Cephalon Reports Second Quarter Financial Results

West Chester, PA - August 7, 2001

Cephalon, Inc., an international biopharmaceutical company dedicated to the discovery, development and marketing of products to treat sleep disorders, neurological disorders, cancer and pain, today reported product sales of $44.3 million and a loss per share of $0.13 for the second quarter ended June 30, 2001.

Cephalon's main product is Provigil®, used for the treatment of excessive daytime sleepiness in patients with narcolepsy.

For the three months ended June 30, 2001, sales of PROVIGIL® (modafinil) Tablets [C-IV], ACTIQ® and GABITRIL®, were $29.8 million, $9.8 million and $4.7 million respectively. In addition to product sales, Cephalon recorded other revenues of $11.9 million in the second quarter of 2001 compared to $5.0 million in the same quarter last year. Total revenues were $56.2 million in the second quarter of 2001 compared to $23.4 million for the second quarter of 2000.

Cephalon's EBITDA was a loss of $1.3 million in the second quarter of 2001 compared to a loss of $18.0 million in the second quarter of 2000.

The company's loss applicable to common shares for the second quarter of 2001 was $6.3 million or $.13 per share and a loss of $.39 per share for the second quarter of 2000.

Cephalon's second quarter 2001 costs and expenses increased to $57.5 million from $41.4 million in the second quarter of 2000. This increase is attributable to higher costs of product sales related to higher sales volume and to expenses associated with the continuing development and commercialization of the company's three proprietary products, PROVIGIL, ACTIQ, and GABITRIL.

Cephalon expects that sales of PROVIGIL, ACTIQ and GABITRIL in the third quarter ended September 30, 2001 will total approximately $53.0 million and anticipates a profit applicable to common shares of $0.05 per share. The company continues to anticipate that revenue from the sale of these products in 2001 will be at least $200 million and that it will earn approximately $0.10 per share for the year.