Par Pharmaceutical Companies, Inc. hasentered into a settlement agreement with Reliant Pharmaceuticals, Inc. that resolves patent litigation related to Reliant’s Rythmol(R) SRproduct, thereby eliminating the inherent uncertainty and costs of litigation. Under the terms of the settlement, Par will have the right to introduce ageneric version of Rythmol(R) SR on January 1, 2011, or earlier under certaincircumstances. Propafenone extended release capsules are indicated to prolongthe time to recurrence of symptomatic atrial fibrillation in patients withoutstructural heart disease. The use of Propafenone ER capsules in patients withpermanent atrial fibrillation or in patients exclusively with atrial flutteror PSVT has not been evaluated. Propafenone ER capsules should not be used tocontrol ventricular rate during atrial fibrillation. The effect ofPropafenone ER capsules on mortality has not been determined. Rythmol(R) SRhad combined U.S. sales of approximately $119 million for the twelve monthsended September 2008, according to IMS Health. In accordance with the settlement agreement, all ongoing patent litigationbetween Reliant Pharmaceuticals and Par Pharmaceutical, Inc., in the U.S.District Court for the District of Delaware, has been dismissed.