April 2, 2004

Recognition of McGuff Compounding Pharmacy Services, Inc. (McGuff CPS) as a quality supplier of compounded pharmaceutical products continues to grow. Sales of sterile compounded prescription medications, Investigational New Drug (IND) products and support of hospital contracts have provided the rationale for McGuff CPS to grow once again.

McGuff CPS is expanding its physical size by thirty percent to accommodate internal requirements to expand our laboratory, finished goods area and pharmaceutical engineering offices. California State Board of Pharmacy regulations require that the expansion to the pharmacy be “contiguous” and support operations may be non-contiguous.

Our contiguous expansion includes more room for:

• Finished goods (improved workspaces including pharmacist workstations and a new reference library)

• Pharmaceutical engineering offices (all of our engineers are now together)

• Materials storage (improved workflow)

Our non-contiguous expansion includes:

• More room for laboratory analytical equipment, test samples and supplies

• Separation of “wet” and “dry” laboratory areas

• A new engineering space for improved equipment validation and repair

At a recent celebration for 25 years of service for the parent company of McGuff CPS, President and CEO Ronald M. McGuff stated, “McGuff CPS will continue to invest our facilities and infrastructure to meet the evolving needs of our diverse customer base, quality standards and regulatory environment. I am proud of our facility, equipment and staff and encourage physicians and pharmacists to tour our facility to find out for themselves what a great job we do here.”