Par Pharmaceutical Files Form 10-Qs for First and Second Quarters of 2007

First-Quarter Results

For the first quarter ended March 31, 2007, Par reported total revenues of$234.2 million and net income of $41.5 million, or $1.19 per diluted share.This is compared with reported revenues of $172.3 million and net income of$4.5 million, or $0.13 per diluted share, for the same period in 2006.

First quarter 2007 reported, or GAAP, results included a $20.0 milliongain on the sale to Optimer Pharmaceutical, Inc. of marketing rights to theinvestigational drug Difimicin (Par 101), a $1.4 million investment gain onthe sale of shares of Optimer common stock, and net settlement gains of $0.6million related to the discontinuation of certain product-developmentagreements. Adjusting for these items, net income for the first quarter of2007 was $28.1 million, or $0.80 per diluted share.

First-Quarter Review

For the first quarter ended March 31, 2007, total revenues increased 35.9percent compared with the same period in 2006 due primarily to new productintroductions. These products include propranolol HCl extended release (ER)capsules, metoprolol succinate, polyethylene glycol, and ranitidine HCl syrupachieving sales of $31.3 million, $12.3 million, $4.3 million and $4.2million, respectively. Partially offsetting the increases were lower sales ofcertain existing products due to competitive pressures, including fluticasone,paroxetine, tramadol HCl and cefprozil. Revenues of branded products for thefirst quarter of 2007 of $19.5 million, an increase of 137 percent over theprior year period, were driven by increased sales of Megace® ES (megestrolacetate) oral suspension, and fees related to the co-promotion of AndroGel®.

Par's first-quarter gross margin was 37.4 percent of sales, compared to28.5 percent in 2006. The increase in the Company's gross margin resultedprimarily from increased sales of higher-margin products, including Megace®ES and propranolol ER, royalties related to the sale of ondansetron orallydisintegrating tablets and the co-promotion fee for AndroGel®.

Research and development (R&D) expenses increased 1.3 percent for thefirst quarter 2007 compared with the first quarter 2006. The results reflectincreased development costs in support of Par's generic product portfoliotempered by reduced clinical development costs following the termination ofthe megestrol acetate concentrated suspension oncology study in 2006 and thetermination of Par's participation in the development of Par 101, as well aslower personnel costs following the restructuring of the R&D organization.

Selling, general and administrative (SG&A) expenses for the first quarter2007 increased 14.9 percent from first quarter 2006. The increase isprimarily due to an increase of the field sales force for Strativa, theCompany's branded division, as well as the expansion of the finance andaccounting functions and increased professional costs associated with theCompany's restatement.

Second-Quarter and Six-Month Results

For the second quarter ended June 30, 2007, Par reported total revenues of$167.6 million and net income of $2.8 million, or $0.08 per diluted share.This is compared with reported revenues of $195.2 million and a net loss of$7.2 million, or $0.21 per diluted share, for the same period in 2006. Forthe six months ended June 30, 2007, Par reported total revenues of $401.9million and net income of $44.3 million, or $1.27 per diluted share. This iscompared with reported revenues of $367.6 million and a net loss of $2.7million, or $0.08 per diluted share, for 2006.

Second-quarter 2007 reported, or GAAP, results included a $6.0 millioninvestment loss and a $3.0 million license fee paid to Immtech Pharmaceuticalsfor commercialization rights to the developmental drug pafuramidine maleate,both of which are discussed in more detail below, in addition to $1.6 millionof severance costs. Adjusting for these items, net income for the secondquarter of 2007 was $9.3 million, or $0.27 per diluted share. By comparison,second-quarter 2006 reported results included a write-off of approximately$10.0 million of accounts receivable relating to invalid customer deductionsand $5.2 million of expense relating to the write-down of an equity investmentand an arbitration settlement. Adjusting for these items, net income for thesecond quarter 2006 was $2.1 million, or $0.06 per diluted share.

