Faulding reports profitable fiscal third quarter on strength of new product launches.

ELIZABETH, N.J.--(BUSINESS WIRE)--April 30, 1997--

Initial sales of Etodolac and Clonazepam tablets in oral drug business drive fiscal 1997 third quarter sales to $25.2 million versus $18.5 million in 1996 third quarter

Faulding Inc. (NASDAQ:FAUL), had net sales of $25.2 million and net income of $1.5 million in the third quarter of fiscal 1997, ended March 31, 1997, compared with restated net sales of $18.5 million and a net loss of $2.1 million in the quarter ended March 31, 1996, it was reported today by Richard F. Moldin, president and chief executive officer.

After preferred dividends of $689,000, the company reported a profit of $0.05 per common share in the latest quarter compared with a restated loss of ($0.18) per common share in the prior year's third quarter.

"Faulding has continued to deliver on its promise of greater sales and profits since its restructuring in early 1996. This quarter's success was a direct result of the commercial launch of two new oral products that were cleared for marketing less than a year after our initial submission to the FDA. Our new management team's competence in timely drug development and regulatory approvals now compares very favorably to the best in the industry," said Moldin.

"We have proved that we can survive in the most challenging of competitive environments, but must continue to move forward aggressively in order to fulfill the commitment we have made to our shareholders. Faulding Inc. had received five new generic drug approvals this year, and currently has 12 new generic drug and medical device products on file with the FDA. Since Jan. 1, we have received FDA approval to market etodolac tablets, two presentations of atracurium besylates injection, acyclovir injection and captopril tablets. Etodolac tablets have been commercialized and all three injectable products are scheduled for prompt commercial launch and together will compete in brand markets that had reported $306.7 million in sales in 1996," Moldin stated.

The company's largest seller in the quarter was its recently launched clonazepam tablets, the generic version of Klonopin(R), an anti-convulsant drug. Close behind was etodolac 400 mg tablets, the generic version of Lodine(R), a non-steroidal, anti-inflammatory drug. Purepac's etodolac tablets received the only FDA tentative approval granted for the drug, were cleared for marketing by the FDA upon the expiration of the brand's patent on Feb. 28, and launched the following day.

Faulding's startup injectable and device business acquired in early 1996 continued to develop their respective injectable drug and medical device product lines, and as stated above, three of their injectable products were approved by the FDA in the third quarter.

Faulding Inc. had net sales of $66.0 million and net income of $1.6 million in the first nine months of the fiscal year, compared with restated net sales of $52.2 million and a net loss of $5.7 million in the first nine months of the previous year. After preferred dividends, income attributable to common stock was a loss of ($0.03) per share in the current nine month period compared with a restated loss of ($0.49) in the prior year's comparable period.

Faulding Inc. develops, manufactures and markets human pharmaceuticals and medical devices. The company's shares are traded on NASDAQ under the symbol "FAUL."

Note: Klonopin(R) is a registered trademark of Roche Laboratories. Lodine(R) is a registered trademark of Wyeth-Ayerst Laboratories Inc. -0-

          (Dollars in Millions Except Per Share Earnings)

                              Three Months Ended   Nine Months Ended
                                 March 31,            March 31,
Condensed Summary of          1997        1996(a)  1997       1996(a)
Operations (Unaudited)

Net Sales                    $25.2        $18.5   $66.0       $52.2
Cost of Sales                 16.4         14.2    46.0        42.3
Gross Profit                   8.8          4.3    20.0         9.9
Expenses:
 Selling, general and
  administrative               3.7          2.7    10.2         8.2
 Research and development      2.7          2.7     7.1         7.8
 Acquisition expenses          ---          1.0     ---         1.0
 Restructuring costs           ---          0.1     ---         0.7
Total expenses                 6.4          6.5    17.3        17.7
Income (loss) from operations  2.4         (2.2)    2.7        (7.8)
Other income (expense), net   (0.1)        (0.2)   (0.2)        1.0
Income (loss) before income
 taxes                         2.3         (2.4)    2.5        (6.8)
Income tax expense (benefit)   0.8         (0.3)    0.9        (1.1)
Net income (loss)              1.5         (2.1)    1.6        (5.7)
Preferred stock dividends      0.7          0.6     2.1         1.6
Net income (loss), applicable
 to common stock              $0.8        $(2.7)  $(0.5)      $(7.3)
Net income (loss) per common
 share(b)                     $.05        $(.18)  $(.03)      $(.49)
Weighted average number of
 common shares outstanding
 (thousands)                15,071      14,997   15,067      14,974

(a) 1996 Results restated to reflect businesses acquired Feb. 29,
1996.
(b) Net income (loss) per common share is computed by adjusting for
the company's preferred stock dividend.  Fully Diluted Earnings per
Common Share are not presented as the effect would be anti-dilutive.

Condensed Consolidated                   3/31/97      6/30/96
Balance Sheets                         (Unaudited)   (Audited)

Assets
 Cash and cash equivalents              $  3.9       $  1.9
 Other current assets                     59.0         50.2
 Property, plant and equipment, net       43.9         41.5
 Other assets                              3.9          5.1
Total assets                            $110.7       $ 98.7

Liabilities and Stockholders' Equity
 Current liabilities                    $ 27.9       $ 15.8
 Long term liabilities                      --           --
 Stockholders' equity                     82.8         82.9
Total Liabilities and Stockholders'
 Equity                                 $110.7       $ 98.7

CONTACT: Faulding Inc., Elizabeth

Andrew M. Berdon, 908/527-9100