X0204 3 2012-01-01 0 0001013238 ARADIGM CORP ARDM 0000754094 DEF Associates Ltd. C/O FIRST EAGLE INVESTMENT MANAGEMENT 1345 AVENUE OF THE AMERICAS NEW YORK NY 10105 0 0 1 1 See footnote below Common Stock 7473328 D DEF Associates Ltd. ("DEF Ltd.") directly owns 7,473,328 shares, which shares were acquired by DEF Ltd. in connection with the redemption of certain investors in DEF Associates N.V. and the simultaneous contribution of such shares to DEF Ltd. DEF Ltd., First Eagle Value in Biotechnology Master Fund, Ltd., 21 April Fund, L.P., 21 April Fund, Ltd. and DEF Associates LP (collectively, the "Funds") may be deemed to be members of a Section 13(d) group owning more than 10% of the issuer's outstanding common stock. The Funds together beneficially own 71,357,909 shares. Each of the Funds disclaims Section 16 beneficial ownership of the reported securities, and this report shall not be deemed an admission that any such Fund is the beneficial owner of such securities, except to the extent of its pecuniary interest therein. /s/Tim Tabor 2012-01-12