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Excellent Results in a Transformational Year for Shire; Core Product Sales up 25%

February 19, 2010

DUBLIN, February 19, 2010 /PRNewswire-FirstCall/ — Shire plc (LSE: SHP,
NASDAQ: SHPGY) the global specialty biopharmaceutical company, announces
results for the year to December 31, 2009.

    Financial Highlights

                                     Full Year 2009(1)        Q4 2009(1)
    Product sales                  $2,694 million     -2% $777 million   +10%
    Product sales from core
    products(2)                    $2,067 million    +25% $585 million   +36%
    Total revenues                 $3,008 million      0% $893 million   +17%
    Non GAAP operating income        $889 million     -7% $313 million   +30%
    US GAAP operating income         $620 million    +51% $268 million   +39%
    Non GAAP diluted earnings per
    ADS                                     $3.49    -10%        $1.11    +9%
    US GAAP diluted earnings per
    ADS                                     $2.69   +214%        $0.94   +20%

These results include the effect of a change in best estimate of the
Medicaid rebate liability for ADDERALL XR, which increased fourth quarter
product sales by $98 million, and fourth quarter Non GAAP diluted earnings
per American Depositary Share (“ADS”) by 32 cents. Product sales excluding
this change in best estimate would have been $2,596 million for the year to
December 31, 2009 and $679 million for the fourth quarter. Non GAAP diluted
earnings per ADS excluding this change in best estimate would have been $3.17
for the year to December 31, 2009 and 79 cents for the fourth quarter. For
further details see pages 9 to 10 and 26.

(1) Percentages compare to equivalent 2008 periods.

(2) Core products represent Shire’s products excluding ADDERALL XR.

Angus Russell, Chief Executive Officer, commented:

“In this challenging and transformational year for Shire, I believe these
excellent results reflect the success of our focused strategy and business
model.

Strong fourth quarter sales growth of 36% from our core product
portfolio, supported by our increasing international reach, has contributed
significantly to our full year Non GAAP diluted earnings per ADS of $3.49.
Our recent decision to lower our best estimate of the Medicaid sales rebates
for ADDERALL XR contributed 32 cents to these earnings, which was not
previously anticipated in our guidance framework.

Our growth prospects remain excellent and our core product portfolio
currently has robust exclusivity protection. We have launched INTUNIV
successfully in the US, we plan to launch velaglucerase alfa (VPRIV)
imminently, and there is also an opportunity for REPLAGAL to enter the US
market. We have already seen encouraging signs for the future success of
these three products. REPLAGAL has increased its share in ex-US markets and
we expect this momentum to increase.

VYVANSE, our leading ADHD treatment with a current monthly US ADHD market
share of 13.6%, continues to grow and build strong brand recognition in the
US and has recently been launched in Canada. ADDERALL XR continues to
generate value from both product sales and a considerable royalty stream.

We have also demonstrated a pro-active approach to cost management in
2009 as promised, and have the opportunity to leverage our existing
infrastructure to deliver expanding margins in the future. We enter 2010 with
a strong balance sheet and excellent cash generation. This will allow us to
continue to expand our international presence and consider potential
acquisitions and in-licensing opportunities that fit our strategy.

We look forward to growing revenues and earnings in 2010 and re-iterate
our aspirational target of mid-teen revenue growth on average between 2009
and 2015.”

    FINANCIAL SUMMARY
    Full Year 2009 Unaudited Results

                     Full Year 2009                  Full Year 2008
                                       Non                             Non
            US GAAP   Adjustments     GAAP  US GAAP   Adjustments     GAAP
                 $M            $M       $M       $M            $M       $M
    Revenues  3,008             -    3,008    3,022             -    3,022
    Operating
    income      620           269      889      412           546      958
    Diluted
    earnings
    per ADS   $2.69         $0.80    $3.49    $0.86         $3.00    $3.86

These results include the effect of a change in best estimate of the
Medicaid rebate liability for ADDERALL XR, which increased product sales by
$98 million, and Non GAAP diluted earnings per ADS by 32 cents. Revenues and
Non GAAP diluted earnings per ADS excluding this change in best estimate for
the year to December 31, 2009 would have been $2,910 million and $3.17
respectively. For further details see pages 9-10 and 26.

The Non GAAP financial measures included in the tables above are
explained on pages 27 and 28, and are reconciled to the most directly
comparable financial measures prepared in accordance with US GAAP on pages 22
to 23 and 26 (full year) and pages 24 to 26 (Q4).

    - Product sales from core products were up 25% to $2,067 million (2008:
      $1,653 million). On a constant exchange rate ("CER") basis, which is a
      Non GAAP measure, core product sales were up 28% driven by continued
      strong growth from:

      - VYVANSE(R) (up 58% to $505 million, CER: up 58%);
      - LIALDA(R) / MEZAVANT(R) (up 68% to $236 million, CER: up 69%);
      - ELAPRASE(R) (up 16% to $353 million, CER: up 20%); and
      - REPLAGAL(R) (up 10% to $194 million, CER: up 16%).

    - Product sales including ADDERALL XR(R) were down 2% to $2,694 million
      (CER: 0%), due to the expected decline in ADDERALL XR product sales
      ($627 million, down 43% on 2008) following the launch of authorized
      generic versions by Teva Pharmaceuticals USA Inc. ("Teva") in April
      2009 and Impax Laboratories Inc. ("Impax") in October 2009, with the
      strong performance from Shire's core products (up 25%) offsetting the
      decrease in ADDERALL XR product sales.

    - Revenues for the year to December 31, 2009 decreased marginally to
      $3,008 million (2008: $3,022 million), as the 25% increase in core
      product sales and royalty income received on Teva and Impax's sales of
      authorized generic ADDERALL XR offset the decline in ADDERALL XR
      product sales.

    - Non GAAP operating income decreased by 7%, or $69 million, to $889
      million as a result of the marginally lower revenues and Shire's
      increased investment in research and development in 2009, which were
      partially offset by lower selling, general and administrative costs
      from Shire's continued focus on cost management. On a US GAAP basis,
      operating income in 2009 was $620 million, compared to $412 million in
      2008, an increase of 51% (2008 included in-process R&D ("IPR&D")
      charges of $263 million related to the acquisitions of Jerini AG
      ("Jerini") and METAZYM).

    - Non GAAP diluted earnings per ADS were down 10% to $3.49 (2008: $3.86).
      On a US GAAP basis diluted earnings per ADS increased to $2.69 compared
      to $0.86 in 2008, up 214% (earnings in 2008 were impacted by interest
      charges on the Transkaryotic Therapies Inc. ("TKT") appraisal rights
      settlement, IPR&D and other impairment charges, all of which reduced US
      GAAP diluted earnings per ADS in 2008).

    - Cash generation, which is a Non GAAP measure, in 2009 was $921 million
      (2008: $1,231 million), a decrease of $310 million. Cash generation was
      lower in 2009 due to lower net sales receipts following the
      genericization of ADDERALL XR. Cash generation in 2008 also included
      cash inflows from forward exchange contracts which were not repeated in
      2009.

2010 OUTLOOK

We enter 2010 with good momentum driven by the growth of our core product
portfolio. 2010 will also benefit from the change in best estimate for
ADDERALL XR rebates implemented in the fourth quarter of 2009 against a
background of further erosion of the brand and the impact of adverse business
mix trends.

In the first quarter of 2010 we expect our total revenues and Non GAAP
diluted earnings per ADS to be lower than the same period in 2009, which was
the last quarter before ADDERALL XR faced generic competition. For the
balance of the year Shire expects to generate both total revenue growth and
Non GAAP diluted earnings per ADS growth compared to 2009.

During 2010 we expect to see gross margins as a percentage of product
sales at a similar level to 2009. We will further increase our focused
investment in R&D and targeted investment will increase SG&A year on year. We
expect a Non GAAP effective tax rate in 2010 at a similar level to 2009.

We look forward to growing both total revenues and reported Non GAAP
diluted earnings per ADS in the full year 2010 compared to the excellent 2009
Non GAAP results and re-iterate our aspirational target of mid-teen revenue
growth on average between 2009 and 2015.

PRODUCT LAUNCHES

Subject to obtaining the relevant regulatory/governmental approvals,
product launches in 2010 will include:

    - VPRIV(TM) for the treatment of Gaucher disease in the US and
      EU;
    - REPLAGAL for the treatment of Fabry disease in the US;
    - MEZAVANT for the treatment of ulcerative colitis in certain
      EU and RoW countries;
    - FIRAZYR(R) for the symptomatic treatment of acute attacks of hereditary
      angiodema in certain European and Latin American countries;
    - EQUASYM(R) for the treatment of ADHD in certain EU
      countries; and
    - VYVANSE for the treatment of ADHD in Canada.

    Fourth Quarter 2009 Unaudited Results

                           Q4 2009                         Q4 2008
                                          Non                             Non
               US GAAP   Adjustments     GAAP  US GAAP   Adjustments     GAAP
                    $M            $M       $M       $M            $M       $M
    Revenues       893             -      893      766             -      766
    Operating
    income         268            45      313      193            48      241

    Diluted
    earnings
    per ADS      $0.94         $0.17    $1.11    $0.78         $0.23    $1.01

These results include the effect of a change in best estimate of the
Medicaid rebate liability for ADDERALL XR, which increased product sales by
$98 million, and Non GAAP diluted earnings per ADS by 32 cents. Revenues and
Non GAAP diluted earnings per ADS excluding this change in best estimate for
the fourth quarter would have been $795 million and 79 cents respectively.
For further details see pages 9 to 10 and 26.

The Non GAAP financial measures included above are explained on pages 27
and 28, and are reconciled to the most directly comparable financial measures
prepared in accordance with US GAAP on pages 24 to 26.

    - Product sales from core products were up 36% (CER: up 32%) to $585
      million (2008: $429 million) following continued growth from VYVANSE,
      LIALDA/MEZAVANT, ELAPRASE and REPLAGAL.

