Press Releases

HI-TECH PHARMACAL REPORTS 77% INCREASE IN EARNINGS FOR THE QUARTER ENDED July 31, 2001

Amityville, N.Y. September 13, 2001—Hi-Tech Pharmacal Co., Inc. (NASDAQ: HITK) today reported sales and income for its first fiscal 2002 quarter that ended July 31, 2001. For the three months, net earnings increased by 77% to $481,000, or $0.10 per share from $271,000, or $0.06 per share for the same period last year. Net Sales increased 17% to $5,893,000 from $5,023,000 for the same period last year.

In commenting on the quarterly results, Hi-Tech’s President and CEO David Seltzer said: ”We are very pleased with the continued growth of our sales and net earnings. We attribute this success primarily to a significant increase in the sales of certain high margin generic products and improved service level to our customers. Due to the efforts of our sales and marketing team we gained new distribution at drug chain stores, hospital and managed care organizations. We have also gained new distribution with our branded products for people with diabetes. Our fastest growing item in this category is DiabetiSweet, a unique sugar free and aspartame free sweetener suitable for baking and cooking. Demand for this products is rapidly growing at chain drug stores and mass merchandisers, creating opportunities for us at food stores that will dramatically increase our target consumer base.”

Mr. Seltzer continued: “We believe that our company is well positioned to capitalize on its solid profitability. We are committed to invest further into R&D, advertising and marketing to support our brands, as well as into new product licensing and acquisition opportunities to continue building the company and take it to the next level”.

Hi-Tech is a specialty pharmaceuticals manufacturer and marketer of branded and generic prescription and OTC products for the general healthcare industry. A specialist in liquid and semi-solid dosage form production, Hi-Tech markets a broad line of generic products under its own labels, and also serves as a contract manufacturer to the industry. The company’s Health Care Products division is a leading manufacturer and marketer of branded 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 those risks and uncertainties detailed in the Company’s filings with the Securities and Exchange Commission, copies of which are available from the Company.