CIMA LABS Updates Third-Quarter and Full-Year 2003 Guidance.

Business Editors/Health/Medical Writers

EDEN PRAIRIE, Minn.--(BUSINESS WIRE)--Oct. 9, 2003

CIMA LABS INC. (NASDAQ: CIMA) announced today that it is updating its guidance for the third quarter and full year 2003. Third-quarter revenues are expected to be within the Company's previously announced guidance range of $19.0 million to $20.5 million, but earnings per diluted share will be affected by expenses related to CIMA's proposed merger with aaiPharma, Inc. (NASDAQ: AAII). CIMA also is narrowing its full-year revenue guidance to a range of $72 million to $75 million from its earlier range of $70 million to $75 million.

For the third quarter, the Company expects to incur merger-related advisory, investment banking, legal and administrative expenses in connection with the proposed merger with aaiPharma, Inc. in the range of $3.5 million to $4.0 million. Under Generally Accepted Accounting Principles (GAAP), CIMA is required, as the accounting acquiree in the transaction, to expense costs related to the merger as they are incurred. Additionally, for U.S. federal tax purposes, these costs are not tax deductible.

CIMA previously expected third-quarter 2003 GAAP EPS to be in the range of $0.24 to $0.27. Solely as a result of the anticipated merger-related expenses, CIMA now expects to report GAAP diluted third-quarter earnings per share in the range of $0.03 to $0.06. In the fourth quarter, CIMA expects to incur additional merger-related expenses that the Company is unable to quantify at the present time and, as a result, is withdrawing its full-year 2003 earnings guidance.

"We continue to expect another solid year of revenue growth for CIMA in 2003," said CIMA Chairman of the Board and Interim CEO Steven B. Ratoff. "Product sales to our partners are meeting or exceeding our expectations and royalty revenues are trending upward. As a result, we are narrowing our full-year revenue range toward the high end. We now expect 2003 revenues to be in the range of $72 million to $75 million, compared with our previous expectation of $70 million to $75 million. However, the mix of our revenues will be different than we previously anticipated.

"We remain in active discussions regarding new projects with current and potential partners, and we are excited about the opportunities that exist in our pipeline. In addition, reflecting the preferences of existing and potential CIMA partners as well as current trends in the pharmaceutical industry, we have, in certain instances, modified our approach to business development. In these instances, we anticipate that development activities will generate less revenue in the early stages and more revenue from long-term milestones. We also have renegotiated the nature and timing of payments for certain in-process R&D activities," said Ratoff.

CIMA expects to report its third-quarter 2003 financial results on October 30, 2003.

CIMA Reschedules FDA Meeting for OraVescent Fentanyl Clinical Trials

CIMA also announced today that it will hold its meeting with the Food & Drug Administration (FDA) to discuss Phase III clinical trial protocols for the Company's OraVescent Fentanyl breakthrough cancer pain medication prior to the end of the year. CIMA had originally expected to meet with the FDA in October, but scheduling conflicts have necessitated a temporary postponement.

"We are prepared and look forward to meeting with the FDA. In addition, we believe that we are on target to achieve our previously announced plans to file a regulatory submission for OraVescent Fentanyl late in 2004 or early 2005, with a product launch occurring in late 2005 or early 2006," said Ratoff.

OraVescent Fentanyl combines Fentanyl citrate, a pharmaceutical compound indicated for breakthrough cancer pain, with CIMA's proprietary OraVescent transmucosal drug delivery technology. Pharmacokinetic studies conducted late in 2002 indicated that OraVescent Fentanyl is faster acting and provides greater absorption than the leading Fentanyl treatment.

About CIMA

CIMA develops and manufactures prescription and over-the-counter products based upon its proprietary, orally disintegrating drug delivery technologies, OraSolv(R) and DuraSolv(R). Based on these technologies, an active drug ingredient, which the Company frequently taste-masks, is formulated into a new, orally disintegrating dosage form that dissolves quickly in the mouth without chewing or the need for water. The Company develops and manufactures orally disintegrating versions of drugs for pharmaceutical company partners for whom CIMA currently produces three branded prescription pharmaceuticals and three over-the-counter brands. CIMA is also developing proprietary products utilizing its orally disintegrating technologies, as well as its new OraVescent(R) enhanced absorption, transmucosal drug delivery technology.

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of the "Safe Harbor" provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on the current expectations and beliefs of CIMA's management and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The forward-looking statements contained in this press release include statements about future financial and operating results, the proposed merger of aaiPharma and CIMA, and a potential meeting with the U.S. Food and Drug Administration (FDA) regarding OraVescent Fentanyl. These statements are not guarantees of future performance, involve certain risks, uncertainties and assumptions that are difficult to predict, and are based upon assumptions as to future events that may not prove accurate. Therefore, actual outcomes and results may differ materially from what is expressed herein.

In any forward-looking statement in which CIMA expresses an expectation or belief as to future results, that expectation or belief is expressed in good faith and believed to have a reasonable basis, but there can be no assurance that the statement or expectation or belief will result or be achieved or accomplished. Risks and uncertainties pertaining to the following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: unexpected costs related to the merger or litigation; the impact of uncertainty surrounding the merger on CIMA's business; the impact of competition, new data, supply issues or marketplace trends on the market for CIMA's products; technical, regulatory or manufacturing issues, new data or intellectual property disputes that may affect CIMA's programs; the ability to develop and market products in a timely manner; and difficulties in gaining approval of new products. Additional economic, business, competitive and/or regulatory factors affecting CIMA's business generally that may cause actual results to differ materially are discussed in its filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended December 31, 2002, especially in the Management's Discussion and Analysis section, its most recent Quarterly Report on Form 10-Q and its Current Report on Form 8-K. CIMA does not undertake any obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.