    - Product sales including ADDERALL XR, increased by 10% to $777 million
      (CER: up 8%). In Q4 2009 ADDERALL XR sales included the effect of a
      change in best estimate of the amount of Medicaid rebate payable on
      sales of ADDERALL XR. The effect of this change in best estimate
      increased ADDERALL XR net product sales for Q4 2009 by $98 million, of
      which $74 million related to product sales recognized in Q1 - Q3 2009.
      Q4 product sales, excluding the effect of the change in best estimate
      relating to product sales recognized in Q1 - Q3 2009, declined
      marginally to $703 million (2008: $704 million).

    - Revenues in Q4 2009 increased by 17% to $893 million (2008: $766
      million). The decline in ADDERALL XR product sales following
      genericization was more than offset by strong core product sales growth
      and royalty income on Impax's sales of authorized generic ADDERALL XR.

    - Non GAAP operating income increased by 30%, or $72 million, to $313
      million as the higher product sales and royalty income were only
      partially offset by increased investment in research and development.
      On a US GAAP basis operating income in Q4 2009 increased 39%, or $75
      million to $268 million (2008: $193 million).

    - Non GAAP diluted earnings per ADS for Q4 2009 were up 9% to $1.11 (Q4
      2008: $1.01). On a US GAAP basis diluted earnings per ADS were up 20%
      to $0.94 (2008: $0.78).

    FOURTH QUARTER 2009 AND RECENT PRODUCT AND PIPELINE DEVELOPMENTS
    Products

    VYVANSE - for the treatment of ADHD

    - On February 1, 2010 Shire announced the Canadian
      availability of VYVANSE (lisdexamfetamine dimesylate capsule), the
      first and only prodrug therapy approved for ADHD treatment in Canada.

    INTUNIV - for the treatment of ADHD in children and adolescents in the US

    - Once-daily INTUNIV became available in US pharmacies on
      November 9, 2009 and comes in four dosage strengths (1 mg, 2 mg, 3 mg,
      and 4 mg). INTUNIV is marketed in the US by the existing Shire ADHD
      sales team of nearly 600 representatives.

    - Revenue on the launch shipments of INTUNIV has been deferred
      and is being recognised in line with prescription demand. On this
      basis, INTUNIV achieved sales of $5.4 million from launch through
      December 31, 2009.

    DAYTRANA - for the treatment of ADHD in adolescents in the US

    - On December 4, 2009 and on January 29, 2010 Shire issued a
      voluntary recall of certain lots of DAYTRANA because some of the
      patches do not meet, or in future may not meet, their release liner
      removal specification, and as a result, patients and caregivers could
      have difficulty removing the liners. This action was not due to any
      safety issues and no interruption in product supply is anticipated.

    Pipeline

    VPRIV - for the treatment of Type 1 Gaucher disease

    - On November 24, 2009 Shire submitted a marketing authorization
      application to the European Medicines Agency ("EMEA") for VPRIV,
      Shire's enzyme replacement therapy in development for the treatment of
      Type 1 Gaucher disease. The submission has been granted an accelerated
      review by EMEA. Submissions have also been made in the US on September
      1, 2009 and Canada on October 20, 2009. In the U.S., the application is
      being reviewed by the US Food and Drug Administration ("FDA") under
      Priority Review with a Prescription Drug User Fee Act action date of
      February 28, 2010. The FDA recently completed pre-approval inspections
      of Shire's Massachusetts facilities for the manufacturing and testing
      of VPRIV. These inspections were an important milestone in the review
      and approval process for the VPRIV New Drug Application.

    - VPRIV is available ahead of its commercial launch in the US via an
      FDA-accepted treatment protocol and elsewhere on a pre-approval basis
      using the fastest mechanisms available in each country, in response to
      the ongoing shortage of a currently marketed treatment for Type 1
      Gaucher disease.

    - Pending FDA approval, Shire intends to price the VPRIV 400 Unit vial at
      a wholesale acquisition cost ("WAC") of $1,350 in the US.

    - We are pleased to announce enhancements to our OnePathSM Access
      program. In addition to our existing patient assistance programs and
      our support of patient associations, Shire will provide direct co-pay
      assistance, covering the first 3 months of out-of-pocket prescription
      costs for eligible US patients this year. In 2011, we also plan to cap
      the out-of-pocket prescription costs for these patients at $500. This
      new program will be effective March 1, 2010 for eligible ELAPRASE
      patients and VPRIV patients pending FDA approval.

    VYVANSE - for the treatment of ADHD

    - On December 21, 2009 a supplemental New Drug Submission for VYVANSE was
      submitted in Canada for the extension of the indication to adolescents
      and adults with ADHD.

    - On January 14, 2010 a supplemental New Drug Application for VYVANSE was
      submitted to the FDA for the extension of the indication to adolescents
      aged 13 to 17 years with ADHD.

    REPLAGAL - for the treatment of Fabry disease

    - On December 22, 2009 Shire submitted a Biologics License Application to
      the FDA for REPLAGAL, its enzyme replacement therapy for Fabry disease.
      Shire has worked closely with the FDA to establish an early access
      program in response to the ongoing shortage of the currently marketed
      treatment for Fabry disease in the US. REPLAGAL is currently available
      to Fabry patients in the US under an FDA-approved treatment protocol,
      and Shire is also supporting emergency Investigational New Drug
      requests. REPLAGAL first received marketing authorization in the
      European Union in 2001, and is approved for the treatment of Fabry
      disease in 45 countries. Shire expects its REPLAGAL supply to be
      adequate to meet anticipated global demand.

    OTHER FOURTH QUARTER AND RECENT DEVELOPMENTS

    - On December 23, 2009 Shire completed the purchase of the remaining
      Jerini shares from the minority shareholders, and now owns 100% of
      Jerini.

    - On February 24, 2009 Actavis Elizabeth LLC brought a lawsuit against
      the FDA seeking to overturn the FDA's decision granting new chemical
      entity exclusivity to VYVANSE. Shire has intervened in the lawsuit. On
      October 23, 2009, following a period for public comment, the FDA issued
      a letter setting forth its analysis of the legal and regulatory issues
      and reaffirming its decision that VYVANSE is entitled to new chemical
      entity exclusivity. A hearing on cross-motions for summary judgment
      was held on February 17, 2010. No rulings on the cross-motions were made
      at the hearing.

    - On December 2, 2009 Shire announced that it had settled the litigation
      with Teva over Shire's supply to Teva of an authorized generic version
      of ADDERALL XR. Shire has been supplying Teva with authorized generic
      ADDERALL XR since April 1, 2009. Shire's ability to supply the product
      had been limited by restrictions that the US Drug Enforcement
      Administration ("DEA") places on amphetamine, which is the product's
      active ingredient. Teva filed suit claiming that Shire was in breach of
      its supply contract. After the lawsuit was filed, the DEA granted
      Shire additional quota for 2009, allowing Shire to supply Teva with
      additional product. Teva dismissed its lawsuit, including its claims for
      monetary damages, specific performance and other equitable relief. No
      consideration was exchanged by the parties as part of the settlement.

DIVIDEND

For the six months to December 31, 2009 the Board has resolved to pay an
interim dividend of 9.250 US cents per ordinary share (2008: 7.761 US cents
per ordinary share).

Dividend payments will be made in Pounds Sterling to ordinary
shareholders and in US Dollars to holders of American Depository Shares. A
dividend of 5.910 pence per ordinary share (2008: 5.469 pence) and 27.750 US
cents per ADS (2008: 23.283 US cents) will be paid on April 14, 2010 to
persons whose names appear on the register of members of the Company at the
close of business on March 12, 2010.

Together with the first interim payment of 2.147 US cents per ordinary
share (2008: 2.147 US cents per ordinary share), this represents total
dividends for 2009 of 11.397 US cents per ordinary share (2008: 9.908 US
cents per ordinary share), an increase of 15% in US Dollar terms over 2008.

BOARD CHANGES

On December 23, 2009 Dr Michael Rosenblatt stepped down from the Shire
Board as a non-executive director, following Dr Rosenblatt’s appointment as
Executive Vice President and Chief Medical Officer at Merck & Co., Inc. Matt
Emmens
, Chairman of Shire said “On behalf of the Shire Board, I would like to
thank Michael for his contributions and we wish him well in his new position”.

Dr Barry Price retired from the Shire Board as a non-executive director
upon the completion of his term of office on January 24, 2010. Matt Emmens,
Chairman of Shire said “On behalf of the Shire Board, I would like to thank
Barry for his significant contributions over the past 14 years. Barry brought
a wealth of expertise and experience to the Board and we wish him well for
the future”.

    ADDITIONAL INFORMATION
    The following additional information is included in this press release:
                                                     Page
    Overview of Full Year Financial                   8
    Results
    Financial Information                             13
    Notes to Editors                                  27
    Safe Harbor Statement                             27
    Explanation of Non GAAP Measures                  27
    Trademarks                                        28

Dial in details for the live conference call for investors 14:00
GMT
/09:00 EST on February 19, 2010:

    UK dial in:          0844-800-3850 or 01296-311-600
    US dial in:          1-866-8048688 or 1-718-3541175
    International dial   +44(0)1296-311-600
    in:
    Password/Conf ID:    587 261#
    Live Webcast:        http://www.shire.com/shireplc/en/investors

    OVERVIEW OF FULL YEAR FINANCIAL RESULTS
    1. Product sales

For the year to December 31, 2009 product sales decreased by 2% to
$2,693.7 million (2008: $2,754.2 million) and represented 90% of total
revenues (2008: 91%). On a CER basis product sales were flat compared to 2008.

Sales of core products increased by 25% to $2,067.2 million (2008:
$1,652.5 million), up 28% on a CER basis.

