IMPAX Reports Record First Quarter Results

April 30, 2003

Quarter Highlighted by Record Revenues and Litigation Progress

April 30, 2003 -- IMPAX Laboratories, Inc. (Nasdaq NM: IPXL) today reported financial results for the three months ended March 31, 2003.

Revenues for the first quarter of 2003 were $11,425,000, up more than 232% compared with revenues of $3,432,000 in the prior year's first quarter, and up more than 36% over total revenues of $8,400,000 in the fourth quarter of 2002. The significant year-over-year increases came primarily on Claritin-D® 12-hour over-the-counter (OTC) Tablets shipped to Schering-Plough during the first quarter of 2003; higher sales of Fludrocortisone Acetate Tablets, introduced at the end of the first quarter of 2002; higher Lipram sales; sales of Minocycline Hydrochloride Capsules launched in the third quarter of 2002; and lower product returns.

The net loss for the 2003 first quarter was $3,213,000, or $(0.07) per share, compared with a net loss of $5,421,000, or $(0.12) per share, in the prior year first quarter. Net loss narrowed due to increased sales, which was partially offset by increases in research and development expenses.

Cash, cash equivalents and short-term investments (unrestricted) were $11.2 million at March 31, 2003, compared to $10.2 million at December 31, 2002.

"We continue our rapid sequential quarter improvement as we execute on our commercial strategy," commented Barry R. Edwards, Co-Chief Executive Officer of IMPAX Laboratories. "In addition, we have made progress in resolving much of the outstanding patent litigation which stood in the way of obtaining final FDA approval for two of our products. We recently prevailed in Abbott's patent infringement lawsuit regarding our ANDA filing for generic Tricor® capsules, and Merck withdrew its lawsuit related to our ANDA filing for generic Sinemet® CR tablets."

IMPAX has 19 applications pending at the FDA, including three tentatively approved, that address approximately $6.0 billion in U.S. branded product sales for the twelve months ended December 31, 2002. Fourteen 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 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:

As previously announced, the Company has scheduled a conference call to discuss this announcement beginning at 8:00 a.m. Eastern Time today. To participate in the call, a few minutes prior to the start time, please dial (888) 803-7396 in the U.S. or (706) 634-1052 for international callers. Those unable to participate are invited to listen to a recording of the call and Question and Answer session from 10:00 a.m. Eastern Time April 30, 2003 through midnight Eastern Time May 2, 2003, by dialing (800) 642-1687 in the U.S. or (706) 645-9291 for international callers, and entering access code 9890648. Alternatively, individuals may listen to the call by visiting the investor relations section of the Company's website at To listen to the live call, please go to the website 15 minutes prior to its start to register, download and install the necessary audio software. A recording of the call will be available for 14 days on the site beginning on April 30, 2003.

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

                                                   Three Months Ended
                                                        March 31,
                                                   2003          2002

Net sales                                   $    11,066   $     3,432

Other revenues                                      359            --

Total revenues                                   11,425         3,432

Cost of sales                                     8,147         3,139

Gross margin                                      3,278           293

Research and development                          3,755         2,890

Less:  Teva payments                               (132)         (166)

Research and development, net                     3,623         2,724

Selling expenses                                    568           658

General and administrative expenses               2,122         2,170

Other operating income (expense), net                11           (30)

Net loss from operations                         (3,024)       (5,289)

Interest income                                      42           235

Interest expense                                   (231)         (367)

Net loss                                    $    (3,213)  $    (5,421)

Net loss per share (basic and diluted)      $     (0.07)  $     (0.12)

Weighted average common shares outstanding   47,876,830    46,812,977

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

                                               March 31,  December 31,
                                                 2003        2002
                                             (unaudited)  (unaudited)


Cash, cash equivalents and short-term
 investments                                  $  11,224    $  10,219

Restricted cash(a)                               10,000       10,000

Accounts receivable, net                          5,734        6,524

Inventory                                        12,788       10,478

Property, plant and equipment, net               36,974       37,065

Goodwill and intangibles, net                    28,241       28,337

Other assets                                      1,730        1,780

Total assets                                  $ 106,691    $ 104,403


Current liabilities                           $  27,144    $  23,248

Long-term debt, net of current portion            9,643        9,105

Refundable deposit                               22,000       22,000

Deferred revenues and other liabilities           2,419        1,486

Mandatory redeemable convertible preferred stock  7,500        7,500

Stockholders' equity                             37,985       41,064

Total liabilities and stockholders' equity    $ 106,691    $ 104,403

(a) Represents cash held as collateral for the $25 million revolving
    credit facility and term loan with Congress Financial.