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Prepared and filed by St Ives Financial
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<p align="center"><font size="2" face="serif">UNITED STATES<br>SECURITIES AND EXCHANGE COMMISSION<br>WASHINGTON, D.C. 20549</font></p>
<p align="center"><font size="2" face="serif">_________________________</font></p>
<p align="center"><font size="2" face="serif">FORM 8-K</font></p>
<p align="center"><font size="2" face="serif">CURRENT REPORT<br>Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934</font></p>
<p align="center"><font size="2" face="serif">Date of Report (Date of earliest event reported):  August 4, 2006</font></p>
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    <td align="center" valign="bottom"><font size="2" face="serif">Savient Pharmaceuticals,
    Inc.</font></td>
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    <td align="center" valign="bottom"><font size="2" face="serif">(Exact Name
    of Registrant as Specified in Charter)</font></td>
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<td width="33%"><font size="2" face="serif">Delaware</font></td>
<td width="30%"><font size="2" face="serif">0-15313</font></td>
<td width="33%"><font size="2" face="serif">13-3033811</font></td>
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<td><font size="2" face="serif">(State or Other Juris-<br>diction of Incorporation</font></td>
<td><font size="2" face="serif">(Commission<br>File Number)</font></td>
<td><font size="2" face="serif">(IRS Employer<br>Identification No.)</font></td>
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<td width="50%"><font size="2" face="serif">One Tower Center, 14th Floor<br>East Brunswick, New Jersey</font></td>
<td width="47%"><font size="2" face="serif">08816</font></td>
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<td><font size="2" face="serif">(Address of Principal Executive Offices)</font></td>
<td><font size="2" face="serif">(Zip Code)</font></td>
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<p align="center"><font size="2" face="serif">Registrant&#146;s telephone number, including area code:  (732) 418-9300</font></p>
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<td align="center"><font size="2" face="serif">Not applicable</font></td>
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<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (<i>see</i> General Instruction A.2. below):</font></p>
<p align="left"><font size="2" face="serif"><img src="emptybox.gif" width="12" height="12"> &nbsp;&nbsp;Written communications pursuant
to Rule 425 under the Securities Act (17 CFR 230.425)</font></p>
<p align="left"><font size="2" face="serif"><img src="emptybox.gif" width="12" height="12"> &nbsp;&nbsp;Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</font></p>
<p align="left"><font size="2" face="serif"><img src="emptybox.gif" width="12" height="12"> &nbsp;&nbsp;Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</font></p>
<p align="left"><font size="2" face="serif"><img src="emptybox.gif" width="12" height="12"> &nbsp;&nbsp;Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</font></p>
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<p align="left"><font size="2" face="serif"><b>Item 1.01  Entry into a Material Definitive Agreement</b></font></p>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;See Item 2.01, which is incorporated herein by reference.</font></p>
<p align="left"><font size="2" face="serif"><b>Item 2.01.  Completion of Acquisition or Disposition of Assets</b></font></p>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On August 4, 2006, Savient Pharmaceuticals, Inc. (&#147;Savient&#148;) completed the sale of its oral liquid pharmaceuticals business (the &#147;Rosemont Business&#148;) for a purchase price of $176,000,000 in cash pursuant to a Purchase and Sale Agreement dated as of the same date (the &#147;Purchase Agreement&#148;), among Savient and Savient Pharma Holdings, Inc., a wholly owned subsidiary of Savient (the &#147;Seller&#148;), on the one hand, and INGLEBY (1705) Limited, on the other hand (the &#147;Buyer&#148;).  The transactions contemplated by the Purchase Agreement are referred to as the &#147;Rosemont Sale.&#148;  The Buyer is a company formed by Close Brothers Private Equity LLP for the purpose of
consummating the Rosemont Sale.  </font></p>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rosemont Pharmaceuticals Limited (&#147;Rosemont&#148;) is a wholly owned subsidiary of Acacia Biopharma Limited (&#147;Acacia&#148;),
    which is a wholly owned subsidiary of the Seller. Under the Purchase Agreement,
    the Buyer purchased all of the issued share capital of Acacia and the following
    assets: (i) patents and patent applications relating to tamoxifen citrate
    and simvastatin, (ii) trademarks and trademark applications relating to Rosemont
    and Soltamox&#153;, (iii) the new drug application and the investigational new drug application filed with the U.S. Food and Drug Administration for Soltamox&#153;, (iv) the Seller&#146;s rights under agreements with Cytogen relating to Soltamox and (v)
Savient&#146;s rights relating to confidentiality and non-solicitation of Rosemont&#146;s employees under confidentiality agreements with prospective buyers of the Rosemont Business.  The Buyer would assume all the liabilities and obligations of the Savient Companies pursuant to or arising out of the agreements described in items (iv) and (v).  </font></p>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the Purchase Agreement, Savient has guaranteed the performance by the Seller of all of its obligations.  </font></p>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under
    the Purchase Agreement, the Seller is obligated to indemnify the Buyer for
    any breach of representation or warranty of the Seller or Savient and any
    failure of the Seller or Savient to perform any covenant. There are no contractual
    limitations on these indemnification obligations arising out of breaches
    of covenants or breaches of the representations and warranties relating to
    corporate organization, qualification and power, capitalization, authority
    and the validity of the Seller&#146;s title to the assets being acquired by the Buyer.  The Seller&#146;s indemnification obligations relating to breaches of representations and warranties other than those listed in the preceding sentence are subject to the
following limitations:</font></p>
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<font size="2" face="serif"><u>Time Period for Claims</u>.  The representations and warranties survive until March 31, 2008, except that the tax representations would survive until the expiration of the applicable statute of limitations.</font></td>
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<font size="2" face="serif"><u>Deductible</u>.  The Seller is liable for the portion of damages from indemnification claims relating to breaches of representations and warranties only to the extent the aggregate liability exceeds $1.0 million.</font></td>
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<font size="2" face="serif"><u>Maximum Liability</u>.  The maximum aggregate liability of the Seller for all damages from indemnification claims relating to breaches of representations and warranties is $52.8 million.</font></td>
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<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The foregoing description of the Purchase Agreement is not complete and is qualified in its entirety by reference to the full text of the actual agreement, which is filed as an exhibit to this Form 8-K.</font></p>
<p align="left"><font size="2" face="serif"><b>Item 9.01.  Financial Statements and Exhibits</b></font></p>
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<font size="2" face="serif">(b)</font></td>
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<font size="2" face="serif">Pro Forma Financial Information</font></td>
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<p align="center"><font size="2" face="serif"><b>UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS FOR </b></font></p>
<p align="center"><font size="2" face="serif"><b>SAVIENT PHARMACEUTICALS, INC. </b></font></p>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The unaudited pro forma consolidated financial information shown below is based on audited and unaudited historical financial statements of Savient. The unaudited pro forma financial information presented reflects the estimated pro forma effect of the Rosemont Sale.</font></p>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
    unaudited pro forma consolidated statements are as follows:</font></p>
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<font size="2" face="serif">An unaudited pro forma consolidated balance sheet as of June 30, 2006, giving effect to the disposition as if it occurred on June 30, 2006.</font></td>
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<font size="2" face="serif">An unaudited pro forma consolidated statement of operations for the six months ended June 30, 2006, giving effect to the disposition as if it occurred on January 1, 2006.</font></td>
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<font size="2" face="serif">An unaudited pro forma consolidated statement of operations for the three months ended June 30, 2006, giving effect to the disposition as if it occurred on January 1, 2006.</font></td>
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<font size="2" face="serif">An unaudited pro forma consolidated statement of operations for the year ended December 31, 2005, giving effect to the disposition as if it occurred on January 1, 2005.</font></td>
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<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
    unaudited pro forma consolidated financial statements include specific assumptions
    and adjustments related to the Rosemont Sale. These pro forma adjustments
    have been made to illustrate the anticipated financial effect of the Rosemont
    Sale. The adjustments are based upon available information and assumptions
    that Savient believes are reasonable as of the date of this filing. However,
    actual adjustments may differ materially from the information presented.
    Some decisions regarding the use of sale proceeds have not yet been made.
    Assumptions underlying the pro forma adjustments are described in the accompanying
    notes, which should be read in conjunction with the unaudited pro forma consolidated
    financial statements. These pro forma consolidated statements of operation
    do not include the anticipated net gain on disposition of $46.7 million.
    The pro forma financial statements, including notes thereto, should be read
    in
    conjunction with the historical financial statements of Savient included
    in our Annual Report on Form 10-K for the year ended December 31, 2005, and
    the unaudited financial statements filed in our Quarterly Report on Form
10-Q as of June 30, 2006 and for the three and six months ended June 30, 2006.</font></p>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The unaudited pro forma consolidated financial information presented herein is for informational purposes only. It is not intended to represent or be indicative of the consolidated results of operations or financial position that would have been reported had the Rosemont Sale been completed as of the dates presented. The information is not representative of future results of operations or financial position.</font></p>
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<p align="center"><font size="2" face="serif"><b>Savient Pharmaceuticals, Inc.
