Press Releases

Hi-Tech Pharmical Reports 50% Increase in Sales and 96% Increase in Net Income for the Quarter Ended JULY 31, 2002

Amityville, NY, September 17, 2002 - Hi-Tech Pharmacal, Co., Inc. (NASDAQ:HITK) reported today sales and net income for the first quarter of fiscal 2003 ended July 31, 2002. For the three months, the company reported sales of $8,829,000, a 50% increase from $5,893,000 for the same period last year. Net income increased 96% to $944,000, or $0.19 per share compared to $481,000, or $0.10 per share for the same period last year.

Commenting on the results, David Seltzer, President and CEO said, “ We are extremely pleased with our sales and net income numbers for the quarter ended July 31, 2002. The significant growth in net sales is the result of increased demand for our generic prescription product line in all classes of trade. In particular, the Company has been awarded significant contracts for several of its generic prescription products by managed care customers and the United States government. An additional factor which contributed to our growth was the successful introduction of new branded products for people with diabetes. The substantial growth in net income can be attributed to the higher gross profit margins which result from our continued focus on higher margin prescription generic products, increased productivity, and effective marketing.

With our strong balance sheet, we will continue to invest in new product development, marketing of branded products, as well as explore external growth opportunities, such as licensing and acquisitions”.

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. 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.