Able Laboratories, Inc. Files for Motion to Protect Net Operating Losses.

CRANBURY, N.J. -- Able Laboratories, Inc. (ABRXQ.PK) has filed a motion with the United States Bankruptcy Code in the United States Bankruptcy Court for the District of New Jersey, Trenton Division ("Court") requesting that the court approve procedures to protect its Net Operating Loss ("NOL") carryforward.

Based on current projections, Able expects to use a substantial portion of its NOL carryforward to offset future income and reduce its federal income tax liability, subject to limitations. Accordingly, Able requested that the Bankruptcy Court (i) find that its NOL carryforward is property of its estate and is protected by section 362(a) of the Bankruptcy Code; (ii) find that unrestricted trading of certain claims against and interests in Able could severely limit Able's ability to utilize its NOL carryforward for U.S. federal income tax purposes, and (iii) approve the procedures to preserve Able's NOL carryforward pursuant to sections 362(a) and 105(a) of the Bankruptcy Code. Any sale or other transfer in violation of the procedures would be null and void as an act in violation of the automatic stay under sections 362 and 105(a) of the Bankruptcy Code.

Specifically, the procedures provide that any beneficial owner of the common stock of Able Laboratories, Inc., and all actual or prospective purchasers or transferees of beneficial interests in the common stock, are stayed, prohibited, and enjoined, pursuant to sections 362 and 105(a) of the Bankruptcy Code, (i) in the case of a person or entity who does not beneficially own any common stock, or who beneficially owns less than five percent (5%) of such common stock, from purchasing, acquiring, or otherwise obtaining beneficially an amount which, when added to such person's or entity's total beneficial ownership, if any, equals more than 4.99% of such common stock, and (ii) in the case of a person or entity who beneficially owns five percent (5%) or more of common stock, from purchasing, acquiring, or otherwise obtaining beneficially any additional common stock.

Further, any person or entity who proposes or intends to sell, acquire, trade, or otherwise transfer or effectuate any transfer of any general unsecured claim against Able must, before any such transaction, file and serve notice of such intended transfer as set forth in the NOL motion.

Any person who wishes to obtain a copy of the NOL motion, or any other document filed with the Bankruptcy Court, may visit the official website of the United States Bankruptcy Court for the District of New Jersey at www.njb.uscourts.gov. To view such document, (i) a login and password issued by the Public Access to Court Electronic Records (PACER) service center and (ii) Adobe Acrobat Reader, or a compatible application, is needed. To obtain a copy of any document in these chapter 11 cases, at the query screen, enter case no. 05-33129, then hit "run query", then hit the hyperlink "docket report", then find the document you are interested in viewing and hit the hyperlink next to that document.

Any objections to the NOL motion must be filed with the Court and served upon: (i) Able Laboratories, Inc., 1 Able Drive, Cranbury, NJ, 08512 (Attn: Richard Shepperd); (ii) counsel to the Debtor, Cadwalader, Wickersham & Taft LLP, 1201 F Street N.W., Suite 1100, Washington, DC, 20004 (Attn: Mark C. Ellenberg, Esq.) and Lowenstein Sandler PC, 65 Livingston Avenue, Roseland, NJ 07068 (Attn: Sharon L. Levine); (iii) the Office of the United States Trustee, One Newark Center, Suite 2100, Newark, NJ 07102 (Attn: Fran Steele, Esq.); and (iv) counsel for the Unsecured Creditors' Committee, Duane Morris LLP, 744 Broad Street, Suite 1200, Newark, New Jersey 07102 (Attn: Walter J. Greenhalgh, Esq.) no later than August 10, 2005 at 4:00 p.m. EST. If no objections are received by that time, the Court may enter the order approving the NOL motion without a hearing. If objections are received a hearing will be held at the Court on August 15, 2005 at 2:00 p.m.

Further information on the company may be found on the company's web site, www.ablelabs.com. This release contains statements that are forward-looking within the meaning of applicable federal securities laws and are based upon the company's current expectations and assumptions. You should not place undue reliance on those statements because they speak only as of the date of this release. Forward-looking statements include information concerning the company's possible or assumed future operations. These statements often include words such as "expect," "plan," "believe," "anticipate," "intend," "estimate" or similar expressions. As you read and consider this release, you should understand that these statements are not guarantees of performance or results. They involve risks, uncertainties and assumptions. Although the company believes that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect actual results, which could differ materially from the forward-looking statements.

These factors include, but are not limited to, uncertainty regarding the company's ability to continue as a going concern; uncertainty regarding court approval of motions made by the company from time to time; uncertainty regarding the company's ability to develop and consummate a plan of reorganization; risks associated with third parties seeking and obtaining court approval to terminate or shorten the exclusivity period for the company to propose and confirm one or more plans of reorganization, for the appointment of a chapter 11 trustee or to convert the bankruptcy case to a chapter 7 case; the ultimate effect on the company of the pending inspectional observations from the FDA to the company; and the uncertainty relating to the ability of the company to recommence manufacturing operations and ship new products or that its ANDA filings and approvals will be completed and obtained, and the company's ability to obtain ongoing financing, and various other factors beyond the company's control. All future written and oral forward-looking statements made by the company or persons acting on the company's behalf are expressly qualified in their entirety by the cautionary statements contained or referred to above. Except for the company's ongoing obligations to disclose material information as required by the federal securities laws, we do not have any obligation or intention to release publicly any revisions to any forward-looking statements to reflect events or circumstances in the future or to reflect the occurrence of unanticipated events.