Elite Pharmaceuticals Inc (ELTP)

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Elite Pharmaceuticals, Inc. Reports Financial Results for the Third Quarter of Fiscal 2011
Revenues Up 34% - Operating Profit Achieved

NORTHVALE, N.J., Feb. 14, 2011 (GLOBE NEWSWIRE) -- Elite Pharmaceuticals, Inc. (OTCBB:ELTP), a specialty pharmaceutical company dedicated to developing and commercializing oral controlled release product formulations, announced results for the fiscal third quarter ended December 31, 2011.

For the third quarter, consolidated revenues were $1.2 million, an increase of 34% compared with last year's third quarter, with substantially all revenues being derived from the manufacture, sale and lab services related to the Lodrane family of products.

Profits from operations were $72,931 for the third quarter, as compared to last year's third quarter operating losses of $509,893. This marks the first quarter in which the company has achieved an operating profit and is indicative of results achieved pursuant to the continuing efforts by management to increase manufacturing efficiency and reduce operating costs.

GAAP net income, including non-cash revenues and expenses relating to the accounting treatment of preferred share derivatives and the fair value of warrant derivatives, was $5.9 million. Basic net income was $0.06 per share and fully diluted net income was $0.02 per share.

For the first nine months of fiscal 2011, cash flow from operations was a positive $318,457, compared to a negative operating cash flow of ($1.1 million) for the same period last year. Approximately $400,000 of cash has been invested in the purchases, previously announced, of three approved ANDA's, and in the continued expansion and improvement of Elite's manufacturing facilities. Total net cash flow for the first three quarters, inclusive of cash from operations and cash used in investing and financing activities was a negative $162,993. Our cash balance as of December 31, 2010 was $415,194.

The company is currently in discussions to license its once daily oxycodone product, ELI-154, to a European marketing partner and is progressing towards scale-up in the development of its abuse-resistant formulation of oxycodone, ELI-216.

The Company will host a conference call to discuss the results of operations and provide an update on recent business developments today 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: [phone]
International callers: [phone]
Conference Entry Code: 98840

A digital telephone replay will be available approximately one hour after the conclusion of the call for two weeks until February 28, 2011 by dialing:
Domestic callers: [phone]
International callers: [phone]
Conference entry code: 98840

Financial Statements
ELITE PHARMACEUTICALS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
ASSETS