Interpharm Announces Manufacturing and Supply Agreement For Ibuprofen.

COMMACK, N.Y. -- Interpharm Holdings, Inc. (AMEX:IPA) today announced that Interpharm, Inc., its wholly-owned subsidiary, has begun supplying Watson Laboratories, Inc. prescription strength Ibuprofen pursuant to a Manufacturing and Supply Agreement. Subject to certain conditions, Interpharm shall supply Watson with all of Watson's commercial requirements of prescription strength Ibuprofen. Additional terms of the agreement were not disclosed.

This contract represents Interpharm's third venture with Watson. Watson also markets two of Interpharm's products: Hydrocodone Bitartrate and Ibuprofen 7.5mg/200mg and Interpharm's own branded generic product, Reprexain(R).

Bob Sutaria, President of Interpharm, Inc. stated, "As we diversify and expand our product line, we continue our efforts to increase market share for our existing products. This agreement fortifies the foundation of our core business by increasing our market share for Ibuprofen."

ABOUT INTERPHARM

Interpharm develops, manufactures and distributes 30 generic prescription strength and over-the-counter drugs. Interpharm will continue to focus on growing organically through internal product development and leveraging its strength in efficient and cost effective manufacturing. In addition, Interpharm will also continue to seek consummation of mutually beneficial strategic alliances and collaborations.

FORWARD-LOOKING STATEMENTS

Statements made in this news release, may contain forward-looking statements concerning Interpharm's business and products involving risks and uncertainties that could cause actual results to differ materially from those reflected in the forward-looking statements. The actual results may differ materially depending on a number of risk factors including, but not limited to, the following: general economic and business conditions, development, shipment, market acceptance, and additional competition from existing and new competitors, changes in technology, and various other factors beyond Interpharm's control. Other risks inherent in Interpharm's filings with the SEC, including, but not limited to, the Atec Group, Inc. proxy statement filed with the SEC on May 2, 2003, our Form 10-Q filed on November 15, 2004 and our Form 10-K, filed on September 28, 2004.

All information in this release is as of January 18, 2005. Interpharm undertakes no duty to update any forward-looking statements to conform the release to actual results or changes in its circumstances or expectations after the date of this release.