Cephalon's 2007 Results Exceed Full Year Sales and Earning...(s a component of research and develop...)

development or selling, general and administrative, as appropriate.

CEPHALON, INC. AND SUBSIDIARIES

Reconciliation of GAAP Net Income (Loss) to Adjusted Net Income

(Unaudited)

Three Months Ended

December 31,

2007 2006

GAAP NET INCOME (LOSS) $44,182 $(4,909)

Cost of sales adjustments 26,306 (1) 20,958 (1)

Research and development adjustments 2,000 (2) 35,500 (2) (7)

Selling, general and administrative

adjustments 11,191 (3) - (7)

Acquired in-process research and

development - 5,000 (5)

Debt exchange expense - 48,122 (6)

Income taxes (18,149)(4) (30,831)(4) (7)

21,348 78,749

ADJUSTED NET INCOME $65,530 $73,840

BASIC ADJUSTED INCOME PER COMMON SHARE $0.98 $1.20

DILUTED ADJUSTED INCOME PER COMMON

SHARE $0.83 $1.00

WEIGHTED AVERAGE NUMBER OF COMMON

SHARES OUTSTANDING 67,187 61,783

WEIGHTED AVERAGE NUMBER OF COMMON

SHARES OUTSTANDING-ASSUMING DILUTION 78,734 73,633 Notes to Reconciliation of GAAP Net Income (Loss) to Adjusted Net Income

(1) To exclude the on-going amortization of acquired intangible assets.

(2) To exclude charges related to payments for several research and

development collaborations.

(3) To exclude charges related to certain employee
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