OSI Pharmaceuticals Announces Consolidation of U.S. Operations

- Consolidation of Four Sites into a Single Campus Will Deliver Significant
Operating Synergies Starting in 2010 and Allows for All Foreseeable Expansion
Needs -
MELVILLE, N.Y.--(Business Wire)--
OSI Pharmaceuticals, Inc. (NASDAQ: OSIP) announced today plans to consolidate
its U.S. operations onto a single campus located in Ardsley, a community located
in the town of Greenburgh in Westchester County, New York. The Company has
signed an agreement to purchase a 43 acre site, which consists of ~400,000
sq.ft. of existing office and laboratory space for $27 million. Additional
capital and one time expenses will be incurred, mainly during the latter part of
2009 and first half of 2010.

The Company announced that it expects to realize in excess of $15 million in
yearly operating synergies upon completion of the consolidation, which is
anticipated by the fourth quarter of 2010.

"The past ten years has been a remarkable journey as the Company has
successfully brought its first oncology product, Tarceva®, to market and taken
the business profitable," stated Colin Goddard, Ph.D., Chief Executive Officer
of OSI Pharmaceuticals. "None-the-less, we have recognized that we will only
truly capture the full strategic value of our oncology franchise if we simplify
our business by bringing together all the elements of our U.S. operations onto a
single site. After an extensive and highly competitive process involving the
exploration of options in multiple different states, we have identified a campus
that will represent a first-rate facility for our company and provide for all
foreseeable expansion needs over the next several years. We are delighted that
OSI will remain in New York State and we look forward to being an integral part
of a growing cluster of quality biotech companies in Westchester County."

The Company anticipates initiating the consolidation of approximately 350
current U.S. employees from its facilities in Melville and Farmingdale, NY,
Boulder, CO, and Cedar Knolls, NJ in the second half of this year. OSI will
receive incentives from New York State in connection with this move, with
further potential incentives as the business continues to grow over the next
five years. OSI will continue to operate its diabetes/obesity franchise in
Oxford, England.

About OSI Pharmaceuticals

OSI Pharmaceuticals is committed to "shaping medicine and changing lives" by
discovering, developing and commercializing high-quality, novel and
differentiated targeted medicines designed to extend life and improve the
quality of life for patients with cancer and diabetes/obesity. For additional
information about OSI, please visit http://www.osip.com.

This news release contains forward-looking statements. These statements are
subject to known and unknown risks and uncertainties that may cause actual
future experience and results to differ materially from the statements
made.Factors that might cause such a difference include, among others, OSI's and
its collaborators' abilities to effectively market and sell Tarceva and to
expand the approved indications for Tarceva, OSI`s ability to protect its
intellectual property rights, safety concerns regarding Tarceva,competition to
Tarceva and OSI`s drug candidatesfrom other biotechnology andpharmaceutical
companies, the completion of clinical trials, the effects of FDA and other
governmental regulation, including pricing controls,OSI's ability to
successfully develop and commercialize drug candidates, and other factors
described in OSI Pharmaceuticals' filings with the Securities and Exchange
Commission.

OSI Pharmaceuticals, Inc.
Investors/Media:
Kathy Galante, 631-962-2043
Senior Director
or
Media:
Kim Wittig, 631-962-2135
Director
or
Burns McClellan, Inc. (representing OSI)
Media:
Kathy Nugent, 212-213-0006

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