KV Pharmaceutical Company Completes Unaudited Fiscal 2007 Results; Receives Trading Extension...(income tax impact. (e) Adjustment for...),Health

(e) Adjustment for reduction in estimated liability associated with

employee medical claims incurred but not reported ($179) and the

related income tax impact ($66).

(f) In fiscal 2007, the Company began reporting diluted earnings per share

for Class B common stock under the two-class method which does not

assume the conversion of Class B common stock into Class A common

stock. Previously, the Company did not present diluted earnings per

share for Class B common stock.

(g) Adjustment to reflect impact of unrecognized stock-based compensation

and excess tax benefits in applying the treasury stock method and

unvested stock options in the two-year forfeiture period.