Interpharm Launches Generic Equivalent of Bactrim(R) Antibiotic.

HAUPPAUGE, N.Y. -- Interpharm Holdings Inc. (AMEX: IPA) today announced the launch of Sulfamethoxazole and Trimethoprim ("SMT") single and double strength tablets, which are sold under the name Bactrim(R). SMT is a widely used antibiotic used to treat infections such as urinary tract infections, bronchitis, ear infections (otitis), traveler's diarrhea, and Pneumocystis carinii pneumonia. The Company has already entered into a number of strategic deals for the sale of SMT and has already begun shipments.

To support this and other future product launches, the Company has made several key strategic personnel additions to its executive management team over the past few months. One of those appointments was Jeffrey Weiss, who was appointed Executive Vice President to head the Sales and Marketing Division of the Company and to help lead the transformation of Interpharm into a full-service generic company by establishing an organic commercial front-end. Mr. Weiss brings with him over 17 years of industry experience, most recently serving as Chief Executive Officer of Glenmark Pharmaceuticals Inc., USA and Vice President of Sales for Dr. Reddy's Laboratories, Inc. The Company believes that Mr. Weiss' extensive knowledge and experience working within the intricacies of the United States generic marketplace can further enable the Company to achieve its targeted objectives pursuant to its expansion plan.

Commenting on the SMT launch, Mr. Weiss stated, "The launch of SMT signifies the beginning of the transformation of Interpharm into a full-line generic provider. The launch is the first of a number of planned product introductions geared to create a product portfolio that creates value for our trading partners. Interpharm now has the ability to service our partners on a direct basis, as well as through key strategic partnerships which can allow the Company to maximize its profit opportunities."

About Interpharm Holdings Inc.

Interpharm currently develops, manufactures and distributes 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. Headquartered on Long Island, New York, Interpharm presently employs over 400 people.

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 business are set forth in its filings with the Securities and Exchange Commission ("SEC"), including, but not limited to, the Atec Group, Inc. proxy statement filed with the SEC on May 2, 2003, its Form 10-K, filed with the SEC on September 28, 2004, its form 10-Q, filed with the SEC on May 16, 2005 and its Form 8-K, filed with the SEC on July 18, 2005.

All information in this release is as of September 15, 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.