Chairman’s review

Shire remains in the hunt for new technologies-fully focused on unmet patient needs and thoroughly committed to making the right difference.

The future of healthcare, many say, lies in personalized medicine-in helping physicians optimize outcomes for patients through individualized treatments that make a measurable difference to their lives. The industry will continue to experience enormous pressures-on prices, through regulations, by virtue of new leaders and legislators, by the hard reality that there is a worldwide shortage of cash. But the future is bright for biopharmaceutical companies with financial resources and with product portfolios that can deliver tangible benefits to patients and their caregivers, and Shire is one of those companies.

In 2008, Shire once again demonstrated the value of its specialty-focused business model and unique culture. Since succeeding me as Chief Executive Officer ('CEO') in June, Angus Russell has exercised consistently good judgment. He has brought new focus, enthusiasm, and creativity to the Shire business while leading a team that has overseen the continued flawless execution of its strategy. He has revisited Shire's mission and values, developed a corporate brand that asserts the importance of being brave, and looked ahead to the coming seven years with the conviction that Shire will continue to develop into one of the world's most valuable specialty biopharmaceutical companies.

At the same time, Angus and his team have paid careful attention to the Shire pipeline, bolstering a diverse and innovative product development program. Priority has also been given to fully globalizing Shire, a strategy that Shire-which can enter new markets through Human Genetic Therapies ('HGT') products that require relatively little infrastructure-undertakes with extreme efficiency. An increasing emphasis has also been placed, over the course of the year, on Shire's role as a global corporate citizen intent on acting responsibly and protecting the precious resources of our planet.

At the end of 2008, Shire remains a cash generative company capable of pursuing new technologies and products that boast good supportive data and can be acquired for the right price. These factors, combined with Shire's robust balance sheet, leave the company unusually well positioned for our current environment. It remains a Company that can not only measurably improve lives, but sometimes contribute to saving them.

I am grateful to Angus Russell, his management team, and all the people of Shire who come to work each day determined to make the most of the opportunities that present themselves, and the opportunities that Shire people create. Shire is leading the way to a brighter future. I look forward to the year ahead.

Matthew Emmens, Chairman