    Product Highlights

                                                                    Exit
                                                                   Market
                                        Year on year growth       Share(1)
    Product              Sales $M    Sales       CER     US Rx(1)

    VYVANSE                 504.7      58%        58%        65%        13%
    ELAPRASE                353.1      16%        20%     n/a(3)     n/a(3)
    LIALDA / MEZAVANT       235.9      68%        69%        43%        18%
    PENTASA(R)              214.8      16%        16%        -2%        16%
    REPLAGAL                193.8      10%        16%     n/a(2)     n/a(2)
    FOSRENOL                184.4      19%        23%        -2%         8%
    FIRAZYR                   6.1   n/a(4)     n/a(4)     n/a(2)     n/a(2)
    INTUNIV                   5.4      n/a        n/a     n/a(2)         1%
    VPRIV(5)                  2.5      n/a        n/a     n/a(2)     n/a(2)
    OTHER                   366.5      -1%        n/a     n/a(2)     n/a(2)
    Core product sales    2,067.2      25%        28%
    ADDERALL XR             626.5     -43%       -43%       -42%         8%
    Total product sales   2,693.7      -2%         0%

(1) TRx data provided by IMS Health (“IMS”) National Prescription Audit.
Exit market share represents the US market share in the last week of December
2009
.

    (2) Not sold in the US in 2009, or awaiting approval in the US.
    (3) IMS Data not available.
    (4) Product launched Q3 2008. FY 2008 sales totaled $0.5 million.
    (5) Not yet approved. Sales achieved under early access programs.
    Core Products
    VYVANSE - ADHD

The increase in VYVANSE product sales was driven by higher US
prescription demand versus 2008, 9% growth in the US ADHD market and price
increases. Product sales growth was lower than prescription growth due to
lower stocking in 2009 compared to 2008.

ELAPRASE – Hunter syndrome

The growth in sales of ELAPRASE was driven by increased volumes across
all regions where ELAPRASE is sold. On a CER basis sales grew by 20% (66% of
ELAPRASE sales are made outside of the US).

LIALDA/MEZAVANT – Ulcerative colitis

Strong product sales of LIALDA/MEZAVANT continued in the year to December
31, 2009
driven by an increase in market share over 2008, growth in the US
oral mesalamine market and price increases taken during 2009.

PENTASA – Ulcerative colitis

Product sales of PENTASA continued to grow despite a decrease in US
prescription demand in 2009 compared to 2008 due to the impact of price
increases taken during 2009.

REPLAGAL – Fabry disease

The growth in REPLAGAL product sales in 2009 over 2008 was driven by a
significant increase in demand in the fourth quarter of 2009 due to an
acceleration of patients switching to REPLAGAL in the EU, attributable in
part to supply shortages of a competitor product. Sales increased 16% on a
CER basis (REPLAGAL is sold primarily in Euros and Pounds sterling).

FOSRENOL – Hyperphosphatemia

Product sales increased as FOSRENOL entered new countries and grew in
existing markets outside the US. In the US, FOSRENOL sales grew despite lower
prescriptions due to a price increase in 2009.

INTUNIV – ADHD

INTUNIV was launched in the US in November 2009. In line with Shire’s
revenue recognition policy for launch shipments, initial stocking shipments
have been deferred and are being recognised into revenue in line with
end-user prescription demand. At December 31, 2009 deferred revenues on the
balance sheet represented gross sales of $38.8 million.

Other products

ADDERALL XR – ADHD

The launch by Teva and Impax of their authorised generic versions of
ADDERALL XR led to the expected decline in 2009 of branded ADDERALL XR
prescription demand, and resulted in higher US sales deductions in 2009
compared to 2008. These factors more than offset the positive impacts of
price increases taken since the fourth quarter of 2008, and the inclusion in
product sales of shipments of authorized generic ADDERALL XR to Teva and
Impax in 2009.

Sales deductions represented 47% of branded ADDERALL XR gross sales in
the year to December 31, 2009 compared to 25% in the same period in 2008,
following higher Medicaid and Managed Care rebates subsequent to the
authorized generic launches.

There are potentially different interpretations as to how shipments of
authorized generic ADDERALL XR to Teva and Impax should be included in the
Medicaid rebate calculation pursuant to Medicaid rebate legislation,
including the Deficit Reduction Act of 2005 (“Medicaid rebate legislation”).
As a result more than one unit rebate amount (“URA”) is calculable for the
purpose of determining Shire’s Medicaid rebate liability to States after the
authorized generic launch. During 2009 Shire highlighted the different
interpretations to the Centers for Medicare and Medicaid Services, (“CMS”)
and submitted data to the CMS for the purpose of computing the URA, based on
Shire’s reasonable interpretation of the Medicaid rebate legislation and
related guidance. The State Medicaid agencies have invoiced Shire for
Medicaid rebates, and Shire has paid these Medicaid rebate invoices, based on
this URA. Despite this CMS has the ability to subsequently challenge Shire’s
interpretation of the Medicaid rebate legislation, and require an alternative
interpretation to be applied (both retrospectively and prospectively), which
could result in a significantly higher Medicaid liability.

Throughout 2009 Shire’s management has recorded its accrual for Medicaid
rebates based on its best estimate of the rebate payable. For the first three
quarters of 2009, Shire’s management based this best estimate on an amount
that Shire could pay were CMS to challenge Shire’s interpretation and require
an alternative interpretation of the Medicaid rebate legislation to be
applied. In the fourth quarter of 2009, Shire’s management lowered its best
estimate of the Medicaid rebate payable down to be consistent with (i)
Shire’s interpretation of the Medicaid rebate legislation, (ii) Shire’s
repeated and consistent submission of price reporting to CMS using Shire’s
interpretation of the Medicaid rebate legislation, (iii) CMS calculating the
URA based on that interpretation, (iv) States submitting Medicaid rebate
invoices using this URA, and (v) Shire paying these invoices. This change of
estimate increased ADDERALL XR product sales by $97.7 million in the fourth
quarter of 2009 (of which $73.6 million related to ADDERALL XR product sales
recognized in Q1-Q3 2009).

In determining its best estimate of the Medicaid rebate liability at
December 31, 2009 Shire’s management has considered a number of factors taken
in combination (including the receipt of a further quarter’s invoices from
the States with a URA based on Shire’s interpretation of the Medicaid rebate
legislation and related guidance, and Shire’s likely response were CMS to
employ an alternative interpretation of the Medicaid rebate legislation). Any
future change in Shire’s interpretation which results in a change of estimate
could significantly decrease sales of ADDERALL XR in the period of any such
change in estimate.

Shire strongly believes that its interpretation of the Medicaid rebate
legislation is reasonable and correct. However, CMS could disagree with
Shire’s interpretation, and require Shire to apply an alternative
interpretation of the Medicaid rebate legislation and pay up to $210 million
above the recorded liability. This would represent a URA substantially in
excess of the unit sales price of ADDERALL XR and accordingly be in excess of
the approximate amount of the full cost to the States of reimbursement for
Medicaid prescriptions of ADDERALL XR. Should CMS take such an approach,
Shire could seek to limit any additional payments to a level approximating
the full, un-rebated cost to the States of ADDERALL XR, or $98 million above
the recorded liability. Further, Shire believes it has a strong legal basis
supporting its interpretation of the Medicaid rebate legislation, and that
there would be a strong basis to initiate litigation to recover any amount
paid in excess of its recorded liability. The result of any such litigation
cannot be predicted and could result in additional rebate liability above
Shire’s current best estimate.

    2. Royalties

    Product              Royalties to Shire $M  Year on year change  CER
    3TC(R) and Zeffix(R)          164.0                 -9%          -6%
    ADDERALL XR                    68.0                 n/a          n/a
    Other                          60.5                 -7%          -3%
    Total                         292.5                +19%          +22%

Shire receives royalties from GlaxoSmithKline (“GSK”) on worldwide sales
of 3TC and ZEFFIX which have decreased mainly due to competition from other
treatments.

Royalties were received on Teva’s sales of an authorized generic version
of ADDERALL XR between April and September 2009, and on Impax’s sales of its
authorized generic version of ADDERALL XR from October 2009.

Other royalties are received primarily on worldwide (excluding UK and
Republic of Ireland) sales of REMINYL(R) and REMINYL(R) XL (known as
RAZADYNE(R) and RAZADYNE(R) ER in the US). Royalties on sales of these
products decreased in 2009 to $47.7 million (2008: $63.5 million) due to
generic competition in the US from August 2008.

    3. Financial details
    Cost of product sales

                                                % of                 % of
                                   2009        product   2008       product
                                     $M        sales       $M        sales

    Cost of product sales         388.0          14%    408.0         15%
    Accelerated depreciation on
    transfer of manufacturing
    from Owings Mills            (12.0)                     -
    Fair value adjustment for
    acquired inventories          (1.9)                     -
    DYNEPO exit costs                 -                (48.8)
    Depreciation                  (9.8)                (16.2)
    Non GAAP cost of product      364.3          14%    343.0         12%
    sales

Non GAAP cost of product sales as a percentage of product sales increased
in 2009 due to changes to the product mix following the launch of authorized
generic versions of ADDERALL XR by Teva and Impax. Higher deductions on
Shire’s sales of branded ADDERALL XR, together with lower margins on sales of
the authorized generic version to Teva and Impax have both depressed gross
margins.

    Research and development ("R&D")

                                                % of                 % of
                                   2009        product   2008       product
                                     $M        sales       $M        sales

    R&D                           638.3          24%    494.3          18%
    INTUNIV license payment       (36.9)                    -
    Women's Health exit costs     (62.9)                    -
    DYNEPO exit costs                 -                  (6.5)
    Depreciation                  (15.5)                (12.5)
    Non GAAP R&D                  523.0          19%    475.3          17%

Non GAAP R&D increased 10% in 2009 compared to 2008 as Shire has
continued to increase investment in R&D programs, due in part to an
acceleration of investment in VPRIV and REPLAGAL in the US.

