KV Pharmaceutical Company Completes Unaudited Fiscal 2007 Results; Receives Trading Extension...(t prescribed in the United States. St...),Health

Status of Anticipated Branded Product Introductions

Evamist(TM)

At the close of fiscal 2007, the Company announced that it had entered into an agreement with California-based VIVUS, Inc. for the purchase of U.S. marketing rights to Evamist(TM), a novel new estrogen transdermal spray that has been developed to deliver estradiol in a convenient easy-to-use dosage form for the treatment of vasomotor symptoms associated with menopause. Under the terms of the all-cash transaction, KV paid $10 million at closing (and recognized a corresponding in-process R&D charge) and made an additional payment of approximately $140 million at the time of final approval from the FDA, which occurred in July 2007. There are also two, one-time, success milestone payment obligations tied to the net sales of the product. The Company agreed to pay a one-time payment of $10 million to VIVUS, Inc. at the time the product achieves $100 million in net sales within a marketing year and a one-time payment up to $20 million at the time the product achieves $200 million in net sales within a marketing year.

Evamist(TM) targets an annual $1.3 billion estrogen replacement market (Source: IMS NSP Audit, January 2006 - December 2006) where physicians and patients are seeking an effective and safe, low-dose estrogen product. KV believes Evamist(TM), the first transdermal spray to receive FDA approval, will offer therapeutic effectiveness with estradiol dosing that is among the lowest available for this indication in a manner that is also cosmetically appealing for women.

Evamist(TM) will be marketed by Ther-Rx's current sales force of approximately 300 specialty sales representatives to their already targeted physician specialty base of OB/GYN's. As previously stated, we expect the launch of Evamist(TM) to occur prior to the end of the Company's fiscal 2008 ending March 31, 2008. The Company believes that Evamist(TM) could potentially a
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