Cephalon's 2007 Results Exceed Full Year Sales and Earning...( INCOME (LOSS) FROM OPERATIONS 5720...)

INCOME (LOSS) FROM OPERATIONS 57,200 42,837 (99,143) 294,137

OTHER INCOME (EXPENSE):

Interest income 9,331 8,702 32,816 25,438

Interest expense (4,561) (5,399) (19,833) (18,922)

Debt exchange expense - (48,122) - (48,122)

Write-off of deferred debt

issuance costs - - - (13,105)

Gain on extinguishment of debt - - 5,319 -

Gain on sale of investment - - 5,791 -

Other income (expense), net 2,884 (1,056) 6,631 (1,172)

7,654 (45,875) 30,724 (55,883)

INCOME (LOSS) BEFORE INCOME

TAXES 64,854 (3,038) (68,419) 238,254

INCOME TAX EXPENSE 20,672 1,871 123,285 93,438

NET INCOME (LOSS) $44,182 $(4,909) $(191,704) $144,816

BASIC INCOME (LOSS) PER COMMON

SHARE $0.66 $(0.08) $(2.88) $2.39

DILUTED INCOME (LOSS) PER

COMMON SHARE $0.56 $(0.08) $(2.88) $2.08

WEIGHTED AVERAGE NUMBER OF

COMMON SHARES OUTSTANDING 67,187 61,783 66,597 60,507

WEIGHTED AVERAGE NUMBER OF

COMMON SHARES OUTSTANDING-

ASSUMING DILUTION 78,734 61,783 66,597 69,672

Certain reclassifications of prior year amounts have been made to conform

to the current year presentation. Amounts reported in prior periods as

amortization are included now as a component of cost of sales; amounts

previously reported as depreciation (other than depreciation related to

facilities used in the production of commercial inventory and previously

included in cost of sales) are included a
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