Interpharm Announces $10 Million Capital Financing

Interpharm Holdings, Inc. (Amex: IPA), a manufacturer
and distributor of generic pharmaceutical drugs, today announced it
has entered into a stock purchase agreement with Tullis-Dickerson
Capital Focus III, L.P. ("Tullis-Dickerson"), in which
Tullis-Dickerson has agreed to purchase $10 million of convertible
preferred stock upon the satisfaction of the conditions to closing set
forth in the agreement. A full description of the Tullis-Dickerson
stock purchase agreement, as well as a copy of the agreement, are
provided in a Current Report on Form 8-K filed by Interpharm with the
SEC on May 19, 2006.
   Cameron Reid, Chief Executive Officer of Interpharm Holdings,
Inc., stated: "Securing this $10 million capital funding is the final
component of our planned financing to fund our expansion plan.
Tullis-Dickerson took the time to understand our business and our plan
and recognized the value in Interpharm and the quality of the
Interpharm team. Tullis-Dickerson was the obvious choice for a long
term investment partner."
   Rick Miller, a General Partner of Tullis-Dickerson Capital Focus
III, L.P., commented: "With this financing, Interpharm is very well
positioned to execute their business plan to expand their generic
business. We are excited to be working with the outstanding management
team to create additional shareholder value."

   About Interpharm Holdings, Inc.

   Interpharm currently develops, manufactures and distributes
generic prescription strength and over-the-counter drugs. Interpharm
will continue to focus on growing organically through internal product
development and leveraging its strength in efficient and cost
effective manufacturing. In addition, Interpharm will also continue to
seek consummation of mutually beneficial strategic alliances and
collaborations. Headquartered on Long Island, New York, Interpharm
presently employs nearly 500 people.

   About Tullis-Dickerson

   Tullis-Dickerson provides venture capital to health care companies
at all stages of growth. Founded in 1986, the firm has raised four
health care venture capital funds totaling approximately $400 million.

   FORWARD-LOOKING STATEMENTS

   Statements made in this news release, contain forward-looking
statements concerning Interpharm's business and products involving
risks and uncertainties that could cause actual results to differ
materially from those reflected in the forward-looking statements. The
actual results may differ materially depending on a number of risk
factors including, but not limited to, the following: general economic
and business conditions, development, shipment, market acceptance, and
additional competition from existing and new competitors, changes in
technology, and various other factors beyond Interpharm's control.
Other risks inherent in Interpharm's business are set forth in its
filings with the SEC, including, but not limited to, its Form 10-K,
filed on September 28, 2005 and Forms 10-Q filed on November 21, 2005,
February 14, 2006 and May 16, 2006.
   All information in this release is as of May 18, 2006. Interpharm
undertakes no duty to update any forward-looking statements to conform
the release to actual results or changes in its circumstances or
expectations after the date of this release.