ViroPharma Improves Financial Position Through Repurchase of $45 Million Principal...

ViroPharma Improves Financial Position Through Repurchase of $45 Million
Principal Amount of Senior Convertible Notes

EXTON, Pa., March 24 /PRNewswire/ -- ViroPharma Incorporated (Nasdaq: VPHM)
announced it has repurchased, in a privately negotiated transaction, $45
million principal amount or 18 percent of the company's Senior Convertible
Notes due March 2017 for total consideration of approximately $21.2 million.
Following these repurchases, senior convertible notes representing $205
million of principal debt are outstanding.

As a result of the convertible note repurchase, ViroPharma expects that its
fully diluted shares outstanding will be decreased by approximately 2.38
million shares. The company is finalizing the accounting for the resulting
net pre-tax gain in accordance with the company's adoption of FASB Staff
Position (FSP) No. APB 14-1, Accounting for Convertible Debt Instruments That
May Be Settled in Cash upon Conversion (Including Partial Cash Settlement).
This gain will be reported in the financial statements for the first quarter
of 2009. ViroPharma anticipates that the taxable gain arising from the
repurchase will qualify for deferral until 2014 in accordance with the
provisions of the American Recovery and Reinvestment Act of 2009. The senior
convertible note repurchase will reduce the company's interest expense for the
balance of fiscal 2009 by approximately $1.6 million. Additionally, the
corresponding hedge and warrant (call spread) entered into by ViroPharma in
March 2007 was unwound for the bonds repurchased. ViroPharma anticipates that
the annual cash savings as a result of this repurchase will be approximately
$0.9 million per year.

"A dislocation in the capital markets has allowed us to repurchase some of our
outstanding debt at an attractive discount to the principal amount of the
notes and reduce our fully diluted shares outstanding," commented Charles
Rowland, ViroPharma's vice president and chief financial officer. "In
addition, this accretive transaction provides us the opportunity to increase
our net cash position, further strengthening our already strong balance sheet,
and is consistent with our goal of increasing shareholder value."

From time to time, ViroPharma may evaluate additional opportunities for
purchases of its common stock or convertible notes, including through open
market purchases or individually negotiated transactions.

About ViroPharma Incorporated
ViroPharma Incorporated is a biopharmaceutical company dedicated to the
development and commercialization of products that address serious diseases
treated by physician specialists and in hospital settings. ViroPharma
commercializes Vancocin(R) (vancomycin hydrochloride capsules, USP), approved
for oral administration for treatment of antibiotic-associated
pseudomembranous colitis caused by Clostridium difficile and enterocolitis
caused by Staphylococcus aureus, including methicillin-resistant strains, and
Cinryze(TM) (C1 inhibitor (human)) for routine prophylaxis against angioedema
attacks in adolescent and adult patients with hereditary angioedema (HAE),
also known as C1 inhibitor deficiency (for prescribing information on
ViroPharma's commercial products, please download the package inserts at
http://www.viropharma.com/Products.aspx). ViroPharma currently focuses its
drug development activities in diseases including cytomegalovirus (CMV), HAE
and C. difficile.

ViroPharma routinely posts information, including press releases, which may be
important to investors in the investor relations and media sections of our
company's web site, www.viropharma.com. The company encourages investors to
consult these sections for more information on ViroPharma and our business.

Certain statements in this press release contain forward-looking statements
that involve a number of risks and uncertainties. Forward-looking statements
provide our current expectations or forecasts of future events and include our
estimates of the tax and accounting treatment of the repurchase of our senior
convertible notes or purchase shares of our common stock or convertible notes.
Factors that could affect our financial position generally, and therefore
impact the timing and magnitude of any possible future repurchase of notes or
common stock, include among other things: the timeframe in which the FDA make
a decision regarding either our citizen petition for Vancocin or the approval
of generic versions of Vancocin; our ability to execute a successful launch of
Cinryze; our ability to conduct future studies with maribavir; and the timing
and potential outcomes of the review of our regulatory submission related to
an acute treatment indication for Cinryze; the timing and nature of potential
business development activities related to our efforts to expand our current
portfolio through in-licensing or other means of acquiring products in
clinical development or marketed products; and approval of products which are
currently marketed for other indications by other companies or new
pharmaceuticals and technological advances to treat the conditions addressed
by Vancocin or Cinryze. Currently our market capitalization is less than our
book value. As a result, we may be required to take a significant non-cash
goodwill impairment charge and may be required to write off goodwill or other
intangible assets in the future. If we are required to write off goodwill or
other intangible assets, our financial position or results of operations could
be adversely affected. These factors, and other factors, including, but not
limited to those described in the our annual report on Form 10-K filed with
the Securities and Exchange Commission in February 2009, could cause future
results to differ materially from the expectations expressed in this press
release. The forward-looking statements contained in this press release may
become outdated over time. ViroPharma does not assume any responsibility for
updating any forward-looking statements.

SOURCE ViroPharma Incorporated

Charles A. Rowland, Jr., Vice President, Chief Financial Officer,
+1-610-321-6223, William C. Roberts, Vice President, Corporate Communications,
+1-610-321-6288, Media Contact, Kristina M. Broadbelt, Assistant Director, PR
& Advocacy, +1-610-321-2358, all of ViroPharma Incorporated