Noven Announces Record Financial Results

Reports Fourth Consecutive Quarter of Increased Profits;

Second Quarter Net Income Reaches $.05 Per Share;

Revenues for First Six Months Increase 67% Over Prior Year Period;

-- Noven Pharmaceuticals, Inc. (NASDAQ:NOVN) today announced record financial results for the quarter and the six-month period ended June 30, 1999.

For the 1999 second quarter, Noven reported net income of $959,000, or $.05 per share, versus a net loss of $1,557,000, or $.08 per share, for the second quarter of 1998. Second quarter net income was the highest quarterly net income ever reported by Noven. Revenues for the second quarter of 1999 were $7,493,000 versus $6,394,000 for the same quarter in 1998, an increase of 17%.

For the six months ended June 30, 1999, net income was $1,674,000, or $.08 per share, versus a net loss of $4,834,000, or $.24 per share, for the comparable period in 1998. Net income for the first half was the highest net income ever reported by Noven for a six-month period. Revenues for the first six months of 1999 were $14,970,000 versus $8,942,000 for the comparable six months in 1998, an increase of 67%.

Noven's cash and short term equivalents at June 30, 1999 were $7,293,000, up $1,782,000 from the $5,511,000 balance reported at March 31, 1999.

"Quarter by quarter, Noven is steadily enhancing its reputation for dependable financial growth and corporate progress, and the 1999 second quarter is no exception," said Robert C. Strauss, Noven's President and Chief Executive Officer. "This quarter reflects record net income, and marks our sixth consecutive quarter of improving results and fourth consecutive quarter of profits. Over the last year and a half, we have consistently received product approvals when we said we would receive them, launched new products when we said we would launch them, and delivered financial results that met or exceeded expectations. We expect to continue to build this growing track record of progress and credibility as we proceed through the second half of the year."

A telephone conference among management and equity analysts relating to Noven's financial results will be broadcast live via the Internet at www.noven.com beginning at 10:00 a.m. Eastern time. Thereafter, a rebroadcast of the call will be accessible at the same site. In addition, a taped replay of the conference call will be available by telephone from August 5 at 12:00 noon Eastern time to August 7 at 11:59 p.m. by calling 800/475-6701 (from within the U.S.) or 320/365-3844 (from outside the U.S.) and entering the access code 463481.

Noven Pharmaceuticals, Inc., headquartered in Miami, Florida, is a leader in the development of transdermal and transmucosal drug delivery technologies. Together with Novartis Pharmaceuticals, Noven also owns a women's health company called Novogyne Pharmaceuticals. Noven's existing products include advanced estrogen transdermal delivery systems (Vivelle(R) and Vivelle-Dot(TM), licensed to Novogyne, and Menorest, licensed to Rhone-Poulenc Rorer); combination estrogen/progestin transdermal delivery systems (CombiPatch(TM) and Estalis(R), licensed to Rhone-Poulenc Rorer); and the first transmucosal patch delivery system approved by the FDA (DentiPatch(R)). With a range of additional products in development, including a transdermal methylphenidate patch for Attention Deficit Hyperactivity Disorder, Noven is committed to becoming the world's premier developer, manufacturer and marketer of transdermal and transmucosal drug delivery systems. For additional information on Noven, visit the company's Web site at www.noven.com.

Forward looking statements contained in this release are qualified by and subject to the risks and uncertainties specified by Noven in its most recent filings with the Securities and Exchange Commission, including the risk that CombiPatch(TM), Vivelle(R) and/or Vivelle-Dot(TM) orders may be less than expected and negatively impact future results.


NOVEN PHARMACEUTICALS INC.

Statement of Operations Data:
(amounts in thousands except
per share amounts)
                             Three Months Ended    Six Months Ended
                                  June 30,              June 30,
                              1999        1998      1999        1998
Revenues:
 Product sales             $  7,437   $  6,338    $ 14,857   $  8,827
 License revenue                 56         56         113        115
 Total revenues               7,493      6,394      14,970      8,942

Expenses:
 Cost of products sold        3,361      3,195       6,605      4,227
 Research and development     1,485      1,981       3,142      3,982
 Marketing, general &
  administrative              1,743      2,861       3,647      5,843
                           --------   --------    --------   --------
 Total expenses               6,589      8,037      13,394     14,052

Interest income                  64         86         116        276
                           --------   --------    --------   --------
Income (loss) before taxes      968     (1,557)      1,692     (4,834)

Provision for income taxes        9         --          18         --
                           --------   --------    --------   --------
Net income (loss)          $    959   $ (1,557)   $  1,674   $ (4,834)
                           ========   ========    ========   ========
Net income (loss) per 
 share                     $   0.05   $  (0.08)   $   0.08   $  (0.24)
                           ========   ========    ========   ========
Weighted average of common 
 shares outstanding:
  Basic:                     21,460     20,605      21,496   $ 20,541
                           ========   ========    ========   ========
  Diluted:                   21,638     20,605      21,673   $ 20,541
                           ========   ========    ========   ========


Balance Sheet Data:                        June 30, 1999
                                         -----------------

Cash and short-term equivalents              $  7,293
Working capital                              $ 12,297
Net property and equipment                   $ 15,343
Investment in Vivelle Ventures               $  6,878
Total assets                                 $ 42,520
Deferred license revenue                     $  5,531
Stockholders' equity                         $ 30,409

Contact:
James B. Messiry
Chief Financial Officer
305-253-1916