Net income for the first six months of 2007 was $37.4 million, or $1.07per diluted share, after adjusting for the aforementioned items. Bycomparison, reported results for the first six months of 2006 included the2006 second-quarter items discussed above. Adjusting for these items, netincome for the first six months of 2006 was $6.6 million, or $0.19 per dilutedshare. [See reconciliation between reported (GAAP) and adjusted net income(loss) at the end of this press release.]

Second-Quarter Review

For the second quarter ended June 30, 2007, total revenues decreased 14.1percent compared with the same period a year earlier as increased competitionresulted in lower sales of generic products. Among these products, sales offluticasone nasal spray declined by $26.9 million from the second quarter of2006. Partially offsetting these decreases were sales of recently introducedproducts. Among the products introduced since the end of the second quarterof 2006, metoprolol extended release (ER) 25 mg tablets achieved sales of$17.3 million and propranolol ER capsules contributed sales of $10.4 million.Par markets fluticasone in the U.S. through a supply and distributionagreement with GlaxoSmithKline. Par markets metoprolol ER in the U.S. througha supply and distribution agreement with AstraZeneca. Sales of Megace® ES(megestrol acetate) oral suspension increased 124 percent to $19.1 million inthe second quarter.

Par's second-quarter gross margin was 33.7 percent of sales, compared to28.1 percent in 2006. The increase in the Company's gross margin resultedprimarily from increased sales of higher-margin products, including Megace®ES and propranolol ER, royalties related to the sale of ondansetron orallydisintegrating tablets and the co-promotion fee for AndroGel®.

Research and development (R&D) expense decreased 18.7 percent to $14.3million in the second quarter of 2007, driven by reduced clinical developmentcosts related to Megace® ES, the termination of Par's participation in thedevelopment of Par 101, as well as lower personnel costs. These reductionswere partially offset by a $3.0 million license fee paid to ImmtechPharmaceuticals for commercialization rights to their lead oral drugcandidate, pafuramidine maleate, which is being developed for the treatment ofpneumocystis pneumonia in AIDS patients. In June 2007, Par entered into anexclusive licensing agreement with Immtech for U.S. commercialization rights.

Second-quarter selling, general and administrative (SG&A) expensedecreased 20.8 percent to $34.0 million. The decrease in 2007 SG&A expensewas primarily due to the second-quarter 2006 write-off of approximately $10.0million of accounts receivable relating to invalid customer deductions.

In the second quarter of 2007, Par recorded a $6.0 million loss relatingto an investment in a fund comprised of various floating-rate structuredfinance securities that experienced a severe reduction in value.

2007 Financial Outlook

Par has revised its previously announced guidance for full-year 2007earnings per diluted share to $1.35-$1.50 from $0.95-$1.10. This increase isdriven by a delay in the anticipated impact of competition on the pricing andvolume environment of certain generic products, specifically, propanolol,fluticisone, metroprolol, and cabergoline. However, the Company isexperiencing significant competition on price and volume of propranolol,fluticasone, and metroprolol in the fourth quarter.

The Company's projections are based on its results for the first sixmonths of 2007 and management's assumption of the impact of productcompetition on some of Par's key products and include the impact of certainone-time items and lower SG&A costs.

Total net revenue is expected to be between $760-$780 million. SG&A isexpected to be $130-$133 million, including approximately $2 million inseverance costs. Research and development cost is projected to be in therange of $75-$80 million, including approximately $19 million in brandedmilestone payments. Total projected expenses for the full-year includeapproximately $18-$20 million of share-based compensation and $24-$26 millionof depreciation and amortization expenses. Adjusting for one-time items,full year earnings per diluted share is projected to be $1.40-$1.55. [Seesummary of estimated operating results for full year 2007 at the end of thispress release.]

Stock Repurchase Program

Since October 1, 2007, Par has repurchased 1,643,094 shares of its commonstock at a total cost of $31.5 million. On September 28, 2007, Par announcedthat its Board of Directors had authorized the repurchase of up to $75 millionof the company's common stock.

