Elite Pharmaceuticals, Inc. Reports Financial Results for the Second Quarter of Fiscal 2013

Elite Pharmaceuticals, Inc. Reports Financial Results for the Second Quarter
of Fiscal 2013

Revenues From New Products Continue to Grow

NORTHVALE, N.J., Nov. 14, 2012 (GLOBE NEWSWIRE) -- Elite Pharmaceuticals, Inc.
(OTCBB:ELTP), a specialty pharmaceutical company dedicated to developing and
commercializing oral controlled release product formulations and the
manufacturing of generic pharmaceuticals, announced results for the fiscal
second quarter ended September 30, 2012.

Consolidated revenues were $0.6 million for the quarter, an increase of 131%
when compared to the comparable quarter of the prior year. This increase is
the result of the continuing growth of the new revenue streams that have been
created within the last eighteen months.

In addition, at the end of the quarter, Elite has received FDA approval for
two new products, Phentermine 15mg capsules and Phentermine 30mg capsules
although the launch of these products is dependent on resolution of the API
issues discussed in our press release of October 12, 2012. Elite also
currently has two products that are pending approval by the FDA for
manufacturing transfer and a third undisclosed generic product under FDA

Consolidate loss from operations was $(0.5 million) for this quarter, compared
with a loss from operations $(0.6 million) in the comparable quarter of the
prior year. GAAP net income for the quarter, including non-cash expenses
relating to the accounting treatment of preferred share and warrant
derivatives was $1.0 million, compared to a GAAP net income of $13.9 million
for the comparable quarter of the prior year, with the difference mostly being
due to changes in the value of preferred shares and warrant derivatives. Basic
earnings per share was $0.00, on a weighted average of 348.3 million common
shares outstanding, compared to a basic earnings per common share of $0.06 and
a weighted average common shares outstanding of 248.2 million in the
comparable quarter of the prior year. Fully diluted earnings per share was
$0.00, on a weighted average diluted shares of 505.8 million, compared to
fully diluted earnings per share of $0.03 and a weighted average diluted
shares of 454.2 million in the comparable quarter of the prior year. The
increase in common shares outstanding is primarily due to conversion of
preferred shares into common shares during the last 12 months.

Jerry Treppel, Chairman and CEO of Elite commented, "Our plan to increase
revenues from product sales, which are inherently more stable and predictable
than a milestone based revenue stream continues apace. We are in active
discussions with our phentermine API supplier and are hopeful that a
resolution can be reached, although we cannot predict if or when this might
occur. We have manufactured larger batches of product in our new facility and
begun limited packaging operations as well.We continue to move forward with
the development of our abuse-resistant opioid products even as others in the
field continue to have problems." 

The Company will host a conference call to discuss the results of operations
and provide an update on recent business developments on Thursday, November
15, 2012 at 10:00 AM EST.Company executives will also conduct a question and
answer session following their remarks.

To access the conference call:

  Domestic callers: (800) 346-7359
  International callers: (973) 528-0008
  Conference Entry Code: 98840

A digital telephone replay will be available approximately one hour after the
conclusion of the call for two weeks until November 29, 2012 by

  Domestic callers: (800) 332-6854
  International callers: (973) 528-0005
  Conference entry code: 98840

Financial Statements                                            
                                                   September 30, March 31,
                                                  2012          2012
                                                   (Unaudited)   (Audited)
CURRENT ASSETS                                                  
Cash and cash equivalents                          $ 207,343     $ 668,407
Accounts receivable (net of allowance for doubtful 562,943       396,847
accounts of -0- and -0-, respectively)
Inventories (net of reserve of $93,338 and         480,735       304,882
$93,338, respectively)
Prepaid expenses and other current assets          112,711       127,704
Total Current Assets                               1,363,732     1,497,840
PROPERTY AND EQUIPMENT, net of accumulated
depreciation of $4,888,414 and $4,659,670,         4,172,280     4,284,786
INTANGIBLE ASSETS – net of accumulated             666,163       642,848
amortization of $-0- and $-0--, respectively
OTHER ASSETS                                                    
Investment in Novel Laboratories, Inc.             3,329,322     3,329,322
Security deposits                                  14,314        14,913
Restricted cash – debt service for EDA bonds       274,031       280,585
EDA bond offering costs, net of accumulated        254,023       261,423
amortization of $100,429 and $93,339, respectively
Total Other Assets                                 3,871,690     3,886,243
TOTAL ASSETS                                       $ 10,073,865  $10,311,717
CURRENT LIABILITIES                                             
EDA bonds payable                                  $ 3,385,000   $ 3,385,000
Short term loans and current portion of long-term  206,636       13,316
Accounts payable and accrued expenses              1,128,346     1,066,494
Deferred revenues – current                        13,333        13,333
Preferred share derivative interest payable        28,760        70,966
Total Current Liabilities                          4,762,075     4,549,109
LONG TERM LIABILITIES                                           
Deferred revenues                                  158,889       165,558
Other long term liabilities                        89,497        87,404
Derivative liability – preferred shares            11,917,323    8,506,106
Derivative liability – warrants                    14,947,419    11,987,222
Total Long Term Liabilities                        27,113,128    20,746,290
TOTAL LIABILITIES                                  31,875,203    25,295,399
STOCKHOLDERS' DEFICIT                                           
Common stock – par value $0.001, Authorized
690,000,000 sharesIssued and outstanding –        349,664       331,650
349,664,279 shares and 331,649,728 shares,
Additional paid-in-capital                         117,547,328   114,910,812
Accumulated deficit                                (139,391,489) (129,919,303)
Treasury stock at cost (100,000 common shares)     (306,841)     (306,841)
TOTAL STOCKHOLDERS' DEFICIT                        (21,801,338)  (14,983,682)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT        $ 10,073,865  $10,311,717

