KV Pharmaceutical Reports Record Revenues for Fiscal 2008 Third Quarter and Year-to-Date on a Prelimi...(XL Astra Zeneca) and Diltiazem HCl Exten...),Health

Consolidated gross profit margin for the third quarter was 69.3%, compared with 67.4% in the year-ago period. Gross profit margin during the third quarter for ETHEX improved to 66.5%, compared to 58.9% during the third quarter of fiscal 2007, with Ther-Rx gross profit also improving to 90.2%, compared to 88.0% during the third quarter of fiscal 2007.

Net income for the quarter was $32.0 million, or $0.56 per diluted Class A share, compared to $18.5 million, or $0.33 per diluted Class A share for the third quarter of fiscal 2007.

Marc S. Hermelin, Chairman of the Board and Chief Executive Officer stated, "KV enjoyed a solid third quarter, including growth at ETHEX due to continued revenue contribution from the 100 mg and 200 mg strengths of Metoprolol Succinate Extended Release Tablets and our Diltiazem HCl Extended- Release Capsules. With continuing momentum in our branded business, as well as the anticipated launch of Evamist(TM) during the fourth quarter, we expect to capitalize on our performance momentum during the remainder of fiscal 2008 and beyond."

NINE-MONTH RESULTS

Net revenue for the fiscal 2008 nine-month period improved 40.6% to $454.4 million, compared to $323.1 million for the corresponding year-ago period. For the nine months ended December 31, 2007, net income was $79.9 million, or $1.40 per diluted Class A share, compared to $40.6 million, or $0.74 per diluted Class A share, in the prior year period.

Net income for the nine-month period included a write-off of $6.5 million (net of tax) of in-process research and development costs related to the previously reported acquisition of Evamist(TM), a transdermal estradiol spray for the treatment of vasomotor symptoms associated with menopause. Excluding this write-off, earnings (non-GAAP) for the nine-month period would have been $86.4 million, or
'/>"/>