Aceto Corporation to Pursue Sale of Institutional Sanitary Supplies Unit to Focus on Core Segments and Patent-Pending Landfill Odor Control Product.

LAKE SUCCESS, N.Y. -- Aceto Corporation (Nasdaq:ACET), a global distributor of chemically-derived pharmaceuticals, biopharmaceuticals, specialty chemicals and agrochemicals, today announced that on December 31, 2004, the Company committed to a plan to divest its non-core Institutional Sanitary Supplies ("ISS") segment. A sale will enable management to focus on Aceto's core segments - Health Sciences, Chemicals & Colorants, and Agrochemicals - as well as Landfill Odorend, Aceto's patent-pending landfill odor control product, which will be integrated into the Chemicals & Colorants segment.

The ISS segment recorded sales of $5.7 million in fiscal 2004, representing 2% of the Company's total sales. Products in this portion of the business include cleaning solutions, fragrances, and deodorants for commercial and industrial customers.

Leonard S. Schwartz, Chairman, CEO and President of Aceto, stated, "The sale of our ISS segment will enable us to focus our efforts on the Company's faster-growing business segments and new initiatives underway, including Landfill Odorend. We continue to be extremely enthusiastic about the prospects for this product based on the positive results of our on-site trials, the size of the market and the need to reduce emissions from a significant portion of landfills."

ABOUT ACETO

Aceto Corporation, which was incorporated in 1947, is a global leader in the distribution and marketing of biopharmaceuticals, chemically-derived pharmaceuticals, specialty chemicals and agrochemicals used principally as raw materials in the agricultural, color, pharmaceutical, surface coating/ink and general chemical consuming industries. With offices in ten countries, Aceto Corporation distributes over 1,000 chemicals in these and other fields.

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," "hopes," "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, the completion of the sale of the Company's Institutional Sanitary Supply segment, and developing a landfill odor product. 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, other than as required by law. 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, the mix of products sold and the profit margins thereon, order cancellation or a reduction in orders from customers, competitive product offerings and pricing actions, the availability and pricing of key raw materials, dependence on key members of management, risk of entering into new European markets, continued successful integration of acquisitions, 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 at www.sec.gov.