Aceto Announces A 3-for-2 Stock Dividend And An 11% Increase In Its Annual Cash Dividend; Proposed Biopharmaceutical Acquisition Remains on Track.

Business Editors

LAKE SUCCESS, N.Y.--(BUSINESS WIRE)--Dec. 4, 2003

Aceto Corporation (Nasdaq:ACET), a global distributor of pharmaceuticals and specialty chemicals, today announced that its Board of Directors declared a 3-for-2 stock dividend and a cash dividend of $.17, an 11% increase over last year's dividend (both adjusted for the stock dividend), to be paid semi-annually.

The stock dividend and the cash dividend will be distributed on January 2, 2004 to shareholders of record as of December 17, 2003. The semiannual payment on January 2, 2004 will be $.085 per common share on shares outstanding after the stock dividend. Shareholders entitled to fractional shares resulting from the stock dividend will receive cash in lieu of such fractional shares based on the closing price of the Company's stock on the record date. After the stock distribution, there will be approximately 15.7 million shares outstanding.

Leonard S. Schwartz, Chairman, CEO and President of Aceto, stated, "The continuation and increase in our dividend distribution illustrates the Board of Directors' confidence in the Company's prospects for the remainder of fiscal 2004 and beyond. The Board's positive outlook is largely due to our strong first quarter results, pipeline of over 50 generic products, recent formation of a joint venture with Nufarm, imminent expansion in Eastern Europe and pending entrance into the biopharmaceutical market via the proposed acquisition of a biopharmaceutical distribution company. This is the 20th consecutive year that we have distributed cash dividends, and the 45th stock dividend in Aceto's history. We believe it is important to share the Company's profits with its shareholders, and anticipate improved liquidity in our stock as a result of the stock dividend."

At Aceto's 2003 Annual Meeting held this morning, Mr. Schwartz indicated that the proposed acquisition of a biopharmaceutical distribution company remains on track, with the definitive acquisition agreement expected to be executed on or about December 15, 2003, and the closing of the transaction anticipated to take place on or about December 31, 2003. There can be no assurance given, however, that the definitive acquisition agreement will be executed as expected or that the acquisition will ultimately be effected.

ABOUT ACETO

Aceto Corporation, which was incorporated in 1947, is a global leader in the distribution and marketing of pharmaceutical and specialty chemicals used principally in the agricultural, color, pharmaceutical, surface coating/ink and general chemical industries. With offices in nine countries, Aceto Corporation distributes over 1,000 chemicals in these and other fields. For more information, please visit www.aceto.com.

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The forward-looking statements are based on current expectations, estimates and projections made by management. The Company intends for the forward-looking statements to be covered by the safe-harbor provisions for forward-looking statements. Words such as "anticipates," "expects," "intends," "plans," "believes," "seeks," "estimates," or variations of such words are intended to identify such forward-looking statements. The forward-looking statements contained in this press release include, but are not limited to, establishing other business locations in Eastern Europe and acquiring a biopharmaceutical distribution company. All forward-looking statements in this press release are made as of the date hereof, and the Company assumes no obligation to update these forward-looking statements whether as a result of new information, future events or otherwise. The forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those set forth or implied by any forward-looking statements. These uncertainties include, but are not limited to, economic and political conditions in the United States and abroad, as well as other risks detailed in the Company's SEC reports, including the Company's Form 10-K and other filings. Copies of these filings are available through the SEC's electronic data gathering analysis and retrieval system (EDGAR) at www.sec.gov.