Lufenuron

Business Editors

GREENSBORO, N.C.--(BUSINESS WIRE)--March 19, 2002

Citing numerous violations, including trademark infringement and false advertising, Novartis Animal Health US, Inc. has filed a lawsuit against PetMed Express Inc., Drs. Fosters & Smith, Inc., and Savemax, Inc., online retailers of pet-care products.

The suit challenges those retailers' unlawful sale of foreign versions of pet medicines sold under the SENTINEL(R)(lufenuron/milbemycin oxime) FLAVOR TABS(R)and INTERCEPTOR(R)(milbemycin oxime) FLAVOR TABS(R)brands.

"We felt compelled to take legal action in order to protect the integrity of our products," said Jim Guidone, CEO of Novartis Animal Health US. "The unlawful actions of PetMed Express, Savemax, and Drs. Fosters & Smith undermine the expertise and authority of veterinarians. They are also likely to confuse our customers and may cause them to give their pets incorrect doses of these important medicines," Guidone pointed out.

According to the complaint, which was filed on March 19, 2002 with the United States District Court for the Southern District of Florida, Novartis Animal Health US alleges that PetMed Express and the other defendants are illegally selling pet medications in the United States that were made specifically for the Australian and other foreign markets. These foreign medicines are not approved by the U.S Food and Drug Administration (FDA) for sale in the United States. In fact they are materially different from Novartis Animal Health US products in a number of ways, including in the formulation of the products and in their instructions for use. The sale of these foreign medicines in the United States is an express violation of United States drug laws.

Novartis Animal Health US, which dispenses its products only where there is a valid veterinarian-client relationship, believes that pet owners are confusing the foreign medications sold by PetMed Express and the other defendants with the FDA-approved products sold by Novartis Animal Health US and its authorized distributors in the United States.

Furthermore, although the products have similar packaging, the foreign medicines do not indicate that they must be prescribed by a veterinarian, do not have valid poison control numbers, and lack information on how consumers can contact Novartis Animal Health US with questions. They are also missing many of the statements required by FDA rules and regulations for pet medicines sold in the United States.

"We believe that this lawsuit against PetMed Express is in the best interest of both veterinarians and pet owners across America, as well as the companion animals we strive to protect," Guidone stressed. "We are looking forward to a swift and fair resolution to this matter," he added.

Novartis Animal Health US produces and sells leading brands of pet medicines in the United States. These products, including INTERCEPTOR(R) (milbemycin oxime) FLAVOR TABS(R) and SENTINEL(R) (milbemycin oxime - lufenuron) FLAVOR TABS(R), are approved by the FDA and can only be purchased by or on the order of a licensed veterinarian.

Novartis Animal Health US, headquartered in Greensboro, North Carolina, researches, develops and commercializes leading animal treatments that meet the needs of pet owners, farmers and veterinarians. It is a subsidiary of Novartis AG, headquartered in Basel, Switzerland.

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