NOVEN EARNS MILESTONE PAYMENT UNDER DEVELOPMENT COLLABORATION WITH P&G PHARMACEUTICALS

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Miami, FL, January 5, 2004 -- Noven Pharmaceuticals, Inc. (NASDAQ: NOVN) today announced that it has earned a $500,000 cash payment for attaining a development milestone under its product development agreement with P&G Pharmaceuticals, Inc. (P&GP), a subsidiary of The Procter & Gamble Company (NYSE: PG). Noven expects to report the payment as license and contract revenues in the fourth quarter of 2003.

Under the agreement, signed in April 2003, Noven is developing prescription transdermal drug delivery systems for P&GP. The parties have not disclosed the compounds or therapeutic category addressed by the patches under development.

About Noven
Noven Pharmaceuticals, Inc., headquartered in Miami, Florida, is a leading developer of advanced transdermal drug delivery technologies and prescription transdermal products. Noven’s products include advanced estrogen transdermal delivery systems (including Vivelle-Dot^®, licensed to Novogyne Pharmaceuticals, and Estradot^®, licensed to Novartis Pharma AG) and combination estrogen/progestin transdermal delivery systems (including CombiPatch^®, licensed to Novogyne, and Estalis^®, licensed to Novartis Pharma AG). With a range of additional products in development, Noven is committed to remaining at the forefront of transdermal drug delivery. For further information on Noven, including licensing opportunities, visit www.noven.com.

Except for historical information contained herein, the matters discussed in this press release contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that involve substantial risks and uncertainties. When used in this press release the word "expects," and similar expressions identify certain of such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the current expectations of Noven and are subject to a number of risks and uncertainties that are subject to change based on factors which are, in many instances, beyond Noven’s control, including but not limited to risks and uncertainties associated with: economic, competitive, regulatory and other factors affecting Noven and its operations, markets, products and services; the possibility that the method of accounting for the payment received from P&GP could change under certain circumstances; the possibility that the P&GP development programs may not proceed on schedule or as expected, that Noven may be unsuccessful in achieving future milestone objectives and may not receive any further milestone payments, and that the products under development may not ultimately be approved or commercialized; and Noven’s success at managing the risks relating to the foregoing. In addition to the risks and factors identified above, reference is also made to the other risks and factors detailed in reports filed by the Company with the Securities and Exchange Commission. Noven cautions that the foregoing list of factors is not exhaustive.

Product Licensing Inquiries:
Pavan Handa
Vice President – Business Development
Noven Pharmaceuticals, Inc.
(305) 964-3330

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Copyright ©  2004 Noven Pharmaceuticals, Inc. All rights reserved.