ImpaxX Announces Decision on Generic Prilosec Litigation

HAYWARD, Calif.--(BUSINESS WIRE)--Jun 1, 2007 - IMPAX Laboratories, Inc. (OTC:IPXL) today announced that the U.S. District Court for the Southern District of New York has rendered a decision in IMPAX's patent litigation with AstraZeneca involving IMPAX's Abbreviated New Drug Applications (ANDA) for generic versions of Prilosec(R) (omeprazole) delayed release capsules, 10 mg, 20 mg and 40 mg. The court found two of AstraZeneca's patents valid and infringed by IMPAX's product. The court has asked for additional submissions on the form of the relief, if any, in view of the fact that Astra had previously dropped its damages claim against IMPAX in order to avoid a jury trial and that the patents had expired on April 20, 2007.

Furthermore, while the two AstraZeneca patents at issue expired on April 20, 2007, AstraZeneca claims that it is still entitled to pediatric exclusivity until October 20, 2007 and that the FDA should revoke IMPAX's final approval until expiry of the pediatric exclusivity period. IMPAX does not believe that AstraZeneca is entitled to such relief.

Pursuant to a June 2001 strategic alliance agreement, Teva Pharmaceutical Industries Ltd. (Nasdaq:TEVA) has U.S. marketing rights to IMPAX's omeprazole delayed release capsules. In September and November 2004, Teva commenced sales of IMPAX's 20 and 10 mg strengths, respectively.

About IMPAX Laboratories, Inc.

IMPAX Laboratories, Inc. is a technology based specialty pharmaceutical company applying its formulation expertise and drug delivery technology to the development of controlled-release and specialty generics in addition to the development of branded products. IMPAX markets its generic products through its Global Pharmaceuticals division and markets its branded products through the IMPAX Pharmaceuticals division. Additionally, where strategically appropriate, IMPAX has developed marketing partnerships to fully leverage its technology platform. IMPAX Laboratories is headquartered in Hayward, California, and has a full range of capabilities in its Hayward and Philadelphia facilities. For more information, please visit the Company's Web site at: www.impaxlabs.com.

"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995:

To the extent any statements made in this news release contain information that is not historical, these statements are forward-looking in nature and express the beliefs and expectations of management. Such statements are based on current expectations and involve a number of known and unknown risks and uncertainties that could cause IMPAX's future results, performance or achievements to differ significantly from the results, performance or achievements expressed or implied by such forward-looking statements. Such risks and uncertainties include, but are not limited to, possible adverse effects resulting from the delisting of and suspension of trading in IMPAX's stock, the SEC proceeding to determine whether to suspend or revoke the registration of IMPAX's securities under section 12 of the Securities Exchange Act, IMPAX's delay in filing its periodic reports subsequent to its Form 10-Q for the third quarter of 2004, IMPAX's ability to obtain sufficient capital to fund its operations, the difficulty of predicting FDA filings and approvals, consumer acceptance and demand for new pharmaceutical products, the impact of competitive products and pricing, IMPAX's ability to successfully develop and commercialize pharmaceutical products, IMPAX's reliance on key strategic alliances, the uncertainty of patent litigation, the availability of raw materials, the regulatory environment, dependence on patent and other protection for innovative products, exposure to product liability claims, fluctuations in operating results and other risks detailed from time to time in IMPAX's filings with the Securities and Exchange Commission. Forward-looking statements speak only as to the date on which they are made, and IMPAX undertakes no obligation to update publicly or revise any forward-looking statement, regardless of whether new information becomes available, future developments occur or otherwise.

Contact

Company Contacts:
IMPAX Laboratories, Inc.
Larry Hsu, Ph.D. President & CEO, 510-476-2000 ext. 1111
Arthur Koch, CFO, 215-933-0351
www.impaxlabs.com
or
Investor Relations Contacts:
Lippert/Heilshorn & Associates, Inc.
Kim Sutton Golodetz, 212-838-3777
kgolodetz@lhai.com
Bruce Voss, 310-691-7100
bvoss@lhai.com
www.lhai.com

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