ADDERALL XR for the treatment of ADHD

ADDERALL XR is the leading brand in the US ADHD market with an average market share of 26% in 2006 (2005: 25%). US ADHD market growth of 4% and the 1% increase in average market share contributed to an 8% increase in US prescriptions for ADDERALL XR for year to December 31, 2006 compared to the same period in 2005.

Sales of ADDERALL XR for the year to December 31, 2006 were $863.6 million, an increase of 18% compared to the same period in 2005 (2005: $730.8 million). Product sales growth was significantly higher than prescription growth due primarily to price increases in August 2005 and April 2006.

During October 2005 Shire filed a Citizen Petition with the FDA requesting that the FDA require more rigorous bioequivalence testing or additional clinical testing for generic or follow-on drug products that reference ADDERALL XR before they can be approved. Shire received correspondence from the FDA in April 2006 stating that, due to the complex issues raised requiring extensive review and analysis by the FDA’s officials, a decision cannot yet be reached by the FDA. The FDA did not provide any guidance as to when that decision may be reached.

On August 14, 2006 Shire and Barr announced that all pending litigation in connection with Barr’s Abbreviated New Drug Application (ANDA) and its attempt to market generic versions of Shire’s ADDERALL XR had been settled. As part of the settlement, Barr entered into consent judgments and agreed to permanent injunctions confirming the validity and enforceability of Shire’s US Patents Nos. 6,322,819 (the “‘819 Patent”), 6,601,300 (the “‘300 Patent”) and 6,913,768 (the “‘768 Patent”). Barr has also admitted that any generic product made under its ANDA would infringe the ‘768 patent. Under the terms of the settlement, Barr will not be permitted to market a generic version of ADDERALL XR in the US until April 1, 2009, except in certain limited circumstances, such as the launch of another party’s generic version of ADDERALL XR. No payments to Barr are involved in the settlement agreement.

In January 2006, Shire settled its ADDERALL XR patent infringement lawsuits with Impax. Under the terms of the settlement, Impax will be permitted to market generic versions of ADDERALL XR in the US no later than January 1, 2010 and will pay the Company a royalty from those sales. In certain situations, such as the launch of another generic version of ADDERALL XR, Impax may be permitted to enter the market as the Company’s authorized generic. No payments to Impax are involved in the settlement agreement.

Litigation proceedings concerning Shire’s ADDERALL XR patents are ongoing. Further information can be found in our filings with the US Securities and Exchange Commission, including our Annual Report on Form 10-K for the year to December 31, 2005 and our most recent Quarterly Report on Form 10-Q for the period ended September 30, 2006.

DAYTRANA for the treatment of ADHD

Following its launch in June 2006, DAYTRANA achieved a 2% share of the US ADHD market by December 31, 2006. Sales for the year to December 31, 2006 were $25.1 million, a level of sales which triggered the first of three potential $25.0 million sales milestone payments to Noven. This milestone, which was paid on February 14, 2007, has been capitalized as at December 31, 2006 and will be amortized over 10 years. Net sales for 2006 were impacted by the redemption of $14 million of coupons issued to support the product launch.

The addition of DAYTRANA, combined with growth in ADDERALL XR market share has helped Shire grow its total share of the US ADHD market to 28% at December 31, 2006 compared to 26% (which included a 1% share relating to ADDERALL) at December 31, 2005.

CARBATROL for the treatment of Epilepsy

US prescriptions for the year ending December 31, 2006 were down 9% compared to the same period in 2005. This was primarily due to a 6% decline in the US extended release carbamazepine prescription market. CARBATROL’s US market share remained at 42%.

Sales of CARBATROL for the year ending December 31, 2006 were $68.3 million, a decrease of 5% compared to the same period in 2005 (2005: $72.1 million). The fall in sales is due to the decrease in the extended release carbamezapine market and a reduction of pipeline inventory in 2006 compared to stocking in 2005, offset by price increases in October 2005 and July 2006.

In July 2006 Impax deployed a sales force to begin promotion of CARBATROL under a promotional services agreement for the US market signed in January 2006.

	10

Patent litigation proceedings with Nostrum Pharmaceuticals, Inc. and Corepharma LLC relating to CARBATROL are ongoing. Further information about the ongoing proceedings relating to the Company’s CARBATROL patents can be found in our filings with the US Securities and Exchange Commission, including our Annual Report on Form 10-K for the period ended December 31, 2005 and our most recent Quarterly Report on Form 10-Q for the period ended September 30, 2006.

PENTASA for the treatment of Ulcerative Colitis

US prescriptions for the year ending December 31, 2006 were up 2% compared to the same period in 2005 primarily due to a 4% increase in the US oral mesalamine prescription market. PENTASA’s US market share remained at 18%.

Sales of PENTASA for the year ending December 31, 2006 were $137.8 million, an increase of 1% compared to the same period in 2005 (2005: $136.1 million). Sales growth is marginally lower than prescription growth due to the lower levels of pipeline stocking in 2006, partly offset by the impact of price increases in January 2006 and November 2006.

REPLAGAL for the treatment of Fabry Disease

Sales for the year ending December 31, 2006 were $117.7 million, of which 88% were in Europe and 12% in the rest of the world. Sales for REPLAGAL for the year ending December 31, 2005 were $94.6 million, including pre-acquisition sales of $53.3 million. This represents a like-for-like increase in sales of 24% which was due to greater European coverage by an increased number of sales representatives and strong growth in the rest of the world market (excluding the US).

ELAPRASE for the treatment of Hunter Syndrome

ELAPRASE was launched in the US in August 2006 and has had a strong start with over 110 patients receiving treatment by the end of December 2006. In addition, through the pre-approval process, over 100 patients were receiving treatment in Europe by the end of the year. Sales reached $23.6 million by December 31, 2006.

XAGRID for the treatment of Thrombocythemia

Sales for the year ended December 31, 2006 were $53.3 million, an increase of 14% compared to the same period in 2005 (2005: $46.8 million). Expressed in transaction currencies (XAGRID is primarily sold in Euros), sales increased by 13% due mainly to strong growth in France and Spain. In addition there was a benefit of 1% from favorable exchange rate movements against the US dollar.

AGRYLIN sales in North America (US and Canada) were $7.5 million for the year ended December 31, 2006 (2005: $46.0 million). This reduction was expected following the approval of generic versions of AGRYLIN in the US market in April 2005.

FOSRENOL for the treatment of Hyperphosphatemia

US prescriptions for the year ending December 31, 2006 were up 34% compared to 2005 due to FOSRENOL increasing its average share of the total US phosphate binding market to 9% (2005: 7%) and market growth of 9% over the same period. FOSRENOL was launched in the US in January 2005.

US sales of FOSRENOL for the year ending December 31, 2006 were $40.2 million (2005: $53.0 million). The decrease in net sales of 16% compared to prescription growth of 34% is primarily due to destocking in 2006 compared to significant stocking of higher strength formulations at the end of 2005.

An agreement with Abbott was signed in December 2006 for the co-promotion of FOSRENOL in the US. Abbott's US renal care sales team will co-promote FOSRENOL with its own renal product ZEMPLAR. Shire’s US sales force will also continue to promote FOSRENOL. This agreement began in Q1 2007, and will continue for a term of five years.

