Chattem, Inc., Signs Three-Year Deal with Shaquille O'Neal to Endorse Icy Hot Line of Topical Analgesics.

Sports Editors/Business Editors

CHATTANOOGA, Tenn.--(BUSINESS WIRE)--March 20, 2003

Chattem, Inc. (NASDAQ:CHTT), a leading marketer and manufacturer of branded consumer products, announced today that it has entered into a three-year agreement with three-time NBA Champion and nine-time all-star basketball player Shaquille O'Neal to endorse the Company's line of Icy Hot(R) topical analgesics. Icy Hot is the fastest growing topical analgesic in the category and the #2 brand overall.

The endorsement campaign will kick off with the Company's launch of the Icy Hot Back Patch. The Icy Hot Back Patch is a product extension of the highly successful Icy Hot Patch introduced in January 2001. The Icy Hot Back Patch is specially designed for the 93 million Americans who live and work with back pain. It features the same extra strength medicine as the Icy Hot Patch but is designed for maximum coverage of the back. In addition, the product features the exclusive Pop 'N Peel backing to ensure ease of application and use.

CEO Zan Guerry said, "The Icy Hot Back Patch is perhaps the most significant new product launch in Chattem's history. We will be backing it with a $12 million advertising campaign starting in July. Shaquille O'Neal is an ideal spokesperson for Icy Hot and we are looking for great results from Shaquille's association with the Icy Hot Back Patch."