Exhibit 99.1

Contacts:	Robert Jaffe/Evan Pondel
	PondelWilkinson Inc.
	(310) 279-5980

LANNETT REPORTS FISCAL 2008 SECOND QUARTER FINANCIAL RESULTS

Philadelphia, PA — February 8, 2008 — Lannett Company, Inc. (AMEX: LCI) today reported its financial results for the fiscal 2008 second quarter and six months ended December 31, 2007.

For the second quarter of fiscal 2008, net sales were $17.5 million compared with $22.9 million for the same period of the prior year.  Net loss was $658,000, or $0.03 per share, versus net income of $955,000, or $0.04 per basic and diluted share, for the second quarter of fiscal 2007.

For the first six months of fiscal 2008, net sales were $35.1 million compared with $44.9 million for the same period of the prior year.  Net loss was $785,000, or $0.03 per share, versus net income of $2.3 million, or $0.09 per basic and diluted share, for the first half of fiscal 2007.

“We continue to make progress on integrating our acquired raw material and oral solutions supplier and expect this unit to begin generating positive cash flow in early fiscal 2009,” said Arthur Bedrosian, president and chief executive officer of Lannett.  “Costs associated with operating this unit, combined with certain non-recurring expenses and professional fees, offset what would have otherwise been a profitable quarter.”

For the second quarter of fiscal 2008, gross profit was $4.9 million, or 28% of net sales, compared with $5.5 million, or 24% of net sales, for the same period in the prior year.  Research and development expenses decreased to $946,000 from $1.5 million in the comparable prior year period.  SG&A expenses increased to $4.3 million, compared with $2.0 million, in the same period last year.  Amortization expense was $446,000 for the second quarter in both fiscal 2008 and 2007.

For the first six months of fiscal 2008, gross profit was $10.7 million, or 30% of net sales, compared with $14.2 million, or 32% of net sales, for the same period in the prior year.  Research and development expenses decreased to $2.2 million from $3.3 million in the comparable prior year period.  SG&A expenses increased to $8.5 million, compared with $6.4 million, in the same period last year.  Amortization expense was $892,000 for the first six months of both fiscal 2008 and 2007.

About Lannett Company, Inc.:

Lannett Company, founded in 1942, develops, manufactures, packages, markets and distributes generic pharmaceutical products for a wide range of indications.  For more information, visit the company’s website at www.lannett.com.

This news release contains certain statements of a forward-looking nature relating to future events or future business performance.  Any such statements, including, but not limited to, pending ANDAs and products in various stages of development, whether expressed or implied, are subject to risks and uncertainties which can cause actual results to differ materially from those currently anticipated due to a number of factors which include, but are not limited to, the difficulty in predicting the timing or outcome of FDA or other regulatory approvals or actions, the ability to successfully commercialize products upon approval, 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, and other risk factors discussed in the company’s Form 10-K and other documents filed with the Securities and Exchange Commission from time to time.  These forward-looking

statements represent the company’s judgment as of the date of this news release.  The company disclaims any intent or obligation to update these forward-looking statements.

# # #

FINANCIAL TABLES FOLLOW

LANNETT COMPANY, INC. AND SUBSIDIARIES

CONSOLIDATED CONDENSED BALANCE SHEETS

	(UNAUDITED)
	December 31,		June 30,
	2007		2007
Assets:
Current Assets:
Cash	$	1,985,769	$	5,192,341
Trade accounts receivable, net	22,226,732		19,473,978
Inventories	11,994,176		14,518,484
Interest receivable	57,835		36,260
Prepaid taxes	3,193,685		3,193,685
Deferred tax assets	1,676,172		1,258,930
Other current assets	825,481		611,512
Total current assets	41,959,850		44,285,190
Property, plant, and equipment, net	26,291,230		27,443,161
Investment securities - available-for-sale	2,346,599		3,320,632
Deferred tax assets	16,919,138		17,150,174
Intangible asset, net	11,254,168		12,046,502
Construction in progress	700,278		176,003
Other assets	213,411		234,438
Total Assets	$	99,684,674	$	104,656,100
Liabilities and Shareholders’ Equity:
Current liabilities	$	17,783,313	$	22,250,243
Long-term debt, less current portion	8,693,276		8,987,846
Deferred tax liabilities	3,207,989		3,202,835
Other long term liabilities	26,237		32,001
Shareholders’ equity	69,973,859		70,183,175
Total Liabilities and Shareholders’ Equity	$	99,684,674	$	104,656,100

LANNETT COMPANY, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

		For the Three Months Ended					For the Six Months Ended
		(UNAUDITED)					(UNAUDITED)
		December 31,			December 31,		December 31,			December 31,
		2007			2006		2007			2006
Net sales		$	17,534,942		$	22,916,347	$	35,074,972		$	44,884,171
Cost of sales (excluding amortization of intangible asset)		12,619,384			17,402,285		24,411,920			30,642,680
Gross profit		4,915,558			5,514,062		10,663,052			14,241,491
Research and development expenses		946,282			1,538,108		2,198,430			3,316,534
Selling, general and administrative expenses		4,296,993			1,981,664		8,472,273			6,353,241
Amortization of intangible asset		446,166			446,166		892,332			892,332
Operating (loss) income		(773,883		)	1,548,124		(899,983		)	3,679,384
Other (expense) income		(43,647		)	43,828		(90,393		)	78,412
(Loss) income before taxes		(817,530		)	1,591,952		(990,376		)	3,757,796
Income tax (benefit) expense		(159,983		)	636,781		(205,668		)	1,504,598
Net (loss) income		$	(657,547	)	$	955,171	$	(784,708	)	$	2,253,198
(Loss) earnings per share:
	Basic	$	(0.03	)	$	0.04	$	(0.03	)	$	0.09
	Diluted	$	(0.03	)	$	0.04	$	(0.03	)	$	0.09
Shares used to calculate (loss) earnings per share:
	Basic	24,183,044			24,154,553		24,179,344			24,151,237
	Diluted	24,183,044			24,222,515		24,179,344			24,197,946