Ridgefield Park, New Jersey, December 2, 2005 --

Phibro Animal Health Corporation (“PAHC”) announced it has completed the sale of its Rixensart, Belgium manufacturing facility on November 30, 2005. The sale was completed with GlaxoSmithKline Biologicals S.A. (“GSK”) on terms substantially the same as previously disclosed in PAHC’s financial reports. The majority of PAHC’s Belgium employees transferred to GSK in connection with the sale of the facility. PAHC will continue to operate a European sales and service office from its new location in Wavre, Belgium. “We are grateful to our Rixensart employees for their dedication to our business, and are delighted that most of this fine organization will continue to be employed by GSK,” said Jack Bendheim, PAHC Chairman. “We also are pleased with the smooth transition of manufacturing technology from Rixensart to our facility in Guarulhos, Brazil.” PAHC is expanding its Brazil facility to add production of virginiamycin and to increase capacity for salinomycin and semduramicin production. PAHC previously had increased inventory levels of virginiamycin to ensure adequate supplies during the transfer period, and will now reduce inventory levels over approximately the next 36 months to normal operating levels.

COMPANY DESCRIPTION

The Company is a leading diversified global manufacturer and marketer of a broad range of animal health and nutrition products, specifically medicated feed additives ("MFAs") and nutritional feed additives, which the Company sells throughout the world predominantly to the poultry, swine and cattle markets. MFAs are used preventively and therapeutically in animal feed to produce healthy livestock. The Company is also a specialty chemicals manufacturer and marketer, serving numerous markets.

FORWARD-LOOKING STATEMENTS

This news release contains statements that, to the extent that they are not recitations of historical fact, constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 21E of the Securities Exchange Act of 1934. Such forward-looking information involves risks and uncertainties that could cause actual results to differ materially from those expressed in any such forward-looking statements.

These risks and uncertainties include, but are not limited to, the Company's substantial leverage and potential inability to service its debt; the Company's dependence on distributions from its subsidiaries; risks associated with the Company's international operations and significant foreign assets; the Company's dependence on its Israeli operations; competition in each of the Company's markets; potential environmental liability; potential legislation affecting the use of medicated feed additives; extensive regulation by numerous government authorities in the United States and other countries; the Company's reliance on the continued operation and sufficiency of our manufacturing facilities; the Company's reliance upon unpatented trade secrets; the risks of legal proceedings and general litigation expenses; potential operating hazards and uninsured risks; the risk of work stoppages; the Company's dependence on key personnel; and other factors discussed in the Company's filings with the U.S. Securities and Exchange Commission.

FOR ADDITIONAL INFORMATION CONTACT: RICHARD G. JOHNSON, CHIEF FINANCIAL OFFICER - (201) 329-7300

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