AAIPharma Set to Emerge From Chapter 11 After Court Confirms Chapter 11 Plan of Reorganization.

WILMINGTON, N.C. -- AAIPharma Inc. (PINK SHEETS:AAIIQ) announced today that the U.S. Bankruptcy Court for the District of Delaware has confirmed the Company's Chapter 11 Plan of Reorganization. The Company expects that the Plan, which received the overwhelming support of the Company's creditors that voted on the Plan, will become effective by early February 2006.

Under the terms of the reorganization plan, approximately 100% of the equity of the Company will be distributed to its current bondholders, including amongst others JPMorgan Securities, Inc., which will result in the Company being a private Company. Holders of unsecured claims will be entitled to receive their pro rata share of a cash distribution from a $4 million pool. Current holders of the Company's common stock will receive no distribution and all shares of AAIPharma's existing common stock will be cancelled.

The Company has also obtained commitments to refinance the Company's existing DIP financing and to provide for the Company's working capital needs. The effectiveness of the Plan is subject to the satisfaction of a number of conditions, including the consummation of the financing. Although no assurances can be given that the conditions to obtaining the financing will be satisfied, the Company believes that the financing will be consummated by early February 2006.

"We are very pleased that the Court has confirmed our plan of reorganization," stated Dr. Ludo J. Reynders, President & CEO of AAIPharma. "Upon consummation of the plan, AAIPharma will emerge as a healthy company with restored financial strength to meet the needs of our customers and to provide a stable work environment for our employees. We look forward to the many new opportunities available to the Company following completion of our reorganization."

About AAIPharma

AAIPharma Inc. is a global provider of product development and support services to the pharmaceutical, biotechnology, and medical device industries. From a single test through a range of integrated service offerings, we create value to an industry in search of productivity and innovation. For more information on the Company, please visit AAIPharma's website at www.aaipharma.com.

Forward Looking Statements

Information in this press release contains certain "forward-looking statements" under the federal securities laws. The "forward-looking statements" herein involve risks and uncertainties that could cause actual results to differ materially, including, without limitation, risks and uncertainties relating to the Company's ability to secure anticipated exit financing. Additional relevant risk factors are discussed in the Company's most recent Quarterly Report on Form 10-Q filed with the SEC.