IMPAX Reports on SEC Order Revoking Common Stock Registration and Progress in Obtaining Re-Registration

May 27, 2008

HAYWARD, Calif.--(BUSINESS WIRE)--May 27, 2008--IMPAX Laboratories, Inc. ("IMPAX" or the "Company") reports that on May 23, 2008 the U.S. Securities and Exchange Commission ("SEC") issued an order revoking the registration of the Company's common stock under section 12(g) of the Securities and Exchange Act of 1934. The effect of this action is that broker-dealers are now prohibited from effecting transactions in the stock until the Company has filed a registration statement on Form 10 pursuant to section 12(g) and such registration statement has become effective. The Company expects to have the required audits completed and to file its Form 10 registration statement on or about June 30, 2008 or shortly thereafter. Section 12(g) provides that registration statements thereunder shall become effective within 60 days after filing.

"We are very disappointed the Commission chose to take this drastic action at this time, but it does not change our plans or priorities. The completion of the audits for 2004 though 2007 and the filing of the Form 10 registration statement remain my highest priorities. We continue to devote every useful resource to complete this work and we have already made substantial progress with more than 20,000 hours of work by IMPAX, its consultants and its auditors," said Arthur A. Koch, Jr., senior vice president and chief financial officer of IMPAX Laboratories.

Larry Hsu, Ph.D., chief executive officer of IMPAX Laboratories said, "While we have a substantial staff of IMPAX employees and advisors working on completing the audits and preparing the required reports, we have more than 700 additional employees focused on our current business strategies. The continued execution of our strategy of applying our formulation expertise and drug delivery technology to the development of controlled-release and specialty generics in addition to the development of brand products will continue to drive the growth of our business."

Hsu continued, "Our operations remain unaffected by this drastic decision by the SEC and we continue to focus on meeting or exceeding our customers' expectations and investing in our research and development programs, programs which ultimately define the future of our Company. At last count, we have 43 generic pharmaceutical products approved by the U.S. Food and Drug Administration ("FDA"), and a further 71 products pending FDA review or under development that target currently marketed products with more than $29 billion in U.S. brand and generic sales. Also, construction is underway on a new facility in Taiwan that will increase our manufacturing capacity by 50%. We are looking forward to filing the required re-registration statements as soon as is practicable."

IMPAX had cash, cash equivalents and marketable securities of $136.6 million and long-term debt of approximately $82 million as of March 31, 2008 and the Company has approximately 58 million shares of common stock outstanding.

About IMPAX Laboratories, Inc.

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 markets 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: www.impaxlabs.com.

"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995:

To the extent any statements made in this news release contain information that is not historical, these statements are forward-looking in nature and express the beliefs and expectations of management. Such statements are based on current expectations and involve a number of known and unknown risks and uncertainties that could cause IMPAX's future results, performance or achievements to differ significantly from the results, performance or achievements expressed or implied by such forward-looking statements. Such risks and uncertainties include, but are not limited to, possible adverse effects resulting from the delisting and revocation of the registration of IMPAX's common stock under section 12 of the Securities Exchange Act, the actual time that will be required to file a registration statement on Form 10 under section 12 and for such registration statement to become effective, IMPAX's ability to obtain sufficient capital to fund its operations, the difficulty of predicting FDA filings and approvals, consumer acceptance and demand for new pharmaceutical products, the impact of competitive products and pricing, IMPAX's ability to successfully develop and commercialize pharmaceutical products, IMPAX's reliance on key strategic alliances, the uncertainty of patent litigation, the availability of raw materials, the regulatory environment, dependence on patent and other protection for innovative products, exposure to product liability claims, fluctuations in operating results and other risks detailed from time to time in IMPAX's filings with the Securities and Exchange Commission. Forward-looking statements speak only as to the date on which they are made, and IMPAX undertakes no obligation to update publicly or revise any forward-looking statement, regardless of whether new information becomes available, future developments occur or otherwise.

CONTACT: Company Contacts:
IMPAX Laboratories, Inc.
Larry Hsu, Ph.D. President & CEO, 510-476-2000, ext. 1111
Arthur A. Koch, Jr., Sr. VP & CFO, 215-933-0351
Mark Donohue, Sr. Director IR, 215-933-3526
www.impaxlabs.com
or
Investor Relations Contacts:
Lippert/Heilshorn & Associates, Inc.
Kim Sutton Golodetz, 212-838-3777
kgolodetz@lhai.com
Bruce Voss, 310-691-7100
bvoss@lhai.com
www.lhai.com

SOURCE: IMPAX Laboratories, Inc.