Cephalon Reports Another Strong Quarter( Record Sales of $490 Million Up 1...)

Record Sales of $490 Million, Up 14 Percent over Third Quarter 2007

Company Raises Full Year 2008 Sales and Earnings Guidance Introduces 2009 Adjusted Net Income Guidance, Up 27 Percent over 2008

FRAZER, Pa., Oct. 28 /PRNewswire-FirstCall/ -- Cephalon, Inc. (Nasdaq: CEPH) today reported third quarter 2008 sales of $489.7 million, compared to sales of $428.7 million for the third quarter of 2007, and at the high end of the company's guidance of $480 - $490 million. Net income for the quarter was $112.0 million and basic income per common share was $1.64. Excluding amortization expense and certain other items, adjusted net income was $92.9 million and basic adjusted income per common share for the quarter was $1.36, compared to $1.08 for the same period in 2007, exceeding the company's guidance of $1.25 to $1.35.

Central nervous system (CNS) franchise sales were $273.7 million during the quarter, a 19 percent increase compared to the same period last year. The Pain franchise sales were $117.2 million compared to $121.8 million in the third quarter of 2007. AMRIX(R) (cyclobenzaprine hydrochloride extended- release capsules) sales increased 20 percent over the second quarter 2008. Oncology franchise sales were $52.4 million, an increase of 131 percent versus 2007. Sales of TREANDA(R) (bendamustine hydrochloride) for Injection were $24.6 million for the quarter, an increase of 71 percent over the second quarter of 2008.

"More and more patients are benefiting from the novel therapies that we offer. This has resulted in record sales, and adjusted earnings that exceeded the high end of our guidance. These solid results, and our confidence in our current product portfolio, enabled us to raise our guidance for the remainder of this year and issue adjusted net income guidance for 2009 that exceeds today's First Call consensus," said Frank Baldino, Jr., Ph.D., Chairman and CEO. "Despite troubled economic conditions around the world, our
'/>"/>