Akorn, Inc. Signs Definitive Commercial Manufacturing Supply Agreement with Advanced Vision Research, Inc.

BUFFALO GROVE, Ill. -- Akorn, Inc. (AMEX:AKN) today announced that it has signed a Definitive Commercial Manufacturing Supply Agreement with Advanced Vision Research Inc. (AVR) for the product, TheraTears(R) lubricant eye drops. Akorn and Advanced Vision Research had previously announced the signing of a Term Sheet for the manufacture of TheraTears(R) on June 6, 2006. TheraTears(R) is a market leading over-the-counter ophthalmic solution for the treatment of dry eyes, and has recently been named by Drug Store News as the leading niche product in the eye care category.

The Commercial Manufacturing Supply Agreement provides for Akorn to manufacture and supply Advanced Vision Research with TheraTears(R) for seven years. TheraTears will be manufactured in Akorn's Decatur, IL facility. Akorn and Advanced Vision Research anticipate initiating dialogue on additional new contract development and manufacturing opportunities in AVR's active product pipeline.

Arthur S. Przybyl, Akorn's President and Chief Executive Officer stated, "Akorn is committed to expanding its Contract Development and Manufacturing services business. I want to thank Advanced Vision Research for choosing Akorn to manufacture TheraTears(R). We expect to begin supplying TheraTears(R) to Advanced Vision Research in the fourth quarter of 2006."

Advanced Vision Research President Jeffrey P. Gilbard, M.D. stated, "We are pleased to be moving forward with the manufacture of TheraTears at Akorn's Decatur facility. The responsiveness of the Akorn team is proving very helpful to us given the explosive demand for our products."

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 Advanced Vision Research, Inc.

Advanced Vision Research, with offices in Woburn, Massachusetts, develops and markets innovative pharmaceuticals for dry eye and external eye diseases under the TheraTears(R) brand. The TheraTears(R) line of products include TheraTears(R) preservative free, TheraTears(R) in a bottle, TheraTears Liquid Gel, TheraTears(R) Contact Lens Comfort Drops, TheraTears Nutrition (omega-3 supplement for dry eyes), and TheraTears(R) brand SteriLid Eyelid Cleanser. Additional information is available at the Company's website at www.theratears.com.

Materials in this press release may contain information that includes or is based upon forward-looking statements within the meaning of the Securities Litigation Reform Act of 1995. Forward-looking statements give our expectations or forecasts of future events. You can identify these statements by the fact that they do not relate strictly to historical or current facts. They use words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," and other words and terms of similar meaning in connection with a discussion of future operating or financial performance. In particular, these include statements relating to future steps we may take, prospective products, future performance or results of current and anticipated products, sales efforts, expenses, the outcome of contingencies such as legal proceedings, and financial results.

Any or all of our forward-looking statements here or in other publications may turn out to be wrong. They can be affected by inaccurate assumptions or by known or unknown risks and uncertainties. Many such factors will be important in determining our actual future results. Consequently, no forward-looking statement can be guaranteed. Our actual results may vary materially, and there are not guarantees about the performance of our stock.

Any forward-looking statements represent our expectations or forecasts only as of the date they were made and should not be relied upon as representing our expectations or forecasts as of any subsequent date. We undertake no obligation to correct or update any forward-looking statements, whether as a result of new information, future events or otherwise, even if our expectations or forecasts change. You are advised, however, to consult any further disclosures we make on related subjects in our reports filed with the SEC. In particular, you should read the discussion in the section entitled "Cautionary Statement Regarding Forward-Looking Statements" in our most recent Annual Report on Form 10-K, as it may be updated in subsequent reports filed with the SEC. That discussion covers certain risks, uncertainties and possibly inaccurate assumptions that could cause our actual results to differ materially from expected and historical results. Such factors include, but are not limited to, risks and uncertainties relating to the resolution of the FDA compliance issues at our Decatur, Illinois manufacturing facility. Other factors besides those listed there could also adversely affect our results.