      and Subsidiaries</b></font><br>
<font size="2" face="serif"><b>Unaudited Pro Forma Consolidated
      Balance Sheet</b></font><br>
<font size="2" face="serif"><b>(In thousands, except share
      data)</b></font><br>
<font size="2" face="serif"><b>As of June 30, 2006<br>
(Unaudited)
</b></font></p>
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<td width="10%" align="center"><font size="2" face="serif"><font face="serif" size="1">As Reported<br>June 30, 2006</font></font></td>
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<td width="10%" align="center"><font size="2" face="serif"><font face="serif" size="1">Business<br>Disposition (a)</font></font></td>
<td width="2%" align="left">&nbsp;</td>
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<td width="10%" align="center"><font size="2" face="serif"><font face="serif" size="1">Pro Forma<br>Adjustments</font></font></td>
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<td width="3%" align="left"></td>
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<td width="2%" align="left"></td>
<td width="10%" align="center"><font size="2" face="serif"><font face="serif" size="1">Pro Forma<br>June 30, 2006</font></font></td>
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  <td colspan="2" align="left"><font size="2" face="serif">ASSETS</font></td>
<td align="left"></td>
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<td align="left">&nbsp;</td>
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<td align="right"></td>
<td align="left">&nbsp;</td>
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<td align="right"></td>
<td align="left"></td>
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<td align="left"><font size="2" face="serif">Current Assets:</font></td>
<td align="left"></td>
<td align="left"></td>
<td align="left">&nbsp;</td>
<td align="left"></td>
<td align="right"></td>
<td align="left">&nbsp;</td>
<td align="left"></td>
<td align="right"></td>
<td align="left"></td>
<td align="left"></td>
<td align="left">&nbsp;</td>
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<td align="left">&nbsp;</td>
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<td align="left"><div style="margin-left: 6%; text-indent: -3%"><font size="2" face="serif">Cash
    and cash equivalents</font></div></td>
<td width="2%" align="left"><p><font size="2" face="serif">$</font></p></td>
<td width="10%" align="right"><font size="2" face="serif">89,362</font></td>
<td align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">$</font></td>
<td width="10%" align="right"><font size="2" face="serif">&#151;</font></td>
<td align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">$</font></td>
<td width="10%" align="right"><font size="2" face="serif">176,000</font></td>
<td width="2%" align="left"><font size="2" face="serif">&nbsp;</font></td>
<td width="3%" align="left"><font size="2" face="serif">(b)</font></td>
<td width="3%" align="left">&nbsp;</td>
<td width="2%" align="left"><font size="2" face="serif">$</font></td>
<td width="10%" align="right"><font size="2" face="serif">262,989</font></td>
<td width="2%" align="left">&nbsp;</td>
<td align="left">&nbsp;</td>
</tr>
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  <td width="3%" align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">(2,373</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="left"><font size="2" face="serif">(c)</font></td>
<td align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="left">&nbsp;</td>
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  <td width="3%" align="left">&nbsp;</td>
<td align="left"><div style="margin-left: 6%; text-indent: -3%"><font size="2" face="serif">Short-term
    investments</font></div></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">150</font></td>
<td align="left">&nbsp;</td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">&#151;</font></td>
<td align="left">&nbsp;</td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"></td>
<td align="left"></td>
<td align="left">&nbsp;</td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">150</font></td>
<td align="left">&nbsp;</td>
<td align="left">&nbsp;</td>
</tr>
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  <td width="3%" align="left">&nbsp;</td>
<td align="left"><div style="margin-left: 6%; text-indent: -3%"><font size="2" face="serif">Accounts
    receivable, net</font></div></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">11,948</font></td>
<td align="left">&nbsp;</td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">&nbsp;(5,919</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">&#151;</font></td>
<td align="left"></td>
<td align="left"></td>
<td align="left">&nbsp;</td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">6,029</font></td>
<td align="left">&nbsp;</td>
<td align="left">&nbsp;</td>
</tr>
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  <td width="3%" align="left">&nbsp;</td>
<td align="left"><div style="margin-left: 6%; text-indent: -3%"><font size="2" face="serif">Notes
    receivable</font></div></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">630</font></td>
<td align="left">&nbsp;</td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">&#151;</font></td>
<td align="left">&nbsp;</td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">&#151;</font></td>
<td align="left"></td>
<td align="left"></td>
<td align="left">&nbsp;</td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">630</font></td>
<td align="left">&nbsp;</td>
<td align="left">&nbsp;</td>
</tr>
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  <td width="3%" align="left">&nbsp;</td>
<td align="left"><div style="margin-left: 6%; text-indent: -3%"><font size="2" face="serif">Inventories,
    net</font></div></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">8,677</font></td>
<td align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">(2,951</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">&#151;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">5,726</font></td>
<td align="left">&nbsp;</td>
<td align="left">&nbsp;</td>
</tr>
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  <td width="3%" align="left">&nbsp;</td>
<td align="left"><div style="margin-left: 6%; text-indent: -3%"><font size="2" face="serif">Prepaid
    expenses and other current assets</font></div></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">5,117</font></td>
<td align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">(711</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">1,590</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">(d)</font></td>
<td align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">5,996</font></td>
<td align="left">&nbsp;</td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="bottom">
  <td align="left">&nbsp;</td>
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left"><hr size="1" noshade>
  </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">&nbsp;</td>
  <td align="left"><hr size="1" noshade>
  </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">&nbsp;</td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left">&nbsp;</td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">&nbsp;</td>
  <td align="left">&nbsp;</td>
</tr>
<tr valign="bottom" bgcolor="#FFFFFF">
  <td width="3%" align="left">&nbsp;</td>
<td align="left"><div style="margin-left: 9%; text-indent: -3%"><font size="2" face="serif">Total
    current assets</font></div></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">115,884</font></td>
<td align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">(9,581</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">175,217</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">281,520</font></td>
<td align="left">&nbsp;</td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="bottom">
  <td align="left">&nbsp;</td>
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left"><hr size="1" noshade>
  </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">&nbsp;</td>
  <td align="left"><hr size="1" noshade>
  </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">&nbsp;</td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left">&nbsp;</td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">&nbsp;</td>
  <td align="left">&nbsp;</td>
</tr>
<tr valign="bottom" bgcolor="#ffffff">
  <td width="3%" align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">Property and equipment, net</font></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">7,147</font></td>
<td align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">(5,795</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">&#151;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">1,352</font></td>
<td align="left">&nbsp;</td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="bottom" bgcolor="#FFFFFF">
  <td width="3%" align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">Goodwill</font></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">40,121</font></td>
<td align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">(40,121</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">&#151;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">&#151;</font></td>
<td align="left">&nbsp;</td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="bottom" bgcolor="#ffffff">
  <td width="3%" align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">Other intangibles, net</font></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">65,613</font></td>
<td align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">(65,613</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">&#151;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">&#151;</font></td>
<td align="left">&nbsp;</td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="bottom" bgcolor="#FFFFFF">
  <td width="3%" align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">Other assets (including restricted cash of $1,280)</font></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">3,522</font></td>
<td align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">&#151;</font></td>
<td align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">&#151;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">3,522</font></td>
<td align="left">&nbsp;</td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="bottom">
  <td align="left">&nbsp;</td>
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left"><hr size="1" noshade>
  </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">&nbsp;</td>
  <td align="left"><hr size="1" noshade>
  </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">&nbsp;</td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left">&nbsp;</td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">&nbsp;</td>
  <td align="left">&nbsp;</td>
</tr>
<tr valign="bottom">
  <td width="3%" align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="bottom" bgcolor="#ffffff">
  <td width="3%" align="left">&nbsp;</td>
<td align="left"><div style="margin-left: 6%; text-indent: -3%"><font size="2" face="serif">Total
    assets</font></div></td>
<td align="left"><font size="2" face="serif">$</font></td>
<td align="right"><font size="2" face="serif">232,287</font></td>
<td align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">$</font></td>
<td align="right"><font size="2" face="serif">(121,110</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="left"><font size="2" face="serif">$</font></td>
<td align="right"><font size="2" face="serif">175,217</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">$</font></td>
<td align="right"><font size="2" face="serif">286,394</font></td>
<td align="left">&nbsp;</td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="bottom">
  <td width="3%" align="left">&nbsp;</td>
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left"><hr size="2" noshade>
  </td>
  <td align="left">
    <hr size="2" noshade>
  </td>
  <td align="left">&nbsp;</td>
  <td align="left"><hr size="2" noshade>
    </td>
  <td align="left">
    <hr size="2" noshade>
  </td>
  <td align="left">&nbsp;</td>
  <td align="left">
    <hr size="2" noshade>
  </td>
  <td align="left">
    <hr size="2" noshade>
  </td>
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left">&nbsp;</td>
  <td align="left">
    <hr size="2" noshade>
  </td>
  <td align="left">
    <hr size="2" noshade>
  </td>
  <td align="left">&nbsp;</td>
  <td align="left">&nbsp;</td>
</tr>
<tr valign="bottom" bgcolor="#FFFFFF">
  <td colspan="2" align="left"><font size="2" face="serif">LIABILITIES AND STOCKHOLDERS EQUITY</font></td>
<td align="left"></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="bottom" bgcolor="#FFFFFF">
  <td width="3%" align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">Current Liabilities:</font></td>
<td align="left"></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="bottom" bgcolor="#FFFFFF">
  <td width="3%" align="left">&nbsp;</td>
<td align="left"><div style="margin-left: 6%; text-indent: -3%"><font size="2" face="serif">Accounts
    payable </font></div></td>
<td align="left"><font size="2" face="serif">$</font></td>
<td align="right"><font size="2" face="serif">6,695</font></td>
<td align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">$</font></td>
<td align="right"><font size="2" face="serif">(3,716</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="left"><font size="2" face="serif">$</font></td>
<td align="right"><font size="2" face="serif">32,497</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">(e)</font></td>
<td align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">35,476</font></td>
<td align="left">&nbsp;</td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="bottom" bgcolor="#ffffff">
  <td width="3%" align="left">&nbsp;</td>
<td align="left"><div style="margin-left: 6%; text-indent: -3%"><font size="2" face="serif">Other
    current liabilities</font></div></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">13,202</font></td>
<td align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">(3,394</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">2,688</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">(f)</font></td>
<td align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">12,496</font></td>
<td align="left">&nbsp;</td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="bottom" bgcolor="#FFFFFF">
  <td width="3%" align="left">&nbsp;</td>
<td align="left"><div style="margin-left: 6%; text-indent: -3%"><font size="2" face="serif">Deferred
