Hospira Completes Acquisition of Orchid's Generic Injectable Pharmaceuticals Business

LAKE FOREST, Illinois, March 30, 2010 - — Gains New Manufacturing Capabilities and Expands Global Reach –

Hospira, Inc. (NYSE: HSP), the world leader in generic injectable
pharmaceuticals, today announced it has completed the acquisition of the
generic injectable pharmaceuticals business of Orchid Chemicals &
Pharmaceuticals Ltd. (BSE: 524372, NSE: ORCHIDCHEM), a leading Indian
pharmaceuticals company, for approximately US$400 million.

"We are excited to acquire new capabilities that will create
opportunities for commercial growth, position us strongly in a key
antibiotics product area, expand our global footprint and enhance our ability
to provide lower-cost, high-quality products to patients," said Terry
Kearney, chief operating officer, Hospira. "We're also excited to welcome a
talented base of 450 employees, including newly appointed managing director,
Hospira India, Dr. C.B. Rao, who joins us with a wealth of diversified
industrial and management experience, and will provide continuity of
leadership for the Orchid team joining Hospira."

Rao will report directly to Kearney.

"Integration of Orchid's injectables formulations business with Hospira,
the global leader in generic injectables, represents a strong strategic fit.
Our team is committed to leveraging our world-class infrastructure,
high-technology product range and organizational competencies to drive even
greater business growth and strengthen Hospira's leadership position," said
Rao.

The acquisition includes Orchid's beta-lactam antibiotic formulations
manufacturing complex (comprising cephalosporin, penicillin and carbapenem
facilities) and pharmaceutical research and development (R&D) facility at
Irungattukottai, Chennai, as well as its generic injectable dosage-form
product portfolio and pipeline. Beta-lactam antibiotics represent a class of
drugs with a wide spectrum of antibacterial activity, and Orchid is one of
the top-five generic beta-lactam antibiotics manufacturers globally.

In addition, the companies signed a long-term agreement for Orchid to
supply active pharmaceutical ingredients (APIs) for the acquired generic
injectable pharmaceuticals business.

Hospira and Orchid are committed to supporting the various alliances and
distribution arrangements of the acquired business. To help facilitate the
transition process, the two companies have entered into transitional services
agreements for approximately 15 months.

Hospira expects to provide more specific information on the financial
impact of the transaction when it reports first-quarter 2010 results on April
27.

Orchid/Hospira Partnership

In 2005, Mayne Pharma Ltd. (now part of Hospira) and Orchid entered into
a strategic commercialization and development agreement. Subsequent
agreements have added to the scope of the relationship, and the acquisition
gives Hospira the manufacturing/R&D capabilities, product application
ownership and full commercialization rights to these products, as well as
access to new product licenses and distribution partnerships. The long-term
API agreement with Orchid will also ensure continuity of supply.

About Hospira

Hospira, Inc. is a global specialty pharmaceutical and medication
delivery company dedicated to Advancing Wellness(TM). As the world leader in
specialty generic injectable pharmaceuticals, Hospira offers one of the
broadest portfolios of generic acute-care and oncology injectables, as well
as integrated infusion therapy and medication management solutions. Through
its products, Hospira helps improve the safety, cost and productivity of
patient care. The company is headquartered in Lake Forest, Ill., USA, and has
approximately 13,500 employees. Learn more at www.hospira.com.

About Orchid

Orchid Chemicals & Pharmaceuticals Ltd. is a leading pharmaceutical
company headquartered in Chennai, India, involved in the development,
manufacture and marketing of diverse bulk actives, formulations and
nutraceuticals. With exports spanning more than 75 countries, Orchid is the
largest manufacturer-exporter of cephalosporin bulk actives in India and is
ranked amongst the Top 5-cephalosporin producers in the world. Orchid's
world-class manufacturing infrastructure includes multiple USFDA compliant
API and dosage form facilities at Chennai and Aurangabad in India. Orchid has
dedicated state-of-the-art GLP compliant R&D centres for API research, drug
discovery and pharmaceutical research at Chennai, India. Orchid has ISO
9001:2000, ISO 14001 and OHSAS 18001 certifications. Orchid is listed on the
National Stock Exchange (NSE), Bombay Stock Exchange (BSE) and the Madras
Stock Exchange (MSE) in India. Additional information is available at the
company's website at www.orchidpharma.com.

Private Securities Litigation Reform Act of 1995 –

A Caution Concerning Forward-Looking Statements

This press release contains forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. Hospira cautions
that these forward-looking statements are subject to risks and uncertainties
that may cause actual results to differ materially from those indicated in
the forward-looking statements. Economic, competitive, governmental, legal,
technological and other factors that may affect Hospira's operations and may
cause actual results to be materially different from expectations include the
risks, uncertainties and factors discussed under the headings "Risk Factors"
and "Management's Discussion and Analysis of Financial Condition and Results
of Operations" in Hospira's latest Annual Report on Form 10-K, which is filed
with the Securities and Exchange Commission, and incorporated by reference.
Hospira undertakes no obligation to release publicly any revisions to
forward-looking statements as the result of subsequent events or
developments.

Media, Dan Rosenberg, +1-224-212-3366, or Financial Community, Karen King, +1-224-212-2711, both of Hospira. LOGO: www.newscom.com/cgi-bin/prnh/20040503/HSPLOGO