Press Release

AAIPHARMA AND MALLINCKRODT FORM PHARMACEUTICAL OUTSOURCING ALLIANCE

Alliance to deliver one-stop drug development and commercial manufacturing solution for the pharmaceutical and biotechnology industries

Wilmington, N.C. and St. Louis, November 29, 2006 -- AAIPharma Inc. and Mallinckrodt Pharmaceuticals Outsourcing announced today that they have signed a letter of understanding establishing a pharmaceutical outsourcing alliance that will deliver worldwide complementary services from drug development to high-volume commercial manufacturing. T he two companies will work cooperatively to provide a one-stop drug development solution for the pharmaceutical and biotechnology industries.

AAIPharma has a twenty five-year heritage of scientific excellence in analytical development, and significant expertise in formulation development, bioanalysis and clinical trials.  Mallinckrodt has extensive knowledge and capabilities in technical transfer for manufacturing scale-up and full-scale commercial production.  Together, both companies will create value for customers by utilizing collective scientific and development skills.

“Our extensive capabilities in manufacturing management coupled with AAIPharma’s long-standing strength will bring exceptional service and value to a broad spectrum of pharmaceutical companies,” said Vince Kaiman, vice president and general manager of Mallinckrodt Pharmaceuticals – a division of Tyco Healthcare.

Taking a product from early-phase drug formulation to high-volume commercial manufacturing can be challenging as it involves a number of steps as well as complex technical transfers.  The alliance is designed to seamlessly meet the needs of diverse clientele ranging from established companies to emerging and virtual businesses. Ultimately, this collaboration is focused on providing responsive service to ensure customers’ needs are met and that their products are delivered on-time and within budget.

“We are delighted to be collaborating with Mallinckrodt,” stated Vito Mangiardi, AAIPharma president of North American Operations.  “This alliance significantly strengthens our ability to meet the commercial manufacturing needs of our customers worldwide.  Combining AAIPharma and Mallinckrodt’s expertise will create competitive advantages for both companies and expand respective business opportunities.”

About AAIPharma

AAIPharma Inc. is a global provider of product development and support services to the pharmaceutical, biotechnology and medical device industries.  From a single test through a range of integrated service offerings, we create value to an industry in search of productivity and innovation.  For more information on the Company, please visit AAIPharma's website at www.aaipharma.com.

About Mallinckrodt Pharmaceuticals Outsourcing

Mallinckrodt Pharmaceuticals Outsourcing is a fully integrated global business focused on forming long-term strategic partnerships.  The Company specializes in contract manufacturing high-quality, solid dose and oral liquid finished products.  Mallinckrodt Pharmaceuticals Outsourcing takes pride in its exceptional customer service standards and leverages the knowledge and experience of more than 3,000 professionals who are part of our organization.  For more information, go to the Company’s website at www.pharmaceuticals.mallinckrodt.com/Outsourcing.

About Tyco Healthcare/Mallinckrodt

Tyco Healthcare's Mallinckrodt division offers a diverse line of imaging and pharmaceutical products that diagnose disease and relieve pain.  As a major business segment of Tyco International Ltd., Tyco Healthcare manufactures, distributes and services an extensive product line including disposable medical supplies, monitoring equipment, innovative wound closure products, advanced surgical devices, medical instruments and bulk analgesic pharmaceuticals.  With industry-leading brand names such as Autosuture, Kendall, Mallinckrodt, Nellcor, Puritan Bennett, Syneture and Valleylab, Tyco Healthcare products are found in virtually every healthcare setting.

Contacts:
Luke Heagle
AAIPharma Inc.
Corporate Communication
T: +1 910 254 7066
E: lucas.heagle@aaipharma.com 

JoAnna Schooler
Tyco Healthcare/Mallinckrodt
T: +1 314 654 3543
E: JoAnna.Schooler@tycohealthcare.com 

Anna Munoz
Gibbs & Soell, Inc.
Public Relations
T: +1 919 870 5718
E: amunoz@gibbs-soell.com 

Rowan Unsworth
Gibbs & Soell Public Relations
Zurich, Switzerland
T: +41 (0)44 205 55 65
E: runsworth@gibbs-soell.com