Columbia Laboratories Completes Sale of OTC Portfolio.

LIVINGSTON, N.J. -- Columbia to Receive Upfront Payments Plus Ongoing Revenues from Manufacture and Sale of Product, Promotional Fees and Royalties on Product Sales

Columbia Laboratories, Inc. (NASDAQ: CBRX) announced today that it has completed the sale of its portfolio of over-the-counter women's healthcare products to Lil' Drug Store Products, Inc. (Lil' Drug Store). The companies also executed a 5 year supply agreement and a 2 1/2 year agreement for Columbia's sales force to continue to promote these products to OB/GYNs in the US. Based on performance provisions within these agreements and anticipated future cost savings from selling these businesses, Columbia places a total value on this transaction of approximately $11 million through 2009.

Lil' Drug Store purchased global rights for Columbia's RepHresh(R) Vaginal Gel and Advantage-S(R) Bioadhesive Contraceptive Gel, and foreign marketing rights for Replens(R) Vaginal Moisturizer. Columbia previously sold the US marketing rights for Replens to Lil' Drug Store in May 2000. Upon closing, Columbia will be entitled to payments of $830,000. The Company will receive ongoing revenues from the manufacture and sale of product to Lil' Drug Store, promotional fees under a professional services agreement, and royalties on product sales. The Company also anticipates significant reductions in management and marketing expenses as a result of this transaction.

"After carefully considering proposals from several potential partners, we are pleased to expand Columbia's relationship with Lil' Drug Store. This decision was based on their success in doubling US sales of Replens over the past four years, their ability and commitment to focus greater attention on Columbia's products, and the favorable structure and terms of these agreements. We look forward to maximizing our revenue potential from these products by combining Lil' Drug Store's OTC distribution relationships and their retail presence and expertise with Columbia's continuing professional promotion to OB/GYNs," stated Fred Wilkinson, Chairman, President and Chief Executive Officer of Columbia Laboratories.

"As discussed on our first quarter conference call, the sale of our OTC products will allow us to increase our focus and resources on Columbia's core business, the commercialization of our prescription products, Striant(R) (testosterone buccal system), Prochieve(R) 8% (progesterone gel), and Prochieve(R) 4% (progesterone gel), as well as the advancement of our focused R&D program. We are pleased to have rapidly concluded this agreement," concluded Wilkinson.

Under the terms of the sale, Lil' Drug Store will purchase the current US inventory of RepHresh and Advantage-S from Columbia. Columbia will supply all product requirements to Lil' Drug Store and will manufacture RepHresh, Advantage-S, and ex-US requirements for Replens.

Furthermore, Columbia's sales force will represent Replens, RepHresh and Advantage-S to its OB/GYN audience through 2006 under a professional services agreement. The Company will be compensated on a per-call basis over the duration of the agreement.

About Lil' Drug Store Products, Inc.

Lil' Drug Store Products is a privately-held consumer products company. It promotes and distributes innovative OTC consumer healthcare products to food, drug, discount and convenience stores worldwide. Lil' Drug Store's product portfolio includes Wartner(R), the world's #1 wart freezing product, Replens(R), the #1 long-lasting vaginal moisturizer in the U.S., Legatrin PM(R), Vaporizer in a Bottle(R), Prodium(R) and Kaolectrolyte(R). Lil' Drug Store is headquartered in Cedar Rapids, Iowa, and can be found on the internet at www.lildrugstore.com.

About Columbia Laboratories

Columbia Laboratories, Inc. is a U.S.-based international pharmaceutical company dedicated to the development and commercialization of women's health care and endocrinology products, including those intended to treat infertility, dysmenorrhea, endometriosis and hormonal deficiencies. Columbia markets Striant(R) (testosterone buccal system) for treatment of hypogonadism in men, Prochieve(R) 8% (progesterone gel) for progesterone supplementation as part of an Assisted Reproductive Technology treatment for infertile women with progesterone deficiency, and Prochieve(R) 4% (progesterone gel) for the treatment of secondary amenorrhea. The Company has developed a buccal delivery system for peptides. Columbia's products primarily utilize the company's Bioadhesive Delivery System (BDS) technology. For more information, please visit www.columbialabs.com.

This press release contains statements that constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Those statements include statements regarding the intent, belief or current expectations of Columbia and its management team. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those projected in the forward-looking statements. Such risks and uncertainties include, among other things, the successful marketing of Striant(R), Prochieve(R) 8%, Prochieve(R) 4%, RepHresh(R) Vaginal Gel, Replens(R) Vaginal Moisturizer and Advantage-S(R) Bioadhesive Contraceptive Gel; the impact of competitive products and pricing; the timely and successful development of products; timely and successful completion of clinical studies; success in obtaining acceptance and approval of new products by the FDA and international regulatory agencies; and competitive economic and regulatory factors in the pharmaceutical and healthcare industry; general economic conditions; and other risks and uncertainties that may be detailed, from time-to-time, in Columbia's reports filed with the Securities and Exchange Commission. Columbia Laboratories undertakes no obligation to publicly update any forward-looking statements.

Striant(R), Prochieve(R), RepHresh(R), Replens(R) and Advantage-S(R) are registered trademarks of Columbia Laboratories, Inc.