    revenues</font></div></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">1,973</font></td>
<td align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">&#151;</font></td>
<td align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">(1,973</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="left"><font size="2" face="serif">(g)</font></td>
<td align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">&#151;</font></td>
<td align="left">&nbsp;</td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="bottom">
  <td align="left">&nbsp;</td>
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left"><hr size="1" noshade>
  </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">&nbsp;</td>
  <td align="left"><hr size="1" noshade>
  </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">&nbsp;</td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left">&nbsp;</td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">&nbsp;</td>
  <td align="left">&nbsp;</td>
</tr>
<tr valign="bottom" bgcolor="#ffffff">
  <td width="3%" align="left">&nbsp;</td>
<td align="left"><div style="margin-left: 9%; text-indent: -3%"><font size="2" face="serif">Total
    current liabilities</font></div></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">21,870</font></td>
<td align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">(7,110</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">33,212</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">47,972</font></td>
<td align="left">&nbsp;</td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="bottom">
  <td align="left">&nbsp;</td>
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left"><hr size="1" noshade>
  </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">&nbsp;</td>
  <td align="left"><hr size="1" noshade>
  </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">&nbsp;</td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left">&nbsp;</td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">&nbsp;</td>
  <td align="left">&nbsp;</td>
</tr>
<tr valign="bottom" bgcolor="#FFFFFF">
  <td width="3%" align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">Deferred income taxes</font></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">19,728</font></td>
<td align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">(19,728</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">&#151;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">&#151;</font></td>
<td align="left">&nbsp;</td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="bottom">
  <td align="left">&nbsp;</td>
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left"><hr size="1" noshade>
  </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">&nbsp;</td>
  <td align="left"><hr size="1" noshade>
  </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">&nbsp;</td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left">&nbsp;</td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">&nbsp;</td>
  <td align="left">&nbsp;</td>
</tr>
<tr valign="bottom" bgcolor="#FFFFFF">
  <td width="3%" align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">Commitments and contingencies</font></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">&#151;</font></td>
<td align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">&#151;</font></td>
<td align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">&#151;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">&#151;</font></td>
<td align="left">&nbsp;</td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="bottom" bgcolor="#FFFFFF">
  <td width="3%" align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">Stockholders&#146; Equity:</font></td>
<td align="left"></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="bottom" bgcolor="#ffffff">
  <td width="3%" align="left">&nbsp;</td>
<td align="left"><div style="margin-left: 6%; text-indent: -3%"><font size="2" face="serif">Preferred
    stock &#150; $.01 par value; 4,000,000 shares authorized; no shares issued</font></div></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">&#151;</font></td>
<td align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">&#151;</font></td>
<td align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">&#151;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">&#151;</font></td>
<td align="left">&nbsp;</td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="bottom" bgcolor="#FFFFFF">
  <td width="3%" align="left">&nbsp;</td>
<td align="left"><div style="margin-left: 6%; text-indent: -3%"><font size="2" face="serif">Common
      stock &#150; $.01 par value; 150,000,000 shares authorized; 61,754,000
    shares issued and outstanding</font></div></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">617</font></td>
<td align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">&#151;</font></td>
<td align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">&#151;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">617</font></td>
<td align="left">&nbsp;</td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="bottom" bgcolor="#ffffff">
  <td width="3%" align="left">&nbsp;</td>
<td align="left"><div style="margin-left: 6%; text-indent: -3%"><font size="2" face="serif">Additional
    paid in capital</font></div></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">222,346</font></td>
<td align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">&#151;</font></td>
<td align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">&#151;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">222,346</font></td>
<td align="left">&nbsp;</td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="bottom" bgcolor="#FFFFFF">
  <td width="3%" align="left">&nbsp;</td>
<td align="left"><div style="margin-left: 6%; text-indent: -3%"><font size="2" face="serif">Accumulated
    deficit</font></div></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">(34,299</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">(92,160</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">140,986</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">(h)</font></td>
<td align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">15,546</font></td>
<td align="left">&nbsp;</td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="bottom" bgcolor="#ffffff">
  <td width="3%" align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right">&nbsp;</td>
<td align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">1,019</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">(i)</font></td>
<td align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right">&nbsp;</td>
<td align="left">&nbsp;</td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="bottom" bgcolor="#FFFFFF">
  <td width="3%" align="left">&nbsp;</td>
<td align="left"><div style="margin-left: 6%; text-indent: -3%"><font size="2" face="serif">Accumulated
    other comprehensive income</font></div></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">2,025</font></td>
<td align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">(2,112</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">&#151;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">(87</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="bottom">
  <td width="3%" align="left">&nbsp;</td>
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left"><hr size="1" noshade>
  </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">&nbsp;</td>
  <td align="left"><hr size="1" noshade>
    </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">&nbsp;</td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left">&nbsp;</td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">&nbsp;</td>
  <td align="left">&nbsp;</td>
</tr>
<tr valign="bottom" bgcolor="#ffffff">
  <td width="3%" align="left">&nbsp;</td>
<td align="left"><div style="margin-left: 6%; text-indent: -3%"><font size="2" face="serif">Total
    stockholders&#146; equity</font></div></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">190,689</font></td>
<td align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">(94,272</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">142,005</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">238,422</font></td>
<td align="left">&nbsp;</td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="bottom">
  <td width="3%" align="left">&nbsp;</td>
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left"><hr size="1" noshade>
  </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">&nbsp;</td>
  <td align="left"><hr size="1" noshade>
    </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">&nbsp;</td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left">&nbsp;</td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">&nbsp;</td>
  <td align="left">&nbsp;</td>
</tr>
<tr valign="bottom" bgcolor="#FFFFFF">
  <td width="3%" align="left">&nbsp;</td>
<td align="left"><div style="margin-left: 9%; text-indent: -3%"><font size="2" face="serif">Total
    liabilities and stockholders&#146; equity</font></div></td>
<td align="left"><font size="2" face="serif">$</font></td>
<td align="right"><font size="2" face="serif">232,287</font></td>
<td align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">$</font></td>
<td align="right"><font size="2" face="serif">(121,110</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="left"><font size="2" face="serif">$</font></td>
<td align="right"><font size="2" face="serif">175,217</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">$</font></td>
<td align="right"><font size="2" face="serif">286,394</font></td>
<td align="left">&nbsp;</td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="bottom">
  <td align="left">&nbsp;</td>
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left"><hr size="2" noshade>
  </td>
  <td align="left">
    <hr size="2" noshade>
  </td>
  <td align="left">&nbsp;</td>
  <td align="left"><hr size="2" noshade>
    </td>
  <td align="left">
    <hr size="2" noshade>
  </td>
  <td align="left">&nbsp;</td>
  <td align="left">
    <hr size="2" noshade>
  </td>
  <td align="left">
    <hr size="2" noshade>
  </td>
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left">&nbsp;</td>
  <td align="left">
    <hr size="2" noshade>
  </td>
  <td align="left">
    <hr size="2" noshade>
  </td>
  <td align="left">&nbsp;</td>
  <td align="left">&nbsp;</td>
</tr>
</table>
<p align="center">&nbsp;</p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>

<p align="center"><font size="2" face="serif"><b>Savient Pharmaceuticals, Inc.
      and Subsidiaries</b></font><br>
<font size="2" face="serif"><b>Notes to Unaudited Pro Forma Consolidated Balance Sheet</b></font></p>  <table width="100%" cellspacing="0" cellpadding="0" border="0">
<tr valign="top"> <td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">a)</font></td>
<td align="left"><font size="2" face="serif">Reflects the balance sheet of the disposed oral liquid pharmaceutical business as of June 30, 2006, excluding cash and cash equivalents. </font></td> </tr>
<tr valign="top">
<td width="3%">&nbsp;</td>
<td width="3%">&nbsp;</td>
<td>&nbsp;</td> </tr>
<tr valign="top">
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">b)</font></td>
<td align="left"><font size="2" face="serif">Reflects cash proceeds of $176,000,000 received at the closing of the sale of the oral liquid pharmaceutical business.</font></td>
</tr>
<tr valign="top">
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td> </tr>
<tr valign="top">
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">c)</font></td>
<td align="left"><font size="2" face="serif">Cash amounting to $2,373,000 was retained by the disposed entity to cover certain costs including working capital adjustments, outstanding checks, retention bonuses, insurance expenses and taxes. </font></td>
</tr>
<tr valign="top">
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td> </tr>
<tr valign="top">
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">d)</font></td>
<td align="left"><font size="2" face="serif">Tax refund due from U.K. taxing authorities.</font></td>
</tr>
<tr valign="top">
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td> </tr>
<tr valign="top">
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">e)</font></td>
<td align="left"><font size="2" face="serif">Estimated tax due related to the oral liquid pharmaceutical business disposition.</font></td>
</tr>
<tr valign="top">
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td> </tr>
<tr valign="top">
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">f)</font></td>
<td align="left"><font size="2" face="serif">Estimated disposition expenses incurred
    after June 30, 2006 related to the sale of the oral liquid pharmaceutical
    business.</font></td>
</tr>
<tr valign="top">
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td> </tr>
<tr valign="top">
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">g)</font></td>
<td align="left"><font size="2" face="serif">The Company had previously deferred an upfront licensing fee related to Soltamox. At the closing of the sale of the oral liquid pharmaceutical business, all revenue previously deferred attributable to the Soltamox license will be recognized and included in the gain on sale of the oral liquid pharmaceutical business since the Soltamox license was included as part of the oral liquid pharmaceutical business disposition. </font></td>
</tr>
<tr valign="top">
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td> </tr>
<tr valign="top">
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">h)</font></td>
<td align="left"><font size="2" face="serif">Cumulative impact of pro forma adjustments which result in a pro forma net gain on the sale of the oral liquid pharmaceutical business of approximately $46.7 million.</font></td>
</tr>
<tr valign="top">
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td> </tr>
<tr valign="top">
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">i)</font></td>
<td align="left"><font size="2" face="serif">Disposition expenses incurred through June 30, 2006 related to the sale of the oral liquid pharmaceutical business. These expenses will be reclassified to be included in the gain on sale of the oral liquid pharmaceutical business.</font></td>
</tr>
</table>
<p align="center">&nbsp;</p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>

<p align="center"><font size="2" face="serif"><b>Savient Pharmaceuticals, Inc.