European sales of FOSRENOL for the year ending December 31, 2006 were $4.6 million (2005: $0.5 million), giving total FOSRENOL sales worldwide of $44.8 million (2005: $53.5 million).

FOSRENOL has now been launched in Germany, France and a number of other European countries. Launches will continue throughout 2007 in the EU including the UK, Italy and Spain, subject to finalization of national licensing and conclusion of pricing and reimbursement negotiations.

On October 18, 2006 Health Canada granted a marketing license application for FOSRENOL. The Canadian launch is planned for Q2 2007.

	11

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3. Royalties

Royalty revenue remained constant at $242.9 million for the year to December 31, 2006 (2005: $242.9 million).

		Royalty(1)	Worldwide sales
Product	Royalties to Shire	Growth	by licensee(2) in 2006
	$M	%	$M
3TC	150.9	-6%	1,138
ZEFFIX	34.8	14%(3)	301
Other	57.2	9%	n/a
Total	242.9	0%

(1)	Compared with 2005.
(2)	GSK
(3)	The impact of foreign exchange movements has contributed +1% to the reported growth.

3TC

Royalties from sales of 3TC for the year to December 31, 2006 were $150.9 million, a decrease of 6% compared to the prior year (2005: $159.8 million).

Shire receives royalties from GSK on worldwide 3TC sales. GSK’s worldwide sales of 3TC for the year to December 31, 2006 were $1,138 million, a decrease of 6% compared to prior year (2005: $1,211 million). The nucleoside analogue market for HIV has continued to grow, however competitive pressures within the market have increased, leading to a decline in 3TC sales.

ZEFFIX

Royalties from sales of ZEFFIX for the year to December 31, 2006 were $34.8 million, an increase of 14% compared to the prior year (2005: $30.5 million).

Shire receives royalties from GSK on worldwide ZEFFIX sales. GSK’s worldwide sales of ZEFFIX for the year to December 31, 2006 were $301 million, an increase of 13% compared to prior year (2005: $266 million). This increase was mainly due to strong growth in the Korean, Japanese and Chinese markets.

OTHER

Other royalties are primarily in respect of REMINYL and REMINYL ER (known as RAZADYNE and RAZADYNE ER in the US), a product marketed worldwide (excluding the UK and the Republic of Ireland) by Janssen Pharmaceutical N.V. (Janssen), an affiliate of Johnson & Johnson. Shire has the exclusive marketing rights in the UK and the Republic of Ireland.

Sales of the REMINYL/ RAZADYNE range, for the symptomatic treatment of mild to moderately severe dementia of the Alzheimer’s type, continue to grow.

In June 2006 Janssen and Synaptech, Inc. filed a law suit against Barr for infringement of their patent rights relating to RAZADYNE ER as a result of Barr filing an ANDA with the FDA for a generic version of RAZADYNE ER. No court date has been set.

Barr and other companies have filed ANDAs with the FDA for generic versions of RAZADYNE and Janssen and Synaptech Inc. have filed law suits against some of those ANDA filers. The court date for the first of these proceedings is May 2007.

	12

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4. Financial details

Cost of product sales

For the year to December 31, 2006 the cost of product sales was 16% of product sales (2005: 16%). The cost of product sales for REPLAGAL in 2006 included a $47.0 million adjustment in respect of acquired inventories (2005: $41.9 million). This fair value adjustment increased Shire’s cost of product sales as a percentage of sales for the year ended December 31, 2006 by 3% (2005: 3%).

For the year to December 31, 2006 cost of product sales included a charge of $3.2 million for share based compensation under SFAS 123R (2005: $1.5 million).

Research and development (R&D)

R&D expenditure increased from $339.1 million in the year to December 31, 2005 to $386.9 million in the year to December 31, 2006, an increase of 14%. The increase was primarily due to:

• The addition of two significant R&D projects following the acquisition of TKT (ELAPRASE and GA- GCB); and
  
  
• Upfront payments made to Duramed and Warren of $25.0 million and $5.5 million, respectively.

Expressed as a percentage of total revenues, R&D expenditure was 22% for the year to December 31, 2006 (2005: 21%). In both periods payments were made to New River of $50 million for in-licensing VYVANSE. These payments have both been expensed in accordance with Shire’s accounting policy. The payments to New River, Duramed and Warren in the year to December 31, 2006 totalled $80.5 million, equivalent to 5% of total revenues. In the year to December 31, 2005 the $50.0 million payment to New River was equivalent to 3% of total revenues.

For the year to December 31, 2006 R&D included a charge of $5.4 million for share based compensation under SFAS 123R (2005: $2.9 million).

Selling, general and administrative (SG&A)

SG&A expenses increased from $655.5 million in the year to December 31, 2005 to $835.4 million in the year to December 31, 2006, an increase of 27%. As a percentage of product sales, SG&A expenses were 54% (2005: 49%).

The increase in SG&A expenses was expected, with additional expenditure required for:

• The promotion and launch of DAYTRANA (including an increase in the ADHD sales force);
  
  
• The recruitment of a new GI sales force in the US;
  
  
• The recruitment of new US and European sales forces to launch ELAPRASE; and
  
  
• Pre-launch activities relating to the 2007 launches of DYNEPO, LIALDA and VYVANSE.

For the year to December 31, 2006 SG&A included a charge of $34.4 million for share based compensation under SFAS 123R (2005: $24.8 million), representing 2% of total revenue (2005: 1%).

Depreciation and amortization

The depreciation charge for the year to December 31, 2006 was $43.3 million (2005: $29.2 million, including $6.5 million for impairments of property, plant and equipment). The amortization charge for the year to December 31, 2006 was $56.3 million (2005: $45.2 million). The increase in both depreciation and amortization is primarily due to the inclusion of a full year’s amortization and depreciation charge in respect of assets acquired through the TKT acquisition, together with the amortization of capitalized milestone payments for DAYTRANA following its launch in June 2006.

Intangible asset impairment

The charge for intangible asset impairments for the year to December 31, 2006 was $1.1 million (2005: $5.6 million). The impairment charge for the year to December 31, 2006 resulted from the decision to stop selling a non-core product.

The impairment charge for the year to December 31, 2005 resulted from the approval of generic versions of AGRYLIN and the decision not to support and promote certain non-core products.

Integration costs

	13

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For the year to December 31, 2006 the Company incurred $5.6 million of costs associated with the integration of the TKT business into the Shire group (2005: $9.7 million). This included retention payments for key staff of $3.0 million, IT costs of $1.2 million and other costs of $1.4 million.

Gain on sale of product rights

For the year to December 31, 2006 the Company recognized a pre-tax gain of $63.0 million (2005: $nil) on the disposal of ADDERALL to Duramed for $63.0 million in cash.

Interest income

For the year to December 31, 2006 the Company received interest income of $50.5 million (2005: $35.3 million). This income primarily related to interest received on Shire’s cash balances. Interest income for the year ending December 31, 2006 is higher than for the year ending December 31, 2005 primarily as a result of increases in US dollar interest rates.

