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Cambrex Reports Third Quarter 2008 Results
Date:11/4/2008

ed EBITDA for the quarter. While general business conditions have impacted the number and timing of new custom development projects, especially those in the early clinical stages of development, the Company has a strong pipeline of late- stage Phase III projects. In addition, we continue to see solid growth in our controlled substances products. Softer market conditions, along with the previously reported impact of a customer recall, have resulted in lower than expected year-to-date results and ultimately a moderate downward revision in our full year earnings guidance.

"We are nearing completion of our new mid-scale API manufacturing facility at our Swedish operation, which is expected to be on line in early 2009, and production has started in a portion of our state of the art API finishing facility in Milan, Italy, with the remainder in the later stages of validation. Along with our new high potency development center in Iowa, the completion of these projects cap a three year period of higher than normal capital investments and position us well for future growth.

"We were pleased with the positive cash generation in the third quarter net of the impact of foreign exchange. We will continue to aggressively cut costs and focus on increasing cash flow in 2009 and beyond.

"We have nearly three and a half years remaining on our $200 million revolving credit facility and believe that cash flows from operations, along with funds available from this facility, will provide more than enough capital to execute our plan over the next few years of aggressively growing sales of products based on our proprietary drug delivery and tastemasking technologies, controlled substances, new generic APIs, and the transition of late stage clinical projects to long term supply agreements."

Third Quarter 2008 Operating, Interest and Tax Expenses - Continuing Operations

SG&A Expenses in the third quarter 2008 were $8.8 million compared to $10.7 million in the
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SOURCE Cambrex Corporation
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