EXHIBIT 99.1
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LIVE BETTER
CHATTEM
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NEWS RELEASE                        CONTACT: Catherine Baker, Investor Relations
                                             423.822.3209




FOR IMMEDIATE RELEASE
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              CHATTEM, INC. AMENDS REVOLVING CREDIT FACILITY, CALLS
        FLOATING RATE SENIOR NOTES AND INCREASES STOCK BUYBACK AUTHORITY
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Chattanooga, Tenn. - December 1, 2005 - Chattem, Inc. (NASDAQ: CHTT) - a leading
marketer and manufacturer of branded consumer products, today announced it has
entered into an amendment to its Senior Secured Revolving Credit Facility (the
"Amended Revolving Credit Facility") with a syndicate of commercial banks led by
Bank of America, N.A., as agent, that, among other things, increases the
Company's borrowing capacity under the facility from $50 million to $100
million, lowers the interest rate on borrowings under the facility and allows
the Company greater flexibility to repurchase its common stock and refinance its
existing debt. The Amended Revolving Credit Facility matures November 15, 2010.

The Company also announced that it has called its $75 million of Floating Rate
Senior Notes due March 1, 2010 for full redemption on December 30, 2005. The
notes were called at 102 percent of par, which equates to a premium of $1.5
million. The Company will utilize borrowings under the Amended Revolving Credit
Facility and its cash on hand to redeem the notes. In connection with the call
of the notes, the Company expects to record a non-recurring pre-tax loss for
early extinguishment of debt in the amount of approximately $2.9 million, or
$0.10 per share after taxes. As a result of the refinancing, the Company will
lower its borrowing rate, generating an expected minimum net interest expense
savings of approximately $2 million before taxes during fiscal 2006. In
addition, the debt restructuring initiative will offer greater flexibility that
may result in further interest expense reductions.

In addition, the Company's Board of Directors approved an increase in the stock
buyback authority under the Company's stock buyback program back to $30 million,
which became effective upon the consummation of the Amended Revolving Credit
Facility.

Chattem, Inc. is a leading marketer and manufacturer of a broad portfolio of
branded OTC healthcare products, toiletries and dietary supplements. The
Company's products target niche market segments and are among the market leaders
in their respective categories across food, drug and mass merchandisers. The
Company's portfolio of products includes well-recognized brands such as Icy
Hot(R), Gold Bond(R), Selsun Blue(R), pHisoderm(R), Garlique(R), Pamprin(R) and
BullFrog(R). Chattem conducts a portion of its global business through
subsidiaries in the United Kingdom, Ireland and Canada.

Statements in this press release which are not historical facts are
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements involve risks,
uncertainties and assumptions that could cause actual outcomes and results to
differ materially from those expressed or projected.