News from DEA, Domestic Field Divisions, Newark News Releases, 02/25/03

News Release
FOR IMMEDIATE RELEASE
February 25, 2003

DEA/Newark Division Accepts Surrender of Registration from Neil Laboratories to Manufacture List I Chemicals.

The DEA/Newark Field Division has entered into a Memorandum of Agreement with NEIL LABORATORIES INC., 55 Lake Drive, East Windsor, New Jersey, concerning their ability to manufacture List I Chemicals. As a result of an Order to Show Cause initiated against the registration of NEIL LABORATORIES the company has entered into the following agreement with DEA:

NEIL LABORATORIES agreed to the surrender of their registration with DEA to Manufacture List I Chemicals.

NEIL LABORATORIES agreed that the company will not engage in the manufacture or distribution of over-the-counter pharmaceutical products containing listed chemicals.

NEIL LABORATORIES agreed that the company will not manufacture or distribute over-the-counter pharmaceutical products containing List I Chemicals pursuant to any controlled substance registration granted by DEA to any Neil Laboratories facility.

NEIL LABORATORIES agreed to allow DEA personnel, upon presentation of a Notice of Inspection, to enter its place of business at any time during regular business hours for the purpose of verifying compliance with the Controlled Substance Act and DEA regulations in regard to listed chemicals; and verifying compliance with this agreement.

In 2002 investigators and agents from the DEA/ Newark Division, during the execution of a criminal search warrant, delivered an Immediate Suspension Order issued by DEA to Bharat PATEL, President of NEIL LABORATORIES INC. At that time, among other things, NEIL LABORATORIES ability to manufacture DEA regulated List I Chemicals was suspended immediately and all NEIL LABORATORIES List I Chemicals were seized. This agreement concludes a two-year investigation of the firm concerning their activities with the manufacture and distribution of List I Chemicals.

Acting Special Agent in Charge of the DEA/Newark Division Alexander J. Gourley stated " the DEA will continue to investigate and prosecute any and all pharmaceutical companies whose products end up in clandestine laboratories that facilitate and manufacture illegal drugs."