Par Pharmaceutical Reports Third-Quarter 20...($1269 $4387 $45581 $1696 .....),Health

Earnings per share of common

stock:

Basic $0.04 $0.13 $1.31 $0.05

Diluted $0.04 $0.13 $1.30 $0.05

Weighted average number of

common shares outstanding:

Basic 34,738 34,468 34,677 34,401

Diluted 34,906 34,566 34,949 34,636

Reconciliation Between Reported (GAAP) and Adjusted Net Income

(In thousands, except per share data)

(Unaudited)

Three Months Ended

September 29, September 30,

2007 2006

Reported Net Income $1,269 $4,387

Branded License Fees and Premium Paid on Equity

Investment 16,150 -

Gain on Sale of Product Rights* - (1,150)

Severance Costs - 7,106

Estimated Tax on Adjustments (6,299) (2,323)

Adjusted Net Income (non-GAAP measure) $11,121 $8,020

Diluted Earnings Per Share:

Reported $0.04 $0.13

Adjusted (non-GAAP measure) $0.32 $0.23

Nine Months Ended

September 29, September 30,

2007 2006

Reported Net Income $45,581 $1,696

Gain on Sales of Product Rights*
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