Packaging

Court Orders Lannett to Notify Distributors Its Packaging Violates PrimaCare ONE(R) Trademark Rights

Thursday 24. July 2008 - Decision Affirms KV's Intellectual Property Rights at Early Stage of Infringement Case

KV Pharmaceutical Company (NYSE:KVa/KVb), today announced a favorable court decision related to litigation brought by KV against Lannett Company, Inc. for infringement of KV’s PrimaCare ONE(R) trademark and for patent infringement.

On July 17, 2008, the United States District Court for the District of Delaware issued an order requiring Lannett to contact its distributors in writing and advise them of the Court’s ruling that the bottles of Lannett’s prenatal vitamin that Lannett shipped to them infringe KV’s PrimaCare ONE(R) trademark. The Court has also ordered Lannett to provide its distributors with material adequate to cover KV’s PrimaCare ONE(R) trademark on each bottle of Lannett’s prenatal vitamins.

These developments follow a hearing on June 25, 2008, at which the Court instructed Lannett to develop new packaging to avoid the issuance of a restraining order. During the hearing, Lannett agreed not to distribute any more bottles of its prenatal vitamin until the infringing label had been corrected. The Court agreed at the hearing to an expedited trial on the other claims in KV’s suit that relate to Lannett infringing KV’s patents. This trial is expected to take place as early as January 2009.

“We are pleased with this decision,” stated Marc S. Hermelin, KV’s Chairman of the Board and Chief Executive Officer. “We are committed to protecting the integrity of our products and brands, and will continue to aggressively defend the PrimaCare ONE(R) trademark and patents. We strive to meet the needs of patients we serve with innovative, cost-effective, quality products, and this commitment requires an investment in innovation that our nation’s patent laws serve to protect.”