Akorn Issues Important Business Updates:
-- Purchase of Existing Credit Facility --
-- Renegotiation of Distribution Agreement --

Wednesday, April 1, 2009

LAKE FOREST, Ill.--(BUSINESS WIRE)--Akorn, Inc. (NASDAQ: AKRX) today announced that EJ Funds has purchased all of General Electric Capital Corporation’s rights as the lender under Akorn’s Credit Agreement with GE Capital. As of March 31, 2009, the effective date of the purchase, Akorn owed approximately $5.5 million under the Credit Agreement. EJ Funds is affiliated with EJ Financial Enterprises, Inc., whose President is Dr. John N. Kapoor, Akorn’s Chairman and largest shareholder.

Akorn expects to issue stock warrants to EJ Funds totaling approximately 1.65 million Akorn common shares in connection with this loan purchase. Also, although EJ Funds is not required to loan additional funds to Akorn, were it to do so, EJ Funds would receive additional stock warrants.

Additionally, on March 27, 2009 Akorn entered into a letter agreement with the Massachusetts Biological Laboratories of the University of Massachusetts (MBL), which amends Akorn’s 2007 Distribution Agreement with MBL for Td vaccines. Under the letter agreement, Akorn will no longer be an exclusive distributor of Td vaccines. Akorn will, however, continue to be an authorized Td distributor for MBL and will be offered MBL’s most favorable pricing. After a letter of credit is provided, Akorn will no longer be required to make minimum purchases of Td vaccines. Additional information regarding this transaction can be found in Akorn’s Form 10-K filed with the Securities and Exchange Commission on March 30, 2009.

Jeffrey A. Whitnell, Akorn’s Chief Financial Officer and Interim Chief Executive Officer stated, “Both of these transactions represent positive events for Akorn. We believe the credit facility purchase will provide Akorn with the flexibility to access additional capital resources and address our liquidity issue, as we continue to evaluate our various business segments and working capital needs.” Mr. Whitnell further added, “The amended agreement with MBL will ease our working capital requirements.”

Frequently Asked Questions:

1. Is the Company going to host a conference call to discuss 2008 results or issue financial guidance for 2009?

At this time, the Company does not anticipate hosting a conference call to discuss 2008 results. The company intends to resume quarterly conference calls once a permanent CEO has been announced. Traditionally, Akorn has not provided financial guidance and has no current plans to do so.

2. When does the Company expect to announce the hiring of a new CEO?

A Special Committee consisting of three Board members is in the process of hiring a permanent CEO. In the meanwhile, Jeff Whitnell, the Company’s Chief Financial Officer, has assumed the role of Interim CEO. Raj Rai, a Strategic Consultant to the Company, will continue to support the Special Committee as well as Jeff in his new role.

3. Do you have sufficient working capital to manage Company operations this year?

We have received an audit opinion that expresses doubt about our ability to continue as a going concern, due to our lack of liquidity, limited capital resources, continued losses and accumulated debt. However, given the purchase of our Credit Facility by EJ Funds, we expect to have the flexibility to access additional capital resources beyond our present borrowing level of $5.5 million. The Credit Facility with EJ Funds also provides the company with the opportunity to evaluate all of its business segments and to work towards a positive resolution of its working capital needs.

4. What is the current status of the Company’s operations?

The core business of the Company, consisting of ophthalmic, hospital drugs and injectables, and contract services is stable. In light of the amended agreement with MBL for Td vaccines, the Company is evaluating the infrastructure and the associated operating costs for this business segment.

5. What is the status of new product introductions?

The Company is evaluating several incremental revenue generating opportunities, including the re-launch of Akten™ that includes a trial sampling program. Our Oral Vancomycin ANDA is pending approval from the FDA. Additionally, our joint venture with Strides Arcolab will be launching Vancomycin Injection in Q2’09.

About Akorn, Inc.

Akorn, Inc. manufactures and markets sterile specialty pharmaceuticals. Akorn has manufacturing facilities located in Decatur, Illinois and Somerset, New Jersey and markets and distributes an extensive line of hospital and ophthalmic pharmaceuticals. Additional information is available at the Company’s website at www.akorn.com.

Materials in this press release may contain information that includes or is based upon forward-looking statements within the meaning of the Securities Litigation Reform Act of 1995. Forward-looking statements give our expectations or forecasts of future events. You can identify these statements by the fact that they do not relate strictly to historical or current facts. They use words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," and other words and terms of similar meaning in connection with a discussion of future operating or financial performance. In particular, these include statements relating to future steps we may take, prospective products, future performance or results of current and anticipated products, sales efforts, expenses, the outcome of contingencies such as legal proceedings, and financial results.

Any or all of our forward-looking statements here or in other publications may turn out to be wrong. They can be affected by inaccurate assumptions or by known or unknown risks and uncertainties. Many such factors will be important in determining our actual future results. Consequently, no forward-looking statement can be guaranteed. Our actual results may vary materially, and there are not guarantees about the performance of our stock.

Any forward-looking statements represent our expectations or forecasts only as of the date they were made and should not be relied upon as representing our expectations or forecasts as of any subsequent date. We undertake no obligation to correct or update any forward-looking statements, whether as a result of new information, future events or otherwise, even if our expectations or forecasts change. You are advised, however, to consult any further disclosures we make on related subjects in our reports filed with the SEC. In particular, you should read the discussion in the section entitled "Cautionary Statement Regarding Forward-Looking Statements" in our most recent Annual Report on Form 10-K, as it may be updated in subsequent reports filed with the SEC. That discussion covers certain risks, uncertainties and possibly inaccurate assumptions that could cause our actual results to differ materially from expected and historical results. Other factors besides those listed there could also adversely affect our results.

Contacts:
Akorn, Inc.
Jeffrey A. Whitnell
Chief Financial Officer & Interim Chief Executive Officer
(847) 279-6100