IMPAX Reports First Quarter Financial Results

April 30, 2002

Quarter Highlights Include FDA Approval and Tentative Approval of ANDAs and Higher Revenues

April 30, 2002 -- IMPAX Laboratories, Inc. (Nasdaq NM: IPXL) today reported financial results for the three months ended March 31, 2002.

The revenues for the first quarter of 2002 were $3,432,000 compared to $1,772,000 in the prior year's first quarter and $2,025,000 in the fourth quarter of 2001. The increase in revenue by approximately 94% over the prior year was primarily due to the introduction of two new products: Terbutaline Sulfate Tablets in June 2001 and Fludrocortisone Acetate Tablets in March 2002.

The net loss for the 2002 first quarter was $5,421,000 or $(0.12) per share. This compares with a net loss of $5,338,000 or $(0.16) per share in the prior year first quarter. The increase in the net loss from last year comparable period was primarily due to higher research and development and infrastructure costs related to the new manufacturing facility in Hayward, California and the expansion of our sales and marketing capabilities, partially offset by higher revenues. The 2002 first quarter net loss was also favorably impacted by the absence of goodwill amortization expense of approximately $876,000.

Cash, cash equivalents and short-term investments were $30.7 million at March 31, 2002, compared with $13.8 million at March 31, 2001. During the quarter, IMPAX issued 419,933 shares of common stock to a subsidiary of Teva Pharmaceuticals Industries, Ltd., for net proceeds to the Company of $3.75 million. Under the terms of a strategic alliance announced in June 2001, TEVA has invested $11.25 million in Impax Laboratories to date, and is required to make a further investment of approximately $3.75 million in June 2002.

"The first quarter revenues continue our sequential quarter improvement and the significant increase over last year's comparable quarter," said Barry R. Edwards, Co-Chief Executive Officer. "The first quarter highlights also include the tentative approval by the U.S. Food and Drug Administration (FDA) of our ANDA for a generic version of Tricor® (Fenofibrate), Micronized, and the approval by the FDA of our ANDA for a generic version of Florinef® (Fludrocortisone Acetate Tablets). During the quarter, the FDA also accepted the filing of ANDAs for a generic version of Allegra-D® (Fexofenadine HCl/Pseudoephedrine HCl) Extended Release 60mg/120mg Tablets (our eighth Paragraph IV filing) and for a generic version of Oxycontin® (Oxycodone HCl) Extended Release 80mg Tablets (our ninth Paragraph IV filing)."

Regarding progress on brand development projects, Larry Hsu, Ph.D., President and Chief Operating Officer, stated, "Our first application for a central nervous system brand product was recently submitted to the FDA as an ANDA. This brand product application marks the first milestone in the development of our brand product strategy."

IMPAX currently has 15 ANDAs pending at the FDA that address more than $8 billion in 2001 U.S. branded product sales. Nine of these filings were made under Paragraph IV of the Hatch-Waxman Amendments, one of which has received tentative approval from the FDA.

IMPAX Laboratories, Inc. is a technology focused specialty pharmaceutical company applying its formulation expertise and drug delivery technology to the development of controlled-release and niche generics in addition to the development of branded products. IMPAX markets its generic products through its Global Pharmaceuticals division and intends to market its branded products through the IMPAX Pharmaceuticals division. IMPAX Laboratories is headquartered in Hayward, California, and has a full range of capabilities in its Hayward and Philadelphia facilities. For more information, please visit the Company's Web site at:

                       IMPAX LABORATORIES, INC.

                       IMPAX Laboratories, Inc.
                       Statements of Operations
        (dollars in thousands, except share and per share data)

                                          Three Months Ended
                                               March 31,

                                           2002            2001
                                          ------          ------
Net sales                               $  3,432         $ 1,772
Cost of sales                              3,139           2,276
                                          -------         ------
Gross margin (loss)                          293           (504)
Research and development                   2,890           2,595
Less:  Teva payments                       (166)               -
                                          ------          ------
Research and development, net              2,724           2,595
Selling                                      658             317
General and administrative(a)              2,170           2,159
Other operating income (expense), net       (30)              25
                                          ------           -----
Net loss from operations                 (5,289)         (5,550)
Interest income                              235             262
Interest expense(b)                        (367)            (50)
                                          ------          ------
Net loss                              $  (5,421)       $ (5,338)
                                         =======         =======

Net loss per share (basic and
  diluted)                             $  (0.12)        $ (0.16)
                                         =======         =======
Weighted average common shares
  outstanding                         46,812,977      33,951,876
                                     ===========      ==========

(a)  Includes amortization of intangibles of $96K in the quarter ended
     March 31, 2002, and amortization of intangibles and goodwill of
     $972K in the quarter ended March 31, 2001.

(b)  The total interest of $539K for the quarter ended March 31, 2002,
     which was reduced by $172K in capitalized interest, included
     interest of $438K on refundable deposit from Teva.

                       IMPAX Laboratories, Inc.
                        Condensed Balance Sheet
                            (in thousands)

                                      March 31,         December 31,
                                        2002                 2001


Cash, cash equivalents and
  short-term investments               $  30,675        $    35,466
Accounts receivable, net                   3,422              3,433
Inventory                                  3,897              3,488
Property, plant and equipment, net        29,518             24,134
Goodwill and intangibles, net             28,625             28,721
Other assets                               2,904              2,080
                                       ---------           --------
                 Total assets        $    99,041        $    97,322
                                       ---------           --------


Current liabilities                  $    10,177       $      7,803
Long-term debt, net of current
  portion                                  6,796              6,868
Refundable deposit and related
  accrued interest                        23,314             22,876
Other liabilities                            101                117
Mandatorily redeemable convertible
  preferred stock                          7,500              7,500
Stockholders' equity                      51,153             52,158
                                       ---------          ---------

                 Total liabilities and
                   equity            $    99,041        $    97,322
                                       ---------          ---------