Elite Acquires All Rights in Oxycodone and Other Products

NORTHVALE, N.J., Oct. 4 -- Elite Pharmaceuticals, Inc. (Amex: ELI) announced
today that it has consummated an agreement with Elan Corporation, plc
(NYSE: ELN) to acquire all of Elan's interest in a joint venture company, Elite
Research Limited. The termination of the joint venture results from Elan's
continuing restructuring efforts. Elite now owns 100 percent of the joint
venture company and intends to expedite the development of the products that
were developed within the collaboration.

The joint venture has completed the initial Phase I study for its first product,
a once-a-day Oxycodone formulation. The study compared the once a day
formulation against the twice-daily reference product that is currently
marketed. The data showed comparable bioavailability. Accordingly, Elite intends
to proceed with the next stage of development. The US market for twice a day
oxycodone products exceeds $1 billion. Currently there is no once a day
formulation for this compound.

The joint venture has also been developing a second product in the CNS
therapeutic area to compete with a currently marketed product whose US sales
exceed $1 billion.

Dr. Atul Mehta, the President and CEO of Elite stated, "We are excited to have
obtained the world-wide development and commercialization rights for these
products. We anticipate commencing larger studies on the first product in the
near future. As a result of this transaction, we have regained control over the
products, and we are now in a position to make the strategic decisions that will
most efficiently move them toward commercialization."

Under the termination agreement, Elite acquired all proprietary, development and
commercial rights for the worldwide markets for the products developed by the
joint venture. In exchange for this assignment, Elite Research has agreed to pay
Elan a royalty on certain revenues that may be realized from the once-a-day
Oxycodone product only that has been developed by the joint venture. Elan and
its transferees also retained Elite securities that were issued in connection
with the joint venture, and those securities are being converted to Elite common
stock at a significant premium. Elite Laboratories, a wholly owned subsidiary of
Elite Pharmaceuticals, Inc. specializes in oral drug delivery, and applies its
proprietary controlled release technology to the development of delayed release,
sustained release, targeted release and pulse release products for NDA or ANDA
submission. Elite has been issued several patents, and additional patent
applications are pending.

This release contains forward-looking statements which involve known and unknown
risks, delays, uncertainties and other factors not under the Company's control,
which may cause actual results, performance or achievements of the Company to be
materially different from the results, performance or other expectations implied
by these forward-looking statements. These factors include outcomes of current
or pending research and development activities, actions by the FDA and other
regulatory authorities, changes in competitive or market conditions, and those
factors detailed in the Company's filings with the Securities and Exchange
Commission such as 10K, 10Q, and 8K reports.

FOR FURTHER INFORMATION, CONTACT:
     Jonathan Fassberg of The Trout Group
     Phone: (212) 477-9007 Ext. 16
     Website: http://www.elitepharma.com

Source: Elite Pharmaceuticals, Inc.