Interest expense

For the year to December 31, 2006 the Company incurred interest expense of $26.4 million (2005: $12.0 million).

In both years this expense primarily relates to a provision for interest, which may be awarded by the Court in respect of amounts due to those ex-TKT shareholders who have requested appraisal of the acquisition consideration payable for their TKT shares. The trial date for the appraisal rights litigation has been set for April 23, 2007. Further information can be found in our filings with the US Securities and Exchange Commission, including our Annual Report on Form 10-K for the year to December 31, 2005 and our most recent Quarterly Report on Form 10-Q for the period ended September 30, 2006.

Other income, net

For the year to December 31, 2006 other income totaled $9.5 million. This included $4.6 million of investment income, foreign exchange gains of $3.2 million and $3.8 million of other income, offset by impairments of long-term investments of $2.1 million.

For the year to December 31, 2005 other income totaled $9.9 million. This included $4.3 million of investment income, a gain on sale of available-for-sale securities of $3.9 million, a gain on sale of the drug formulation business of $3.6 million and $1.5 million of other income, offset by impairments of long-term investments of $2.0 million and foreign exchange losses of $1.4 million.

Taxation

The effective rate of tax for the year to December 31, 2006 was 26.8% (2005: 27.5%, after excluding the impact of the $815.0 million write-off of in-process R&D in respect of the TKT acquisition). The effective rate has fallen by 0.7% as a result of a reduction in deferred taxes offset by an increase in current taxes as a result of additional tax contingencies of $187 million recognized in relation to ongoing tax audits. The reduction in deferred taxes was primarily due to the reversal of valuation allowances following changes in estimates as to the realization of certain deferred tax assets. Following this reversal of valuation allowances the net deferred tax asset has increased to $261.0 million at December 31, 2006 (December 31, 2005: $116.2 million). Realization of deferred tax assets is dependent upon generating sufficient taxable income to utilize such assets. Although realization of these assets is not assured, it is more likely than not that the amount recognized will be realized.

Equity in earnings/(losses) of equity method investees

Net earnings of equity method investees of $5.7 million were recorded for the year to December 31, 2006 (2005: net losses of $1.0 million). This comprised earnings of $6.2 million from the 50% share of the antiviral commercialization partnership with GSK in Canada (2005: $5.3 million), offset by losses of $0.5 million being the Company’s share of losses in the GeneChem and EGS Healthcare Funds (2005: losses of $6.3 million).

	14

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FINANCIAL INFORMATION

TABLE OF CONTENTS

		Page
Unaudited US GAAP Consolidated Balance Sheets		16
Unaudited US GAAP Consolidated Statements of Operations		18
Unaudited US GAAP Consolidated Statements of Cash Flows		20
Selected Notes to the Unaudited US GAAP Financial Statements		23
(1) Earnings per share		23
(2) Analysis of revenues		24
Non GAAP reconciliation of income/(loss) from ongoing operations, net income and numerator for diluted EPS		26
Non GAAP reconciliation of reported EPS		27

	15

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Unaudited US GAAP results for the years to December 31, 2006 and 2005
Consolidated Balance Sheets

				1 Adjusted
				and restated
		December 31,		December 31,
		2006		2005
		$M		$M
ASSETS
Current assets:
Cash and cash equivalents		1,126.9		656.5
Restricted cash		29.8		30.6
Short-term investments		-		6.9
Accounts receivable, net		310.8		329.9
Inventories		131.1		136.0
Deferred tax asset		105.7		54.2
Prepaid expenses and other current assets		106.0		98.1
Total current assets		1,810.3		1,312.2
Non current assets:
Investments		55.8		50.2
Property, plant and equipment, net		292.8		234.0
Goodwill		237.4		225.6
Other intangible assets, net		762.4		729.3
Deferred tax asset		155.3		62.0
Other non-current assets		12.4		42.9
Total assets		3,326.4		2,656.2
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued expenses		566.1		431.8
Liability to dissenting shareholders		452.3		427.6
Other current liabilities		313.6		106.0
Total current liabilities		1,332.0		965.4
Non-current liabilities		52.1		43.5
Total liabilities		1,384.1		1,008.9

¹ Retrospectively adjusted following the adoption of SFAS 123R, and restated for the correction to the value ascribed to IPR&D acquired with the acquisition of TKT, as explained on page 4.

	16

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Unaudited US GAAP results for the years to December 31, 2006 and 2005
Consolidated Balance Sheets (continued)

					1 Adjusted
					and restated
		December 31,			December 31,
		2006			2005
		$M			$M
Shareholders’ equity:
Common stock of 5p par value: 750 million shares
authorized; and 506.7 million shares issued and
outstanding (2005: 750 million shares authorized; and
495.7 million shares issued and outstanding)		43.7			42.7
Exchangeable shares: 1.3 million shares issued and
outstanding (2005: 2.2 million)		59.4			101.2
Treasury stock		(94.8	)		(2.8	)
Additional paid-in capital		1,493.2			1,327.5
Accumulated other comprehensive income		87.8			71.5
Retained earnings		353.0			107.2
Total shareholders’ equity		1,942.3			1,647.3
Total liabilities and shareholders’ equity		3,326.4			2,656.2

¹ Retrospectively adjusted following the adoption of SFAS 123R, and restated for the correction to the value ascribed to IPR&D acquired with the acquisition of TKT, as explained on page 4.

	17

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Unaudited US GAAP results for the 3 months and years to December 31, 2006 and 2005
Consolidated Statements of Operations

											1 Adjusted and
					1 Adjusted						restated
		3 months to			3 months to			12 months to			12 months to
		December 31,			December 31,			December 31,			December 31,
		2006			2005			2006			2005
		$M			$M			$M			$M
Revenues:
Product sales		427.6			397.5			1,535.8			1,327.7
Royalties		61.1			61.8			242.9			242.9
Other revenues		8.3			5.6			17.8			28.7
Total revenues		497.0			464.9			1,796.5			1,599.3
Costs and expenses:
Cost of product sales		62.4			79.1			247.7			215.5
Research and development		82.9			85.9			386.9			339.1
Selling, general and administrative		241.3			171.9			835.4			655.5
Depreciation and amortization		27.3			24.3			99.6			74.4
Intangible asset impairment		1.1			2.6			1.1			5.6
Reorganization costs		-			-			-			9.4
Integration costs		1.7			6.2			5.6			9.7
In-process R&D write-off		-			-			-			815.0
Gain on sale of product rights		-			-			(63.0	)		-
Total operating expenses		416.7			370.0			1,513.3			2,124.2
Operating income/(loss)		80.3			94.9			283.2			(524.9	)
Interest income		13.7			7.4			50.5			35.3
Interest expense		(7.3	)		(7.3	)		(26.4	)		(12.0	)
Other income, net		3.6			6.0			9.5			9.9
Total other income, net		10.0			6.1			33.6			33.2
Income/(loss) from continuing
operations before income taxes
and equity in earnings /(losses) of
equity method investees		90.3			101.0			316.8			(491.7	)
Income taxes		(21.9	)		(29.9	)		(84.9	)		(88.8	)
Equity in earnings/(losses) of
equity method investees		0.2			(1.1	)		5.7			(1.0	)
Income/(loss) from continuing
operations		68.6			70.0			237.6			(581.5	)
Gain/(loss) from discontinued
operations (net of income tax
expense of $nil and $nil)		-			(1.0	)		40.6			3.1
Net income/(loss)		68.6			69.0			278.2			(578.4	)

¹ Retrospectively adjusted following the adoption of SFAS 123R, and restated for the correction to the value ascribed to IPR&D acquired with the acquisition of TKT, as explained on page 4.

