Hi-Tech Pharmacal Acquires Rights to Branded Products to be Promoted by Their ECR Pharmaceuticals Subsidiary

AMITYVILLE, N.Y.--(BUSINESS WIRE)-- Hi-Tech Pharmacal Co., Inc. (NASDAQ:HITK - News), a specialty pharmaceuticals company, announced today that they acquired marketing and distribution rights to several unique branded products for the treatment of pain from Atley Pharmaceuticals. Some products are approved and some are pending approval with the Food and Drug Administration (FDA). The Company paid $3.6 million in cash for rights to the products and inventory. Hi-Tech will pay royalties for certain of these products under a license agreement it has assumed.

David Seltzer, Hi-Tech's President and CEO said, “We are pleased to add these branded prescription products to our product portfolio. We believe the acquisition of these products creates an excellent synergy with ECR’s current product line, and provides additional therapeutic options to help primary care physicians and their patients address problems with pain.”

The Company believes that this acquisition will begin to generate revenue in the very near term, and will be accretive to earnings and cash flow positive within the first 12 months.

ECR Pharmaceuticals will begin training sales representatives to promote the newly acquired products immediately.

About Hi-Tech Pharmacal

Hi-Tech is a specialty pharmaceutical company developing, manufacturing and marketing generic and branded prescription and OTC products. The Company specializes in difficult to manufacture liquid and semi-solid dosage forms and produces a range of sterile ophthalmic, otic and inhalation products. The Company's Health Care Products Division is a leading developer and marketer of branded prescription and OTC products for the diabetes marketplace. Hi-Tech's ECR Pharmaceuticals subsidiary markets branded prescription products.

Forward-looking statements (statements which are not historical facts) in this Press Release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not promises or guarantees and investors are cautioned that all forward-looking statements involve risks and uncertainties, including but not limited to the impact of competitive products and pricing, product demand and market acceptance, new product development, the regulatory environment, including without limitation, reliance on key strategic alliances, availability of raw materials, fluctuations in operating results and other results and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission. These statements are based on management's current expectations and are naturally subject to uncertainty and changes in circumstances. We caution you not to place undue reliance upon any such forward looking statements which speak only as of the date made. Hi-Tech is under no obligation to, and expressly disclaims any such obligation to, update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.

Contact:

Hi-Tech Pharmacal Co., Inc.Bill Peters, 631-789-8228