Impax Laboratories Reports Fourth Quarter and Record Full Year 2010 Financial Results

February 7, 2002

Two ANDAs Filed with FDA in Quarter for a Total of Eight in 2001 -- Expects to File 6 to 8 ANDAs in 2002

February 7, 2002 -- IMPAX Laboratories, Inc. (Nasdaq NM: IPXL) today reported financial results for the three and twelve months ended December 31, 2001.

Revenues for the fourth quarter of 2001 were $2,025,000, up 22% on a sequential quarter basis and up from $1,300,000 in the prior-year fourth quarter. Higher revenues came on sales of Terbutaline Sulfate tablets, a generic version of Brethine®, and on the reintroduction of products that had been discontinued in August 2000 when production was shifted from Philadelphia to Hayward, California. The company anticipates that its new, state-of-the-art manufacturing facility in Hayward will be completed by the end of the second quarter of 2002, by which time additional products are expected to have been reintroduced and/or launched to the marketplace.

The net loss for the 2001 fourth quarter was $6.9 million, or $(0.15) per share, including amortization of intangibles and goodwill of $972,000, or $(0.02) per share. This compares with a net loss of $5.8 million, or $(0.20) per share, including amortization of intangibles and goodwill of $981,000, or $(0.03) per share in the prior year fourth quarter. The increase in net loss from last year comparable period was primarily due to the interest expense on the refundable deposit from Teva Pharmaceutical Industries, Ltd. (TEVA) and additional infrastructure costs related to the new manufacturing facility and sales and marketing areas.

Cash, cash equivalents and short-term investments were $35.5 million at December 31, 2001 compared with $19.2 million at December 31, 2000. During the quarter, IMPAX issued 340,662 shares of common stock to TEVA, for net proceeds to the Company of approximately $3.75 million. Under the terms of a strategic alliance announced in June 2001, Teva has invested $7.5 million in IMPAX Laboratories to date, and will make further investments totaling $7.5 million through June 2002.

For the 12 months ended December 31, 2001, the Company reported sales of $6,591,000, compared with $10,170,000 in the comparable period the previous year; the lower sales were due to discontinued products and sales returns. The net loss through December 31, 2001, was $25,111,000, or $(0.60) per share, including amortization of intangibles and goodwill of $3,885,000 or $(0.09) per share and interest expense of $876,000 or $(0.02) per share on the refundable deposit from TEVA. This compares with a net loss of $24,961,000, or $(0.91) per share, including amortization of intangibles and goodwill of $4,604,000, or $(0.17) per share, and one-time restructuring charges and non-recurring items of $3,646,000 or $(0.13) per share, in the comparable 12 month period last year.

The Company noted that a recent Section 382 Net Operating Loss (NOL) limitation study conducted by its tax accountants indicated that NOL amounts of approximately $51 million as of December 31, 2000, will be available to offset future taxable profits. Of the $51 million NOL, approximately $33 million will be currently available as of December 31, 2001, to offset taxable profits, with the remainder being fully available by December 31, 2004.

``The fourth quarter continues our sequential quarter improvement,'' said Barry R. Edwards, Co-CEO. ``We are looking forward to increasing sales throughout 2002, as we receive U.S. Food and Drug Administration (FDA) marketing approval for new products and bring previously discontinued products back into production in our California facility. We anticipate that our new state-of-the-art facility in Hayward will be fully operational by June of this year and will have the capacity to support the additional anticipated product requirements in the coming years.''

Larry Hsu, President and COO added, ``We are very pleased that our development team reached the high end of our goal of filing six to eight ANDAs in 2001. During the past quarter we filed two additional ANDAs for controlled release products with the FDA, for a total of eight ANDAs this year. In addition, we were issued U.S. Patent No. 6,333,332 for Pharmaceutical Stabilization System (PSS), which continues to build our proprietary technology base. We anticipate that we will file 6 to 8 new ANDAs in 2002.''