    Selling, general and administrative ("SG&A")

                                               % of                 % of
                                   2009        product   2008       product
                                     $M        sales       $M        sales
    SG&A                        1,342.6         50%   1,455.2        53%
    Intangible asset             (136.9)               (126.2)
    amortization
    Impairment of intangible          -                 (97.1)
    assets
    New holding company costs         -                 (14.8)
    Depreciation                  (67.7)                (48.5)
    Non GAAP SG&A               1,138.0         42%   1,168.6        42%

Non GAAP SG&A decreased in absolute terms by 3% due to Shire’s continued
focus on cost management.

Gain on sale of product rights

For the year to December 31, 2009 Shire recorded gains of $6.3 million
(2008: $20.7 million) from the sale of non-core products to Laboratorios
Almirall S.A. in 2007. These gains had been deferred since 2007 pending
obtaining the relevant consents to transfer certain assets.

IPR&D

For the year to December 31, 2009, Shire recorded IPR&D charges of $1.6
million
(2008: $128.1 million) relating to FIRAZYR in markets outside of the
EU. In 2008 IPR&D also included a charge of $135.0 million relating to the
acquisition of METAZYM from Zymenex A/S.

Reorganization costs

For the year to December 31, 2009 Shire recorded reorganization costs of
$12.7 million (2008: $nil) relating to the transfer of manufacturing from its
Owings Mills facility.

Integration and acquisition costs

For the year to December 31, 2009 Shire recorded integration and
acquisition costs of $10.6 million (2008: $10.3 million), primarily relating
to the integration of Jerini.

Interest income

For the year to December 31, 2009 Shire received interest income of $1.9
million
(2008: $25.5 million), primarily earned on cash and cash equivalents.
Interest income for the year to December 31, 2009 is lower than the same
period in 2008 due to significantly lower interest rates in 2009 compared to
2008, and lower average cash and cash equivalent balances throughout the year.

    Interest expense

                                                                 2009    2008
                                                                   $M      $M
    Interest expense                                             39.8   139.0
    Additional interest on settlement of TKT appraisal rights       -  (73.0)
    litigation
    Non GAAP interest expense                                    39.8    66.0

For the year to December 31, 2009 Shire incurred interest expense of
$39.8 million (2008: $139.0 million), including interest expense on Shire’s
convertible bond of $33.6 million (2008: $33.6 million). Interest expense in
2008 was higher than 2009 due to interest expense of $87.3 million recorded
in respect of the TKT appraisal rights litigation, of which $73.0 million was
additional interest arising from the settlement of the litigation in November
2008
.

    Other income/(expense), net

                                                                 2009    2008
                                                                   $M      $M
    Other income/(expense), net                                  60.7  (32.9)
    Gain on sale of investment in Virochem Pharma Inc.         (55.2)       -
    Gain on sale of investment in Questcor Pharmaceuticals Inc.     -   (9.4)
    Other than temporary impairment of available for sale
    securities (including $44.3 million for Renovo Group plc)       -    58.0
    Non GAAP other income, net                                    5.5    15.7

Non GAAP other income, net in 2009 included a gain of $5.7 million on
substantial modification of a property lease. In 2008 Non GAAP other income,
net primarily related to foreign exchange gains.

Taxation

The effective rate of tax for the year to December 31, 2009 was 22%
(2008: 37%). Excluding the impact of IPR&D charges of $263.1 million in 2008,
which are either not tax deductable or for which no tax benefit is currently
recognised, the effective rate of tax for 2008 was 19%. The effective tax
rate on Non GAAP income is 25% (2008: 23%).

The Non GAAP effective rate of tax in 2009 is higher than 2008 due to
increased profits in higher tax territories, together with the recognition of
valuation allowances against certain EU and US deferred tax assets. These
factors more than offset reductions to the Non GAAP effective rate of tax
from the decrease in valuation allowances held in respect of US State tax
credits and losses. In addition, the effect of the change in best estimate of
ADDERALL XR Medicaid rebates increased the Non GAAP effective rate of tax by
one percentage point in 2009.

Discontinued operations

The loss from discontinued operations for the year to December 31, 2009
was $12.4 million (2008: $17.6 million), relating to net losses on
discontinued Jerini businesses which were either divested or closed during
2009.

    FINANCIAL INFORMATION
    TABLE OF CONTENTS

                                                          Page

    Unaudited US GAAP Statement of Financial Position       14
    Unaudited US GAAP Consolidated Statements of
    Operations                                              15
    Unaudited US GAAP Consolidated Statements of Cash
    Flows                                                   17
    Selected Notes to the Unaudited US GAAP Financial
    Statements
    (1) Earnings per share                                  19
    (2) Analysis of revenues                                20
    Non GAAP reconciliation                                 22

    Unaudited US GAAP financial position as of December 31, 2009 Consolidated
Balance Sheets

                                                                 Restated(1)
                                                   December 31, December 31,
                                                           2009         2008
                                                             $M           $M
    ASSETS
    Current assets:
    Cash and cash equivalents                             498.9        218.2
    Restricted cash                                        33.1         29.2
    Accounts receivable, net                              597.5        395.0
    Inventories                                           189.7        154.5
    Assets held for sale                                    1.7         16.6
    Deferred tax asset                                    135.8         89.5
    Prepaid expenses and other current assets             113.5        141.4

    Total current assets                                1,570.2      1,044.4

    Non-current assets:
    Investments                                           105.7         42.9
    Property, plant and equipment, net                    676.8        534.2
    Goodwill                                              384.7        350.8
    Other intangible assets, net                        1,790.7      1,824.9
    Deferred tax asset                                     79.0        118.1
    Other non-current assets                               10.4         18.4

    Total assets                                        4,617.5      3,933.7

    LIABILITIES AND EQUITY
    Current liabilities:
    Accounts payable and accrued expenses                 929.1        708.6
    Deferred tax liability                                  2.9         10.9
    Other current liabilities                              88.0        104.3
     Total current liabilities                          1,020.0        823.8

    Non-current liabilities:
    Convertible bonds                                   1,100.0      1,100.0
    Other long-term debt                                   43.6         43.1
    Deferred tax liability                                294.3        348.0
    Other non-current liabilities                         247.1        291.3

    Total liabilities                                   2,705.0      2,606.2

    Shareholders' equity:
    Common stock of 5p par value; 1,000 million
    shares authorized; and 561.5 million shares
    issued and outstanding (2008: 1,000 million
    shares authorized; and 560.2 million shares
    issued and outstanding)                                55.6         55.5
    Additional paid-in capital                          2,677.6      2,594.6
    Treasury stock: 17.8 million shares (2008: 20.7
    million)                                             (347.4)      (397.2)
    Accumulated other comprehensive income                149.1         97.0
    Accumulated deficit                                  (622.4)    (1,022.7)

    Total Shire plc shareholders' equity                1,912.5      1,327.2
    Noncontrolling interest in subsidiaries                   -          0.3

    Total equity                                        1,912.5      1,327.5

    Total liabilities and equity                        4,617.5      3,933.7

    (1) See page 28 for details.

Unaudited US GAAP results for the three months and year to December 31,
2009
Consolidated Statements of Operations

                                                      12 months    12 months
                           3 months to  3 months to         to         to
                           December 31, December 31, December 31, December 31
                                  2009         2008         2009         2008
                                    $M           $M           $M           $M
    Revenues:
    Product sales                776.9        704.3      2,693.7      2,754.2
    Royalties                    114.7         54.8        292.5        245.5
    Other revenues                 1.7          6.7         21.5         22.5
    Total revenues               893.3        765.8      3,007.7      3,022.2

    Costs and expenses:
    Cost of product sales(1)     103.1         90.6        388.0        408.0
    Research and
    development(2)               145.8        125.9        638.3        494.3
    Selling, general and
    administrative(1) (2)        368.8        345.5      1,342.6      1,455.2
    Gain on sale of product
    rights                           -            -         (6.3)      (20.7)
    IPR&D                          1.6          7.6          1.6        263.1
    Reorganization costs           5.6            -         12.7            -
    Integration and
    acquisition costs              0.6          2.8         10.6         10.3
    Total operating expenses     625.5        572.4      2,387.5      2,610.2

    Operating income             267.8        193.4        620.2        412.0

    Interest income                0.4          2.5          1.9         25.5
    Interest expense              (9.2)       (12.1)       (39.8)     (139.0)
    Other (expenses)/income,
    net                           (1.2)         5.8         60.7       (32.9)
    Total other
    (expense)/income, net        (10.0)        (3.8)        22.8      (146.4)

    Income from continuing
    operations before income
    taxes and equity in
    (losses)/earnings of
    equity method investees       257.8       189.6        643.0        265.6
    Income taxes                  (81.8)      (35.0)      (138.5)      (98.0)
    Equity in
    (losses)/earnings of
    equity method investees,
    net of taxes                   (1.7)        1.1         (0.7)         2.4
    Income from continuing
    operations, net of tax        174.3       155.7        503.8        170.0

    Loss from discontinued
    operations (net of income
    tax expense of $nil in
    all periods)                      -       (16.7)       (12.4)      (17.6)
    Net income                    174.3       139.0        491.4       152.4

    Add: Net loss
    attributable to
    noncontrolling interest
    in subsidiaries                   -         2.3          0.2          3.6
    Net income attributable
    to Shire plc                  174.3       141.3        491.6        156.0

(1) Cost of product sales includes amortization of intangible assets
relating to favorable manufacturing contracts of $0.4 million for the three
months to December 31, 2009 (2008: $0.4 million) and $1.7 million for the
twelve months to December 31, 2009 (2008: $1.7 million). Selling, general and
administrative costs include amortization and impairment charges of
intangible assets relating to intellectual property rights acquired of $35.3
million
for the three months to December 31, 2009 (2008: $41.0 million) and
$136.9 million for the twelve months to December 31, 2009 (2008: $223.3
million
).