	18

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Unaudited US GAAP results for the 3 months and years to December 31, 2006 and 2005
Consolidated Statements of Operations (continued)

1 Adjusted and

1 Adjusted

restated

3 months to

3 months to

12 months to

12 months to

December 31,

December 31,

December 31,

December 31,

2006

2005

2006

2005

Earnings per share - basic

Income/(loss) from continuing

operations

13.6

c

14.0

c

47.2

c

(116.2

c)

Gain/(loss) on disposition of

discontinued operations

-

(0.2

c)

8.1

c

0.6

c

Earning/(loss) per ordinary share -

basic

13.6

c

13.8

c

55.3

c

(115.6

c)

Earnings per share – diluted

Income/(loss) from continuing

operations

13.4

c

13.9

c

46.6

c

(116.2

c)

Gain/(loss) on disposition of

discontinued operations

-

(0.2

c)

8.0

c

0.6

c

Earnings/(loss) per ordinary share

- diluted

13.4

c

13.7

c

54.6

c

(115.6

c)

Earnings/(loss) per ADS - diluted

40.2

c

41.1

c

163.8

c

(346.8

c)

Weighted average number of

No. of shares

No. of shares

No. of shares

No. of shares

shares:

Millions

Millions

Millions

Millions

Basic

502.5

501.7

503.4

500.2

Diluted

510.3

504.1

509.3

500.2

¹ Retrospectively adjusted following the adoption of SFAS 123R, and restated for the correction to the value ascribed to IPR&D acquired with the acquisition of TKT, as explained on page 4.

	19

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Unaudited US GAAP results for the 3 months and years to December 31, 2006 and 2005
Consolidated Statements of Cash Flows

											1 Adjusted
					1 Adjusted						and restated
		3 months to			3 months to			12 months to			12 months to
		December 31,			December 31,			December 31,			December 31,
		2006			2005			2006			2005
		$M			$M			$M			$M
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income/(loss)		68.6			69.0			278.2			(578.4	)
Adjustments to reconcile net
income/(loss) to net cash provided by
operating activities:
Depreciation and amortization:
- in cost of product sales		1.3			0.8			4.8			3.5
- in other costs and expenses		26.8			23.9			99.1			68.0
Share based compensation		17.2			8.4			43.0			29.2
In-process R&D write-off		-			-			-			815.0
Write-down of long-term assets		2.0			3.1			3.8			14.1
Gain on sale of long-term assets		(0.5	)		-			(0.3	)		(3.9	)
Gain on sale of drug formulation
business		-			(3.6	)		-			(3.6	)
Equity in (earnings)/losses of equity
method investees		(0.2	)		1.1			(5.7	)		1.0
Gain on sale of product rights		-			-			(63.0	)		-
Loss/(gain) on disposition of
discontinued operations		-			1.1			(40.6	)		(3.1	)
Changes in operating assets and
liabilities, net of acquisitions:
Decrease/(increase) in accounts
receivable		9.0			(46.0	)		27.6			(79.9	)
Increase in sales deduction accrual		7.2			4.2			24.8			18.6
(Increase)/decrease in inventory		(3.5	)		9.9			7.2			8.6
Decrease/(increase) in prepayments
and other current assets		4.2			(15.7	)		(6.2	)		(40.1	)
(Increase)/decrease in other assets		(2.3	)		0.1			0.7			(0.7	)
Movement in deferred taxes		(147.4	)		(12.0	)		(142.4	)		22.3
Increase in accounts and notes
payable and other liabilities		201.9			114.8			297.0			122.9
Increase/(decrease) in deferred
revenue		4.5			(3.0	)		(1.9	)		(13.5	)
Returns on investments from joint
ventures		-			-			5.8			4.7
Cash flows used in discontinued
operations		-			(1.1	)		-			(0.4	)
Net cash provided by operating
activities(A)		188.8			155.0			531.9			384.3

¹ Retrospectively adjusted following the adoption of SFAS 123R, and restated for the correction to the value ascribed to IPR&D acquired with the acquisition of TKT, as explained on page 4.

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Unaudited US GAAP results for the 3 months and years to December 31, 2006 and 2005
Consolidated Statements of Cash Flows

					1 Adjusted						1 Adjusted
		3 months to			3 months to			12 months to			12 months to
		December 31,			December 31,			December 31,			December 31,
		2006			2005			2006			2005
		$M			$M			$M			$M
CASH FLOWS FROM INVESTING
ACTIVITIES:
Movements in short-term investments		-			15.4			6.9			366.7
Movements in restricted cash		(0.3	)		(0.5	)		0.7			(0.8	)
Purchase of subsidiary undertaking,
net of cash acquired		-			(14.4	)		(0.8	)		(1,114.0	)
Expenses of acquisitions		-			(13.4	)		-			(37.5	)
Purchase of long-term investments		(0.2	)		-			(9.8	)		(7.7	)
Purchase of property, plant and
equipment		(29.1	)		(28.6	)		(100.3	)		(86.2	)
Purchase of intangible assets		(6.0	)		(0.4	)		(58.8	)		(20.5	)
Proceeds from sale of long-term
investments		-			-			-			10.1
Proceeds from sale of property, plant
and equipment		-			-			0.9			0.1
Proceeds from sale of intangible
assets		0.4			-			0.4			-
Proceeds from sale of drug
formulation business		-			0.6			-			0.6
Proceeds from sale of product rights		-			-			63.0			-
Proceeds from loan repaid by IDB		-			-			70.6			-
Loans made to IDB					-			-			(43.2	)
Proceeds from sale of the vaccines
business		-			-			-			92.2
Returns of equity investments		-			-			0.3			3.8
Net cash used in investing activities(B)		(35.2	)		(41.3	)		(26.9	)		(836.4	)

¹ Retrospectively adjusted following the adoption of SFAS 123R.

	21

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Unaudited US GAAP results for the 3 months and years to December 31, 2006 and 2005
Consolidated Statements of Cash Flows

					1 Adjusted						1 Adjusted
		3 months to			3 months to			12 months to			12 months to
		December 31,			December 31,			December 31,			December 31,
		2006			2005			2006			2005
		$M			$M			$M			$M
CASH FLOWS FROM FINANCING
ACTIVITIES:
Redemption of 2% convertible loan
notes		-			-			(0.1	)		-
Proceeds from exercise of options		48.7			6.7			81.9			37.1
Excess tax benefit of share based
compensation, charged directly to
equity		-			0.4			-			0.2
Payment of dividend		(9.8	)		(9.4	)		(32.4	)		(28.5	)
Payments to acquire treasury stock		(23.6	)		(2.5	)		(92.0	)		(2.5	)
Net cash provided by/(used in)
financing activities(C)		15.3			(4.8	)		(42.6	)		6.3
Effect of foreign exchange rate
changes on cash and cash
equivalents (D)		2.8			(2.2	)		8.0			(9.2	)
Net increase/(decrease) in cash and
cash equivalents(A)+(B) +(C) +(D)		171.7			106.7			470.4			(455.0	)
Cash and cash equivalents at
beginning of period		955.2			549.8			656.5			1,111.5
Cash and cash equivalents at end of
period		1,126.9			656.5			1,126.9			656.5

¹ Retrospectively adjusted following the adoption of SFAS 123R.

