Elite Pharmaceuticals, Inc. ("EPI"), the registrant, is the sole owner of Elite Laboratories, Inc. ("ELI"). EPI and ELI may be referred to collectively in this report as "Elite" or "the Company".

Business Development --------------------

EPI was incorporated in the State of Delaware on October 1, 1997. EPI's predecessor, Prologica International, Inc. ("Prologica"), was incorporated in the State of Pennsylvania on April 20, 1984. From the time of its incorporation, and the completion of its initial public offering in August 1998, until the date of its merger with EPI, Prologica engaged in no business other than searching for suitable acquisitions. Except...