Akorn and Aero Pharmaceuticals, Inc. Enter Development and Manufacturing Agreement.

Business Editors

BUFFALO GROVE, Ill.--(BUSINESS WIRE)--May 6, 2004

Akorn, Inc. (AKRN: OB) today announced that it has entered into a development and manufacturing agreement (the "Agreement") with Aero Pharmaceutical, Inc. ("Aero") to provide contract manufacturing services. Akorn and Aero intend to commence development of a manufacturing protocol immediately, eventually leading to commercialized product.

Arthur S. Przybyl, Akorn's president and chief executive officer, stated, "The Agreement with Aero is representative of Akorn's continuing commitment to provide high quality contract manufacturing solutions and reflects the progress we have made in positioning the Company for future growth opportunities. We expect that contract manufacturing will remain an integral part of Akorn's core strategy and look forward to a very successful relationship with Aero."

Richard Aloi, Aero's president and chief executive officer, stated, "This Agreement is the result of a great deal of preparation on the part of both Akorn and Aero. We look forward to a successful product introduction and an ongoing relationship with Akorn."

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 Aero Pharmaceuticals, Inc.

Aero Pharmaceuticals, Inc. is a privately held specialty pharmaceutical company built on a foundation of extensive knowledge in respiratory health. Additional information is available at the Company's website at www.aeropharmaceuticals.com.

Any statements made by Akorn, Inc. ("we", "us", "our", "Akorn" or the "Company") in this press release that are forward looking are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The Company cautions readers that important factors may affect the Company's actual results and could cause such results to differ materially from forward-looking statements made by or on behalf of the Company. Such factors include, but are not limited to, risks and uncertainties relating to (i) the ability to generate cash from operations sufficient to meet the Company's working capital requirements, (ii) the necessity of complying with various regulatory procedures in the manufacture of drug products, (iii) the Company's ability to acquire, develop, finance, test, produce and market new products, including the availability of materials to produce products, (iv) the resolution of the FDA compliance issues at the Company's Decatur, Illinois manufacturing facility and the outcome of other legal proceedings involving the Company, (v) patent protection for the Company's intellectual property or trade secrets, and (vi) other risks detailed from time to time in filings the Company makes with the Securities and Exchange Commission including, but not limited to, those risks referenced under the caption "Factors That May Affect Future Results" in Item 1 of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2003.