Columbia Laboratories Reports Third Quarter 2002 Financial Results; Third Quarter Revenues of $4.0 Million.

Business Editors

LIVINGSTON, N.J.--(BUSINESS WIRE)--Nov. 4, 2002

Columbia Laboratories (AMEX: COB) today announced financial results for the third quarter and nine months ended September 30, 2002.

For the third quarter of 2002, the company reported a net loss of $1,879,189, or a loss of $0.05 per basic and diluted share, on net sales of $4,040,534 as compared to a net loss of $3,240,507, or a loss of $0.10 per basic and diluted share, on net sales of $411,354 in the third quarter of 2001.

The third quarter of 2002 marked both the formation of the company's dedicated 55-person sales force through the Quintiles/Innovex agreement and the initiation of its marketing and sales activities for Prochieve(TM) 8% (progesterone gel), Advantage-S(R) Bioadhesive Contraceptive Gel and RepHresh Vaginal Gel(TM) in the U.S.

For the nine-month period ended September 30, 2002, the net loss was $10,115,630, or a loss of $0.30 per basic and diluted share, on net sales of $7,072,494 as compared to a net loss of $11,489,560, or a loss of $0.38 per basic and diluted share, on net sales of $1,993,076 in the nine months ended September 30, 2001.

"We are proud to have accomplished several of our stated goals in recent months," said Fred Wilkinson, president and chief executive officer of Columbia. "These include the development of a commercialization unit through an innovative agreement with Quintiles/Innovex followed by the launch of Prochieve 8% and RepHresh, and the relaunch of Advantage-S. This marketing effort is an important step for Columbia, and will enable us to continue increasing U.S. revenues from our portfolio of women's healthcare products going forward."

Wilkinson continued, "Additionally, we made significant strides forward on the next product in our pipeline, Striant(TM) (testosterone buccal bioadhesive product) for the treatment of hypogonadism. The NDA was filed and accepted for review by the U.S. Food and Drug Administration and a PDUFA date set for June 19, 2003. We anticipate filing the U.K. application before year-end, and will file mutual recognition applications in the rest of Europe following initial regulatory approval of the U.K. application. Additionally, we executed a license and supply agreement with Ardana Bioscience, Ltd for marketing Striant(TM) in eighteen European countries, which marks the first commercial partnership for this product."

During the third quarter of 2002, Columbia received a $1.125 million payment, the first of four equal quarterly installments, from PharmaBio Development, Inc., a Quintiles company. These payments grant PharmaBio a 5% royalty on the net sales of Columbia's current women's healthcare products in the United States over the next five years. Additionally, the company received $5.5 million from the sale of Columbia stock to PharmaBio at the price of $4.90 per share.

Under the terms of the Ardana agreement, Columbia will receive total payments of $8 million, including $4 million in signature and milestone fees in the fourth quarter of 2002. Additional milestone payments totaling $2 million are due upon marketing approvals in major European countries included in the agreement. A performance payment of $2 million is also due upon achievement of a certain level of sales.

"The completion of these two strategic agreements significantly strengthens our balance sheet and provides the resources to fully execute our business plan. As a result of the Quintiles and Ardana agreements, we now have near-term commitments for $18 million, of which $11.75 million will be received by year-end 2002. These deals establish a strong foundation for the execution of our U.S. commercial plan and strengthen the partnering program for our products outside the U.S. We are extremely pleased with the progress the company has made, and believe that the accomplishment of these goals creates a solid base upon which to establish growing revenues and a future earnings stream," concluded Wilkinson.

Columbia Laboratories, Inc. is an international pharmaceutical company dedicated to research and development of women's health care and endocrinology products, including those intended to treat infertility, dysmenorrhea, endometriosis and hormonal deficiencies. Columbia is also developing hormonal products for men and a buccal delivery system for peptides. Columbia's products primarily utilize the company's patented Bioadhesive Delivery System (BDS) technology.

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 the company and its management team. Prospective 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 launch and marketing of Prochieve, RepHresh Vaginal Gel and Advantage-S, timely and successful development of products, timely and successful completion of clinical studies, success in obtaining FDA acceptance and approval of new products, including the company's Striant(TM) (testosterone buccal bioadhesive product), 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, INC. AND SUBSIDIARIES
            CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                              (unaudited)

                                Nine Months          Three Months
                                  Ended                 Ended
                               September 30,         September 30,
                             2002        2001      2002        2001
                           --------    --------  --------    --------

NET SALES                $7,072,494  $1,993,076 $4,040,534   $411,354

COST OF SALES             3,769,402   1,991,971  1,916,372    675,021
                          ---------   ---------  ---------    -------
    Gross profit          3,303,092       1,105  2,124,162   (263,667)
                          ---------   ---------  ---------    -------

OPERATING EXPENSES:
 Selling and distribution 2,221,096     789,082  1,384,804    272,173
 General and
  administrative          3,507,664   2,980,217  1,232,148  1,067,590
 Research and development 3,457,346   4,872,652  1,139,717  1,482,556
 Litigation settlement
  expense                 3,960,000           -          -          -
 Product recall costs      (449,489)  1,500,000          -          -
 Corporate restructuring
  expense                         -   1,000,000          -          -
                         ----------  ----------  ---------  ---------
  Total operating
   expenses              12,696,617  11,141,951  3,756,669  2,822,319
                         ----------  ----------  ---------  ---------

    Loss from operations (9,393,525)(11,140,846)(1,632,507)(3,085,986)
                          ---------  ----------  ---------  ---------

OTHER INCOME (EXPENSE):
  Interest income            33,814     228,453     12,125     53,390
  Interest expense         (643,445)   (566,514)  (237,447)  (188,838)
  Other, net               (112,474)    (10,653)   (21,360)   (19,073)
                          ---------  ----------  ---------   --------
                           (722,105)   (348,714)  (246,682)  (154,521)
                          ---------  ----------  ---------   --------

Net loss             $(10,115,630)$(11,489,560)$(1,879,189)$(3,240,507)
                       ==========   ==========   =========   =========

NET LOSS PER COMMON
 SHARE - BASIC AND DILUTED   $(0.30)     $(0.38)    $(0.05)    $(0.10)
                              =====       =====      =====      =====
WEIGHTED AVERAGE NUMBER
 OF COMMON SHARES OUTSTANDING:
  BASIC AND DILUTED       34,034,284  31,031,883 35,087,980 31,429,067
                          ==========  ========== ========== ==========

Note - Prior year financial statements have been reclassified to
conform to the 2002 presentation.

                                        Sept. 30, 2002   Dec. 31, 2001
                                        --------------   -------------
                                          (unaudited)
Balance Sheet Data:
Cash and cash equivalents              $    4,306,544   $   4,060,836
Working capital                             6,185,697       4,622,083
Total assets                               14,660,736       8,560,024
Convertible subordinated note payable      10,000,000      10,000,000
Stockholders' equity (deficiency)          (1,636,733)     (3,421,179)