Able Laboratories Announces Completion of $8.3 Million Additional Debt Financing with Citizens Bank Tender of $670,000 in New Jersey IDR Bonds.

Business Editors/Health/Medical Writers

SOUTH PLAINFIELD, N.J.--(BUSINESS WIRE)--May 14, 2003

ABLE LABORATORIES, INC. (NASDAQ NMS:ABRX, BSE:AAB) today announced that it has completed expansion of its total credit facilities by $8.3 million.

The Company expanded its existing working capital revolving credit facility from $5.9 million to $10 million and expanded its existing non-restoring equipment financing line from $5.8 million to $10 million. The Company's existing lender, The Citizens Bank of Massachusetts, an indirect subsidiary of The Royal Bank of Scotland, is providing these credit facilities.

The Company will continue to utilize the expanded revolving credit facility to fund working capital needs. The Company will use the additional equipment financing line proceeds to acquire additional equipment and perform additional leasehold improvements. The equipment and working capital financing lines are collateralized by substantially all of the Company's assets.

Also, the Company announced today that it has accepted the tender of $670,000 face value of outstanding industrial revenue bonds issued by the New Jersey Economic Development Authority, formally designated as "New Jersey Economic Development Authority Industrial Development Revenue Bonds due June 2014, Series 1999A, CUSIP 64577LAN2 (Able Laboratories, Inc. Project)." The Bonds were tendered at 98% of face value (or 98 cents on the dollar) plus accrued interest as of the settlement date.

The purchase of the Bonds is being financed with proceeds from the Company's expanded non-restoring equipment financing line.

"We are pleased to expand our relationship with Citizens Bank," commented Jay Wadekar, President and Chief Executive Officer of Able Laboratories. "Citizens continues to provide us with competitive loan facilities and is flexible with assisting the Company with its financing needs."

Able Laboratories is a developer and manufacturer of generic pharmaceuticals. Since March 2001, Able has received 28 ANDA approvals. Further information on Able may be found on the Company's Web site, www.ablelabs.com.

Except for historical facts, the statements in this news release, as well as oral statements or other written statements made or to be made by Able Laboratories, Inc., are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and involve risks and uncertainties. For example, statements concerning the Company's operations and growth, working capital, the current or expected market size for the Company's products, the adequacy of the Company's manufacturing capacity, the availability of sufficient capital, the success of current or future product offerings, research and development efforts and the Company's ability to file for and obtain U.S. Food and Drug Administration approvals for future products, are forward-looking statements. Forward-looking statements are merely the Company's current predictions of future events. The statements are inherently uncertain, and actual results could differ materially from the statements made herein. There is no assurance that the Company will continue to achieve the sales levels necessary to make its operations profitable or that ANDA filings and approvals will be completed and obtained as anticipated. For a description of additional risks, and uncertainties, please refer to the Company's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2002. The Company assumes no obligation to update its forward-looking statements to reflect new information and developments.