EXHIBIT 99.2


NEWS RELEASE


Contact:   OSI Pharmaceuticals, Inc.         Burns McClellan (representing OSI)
           Kathy Galante                     Kathy Jones, Ph.D. (media)
           Director                          Blair Clark (investors)
           Investor & Public Relations       (212) 213-0006
           (631) 962-2000


             OSI PHARMACEUTICALS ANNOUNCES TERMS OF $135 MILLION OF
                            CONVERTIBLE SENIOR NOTES

MELVILLE, N.Y--(BUSINESS WIRE)--Sept. 3, 2003--OSI Pharmaceuticals, Inc.
(NASDAQ:OSIP) announced that it has agreed to issue $135 million of convertible
senior notes due 2023. The initial purchasers of the notes have an option,
exercisable within 30 days following the date of issuance of the notes, to
purchase an additional $15 million of the notes on the same terms. The notes
will bear interest at 3.25 percent per annum payable semi-annually.

The notes will be convertible into OSI Pharmaceuticals common stock at an
initial conversion price (subject to adjustment) of $50.02 per share,
representing a conversion premium of 32.5 percent over the closing bid price of
$37.75 of the OSI common stock on the Nasdaq National Market on September 2,
2003. The sale of the notes is expected to close on September 8, 2003.

On or after September 8, 2008, OSI may at its option redeem all or a portion of
the notes for cash at a redemption price equal to 100 percent of the principal
amount of the notes to be redeemed, plus any accrued and unpaid interest. In
addition, on each of September 8, 2008, September 8, 2013, and September 8,
2018, holders may require OSI to purchase all or a portion of their notes for
cash at 100 percent of the principal amount of the notes to be purchased, plus
any accrued and unpaid interest.

As announced yesterday, OSI expects to use up to $20 million of the proceeds of
the offering to repurchase shares of its common stock in transactions negotiated
concurrently with the offering. The company intends to use approximately $12.5
million of the net proceeds to purchase U.S. treasury securities to be pledged
as security for the notes, in an amount sufficient to pay the first six interest
payments on the notes, and to use the balance of the net proceeds to support the
continued development of its integrated oncology franchise, including possible
acquisition of external assets and for general corporate purposes.

The notes will be issued in a private placement and are expected to be resold by
the initial purchasers to qualified institutional buyers under Rule 144A of the
Securities Act of 1933. The notes and the shares of common stock issuable upon
conversion of the notes have not been registered under the Securities Act of
1933 or any state securities laws and may not be offered or sold in the United
States absent registration or an applicable exemption from registration
requirements.

This news release shall not constitute an offer to sell or a solicitation of an
offer to buy, nor shall there be any sale of these securities in any state or
jurisdiction in which such an offer, solicitation or sale would be unlawful
prior to registration or qualification under the securities law of any such
state or jurisdiction.

This announcement may contain, in addition to historical information, certain
forward-looking statements that involve risks and uncertainties. Such statements
with respect to OSI reflect the current views of OSI's management and are based
on certain assumptions. Actual results for OSI could differ materially from
those currently anticipated as a result of a number of factors, including risks
and uncertainties discussed in OSI's filings with the U.S. Securities and
Exchange Commission. OSI is developing several products for potential future
marketing. There can be no assurance that such development efforts will succeed,
that such products will receive required regulatory clearance or that, even if
such regulatory clearance were received, such products would ultimately achieve
commercial success.