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KV Pharmaceutical Company Reports Fiscal 2009 First Quarter Results
Date:8/11/2008

of the Company's products, as well as new product launches planned during fiscal 2009 and their potential impact on fiscal 2009 financial performance, we are providing guidance for the current fiscal year. It is not the Company's expectation to further update this guidance during the course of the fiscal year or for future periods.

Subsequent Event

The Company was notified last week that the Audit Committee of its Board of Directors has recently commenced an independent inquiry into allegations made by sources not identified to management regarding alleged misconduct by management of the Company. Since 1995, the Company has had in place a Standard of Business Ethics Policy. As part of this policy, an employee is encouraged to report, independent of management and for any reason, any action an employee suspects to be contrary to this code of ethics. Management has not been advised as to the specifics of the allegations and is not in a position to make an informed determination as to whether the allegations have any merit. Management is not aware of and does not believe that there has been any misconduct that would have a material impact on the Company's financial results. Management is cooperating fully with the Committee.

As a result of the inquiry, KPMG LLP, the Company's independent registered public accounting firm, has advised the Company that they will be unable to complete its SAS 100 review of the consolidated financial statements for the first quarter of fiscal 2009, prior to reviewing the results of the completed Audit Committee inquiry.

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