 

	22

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US GAAP results for the 3 months and years to December 31, 2006 and 2005
Selected Notes to the Unaudited US GAAP Financial Statements

(1) Earnings per share

									1 Adjusted
				1 Adjusted					and restated
		3 months to		3 months to			12 months to		12 months to
		December 31,		December 31,			December 31,		December 31,
		2006		2005			2006		2005
		$M		$M			$M		$M
Income/(loss) from continuing
operations		68.6		70.0			237.6		(581.5	)
Gain/(loss) on disposition of
discontinued operations		-		(1.0	)		40.6		3.1
Numerator for basic and diluted
EPS		68.6		69.0			278.2		(578.4	)
Weighted average number of		No. of shares		No. of shares			No. of shares		No. of shares
shares:		Millions		Millions			Millions		Millions
Basic		502.5		501.7			503.4		500.2
Effect of dilutive shares:
Stock options		7.1		2.0			5.3		-
Warrants		0.7		0.4			0.6		-
Diluted		510.3		504.1			509.3		500.2

¹Retrospectively adjusted following the adoption of SFAS 123R, and restated for the correction to the value ascribed to IPR&D acquired with the acquisition of TKT, as explained on page 4.

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

		(1) 3 months to		(1) 3 months to		(1) 12 months to		(2) 12 months to
		December 31,		December 31,		December 31,		December 31,
		2006		2005		2006		2005
		No. of shares		No. of shares		No. of shares		No. of shares
		Millions		Millions		Millions		Millions
Stock options		2.6		11.2		7.7		20.7
Warrants		-		-		-		1.3
		2.6		11.2		7.7		22.0

(1)	Not included as the exercise price exceeded the Company’s average share price during the calculation period.
(2)	Not included as the Company made a loss during the calculation period.

	23

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Unaudited US GAAP results for the 3 months to December 31, 2006 and 2005
Selected Notes to the US GAAP Financial Statements (continued)

(2) Analysis of revenues

									3 months to
		3 months to		3 months to		3 months to			December 31,
		December 31,		December 31,		December 31,			2006
		2006		2005		2006			% of total
		$M		$M		% change			revenue
Net product sales:
CNS
ADDERALL XR		229.2		214.0		+7	%		46	%
ADDERALL		-		12.1		n/	a		-
DAYTRANA		15.2		-		n/	a		3	%
CARBATROL		17.6		17.3		+2	%		5	%
		262.0		243.4		+8	%		54	%
GI
PENTASA		38.3		42.3		-9	%		8	%
COLAZIDE		2.4		2.1		+14	%		-
		40.7		44.4		-8	%		8	%
GP
XAGRID		13.8		10.4		+33	%		3	%
FOSRENOL		18.7		29.0		-36	%		4	%
CALCICHEW		12.3		10.4		+18	%		2	%
REMINYL/REMINYL XL		6.5		4.1		+59	%		1	%
SOLARAZE		3.4		3.8		-11	%		1	%
VANIQA		2.2		2.0		+10	%		-
LODINE		3.1		3.1		-			1	%
		60.0		62.8		-4	%		12	%
HGT
REPLAGAL		31.2		25.4		+23	%		6	%
ELAPRASE		19.3		-		n/	a		4	%
		50.5		25.4		n/	a		10	%
Other product sales		14.4		21.5		-33	%		3	%
Total product sales		427.6		397.5		+8	%		87	%
Royalty income:
3TC		36.6		40.4		-9	%		7	%
ZEFFIX		9.4		8.5		+11	%		2	%
Others		15.1		12.9		+17	%		3	%
		61.1		61.8		-1	%		12	%
Other		8.3		5.6		+48	%		1	%
Total revenues		497.0		464.9		+7	%		100	%

	24

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Unaudited US GAAP results for the years to December 31, 2006 and 2005
Selected Notes to the US GAAP Financial Statements (continued)

(2) Analysis of									12 months to
revenues (continued)		12 months to		12 months to		12 months to			December 31,
		December 31,		December 31,		December 31,			2006
		2006		2005		2006			% of total
Net product sales		$M		$M		% change			revenue
CNS
ADDERALL XR		863.6		730.8		+18	%		48	%
ADDERALL		23.6		43.1		-45	%		1	%
DAYTRANA		25.1		-		n/	a		1	%
CARBATROL		68.3		72.1		-5	%		5	%
		980.6		846.0		16	%		55	%
GI
PENTASA		137.8		136.1		+1	%		8	%
COLAZIDE		9.2		8.6		+7	%		1	%
		147.0		144.7		+2	%		9	%
GP
AGRYLIN/XAGRID
N AMERICA		7.5		46.0		-84	%		-
ROW		53.3		46.8		+14	%		3	%
FOSRENOL		44.8		53.5		-16	%		2	%
CALCICHEW		45.5		38.7		+18	%		3	%
REMINYL/REMINYL XL		21.5		13.5		+59	%		1	%
SOLARAZE		13.2		12.5		+6	%		1	%
VANIQA		7.9		6.3		+25	%		-
LODINE		12.6		12.6		-			1	%
		206.3		229.9		-10	%		11	%
HGT
REPLAGAL*		117.7		41.3		n/	a		7	%
ELAPRASE		23.6		-		n/	a		1	%
		141.3		41.3		n/	a		8	%
Other product sales		60.6		65.8		-8	%		3	%
Total product sales		1,535.8		1,327.7		+16	%		86	%
Royalty income:
3TC		150.9		159.8		-6	%		8	%
ZEFFIX		34.8		30.5		+14	%		2	%
Others		57.2		52.6		+9	%		3	%
		242.9		242.9		-			13	%
Other		17.8		28.7		-38	%		1	%
Total revenues		1,796.5		1,599.3		12	%		100	%

* REPLAGAL was acquired in the acquisition of TKT which was completed in July 2005. Total sales for REPLAGAL, including pre-acquisition sales for the year to December 31, 2005 were $94.6 million. Including pre-acquisition sales for the year to December 31, 2005, product sales growth was 24% for REPLAGAL.

