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Dear all,

I would like to elaborate on the recently announced recall of our Rock-On Pharma and Miller Drugs
products which contained excessive acetaminophen that can cause harm to children. As you may know,
this error happened due to a technical problem in the production line at our Hamilton plant. The problem
resulted from a power failure that lasted five minutes on November 15thcausing a momentary breakdown
of the quantity-sensor device responsible fordispensing the active ingredient of the medicine.
Unfortunately, the quality-control device failed to detect this error. To prevent this problem from
happening in the future, we are currently looking at all options to upgrade this device.In addition, we will
have more stringent measures using the most advancederror-detection machines.

Our top priority at the moment is to ensure that none of our consumers are affected. This requires our
swift response on three fronts: stopping the production line for a comprehensive audit, immediate recall of
the product, and making public announcements to warn consumers aboutthe affected batch with the lot
number 1AD9228.In addition, we have created a dedicated hotline that consumers and retailers can call
with questions. It is:1-800-321-0105.

At the same time, we are providing suitable replacement products to all the affected consumers to
minimize the inconvenience.

We are a company guided by its mission to be Canada’s most trusted manufacturer ofhigh-quality generic
medicines that are comparable to the brand name drugs. And we will spare no effort to fulfil this mission.

Companies are judged by the way they respond to crises. Thus, although we regret that this error has
happened, we should look at it as an opportunity to show everyone, byour actions and not just ourwords,
that we live up to our reputation. Our message should be clear: we never compromise on people’s
health,no matter what it takes. To deliver this message, we will maintain complete transparency with the
media and the authorities, and above all, with you, our employees.

I will continue to personally update youon the issue using my blog.So please read my posts and don’t
hesitate to ask questions and make suggestions.

I’m sure that working together through this difficult time will enable us to emerge stronger.

Sincerely,

Sal Hosny
President and Chief Executive Officer

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CEO's Message

  • 1. Dear all, I would like to elaborate on the recently announced recall of our Rock-On Pharma and Miller Drugs products which contained excessive acetaminophen that can cause harm to children. As you may know, this error happened due to a technical problem in the production line at our Hamilton plant. The problem resulted from a power failure that lasted five minutes on November 15thcausing a momentary breakdown of the quantity-sensor device responsible fordispensing the active ingredient of the medicine. Unfortunately, the quality-control device failed to detect this error. To prevent this problem from happening in the future, we are currently looking at all options to upgrade this device.In addition, we will have more stringent measures using the most advancederror-detection machines. Our top priority at the moment is to ensure that none of our consumers are affected. This requires our swift response on three fronts: stopping the production line for a comprehensive audit, immediate recall of the product, and making public announcements to warn consumers aboutthe affected batch with the lot number 1AD9228.In addition, we have created a dedicated hotline that consumers and retailers can call with questions. It is:1-800-321-0105. At the same time, we are providing suitable replacement products to all the affected consumers to minimize the inconvenience. We are a company guided by its mission to be Canada’s most trusted manufacturer ofhigh-quality generic medicines that are comparable to the brand name drugs. And we will spare no effort to fulfil this mission. Companies are judged by the way they respond to crises. Thus, although we regret that this error has happened, we should look at it as an opportunity to show everyone, byour actions and not just ourwords, that we live up to our reputation. Our message should be clear: we never compromise on people’s health,no matter what it takes. To deliver this message, we will maintain complete transparency with the media and the authorities, and above all, with you, our employees. I will continue to personally update youon the issue using my blog.So please read my posts and don’t hesitate to ask questions and make suggestions. I’m sure that working together through this difficult time will enable us to emerge stronger. Sincerely, Sal Hosny President and Chief Executive Officer