EXHIBIT 99.1

LANNETT COMPANY, INC.

FOR FEBRUARY 6, 2004 RELEASE

CONTACT: FRANKLIN DOHANYOS
          FRANKLIN PUBLICITY, INC.
          248/399-1101

          franklinpr@aol.com

LANNETT COMPANY DISCLOSES GRANT OF OPTION BY MAJORITY STOCKHOLDER TO SELL HIS
SHARES IN THE COMPANY

      PHILADELPHIA, PA - February 6, 2004 - LANNETT COMPANY, INC. (AMEX: LCI),
today, has announced that its majority shareholder, William Farber, has entered
into an irrevocable stock purchase option agreement that may result in the
transfer of his ownership position to a third party.

      William Farber, Lannett's Chairman of the Board of Directors and Chief
Executive Officer, has been the controlling shareholder of Lannett Company since
1991, when he acquired the rights to the majority of the Company's stock through
an acquisition and financing agreement with the founder of the Company, Samuel
Gratz. Mr. Farber has helped to successfully grow the Company over the past ten
years by recruiting talented managers, and capitalizing on the opportunities of
the generic industry. In order to engage in estate planning, Mr. Farber, at the
age of 72, has made the decision to diversify his holdings in the Company and to
sell his shares to a third party.

      Mr. Farber and his wife have granted an irrevocable stock option to a
third party to purchase all of the shares they own or have the right to acquire,
under stock options granted by the Company, at a price of $14.56 per share plus
contingent additional consideration. The third party has the right to exercise
its option, and buy the stock, any time between now and August 6, 2004. If it
acquires the shares currently owned by Mr. and Mrs. Farber, the third party has
represented that it will make a tender offer (to the extent permitted by law),
or alternatively use its commercially reasonable efforts to enter into a merger
agreement or other business combination with the Company, within ninety (90)
days after the date it acquires the shares owned by Mr. and Mrs. Farber, for the
remainder of the



outstanding shares of common stock of the Company at a total price per share
which is no less than the higher of (i) the average closing price of Lannett's
common stock as publicly reported by the American Stock Exchange over the 10
trading days ending February 5, 2004, or (ii) the total price per share paid to
Mr. and Mrs. Farber, including any additional consideration. Currently, there
has been no offer communicated to Lannett's Board of Directors regarding the
stock owned by the remaining shareholders. The decision to approve or disapprove
any tender offer or business combination for the remaining shares will be
subject to approval by a special committee comprised of the independent members
of the Lannett Company Board of Directors. Mr. Farber and his wife own
approximately 13.5 million shares of Lannett's common stock, which represents
approximately 66% of the outstanding stock of the Company.

      The Company's common stock trades on the American Stock Exchange under the
symbol "LCI". For more information please call Investor Relations at
215/333-9000.

      THIS PRESS RELEASE CONTAINS CERTAIN STATEMENTS OF A FORWARD-LOOKING NATURE
RELATING TO FUTURE EVENTS OR FUTURE BUSINESS PERFORMANCE. ANY SUCH STATEMENTS
THAT REFER TO LANNETT'S ESTIMATED OR ANTICIPATED FUTURE FINANCIAL RESULTS,
FUTURE INVENTORY LEVELS, FUTURE COMPETITION OR PRICING, FUTURE LEVELS OF
OPERATING EXPENSES, PRODUCT DEVELOPMENT EFFORTS OR PERFORMANCE, OR OTHER
NON-HISTORICAL FACTS ARE FORWARD-LOOKING AND REFLECT LANNETT'S CURRENT
PERSPECTIVE OF EXISTING TRENDS AND INFORMATION. THESE STATEMENTS INVOLVE RISKS
AND UNCERTAINTIES THAT CANNOT BE PREDICTED OR QUANTIFIED AND, CONSEQUENTLY,
ACTUAL RESULTS MAY DIFFER MATERIALLY FROM THOSE EXPRESSED OR IMPLIED BY SUCH
FORWARD-LOOKING STATEMENTS. SUCH RISKS AND UNCERTAINTIES INCLUDE, AMONG OTHERS,
THE UNCERTAINTY THAT ACTUAL RESULTS MAY DIFFER MATERIALLY FROM THE PRELIMINARY
RESULTS DESCRIBED IN THIS PRESS RELEASE, RATES OF SALE OF CUSTOMER INVENTORIES,
THE SUCCESS OF LANNETT'S PRODUCT DEVELOPMENT ACTIVITIES AND THE TIMELINESS WITH
WHICH REGULATORY AUTHORIZATIONS AND PRODUCT ROLL-OUT MAY BE ACHIEVED, MARKET
ACCEPTANCE OF LANNETT'S PRODUCTS AND THE IMPACT OF COMPETITIVE PRODUCTS AND
PRICING, THE AVAILABILITY ON COMMERCIALLY REASONABLE TERMS OF RAW MATERIALS AND
OTHER THIRD PARTY SOURCED PRODUCTS, SUCCESSFUL COMPLIANCE WITH EXTENSIVE,
COSTLY, COMPLEX AND EVOLVING GOVERNMENTAL REGULATIONS AND RESTRICTIONS, EXPOSURE
TO PRODUCT LIABILITY AND OTHER LAWSUITS AND CONTINGENCIES, AND OTHER RISKS AND
UNCERTAINTIES DETAILED IN LANNETT'S MOST RECENT FILINGS WITH THE SECURITIES AND
EXCHANGE COMMISSION, INCLUDING BUT NOT LIMITED TO: LANNETT'S ANNUAL REPORT AND
FORM 10-KSB FOR THE YEAR ENDED JUNE 30, 2003.

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