(2) Promotional costs totaling $6.3 million and $32.3 million have been
reclassified from Research and development to Selling, general and
administrative costs for the three and twelve months to December 31, 2008
respectively.

Unaudited US GAAP results for the three months and year to December 31,
2009
Consolidated Statements of Operations (continued)

                                                         12 months  12 months
                              3 months to   3 months to         to         to
                                                           December  December
                             December 31,  December 31,        31,        31,
                                     2009          2008       2009       2008
    Earnings per ordinary
    share - basic
    Earnings from continuing
    operations                      32.1c         29.3c      93.2c      32.1c
    Loss from discontinued
    operations                          -        (3.1c)     (2.3c)     (3.3c)
    Earnings per ordinary
    share - basic                   32.1c         26.2c      90.9c      28.8c

    Earnings per ADS - basic        96.3c         78.6c     272.7c      86.4c

    Earnings per ordinary
    share - diluted
    Earnings from continuing
    operations                      31.2c         28.9c      91.9c      31.8c
    Loss from discontinued
    operations                          -        (2.9c)     (2.2c)     (3.2c)
    Earnings per ordinary           31.2c         26.0c      89.7c      28.6c

    Earnings per ADS -
    diluted                         93.6c         78.0c     269.1c      85.8c

    Weighted average number
    of shares (millions):

    Basic                           542.6         538.8      540.7      541.6
    Diluted                         584.6         575.5      548.0      545.4

Unaudited US GAAP results for the three months and year to December 31,
2009
Consolidated Statements of Cash Flows

                                    3 months   3 months  12 months  12 months
                                          to         to         to         to
                                    December   December   December   December
                                         31,        31,        31,        31,
                                        2009       2008       2009       2008
                                          $M         $M         $M         $M
    CASH FLOWS FROM OPERATING
    ACTIVITIES:
    Net income                         174.3      139.0      491.4      152.4
    Adjustments to reconcile net
    income to net cash provided by
    operating activities:
              Loss from
              discontinued
              operations                   -       16.7       12.4       17.6
              Depreciation and
              amortization              72.8       57.9      250.2      202.9
              Share based
              compensation              15.6       13.2       65.7       65.2
              IPR&D                      1.6        7.6        1.6      128.1
              Impairment of
              intangible assets            -        6.3          -       97.1
              Impairment of
              available for sale
              securities                   -        3.8        0.8       58.0
              Gain on sale of
              non-current
              investments                  -       (0.7)     (55.2)    (10.1)
              Gain on sale of
              product rights               -          -       (6.3)    (20.7)
              Other                      1.5        4.1       12.2       10.5
    Movement in deferred taxes         (11.3)       60.1     (98.8)      74.0
    Equity in losses/(earnings) of
    equity method investees              1.7        (1.1)      0.7      (2.4)

    Changes in operating assets
    and liabilities:
              (Increase)/decrease
              in accounts
              receivable               (55.9)       50.1     (212.3)      9.4
              (Decrease)/increase
              in sales deduction
              accrual                  (77.5)       47.4      134.7      84.3
              (Increase)/decrease
              in inventory             (14.5)       (3.2)     (38.7)     36.4
              Decrease/(increase)
              in prepayments and
              other current assets      38.2        (9.4)      30.1     (9.6)
              (Increase)/decrease
              in other assets           (4.5)       57.1        0.8       3.6
              Increase/(decrease)
              in accounts and notes
              payable and other
              liabilities                94.9     (169.6)      38.6    (99.0)
    Returns on investment from
    joint venture                           -          -        4.9       7.1
    Cash flows used in
    discontinued operations                 -       (4.7)      (5.9)    (4.7)
    Net cash provided by operating
    activities(A)                       236.9      274.6      626.9     800.1

Unaudited US GAAP results for the three months and year to December 31,
2009
Consolidated Statements of Cash Flows (continued)

                                                         12 months  12 months
                              3 months to   3 months to         to         to
                                                           December  December
                             December 31,  December 31,        31,        31,
                                     2009          2008       2009       2008
                                       $M            $M         $M         $M
    CASH FLOWS FROM INVESTING
    ACTIVITIES:
    Movements in restricted
    cash                              6.2           2.6      (3.9)       10.3
    Purchases of subsidiary
    undertakings and
    businesses, net of cash
    acquired                         (7.8)         (36.9)     (83.3)  (499.4)
    Payment on settlement of
    TKT appraisal rights
    litigation                          -         (419.9)         -   (419.9)
    Purchases of non-current
    investments                      (0.9)          (0.9)      (0.9)    (2.2)
    Purchases of property,
    plant and equipment             (85.0)         (69.5)    (254.4)  (236.0)
    Purchases of intangible
    assets                               -             -       (7.0)   (25.0)
    Proceeds from disposal of
    non-current investments              -             -       19.2      10.3
    Proceeds from disposal of
    property, plant and
    equipment                          0.5             -        1.0       1.8
    Proceeds/deposits
    received on sales of
    product rights                       -             -          -       5.0
    Proceeds from disposal of
    subsidiary undertakings              -             -        6.7         -
    Returns of equity
    investments                          -           0.2        0.2       0.6
    Net cash used in
    investing activities(B)         (87.0)       (524.4)    (322.4) (1,154.5)
    CASH FLOWS FROM FINANCING
    ACTIVITIES:
    Proceeds from drawings
    under bank facility                  -         190.0          -     190.0
    Repayment of drawings
    under bank facility                  -        (190.0)         -   (190.0)
    Proceeds from building
    finance obligation                   -          11.3          -      11.3
    Payment under building
    financing obligation             (0.8)         (0.6)      (4.7)     (1.8)
    Tax benefit of stock
    based compensation                16.8             -       16.8         -
    Costs of issue of common
    stock                                -         (2.6)          -     (5.6)
    Proceeds from exercise of
    options                           11.8           9.7       14.6      11.4
    Payment of dividend              (11.4)        (10.4)     (54.4)   (46.8)
    Payments to acquire
    shares by Employee Share
    Ownership Trust ("ESOT")             -          (6.3)      (1.0)  (146.6)
    Net cash provided
    by/(used in) financing
    activities(C)                     16.4           1.1      (28.7)  (178.1)
    Effect of foreign
    exchange rate changes on
    cash and cash equivalents
    (D)                               (0.1)         (6.4)       4.9    (11.8)
    Net increase/(decrease)
    in cash and cash
    equivalents(A) +(B) +(C)
    +(D)                             166.2        (255.1)     280.7   (544.3)
    Cash and cash equivalents
    at beginning of period           332.7         473.3      218.2     762.5
    Cash and cash equivalents
    at end of period                 498.9         218.2      498.9     218.2

Unaudited US GAAP results for the three months and year to December 31,
2009

    Selected Notes to the Financial Statements
    (1) Earnings per share

                                                         12 months  12 months
                              3 months to   3 months to         to         to
                                                          December   December
                             December 31,  December 31,        31,        31,
                                     2009          2008       2009       2008
                                       $M            $M         $M         $M

    Income from continuing
    operations                      174.3         155.7      503.8      170.0
    Loss from discontinued
    operations                          -         (16.7)     (12.4)    (17.6)
    Noncontrolling interest
    in subsidiaries                     -           2.3        0.2        3.6

    Numerator for basic EPS         174.3         141.3      491.6      156.0
    Interest on convertible
    bonds, net of tax (1)             8.3           8.4          -          -

    Numerator for diluted EPS       182.6         149.7      491.6      156.0

    Weighted average number
    of shares:
                                 Millions      Millions   Millions   Millions
    Basic(2)                        542.6         538.8      540.7      541.6
    Effect of dilutive
    shares:
    Stock options(3)                  8.8           4.0        7.3        3.8
    Convertible bonds 2.75%
    due 2014(1)                      33.2          32.7          -          -

    Diluted                         584.6         575.5      548.0      545.4

    (1) Calculated using the "if-converted" method.

(2) Excludes shares purchased by the ESOT and presented by Shire as
treasury stock.

(3) Calculated using the treasury stock method.

The share equivalents not included in the calculation of the diluted
weighted average number of shares are shown below:

                                                      12 months    12 months
                          3 months to  3 months to           to           to
                             December     December     December     December
                                  31,          31,          31,          31,
                                 2009         2008         2009         2008
                                                      Millions(1)  Millions
                          Millions(1)  Millions(1)          (2)      (1), (2)
    Stock options out of
    the money                     4.5         22.1         16.4         17.3
    Convertible bonds 2.75%
    due 2014                        -            -         33.1         32.7

(1) For the three and twelve month periods ended December 31, 2009 and
2008, certain stock options have been excluded from the calculation of
diluted EPS because their exercise prices exceeded Shire plc’s average share
price during the calculation period.

(2) For the twelve month periods ended December 31, 2009 and 2008 the
ordinary shares underlying the convertible bonds have not been included in
the calculation of the diluted weighted average number of shares, because the
effect of their inclusion would be anti-dilutive.

