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KV Pharmaceutical Company Reduces Workforce
Date:2/9/2009

ct recalls or product introductions result in litigation, agency action or material damages; (16) the possibility that the findings of the Audit Committee inquiry referenced in the Company's Form 10-Q for the quarter ended June 30, 2008, and Form 12b-25 filed with the SEC on November 13, 2008, could have a material impact on the Company's financial results; (17) the satisfaction or waiver of the other closing conditions in the previously disclosed Gestiva(TM) acquisition agreement; (18) the possibility that the auction rate securities held by the Company may not return to liquidity at their face value or at all; (19) the Company's voluntary suspension of the production and shipment of substantially all of the products that the Company manufactures and the related nationwide recall affecting substantially all of the products that the Company manufactures as well as the expected material adverse effect on the Company's revenue, assets and liquidity and capital resources, all as more fully described in the Company's Form 8-K filed with the SEC on January 26, 2009; (20) the series of putative class action lawsuits alleging violations of the federal securities laws by the Company and certain individuals, all as more fully described in the Company's Form 8-K filed with the SEC on January 26, 2009; (21) the informal inquiry initiated by the SEC and any related or additional governmental investigative or enforcement proceedings, including actions by the FDA and the U.S. Department of Justice, all as more fully described in the Company's Form 8-K filed with the SEC on January 26, 2009; (22) delays in returning the Company's products to market, including loss of market share as a result of the suspension of shipments, and related costs; and (23) the risks detailed from time-to-time in the Company's filings with the SEC.

This discussion is by no means exhaustive, but is designed to highlight important factors that may impact the Company's outlook. The Company is under
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SOURCE KV Pharmaceutical Company
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