      and Subsidiaries</b></font><br>
<font size="2" face="serif"><b>Unaudited Pro Forma Consolidated Statements of
Operations</b></font><br>
<font size="2" face="serif"><b>(In thousands, except per share data)</b></font><br>
<font size="2" face="serif"><b>For the Six Months Ended June 30, 2006<br>
(Unaudited)
</b></font></p>
<table width="100%" cellspacing="0" cellpadding="0" align="center" border="0">
<tr valign="top" bgcolor="#FFFFFF">
<td align="left" valign="bottom"></td>
<td width="2%" align="left" valign="bottom"></td>
<td width="10%" align="center" valign="bottom"><font size="2" face="serif"><font face="serif" size="1">As Reported</font></font></td>
<td width="2%" align="left" valign="bottom"></td>
<td width="2%" align="left" valign="bottom"></td>
<td width="10%" align="center" valign="bottom"><font size="2" face="serif"><font face="serif" size="1">Business<br>
  Disposition (a)</font></font></td>
<td width="2%" align="left" valign="bottom"></td>
<td width="2%" align="left" valign="bottom"></td>
<td width="10%" align="center" valign="bottom"><font size="2" face="serif"><font face="serif" size="1">Pro Forma <br>
  Adjusted</font></font></td>
<td width="2%" align="left" valign="bottom"></td>
<td width="2%" align="left">&nbsp;</td> </tr>
<tr valign="top">
<td align="left"></td>
<td align="left">
  <hr size="1" noshade></td>
<td align="left">
  <hr size="1" noshade></td>
<td align="left"><font size="2" face="serif">&nbsp;</font>  </td>
<td align="left">
  <hr size="1" noshade></td>
<td align="left">
  <hr size="1" noshade></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">
  <hr size="1" noshade></td>
<td align="left">
  <hr size="1" noshade></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#FFFFFF">
<td align="left"><font size="2" face="serif">Revenues:</font></td>
<td align="left"></td>
<td align="left"></td>
<td align="left"></td>
<td align="left"></td>
<td align="left"></td>
<td align="left"></td>
<td align="left"></td>
<td align="left"></td>
<td align="left"></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#ffffff">
<td align="left"><div style="margin-left: 6%; text-indent: -3%"><font size="2" face="serif">Product
    sales, net</font></div></td>
<td width="2%" align="left"><font size="2" face="serif">$</font></td>
<td width="10%" align="right"><font size="2" face="serif">42,807</font></td>
<td width="2%" align="left"></td>
<td width="2%" align="left"><font size="2" face="serif">$</font></td>
<td width="10%" align="right"><font size="2" face="serif">(19,544</font></td>
<td width="2%" align="left"><font size="2" face="serif">)</font></td>
<td width="2%" align="left"><font size="2" face="serif">$</font></td>
<td width="10%" align="right"><font size="2" face="serif">23,263</font></td>
<td width="2%" align="left"></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#FFFFFF">
<td align="left"><div style="margin-left: 6%; text-indent: -3%"><font size="2" face="serif">Other
    revenues</font></div></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">100</font></td>
<td align="left"></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">&#151;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">100</font></td>
<td align="left"></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top">
  <td align="left"></td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left"><font size="2" face="serif">&nbsp;</font> </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#ffffff">
<td align="left"><div style="margin-left: 9%; text-indent: -3%"><font size="2" face="serif">&nbsp;</font></div></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">42,907</font></td>
<td align="left"></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">(19,544</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">23,363</font></td>
<td align="left"></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top">
  <td align="left"></td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left"><font size="2" face="serif">&nbsp;</font> </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#FFFFFF">
<td align="left"><font size="2" face="serif">Expenses:</font></td>
<td align="left"></td>
<td align="left"></td>
<td align="left"></td>
<td align="left"></td>
<td align="left"></td>
<td align="left"></td>
<td align="left"></td>
<td align="left"></td>
<td align="left"></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#FFFFFF">
<td align="left"><div style="margin-left: 6%; text-indent: -3%"><font size="2" face="serif">Research
    and development</font></div></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">8,805</font></td>
<td align="left"></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">(1,353</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">7,452</font></td>
<td align="left"></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#ffffff">
<td align="left"><div style="margin-left: 6%; text-indent: -3%"><font size="2" face="serif">Selling
    and marketing</font></div></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">8,408</font></td>
<td align="left"></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">(3,439</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">4,969</font></td>
<td align="left"></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#FFFFFF">
<td align="left"><div style="margin-left: 6%; text-indent: -3%"><font size="2" face="serif">General
    and administrative</font></div></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">16,184</font></td>
<td align="left"></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">(1,192</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">14,992</font></td>
<td align="left"></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#ffffff">
<td align="left"><div style="margin-left: 6%; text-indent: -3%"><font size="2" face="serif">Cost
    of sales</font></div></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">8,871</font></td>
<td align="left"></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">(6,652</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">2,219</font></td>
<td align="left"></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#FFFFFF">
<td align="left"><div style="margin-left: 6%; text-indent: -3%"><font size="2" face="serif">Amortization
    of intangibles</font></div></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">2,025</font></td>
<td align="left"></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">&nbsp;(2,025</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">&#151;</font></td>
<td align="left"></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#ffffff">
<td align="left"><div style="margin-left: 6%; text-indent: -3%"><font size="2" face="serif">Commission
    and royalties</font></div></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">5</font></td>
<td align="left"></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">&#151;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">5</font></td>
<td align="left"></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top">
  <td align="left"></td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left"><font size="2" face="serif">&nbsp;</font> </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#FFFFFF">
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">44,298</font></td>
<td align="left"></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">(14,661</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">29,637</font></td>
<td align="left"></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top">
  <td align="left"></td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left"><font size="2" face="serif">&nbsp;</font> </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#ffffff">
<td align="left"><font size="2" face="serif">Operating loss</font></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">(1,391</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">(4,883</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">(6,274</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#FFFFFF">
<td align="left"><div style="margin-left: 6%; text-indent: -3%"><font size="2" face="serif">Investment
    income</font></div></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">2,063</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">(257</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">1,806</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#ffffff">
<td align="left"><div style="margin-left: 6%; text-indent: -3%"><font size="2" face="serif">Other
    income, net</font></div></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">8,297</font></td>
<td align="left"></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">&#151;</font></td>
<td align="left"></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">8,297</font></td>
<td align="left"></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top">
  <td align="left"></td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left"><font size="2" face="serif">&nbsp;</font> </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#FFFFFF">
<td align="left"><font size="2" face="serif">Income before income taxes</font></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">8,969</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">(5,140</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">3,829</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#ffffff">
<td align="left"><div style="margin-left: 6%; text-indent: -3%"><font size="2" face="serif">Income
    tax expense</font></div></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">1,749</font></td>
<td align="left"></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">(1,631</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">118</font></td>
<td align="left"></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top">
  <td align="left"></td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left"><font size="2" face="serif">&nbsp;</font> </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#FFFFFF">
<td align="left"><font size="2" face="serif">Net income</font></td>
<td align="left"><font size="2" face="serif">$</font></td>
<td align="right"><font size="2" face="serif">7,220</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">$</font></td>
<td align="right"><font size="2" face="serif">(3,509</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="left"><font size="2" face="serif">$</font></td>
<td align="right"><font size="2" face="serif">3,711</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top">
  <td align="left"></td>
  <td align="left">
    <hr size="2" noshade>
  </td>
  <td align="left">
    <hr size="2" noshade>
  </td>
  <td align="left"><font size="2" face="serif">&nbsp;</font> </td>
  <td align="left">
    <hr size="2" noshade>
  </td>
  <td align="left">
    <hr size="2" noshade>
  </td>
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left">
    <hr size="2" noshade>
  </td>
  <td align="left">
    <hr size="2" noshade>
  </td>
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#ffffff">
<td align="left"><font size="2" face="serif">Basic earnings per common share</font></td>
<td align="left"><font size="2" face="serif">$</font></td>
<td align="right"><font size="2" face="serif">0.12</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"></td>
<td align="left"></td>
<td align="left"></td>
<td align="left"><font size="2" face="serif">$</font></td>
<td align="right"><font size="2" face="serif">0.06</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top">
  <td align="left"></td>
  <td align="left">
    <hr size="2" noshade>
  </td>
  <td align="left">
    <hr size="2" noshade>
  </td>
  <td align="left"><font size="2" face="serif">&nbsp;</font> </td>
  <td align="left">&nbsp; </td>
  <td align="left">&nbsp; </td>
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left">
    <hr size="2" noshade>
  </td>
  <td align="left">
    <hr size="2" noshade>
  </td>
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#FFFFFF">
<td align="left"><font size="2" face="serif">Diluted earnings per common share</font></td>
<td align="left"><font size="2" face="serif">$</font></td>
<td align="right"><font size="2" face="serif">0.12</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"></td>
<td align="left"></td>
<td align="left"></td>
<td align="left"><font size="2" face="serif">$</font></td>
<td align="right"><font size="2" face="serif">0.06</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top">
  <td align="left"></td>
  <td align="left">
    <hr size="2" noshade>
  </td>
  <td align="left">
    <hr size="2" noshade>
  </td>
  <td align="left"><font size="2" face="serif">&nbsp;</font> </td>
  <td align="left">&nbsp;  </td>
  <td align="left">&nbsp;  </td>
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left">
    <hr size="2" noshade>
  </td>
  <td align="left">
    <hr size="2" noshade>
  </td>
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left">&nbsp;</td>
</tr>
<tr valign="top">
<td align="left"></td>
<td align="left"></td>
<td align="left"></td>
<td align="left"></td>
<td align="left"></td>
<td align="left"></td>
<td align="left"></td>
<td align="left"></td>
<td align="left"></td>
<td align="left"></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#FFFFFF">
<td align="left"><div style="margin-left: 3%; text-indent: -3%"><font size="2" face="serif">Weighted
      average number of common and common</font><br>
      <font size="2" face="serif"> equivalent shares:</font></div></td>
<td align="left"></td>
<td align="left"></td>
<td align="left"></td>
<td align="left"></td>
<td align="left"></td>
<td align="left"></td>
<td align="left"></td>
<td align="left"></td>
<td align="left"></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#ffffff">
<td align="left"><div style="margin-left: 6%; text-indent: -3%"><font size="2" face="serif">Basic</font></div></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">61,286</font></td>
<td align="left"></td>
<td align="left"></td>
<td align="left"></td>
<td align="left"></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">61,286</font></td>
<td align="left"></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#FFFFFF">
<td align="left"><div style="margin-left: 6%; text-indent: -3%"><font size="2" face="serif">Diluted</font></div></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">62,216</font></td>
<td align="left"></td>
<td align="left"></td>
<td align="left"></td>
<td align="left"></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">62,216</font></td>
<td align="left"></td>
<td align="left">&nbsp;</td>
</tr>
</table>
<p align="center">&nbsp;</p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>

<p align="center"><font size="2" face="serif"><b>Savient Pharmaceuticals, Inc.
      and Subsidiaries</b></font><br>
<font size="2" face="serif"><b>Notes to Unaudited Pro Forma Statement of Operations</b></font></p>  <table width="100%" cellspacing="0" cellpadding="0" border="0">
<tr valign="top">
<td align="left" width="3%"><font size="2" face="serif">&nbsp;</font></td>
<td align="left" width="3%"><font size="2" face="serif">a)</font></td>
<td align="left"><font size="2" face="serif">Reflects the elimination of operating results of the oral liquids pharmaceutical business for the six months ended June 30, 2006, excluding intercompany corporate charges of $1,476,000 and intercompany interest expense of $1,815,000.</font></td>
</tr>
</table>
<p align="center">&nbsp;</p>
<p align="center">&nbsp;</p>
<p align="center">&nbsp;</p>
<p align="center">&nbsp;</p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>

<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align="center"><font size="2" face="serif"><b>Savient Pharmaceuticals, Inc.