    Unaudited US GAAP results for the twelve months to December 31, 2009
    Selected Notes to the Financial Statements
    (2) Analysis of revenues

    12 months to December 31,         2009      2008      2009        2009
                                                             %  % of total
                                        $M        $M    change     revenue
    Net product sales:
    Specialty Pharmaceuticals
    ("Speciality")
    ADHD
    ADDERALL XR                      626.5   1,101.7      -43%         21%
    VYVANSE                          504.7     318.9       58%         17%
    DAYTRANA                          71.0      78.7      -10%          3%
    EQUASYM                           22.8         -       n/a          1%
    INTUNIV                            5.4         -       n/a         <1%
                                   1,230.4   1,499.3      -18%         42%
    GI
    PENTASA                          214.8     185.5       16%          7%
    LIALDA / MEZAVANT                235.9     140.4       68%          8%
                                     450.7     325.9       38%         15%
    General products
    FOSRENOL                         184.4     155.4       19%          6%
    CALCICHEW(R)                      43.7      52.8      -17%          1%
    CARBATROL(R)                      82.4      75.9        9%          3%
    REMINYL/REMINYL XL                42.4      34.4       23%          1%
    XAGRID                            84.8      78.7        8%          3%
                                     437.7     397.2       10%         14%

    Other product sales               19.4      50.1      -61%          1%
    Total Specialty product
    sales                          2,138.2   2,272.5       -6%         72%

    Human Genetic Therapies ("HGT")
    ELAPRASE                         353.1     305.1       16%         12%
    REPLAGAL                         193.8     176.1       10%          6%
    FIRAZYR                            6.1       0.5       n/a         <1%
    VPRIV                              2.5         -       n/a         <1%
    Total HGT product sales          555.5     481.7       15%         18%

    Total product sales            2,693.7   2,754.2       -2%         90%

    Royalties:
    3TC and ZEFFIX                   164.0     180.5       -9%          5%
    ADDERALL XR                       68.0         -       n/a          2%
    Other                             60.5      65.0       -7%          2%
    Total royalties                  292.5     245.5       19%          9%

    Other revenues                    21.5      22.5       -4%          1%

    Total Revenues                 3,007.7   3,022.2        0%        100%

    Unaudited results for the year to December 31, 2009
    Non GAAP reconciliation

                            US GAAP                Adjustments
                                                 Acquisitions    Divestments,
                                    Amortization            & reorganizations
                       December 31,      & asset  integration  & discontinued
    Year to,                   2009  impairments   activities      operations
                                             (a)          (b)             (c)
                                 $M           $M           $M              $M
    Total revenues          3,007.7            -            -               -
    Costs and expenses:
    Cost of product
    sales                     388.0            -         (1.9)         (12.0)
    Research and
    development               638.3            -        (36.9)         (62.9)
    Selling, general
    and administrative      1,342.6       (136.9)           -              -
    Gain on sale of
    product rights             (6.3)           -            -            6.3
    IPR&D                       1.6            -         (1.6)             -
    Reorganization
    costs                      12.7            -            -          (12.7)
    Integration &
    acquisition costs          10.6            -        (10.6)             -
    Depreciation                  -            -            -              -
    Total operating
    expenses                2,387.5       (136.9)       (51.0)         (81.3)

    Operating income          620.2        136.9         51.0           81.3

    Interest income             1.9            -            -              -
    Interest expense          (39.8)           -            -              -
    Other income, net          60.7            -            -          (55.2)
    Total other
    income/(expense),
    net                        22.8            -            -          (55.2)
    Income from
    continuing
    operations before
    income taxes and
    equity in losses of
    equity method
    investees                 643.0        136.9         51.0           26.1
    Income taxes             (138.5)       (38.8)       (16.2)         (20.7)
    Equity in losses of
    equity method
    investees, net of
    tax                        (0.7)           -            -              -
    Income from
    continuing
    operations, net of
    tax                        503.8        98.1         34.8            5.4
    Loss from
    discontinued
    operations                 (12.4)          -            -           12.4
    Net income                 491.4        98.1         34.8           17.8
    Add: Net loss
    attributable to
    noncontrolling
    interest in
    subsidiaries                 0.2           -            -              -
    Net income
    attributable to
    Shire plc                  491.6        98.1         34.8           17.8
    Impact of
    convertible debt,
    net of tax (1)                 -        33.6            -              -
    Numerator for
    diluted EPS                491.6       131.7         34.8           17.8
    Weighted average
    number of shares
    (millions) -
    diluted(1)                 548.0        33.1            -              -
    Diluted earning
    per ADS                   269.1c       52.6c        18.0c           9.2c

                                                     Non GAAP
                          Reclassify             December 31,
    Year to,            depreciation                     2009
                                 (d)
                                  $M                       $M
    Total revenues                 -                  3,007.7
    Costs and expenses:
    Cost of product
    sales                       (9.8)                   364.3
    Research and
    development                (15.5)                   523.0
    Selling, general
    and administrative         (67.7)                 1,138.0
    Gain on sale of
    product rights                 -                        -
    IPR&D                          -                        -
    Reorganization
    costs                          -                        -
    Integration &
    acquisition costs              -                        -
    Depreciation                93.0                     93.0
    Total operating
    expenses                       -                  2,118.3

    Operating income               -                    889.4

    Interest income                -                      1.9
    Interest expense               -                    (39.8)
    Other income, net              -                      5.5
    Total other
    income/(expense),
    net                            -                    (32.4)
    Income from
    continuing
    operations before
    income taxes and
    equity in losses of
    equity method
    investees                      -                    857.0
    Income taxes                   -                   (214.2)
    Equity in losses of
    equity method
    investees, net of
    tax                            -                     (0.7)
    Income from
    continuing
    operations, net of
    tax                            -                    642.1
    Loss from
    discontinued
    operations                     -                        -
    Net income                     -                    642.1
    Add: Net loss
    attributable to
    noncontrolling
    interest in
    subsidiaries                   -                      0.2
    Net income
    attributable to
    Shire plc                      -                    642.3
    Impact of
    convertible debt,
    net of tax (1)                 -                     33.6
    Numerator for
    diluted EPS                    -                    675.9
    Weighted average
    number of shares
    (millions) -
    diluted(1)                     -                    581.1
    Diluted earnings
    per ADS                        -                   348.9c

(1) The impact of convertible debt, net of tax has a dilutive effect on a
Non GAAP basis.

The following items are included in Adjustments:

(a) Amortization and asset impairments: Amortization of intangible assets
relating to intellectual property rights acquired ($136.9 million) and tax
effect of adjustment;

(b) Acquisitions and Integration activities: Inventory fair value
adjustment related to the acquisition of Jerini ($1.9 million), payment on
amendment of INTUNIV in-licence agreement ($36.9 million), IPR&D charge in
respect of Jerini ($1.6 million), costs associated with the integration and
acquisition of Jerini and EQUASYM ($10.6 million) and tax effect of
adjustments;

(c) Divestments, reorganizations and discontinued operations: Accelerated
depreciation ($12.0 million) and reorganization costs ($12.7 million) for the
transition of manufacturing from Owings Mills, costs associated with
agreement to terminate Women’s Health products with Duramed ($62.9 million),
gain on the disposal of non-core product rights ($6.3 million), gain on
disposal of the investment in Virochem ($55.2 million), discontinued
operations in respect of non-core Jerini operations ($12.4 million) and tax
effect of adjustments; and

(d) Depreciation: Depreciation of $93.0 million included in Cost of
product sales, R&D costs and SG&A costs for US GAAP separately disclosed for
the presentation of Non GAAP earnings.

    Unaudited results for the year to December 31, 2008
    Non GAAP reconciliation

                            US GAAP                Adjustments
                                                 Acquisitions    Divestments,
                                    Amortization            & reorganizations
                           December      & asset  integration  & discontinued
    Year to,               31, 2008  impairments   activities      operations
                                             (a)          (b)             (c)
                                 $M           $M           $M              $M
    Total revenues          3,022.2            -            -               -

    Costs and expenses:
    Cost of product sales     408.0            -            -          (48.8)
    Research and
    development(1)            494.3            -            -           (6.5)
    Selling, general and
    administrative(1)       1,455.2       (223.3)           -          (14.8)
    Integration and
    acquisition costs          10.3            -        (10.3)              -
    Gain on sale of product
    rights                    (20.7)           -            -            20.7
    IPR&D                     263.1            -       (263.1)              -
    Depreciation                  -            -            -               -
    Total operating
    expenses                2,610.2       (223.3)      (273.4)         (49.4)

    Operating income          412.0        223.3        273.4            49.4

    Interest income            25.5            -            -               -
    Interest expense         (139.0)           -         73.0               -
    Other (expense)/income,
    net                       (32.9)        58.0            -           (9.4)
    Total other expense,
    net                      (146.4)        58.0         73.0           (9.4)
    Income from continuing
    operations before
    income taxes and equity
    in earnings of equity
    method investees          265.6        281.3        346.4            40.0
    Income taxes              (98.0)       (39.1)       (60.9)         (12.4)
    Equity in earnings of
    equity method
    investees, net of tax       2.4            -            -               -
    Income from continuing
    operations, net of tax    170.0         242.2        285.5           27.6
    Loss from discontinued
    operations                (17.6)            -            -           17.6
    Net income                152.4         242.2        285.5           45.2
    Add: Net loss
    attributable to
    noncontrolling interest
    in subsidiaries              3.6            -            -              -
    Net income attributable
    to Shire plc               156.0        242.2        285.5           45.2
    Impact of convertible
    debt, net of tax (2)           -         14.6            -              -
    Numerator for diluted
    EPS                        156.0        256.8        285.5           45.2
    Weighted average number
    of shares (millions) -
    diluted(2)                 545.4         32.7            -              -
    Diluted earnings per
    ADS                        85.8c       128.4c       148.2c          23.4c

    Year to,                                                    Non GAAP
                             Reclassify depreciation   December 31, 2008
                                                 (d)
    Total revenues                                $M                  $M
                                                   -             3,022.2
    Costs and expenses:
    Cost of product sales
    Research and
    development(1)                             (16.2)              343.0
    Selling, general and
    administrative(1)                          (12.5)              475.3
    Integration and
    acquisition costs                          (48.5)            1,168.6
    Gain on sale of product
    rights                                         -                   -
    IPR&D                                          -                   -
    Depreciation                                   -                   -
    Total operating expenses                    77.2                77.2
                                                   -             2,064.1
    Operating income
                                                   -               958.1
    Interest income
    Interest expense                               -                25.5
    Other (expense)/income,
    net                                            -               (66.0)
    Total other expense, net                       -                15.7
    Income from continuing
    operations before income
    taxes and equity in
    earnings of equity
    method investees                               -               (24.8)
    Income taxes                                   -               933.3
    Equity in earnings of
    equity method investees,
    net of tax                                     -              (210.4)
    Income from continuing
    operations, net of tax                         -                 2.4
    Loss from discontinued
    operations                                     -               725.3
    Net income                                     -                   -
    Add: Net loss
    attributable to
    noncontrolling interest
    in subsidiaries                                -               725.3
    Net income attributable
    to Shire plc                                   -                 3.6
    Impact of convertible
    debt, net of tax (2)                           -               728.9
    Numerator for diluted
    EPS                                            -                14.6
    Weighted average number
    of shares (millions) -
    diluted(2)                                     -               743.5
    Diluted earnings per ADS                       -               578.1

                                                   -              385.8c

(1) Promotional costs totaling $32.3 million have been reclassified from
Research and development to Selling, general and administrative costs for the
year to December 31, 2008.

