Cephalon's 2007 Results Exceed Full Year Sales and Earning...(xclude charges related to certain employ...)

costs ($7.2 million) and a significant one-time charitable

contribution ($4.0 million). In 2006, to exclude charges associated

with the settlement of the PROVIGIL patent litigation ($6.0 million)

and employee severance costs associated with the European integration

and restructuring ($4.0 million).

(4) To exclude the reserve established for the agreement in principle

reached with the U.S. Attorney's Office in Philadelphia.

(5) To exclude the forgiveness of a mortgage loan by the Pennsylvania

Industrial Development Board.

(6) To exclude the pre-tax gain related to the sale of certain

investments.

(7) To reflect the tax effect of pre-tax adjustments at the applicable tax

rates and certain other tax adjustments primarily related to changes

in valuation allowances and other changes in tax assets and

liabilities.

(8) To exclude the U.S. Department of Defense ("DoD") Tricare program

reversal as a result of the U.S. Court of Appeals September 2006

ruling.

(9) To exclude charges related to the impairment of an intangible asset.

(10) To exclude the write-off of other acquired in-process research and

development.

(11) To exclude the debt exchange expense associated with the December

2006 exchanges of $337.0 million of zero coupon convertible

subordinated notes and $100.0 million of 2% senior subordinated

convertible notes.

(12) To exclude the write-off of deferred debt issuance costs related to

the Zero Coupon convertible subordinated notes.

(13) Amounts shown no longer exclude the impact of SFAS 123(R). The

earnings press release issued on February 12, 2007 reflected

adjustments of $15.3 million in each of Research and development and

Sel
'/>"/>