IMPAX Announces $25 Million Private Placement

May 7, 2003

May 7, 2003--IMPAX Laboratories, Inc. (Nasdaq: IPXL) today announced that it has entered into a definitive agreement to sell 4,394,081 shares of common stock and warrants to purchase 878,815 shares of common stock in a private placement under the Securities Act to a select group of institutional investors for a total purchase price of approximately $24.0 million. The warrants are exercisable for a period of five years at an exercise price of $7.421 per share. The placement is expected to be completed later today. In addition, the investors have the right to purchase up to an additional 183,000 shares of common stock prior to May 16, 2003 for approximately $1.0 million. The Company intends to use the net proceeds from the private placement for working capital and general corporate purposes.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any security. The common stock and warrants have not been registered under the Securities Act of 1933 or applicable state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

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 specialty 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. Additionally, where strategically appropriate, IMPAX has developed marketing partnerships to fully leverage its technology platform. 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: