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LANNETT COMPANY, INC. ANNOUNCES FISCAL 1993 RESULTS

 PHILADELPHIA, Sept. 28 /PRNewswire/ -- Lannett Company, Inc., (OTC Bulletin Board: LANN) a manufacturer and distributor of pharmaceutical products, announced sales and earnings for the year ended June 30, 1993 ("Fiscal 1993"). The company recorded a net loss of $1,645,275, or $.33 a share, for Fiscal 1993 compared to a net loss of $2,418,734, or $.49 a share, for the fiscal year ended June 30, 1992 ("Fiscal 1992").
 In August 1991, the company temporarily suspended manufacturing operations to upgrade its facilities and operations and to systematically review its approved new drug applications, systems and procedures to determine their conformity to applicable governmental regulations and current standards in the industry. The company resumed manufacturing and distributing on a limited product basis in October 1992.
 Net sales for Fiscal 1993 increased to $959,324 from $214,244 in Fiscal 1992. Substantially all of the company's net sales during Fiscal 1992 were derived from the repackaging of products for other manufacturers. The company's net sales during Fiscal 1993 were derived primarily from the sale of Butalbital Compound Capsules ("BCC"), a generic version of Sandoz's Fiorinol(R), the only product the company manufactured and distributed in Fiscal 1993. Sales of BCC from October 1992 through June 30, 1993, exceeded total sales for all products of the company combined in any previous fiscal year.
 Although net sales for Fiscal 1993 increased more than threefold from Fiscal 1992, cost of sales increased only 7.8 percent from $1,076,589 during Fiscal 1992 to $1,160,817 during Fiscal 1993. While the company was not manufacturing product for shipment during most of Fiscal 1992, it was manufacturing and testing product, testing equipment, renovating its facilities and preparing to manufacture product for sale. As a result, it continued to incur costs and expenses allocable to cost of sales, including costs for inventory, payroll, maintenance and repairs, utilities and the like.
 Selling, general and administrative expenses decreased approximately 12.7 percent from $1,261,844 in Fiscal 1992 to $1,101,351 in Fiscal 1993. Such expenses decreased because certain expenses incurred during Fiscal 1992 were one-time charges incurred in improving the company's quality control. The company anticipates that selling, general and administrative expenses will remain relatively constant until the company is manufacturing and distributing five or six products.
 LANNETT COMPANY, INC.
 Year ended June 30
 1993 1992
 Net sales $959,324 $214,244
 Cost of sales 1,160,817 1,076,589
 Gross loss (201,493) (862,345)
 Selling, general and administrative 1,101,351 1,261,844
 Operating loss (1,302,844) (2,124,189)
 Other expense (342,431) (294,545)
 Net loss (1,645,275) (2,418,734)
 Loss per share(A) (.33) (.49)
 Shares outstanding(A) 4,966,128 4,966,128
 (A) -- Adjusted to reflect 4-for-1 stock splits effected in April 1992 and March 1993.
 Barry Weisberg, president of the company, said: "While we are pleased with our sales of Butalbital, we are awaiting supplemental approvals from the Food and Drug Administration so we can begin reintroducing additional products. We are optimistic that these approvals will be received in the near future and that Fiscal 1994 will be a banner year for Lannett."
 -0- 9/28/93
 /CONTACT: Barry Weisberg, president of Lannett Company, 215-333-9000/
 (LANN)


CO: Lannett Company, Inc. ST: Pennsylvania IN: MTC SU: ERN

KE-SB -- DE007 -- 6310 09/28/93 10:53 EDT
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Date:Sep 28, 1993
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