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

IMPAX Laboratories, Inc. is a technology based 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: www.impaxlabs.com.

                       IMPAX LABORATORIES, INC.

                       IMPAX LABORATORIES, INC.
                        STATEMENT OF OPERATIONS
        (dollars in thousands, except share and per share data)


                               Three Months Ended  Twelve Months Ended
                                   December 31,        December 31,
                                 2001       2000     2001      2000
                              (unaudited)         (unaudited)


Net sales                       $ 2,025   $ 1,300   $ 6,591  $ 10,170
Cost of sales                     3,154     1,857     9,669     9,716
                                --------  -------- --------- ---------
Gross margin (loss)             (1,129)     (557)   (3,078)       454
Research and development          2,907     2,651    11,890    11,096
Less: TEVA payments               (219)         -     (918)         -
                                --------  -------- --------- ---------
Research and development, net     2,688     2,651    10,972    11,096
Selling expenses                    471       285     2,186     1,346
General and administrative (a)    2,594     2,515     9,258     9,764
Other operating income, net         100        91       164       306
Restructuring charges and
  non-recurring items (b)             -         -         -     3,646
                                --------  -------- --------- ---------
Net loss from operations          6,782   (5,917)  (25,330)  (25,092)
Interest income                     313       198     1,148       758
Interest expense (c)              (385)      (85)     (929)     (339)
                                --------  -------- --------- ---------
Net loss before cumulative
  effect of accounting change   (6,854)   (5,804)  (25,111)  (24,673)
Cumulative effect of accounting
  change (SAB101)                     -         -         -     (288)
                                --------  -------- --------- ---------
Net loss                      $ (6,854)  $(5,804) $(25,111) $(24,961)
                                ========  ======== ========= =========
Net loss per share before
  cumulative effect of
  accounting change               $   -     $   -     $   -  $ (0.90)
                                ========  ======== ========= =========
Net loss per share
  (basic and diluted)          $ (0.15)  $ (0.20)  $ (0.60)  $ (0.91)
                                ========  ======== ========= =========
Weighted average common
  shares outstanding       46,680,047 29,544,225 41,555,818 27,538,989
                          =========== ========== ========== ==========


(a)  Includes amortization of intangibles and goodwill of $972K in the
     quarter ended December 31, 2001, and $3,885K in the twelve months
     ended December 31, 2001, compared to $981K in the quarter ended
     December 31, 2000, and $4,604K in the twelve months ended
     December 31, 2000.

(b)  Includes one time write-off of $2,037K in intangibles, $957K in
     inventory and $652K in assets impairment due to ceasing of
     manufacturing in the Philadelphia facility and rationalizing the
     product line.

(c)  Includes interest on refundable deposit from TEVA of $438K in the
     quarter ended December 31, 2001, and $876K in the twelve months
     ended December 31, 2001, respectively.


                       IMPAX LABORATORIES, INC.
                        CONDENSED BALANCE SHEET
                            (in thousands)


                                      December 31,      December 31,
                                          2001              2000
                                       (unaudited)


ASSETS

Cash, cash equivalents
  and short-term investments               $ 35,466        $ 19,228
Accounts receivable, net                      3,523           1,581
Inventory                                     3,488           2,949
Property, plant and equipment, net           24,334           9,699
Goodwill and intangibles, net                28,721          32,609
Other assets                                  2,080           1,062
                                            --------       ---------
                             Total assets  $ 97,612        $ 67,128
                                            --------       ---------

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities                         $ 7,803         $ 6,326
Long-term debt, net of current portion        6,868           1,345
Refundable deposit and related
  accrued interest                           22,876               -
Other liabilities                               117             400
Mandatorily redeemable convertible
  preferred stock                             7,500          28,303
Stockholders' equity                         52,448          30,754
                                            --------        --------
            Total liabilities and
              stockholders' equity         $ 97,612        $ 67,128
                                           ---------        --------