Press Releases

Hi-Tech Pharmacal Announced Record Sales and Net Income

• 70% INCREASE IN SALES AND 89% INCREASE IN NET INCOME FOR THREE MONTHS ENDED JANUARY 31, 2003
• 54% INCREASE IN SALES AND 88% INCREASE IN NET INCOME FOR NINE MONTHS ENDED JANUARY 31, 2003

Amityville, NY, March 14, 2003– Hi-Tech Pharmacal Co., Inc. (NASDAQ:HITK) reported today sales and net income for the third quarter of fiscal 2003 ended January 31, 2003. For the three months, the Company reported sales of $15,913,000, an increase of 70% from $9,341,000 for the same period last year. Net income increased 89% to $1,911,000, or $0.24 per diluted share compared to $1,009,000, or $0.13 per diluted share for the same period last year. For the nine months ended January 31, 2003 net sales increased 54 % to $36,507,000 from $23,688,000 for the same period last year. Net income for the nine months ended January 31, 2003 increased 88 % to $4,456,000, or $0.58 per diluted share from $2,368,000 or $0.32 per diluted share for the same period last year. The EPS numbers for all periods have been adjusted to reflect a three for two stock split effected in January 2003.

Commenting on the results, David Seltzer, President and CEO said: “ We are extremely pleased to report record sales and net income for the three and nine month periods ended January 31, 2003. These excellent results demonstrate the Company’s ability to aggressively penetrate the generic liquid pharmaceutical market through various distribution channels including chain drug stores, wholesalers and managed care organizations, while a significant number of our generic prescription products increasingly gain market share. In addition, we are experiencing increased sales in our branded products for people with diabetes supported by the successful introduction of several new products, including Multi-betic?, a multivitamin supplement and DiabetiDerm? Foot Cream that are rapidly gaining customer acceptance.”

Mr. Seltzer continued: “Our plan is to strengthen our position as a leading developer and manufacturer of liquid and semi-solid generic pharmaceuticals through investing in new product development and the Company’s manufacturing infrastructure. We will continue to build our branded business in the area of diabetes through new product introductions and aggressive marketing effort.”

Hi-Tech is a specialty pharmaceutical company developing, manufacturing and marketing branded and generic prescription and OTC products for the general healthcare industry. The Company specializes in difficult to manufacture liquid and semi-solid dosage forms and produces a range of sterile ophthalmic, otic and inhalation products. The Company’s Health Care Products Division is a leading developer and marketer of branded prescription and OTC products for the diabetes marketplace.

Forward-looking statements (statements which are not historical facts) in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements in this release are not promises or guarantees and investors are cautioned that all forward-looking statements involve risks and uncertainties, including but not limited to the impact of competitive products and pricing, product demand and market acceptance, new product development, reliance on key strategic alliances, availability of raw materials, the regulatory environment, fluctuations in operating results and other risks detailed from time to time in the Company’s filings with the Securities and Exchange Commission. These statements are based on management’s current expectations and are naturally subject to uncertainty and changes in circumstances. We caution you not to place undue reliance upon any such forward looking statements which speak only as of the date made. Hi-Tech is under no obligation to, and expressly disclaims any such obligation to, update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.