HALSEY REPORTS REVENUES DECREASED 19% FOR FIRST QTR 2003.

Halsey Pharmaceuticals (OTCBB-HDGC), Rockford, Ill., has announced that revenues for the quarter ended March 31, 2003 decreased 19% to $1,526,000 as compared to revenues of $1,881,000 for quarter ended March 31, 2002. The company incurred a net loss for the quarter ended March 31, 2003 of $(10,575,000) or $(.50) per share compared to a net loss of $(5,479,000) or $(.36) per share for the same three month period in 2002. The company's loss from operations for the quarter ended March 31, 2003 increased to $(3,387,000) or $(.16) per share compared to an operating loss of $(2,888,000) or $(.19) per share for the same three month period in 2002. Commenting, Michael Reicher, chairman & CEO said, "For the past four years the company has derived the majority of its product revenues by having others market our approved products under their label. This strategy allowed us to reduce certain expenses and concentrate on other facets of our business. However, the disappointing sales results over the past quarters have caused us to decide that a more direct sales effort is required. Accordingly, beginning in the second quarter, the company will begin marketing its line of generic products using a dedicated sales force. Further, the company will be enhancing the product line with additional generic products in succeeding quarters. At the same time, research and development work continues in both finished dosage and active ingredient areas as they relate to our opiate strategy and eventual participation in the market for pain management products."

Halsey Pharmaceuticals, together with its subsidiaries, is an emerging pharmaceutical company specializing in innovative drug development.

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