KV Pharmaceutical Company Completes Unaudited Fiscal 2007 Results; Receives Trading Extension...(- Diluted - Class B common ...),Health

Diluted - Class B common 0.03 - -

Earnings per share:

Basic - Class A common $1.23 $0.24 $0.68

Basic - Class B common 1.03 0.20 0.56

Diluted - Class A common 1.05 0.23 0.60

Diluted - Class B common 0.91 0.20 0.52

Shares used in per share

calculation:

Basic - Class A common 36,813 35,842 33,734

Basic - Class B common 12,390 12,918 14,833

Diluted - Class A common 58,953 49,997 58,633

Diluted - Class B common 12,489 13,113 15,072

(a) Change in accounting principle reflects the effect of estimated

forfeitures related to outstanding awards that are not expected to

vest as of the adoption of FAS 123R.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(Dollars in thousands, except per share data)

(1) The accompanying unaudited consolidated financial statements of the

Company have been prepared in accordance with U.S. generally accepted

accounting principles (GAAP), with the exception that they do not

include all of the information and footnotes required by GAAP for

complete financial statements. All financial data presented herein is

preliminary and subject to audit.

As the Company previously reported, a Special Committee of independent

members of the Company's Board of Directors investigated the Company's

stock option policies and procedures. The Special Committee found that

our previous accounting for stock-based compensation was not in

accordance with GAAP and that corrections to our previously issued

consolidated financial statements
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