KV Pharmaceutical Company Completes Unaudited Fiscal 2007 Results; Receives Trading Extension...(expense 5432 ...),Health

Interest and other income (3,048) - (3,048)

Total other expense (income) 2,384 - 2,384

Income before income taxes 50,028 (728) 49,300

Provision for income taxes 16,759 1,324 (a)(b)(c) 18,083

(d)(e)

Net income $33,269 $(2,052) $31,217

Earnings per share:

Basic - Class A common $0.71 $(0.03) $0.68

Basic - Class B common 0.59 (0.03) 0.56

Diluted - Class A common 0.63 (0.03) 0.60

Diluted - Class B common (f) 0.52

Shares used in per share

calculation:

Basic - Class A common 34,228 (494) (g) 33,734

Basic - Class B common 15,005 (172) (g) 14,833

Diluted - Class A common 59,468 (835) (g) 58,633

Diluted - Class B common (f) 15,072

(a) Adjustment for stock-based compensation expense pursuant to APB 25

($927 in 2006 and $1,080 in 2005) and the related income tax impact

($286 in 2006 and $323 in 2005).

(b) Adjustment for payroll taxes, interest and penalties associated with

stock-based compensation expense ($2,294 in 2006 and $545 in 2005) and

the related income tax impact ($635 in 2006 and $151 in 2005).

(c) Adjustment for additional liabilities associated with tax positions

claimed, partially offset by certain expected tax refunds ($2,171 in

2006 and $1,498 in 2005).

(d) Adjustment for revenue recognition errors related to shipments made to

certain customers and the related
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