DRAXIS Health Reports Fourth Quarter and Year E...(nts adjusted diluted EPS excluding sever...),Health

See Schedule of Supplemental Information, including footnote 1)

compared to diluted EPS of 9 cents (or 7 cents adjusted diluted EPS)

in the fourth quarter of 2006; for the full year 2007, diluted EPS

was 4 cents (or 5 cents adjusted diluted EPS) compared to diluted

EPS of 28 cents (or 21 cents adjusted diluted EPS) for the same

period in 2006.

As previously indicated, substantially all revenues related to the

amortization of previously received Anipryl(R) milestones terminated

on December 31, 2006. The amortization of these deferred revenues

has previously resulted in non-cash revenues of $0.8 million per

quarter or $3.3 million per year. The termination of the

amortization of deferred revenues had no effect on cash flows but

had the impact of contributing 7 cents to reported earnings per

share in 2006.

- Cash flows from operating activities in the fourth quarter of 2007

were $2.4 million and $12.6 million for the year 2007, compared to

operating cash flows of $5.7 million and $16.5 million respectively

for the same periods in 2006. The decrease was related to lower cash

earnings in the contract manufacturing segment.

- Cash and cash equivalents at December 31, 2007 were $24.8 million

compared to $21.4 million at December 31, 2006. The increase is

attributable to the increasing cash earnings of the Company and

proceeds from the exercise of stock options and customer financing,

offset by capital expenditures for projects such as a new warehouse

management system, information technology and SAP platform upgrades

and new installations related to a substantial non-sterile contract

with Johnson & Johnson Consumer Companies, In
'/>"/>