Press Releases

Hi-Tech Pharmacal announced:
• 39% increase in sales and 80% increase in net income for the three months ended October 31. 2002
• 44 % increase in sales and 87% increase in net income for the six months ended October 31, 2002

Amityville, NY, December 16, 2002– Hi-Tech Pharmacal Co., Inc. (NASDAQ:HITK) reported today sales and net income for the second quarter and six months ended October 31, 2002. For the three months, the Company reported sales of $11,765,000, an increase of 39% from $ 8,454,000 for the same period last year. Net income increased 82% to $1,601,000, or $0.32 per share compared to $878,000, or $0.18 per share for the same period last year. For the six months ended October 31,2002 sales increased 44% to $20,594,000 from $14,347,000 for the same period last year. Net income for the six months ended October 31, 2002 increased 87% to $2,545,000 or $ 0.50 per share from $1,359,000 or $0.28 per share for the same period last year.

Commenting on the results, David Seltzer, President and CEO said: “ We are extremely pleased with our record sales and net income for the quarter and six month periods ended October 31, 2002. The significant growth in net sales is primarily the result of the growing demand for our generic prescription products and increased distribution of our product line particularly at drug chains, wholesalers and managed care organizations throughout the country. The increase in net income is primarily due to our focus on generic prescription products, as well as increased productivity from our manufacturing facilities, which resulted in higher gross profit margins.

We have also successfully introduced several new branded products for people with Diabetes, such as Multi-betic?, a multivitamin and mineral supplement and DiabetiDerm? Foot Cream.”

Mr. Seltzer continued: “Based on the current and anticipated orders from our customers, we expect the positive growth trend in our revenues and earnings for the next quarter and the balance of the fiscal year to continue. Our momentum is building as we continue to increase our market share in liquid generics and diabetes related products. With our strong balance sheet, we will continue to invest in new product development to enhance our pipeline of generic products, as well as in aggressive marketing of brands for people with diabetes.”

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.

Hi-Tech Pharmacal Co., Inc.