aaiPharma Receives Court Approval of Pharmaceuticals Division Sale

aaiPharma Inc. (PINK SHEETS:AAIIQ) announced that the U.S. Bankruptcy Court for the District of Delaware had today approved the bid of Xanodyne Pharmaceuticals, Inc. to acquire substantially all of the assets of aaiPharma’s Pharmaceuticals Division. Xanodyne’s bid provides for a cash purchase price of $209.25 million, which is approximately $40 million higher than Xanodyne’s original “stalking horse” offer that aaiPharma had announced as part of its chapter 11 bankruptcy filing on May 10, 2005. In addition, and as part of its bid, Xanodyne committed to purchase up to $30 million of services to be provided by aaiPharma’s Development Services division over the next three years, subject to certain conditions.

About aaiPharma

aaiPharma Inc. is a science-based company with corporate headquarters in Wilmington, North Carolina with over 25 years experience in drug development. The company also sells branded pharmaceutical products, including the Darvon(R) and Darvocet(R) product lines, primarily in the area of pain management. For more information on the Company, including its product development organization AAI Development Services, please visit aaiPharma’s website at www.aaipharma.com.