INCLINE VILLAGE, Nev., Sept. 7, 2011 /PRNewswire/ — PDL
BioPharma, Inc. (PDL) (NASDAQ:
PDLI) today announced adjustments to the conversion rates
for:

• The 2.875% Convertible Senior Notes due February 15, 2015 (the
  February 2015 Notes), effective September 9, 2011; and
• The 3.75% Convertible Senior Notes due May 1, 2015 (the May
  2015 Notes), effective September 6, 2011,

in connection with the regular dividend of $0.15 to be paid on
September 15, 2011, to all stockholders who own shares of PDL on
September 8, 2011, the record date.

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The conversion rate for the February 2015 Notes, as adjusted, is
151.713 shares of common stock per $1,000 principal amount or
approximately $6.59 per share. The conversion rate for the February
2015 Notes was previously 147.887 shares of common stock per $1,000
principal amount of the February 2015 Notes. In connection with a
cash dividend, the conversion rate is increased by multiplying the
previous conversion rate by a fraction, the numerator of which is
the average closing price of PDL’s common stock for the five
consecutive trading days immediately preceding the ex-dividend date
of September 6, 2011, for the cash dividend, and the denominator of
which is the difference of such average closing price less the
dividend amount.

The conversion rate for the May 2015 Notes, as adjusted, is
132.6682 shares of common stock per $1,000 principal amount or
approximately $7.54 per share. The conversion rate for the May 2015
Notes was previously 129.2740 shares of common stock per $1,000
principal amount of the May 2015 Notes. In connection with a cash
dividend, the conversion rate is increased by multiplying the
previous conversion rate by a fracti

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