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QMed, Inc. Reports Year-End and Fourth Quarter Results

>Selling, general and administrative

expenses 7,798,511 12,397,618 7,585,837

Research and development expenses 2,096,477 1,558,325 1,323,397

(Loss) income from continuing

operations (7,389,079) (10,584,074) 5,715,206

Interest expense (28,333) (19,314) (27,294)

Interest income 223,488 696,512 441,353

Loss from operations of joint

venture (4,547) (77,365) (847,830)

Other income 2,375,550 450,000 3,486

(Loss) income before income tax

(provision) benefit and

discontinued operations (4,822,921) (9,534,241) 5,284,921

Gain on sale of state tax

benefits - - 115,912

(Provision) benefit for income

taxes (23,895) 38,878 (392,000)

(Loss) income from operations

before discontinued operations (4,846,816) (9,495,363) 5,008,833

Discontinued Operations:

Loss from operations (6,622,497) (4,740,861) (1,123,288)

Gain from sale 216,952 - -

Net (loss) income $(11,252,361) $(14,236,224) $3,885,545

Basic (loss) income per share

Weighted average shares

outstanding 16,968,431 16,810,667 16,465,178

Basic (loss) income per share -

continuing operations $(.28) $(.57) $.30

Basic (loss) income per share -

discontinued operations (.38) (.28) (.06)

Basic (loss) income per share $(.66) $(.85) $.24

Diluted (loss) income per share

Weighted average shares

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