Par Pharmaceutical Files Form 10-K for 2006 -- Company to Hold First Analysts' Meeting Septembe...(common shares outstanding: Basic ...),Health

Basic 34,484 34,503 34,422 34,191

Diluted 34,703 34,503 34,653 34,435

Reconciliation Between Reported (GAAP) and Adjusted Net Income (Loss)

(In thousands, except per share data)

(Unaudited)

Three Months Ended

Dec. 31, Dec. 31,

2006 2005

Reported Net Income $5,045 $(35,713)

Severance Costs 5,229 --

Asset Impairment 1,000 9,178

Investment Gain (3,190) --

Loss from Discontinued Operations -- 39,566

Estimated Tax on Adjustments (1,185) (18,128)

Adjusted Net Income (Loss) (non-GAAP measure) $6,899 $(5,097)

Diluted Earnings (Loss) Per Share:

Reported $0.15 $(1.04)

Adjusted (non-GAAP measure) $0.20 $(0.15)

Twelve Months Ended

Dec. 31, Dec. 31,

2006 2005

Reported Net Income $6,741 $(15,309)

Severance Costs 12,373 --

Write-off of Accounts Receivable

Relating to Invalid Customer Deductions 9,965 --

Arbitration Settlement 1,502 --

Asset Impairment
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