                        THREE MONTHS ENDED       SIX MONTHS ENDED
                        September 30,            September 30,
                        2012        2011         2012          2011
Manufacturing Fees       $ 466,020   $ 78,294    $ 845,716     $ 677,733
Royalties & Profit       154,168     100,069      282,663       410,000
Lab Fee Revenues         14,329      95,769       84,693        176,275
Total Revenues           634,517     274,132      1,213,072     1,264,108
COSTS OF REVENUES        479,631     76,331       933,995       501,700
Gross Profit             154,886     197,801      279,077       762,408
OPERATING EXPENSES                                           
Research and Development 228,475     198,212      425,357       643,709
General and              401,174     476,897      766,135       801,494
Non-cash compensation
through issuance of      15,133      6,113        21,246        12,226
stock options
Depreciation and         25,372      108,181      67,370        233,115
Total Operating Expenses 670,154     789,403      1,280,108     1,690,544
(LOSS) FROM OPERATIONS   (515,268)   (591,602)    (1,001,031)   (928,136)
OTHER INCOME /                                               
Interest expense, net    (61,247)    (57,931)     (119,784)     (115,301)
Change in fair value of  2,093,653   10,497,037   (2,995,081)   (3,086,393)
warrant derivatives
Change in fair value of
preferred share          (187,383)   4,196,187    (4,830,866)   (12,414,600)
Interest expense
attributable to          (28,823)    (124,370)    (83,901)      (267,175)
preferred share
Discount in Series E
issuance attributable to (250,000)   ---          (437,500)     ---
beneficial conversion
Total Other Income /     1,566,200   14,510,923   (8,467,132)   (15,883,469)
PROVISION FOR INCOME     1,050,932   13,919,321   (9,468,163)   (16,811,605)
PROVISION FOR INCOME     1,023       ---          4,023         2,500
ATTRIBUTABLE TO COMMON   $ 1,049,909 $ 13,919,321 $ (9,472,186) $ (16,814,105)
NET (LOSS) PER SHARE                                         
Basic                    $ 0.00      $ 0.06       $ (0.03)      $ (0.07)
Diluted                   $ 0.00    $ 0.03       $ (0.03)      $ (0.07)
OF COMMON SHARES                                             
Basic                    348,298,807 248,247,253  342,712,859   240,189,326
Diluted                  505,759,554 454,162,476  342,855,832   240,189,326

About Elite Pharmaceuticals, Inc.

Elite Pharmaceuticals, Inc. develops oral sustained and controlled release
products. Elite's strategy includes assisting partner companies in the life
cycle management of products to improve off-patent drug products and
developing generic versions of controlled release drug products with high
barriers to entry. Elite has three commercial products being sold through a
partner, one product produced for partners under contract manufacturing
agreements, two additional products approved and pending launch, and three
products under review, pending approval by the FDA. Elite's lead pipeline
products include abuse resistant opioids utilizing the company's patented
proprietary technology, and a once-daily opioid.They are sustained release
oral formulations of opioids for the treatment of chronic pain, which address
two of the limitations of existing oral opioids: the provision of consistent
relief of baseline pain levels and deterrence of potential abuse.Elite also
has partnered with Mikah Pharma to develop a new product, with Hi-Tech
Pharmacal to develop an intermediate for a generic product, and a Hong Kong
based company to develop a branded product for the United States market and
its territories.Elite operates a GMP and DEA registered facility for
research, development, and manufacturing located in Northvale, NJ.

The Elite Pharmaceuticals, Inc. logo is available at

This news release contains "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995. Including those related
to the effects, if any, on future results, performance or other expectations
that may have some correlation to the subject matter of this press release,
readers are cautioned that such forward-looking statements involve risks and
uncertainties including, without limitation, delays, uncertainties, inability
to obtain necessary ingredients and other factors not under the control of
Elite, which may cause actual results, performance or achievements of Elite to
be materially different from the results, performance or other expectations
that may be implied by these forward-looking statements These risks and other
factors, including, without limitation, the timing or results of pending and
future clinical trials, regulatory reviews and approvals by the Food and Drug
Administration and other regulatory authorities,intellectual property
protections and defenses, and the Company's ability to operate as a going
concern, are discussed in Elite's filings with the Securities and Exchange
Commission, including its reports on forms 10-K, 10-Q and 8-K. Elite
undertakes no obligation to update any forward-looking statements.

CONTACT: For Elite Pharmaceuticals, Inc.
         Dianne Will, Investor Relations, 518-398-6222

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