PAR PHARMACEUTICAL EXPANDS ROCKLAND FACILITY TO ADD CAPACITY FOR NEW APPETITE-ENHANCING DRUG

CHESTNUT RIDGE, N.Y. (10/15/05) - Par Pharmaceutical Cos. Inc., which is best known for manufacturing generic drugs, is expanding its Hudson Valley facility to add capacity for its first patented medicine – a drug called Megace ES for treating patients with appetite problems. The drug received approval from the Food and Drug Administration in June and company is hoping to move two more branded drugs to market soon.

Construction is now under way on a 25,000 square foot addition to Par's operation in Chestnut Ridge, New York, where it performs manufacturing, packaging and quality control lab work. When the annex is up and running by the end of the year, four new packaging lines will be in operation. Additional manufacturing capacity and the ability to add about 60 new jobs to a company that has already grown by 90 employees in the past year are also in the plans as the company prepares to rollout its new drug.

Par, which had sales last year of $690 million, makes, markets or licenses more than 90 prescription drugs. During the past five years, the company's sales have grown more than eightfold and its stock has grown more than 350%. The company has about 50 applications pending before the FDA for approvals of new generic drugs and hopes to see 15 to 20 approved during the current year.

An appetite stimulant, Megace ES was designed for patients with anorexia, AIDS and other diseases that make food unappealing. Par used licensed chemical nanotechnology to produce a dosage of the drug that can be taken on an empty stomach. The company estimates the market for Megace ES to be $350 million.