ACTELION LTD AND SUBSIDIARIES CONSOLIDATED US GAAP FINANCIAL STATEMENTS FOR MARCH 31, 2004

Content:

CONSOLIDATED STATEMENTS OF OPERATIONS CONSOLIDATED BALANCE SHEETS CONSOLIDATED STATEMENTS OF CASH FLOWS CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY

ACTELION LTD AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months Ended March 31, 2004 2003

(in CHF thousands, except per share amounts)

Net revenue: Products sales Contract revenue Total net revenue Operating expenses Cost of sales Research and development Marketing and advertising Selling, general and administration Amortization of acquired intangible assets Total operating expense Operating income Interest income Interest expense Amortization of debt discount and issuance costs Other financial income, net Income from continuing operations before income tax expense and share in loss of affiliate Income tax expense Income from continuing operations before share in loss of affiliate Share in loss of affiliate Income from continuing operations Net gain from disposal of subsidiary / (loss from discontinued operations, net of tax and minority interest) Net income 9,934 29,143 19,943 21,839 440 81,299 19,754 161 (197) (1,821) 1,407 19,304 (1,237) 18,067 18,067 6,451 18,861 17,340 13,752 417 56,821 5,919 280 (281) 367 6,285 (406) 5,879 (203) 5,676 97,848 3,205 101,053 60,731 2,009 62,740

9,648 27,715

(1,550) 4,126

Basic income per share Continuing Operations Discontinued Operations Net income
Number of shares (in thousands) used in computation

0.83 0.44 1.27

21,825

0.26 (0.07) 0.19

21,423

Diluted income per share Continuing Operations Discontinued Operations Net income
Number of shares and share options (in thousands) used in computation Dilutive share options (in thousands)

0.78 0.42 1.20

23,147 1,322

0.25 (0.06) 0.19

22,268 845

ACTELION LTD AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

(in CHF thousands, except shares and per share amounts) Assets Current assets Cash and cash equivalents Derivative instruments Trade and other receivables, net Inventories Other current assets Current assets of discontinued operations Total current assets Property, plant and equipment, net Other assets Intangible assets, net Goodwill, net Non-current assets of discontinued operations Total assets

March 31, 2004

December 31, 2003

283,409 1,098 76,215 21,155 7,382 389,259 20,289 7,339 8,656 3,785 429,328

258,770 2,199 66,711 21,455 3,966 10,385 363,486 18,982 6,687 8,813 3,784 1,091 402,843

Liabilities and Shareholders' Equity Current liabilities Trade and other payables Accrued expenses Deferred revenue, current portion Financial debt Other current liabilities Contingent consideration Current liabilities of discontinued operations Total current liabilities Long-term financial debt, less current portion Deferred revenue, less current portion Other non-current liabilities Non-current liabilities of discontinued operations Total liabilities Minority interest Shareholders' Equity Common shares (par value CHF 2.50 per share, authorized 30,506,640 and 30,506,640 shares; issued 21,941,647 and 21,751,148 shares in 2004 and 2003 respectively) Additional paid-in capital Accumulated deficit Unearned compensation Treasury shares, at cost Accumulated other comprehensive income Total shareholders' equity Total liabilities and shareholders' equity 25,584 37,058 17,554 31,214 775 6,641 118,826 146,841 73,282 1,904 340,853 27,535 37,601 10,821 41,161 2,019 6,641 8,758 134,536 145,147 64,468 1,963 1,785 347,899 517

54,854 306,983 (269,511) (4,329) (1,018) 1,496 88,475 429,328

54,378 302,817 (297,226) (5,369) (1,018) 845 54,427 402,843

ACTELION LTD AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

Three months ended March 31, 2004 2003

(in CHF thousands)

Cash flow from operating activities Net income (Gain) / Loss from discontinued operations, net of minority interest Income from continuing operations Adjustments to reconcile net income to net cash provided from operating activities: Depreciation and amortization Share in loss of affiliate Stock-based compensation Realized loss on sale of marketable securities Loss on derivative instruments Amortization of debt discount and expense (Increase) in trade and other receivables Decrease (increase) in inventories (Increase) in other current assets (Increase) in other assets (Decrease) increase in trade and other payables (Decrease) increase in accrued expenses Increase (decrease) in deferred revenue (Decrease) increase in other liabilities Net cash flow provided by (used in) operating activities Cash flow from investing activities Purchase of property, plant and equipment Purchase of derivative instruments Proceeds from sale of derivative instruments Purchase of intangible assets Proceeds from sale of subsidiary Net cash flow provided by (used in ) investing activities Cash flows from financing activities Payments on capital leases Repayment of financial debt Proceeds from exercise of stock options Net cash flow provided by financing activities Net effect of exchange rates on cash and cash equivalents Net effect of discontinued operations Net change in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period (60) (10,000) 4,642 (5,418) 49 24,639 258,770 283,409 (155) 627 472 (106) (1,405) (14,487) 116,201 101,714 2,189 1,040 1,075 1,821 (8,436) 300 (3,360) (639) (1,517) (905) 15,546 (1,326) 23,855 1,760 203 916 63 652 (12,720) (5,090) (1,461) (250) 4,129 2,640 (1,580) 32 (5,030) 27,715 (9,648) 18,067 4,126 1,550 5,676

(2,861) (674) 698 (252) 9,242 6,153

(1,783) (1,192) 1,076 (6,519) (8,418)

ACTELION LTD AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY

Additional (in CHF thousands) Common Shares Shares At January 1, 2004 Comprehensive result including tax benefit: Net income Other comprehensive result: Unrealized result on marketable securities Currency translation adjustment Comprehensive income 27,715 21,737,648 Amount 54,378 Paid-inCapital 302,817 Accumulated Deficit (297,226) Unearned Compensation (5,369) Treasury Shares (1,018)

Other Comprehensive Income 845 Shareholders' Equity 54,427 27,715

651 651 28,366

Exercise of stock options Stock-based compensation At March 31, 2004

190,499

476

4,166 1,040

4,642 1,040 (1,018) 1,496 88,475

21,928,147

54,854

306,983

(269,511)

(4,329)