[COMPANY LOGO]  IMPAX
                LABORATORIES, INC.



                                                         
Company Contacts:                                           Investor Relations Contacts:
IMPAX Laboratories, Inc.                                    Lippert/Heilshorn & Associates, Inc.
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Barry R. Edwards, Co-CEO                                    Kim Sutton Golodetz (kgolodetz@lhai.com)
(215) 289-2220 Ext. 1771                                    (212) 838-3777
Larry Hsu, Ph.D., President                                 Bruce Voss (bvoss@lhai.com)
(510) 476-2000 Ext. 1111                                    (310) 691-7100
Cornel C. Spiegler, CFO                                     www.lhai.com
(215) 289-2220 Ext. 1706                                    ------------
www.impaxlabs.com
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              IMPAX ANNOUNCES MERCK'S WITHDRAWAL OF LAWSUIT RELATED
                      TO GENERIC VERSION OF SINEMET(R) CR


Hayward, CA - April 9, 2003 - IMPAX Laboratories, Inc. (NASDAQ NM: IPXL) today
announced that Merck & Co. Inc. (NYSE: MRK) has withdrawn its lawsuit alleging
patent infringement related to IMPAX's filing of an Abbreviated New Drug
Application (ANDA) for a generic version of Sinemet(R)CR tablets. The lawsuit
had been filed in the federal district court in Delaware in February 2003.

Sinemet CR is used to treat patients with Parkinsonism, and is exclusively
distributed in the U.S. by Bristol-Myers Squibb Company (NYSE: BMY). U.S. sales
of Sinemet CR and the currently marketed generic equivalent were approximately
$154 million in the 12 months ended December 31, 2002, according to IMS Health
data. The FDA accepted for review IMPAX's application to market a generic
version of Merck's Sinemet CR in December 2002.

IMPAX has 19 applications pending at the FDA, including three tentatively
approved, that address more than $5.8 billion in U.S. branded product sales for
the 12 months ended December 31, 2002. Thirteen of these filings were made under
Paragraph IV of the Hatch-Waxman Amendments.

IMPAX Laboratories, Inc. is a technology based specialty pharmaceutical company
applying its formulation expertise and drug delivery technology to the
development of controlled-release and specialty generics, in addition to the
development of branded products. IMPAX markets its generic products through its
Global Pharmaceuticals division and intends to market its branded products
through the IMPAX Pharmaceuticals division. Additionally, where strategically
appropriate, IMPAX has developed marketing partnerships to fully leverage its
technology platform. IMPAX Laboratories is headquartered in Hayward, California,
and has a full range of capabilities in its Hayward and Philadelphia facilities.
For more information, please visit the Company's Web site at: www.impaxlabs.com.


"Safe Harbor" statement under the Private Securities Litigation Reform Act of
1995:
To the extent any statements made in this news release contain information that
is not historical, these statements are forward-looking in nature and express
the beliefs and expectations of management. Such statements are based on current
expectations and involve a number of known and unknown risks and uncertainties
that could cause IMPAX's future results, performance or achievements to differ
significantly from the results, performance or achievements expressed or implied
by such forward-looking statements. Such risks and uncertainties include, but
are not limited to, IMPAX's ability to obtain sufficient capital to fund its
operations, the difficulty of predicting FDA filings and approvals, consumer
acceptance and demand for new pharmaceutical products, the impact of competitive
products and pricing, IMPAX's ability to successfully develop and commercialize
pharmaceutical products, IMPAX's reliance on key strategic alliances, the
uncertainty of patent litigation, the availability of raw materials, the
regulatory environment, dependence on patent and other protection for innovative
products, exposure to product liability claims, fluctuations in operating
results and other risks detailed from time to time in IMPAX's filings with the
Securities and Exchange Commission. Forward-looking statements speak only as to
the date on which they are made, and IMPAX undertakes no obligation to update
publicly or revise any forward-looking statement, regardless of whether new
information becomes available, future developments occur or otherwise.

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