Able Laboratories Announces Completion of Debt Refinancing; Existing Investors and Affiliates Provide Financing to Eliminate Guaranty.

Business Editors & Health/Medical Writers

SOUTH PLAINFIELD, N.J.--(BW HealthWire)--June 17, 2002

Able Laboratories, Inc. (OTCBB: ABLA; BSE: ABRX) today announced that it has completed a private placement of units, issuing an aggregate of $2,300,000 in 12% unsecured promissory notes, as well as warrants to purchase 170,200 shares of common stock at a purchase price of $5.10 per share. Able used the proceeds of the transaction to pay the lenders, and thereby eliminate its guarantee of, $2,250,000 in 13.5% secured subordinated debt of its former distribution subsidiary. The new financing will result in notes payable of $2.3 million on Able's balance sheet, along with a $2.25 million in secured subordinated note receivable on Able's balance sheet.

As part of the sale of Superior Pharmaceutical Company to RxBazaar, Inc. in February 2001, RxBazaar assumed Superior's subordinated debt, but Able remained obligated to the subordinated lenders as a guarantor. If this debt had not been paid off by June 17, 2002, the lenders would have earned warrants to purchase 166,667 shares of Able common stock at $0.15 per share.

"We are pleased to have eliminated this contingent liability, and do it in a way that has improved Able's security in that we are now in a secured subordinated position with respect to RxBazaar," commented Jay Wadekar, President of Able Laboratories. "Not only were we able to replace the secured contingent liability with unsecured debt at a lower interest rate, but we replaced the dilutive $0.15 warrants with warrants close to the current market price of our stock."

The lead investor in the transaction is an existing Able stockholder, Corporate Opportunity Fund (Institutional), L.P., a private equity fund managed by Houston-based investment management and investment banking firm Sanders Morris Harris which invested approximately $2,000,000 along with an affiliate fund. In addition, certain officers and directors of Able and RxBazaar provided the balance of the funding.

Able Laboratories is a developer and manufacturer of generic pharmaceuticals. Since March 2001, Able has received 13 ANDA approvals and one approvable letter from the FDA. The Company has completed its transition to focus its activities on generic drug development, manufacturing and sales. 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 about the Company's operations, capital-raising transactions and financial accounting, the current or expected market size for its products, the success of current or future product offerings, the 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 achieve the sales levels that will 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, 2001 and its Form 10-Q for the three months ended March 31, 2002. The Company assumes no obligation to update its forward-looking statements to reflect new information and developments.