Highlighted by Significant Advances And Investments in the Development Pipeline

King Pharmaceuticals, Inc. (NYSE:KG) announced today that total revenues were $397 million during the second quarter ended June 30, 2008, compared to $543 million in the second quarter of 2007. This decrease was primarily due to the market entry of generic substitutes for ALTACE^® (ramipril). Reported net earnings equaled $43 million and diluted earnings per share equaled $0.18 during the second quarter of 2008, compared to net earnings of $65 million and diluted earnings per share of $0.26 in the second quarter of the prior year. Excluding special items, net earnings equaled $73 million and diluted earnings per share equaled $0.30 during the second quarter ended June 30, 2008, reflecting a record high research and development investment of $49 million, which included development milestones of $21 million. Excluding special items, in the second quarter of 2007 net earnings equaled $117 million and diluted earnings per share equaled $0.48.

Brian A. Markison, Chairman, President and Chief Executive Officer of King, stated, “We are particularly pleased by the AVINZA^® total prescription growth of 5.2% versus the same quarter of last year and the continued strong performance of THROMBIN-JMI^®.”

Mr. Markison continued, “More importantly, we remain on track to attain our goal of three New Drug Application (NDA) submissions to the U.S. Food and Drug Administration (FDA) by the end of this year. Once approved, these new products have the potential to provide significant value for patients, society and our shareholders.”

King, through its partner, Pain Therapeutics, submitted a New Drug Application for REMOXY^® (long-acting oral oxycodone) to the FDA in June. Also in June, King and Acura Pharmaceuticals reported positive top-line data from the pivotal Phase III clinical trial for ACUROX^™ (short-acting oral oxycodone HCl, niacin, and other functional inactive ingredients). Based on these positive results, King and Acura plan to submit the NDA for ACUROX^™ by the end of this year. King also expects to file an NDA for CORVUE™ (binodenoson, a pharmacologic stress imaging agent for injection) during that same period.

As of June 30, 2008, the Company’s cash and cash equivalents totaled approximately $1.1 billion. During the second quarter of 2008, the Company generated cash flow from operations of approximately $138 million.

In addition, the fair value of King’s total investments in debt securities equaled approximately $432 million as of the end of the second quarter of 2008. The Company has classified its investments in debt securities associated with municipal bonds as current assets as of June 30, 2008, because the Company believes that it is reasonable to expect that these securities will convert to cash within one year. The Company has classified its investments in debt securities associated with student loans, which as of June 30, 2008 had a fair value of $334 million, as long-term assets.

Net revenue from branded pharmaceuticals totaled $316 million for the second quarter of 2008, compared to $467 million during the second quarter of 2007.

Net sales of SKELAXIN^® (metaxalone) totaled $107 million during the second quarter of 2008, compared to $108 million during the same period of the prior year.

THROMBIN-JMI^® (thrombin, topical, bovine, USP) net sales totaled $64 million during the second quarter of 2008, compared to $65 million during the second quarter of 2007.

Net sales of AVINZA^® (morphine sulfate extended release) totaled $35 million during each of the second quarters of 2008 and 2007.

LEVOXYL^® (levothyroxine sodium tablets, USP) net sales totaled $20 million during the second quarter ended June 30, 2008, compared to $26 million during the second quarter of 2007.

ALTACE^® net sales totaled $44 million during the second quarter of 2008, compared to $163 million during the second quarter of 2007.

King’s Meridian Auto-Injector business contributed revenue of $55 million during the second quarter of 2008, compared to $51 million during the same period of the prior year.

Royalty revenues, derived primarily from ADENOSCAN^® (adenosine), totaled $24 million during the second quarter ended June 30, 2008, compared to $20 million during the second quarter of last year.

About REMOXY^®

REMOXY^® is an innovative long-acting, controlled release formulation of oxycodone for moderate to severe chronic pain that is currently in development. REMOXY^® uses extraction resistant technology (XRT™), a unique physical barrier that is designed to provide controlled pain relief and resist common methods used to extract the opioid more rapidly than intended as seen with currently available products. Common methods used to cause a rapid extraction of the opioid include crushing, chewing, or dissolution in alcohol. These methods are typically used to cause failure of the controlled release dosage form, resulting in ‘dose dumping’ of oxycodone, or the immediate release of the active drug. If approved, the Companies believe REMOXY^® could be the first oxycodone on the market that has the potential to reduce the risk of misuse and abuse. REMOXY^® is a proposed brand name that is subject to FDA approval.

About ACUROX™ Tablets

ACUROX™ Tablets, an investigational drug, is an orally administered immediate-release tablet containing oxycodone HCl as an active analgesic ingredient, niacin as an active ingredient in subtherapeutic amounts, and a proprietary composition of functional inactive ingredients. ACUROX™ Tablets are intended to relieve moderate to severe pain while resisting or deterring common methods of prescription drug misuse and abuse, including intravenous injection of dissolved tablets, nasal snorting of crushed tablets and intentional swallowing of excessive numbers of tablets. ACUROX™ is a proposed brand name subject to FDA approval.

