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Integrity, respect and excellence are the core principles that govern the way Patheon operates its business.  These principles are documented in the Code of Business Conduct developed to communicate Patheon’s values and to provide guidelines for addressing issues and questions related to Patheon’s business practices.  The Code of Business Conduct was adopted by the Board of Directors of Patheon Inc. to serve as a guide to Patheon personnel worldwide, including employees, consultants, board members and agents.  Patheon communicates the Code of Business Conduct to employees at its facilities by distributing copies of the text, complemented by presentations to reinforce the principles of the Code and their application.  The Code has been distributed to employees at all facilities, except in France due to employment law restrictions.

In addition, in 2005, Patheon introduced a confidential whistleblower program. Offered through EthicsPoint Inc., an external service provider, the program is a an Internet and telephone-based reporting tool that enables employees to report fraud, abuse, misconduct, and other violations in the workplace on a confidential and anonymous basis. Employees may use this service to report any activities they suspect may be in violation of the Patheon Code of Conduct, including matters relating to accounting, internal accounting controls and auditing. This program will be rolled out throughout the Patheon organization by the end of 2006, except in France and Italy, where privacy laws preclude the company from offering this type of service. Employees in those countries will be instructed to continue to report any activities they suspect may be in violation of the Code of Business Conduct to their human resources supervisor.

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