      and Subsidiaries</b></font><br>
<font size="2" face="serif"><b>Unaudited Pro Forma Consolidated
      Statements of Operations</b></font><br>
<font size="2" face="serif"><b>(In thousands, except per share
      data)</b></font><br>
<font size="2" face="serif"><b>For the Three Months Ended June 30, 2006<br>
(Unaudited)</b></font></p>
<table width="100%" cellspacing="0" cellpadding="0" align="center" border="0">
<tr valign="bottom" bgcolor="#FFFFFF">
<td align="left"></td>
<td width="1%" align="left"></td>
<td width="10%" align="center"><font size="2" face="serif"><font face="serif" size="1">As Reported</font></font></td>
<td width="2%" align="left">&nbsp;</td>
<td width="1%" align="left"></td>
<td width="10%" align="center"><font size="2" face="serif"><font face="serif" size="1">Business<br>
  Disposition (a)</font></font></td>
<td width="1%" align="left"></td>
<td width="1%" align="left"></td>
<td width="10%" align="center"><font size="2" face="serif"><font face="serif" size="1">Pro Forma <br>
  Adjusted</font></font></td>
<td width="1%" align="left"></td>
<td width="2%" align="left">&nbsp;</td> </tr>
<tr valign="top">
<td align="left"></td>
<td align="left">
  <hr size="1" noshade></td>
<td align="left">
  <hr size="1" noshade></td>
<td align="left">&nbsp;</td>
<td align="left">
  <hr size="1" noshade></td>
<td align="left">
  <hr size="1" noshade></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">
  <hr size="1" noshade></td>
<td align="left">
  <hr size="1" noshade></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#FFFFFF">
<td align="left"><font size="2" face="serif">Revenues:</font></td>
<td align="left"></td>
<td align="left"></td>
<td align="left">&nbsp;</td>
<td align="left"></td>
<td align="left"></td>
<td align="left"></td>
<td align="left"></td>
<td align="left"></td>
<td align="left"></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#ffffff">
<td align="left"><div style="margin-left: 6%; text-indent: -3%"><font size="2" face="serif">Product
    sales, net</font></div></td>
<td align="left"><font size="2" face="serif">$</font></td>
<td width="10%" align="right"><font size="2" face="serif">23,901</font></td>
<td align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">$</font></td>
<td width="10%" align="right"><font size="2" face="serif">(10,141</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="left"><font size="2" face="serif">$</font></td>
<td width="10%" align="right"><font size="2" face="serif">13,760</font></td>
<td align="left"></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#FFFFFF">
<td align="left"><div style="margin-left: 6%; text-indent: -3%"><font size="2" face="serif">Other
    revenues</font></div></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">100</font></td>
<td align="left">&nbsp;</td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">&#151;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">100</font></td>
<td align="left"></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top">
  <td align="left"></td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">&nbsp;</td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#ffffff">
<td align="left"><div style="margin-left: 9%; text-indent: -3%"><font size="2" face="serif">&nbsp;</font></div></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">24,001</font></td>
<td align="left">&nbsp;</td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">(10,141</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">13,860</font></td>
<td align="left"></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top">
  <td align="left"></td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">&nbsp;</td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#FFFFFF">
<td align="left"><font size="2" face="serif">Expenses:</font></td>
<td align="left"></td>
<td align="left"></td>
<td align="left">&nbsp;</td>
<td align="left"></td>
<td align="left"></td>
<td align="left"></td>
<td align="left"></td>
<td align="left"></td>
<td align="left"></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#FFFFFF">
<td align="left"><div style="margin-left: 6%; text-indent: -3%"><font size="2" face="serif">Research
    and development</font></div></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">4,818</font></td>
<td align="left">&nbsp;</td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">(652</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">4,166</font></td>
<td align="left"></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#ffffff">
<td align="left"><div style="margin-left: 6%; text-indent: -3%"><font size="2" face="serif">Selling
    and marketing</font></div></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">3,752</font></td>
<td align="left">&nbsp;</td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">(1,616</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">2,136</font></td>
<td align="left"></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#FFFFFF">
<td align="left"><div style="margin-left: 6%; text-indent: -3%"><font size="2" face="serif">General
    and administrative</font></div></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">7,474</font></td>
<td align="left">&nbsp;</td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">(663</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">6,811</font></td>
<td align="left"></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#ffffff">
<td align="left"><div style="margin-left: 6%; text-indent: -3%"><font size="2" face="serif">Cost
    of sales</font></div></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">5,016</font></td>
<td align="left">&nbsp;</td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">(3,655</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">1,361</font></td>
<td align="left"></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#FFFFFF">
<td align="left"><div style="margin-left: 6%; text-indent: -3%"><font size="2" face="serif">Amortization
    of intangibles</font></div></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">1,012</font></td>
<td align="left">&nbsp;</td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">(1,012</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">&#151;</font></td>
<td align="left"></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#ffffff">
<td align="left"><div style="margin-left: 6%; text-indent: -3%"><font size="2" face="serif">Commission
    and royalties</font></div></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">4</font></td>
<td align="left">&nbsp;</td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">&#151;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">4</font></td>
<td align="left"></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top">
  <td align="left"></td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">&nbsp;</td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#FFFFFF">
<td align="left"><div style="margin-left: 6%; text-indent: -3%"><font size="2" face="serif">&nbsp;</font></div></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">22,076</font></td>
<td align="left">&nbsp;</td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">(7,598</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">14,478</font></td>
<td align="left"></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top">
  <td align="left"></td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">&nbsp;</td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#ffffff">
<td align="left"><font size="2" face="serif">Operating income (loss)</font></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">1,925</font></td>
<td align="left">&nbsp;</td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">(2,543</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">(618</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#FFFFFF">
<td align="left"><div style="margin-left: 6%; text-indent: -3%"><font size="2" face="serif">Investment
    income</font></div></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">1,040</font></td>
<td align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">(123</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">917</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#ffffff">
<td align="left"><div style="margin-left: 6%; text-indent: -3%"><font size="2" face="serif">Other
    income, net</font></div></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">465</font></td>
<td align="left">&nbsp;</td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">&#151;</font></td>
<td align="left"></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">465</font></td>
<td align="left"></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top">
  <td align="left"></td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">&nbsp;</td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#FFFFFF">
<td align="left"><font size="2" face="serif">Income before income taxes</font></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">3,430</font></td>
<td align="left">&nbsp;</td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">(2,666</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">764</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#ffffff">
<td align="left"><div style="margin-left: 6%; text-indent: -3%"><font size="2" face="serif">Income
    tax expense</font></div></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">188</font></td>
<td align="left">&nbsp;</td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">(173</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">15</font></td>
<td align="left"></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top">
  <td align="left"></td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">&nbsp;</td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#FFFFFF">
<td align="left"><font size="2" face="serif">Net income</font></td>
<td align="left"><font size="2" face="serif">$</font></td>
<td align="right"><font size="2" face="serif">3,242</font></td>
<td align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">$</font></td>
<td align="right"><font size="2" face="serif">(2,493</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="left"><font size="2" face="serif">$</font></td>
<td align="right"><font size="2" face="serif">749</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top">
  <td align="left"></td>
  <td align="left">
    <hr size="2" noshade>
  </td>
  <td align="left">
    <hr size="2" noshade>
  </td>
  <td align="left">&nbsp;</td>
  <td align="left">
    <hr size="2" noshade>
  </td>
  <td align="left">
    <hr size="2" noshade>
  </td>
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left">
    <hr size="2" noshade>
  </td>
  <td align="left">
    <hr size="2" noshade>
  </td>
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#ffffff">
<td align="left"><font size="2" face="serif">Basic earnings per common share</font></td>
<td align="left"><font size="2" face="serif">$</font></td>
<td align="right"><font size="2" face="serif">0.05</font></td>
<td align="left">&nbsp;</td>
<td align="left"></td>
<td align="left"></td>
<td align="left"></td>
<td align="left"><font size="2" face="serif">$</font></td>
<td align="right"><font size="2" face="serif">0.01</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top">
  <td align="left"></td>
  <td align="left">
    <hr size="2" noshade>
  </td>
  <td align="left">
    <hr size="2" noshade>
  </td>
  <td align="left">&nbsp;</td>
  <td align="left">&nbsp; </td>
  <td align="left">&nbsp; </td>
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left">
    <hr size="2" noshade>
  </td>
  <td align="left">
    <hr size="2" noshade>
  </td>
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#FFFFFF">
<td align="left"><font size="2" face="serif">Diluted earnings per common share</font></td>
<td align="left"><font size="2" face="serif">$</font></td>
<td align="right"><font size="2" face="serif">0.05</font></td>
<td align="left">&nbsp;</td>
<td align="left"></td>
<td align="left"></td>
<td align="left"></td>
<td align="left"><font size="2" face="serif">$</font></td>
<td align="right"><font size="2" face="serif">0.01</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top">
  <td align="left"></td>
  <td align="left">
    <hr size="2" noshade>
  </td>
  <td align="left">
    <hr size="2" noshade>
  </td>
  <td align="left">&nbsp;</td>
  <td align="left">&nbsp;  </td>
  <td align="left">&nbsp;  </td>
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left">
    <hr size="2" noshade>
  </td>
  <td align="left">
    <hr size="2" noshade>
  </td>
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#FFFFFF">
<td align="left"><div style="margin-left: 3%; text-indent: -3%"><font size="2" face="serif">Weighted
      average number of common and common</font><br>
      <font size="2" face="serif"> equivalent shares:</font></div></td>
<td align="left"></td>
<td align="left"></td>
<td align="left">&nbsp;</td>
<td align="left"></td>
<td align="left"></td>
<td align="left"></td>
<td align="left"></td>
<td align="left"></td>
<td align="left"></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#ffffff">
<td align="left"><div style="margin-left: 6%; text-indent: -3%"><font size="2" face="serif">Basic</font></div></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">61,358</font></td>
<td align="left">&nbsp;</td>
<td align="left"></td>
<td align="left"></td>
<td align="left"></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">61,358</font></td>
<td align="left"></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#FFFFFF">
<td align="left"><div style="margin-left: 6%; text-indent: -3%"><font size="2" face="serif">Diluted</font></div></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">62,456</font></td>
<td align="left">&nbsp;</td>
<td align="left"></td>
<td align="left"></td>
<td align="left"></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">62,456</font></td>
<td align="left"></td>
<td align="left">&nbsp;</td>
</tr>
</table>
<p align="center">&nbsp;</p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>

<p align="center"><font size="2" face="serif"><b>Savient Pharmaceuticals, Inc.
      and Subsidiaries</b></font><br>
<font size="2" face="serif"><b>Notes to Unaudited Pro Forma Statement of Operations</b></font></p>  <table width="100%" cellspacing="0" cellpadding="0" border="0">
<tr valign="top">
<td align="left" width="3%"><font size="2" face="serif">&nbsp;</font></td>
<td align="left" width="3%"><font size="2" face="serif">a)</font></td>
<td align="left"><font size="2" face="serif">Reflects the elimination of operating results of the oral liquids pharmaceutical business for the three months ended June 30, 2006, excluding intercompany corporate charges of $819,000 and intercompany interest expense of $926,000.</font></td>
</tr>
</table>
<p align="center">&nbsp;</p>
<p align="center">&nbsp;</p>
<p align="center">&nbsp;</p>
<p align="center">&nbsp;</p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>

<p align="center"><font size="2" face="serif"><b>Savient Pharmaceuticals, Inc.