	25

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Non GAAP reconciliation of income/(loss) from ongoing operations, net income and numerator for
diluted EPS for the 3 months and years to December 31, 2006 and 2005

											1 Adjusted and
					1 Adjusted						restated
		3 months to			3 months to			12 months to			12 months to
		December 31,			December 31,			December 31,			December 31,
		2006			2005			2006			2005
		$M			$M			$M			$M
Non GAAP reconciliation of
income/(loss) from ongoing
operations(2)
Income/(loss) from ongoing		90.3			101.0			316.8			(491.7	)
operations(2)
Add back:
TKT in-process R&D write-off		-			-			-			815.0
TKT cost of product sales fair
value adjustment		-			24.7			47.0			41.9
New River milestone payment		-			-			50.0			-
New River upfront payment		-			-			-			50.0
Warren upfront payment		-			-			5.5			-
Duramed upfront payment		-			-			25.0			-
New listed holding company costs		-			-			-			4.5
Reorganization costs		-			-			-			9.4
TKT integration costs		1.7			6.2			5.6			9.7
Gain on disposal of drug
formulation business		-			(3.6	)		-			(3.6	)
Gain on sale of product rights		-			-			(63.0	)		-
Non GAAP adjustment to
income/(loss) from ongoing
operations		1.7			27.3			70.1			926.9
Non GAAP income from ongoing
operations(2)		92.0			128.3			386.9			435.2
Non GAAP reconciliation of
net income and numerator
for diluted EPS
Net income/(loss)		68.6			69.0			278.2			(578.4	)
Non GAAP adjustment to
income/(loss) from ongoing
operations(2)		1.7			27.3			70.1			926.9
Taxes on above adjustments		(0.5	)		(7.7	)		(18.8	)		(31.4	)
(Gain)/loss on disposition of
discontinued operations		-			1.0			(40.6	)		(3.1	)
Non GAAP adjustment to net
income/(loss) and numerator for
diluted EPS		1.2			20.6			10.7			892.4
Non GAAP net income and
numerator for non GAAP diluted
EPS		69.8			89.6			288.9			314.0

¹ Retrospectively adjusted following the adoption of SFAS 123R, and restated for the correction to the value ascribed to IPR&D acquired with the acquisition of TKT, as explained on page 4.

² Income/(loss) from continuing operations before income taxes and equity in earnings/ (losses) of equity method investees.

	26

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Non GAAP reconciliation of reported EPS for the 3 months and the years
to December 31, 2006 and 2005

											1 Adjusted and
					1 Adjusted						restated
		3 months to			3 months to			12 months to			12 months to
		December 31,			December 31,			December 31,			December 31,
		2006			2005			2006			2005
Earnings/(loss) per ordinary share-
diluted		13.4	c		13.7	c		54.6	c		(115.6	c)
(Gain)/loss on disposition of
discontinued operations		-			0.2	c		(8.0	c)		(0.6	c)
Diluted EPS from continuing
operations		13.4	c		13.9	c		46.6	c		(116.2	c)
Change in denominator due to
effect on dilution of non GAAP
adjustments(2)		-			-			-			0.3	c
		13.4	c		13.9	c		46.6	c		(115.9	c)
Add back:
TKT in-process R&D write-off		-			-			-			162.5	c
TKT cost of product sales fair
value adjustment		-			4.9	c		9.3	c		8.4	c
New River milestone payment		-			-			9.8	c		-
New River upfront payment		-			-			-			10.0	c
Warren upfront payment		-			-			1.1	c		-
Duramed upfront payment		-			-			4.9	c		-
New listed holding company costs		-			-			-			0.9	c
Reorganization costs		-			-			-			1.8	c
TKT integration costs		0.3	c		1.2	c		1.1	c		1.9	c
Gain on disposal of drug
formulation business		-			(0.7	c)		-			(0.7	c)
Gain on sale product rights		-			-			(12.4	c)		-
Taxes on above adjustments		(0.1	c)		(1.5	c)		(3.7	c)		(6.3	c)
Non GAAP – diluted EPS per
ordinary share		13.6	c		17.8	c		56.7	c		62.6	c
Non GAAP – diluted EPS per ADS		40.8	c		53.4	c		170.1	c		187.8	c
Total non GAAP adjustments –
diluted EPS per ordinary share		0.2	c		4.1	c		2.1	c		178.2	c

¹ Retrospectively adjusted following the adoption of SFAS 123R, and restated for the correction to the value ascribed to IPR&D acquired with the acquisition of TKT, as explained on page 4.

² As the items added back to the net loss for the year to December 31, 2005 result in non GAAP net income for the year to December 31, 2005, the options and warrants become dilutive under this measure and are therefore included in the calculation of the denominator for non GAAP EPS.

- ENDS -

	27

*     *     *

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[SHIRE LOGO] New River Acquisition and Full Year 2006 Results 20 February 2007

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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 affected. The risks and uncertainties include, but are not limited to: risks associated with the inherent uncertainty of pharmaceutical research, product development, manufacturing and commercialization; the impact of competitive products, including, but not limited to the impact of those on Shire's ADHD franchise; patents, including but not limited to, legal challenges relating to Shire's ADHD franchise; government regulation and approval, including but not limited to the expected product approval dates of SPD503 (guanfacine extended release) (ADHD), SPD465 (extended release of mixed amphetamine salts) (ADHD), and VYVANSE (NRP104) (lisdexamfetamine dimesylate) (ADHD), including its scheduling classification by the Drug Enforcement Administration in the United States; Shire's ability to complete, and achieve anticipated benefits from the acquisition of New River; Shire's ability to secure new products for commercialization and/or development; and other risks and uncertainties detailed from time to time in Shire's filings with the Securities and Exchange Commission. Goldman Sachs International, Morgan Stanley and Deutsche Bank, which are authorized and regulated in the United Kingdom by the Financial Services Authority, are acting exclusively for Shire in relation to the acquisition and no one else and will not be responsible to anyone other than Shire for providing the protections afforded to its customers or for providing advice in relation to the acquisition or in relation to any transaction, arrangement or other matter referred to in this announcement. 2

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Agenda o Acquisition Rationale Matthew Emmens o Acquisition Financing Angus Russell o 2006 Year End Review Matthew Emmens o 2006 Financial Results Angus Russell o Concluding Remarks Matthew Emmens o Questions & Answers All 3

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Acquisition Rationale Matthew Emmens Chief Executive

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Shire agrees to buy New River for $2.6 billion to gain control of VYVANSE - future flagship ADHD product [NEW RIVER PHARMACEUTICALS LOGO] [VYVANSE LOGO]

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Why New River o Logical strategic move o Innovative drug - the next generation of ADHD treatment o Attractiveness of the ADHD market 6

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New River Acquisition Terms o All cash transaction o $64 per share (approximately $2.6 billion total) o 10% premium to New River' closing price on 16 February 2007 o 14% average price over the last 4 weeks prior to closing date o RJ Kirk, New River's CEO, who beneficially owns 50.2% of the total outstanding shares of New River common stock has agreed pursuant to a tender and support agreement with Shire that he will tender his shares in the tender offer o Subject to shareholder and regulatory approvals - anticipated to close by the end of Q2 2007 o Retain our financial flexibility to make further acquisitions 7

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Rationale o Logical strategic move o Transition from ADDERALL XR o Gain full economic benefit of the drug o Significantly enhances Shire's EPS growth from late 2009 o Fully control development and commercialization strategy o Further studies in ADHD, additional product indications o Adds to Shire's product pipeline and broadens technology platform 8

