Akorn, Inc. Announces Equity Investment by Serum Institute of India, Ltd.

BUFFALO GROVE, Ill. -- Akorn, Inc. (AMEX:AKN) today announced that it has reached agreement with the Serum Institute of India on the terms for the issuance of one million shares of Akorn's common stock at a share price equal to $3.56, the closing price on September 7, 2006. The final issuance of shares is subject to completion of documentation and customary closing conditions. Serum advanced monies for this transaction to Akorn on September 8, 2006.

Arthur S. Przybyl, President and Chief Executive Officer of Akorn stated, "This equity investment by Serum serves to further solidify our long term strategic partnership. Both companies intend to further expand our business relationship in the near term. Additionally, Akorn's Board of Directors intends to nominate Dr. Subash Kapre, Executive Director with Serum Institute of India, for inclusion on our Board.

"In October 2004, Akorn and Serum entered into an exclusive Drug Development and Distribution Agreement for oncology and other injectable products. Since that time, Serum has begun constructing a dedicated manufacturing facility in Pune, India to support these efforts and Akorn expects regulatory filings to commence in 2007.

"In April 2006, our two companies entered into a Memo of Understanding to broaden our product development platform to include biologics. We expect to finalize and enter into a Definitive Agreement for biologic product development and distribution in the near future."

Cyrus S. Poonawalla, Ph.D., Chairman and Managing Director of Serum Institute stated, "We are excited with this investment opportunity, as it gives both our organizations a larger canvas to develop and market a number of products for the American markets."

About Akorn, Inc.

Akorn, Inc. manufactures and markets sterile specialty pharmaceuticals. Akorn has manufacturing facilities located in Decatur, Illinois and Somerset, New Jersey and markets and distributes an extensive line of hospital and ophthalmic pharmaceuticals. Additional information is available at the Company's website at www.akorn.com.

About Serum Institute of India, Ltd.

Serum Institute is the world's fifth largest vaccine manufacturer. Its products are being exported to 137 countries across the globe. Serum institute is now the largest producer of measles and DTP vaccines in the world. An average of more than one out of every two children in the world has received at least one vaccine from Serum Institute. Additional information is available at the Company's website at www.seruminstitute.com.

The securities offered in this placement have not been registered under the Securities Act of 1933, as amended, or state securities laws, and cannot be offered or sold in the United States absent registration with the Securities and Exchange Commission (SEC) or an applicable exemption from the registration requirements. As part of the transaction, the company has agreed to file a registration statement with the SEC covering the resale of the shares of common stock issuable. This news release is neither an offer to sell nor a solicitation of an offer to buy any of the securities discussed herein and is being issued under Rule 135c of the Securities Act of 1933.

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