Chitwood & Harley LLP Charges aaiPharma Inc. With Securities Fraud in Class Action Complaint with Expanded Class Period Expanded Class Period: April 24, 2002 through February 4, 2004.

Business Editors

ATLANTA--(BUSINESS WIRE)--Feb. 23, 2004

Chitwood & Harley LLP announces that it has filed a securities fraud class action complaint against aaiPharma Inc. (NASDAQ: AAII)("aaiPharma" or the "Company") and three of its senior officers on behalf of purchasers of AAII securities from April 24, 2002 through and including February 4, 2004. A copy of the complaint is available from the U.S. District Court, Eastern District of North Carolina, and is on our website, www.classlaw.com. If you have questions about this case or wish to inquire about your rights in connection with this matter, you may contact us through our website by clicking on aaiPharma, or by emailing or calling Lauren S. Antonino, Esq. at [e-mail] or 1-888-873-3999 ext 6888.

The complaint alleges that Defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder. Specifically, the complaint alleges throughout the Class Period, defendants issued quarter after quarter of "record" financial results. Defendants emphasized increased revenues throughout the Class Period, fueled by strong sales of pharmaceutical products. The complaint alleges that Defendants failed to disclose that these stellar financial results were only made possible through improper sales practices, such as "channel stuffing" or flooding wholesalers with products in order to artificially boost sales, and failing to properly reserve for product returns in violation of Generally Accepted Accounting Principles ("GAAP").

On February 5, 2004, before the market opened, defendants shocked the market by announcing fourth quarter net revenues were reduced by $15.9 million. In response to the news concerning aaiPharma's previously undisclosed inventory issues, the price of aaiPharma stock dropped from over $27 per share on February 4, 2004 to $21.30 on February 5, 2004, a drop of over 23% on unusually large trading volumes of 4.8 million shares traded. The stock continued to drop as the fraudulent nature of the Company's sales and accounting practices came to light, trading at only $20 per share on February 9, 2004.

Any member of the class (i.e. an investor who purchased or otherwise acquired aaiPharma securities during the period April 24, 2002 through and including February 4, 2004, inclusive, and who suffered a loss, whether realized or unrealized) who desires to be appointed lead plaintiff in the class action must file a motion with the Court no later than April 13, 2004 on their own or through counsel of their own choice. Class members must meet certain legal requirements to serve as a lead plaintiff. Please feel free to contact Lauren Antonino, Esq., at Chitwood & Harley, who will, without obligation or cost, attempt to answer questions concerning your rights with respect to this matter. You may also choose to do nothing and remain an absent class member.

Chitwood & Harley LLP is a class action firm that concentrates its practice in representing victims of securities fraud and corporate mismanagement, as well as other complex litigation. Chitwood & Harley has been appointed lead counsel in major actions throughout the United States and has been instrumental in recovering billions of dollars on behalf of its clients. Clients and courts alike have praised the results achieved by Chitwood & Harley. Recently, the federal judge in In re BankAmerica Securities Litigation, which resulted in one of the highest recoveries ever in a private securities class action, commented favorably on counsel's performance stating: ``Class members were well served by experienced attorneys who, through considerable time and effort, obtained a significant recovery for their clients,'' and, ``(a)s the Court has remarked throughout this litigation, class counsel ... have performed at exceptionally high levels, and all parties have been exceedingly well represented.''

For more information about Chitwood & Harley, please visit our website at www.classlaw.com or contact Lauren S. Antonino at 1-888-873-3999 (toll-free), by e-mail at [e-mail] or at 1230 Peachtree Street, Suite 2300, Atlanta, Georgia 30309.