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Rationale o Unique drug - next generation of ADHD treatment o VYVANSE innovative and future flagship product for ADHD o Favorable therapeutic profile; long acting, lower abuse potential o Confidence in FDA outcome o Strong IP until 2024 o Attractiveness of the ADHD market o 6% potential annual US prescription growth o Adult market opportunities o Europe - plan to file VYVANSE in 2009 9

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VYVANSE provides duration of effect throughout the day Change in LS Mean Score at Endpoint From Baseline on Conners' Parent Rating Scale (CPRS) Across the Day Percentage Change ~10 AM ~2 PM ~6 PM 0 -10 -10.3 -8.9 -7.7 -20 -30 -40 -50 -51.8* -51.5* -48.2* -60 VYVANSE Placebo The CPRS was used to assess the duration of therapeutic response in 285 patients by separately analyzing the assessments performed per protocol in the morning (~10 AM), afternoon (~2 PM), and evening (~6 PM). *P less than .0001 vs placebo. Data on file. Shire US Inc. Median daily dosing time was between 7:30 AM and 8 AM. 10

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US ADHD Prevalence and Treatment Pediatric Patients (4-17)* Adult Patients* Patients (millions) 4.9 9.9 4.0 2.4 Prevalence Treated * 2004 NHIS (National Health Interview Survey, given by CDC); Kessler et al, 2005 11

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Growth in European ADHD market Circa $200 million market growing at CAGR > 70% and likely to more than double by 2010 Approved ADHD Therapies $'s (000s) 50,000 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2002 2002 2002 2002 2003 2003 2003 2003 2004 2004 2004 2004 2005 2005 2005 2005 Q1 Q2 Q3 2006 2006 2006 EUROPE GERMANY UNITED KINGDOM SPAIN SWEDEN FRANCE SWITZERLAND IRELAND BENELUX o Source: IMS 12

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Scientific efforts in ADHD advancing dramatically across Europe o Diagnosis of ADHD evolving in Europe o Increasing adoption of US diagnostic criteria (DSM-IV*) o ADHD treatment guidelines being developed and communicated o Pan - European Guidelines o NICE - 2000; 2006; 2008/09 (planned) o British Association of Psychopharmacology - 2006 (ADHD in Adults) o Increased clinical research in ADHD in Europe o Germany, UK, Netherlands leading the way * DSM-IV = Diagnostic and Statistical Manual of Mental Health Disorders 13

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Acquisition Financing Angus Russell Chief Financial Officer

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Transaction Financing o All cash transaction valued at $2.6bn to be funded by cash: o Committed new bank facilities of $2.3bn o Existing $700 million facilities to be cancelled o Placing of new ordinary shares to raise approximately $800 million o Executed by way of accelerated book built private placement to certain institutional investors o Launched immediately o Represents up to 7.5% of Shire's market value* *Based on closing price of Shire shares on LSE on February 19, 2007 of (pound)10.75 15

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Financial model based on following assumptions: o Achievement of leading US ADHD market share o VYVANSE EU Launch in 2010/2011 o Probability risk adjusted value for NRP290/409 o Cost savings (COGS, G&A) of approximately $25 million per annum o Full US tax rate of 37% o Minimal level of tax losses 16

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The Next Generation, Prodrug Stimulant for ADHD........ 17

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2006 Year End Review Matthew Emmens Chief Executive

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2006 Financial Highlights o Product sales up 16% to $1,536 million o Total revenues up 12% to $1,797 million o Cash and cash equivalents up $470 million o Dividends up 15% 19

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2006 Highlights - Executing on Strategy o Expansion of the business through significant advancement of our late stage pipeline o ADHD o VYVANSE - Approvable received - launch planned Q2 2007 o DAYTRANA - transdermal patch, successful US launch in progress o SPD503 - non-stimulant for pediatric - June 24, 2007 o SPD465 - long-acting stimulant for adults - May 21, 2007 o GI o LIALDA / MEZAVANT - launch planned Q2 2007 o Renal o FOSRENOL - now launched in Germany and France; to be launched in UK, Spain and Italy in 2007 o US co-promote agreement with Abbott Laboratories - effective as of February 2007 o DYNEPO - Q2 07 European launch planned o Human Genetic Therapies o ELAPRASE - US and European launches in progress: 245 patients globally on therapy at the end January 2007 o REPLAGAL - Approval received in Japan - launch planned for Q2 2007 20

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Executing on strategy o Early stage pipeline to develop future product candidates o GA-GCB: phase 3 clinical program initiated in Gaucher disease o Three enzyme replacement projects advanced to pre-clinical development o Sanfililppo (Mucopolysaccharidosis IIIA) o Metachromatic Leukodystrophy o Hunter syndrome CNS o SPD500 (tissue protective cytokines pre-clinical): in-licensed from Warren Pharmaceuticals for renal and genetic disease areas o SPD493 (Valrocemide Phase 1): in-licensed from Yissum Research and Development Company for CNS disorders o New New SPD491: once-a-day, non-opiate, transdermal analgesic with the goal of nonscheduled labelling to treat moderate to severe pain o New New SPD535: pre-clinical evaluation of a novel compound for the treatment of platelet reduction 21

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2006 Financial Results Angus Russell Chief Financial Officer

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Total Revenues +12% +16% 2006 2005 $m $m ------- ------- Product Sales 1,535.8 1,327.7 Royalties 242.9 242.9 Other Revenue 17.8 28.7 ------- ------- Total Revenues 1,796.5 1,599.3 23

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2006 2005 Sales US RX* $m $m Growth Growth -------------------------------------------------- ADDERALL XR 863.6 730.8 +18% +8% PENTASA 137.8 136.1 +1% +2% REPLAGAL 117.7 **94.6 +24% N/A CARBATROL 68.3 72.1 -5% -9% XAGRID*** 53.3 46.8 +14% N/A FOSRENOL 44.8 53.5 -16% +34% DAYTRANA 25.1 N/A N/A N/A ELAPRASE 23.6 N/A N/A N/A * Source: IMS Data ** Includes pre-acquisition sales of $53.3m *** worldwide sales excluding US and Canada 24

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Royalties 2006 2005 Growth $m $m ------------------------------------------------------ 3TC 150.9 159.8 -6% ZEFFIX 34.8 30.5 +14%* Other** 57.2 52.6 +9% Total 242.9 242.9 0% * Foreign exchange movements have contributed +1% to reported growth ** Includes REMINYL/RAZADYNE 25

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Financial Ratios (on a non-GAAP basis, excluding FAS123R) 2006 2005 COGS : Product sales 13% 13% Gross margin 87% 87% R&D : Revenues 17% 18% SG&A (excl. D&A) : Product sales 52% 48% Operating margin 22% 27% This slide contains non GAAP financial measures. Management believes that the presentation of these non GAAP financial measures provide useful information to investors regarding Shire's performance as the excluded items are not indicative of the ongoing business in 2006 & 2005. 26