      and Subsidiaries</b></font><br>
<font size="2" face="serif"><b>Unaudited Pro Forma Consolidated
      Statements of Operations</b></font><br>
<font size="2" face="serif"><b>(In thousands, except per share data)</b></font><br>
<font size="2" face="serif"><b>For the Year Ended December 31, 2005<br>
(Unaudited)</b></font></p>
<table width="100%" cellspacing="0" cellpadding="0" align="center" border="0">
<tr valign="top" bgcolor="#FFFFFF">
<td align="left" valign="bottom"></td>
<td width="1%" align="left" valign="bottom"></td>
<td width="10%" align="center" valign="bottom"><font size="2" face="serif"><font face="serif" size="1">As Reported</font></font></td>
<td width="2%" align="left" valign="bottom"></td>
<td width="1%" align="right" valign="bottom"></td>
<td width="10%" align="center" valign="bottom"><font size="2" face="serif"><font face="serif" size="1">Business <br>
  Disposition (a)</font></font></td>
<td width="2%" align="left" valign="bottom"></td>
<td width="2%" align="left" valign="bottom"></td>
<td width="10%" align="center" valign="bottom"><font size="2" face="serif"><font face="serif" size="1">Pro Forma <br>
  Adjusted</font></font></td>
<td width="1%" align="left">&nbsp;</td>
<td width="2%" align="left">&nbsp;</td> </tr>
<tr valign="top">
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">
  <hr size="1" noshade></td>
<td align="left">
  <hr size="1" noshade></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">
  <hr size="1" noshade></td>
<td align="left">
  <hr size="1" noshade></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">
  <hr size="1" noshade></td>
<td align="left">
  <hr size="1" noshade></td>
<td align="left">&nbsp;</td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#FFFFFF">
<td align="left"><font size="2" face="serif">Revenues:</font></td>
<td align="left"></td>
<td align="left"></td>
<td align="left"></td>
<td align="right"></td>
<td align="left"></td>
<td align="left"></td>
<td align="left"></td>
<td align="left"></td>
<td align="left">&nbsp;</td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#ffffff">
<td align="left"><div style="margin-left: 6%; text-indent: -3%"><font size="2" face="serif">Product
    sales, net</font></div></td>
<td width="1%" align="left"><font size="2" face="serif">$</font></td>
<td width="10%" align="right"><font size="2" face="serif">86,342</font></td>
<td width="2%" align="left"></td>
<td width="1%" align="right"><font size="2" face="serif">$</font></td>
<td width="10%" align="right"><font size="2" face="serif">(38,299</font></td>
<td width="2%" align="left"><font size="2" face="serif">)</font></td>
<td width="2%" align="left"><font size="2" face="serif">$</font></td>
<td width="10%" align="right"><font size="2" face="serif">48,043</font></td>
<td align="left">&nbsp;</td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#FFFFFF">
<td align="left"><div style="margin-left: 6%; text-indent: -3%"><font size="2" face="serif">Royalties</font></div></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">1,377</font></td>
<td align="left"></td>
<td align="right"></td>
<td align="right"><font size="2" face="serif">&#151;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">1,377</font></td>
<td align="left">&nbsp;</td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#ffffff">
<td align="left"><div style="margin-left: 6%; text-indent: -3%"><font size="2" face="serif">Other
    revenues</font></div></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">75</font></td>
<td align="left"></td>
<td align="right"></td>
<td align="right"><font size="2" face="serif">&#151;</font></td>
<td align="left"></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">75</font></td>
<td align="left">&nbsp;</td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top">
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">&nbsp;</td>
  <td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#FFFFFF">
<td align="left"><div style="margin-left: 9%; text-indent: -3%"><font size="2" face="serif">&nbsp;</font></div></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">87,794</font></td>
<td align="left"></td>
<td align="right"></td>
<td align="right"><font size="2" face="serif">(38,299</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">49,495</font></td>
<td align="left">&nbsp;</td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top">
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">&nbsp;</td>
  <td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#FFFFFF">
<td align="left"><font size="2" face="serif">Expenses:</font></td>
<td align="left"></td>
<td align="left"></td>
<td align="left"></td>
<td align="right"></td>
<td align="left"></td>
<td align="left"></td>
<td align="left"></td>
<td align="left"></td>
<td align="left">&nbsp;</td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#ffffff">
<td align="left"><div style="margin-left: 6%; text-indent: -3%"><font size="2" face="serif">Research
    and development</font></div></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">19,583</font></td>
<td align="left"></td>
<td align="right"></td>
<td align="right"><font size="2" face="serif">(1,802</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">17,781</font></td>
<td align="left">&nbsp;</td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#FFFFFF">
<td align="left"><div style="margin-left: 6%; text-indent: -3%"><font size="2" face="serif">Selling
    and marketing</font></div></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">21,449</font></td>
<td align="left"></td>
<td align="right"></td>
<td align="right"><font size="2" face="serif">(6,675</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">14,774</font></td>
<td align="left">&nbsp;</td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#ffffff">
<td align="left"><div style="margin-left: 6%; text-indent: -3%"><font size="2" face="serif">General
    and administrative</font></div></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">26,002</font></td>
<td align="left"></td>
<td align="right"></td>
<td align="right"><font size="2" face="serif">(3,061</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">22,941</font></td>
<td align="left">&nbsp;</td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#FFFFFF">
<td align="left"><div style="margin-left: 6%; text-indent: -3%"><font size="2" face="serif">Cost
    of sales</font></div></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">17,319</font></td>
<td align="left"></td>
<td align="right"></td>
<td align="right"><font size="2" face="serif">(12,067</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">5,252</font></td>
<td align="left">&nbsp;</td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#ffffff">
<td align="left"><div style="margin-left: 6%; text-indent: -3%"><font size="2" face="serif">Amortization
    of intangibles</font></div></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">4,050</font></td>
<td align="left"></td>
<td align="right"></td>
<td align="right"><font size="2" face="serif">(4,050</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">&#151;</font></td>
<td align="left">&nbsp;</td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#FFFFFF">
<td align="left"><div style="margin-left: 6%; text-indent: -3%"><font size="2" face="serif">Commission
    and royalties</font></div></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">5,094</font></td>
<td align="left"></td>
<td align="right"></td>
<td align="right"><font size="2" face="serif">&#151;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">5,094</font></td>
<td align="left">&nbsp;</td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top">
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">&nbsp;</td>
  <td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#ffffff">
<td align="left"><div style="margin-left: 9%; text-indent: -3%"><font size="2" face="serif">&nbsp;</font></div></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">93,497</font></td>
<td align="left"></td>
<td align="right"></td>
<td align="right"><font size="2" face="serif">(27,655</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">65,842</font></td>
<td align="left">&nbsp;</td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top">
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">&nbsp;</td>
  <td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#FFFFFF">
<td align="left"><font size="2" face="serif">Operating loss</font></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">(5,703</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="right"></td>
<td align="right"><font size="2" face="serif">(10,644</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">(16,347</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#ffffff">
<td align="left"><div style="margin-left: 6%; text-indent: -3%"><font size="2">Investment income (expense), net</font></div></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">1,265</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">(201</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">1,064</font></td>
<td align="left">&nbsp;</td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#FFFFFF">
<td align="left"><div style="margin-left: 6%; text-indent: -3%"><font size="2" face="serif">Other income, net</font></div></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">13,094</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right"></td>
<td align="right"><font size="2" face="serif">&#151;</font></td>
<td align="left"></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">13,094</font></td>
<td align="left">&nbsp;</td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top">
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">&nbsp;</td>
  <td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#ffffff">
<td align="left"><font size="2" face="serif">Income (loss) before income taxes</font></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">8,656</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right"></td>
<td align="right"><font size="2" face="serif">(10,845</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">(2,189</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#FFFFFF">
<td align="left"><font size="2" face="serif">Income tax expense</font></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">2,629</font></td>
<td align="left"></td>
<td align="right"></td>
<td align="right"><font size="2" face="serif">(2,314</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">315</font></td>
<td align="left">&nbsp;</td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top">
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">
    <hr size="1" noshade>
  </td>
  <td align="left">&nbsp;</td>
  <td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#ffffff">
<td align="left"><font size="2" face="serif">Net income (loss) from continuing
    operations</font></td>
<td align="left"><font size="2" face="serif">$</font></td>
<td align="right"><font size="2" face="serif">6,027</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">$</font></td>
<td align="right"><font size="2" face="serif">(8,531</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="left"><font size="2" face="serif">$</font></td>
<td align="right"><font size="2" face="serif">(2,504</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top">
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left">
    <hr size="2" noshade>
  </td>
  <td align="left">
    <hr size="2" noshade>
  </td>
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left">
    <hr size="2" noshade>
  </td>
  <td align="left">
    <hr size="2" noshade>
  </td>
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left">
    <hr size="2" noshade>
  </td>
  <td align="left">
    <hr size="2" noshade>
  </td>
  <td align="left">&nbsp;</td>
  <td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#FFFFFF">
<td align="left"><font size="2" face="serif">Basic earnings (loss) per common
    share from continuing operations</font></td>
<td align="left"><font size="2" face="serif">$</font></td>
<td align="right"><font size="2" face="serif">0.10</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right"></td>
<td align="left"></td>
<td align="left"></td>
<td align="left"><font size="2" face="serif">$</font></td>
<td align="right"><font size="2" face="serif">(0.04</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top">
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left">
    <hr size="2" noshade>
  </td>
  <td align="left">
    <hr size="2" noshade>
  </td>
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left">&nbsp;  </td>
  <td align="left">&nbsp;  </td>
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left">
    <hr size="2" noshade>
  </td>
  <td align="left">
    <hr size="2" noshade>
  </td>
  <td align="left">&nbsp;</td>
  <td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#ffffff">
<td align="left"><font size="2" face="serif">Diluted earnings (loss) per common
    share from continuing operations</font></td>
<td align="left"><font size="2" face="serif">$</font></td>
<td align="right"><font size="2" face="serif">0.10</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right"></td>
<td align="left"></td>
<td align="left"></td>
<td align="left"><font size="2" face="serif">$</font></td>
<td align="right"><font size="2" face="serif">(0.04</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top">
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left">
    <hr size="2" noshade>
  </td>
  <td align="left">
    <hr size="2" noshade>
  </td>
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left">&nbsp; </td>
  <td align="left">&nbsp; </td>
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left">
    <hr size="2" noshade>
  </td>
  <td align="left">
    <hr size="2" noshade>
  </td>
  <td align="left">&nbsp;</td>
  <td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#FFFFFF">
<td align="left"><div style="margin-left: 3%; text-indent: -3%"><font size="2" face="serif">Weighted
      average number of common and common </font><br>
      <font size="2" face="serif"> equivalent shares:</font></div></td>
<td align="left"></td>
<td align="left"></td>
<td align="left"></td>
<td align="right"></td>
<td align="left"></td>
<td align="left"></td>
<td align="left"></td>
<td align="left"></td>
<td align="left">&nbsp;</td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#FFFFFF">
<td align="left"><div style="margin-left: 6%; text-indent: -3%"><font size="2" face="serif">Basic</font></div></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">60,837</font></td>
<td align="left"></td>
<td align="right"></td>
<td align="left"></td>
<td align="left"></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">60,837</font></td>
<td align="left">&nbsp;</td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#ffffff">
<td align="left"><div style="margin-left: 6%; text-indent: -3%"><font size="2" face="serif">Diluted</font></div></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">61,356</font></td>
<td align="left"></td>
<td align="right"></td>
<td align="left"></td>
<td align="left"></td>
<td align="left"></td>
<td align="right"><font size="2" face="serif">61,356</font></td>
<td align="left">&nbsp;</td>
<td align="left">&nbsp;</td>
</tr>
</table>
<p align="center">&nbsp;</p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>

<p>&nbsp;</p>
<p align="center"><font size="2" face="serif"><b>Savient Pharmaceuticals, Inc.
