Global, Impax to Merge; Become Impax Laboratories Inc.

Global Pharmaceutical Corp. (Philadelphia), a specialty generic pharmaceutical company, and Impax Pharmaceuticals Inc. (Hayward, CA), a privately held drug delivery company, have entered into a definitive merger agreement. Under the terms of the agreement, Global will acquire all of Impax's outstanding stock in exchange for an aggregate of 31,571,274 shares of Global Common Stock and Preferred Stock. The transaction, which is intended to be tax-free, is valued at over $120 million.

The merged company, known as Impax Laboratories Inc., will combine the advanced drug delivery systems developed by Impax Pharmaceuticals with Global Pharmaceutical's manufacturing, marketing, and sales capabilities. The company will continue to expand development of niche and controlled release generics while accelerating the development of branded products.

Impax Laboratories Inc. will be headquartered in Hayward, CA. Charles Hsiao will serve as chairman of the company. Hsiao and Barry R. Edwards will serve as co-CEOs, and Larry Hsu will be the company's president and COO.

The new company's strategic mission is to become a leader in the specialty pharmaceutical area by leveraging its scientific expertise in drug delivery technologies. The company will have two marketing divisions for pharmaceutical products: its Global Pharmaceuticals division will market multi-source products, while the Impax Pharmaceuticals division will be responsible for marketing a line of branded products that will be built through a combination of licensing, acquisitions, and internal development.

Impax Pharmaceuticals Inc. is primarily involved in the formulation of controlled release solid oral pharmaceutical products.

Global Pharmaceutical Corp. is a specialty pharmaceutical company engaged in the development, manufacture, and marketing of solid, oral, generic prescription drug products primarily targeting niche markets.

For more information: Barry R. Edwards, President and CEO, Global Pharmaceutical Corp., Castor and Kensington Aves., Philadelphia, PA 19124. Phone: 215-289-2220 or 800-296-5227. Fax: 215-289-2223.