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Net Income/EPS 2006 2005(1) -------- -------- Net income ($m) - GAAP 278.2 (578.4) - Adjustments 10.7 892.4 -------- -------- - Non GAAP(2) 288.9 314.0 -8% EPS (diluted): - ADS 163.8c (346.8c) Non GAAP EPS (diluted)(2) - ADS 170.1c 187.8c -9% Non GAAP EPS (diluted)(2) - ADS (excluding FAS123R) 187.2c 201.4c -7% (1) Adjusted to reflect retrospective adoption of SFAS 123R and restated for the correction to the value of TKT's IPR&D (2) These are non GAAP financial measures. They exclude items that management believe are not indicative of the ongoing business in 2006 & 2005. 27

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Cash flow -2006 Millions of USD Cash generation +581 Tax / interest +39 -109 fixed asset purchases -59 Product milestones -81 R+D payments Adderall IR Sale +63 IDB loan repayment +71 -42 Equity financing --------------------------------- Net Cash at 31.12.05 694 Cash Surplus 31.12.06 463 --------------------------------- Net Cash at 31.12.06 1,157 Provision for amounts due (452) for appraisal rights Restricted cash (30) --------------------------------- "Free Cash" at 31/12/06 675 --------------------------------- Cash surplus for 2006 (1) : + 463 (1) Cash & cash equivalents up $470m less short term investments down $7m. 28

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2006 Actual v Guidance Actual Guidance Revenue growth 12.3% 12% - 14% R&D - GAAP ($m) 387 Less New River milestone (50) Warren up front (6) Duramed up front (25) FAS123R (5) ------- R&D - Non GAAP ($m) $301 $310m to $330m ======= SG&A - GAAP ($m) 835 Less: FAS123R (34) ------- SG&A - Non GAAP ($m) $801 $770m to $800m ======= D&A increase 34% 30% Tax rate 27% 28% 29

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Outlook - 2007 Shire's Non GAAP measure for 2007 will be Cash EPS, being GAAP EPS excluding significant milestone payments, amortization (up approx 20% over 2006) and FAS123R (approx $45m). The following guidance excludes these costs and the impact of the New River acquisition. o 2007 revenue growth expected to be around 20% (assuming prescription growth in the ADHD market of 4-6%). o Earnings for 2007 will continue to be impacted by costs associated with the ongoing development and launch of new products. o Up to 6 new products to be launched during 2007 and H1 2008 in addition to the continued growth of DAYTRANA, ELAPRASE & FOSRENOL in the US and ELAPRASE & FOSRENOL in Europe; o Launches will require additional advertising and promotional spend and in some cases additional sales representatives. Consequently, SG&A expected to rise to between $930-960m for 2007; o Phase 3(b) and Phase 4 studies to support new product launches, the continuation of phase 3 trials on GA-GCB, the development of the Women's Health franchise, preclinical development of 3 HGT projects and 2 further pre-clinical projects expected to result in R&D spend in the range of $360-380m. o Depreciation is expected to increase by approximately 20% compared to 2006; and o Estimated tax rate - approximately 26% (down 1%). 30

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2006 Cash EPS 2005 2006 ---- ---- Non GAAP EPS (diluted)(1) - ADS 170.1c 187.8c -9% Non GAAP EPS (diluted)(1) - ADS (excluding FAS123R) 187.2c 201.4c -7% Cash EPS (diluted)(2) - ADS (excluding FAS123R and 211.2c 220.7c -4% amortisation) (1) These are non GAAP financial measures. They exclude items that management believe are not indicative of the ongoing business in 2006 & 2005. (2) This represents cash EPS and will be the measure which management intend to use for guidance in 2007 31

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Concluding Remarks Matthew Emmens Chief Executive 32

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Concluding Remarks o Shire to gain control of VYVANSE, future flagship product for ADHD o Logical strategic move o Innovative drug - next generation of ADHD treatment o Attractiveness of the ADHD market o Retain our financial flexibility to make further acquisitions 33

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Concluding Remarks o Excellent results - the business continues to perform strongly o Successful launches in 2006 with guidance for robust revenue growth o Continuing to demonstrate our ability to execute o ADDERALL XR - leading US market share o DAYTRANA - strong launch o ELAPRASE - approved in US and EU o FOSRENOL - strong start in Europe o SPD465 - PDUFA May 21, 2007 o SPD503 - PDUFA June 24, 2007 o Additional product launches by mid-2007 - on track o VYVANSE o LIALDA / MEZAVANT o DYNEPO o Early stage pipeline advancing toward clinical development 34

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Questions and Answers All 35

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APPENDIX 36

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Appendix 1-EPS Reconciliation 2006 2006 2005(1) 2005(1) $m cents/ADS $m cents/ADS ------------------------------------------------------------------------------- Net income for diluted EPS (ADS) 278.2 163.8c (578.4) (346.8c) TKT in-process R&D write-off - - 815.0 487.5c Cost of product sales fair value adjustment 47.0 27.7c 41.9 25.2c New River milestone and upfront payments 50.0 29.5c 50.0 30.0c Up-front license payments (Duramed & Warren) 30.5 18.0c - - Reorganisation / integration costs 5.6 3.3c 23.6 13.8c Gain on disposal of drug formulation business - (3.6) (2.1c) Gain on sale of product rights (63.0) (37.1c) - - Taxes on above adjustments less dilution impact of Non GAAP adj (18.8) (11.1c) (31.4) (18.0c) Gain on disposition of discontinued operations (40.6) (24.0c) (3.1) (1.8c) ----- ----- ----- ----- Net income for non GAAP EPS (ADS) 288.9 170.1c 314.0 187.8c FAS 123R effect (net of tax) 31.3 17.1c 25.6 13.6c ----- ----- ----- ----- Net income for non GAAP EPS (ADS) (Ex FAS 123R) 320.2 187.2c 339.6 201.4c Amortisation (net of tax) 41.2 24.0c 32.5 19.3c ----- ----- ----- ----- Net income for non GAAP EPS (ADS) (Ex FAS123R and amortisation) 361.4 211.2c 372.1 220.7c ----- ----- ----- ----- (1) Adjusted to reflect retrospective adoption of SFAS 123R and restated for the correction to the value of TKT's IPR&D (2) These are non GAAP financial measures. They exclude items that management believe are not indicative of the ongoing business in 2006 & 2005. 37

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Additional Information The tender offer described in this press release has not yet commenced, and this press release is neither an offer to purchase nor a solicitation of an offer to sell New River common stock. Investors and security holders are urged to read both the tender offer statement and the solicitation/recommendation statement regarding the tender offer described in this report when they become available because they will contain important information. The tender offer statement will be filed by a subsidiary of Shire with the Securities and Exchange Commission (SEC), and the solicitation/recommendation statement will be filed by New River with the SEC. Investors and security holders may obtain a free copy of these statements (when available) and other documents filed by Shire or New River with the SEC at the website maintained by the SEC at www.sec.gov. The tender offer statement and related materials may be obtained for free by directing such requests to Shire at Hampshire International Business Park, Chineham, Basingstoke, Hampshire, England, RG24 8EP, attention: Investor Relations. The solicitation/recommendation statement and such other documents may be obtained by directing such requests to New River at 1881 Grove Avenue, Radford, Virginia 24141, attention: Director of Corporate Communications.

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