For the three month period ended October 31, 2009, selling, general and administrative expense was $10.2 million, an increase of $2.7 million from $7.5 million at October 31, 2008. This increase was primarily the result of the ECR subsidiary and the amortization of intangibles of the ECR acquisition. Additionally, this expense included $1.6 million in a royalty payable to a legal partner for the Dorzolamide with Timolol ophthalmic solution.

Net income for the three month period was $7.4 million as compared to $1.1 million in the prior period. This resulted in diluted earnings per share of $0.60 compared to $0.09 per share in the comparable period in the prior year.

David Seltzer, President and CEO, commented: We are pleased with the continued success of Dorzolamide with Timolol ophthalmic solution and Dorzolamide ophthalmic solution along with the core generic liquid line which showed strong growth. As expected, these products strengthened the Company ™s financial position and allowed us to continuously invest in the business to assure future growth. This investment includes the ECR Pharmaceuticals business which showed strong growth this quarter and our recent in-licensing of Zolpimist?®, which we believe will be a very successful product for ECR in the coming fiscal year.

Hi-Tech currently has 15 products awaiting FDA approval, targeting brand and generic sales of over $600 million. In addition, Hi-Tech has twenty products in active development targeting brand sales of over $2 billion, including sterile ophthalmic products, oral solutions and suspensions and solid dosage forms.

SOURCE Hi-Tech Pharmacal Co., Inc.