Par Pharmaceutical Reports Fourth Quarter and Full Year 20...(value $0.01 per share authorized 90...),Health

share, authorized 90,000,000 shares,

issued 36,460,461 and 35,901,276

shares 364 359

Additional paid-in-capital 274,963 254,013

Retained earnings 230,195 180,298

Accumulated other comprehensive

loss (1,362) (431)

Treasury stock, at cost 2,604,977

and 889,245 shares (66,405) (33,188)

Total stockholders' equity 437,755 401,051

Total liabilities and stockholders'

equity $781,523 $814,677

PAR PHARMACEUTICAL COMPANIES, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In Thousands, Except Per Share Data)

(Unaudited)

Three months ended Twelve months ended

December 31, December 31, December 31, December 31,

2007 2006 2007 2006

Revenues:

Net product sales $149,494 $176,807 $739,020 $705,378

Other product

related revenues 5,646 6,826 30,646 19,790

Total revenues 155,140 183,633 769,666 725,168

Cost of goods sold 97,293 124,680 501,147 507,220

Gross margin 57,847 58,953 268,519 217,948

Operating expenses:

Research and

development 16,528 18,459 77,659 62,442

Selling, general and

administrative 37,751 37,152 138,217 148,488

Intangible assets

impairment - 1,100 - 1,100

Settlements, net - - (945) 1,
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