Webcast Information

King will conduct a webcast today which may include discussion of the Company’s marketed products, pipeline, strategy for growth, financial results and expectations, and other matters relating to its business. Interested persons may listen to the webcast on Thursday, August 7, 2008, at 11:00 a.m., E.D.T., by clicking the following link to register and then joining the live event with the same URL:

http://www.kingpharm.com/web_casts.asp

If you are unable to participate during the live event, the webcast will be archived on King’s web site at the same link for not less than 30 days after the webcast.

About Special Items

Under Generally Accepted Accounting Principles (“GAAP”), reported “net earnings” and “diluted earnings per share” include special items. In addition to the reported results determined in accordance with GAAP, King provides its net earnings and diluted earnings per share results for the quarters and six months ended June 30, 2008 and 2007, excluding special items. These non-GAAP financial measures exclude special items which are those particular material income or expense items that King considers to be unrelated to the Company’s ongoing, underlying business, non-recurring, or not generally predictable. Such items include, but are not limited to, merger and restructuring expenses; non-capitalized expenses associated with acquisitions, such as in-process research and development charges and inventory valuation adjustment charges; charges resulting from the early extinguishment of debt; asset impairment charges; expenses of drug recalls; and gains and losses resulting from the divestiture of assets. King believes the identification of special items enhances the analysis of the Company’s ongoing, underlying business and the analysis of the Company’s financial results when comparing those results to that of a previous or subsequent like period. However, it should be noted that the determination of whether to classify an item as a special item involves judgments by King’s management. A reconciliation of non-GAAP financial measures referenced herein and King’s reported financial results determined in accordance with GAAP is provided below.

About King Pharmaceuticals, Inc.

King, headquartered in Bristol, Tennessee, is a vertically integrated branded pharmaceutical company. King, an S&P 500 Index company, seeks to capitalize on opportunities in the pharmaceutical industry through the development, including through in-licensing arrangements and acquisitions, of novel branded prescription pharmaceutical products and technologies that complement the Company’s focus in specialty-driven markets, particularly neuroscience, hospital and acute care. King strives to be a leader and partner of choice in bringing innovative, clinically-differentiated medicines and technologies to market.

Forward-looking Statements

This release contains forward-looking statements which reflect management’s current views of future events and operations, including, but not limited to, statements pertaining to the expected timetable for REMOXY^®, ACUROX^™ Tablets and CORVUE™ NDA submissions with the FDA and the potential of these product to add value once approved; statements pertaining to the expectation that the Company’s investments in debt securities associated with municipal bonds may convert to cash within one year; and statements pertaining to the Company’s planned webcast to discuss its second-quarter 2008 results. These forward-looking statements involve certain significant risks and uncertainties, and actual results may differ materially from the forward-looking statements. Some important factors which may cause actual results to differ materially from the forward-looking statements include dependence on the future level of demand for and net sales of King’s branded pharmaceutical products; dependence on King’s ability to successfully market its branded pharmaceutical products; dependence on King’s ability to increase its presence in its targeted, specialty-driven markets; dependence on the Company’s ability to continue to advance the development of its pipeline products as planned; dependence on the high cost and uncertainty of research, clinical trials, and other development activities involving pharmaceutical products in which King has an interest; dependence on whether the NDAs for REMOXY^®, ACUROX^™ Tablets and CORVUE™ are submitted to the FDA during the planned timeframe; dependence on the unpredictability of the duration and results of the FDA’s review of Investigational New Drug applications (“IND”), NDAs, and Abbreviated New Drug Applications (“ANDA”) and/or the review of other regulatory agencies worldwide that relate to projects in King’s development pipeline; dependence on the extent to which continued instability in the credit markets affects King’s ability to liquidate its investments in debt securities associated with municipal bonds; dependence on the availability and cost of raw materials; dependence on no material interruptions in supply by contract manufacturers of King’s products; dependence on the potential effect on sales of the Company’s existing branded pharmaceutical products as a result of the potential development and approval of a generic substitute for any such product or other new competitive products; dependence on the potential effect of future acquisitions and other transactions pursuant to the Company’s growth strategy; dependence on King’s compliance with FDA and other government regulations that relate to the Company’s business; dependence on King’s ability to conduct its webcast as currently planned on August 7, 2008; dependence on changes in general economic and business conditions; changes in current pricing levels; changes in federal and state laws and regulations; changes in competition; unexpected changes in technologies and technological advances; and manufacturing capacity constraints. Other important factors that may cause actual results to differ materially from the forward-looking statements are discussed in the “Risk Factors” section and other sections of King’s Form 10-K for the year ended December 31, 2007 and Form 10-Q for the quarter ended March 31, 2008, which are on file with the U.S. Securities and Exchange Commission. King does not undertake to publicly update or revise any of its forward-looking statements even if experience or future changes show that the indicated results or events will not be realized.