Crystal Equity Research Initiates Coverage of Hi-Tech Pharmacal Company, Inc.

Crystal Equity Research, LLC initiated coverage of HI-TECH PHARMACAL COMPANY, INC. (HITK: Nasdaq) with a Buy rating based on Hi-Tech Pharmacal’s building market position and healthy cash flow generation. The Company appears to have found the right level of specialization and focus to capture market share in the highly competitive generic drug space. The full report on Hi-Tech Pharmacal is available at www.crystalequityresearch.com.

New York, NY (PRWEB) March 25, 2006 -- Crystal Equity Research, LLC initiated coverage of HI-TECH PHARMACAL COMPANY, INC. (HITK: Nasdaq) with a Buy rating based on Hi-Tech Pharmacal’s building market position and healthy cash flow generation. The Company appears to have found the right level of specialization and focus to capture market share in the highly competitive generic drug space. The full report on Hi-Tech Pharmacal is available at www.crystalequityresearch.com. The 21-page report includes a detailed earnings model and analysis of financial results, a discussion of accounting topics, and comments on management, governance, products, markets and competition.

HI-TECH PHARMACAL is a specialty manufacturer and marketer of generic and branded pharmaceutical products. The Company focuses on hard-to-produce liquid products as well as suspension and semi-solid therapies. The Company recently expanded its narcotic and sterile production facilities located in Amityville, New York. Consistent sequential growth in revenue and profits are the testament to Hi-Tech success as a niche player in the highly-competitive generic pharmaceuticals market place. Trailing 12-month sales were $77.5 million at the end of January 2006 compared to $29.6 million in fiscal year 2001 ending April 2001. Over 70% of is generic products, which represent 85% of total revenue, are first or second in market place. Hi-Tech’s formula is based on efforts to be early to market and a focus on products for which few competitors are expected due to high barriers to entry such as manufacturing capability. Investment in new products either through in-licensing or internal development is facilitated by the Company’s strong financial position with no debt and substantial cash balances.

CRYSTAL EQUITY RESEARCH, LLC is an impartial research resource, providing coverage of small capitalization companies in selected industries. The firm provides research reports by subscription to institutional investors, offers research consulting services to financial professionals and offers an issuer sponsored research program for qualifying companies. Additional information is available at the firm’s web site at www.crystalequityresearch.com. Crystal Equity Research is a Registered Investment Advisor with the State of New York.

WHAT’S IN IT FOR ME? Purchasers of this report can gain insight into the factors that could drive Hi-Tech revenue in the coming years, how Hi-Tech is positioned against its nearest competitors, and how its stock is valued in comparison to its peer group of generic drug manufacturers. List of tables, charts and exhibits:

    Table I:    Hi-Tech’s Top-Selling Generic Products

    Table II:    International Generic Drug Markets and Penetration

    Table III:    Frequent Filers – Firms with Most Generic Drug Approvals in 2004 and 2005

Table IV:    Frequent Filers - Firms with Most Liquid and Topical Approvals – 2004 to 2005

Table V:    Selected Mergers and Acquisitions in World Generic Drug Industry

Table VI:    Hi-Tech Insider and Significant Ownership

Table VII:    Stock-based Compensation Accounting

Table VIII:    Corporate Governance

Table IX:    Summary Historical and Projected Sales and EPS

Table X:    Flonase Unit and Dollar Sales

Table XI:    Hi-Tech’s Potential in the Flonase?Fluticasone Propionate Market

Table XII:    Historic and Projected Sales and Earnings

Table XIII:    Peer Group Comparison - Generic Drug Developers

Chart I:    Hi-Tech Sales Mix by Category in Fiscal Year 2005

Chart II:    Generic Substitution Rates

Chart III:    Generic Drug ANDA Submissions and Approvals

Chart IV:    Hi-Tech Historic and Net Income

Chart V:    Hi-Tech Quarter Sales Trends

Exhibit I:    Corporate History and Stock Price Movement

Disclaimer: This publication is neither an offer to sell nor a solicitation to buy any securities mentioned herein. The information contained herein is based on data obtained from recognized sources that are believed to be reliable. Crystal Equity Research, LLC has not independently verified the facts, assumptions and estimates contained in the report. Accordingly, no representation or warranty, expressed or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information and opinions contained in the report. The information contained in the report is not and does not purport to be a complete analysis of every material fact respecting any company, industry, or security.

Most of the companies followed by Crystal Equity Research, LLC are emerging growth companies whose securities typically involve a higher degree of risk and more volatility than the securities of more established companies. For these and other reasons, the investments discussed or recommended in this report may be unsuitable for investors depending upon their specific investment objectives and financial position. Investors should always research companies and securities before making any investments.

Past performance does not guarantee future results. This report contains forward looking statements, which involve risks and uncertainties. Actual results may differ significantly from the results described in the forward-looking statements.

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