For Immediate Release



Elite Laboratories Signs Manufacturing Agreement with Ethypharm

NORTHVALE, N.J., Sept. 20, 2002 - Elite Pharmaceuticals, Inc. (Amex: ELI)
announced today that its wholly owned subsidiary Elite Laboratories, Inc. has
initiated the manufacturing of a new prescription drug product under an
agreement signed with Ethypharm S.A. on September 13, 2002. Under the terms of
the agreement, Elite has received an upfront manufacturing fee for the first
phase of the technology transfer and is entitled to receive fees in advance for
each phase of the manufacturing. In addition, upon FDA approval and if requested
by Ethypharm, Elite will manufacture commercial batches of the product on terms
to be agreed upon. " This proprietary product is intended to compete in a
therapeutic category that has current sales in the United States of $9 billion,
and $7 billion outside the U.S; by 2007 worldwide sales are expected to exceed
$30 billion" stated Mr. Gerard Leduc, the Managing Director and Chief Operating
Officer of Ethypharm. "We are pleased that Ethypharm has selected Elite's FDA
and DEA registered facility as the site to manufacture this product in the U.S.
" stated Dr. Atul Mehta, President and CEO of Elite.

Ethypharm is one of the world's leading drug delivery systems (DDS) companies
that provides effective solutions to optimize the delivery of active molecules
into the body. The Company has developed a broad range of technology platforms
for both oral and injectable delivery, and now has 50 products sold in more than
70 countries. Founded in 1977 by Patrice Debregeas and Gerard Leduc, the Company
has more than 900 employees. Ethypharm's headquarters are located in Saint
Cloud, France and the company has operations in all of the world's key
healthcare markets. Ethypharm has more than 100 clients worldwide including most
of the world's major pharmaceutical companies.

Elite specializes in the development of delayed release, sustained release,
targeted release, pulse release and other oral controlled release formulations.
Elite has over fifteen products under development in the therapeutic areas that
include cardiovascular, diabetes, arthritis, pain, neurology, allergy and
infection. Some of these products are being developed in collaboration with
other pharmaceutical companies. Elite has been issued three patents, and
additional patent applications have been filed.



 FOR FURTHER INFORMATION, CONTACT:

Jonathan Fassberg of The Trout Group, Investor Relations of Elite
Pharmaceuticals, Inc.
     Phone:  212-477-9007 Ext 16
Website: http://www.elitepharma.com
Hafid Touam of Ethypharm Corporation
     Phone: 609-919-9774
SOURCE: Elite Pharmaceuticals, Inc. and Ethypharm S.A.