      and Subsidiaries</b></font><br>
<font size="2" face="serif"><b>Notes to Unaudited Pro Forma Statement of Operations</b></font></p>  <table width="100%" cellspacing="0" cellpadding="0" border="0">
<tr valign="top">
<td align="left" width="3%"><font size="2" face="serif">&nbsp;</font></td>
<td align="left" width="3%"><font size="2" face="serif">a)</font></td>
<td align="left"><font size="2" face="serif">Reflects the elimination of operating results of the oral liquids pharmaceutical business for the year ended December 31, 2005, excluding intercompany corporate charges of $3,340,000 and intercompany interest expense of $3,768,000.</font></td>
</tr>
</table>
<p align="center">&nbsp;</p>
<p align="center">&nbsp;</p>
<p align="center">&nbsp;</p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>

<p>&nbsp;</p>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exhibits</font></p>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;See Exhibit Index attached hereto.</font></p>
<p align="center">&nbsp;</p>
<p align="center">&nbsp;</p>
<p align="center">&nbsp;</p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>

<p>&nbsp;</p>
<p align="center"><font size="2" face="serif">SIGNATURE</font></p>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant
    to the requirements of the Securities Exchange Act of 1934, the Registrant
    has duly caused this report to be signed on its behalf by the undersigned
    hereunto duly authorized.</font></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="50%">&nbsp;</td>
    <td colspan="2"><font size="2" face="serif">SAVIENT PHARMACEUTICALS, INC.</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2" face="serif">Date: August 10, 2006</font></td>
    <td><font size="2" face="serif">By:</font></td>
    <td><font size="2" face="serif"><u>/s/ Philip K. Yachmetz</u></font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td><font size="2" face="serif">Philip K. Yachmetz<br>
    Executive Vice President, Chief Business Officer</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<p align="left"><font size="2" face="serif"></font></p>
<p align="center">&nbsp;</p>
<p align="center">&nbsp;</p>
<p align="center">&nbsp;</p>
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<p>&nbsp;</p>
<p align="center"><font size="2" face="serif">EXHIBIT INDEX</font></p>
<table width="100%" cellspacing="0" cellpadding="0" align="center" border="0">
<tr valign="top" bgcolor="#FFFFFF">
<td width="15%" align="left"><font size="2" face="serif"><u>Exhibit No.</u></font></td>
<td width="58%" align="left"><font size="2" face="serif"><u>Description</u></font></td>
</tr>
<tr valign="top">
<td></td>
<td>&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#ffffff">
<td align="left"><font size="2" face="serif">2.1</font></td>
<td align="left"><font size="2" face="serif">Purchase and Sale Agreement dated as of August 4, 2006, among Savient Pharmaceuticals, Inc. and Savient Pharma Holdings, Inc., on the one hand, and INGLEBY (1705) Limited, on the other hand*</font></td>
</tr>
</table>
<p align="left"><font size="2" face="serif">* The exhibits and schedules to this agreement have been omitted from this filing pursuant to Item 601(b)(2) of Regulation S-K.  Savient will furnish copies of any of the exhibits and schedules to the U.S. Securities and Exchange Commission upon request.</font></p>
<p align="center">&nbsp;</p>
<p align="center">&nbsp;</p>
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[{"type": "8-K", "sequence": "1", "filename": "b414427_8k.htm", "description": "FORM 8-K", "secsgml_size_bytes": 128447}]
{"company-data": {"conformed-name": "SAVIENT PHARMACEUTICALS INC", "cik": "0000722104", "assigned-sic": "2833", "irs-number": "133033811", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-15313", "film-number": "061022072"}, "business-address": {"street1": "ONE TOWER CENTER", "city": "EAST BRUNSWICK", "state": "NJ", "zip": "08816", "phone": "7324189300"}, "mail-address": {"street1": "ONE TOWER CENTER", "city": "EAST BRUNSWICK", "state": "NJ", "zip": "08816"}, "former-company": {"former-conformed-name": "BIO TECHNOLOGY GENERAL CORP", "date-changed": "19920703"}}
Prepared and filed by St Ives Financial
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
_________________________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):  August 4, 2006
Savient Pharmaceuticals,
    Inc.
(Exact Name
    of Registrant as Specified in Charter)
Delaware
0-15313
13-3033811
(State or Other Juris-
diction of Incorporation
(Commission
File Number)
(IRS Employer
Identification No.)
One Tower Center, 14th Floor
East Brunswick, New Jersey
08816
(Address of Principal Executive Offices)
(Zip Code)
Registrant's telephone number, including area code:  (732) 418-9300
Not applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (
see
General Instruction A.2. below):
Written communications pursuant
to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 1.01  Entry into a Material Definitive Agreement
See Item 2.01, which is incorporated herein by reference.
Item 2.01.  Completion of Acquisition or Disposition of Assets
On August 4, 2006, Savient Pharmaceuticals, Inc. ("Savient") completed the sale of its oral liquid pharmaceuticals business (the "Rosemont Business") for a purchase price of $176,000,000 in cash pursuant to a Purchase and Sale Agreement dated as of the same date (the "Purchase Agreement"), among Savient and Savient Pharma Holdings, Inc., a wholly owned subsidiary of Savient (the "Seller"), on the one hand, and INGLEBY (1705) Limited, on the other hand (the "Buyer").  The transactions contemplated by the Purchase Agreement are referred to as the "Rosemont Sale."  The Buyer is a company formed by Close Brothers Private Equity LLP for the purpose of
consummating the Rosemont Sale.
Rosemont Pharmaceuticals Limited ("Rosemont") is a wholly owned subsidiary of Acacia Biopharma Limited ("Acacia"),
    which is a wholly owned subsidiary of the Seller. Under the Purchase Agreement,
    the Buyer purchased all of the issued share capital of Acacia and the following
    assets: (i) patents and patent applications relating to tamoxifen citrate
    and simvastatin, (ii) trademarks and trademark applications relating to Rosemont
    and Soltamox™, (iii) the new drug application and the investigational new drug application filed with the U.S. Food and Drug Administration for Soltamox™, (iv) the Seller's rights under agreements with Cytogen relating to Soltamox and (v)
Savient's rights relating to confidentiality and non-solicitation of Rosemont's employees under confidentiality agreements with prospective buyers of the Rosemont Business.  The Buyer would assume all the liabilities and obligations of the Savient Companies pursuant to or arising out of the agreements described in items (iv) and (v).
Under the Purchase Agreement, Savient has guaranteed the performance by the Seller of all of its obligations.
Under
    the Purchase Agreement, the Seller is obligated to indemnify the Buyer for
    any breach of representation or warranty of the Seller or Savient and any
    failure of the Seller or Savient to perform any covenant. There are no contractual
    limitations on these indemnification obligations arising out of breaches
    of covenants or breaches of the representations and warranties relating to
    corporate organization, qualification and power, capitalization, authority
    and the validity of the Seller's title to the assets being acquired by the Buyer.  The Seller's indemnification obligations relating to breaches of representations and warranties other than those listed in the preceding sentence are subject to the
following limitations:
•
Time Period for Claims
.  The representations and warranties survive until March 31, 2008, except that the tax representations would survive until the expiration of the applicable statute of limitations.
•
Deductible
.  The Seller is liable for the portion of damages from indemnification claims relating to breaches of representations and warranties only to the extent the aggregate liability exceeds $1.0 million.
•
Maximum Liability
.  The maximum aggregate liability of the Seller for all damages from indemnification claims relating to breaches of representations and warranties is $52.8 million.
The foregoing description of the Purchase Agreement is not complete and is qualified in its entirety by reference to the full text of the actual agreement, which is filed as an exhibit to this Form 8-K.
Item 9.01.  Financial Statements and Exhibits
(b)
Pro Forma Financial Information
UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS FOR
SAVIENT PHARMACEUTICALS, INC.
The unaudited pro forma consolidated financial information shown below is based on audited and unaudited historical financial statements of Savient. The unaudited pro forma financial information presented reflects the estimated pro forma effect of the Rosemont Sale.
The
    unaudited pro forma consolidated statements are as follows:
•
An unaudited pro forma consolidated balance sheet as of June 30, 2006, giving effect to the disposition as if it occurred on June 30, 2006.
•
An unaudited pro forma consolidated statement of operations for the six months ended June 30, 2006, giving effect to the disposition as if it occurred on January 1, 2006.
•
An unaudited pro forma consolidated statement of operations for the three months ended June 30, 2006, giving effect to the disposition as if it occurred on January 1, 2006.
•
An unaudited pro forma consolidated statement of operations for the year ended December 31, 2005, giving effect to the disposition as if it occurred on January 1, 2005.
The
    unaudited pro forma consolidated financial statements include specific assumptions
    and adjustments related to the Rosemont Sale. These pro forma adjustments
    have been made to illustrate the anticipated financial effect of the Rosemont
    Sale. The adjustments are based upon available information and assumptions
    that Savient believes are reasonable as of the date of this filing. However,
    actual adjustments may differ materially from the information presented.
    Some decisions regarding the use of sale proceeds have not yet been made.
    Assumptions underlying the pro forma adjustments are described in the accompanying
    notes, which should be read in conjunction with the unaudited pro forma consolidated
    financial statements. These pro forma consolidated statements of operation
    do not include the anticipated net gain on disposition of $46.7 million.