Conference Call

Par has scheduled a conference call for Wednesday, November 21 at 9:00 amEST to discuss results for first and second quarters of 2007. Par invitesinvestors and the general public to listen to a webcast of the conferencecall. Access to the live webcast can be made via the Company's website at will be available for at least 30 days. The dial-in number is 866-770-7120 for domestic callers and 617-213-8065 forinternational callers. The access number is 88770486. A replay of theconference call will be available commencing approximately one hour after thecall. The replay dial-in number is 888-286-8010 for domestic callers and 617-801-6888 for international callers. The access number is 18960113.

For a copy of Par's Form 10-Qs for the quarterly periods ended March 31,2007 and June 30, 2007, visit Investors/SEC Filings on the Par web site at.

Non-GAAP Measures

Par prepares its consolidated financial statements in conformity withaccounting principles generally accepted in the United States of America (U.S.GAAP). In an effort to provide investors with additional informationregarding the Company's results and to provide a meaningful year-over-yearcomparison of the Company's financial performance, the Company sometimes usesnon-GAAP financial measures as defined by the Securities and ExchangeCommission. The differences between the U.S. GAAP and non-GAAP financialmeasures are reconciled in the attached. In presenting comparable results,the Company discloses non-GAAP financial measures when it believes suchmeasures will be useful to investors in evaluating the Company's underlyingbusiness performance. Management uses the non-GAAP financial measures toevaluate the Company's financial performance against internal budgets andtargets. In addition, management internally reviews the results of theCompany excluding the impact of certain items, as it believes that these non-GAAP financial measures are useful for evaluating the Company's core operatingresults and facilitating comparison across reporting periods. Importantly,the Company believes non-GAAP financial measures should be considered inaddition to, and not in lieu of, U.S. GAAP financial measures. The Company'snon-GAAP financial measures may be different from non-GAAP financial measuresused by other companies.

About Par

Par Pharmaceutical Companies, Inc. develops, manufactures and marketsgeneric drugs and innovative branded pharmaceuticals for specialty markets.For press release and other company information, visit .

Safe Harbor Statement

Certain statements in this press release constitute "forward-lookingstatements" within the meaning of the Private Securities Litigation Reform Actof 1995. To the extent any statements made in this news release containinformation that is not historical, these statements are essentially forward-looking and, as such, are subject to risks and uncertainties, including theextent and impact of litigation arising out of the accounting issues describedin the Company's filings with the Securities and Exchange Commission (SEC),the difficulty of predicting FDA filings and approvals, acceptance and demandfor new pharmaceutical products, the impact of competitive products andpricing, new product development and launch, reliance on key strategicalliances, uncertainty of patent litigation filed against the Company,availability of raw materials, the regulatory environment, fluctuations inoperating results and other risks and uncertainties detailed from time to timein the company's filings with the SEC, such as the Company's reports on Form10-K, Form 10-Q and Form 8-K, and amendments thereto. Any forward-lookingstatements included in this press release are made as of the date hereof only,based on information available to the Company as of the date hereof, and,subject to any applicable law to the contrary, the company assumes noobligation to update any forward-looking statements.

