Exhibit 99.1


                     Chattem Announces Sale of pHisoderm(R)

     CHATTANOOGA, Tenn.--(BUSINESS WIRE)--Dec. 5, 2005--Chattem, Inc. (NASDAQ:
CHTT) - a leading marketer and manufacturer of branded consumer products, today
announced that on November 30, 2005 the Company sold its pHisoderm(R) line of
skin care products to The Mentholatum Company, Inc. ("Mentholatum" or "buyer")
for a purchase price of $8.5 million plus inventories of approximately $1.1
million. Sales of the pHisoderm line represented approximately 4% and 5% of net
sales in fiscal 2005 and 2004, respectively.
     "The sale of pHisoderm(R) to a strategic buyer enables us to redirect our
core competencies into the continued growth of our leading brands," said Zan
Guerry, the Company's Chairman and Chief Executive Officer. "This transaction
was a good opportunity to divest a brand that was no longer consistent with our
strategy of having leading products in small to medium sized HBA categories and
allows us to focus management and financial resources on our key brands.
Additionally, the cash generated through the sale of pHisoderm further
strengthens our balance sheet and creates additional financial flexibility."
     As the result of the transaction, the Company expects to recognize a
non-cash loss on the sale of approximately $8.0 - 8.5 million before tax in the
fourth quarter of fiscal 2005. For fiscal 2006, it is anticipated that the
divestiture will have a negligible impact on earnings per share in comparison
with previous guidance.
     Chattem, Inc. is a leading marketer and manufacturer of a broad portfolio
of branded OTC healthcare products, toiletries and dietary supplements. The
Company's products target niche market segments and are among the market leaders
in their respective categories across food, drug and mass merchandisers. The
Company's portfolio of products includes well-recognized brands such as Icy
Hot(R), Gold Bond(R), Selsun Blue(R), Garlique(R), Pamprin(R) and BullFrog(R).
Chattem conducts a portion of its global business through subsidiaries in the
United Kingdom, Ireland and Canada.
     Statements in this press release which are not historical facts are
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements involve risks,
uncertainties and assumptions that could cause actual outcomes and results to
differ materially from those expressed or projected.


    CONTACT: Chattem, Inc.
             Catherine Baker, 423-822-3209