SVNTE Savient Pharmaceuticals (MM)

Savient Pharmaceuticals, Inc. (NASDAQ: SVNTE) an emerging specialty pharmaceuticals company focused on developing, manufacturing and marketing novel therapeutic products for unmet medical needs, announced today that the Company's Audit Committee, with the assistance of management, counsel and independent accounting consultants, and as discussed with its independent auditors, has determined that the periods affected by an error in recording the Company's reserve for product returns and inventory include the six months ended June 30, 2005, as reported in the Company's press release dated August 9, 2005, and the fiscal years ended 2004, 2003 and 2002. The Company has determined that it had made an error in recording its reserve for product returns and inventory in the first quarter of 2005. The Company has also determined its reserve for product returns and inventory were based, in part, on notifications received from customers advising the Company, through its third-party fulfillment center, of their intent to return product. As previously announced, certain of those reported returns were in error and actual units of product returned were significantly less than the amounts originally expected to be returned. The Company has further determined that in recording its reserves for product returns and inventory, it had failed to properly evaluate the data and the resulting impact on such reserves. As previously reported, on September 29, 2005, at a hearing before a Nasdaq Listing Qualifications Panel (the "Panel"), the Company presented a plan of compliance including the description of steps it had taken as of the date of the hearing to evaluate the issues presented by the previously announced errors in its reserve for product returns and anticipated future actions that will be necessary to enable the Company to regain compliance with Nasdaq's listing requirements. The Company expects to announce the Panel's decision promptly after such decision is received. The delisting of the Company's common stock is stayed pending receipt of the Panel's decision. The Company cannot provide any assurances that the Panel will grant its request for an extension of time within which it may regain compliance with Nasdaq's listing requirements. The Company is in the process of preparing restated financial statements for the fiscal years ended December 31, 2002, 2003 and 2004, and the quarter ended March 31, 2005, as well as its Quarterly Report on Form 10-Q for the three months ended June 30, 2005. It will then need to allow adequate time for its independent auditors to review such financial statements and periodic reports prior to their filing with the Securities and Exchange Commission. About Savient Pharmaceuticals, Inc. Based in East Brunswick, New Jersey, Savient Pharmaceuticals, Inc. is a specialty pharmaceutical company dedicated to developing, manufacturing and marketing novel therapeutic products that address unmet medical needs. The Company's lead product development candidate, Puricase(R), for the treatment of refractory gout has reported positive Phase 1 and 2 clinical data. Savient's experienced management team is committed to advancing its pipeline and expanding its product portfolio by in-licensing late stage compounds and exploring co-promotion and co-development opportunities that fit the Company's expertise in specialty pharmaceuticals and initial focus in rheumatology. The Company's operations also include a wholly-owned U.K. subsidiary, Rosemont Pharmaceuticals Ltd., which develops, manufactures and markets liquid formulations of prescription pharmaceutical products. Rosemont's product portfolio includes over 90 liquid formulations primarily targeting the geriatric population. Further information on the Company can be accessed by visiting www.savientpharma.com. Safe Harbor Statement This news release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this report regarding the Company's strategy, expected future financial position, discovery and development of products, strategic alliances, competitive position, plans and objectives of management are forward-looking statements. Words such as "anticipate," "believe," "estimate," "expect," "intend," "plan," "will" and other similar expressions help identify forward-looking statements, although not all forward-looking statements contain these identifying words. In particular, statements as to the possible outcome of the hearing before the Panel, the possible continued listing of the Company's common stock on The Nasdaq Stock Market, the timing of the filing of the Company's June 30, 2005 Form 10-Q, whether any amendments to any prior filing are necessary, the timing of the filing of any such amendments, and the amounts of any reductions in or additions to the Company's reserve for product returns and inventory and increase in reported sales are forward-looking statements. These forward-looking statements involve substantial risks and uncertainties and are based on current expectations, assumptions, estimates and projections about the Company's business and the biopharmaceutical and specialty pharmaceutical industries in which the Company operates. Such risks and uncertainties include, but are not limited to, delisting of the Company's common stock from The Nasdaq Stock Market, delay or failure in developing Prosaptide(TM), Puricase(R) and other product candidates; difficulties of expanding the Company's product portfolio through in-licensing; introduction of generic competition for Oxandrin(R); fluctuations in buying patterns of wholesalers; potential future returns of Oxandrin or other products; our continuing to incur substantial net losses for the foreseeable future; difficulties in obtaining financing; potential development of alternative technologies or more effective products by competitors; reliance on third-parties to manufacture, market and distribute many of the Company's products; economic, political and other risks associated with foreign operations; risks of maintaining protection for the Company's intellectual property; risks of an adverse determination in on-going or future intellectual property litigation; and risks associated with stringent government regulation of the biopharmaceutical and specialty pharmaceutical industries. The Company may not actually achieve the plans, intentions or expectations disclosed in its forward-looking statements, and you should not place undue reliance on the Company's forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements that the Company makes. The Company's forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures or investments that the Company may make. The Company does not assume any obligation to update any forward-looking statements.