(2) The impact of convertible debt, net of tax has a dilutive effect on a
Non GAAP basis.

The following items are included in Adjustments:

(a) Amortization and asset impairments: Amortization of intangible assets
relating to intellectual property rights acquired ($126.2 million),
impairment charge in respect of DYNEPO intangible asset ($94.6 million),
impairment of other intangible assets ($2.5 million), other than temporary
impairment of available for sale securities ($58.0 million), and tax effect
of adjustments;

(b) Acquisitions & integration activities: Integration and transaction
related costs in respect of the acquisition of Jerini ($10.3 million), IPR&D
in respect of METAZYM acquired from Zymenex A/S ($135.0 million), IPR&D in
respect of the acquisition of Jerini ($128.1 million), additional interest
expense incurred on settlement of the TKT appraisal rights litigation ($73.0
million
), and tax effect of adjustments;

(c) Divestments, reorganizations and discontinued operations: Costs
associated with inventory write down and other exit costs in respect of
DYNEPO ($48.8 million), R&D commitment in respect of DYNEPO ($6.5 million),
costs associated with the introduction of a new holding company ($14.8
million
), gains on the disposal of non-core assets ($20.7 million), gain on
disposal of minority equity investment ($9.4 million), discontinued
operations in respect of non-core Jerini operations ($17.6 million) and tax
effect of adjustments; and

(d) Depreciation: Depreciation of $77.2 million included in Cost of
product sales, R&D costs and SG&A costs for US GAAP separately disclosed for
the presentation of Non GAAP earnings.

    Unaudited results for the three months to December 31, 2009
    Non GAAP reconciliation

                            US GAAP                Adjustments
                                                 Acquisitions    Divestments,
                                    Amortization            & reorganizations
                       December 31,      & asset  integration  & discontinued
    3 months to,               2009  impairments   activities      operations
                                              (a)          (b)             (c)
                                 $M           $M           $M              $M
    Total revenues            893.3            -            -               -

    Costs and expenses:
    Cost of product
    sales                     103.1            -            -           (4.5)
    Research and
    development               145.8            -            -             2.1
    Selling, general
    and administrative        368.8        (35.3)           -               -
    IPR&D                       1.6            -         (1.6)              -
    Reorganization
    costs                       5.6            -            -           (5.6)
    Integration and
    acquisition costs           0.6            -         (0.6)              -
    Depreciation                  -            -            -               -
    Total operating
    expenses                  625.5        (35.3)        (2.2)          (8.0)

    Operating income          267.8         35.3          2.2             8.0

    Interest income             0.4            -            -               -
    Interest expense           (9.2)           -            -               -
    Other expenses, net        (1.2)           -            -               -
    Total other
    expense, net              (10.0)           -            -               -
    Income from
    continuing
    operations before
    income taxes and
    equity in losses of
    equity method
    investees                 257.8         35.3          2.2             8.0
    Income taxes              (81.8)        (9.8)           -           (2.9)
    Equity in losses of
    equity method
    investees, net of
    tax                        (1.7)           -            -               -
    Net income
    attributable to
    Shire plc                 174.3         25.5          2.2             5.1
    Impact of
    convertible debt,
    net of tax                  8.3            -            -               -
    Numerator for
    diluted EPS               182.6         25.5          2.2             5.1
    Weighted average
    number of shares
    (millions) -
    diluted                   584.6            -            -               -
    Diluted earnings
    per ADS                   93.6c        13.1c         1.1c            2.7c

    3 months to,                                 Non GAAP
                          Reclassify          December 31,
                        depreciation                 2009
                                 (d)
    Total revenues                $M                   $M
                                   -                893.3
    Costs and expenses:
    Cost of product
    sales
    Research and
    development                 (0.4)                98.2
    Selling, general
    and administrative          (4.2)               143.7
    IPR&D                      (18.4)               315.1
    Reorganization
    costs                          -                    -
    Integration and
    acquisition costs              -                    -
    Depreciation                   -                    -
    Total operating
    expenses                    23.0                 23.0
                                   -                580.0
    Operating income
                                   -                313.3
    Interest income
    Interest expense               -                  0.4
    Other expenses, net            -                 (9.2)
    Total other
    expense, net                   -                 (1.2)
    Income from
    continuing
    operations before
    income taxes and
    equity in losses of
    equity method
    investees                      -                (10.0)
    Income taxes                   -                303.3
    Equity in losses of
    equity method
    investees, net of
    tax                            -                (94.5)
    Net income
    attributable to
    Shire plc                      -                 (1.7)
    Impact of
    convertible debt,
    net of tax                     -                207.1
    Numerator for
    diluted EPS                    -                  8.3
    Weighted average
    number of shares
    (millions) -
    diluted                        -                215.4
    Diluted earnings
    per ADS                        -                584.6
                                   -               110.5c

The following items are included in Adjustments:

(a) Amortization and asset impairments: Amortization of intangible assets
relating to intellectual property rights acquired ($35.3 million) and tax
effect of adjustment;

(b) Acquisitions and integration activities IPR&D charge in respect of
Jerini ($1.6 million); costs associated with the integration of Jerini ($0.6
million
) and tax effect of adjustments;

(c) Divestments, reorganizations and discontinued operations: Accelerated
depreciation ($4.5 million) and reorganization costs ($5.6 million) for the
transfer of manufacturing from Owings Mills; release of accrual for costs
associated with agreement to terminate Women’s Health products with Duramed
($2.1 million) and tax effect of adjustments; and

(d) Depreciation: Depreciation of $23.0 million included in Cost of
product sales, R&D costs and SG&A costs for US GAAP separately disclosed for
the presentation of Non GAAP earnings.

    Unaudited results for the three months to December 31, 2008
    Non GAAP reconciliation

                              US GAAP             Adjustments
                                                 Acquisitions   Divestments,
                                    Amortization            & reorganizations
                       December 31,       & asset  integration & discontinued
    3 months to,              2008   impairments   activities      operations
                                             (a)          (b)             (c)
                                $M            $M           $M              $M
    Total revenues           765.8             -            -               -

    Costs and
    expenses:
    Cost of product
    sales                     90.6             -            -             4.7
    Research and
    development(1)           125.9             -            -               -
    Selling, general
    and
    administrative(1)        345.5         (41.0)           -           (1.0)
    IPR&D                      7.6             -         (7.6)              -
    Integration and
    acquisition costs          2.8             -         (2.8)              -
    Depreciation                 -             -            -               -
    Total operating
    expenses                 572.4         (41.0)       (10.4)            3.7

    Operating income         193.4          41.0         10.4           (3.7)

    Interest income            2.5             -            -               -
    Interest expense         (12.1)            -            -               -
    Other income, net          5.8           3.8            -               -
    Total other
    expense, net              (3.8)          3.8            -               -
    Income from
    continuing
    operations before
    income taxes and
    equity in
    earnings of
    equity method
    investees                189.6          44.8         10.4           (3.7)
    Income taxes             (35.0)         (6.3)        (1.0)         (17.1)
    Equity in
    earnings of
    equity method
    investees, net of
    tax                        1.1             -            -               -
    Income from
    continuing
    operations, net
    of tax                   155.7          38.5          9.4          (20.8)
    Loss from
    discontinued
    operations               (16.7)            -            -            16.7
    Net income               139.0          38.5          9.4           (4.1)
    Add: Net loss
    attributable to
    noncontrolling
    interest in
    subsidiaries               2.3             -            -               -
    Net income
    attributable to
    Shire plc                141.3          38.5          9.4           (4.1)
    Impact of
    convertible debt,
    net of tax                 8.4             -            -               -
    Numerator for
    diluted EPS              149.7          38.5          9.4           (4.1)
    Weighted average
    number of shares
    (millions) -
    diluted                  575.5             -            -               -
    Diluted earnings
    per ADS                  78.0c         20.2c         4.9c          (2.0c)
                                          Non GAAP
                        Reclassify    December
    3 months to,      depreciation    31, 2008
                               (d)
                                $M          $M
    Total revenues               -       765.8

    Costs and
    expenses:
    Cost of product
    sales                     (7.4)       87.9
    Research and
    development(1)            (3.1)      122.8
    Selling, general
    and
    administrative(1)        (14.5)      289.0
    IPR&D                        -           -
    Integration and
    acquisition costs            -           -
    Depreciation              25.0        25.0
    Total operating
    expenses                     -       524.7

    Operating income             -       241.1

    Interest income              -         2.5
    Interest expense             -       (12.1)
    Other income, net            -         9.6
    Total other
    expense, net                 -           -
    Income from
    continuing
    operations before
    income taxes and
    equity in
    earnings of
    equity method
    investees                    -       241.1
    Income taxes                 -       (59.4)
    Equity in
    earnings of
    equity method
    investees, net of
    tax                          -         1.1
    Income from
    continuing
    operations, net
    of tax                       -       182.8
    Loss from
    discontinued
    operations                   -           -
    Net income                   -       182.8
    Add: Net loss
    attributable to
    noncontrolling
    interest in
    subsidiaries                 -         2.3
    Net income
    attributable to
    Shire plc                    -       185.1
    Impact of
    convertible debt,
    net of tax                   -         8.4
    Numerator for
    diluted EPS                  -       193.5
    Weighted average
    number of shares
    (millions) -
    diluted                      -       575.5
    Diluted earnings
    per ADS                      -      101.1c

(1) $6.3m of promotional costs have been reclassified from Research and
development to Selling, general and administrative costs for the three months
to December 31, 2008.

