Exhibit 99.1

May 03, 2004 12:03 PM US Eastern Timezone

ELITE PHARMACEUTICALS ANNOUNCES CLOSING OF SETTLEMENT OF LITIGATION
WITH FORMER CEO

NORTHVALE, N.J.--(BUSINESS WIRE)--May 3, 2004--Elite Pharmaceuticals, Inc.
("Elite" or the "Company") (AMEX: ELI) announced the closing of the settlement
of the litigation between Dr. Atul Mehta, its former president and chief
executive officer and the Company, on April 21, 2004. Under the settlement
agreement, Dr. Mehta relinquished any rights to the Company's patents and
intellectual properties and agreed to certain non-disclosure and certain limited
non-competition covenants.

Commenting on the settlement, Bernard Berk, President and CEO of Elite stated,
"We are pleased to place this matter behind us. Elite will continue to move
forward with its pain management program with an emphasis on developing
twice-a-day and once-a-day Oxycodone products utilizing the company's
proprietary abuse release technology."

A settlement agreement and mutual release was finalized and entered with the
court on April 21, 2004. Under the settlement the Company paid Dr. Mehta
$400,000 and certain expense reimbursements and received a short term option for
the Company or its designees to acquire all of the shares of common stock of the
Company held by Dr. Mehta and his affiliates at $2.00 per share. The Company
paid $100,000 into escrow which will be released to Dr. Mehta if the Company
option is not exercised within a specific time. As part of the settlement, the
Company extended the expiration dates of certain options held by Dr. Mehta and
Dr. Mehta relinquished any rights to the Company's intellectual properties. The
Company also provided him with certain "piggyback" registration rights with
respect to shares underlying his options .

About Elite Pharmaceuticals

Elite Pharmaceuticals is a specialty pharmaceutical company principally engaged
in the development of oral, controlled release products. Elite develops
controlled release products internally and licenses these products that use
Elite's proprietary technology. The Company's strategy includes developing
controlled release versions of generic drugs with high barriers to entry and
assisting in the life cycle management of products to improve off patent drugs.
Elite's technology is applicable to develop delayed, sustained or targeted
release pellets, capsules, tablets, granules and powders for NDA or ANDA
submission. Elite has a pipeline of six products under development in the
therapeutic areas that include cardiovascular, pain, allergy and infection.
Elite also has a GMP and DEA registered facility for manufacturing in Northvale,
NJ.

This release contains forward-looking statements which involve known and unknown
risks, delays, uncertainties and other factors not under the Company's control,
which may cause actual results, performance or achievements of the Company to be
materially different from the results, performance or other expectations implied
by these forward-looking statements. These factors include results of current or
pending research and development activities, actions by the FDA and other
regulatory authorities, and those factors detailed in the Company's filings with
the Securities and Exchange Commission such as 10K, 10Q and 8K reports.

Contacts

Elite Pharmaceuticals, Inc.
Dianne Will, 518-398-6222
DWILL@WILLSTAR.NET
WWW.ELITEPHARMA.COM