Exhibit 99.1

IGI LABORATORIES, INC. AND SUBSIDIARIES

PROFORMA CONSOLIDATED BALANCE SHEET

(in thousands, except share and per share information)

	March 31, 2009 Proforma (unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	4,481
Accounts receivable less allowance for doubtful accounts of $75		354
Licensing and royalty income receivable		87
Inventories		828
Prepaid expenses and other current assets		130
Total current assets		5,880
Property, plant and equipment, net		2,282
Restricted cash – long term		50
License fee, net		675
Other		100
Total assets	$	8,987
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	342
Accrued expenses		343
Deferred income, current		216
Total current liabilities		901
Deferred income, long term		38
Total liabilities		939
Commitments and contingencies
Stockholders’ equity:
Series A Convertible Preferred stock, $.01 par value, 100 shares  authorized; 50 shares issued and outstanding as of May 15, 2009  and March 31, 2009; liquidation preference - $500,000		500
Series B-1 Convertible Preferred stock, $.01 par value, 1,030 shares  authorized; 1,006.879 and 202.9 shares issued and outstanding as of  May 15, 2009 and March 31, 2009, respectively;  liquidation preference - $6,000,000		5,851
Common stock, $.01 par value, 50,000,000 shares authorized; 18,110,659 and  16,891,147 shares issued as of May 15, 2009 and March 31, 2009, respectively		181
Additional paid-in capital		31,519
Accumulated deficit		(28,608)
Less treasury stock, 1,965,740 common shares at cost		(1,395)
Total stockholders’ equity		8,048
Total liabilities and stockholders' equity	$	8,987

IGI LABORATORIES, INC. AND SUBSIDIARIES

PROFORMA CONSOLIDATED STATEMENT OF OPERATIONS

(in thousands, except shares and per share information)

	Three months ended March 31, 2009 Proforma (Unaudited)
Revenues:
Product sales, net	$	505
Licensing and royalty income		88
Research and development income		1
Total revenues		594
Costs and Expenses:
Cost of sales		600
Selling, general and administrative expenses		648
Product development and research expenses		119
Operating (loss) income		(773)
Interest (expense), net		(951)
Net (loss) income		(1,724)
Dividend accreted for beneficial conversion features		(2,488)
Net (Loss) Income Attributable to Common Stockholders	$	(4,212)
Basic (loss) income per share	$	(.28)
Diluted (loss) income per share		(.28)
Weighted average shares of common stock outstanding:
Basic		14,924,768
Diluted		14,924,768