The following items are included in Adjustments:

(a) Amortization and asset impairments: Amortization of intangible assets
relating to intellectual property rights acquired ($34.7 million), impairment
charge in respect of intangible assets ($6.3 million), other than temporary
impairment of available for sale securities ($3.8 million) and tax effect of
adjustments;

(b) Acquisitions & integration activities: IPR&D in respect of the
acquisition of Jerini ($7.6 million), integration and transaction related
costs in respect of the acquisition of Jerini ($2.8 million) and tax effect
of adjustments;

(c) Divestments, reorganizations and discontinued operations: Release of
provision for exit costs on DYNEPO ($4.7 million), costs associated with the
introduction of a new holding company ($1.0 million), discontinued operations
in respect of non-core Jerini operations ($16.7 million) and tax effect of
adjustments; and

(d) Depreciation: Depreciation of $25.0 million included in Cost of
product sales, R&D costs and SG&A costs for US GAAP separately disclosed for
the presentation of Non GAAP earnings.

Unaudited results for the three and twelve months to December 31, 2009

Non GAAP reconciliation

The following table reconciles US GAAP diluted earnings per ADS to Non
GAAP diluted earnings per ADS, including or excluding the effect of the
change in best estimate for ADDERALL XR Medicaid rebates:

                                                    3 months to  12 months to
                                                   December 31,  December 31,
                                                           2009          2009
                                                             $M            $M

    US GAAP diluted earnings per ADS                      93.6c        269.1c

    Non GAAP adjustments(1)
    Amortization & asset impairments                      13.1c         52.6c
    Acquisitions & integration activities                  1.1c         18.0c
    Divestments, reorganizations & discontinued
    operations                                             2.7c          9.2c

    Non GAAP diluted earnings per ADS                    110.5c        348.9c
    Effect of change in best estimate for ADDERALL
    XR Medicaid rebates                                 (32.0c)       (32.3c)
    Non GAAP diluted earnings per ADS excluding the
    effect of the change in best estimate                 78.5c        316.6c

(1) The Non GAAP adjustments are stated net of their tax effects, and are
detailed on pages 22 and 24.

The following table reconciles US GAAP net cash provided by operating
activities to Non GAAP cash generation:

                                       3 months to           12 months to
                                       December 31,          December 31,
                                       2009        2008      2009        2008
                                         $M          $M        $M          $M
    Net cash provided by operating
    activities                        236.9       274.6     626.9       800.1
    Tax and interest payments, net     32.0        27.4     252.7       133.9
    Interest on TKT appraisal
    rights settlement                     -       147.0         -       147.0
    Payments for acquired and
    in-licensed products                  -           -      36.9       135.0
    Class action escrow payment           -           -         -        27.0
    Foreign exchange on cash           (0.1)       (6.4)       4.9     (11.8)
    Non GAAP cash generation          268.8       442.6     921.4     1,231.2

    Notes to Editors
    SHIRE PLC

Shire’s strategic goal is to become the leading specialty
biopharmaceutical company that focuses on meeting the needs of the specialist
physician. Shire focuses its business on attention deficit and hyperactivity
disorder, human genetic therapies and gastrointestinal diseases as well as
opportunities in other therapeutic areas to the extent they arise through
acquisitions. Shire’s in-licensing, merger and acquisition efforts are
focused on products in specialist markets with strong intellectual property
protection and global rights. Shire believes that a carefully selected and
balanced portfolio of products with strategically aligned and relatively
small-scale sales forces will deliver strong results.

THE “SAFE HARBOR” STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION
REFORM ACT OF 1995

Statements included herein that are not historical facts are
forward-looking statements. Such forward-looking statements involve a number
of risks and uncertainties and are subject to change at any time. In the
event such risks or uncertainties materialize, Shire’s results could be
materially adversely affected. The risks and uncertainties include, but are
not limited to, risks associated with: the inherent uncertainty of research,
development, approval, reimbursement, manufacturing and commercialization of
Shire’s Specialty Pharmaceutical and Human Genetic Therapies products, as
well as the ability to secure and integrate new products for
commercialization and/or development; government regulation of Shire’s
products; Shire’s ability to manufacture its products in sufficient
quantities to meet demand; the impact of competitive therapies on Shire’s
products; Shire’s ability to register, maintain and enforce patents and other
intellectual property rights relating to its products; Shire’s ability to
obtain and maintain government and other third-party reimbursement for its
products; and other risks and uncertainties detailed from time to time in
Shire’s filings with the Securities and Exchange Commission.

Non GAAP Measures

This press release contains financial measures not prepared in accordance
with US GAAP. These measures are referred to as “Non GAAP” measures and
include: Non GAAP operating income; Non GAAP net income; Non GAAP diluted
earnings per ADS; effective tax rate on Non GAAP income from continuing
operations before income taxes and earnings of equity method investees
(“Effective tax rate on Non GAAP income”); Non GAAP Cost of product sales;
Non GAAP Research and development; Non GAAP Selling, general and
administrative; Non GAAP operating expenses; Non GAAP interest expense; Non
GAAP other income; and Non GAAP cash generation. These Non GAAP measures
exclude the effect of certain cash and non-cash items, both recurring and
non-recurring, that Shire’s management believes are not related to the core
performance of Shire’s business.

These Non GAAP financial measures are used by Shire’s management to make
operating decisions because they facilitate internal comparisons of Shire’s
performance to historical results and to competitors’ results. Shire’s
Remuneration Committee uses certain key Non GAAP measures when assessing the
performance and compensation of employees, including Shire’s executive
directors.

The Non GAAP measures are presented in this press release as Shire’s
management believe that they will provide investors with a means of
evaluating, and an understanding of how Shire’s management evaluates, Shire’s
performance and results on a comparable basis that is not otherwise apparent
on a US GAAP basis, since many one-time, infrequent or non-cash items that
Shire’s management believe are not indicative of the core performance of the
business may not be excluded when preparing financial measures under US GAAP.

These Non GAAP measures should not be considered in isolation from, as
substitutes for, or superior to financial measures prepared in accordance
with US GAAP.

The following items, including their tax effect, have been excluded from
both 2008 and 2009 Non GAAP earnings, and from our 2010 outlook:

    Amortization and asset impairments:

    - Intangible asset amortization and impairment charges; and

    - Other than temporary impairment of investments.

    Acquisitions and integration activities:

    - Upfront payments and milestones in respect of in-licensed and acquired
      products;

    - Costs associated with acquisitions, including transaction costs, and
      fair value adjustments on contingent consideration and acquired
      inventory;

    - Costs associated with the integration of companies; and

    - Incremental interest charges arising on the settlement of litigation
      with the former dissenting shareholders of TKT.

    Divestments, re-organizations and discontinued operations

    - Gains and losses on the sale of non-core assets;

    - Costs associated with restructuring and re-organization activities;

    - Termination costs;

    - Costs associated with the introduction of the new holding company; and

    - Income / (losses) from discontinued operations.

Depreciation, which is included in Cost of product sales, Research and
development and Selling, general and administrative costs in our US GAAP
results, has been separately disclosed for the presentation of 2008 and 2009
Non GAAP earnings. A reconciliation of Non GAAP financial measures to the
most directly comparable measure under US GAAP is presented on pages 22-26.

Sales growth at CER, which is a Non GAAP measure, is computed by
restating 2009 results using average 2008 foreign exchange rates for the
relevant period.

Average exchange rates for the year to December 31, 2009 were
$1.57:GBP1.00 and $1.39:EUR1.00 (2008: $1.85:GBP1.00 and $1.47:EUR1.00).

Average exchange rates for Q4 2009 were $1.63:GBP1.00 and $1.48:EUR1.00
(2008: $1.57:GBP1.00 and $1.32:EUR1.00).

2008 BALANCE SHEET RESTATEMENT

The consolidated financial information at December 31, 2008 has been
restated. The effect of this restatement was to reduce Shire’s non-current
deferred tax liabilities and decrease Shire’s accumulated deficit by $29
million
. The restatement does not affect Shire’s net income or cash flows for
the years and quarters ended December 31, 2009 and 2008.

TRADEMARKS

All trademarks defined as (R) and (TM) used in this press release are
trademarks of Shire plc or companies within the Shire group except for 3TC(R)
and ZEFFIX(R) which are trademarks of GSK, DYNEPO(TM) which is a trademark of
Sanofi Aventis, PENTASA(R) which is a trademark of Ferring A/S Corp, and
REMINYL(R), REMINYL XL(TM), RAZADYNE(R) and RAZADYNE(R) ER which are
trademarks of J&J outside the UK and Republic of Ireland(1). Certain
trademarks of Shire plc or companies within the Shire group are set out in
Shire’s Quarterly Report on Form 10-Q for the nine months ended September 30,
2009
.

1 REMINYL(R) and REMINYL XL(TM) are both trademarks of Shire in the UK
and Republic of Ireland.

    For further information please contact:

    Investor Relations  Clea Rosenfeld (Rest of the World) +44-1256-894-160
                        Eric Rojas (North America)          +1-617-551-9715

    Media               Jessica Mann (Rest of the World)   +44-1256-894-280
                        Jessica Cotrone (North America)     +1-617-613-4640
                        Matt Cabrey (North America)         +1-484-595-8248

SOURCE Shire Pharmaceutical


Source: newswire