manage the risks associated with the foregoing.
Additional information about these factors and about the material
factors or assumptions underlying such forward-looking statements may
be found under the heading "Risk Factors" contained in Item 3(D) of
Biovail's most recent Annual Report on Form 20-F.

   Biovail cautions that the foregoing list of important factors that
may affect future results is not exhaustive. When relying on our
forward-looking statements to make decisions with respect to the
Company, investors and others should carefully consider the foregoing
factors and other uncertainties and potential events. We undertake no
obligation to update or revise any forward-looking statement.

   About Biovail Corporation

   Biovail Corporation is a specialty pharmaceutical company, engaged
in the formulation, clinical testing, registration, manufacture, and
commercialization of pharmaceutical products utilizing advanced
drug-delivery technologies. For more information about Biovail, visit
the Company's Web site at www.biovail.com.

   For further information, please contact Nelson F. Isabel at
905-286-3000 or send inquiries to ir@biovail.com.

Biovail Corporation
Nelson F. Isabel, (905) 286-3000
Vice-President, Investor Relations
and Corporate Communications

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