    The pro forma financial statements, including notes thereto, should be read
    in
    conjunction with the historical financial statements of Savient included
    in our Annual Report on Form 10-K for the year ended December 31, 2005, and
    the unaudited financial statements filed in our Quarterly Report on Form
10-Q as of June 30, 2006 and for the three and six months ended June 30, 2006.
The unaudited pro forma consolidated financial information presented herein is for informational purposes only. It is not intended to represent or be indicative of the consolidated results of operations or financial position that would have been reported had the Rosemont Sale been completed as of the dates presented. The information is not representative of future results of operations or financial position.
Savient Pharmaceuticals, Inc.
      and Subsidiaries
Unaudited Pro Forma Consolidated
      Balance Sheet
(In thousands, except share
      data)
As of June 30, 2006
(Unaudited)
As Reported
June 30, 2006
Business
Disposition (a)
Pro Forma
Adjustments
Pro Forma
June 30, 2006
ASSETS
Current Assets:
Cash
    and cash equivalents
$
89,362
$
—
$
176,000
(b)
$
262,989
(2,373
)
(c)
Short-term
    investments
150
—
150
Accounts
    receivable, net
11,948
(5,919
)
—
6,029
Notes
    receivable
630
—
—
630
Inventories,
    net
8,677
(2,951
)
—
5,726
Prepaid
    expenses and other current assets
5,117
(711
)
1,590
(d)
5,996
Total
    current assets
115,884
(9,581
)
175,217
281,520
Property and equipment, net
7,147
(5,795
)
—
1,352
Goodwill
40,121
(40,121
)
—
—
Other intangibles, net
65,613
(65,613
)
—
—
Other assets (including restricted cash of $1,280)
3,522
—
—
3,522
Total
    assets
$
232,287
$
(121,110
)
$
175,217
$
286,394
LIABILITIES AND STOCKHOLDERS EQUITY
Current Liabilities:
Accounts
    payable
$
6,695
$
(3,716
)
$
32,497
(e)
35,476
Other
    current liabilities
13,202
(3,394
)
2,688
(f)
12,496
Deferred
    revenues
1,973
—
(1,973
)
(g)
—
Total
    current liabilities
21,870
(7,110
)
33,212
47,972
Deferred income taxes
19,728
(19,728
)
—
—
Commitments and contingencies
—
—
—
—
Stockholders' Equity:
Preferred
    stock – $.01 par value; 4,000,000 shares authorized; no shares issued
—
—
—
—
Common
      stock – $.01 par value; 150,000,000 shares authorized; 61,754,000
    shares issued and outstanding
617
—
—
617
Additional
    paid in capital
222,346
—
—
222,346
Accumulated
    deficit
(34,299
)
(92,160
)
140,986
(h)
15,546
1,019
(i)
Accumulated
    other comprehensive income
2,025
(2,112
)
—
(87
)
Total
    stockholders' equity
190,689
(94,272
)
142,005
238,422
Total
    liabilities and stockholders' equity
$
232,287
$
(121,110
)
$
175,217
$
286,394
Savient Pharmaceuticals, Inc.
      and Subsidiaries
Notes to Unaudited Pro Forma Consolidated Balance Sheet
a)
Reflects the balance sheet of the disposed oral liquid pharmaceutical business as of June 30, 2006, excluding cash and cash equivalents.
b)
Reflects cash proceeds of $176,000,000 received at the closing of the sale of the oral liquid pharmaceutical business.
c)
Cash amounting to $2,373,000 was retained by the disposed entity to cover certain costs including working capital adjustments, outstanding checks, retention bonuses, insurance expenses and taxes.
d)
Tax refund due from U.K. taxing authorities.
e)
Estimated tax due related to the oral liquid pharmaceutical business disposition.
f)
Estimated disposition expenses incurred
    after June 30, 2006 related to the sale of the oral liquid pharmaceutical
    business.
g)
The Company had previously deferred an upfront licensing fee related to Soltamox. At the closing of the sale of the oral liquid pharmaceutical business, all revenue previously deferred attributable to the Soltamox license will be recognized and included in the gain on sale of the oral liquid pharmaceutical business since the Soltamox license was included as part of the oral liquid pharmaceutical business disposition.
h)
Cumulative impact of pro forma adjustments which result in a pro forma net gain on the sale of the oral liquid pharmaceutical business of approximately $46.7 million.
i)
Disposition expenses incurred through June 30, 2006 related to the sale of the oral liquid pharmaceutical business. These expenses will be reclassified to be included in the gain on sale of the oral liquid pharmaceutical business.
Savient Pharmaceuticals, Inc.
      and Subsidiaries
Unaudited Pro Forma Consolidated Statements of
Operations
(In thousands, except per share data)
For the Six Months Ended June 30, 2006
(Unaudited)
As Reported
Business
Disposition (a)
Pro Forma
Adjusted
Revenues:
Product
    sales, net
$
42,807
$
(19,544
)
$
23,263
Other
    revenues
100
—
100
42,907
(19,544
)
23,363
Expenses:
Research
    and development
8,805
(1,353
)
7,452
Selling
    and marketing
8,408
(3,439
)
4,969
General
    and administrative
16,184
(1,192
)
14,992
Cost
    of sales
8,871
(6,652
)
2,219
Amortization
    of intangibles
2,025
(2,025
)
—
Commission
    and royalties
5
—
5
44,298
(14,661
)
29,637
Operating loss
(1,391
)
(4,883
)
(6,274
)
Investment
    income
2,063
(257
)
1,806
Other
    income, net
8,297
—
8,297
Income before income taxes
8,969
(5,140
)
3,829
Income
    tax expense
1,749
(1,631
)
118
Net income
$
7,220
$
(3,509
)
$
3,711
Basic earnings per common share
$
0.12
$
0.06
Diluted earnings per common share
$
0.12
$
0.06
Weighted
      average number of common and common
equivalent shares:
Basic
61,286
61,286
Diluted
62,216
62,216
Savient Pharmaceuticals, Inc.
      and Subsidiaries
Notes to Unaudited Pro Forma Statement of Operations
a)
Reflects the elimination of operating results of the oral liquids pharmaceutical business for the six months ended June 30, 2006, excluding intercompany corporate charges of $1,476,000 and intercompany interest expense of $1,815,000.
Back to Contents
Savient Pharmaceuticals, Inc.
      and Subsidiaries
Unaudited Pro Forma Consolidated
      Statements of Operations
(In thousands, except per share
      data)
For the Three Months Ended June 30, 2006
(Unaudited)
As Reported
Business
Disposition (a)
Pro Forma
Adjusted
Revenues:
Product
    sales, net
$
23,901
$
(10,141
)
$
13,760
Other
    revenues
100
—
100
24,001
(10,141
)
13,860
Expenses:
Research
    and development
4,818
(652
)
4,166
Selling
    and marketing
3,752
(1,616
)
2,136
General
    and administrative
7,474
(663
)
6,811
Cost
    of sales
5,016
(3,655
)
1,361
Amortization
    of intangibles
1,012
(1,012
)
—
Commission
    and royalties
4
—
4
22,076
(7,598
)
14,478
Operating income (loss)
1,925
(2,543
)
(618
)
Investment
    income
1,040
(123
)
917
Other
    income, net
465
—
465
Income before income taxes
3,430
(2,666
)
764
Income
    tax expense
188
(173
)
15
Net income
$
3,242
$
(2,493
)
$
749
Basic earnings per common share
$
0.05
$
0.01
Diluted earnings per common share
$
0.05
$
0.01
Weighted
      average number of common and common
equivalent shares:
Basic
61,358
61,358
Diluted
62,456
62,456
Savient Pharmaceuticals, Inc.
      and Subsidiaries
Notes to Unaudited Pro Forma Statement of Operations
a)
Reflects the elimination of operating results of the oral liquids pharmaceutical business for the three months ended June 30, 2006, excluding intercompany corporate charges of $819,000 and intercompany interest expense of $926,000.
Savient Pharmaceuticals, Inc.
      and Subsidiaries
Unaudited Pro Forma Consolidated
      Statements of Operations
(In thousands, except per share data)
For the Year Ended December 31, 2005
(Unaudited)
As Reported
Business
Disposition (a)
Pro Forma
Adjusted
Revenues:
Product
    sales, net
$
86,342
$
(38,299
)
$
48,043
Royalties
1,377
—
1,377
Other
    revenues
75
—
75
87,794
(38,299
)
49,495
Expenses:
Research
    and development
19,583
(1,802
)
17,781
Selling
    and marketing
21,449
(6,675
)
14,774
General
    and administrative
26,002
(3,061
)
22,941
Cost
    of sales
17,319
(12,067
)
5,252
Amortization
    of intangibles
4,050
(4,050
)
—
Commission
    and royalties
5,094
—
5,094
93,497
(27,655
)
65,842
Operating loss
(5,703
)
(10,644
)
(16,347
)
Investment income (expense), net
1,265
(201
)
1,064
Other income, net
13,094
—
13,094
Income (loss) before income taxes
8,656
(10,845
)
(2,189
)
Income tax expense
2,629
(2,314
)
315
Net income (loss) from continuing
    operations
$
6,027
$
(8,531
)
$
(2,504
)
Basic earnings (loss) per common
    share from continuing operations
$
0.10
$
(0.04
)
Diluted earnings (loss) per common
    share from continuing operations
$
0.10
$
(0.04
)
Weighted
      average number of common and common
equivalent shares:
Basic
60,837
60,837
Diluted
61,356
61,356
Savient Pharmaceuticals, Inc.
      and Subsidiaries
Notes to Unaudited Pro Forma Statement of Operations
a)
Reflects the elimination of operating results of the oral liquids pharmaceutical business for the year ended December 31, 2005, excluding intercompany corporate charges of $3,340,000 and intercompany interest expense of $3,768,000.
(c)      Exhibits
See Exhibit Index attached hereto.
SIGNATURE
Pursuant
    to the requirements of the Securities Exchange Act of 1934, the Registrant
    has duly caused this report to be signed on its behalf by the undersigned
    hereunto duly authorized.
SAVIENT PHARMACEUTICALS, INC.
Date: August 10, 2006
By:
/s/ Philip K. Yachmetz
Philip K. Yachmetz
Executive Vice President, Chief Business Officer
EXHIBIT INDEX
Exhibit No.
Description
2.1
Purchase and Sale Agreement dated as of August 4, 2006, among Savient Pharmaceuticals, Inc. and Savient Pharma Holdings, Inc., on the one hand, and INGLEBY (1705) Limited, on the other hand*
* The exhibits and schedules to this agreement have been omitted from this filing pursuant to Item 601(b)(2) of Regulation S-K.  Savient will furnish copies of any of the exhibits and schedules to the U.S. Securities and Exchange Commission upon request.