Cephalon Concludes All Outstanding Federal and State Government Investigations into the Company's Sales and Promotional...( Company Finalizes Previously Annou...)

Company Finalizes Previously Announced Agreement with U.S. Attorney's Office for Eastern District of Pennsylvania and U.S. Department of Justice

Settles State Cases with Connecticut and Massachusetts

FRAZER, Pa., Sept. 29 /PRNewswire-FirstCall/ -- Cephalon, Inc. (Nasdaq: CEPH) announced today it has finalized a previously announced agreement in principle with the U.S. Attorney's Office for the Eastern District of Pennsylvania, the U.S. Department of Justice and various other federal agencies. The Company also reached separate agreements with the Attorneys General of the states of Connecticut and Massachusetts to settle related investigations into the company's sales and promotional practices. The initial investigations began in 2004 and involved three of the company's nine proprietary products in the United States -- Actiq(R) (oral transmucosal fentanyl citrate) [C-II], Provigil(R) (modafinil) Tablets [C-IV], and GabitRil(R) (tiagabine hydrochloride). Cephalon fully cooperated with all governmental entities throughout these investigations.

Under the previously disclosed terms of the federal settlement, Cephalon will pay the $425 million reserved in 2007 plus an estimated $12 million in accrued interest expense, plead guilty to a single misdemeanor violation of the U. S. Food, Drug, and Cosmetic Act, and enter into a five-year Corporate Integrity Agreement (CIA) with the Office of the Inspector General of the U.S. Department of Health and Human Services. The guilty plea is subject to approval by the U.S. District Court for the Eastern District of Pennsylvania.

"We are pleased to have these long-standing matters behind us, while preserving our ability to participate in all federal and state health care programs, thereby maintaining the access of patients in those programs to our medications," stated Jerry Pappert, Executive Vice President and General Counsel, and a former Attorney General of the Commonwealth of Pennsylvania. '/>"/>