                      PAR PHARMACEUTICAL COMPANIES, INC.                    CONDENSED CONSOLIDATED BALANCE SHEETS                      (In Thousands, Except Share Data)                                 (Unaudited)                                          June 30,    March 31,  December 31,          ASSETS                            2007        2007         2006    Current assets:       Cash and cash equivalents         $184,238     $141,477    $120,991       Available for sale debt and        marketable equity securities      169,243      119,754      92,120       Accounts receivable, net            47,123      147,030      99,043       Inventories                         83,779       87,674     106,322       Prepaid expenses and other current        assets                             22,225       23,215      15,833       Deferred income tax assets          72,104       72,104      72,105       Income taxes receivable              6,605        6,608      12,422       Total current assets               585,317      597,862     518,836       Property, plant and equipment, at        cost less accumulated depreciation        and amortization                   85,012       86,354      89,155       Available for sale debt and        marketable equity securities        4,680        4,710       7,652       Investment in joint venture          5,387        5,304       5,292       Other investments                        -        4,588      16,588       Intangible assets, net              41,371       44,674      47,880       Goodwill                            63,729       63,729      63,729       Deferred charges and other assets    3,027        6,917      16,000       Non-current deferred income tax        assets, net                        49,714       49,278      49,545    Total assets                         $838,237     $863,416    $814,677          LIABILITIES AND STOCKHOLDERS' EQUITY    Current liabilities:       Short-term and current portion of        long-term debt                   $200,824     $202,632    $204,469       Accounts payable                    32,801       33,690      48,297       Payables due to distribution        agreement partners                 73,754       89,635      89,585       Accrued salaries and employee        benefits                           13,443       12,444      15,510       Accrued expenses and other current        liabilities                        23,112       22,154      18,833       Income taxes payable                 4,438       20,815      16,974       Total current liabilities          348,372      381,370     393,668       Long-term debt, less current        portion                                 -            -           -       Other long-term liabilities         13,482       13,246           -    Commitments and contingencies               -            -           -    Stockholders' equity:       Preferred Stock, par value $0.0001        per share, authorized        6,000,000 shares; none issued and        outstanding                             -            -           -       Common Stock, par value $0.01 per        share, authorized 90,000,000        shares, issued 36,345,466 and        36,335,215 and 35,901,276 shares      364          364         359       Additional paid-in-capital         263,446      257,394     254,013       Retained earnings                  244,568      241,766     200,256       Accumulated other comprehensive        gain (loss)                         2,526        3,209        (431)       Treasury stock, at cost 941,035 and        920,558 and 889,245 shares        (34,521)     (33,933)    (33,188)       Total stockholders' equity         476,383      468,800     421,009    Total liabilities and stockholders'     equity                              $838,237     $863,416    $814,677                      PAR PHARMACEUTICAL COMPANIES, INC.               CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS                    (In Thousands, Except Per Share Data)                                 (Unaudited)                                                      Three months ended                                                    March 31,     April 1,                                                       2007         2006    Revenues:       Net product sales                            $222,589      $169,037       Other product related revenues                 11,621         3,281    Total revenues                                   234,210       172,318    Cost of goods sold                               146,521       123,150       Gross margin                                   87,689        49,168    Operating expenses:       Research and development                       14,039        13,852       Selling, general and administrative            32,557        28,342       Settlements, net                                 (578)            -    Total operating expenses                          46,018        42,194       Gain on sale of product rights                (20,000)            -    Operating income                                  61,671         6,974    Other expense, net                                   (19)          (39)    Equity in loss of joint venture                     (148)         (253)    Realized gain on sale of marketable securities     1,397             -    Interest income                                    2,684         1,983    Interest expense                                  (1,718)       (1,694)    Income before provision for income taxes          63,867         6,971    Provision for income taxes                        22,353         2,457    Net income                                       $41,514        $4,514    Earnings per share of common stock:       Basic                                           $1.20         $0.13       Diluted                                         $1.19         $0.13    Weighted average number of     common shares outstanding:    Basic                                             34,618        34,259    Diluted                                           34,997        34,766                      PAR PHARMACEUTICAL COMPANIES, INC.               CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS                    (In Thousands, Except Per Share Data)                                 (Unaudited)                                      Three months ended     Six months ended                                       June 30,  July 1,     June 30,  July 1,                                        2007      2006         2007     2006    Revenues:       Net product sales              $160,014  $190,583   $382,603  $359,620       Other product related        revenues                         7,626     4,655     19,247     7,937    Total revenues                     167,640   195,238    401,850   367,557    Cost of goods sold                 111,085   140,471    257,606   263,621       Gross margin                     56,555    54,767    144,244   103,936    Operating expenses:       Research and development         14,277    17,557     28,316    31,409       Selling, general and        administrative                  33,999    42,941     66,556    71,283       Settlements, net                      -     1,250       (578)    1,250    Total operating expenses            48,276    61,748     94,294   103,942       Gain on sale of product        rights                               -         -    (20,000)        -    Operating income (loss)              8,279    (6,981)    69,950        (6)    Other expense, net                     (30)      142        (49)      104    Equity in loss of joint venture        (80)     (225)      (228)     (479)    Loss on marketable securities,     net                                (6,040)   (3,773)    (4,643)   (3,773)    Interest income                      3,901     1,973      6,585     3,956    Interest expense                    (1,727)   (1,693)    (3,445)   (3,388)    Income (loss) before provision     (benefit) for income taxes          4,303   (10,557)    68,170    (3,586)    Provision (benefit) for income     taxes                               1,505    (3,352)    23,858      (896)    Net income (loss)                   $2,798   $(7,205)   $44,312   $(2,690)    Earnings (loss) per share of     common stock:       Basic                             $0.08    $(0.21)     $1.28    $(0.08)       Diluted                           $0.08    $(0.21)     $1.27    $(0.08)    Weighted average number of     common shares outstanding:    Basic                               34,676    34,454     34,647    34,368    Diluted                             34,943    34,454     34,970    34,368    Reconciliation Between Reported (GAAP) and Adjusted Net Income (Loss)                    (In thousands, except per share data)                                 (Unaudited)                                                        Three Months Ended                                                       March 31,     April 1,                                                          2007         2006    Reported Net Income                                 $41,514       $4,514    Gain on Sale of Product Rights                      (20,000)           -    Investment Gain                                      (1,397)           -    Net Settlements Gain                                   (578)           -    Estimated Tax on Adjustments                          8,570            -    Adjusted Net Income (non-GAAP measure)              $28,109       $4,514    Diluted Earnings Per Share:                        Reported                          $1.19        $0.13                        Adjusted (non-GAAP measure)       $0.80        $0.13                                                         Three Months Ended                                                       June 30,       July 1,                                                         2007          2006    Reported Net Income (Loss)                           $2,798      $(7,205)    Net Investment Loss                                   6,040        3,773    License Fee                                           3,000            -    Severance Costs                                       1,643            -    Write-off of Accounts Receivable Relating to     Invalid Customer Deductions                              -        9,965    Arbitration Settlement                                    -        1,502    Estimated Tax on Adjustments                         (4,166)      (5,944)    Adjusted Net Income (non-GAAP measure)               $9,315       $2,091    Diluted Earnings (Loss) Per Share:                        Reported                          $0.08       $(0.21)                        Adjusted (non-GAAP measure)       $0.27        $0.06    Reconciliation Between Reported (GAAP) and Adjusted Net Income (Loss)                    (In thousands, except per share data)                                 (Unaudited)                                                           Six Months Ended                                                       June 30,       July 1,                                                         2007          2006    Reported Net Income (Loss)                          $44,312      $(2,690)    Gain on Sales of Product Rights                     (20,000)           -    Net Investment Loss                                   4,643        3,773    License Fee                                           3,000            -    Severance Costs                                       1,643            -    Net Settlements Gain                                   (578)           -    Write-off of Accounts Receivable Relating to     Invalid Customer Deductions                              -        9,965    Arbitration Settlement                                    -        1,502    Estimated Tax on Adjustments                          4,404       (5,944)    Adjusted Net Income (non-GAAP measure)              $37,424       $6,606    Diluted Earnings (Loss) Per Share:                        Reported                          $1.27       $(0.08)                        Adjusted (non-GAAP measure)       $1.07        $0.19                Estimated Operating Results for Full Year 2007    Total Revenue                               $760 -  $780 million    SG&A                                        $130 -  $133 million    R&D                                         $75 - $80 million    EPS (fully diluted)                         $1.35 - $1.50    Other supplemental information         Depreciation & amortization            $24 - $26 million         Share-based compensation               $18 - $20 million    IMPACT OF ONE-TIME ITEMS                               FY 2007    (in millions, except per share amounts)    Severance                                                 $2    Branded Milestone Payments                                19    High Yield Investment Loss                                 6    PAR 101                                                  (24)    Total One-Time Items                                      $3    EPS Impact (fully diluted)                             $0.05    EPS (fully diluted)     adjusted for one-time items                   $1.40 - $1.55