Interpharm Clarifies Comparative Financial History

Interpharm Clarifies Comparative Financial History 


COMMACK, N.Y., Feb. 26  /PRNewswire-FirstCall/ -- Interpharm Holdings, Inc.
(Amex: IPA; the "Company") has received a number of inquiries from investors who
have expressed confusion regarding the Company's historical financial
information for periods prior to June 30, 2003.  The Company's historical
information for periods prior to June 30, 2003, as presented in Yahoo! and other
on-line sources, is that of the Company's predecessor, Atec Group, Inc., and not
the Company.

On May 30, 2003, Atec Group, Inc., which was in the computer systems integration
business, sold its business to BAAR Group, Inc.  Simultaneous with the
disposition of its computer business, Atec Group, Inc. acquired Interpharm, Inc.
which is engaged in the business of developing, manufacturing and marketing
generic prescription strength and over-the-counter pharmaceutical products, and
changed its name to Interpharm Holdings, Inc. Information on these transactions,
and other information, such as certain historical financial information about
Interpharm, Inc., was filed with the Securities and Exchange Commission in Atec
Group, Inc.'s definitive proxy statement, on May 2, 2003 (the "Proxy
Statement").  The Company's reports filed with the Securities and Exchange
Commission after May 30, 2003, reflect the current and historical operations of
Interpharm Holdings, Inc.  Reports filed by Atec Group, Inc. prior to May 30,
2003, reflect the operations of Atec Group, Inc., with the exception of the
Proxy Statement.

Investors and others wishing to obtain comparative financial summaries, or any
other information regarding the Company, should not rely on any sources other
than press releases issued by the Company, filings with theSecurities and
Exchange Commission after May 30, 2003 and the Proxy Statement.  The Company's
reports filed with the Securities and Exchange Commission are available at the
SEC's website, http://www.sec.gov/, and through the Company's website,
http://www.interpharminc.com/.  Copies of reports, as well as press releases,
will be provided free of charge upon request made by calling 631-543-2800,
extension 404.

For the convenience of our investors, the Company presents below its historical
financial information for the three-month periods ended December 31, 2003,
September 30, 2003, June 30, 2003, and March 31, 2003.

                                    Interpharm Holdings, Inc.
                                      Statements of Income
             Unaudited
                                  For the Quarterly periods Ended

                       31-Dec-03    30-Sep-03    30-Jun-03    31-Mar-03

  Total Sales, net   $11,706,231   $6,875,348   $7,762,436    7,191,002
 Cost of Sales        9,087,956    5,443,518    6,390,110    5,824,712

  Gross Profit         2,618,275    1,431,830    1,372,326    1,366,290

  Operating Expenses
   Selling, general
    and administrative   860,060    1,033,775      771,893      502,552
   Related party
    rent expense          18,000       18,000       18,000       18,000
   Research and
    development          154,035       35,000      142,151       43,450
   Total Operating
    Expenses           1,032,095    1,086,775      932,044      564,002

  Operating Income     1,586,180      345,055      440,282      802,288

  Other Income (Expenses)
   Related party
    interest expense         -            -        (28,313)     (40,812)
   Interest income         2,446        2,759        8,166          -
   Interest expense       (4,852)      (6,147)     (34,848)     (28,451)
  Total Other Expenses    (2,406)      (3,388)     (54,995)     (69,263)

  Income Before
   Income Taxes        1,583,774      341,667      385,287     733,025

  Income Taxes           559,677      114,228      142,217      252,450


  Net Income          $1,024,097     $227,439     $243,070     $480,575



                                Interpharm Holdings, Inc. (IPA)
                              Consolidated Balance Sheet As At
                        31-Dec-03    30-Sep-03    30-Jun-03    31-Mar-03
                       (Unaudited)  (Unaudited)    (Audited)  (Unaudited)
  Assets
  Current Assets
   Cash and Cash
    Equivalents       $ 1,503,936  $ 2,431,577  $ 2,336,203    $ 218,697
   Short Term
    Investments            61,199       49,642       48,462       41,328
   Net Receivables      7,032,571    4,084,579    4,930,109    5,043,363
   Notes Receivable             -            -   1,000,000            -
   Inventories          5,927,631    6,869,436    4,583,205    3,293,917
   Other Current Assets   519,095      603,830      224,149      116,978
   Deferred Tax Assets     23,500       23,500       23,500       60,500
  Total Current
   Assets              15,067,932   14,062,564   13,145,628    8,774,783

  Notes Receivable           -            -         524,092         -
  Property and
   Equipment            5,590,400    5,013,811    4,085,302    3,392,113
  Deferred Tax Assets   2,537,900    2,537,900    2,537,900         -
  Other Assets            961,379      262,260       45,873       11,379
  Deferred Acquisition
   Costs                     -            -            -         103,564
   Total Assets       $24,157,611  $21,876,535  $20,338,795  $12,281,839

  Liabilities and Stockholders'
  Current Liabilities
   Accounts Payable,
    Accrued Expenses and
    Other Liabilities $ 6,542,799    5,852,615   $5,314,341  $ 3,543,632
  Lines of Credit         424,847  424,847    2,064,793    2,064,793
  Current Maturities
   of Long-Term Debt         -            -         224,241      237,482
  Due to Related Party       -            -            -         345,563
  Total Current
   Liabilities          6,967,646    6,277,462    7,603,375    6,191,470

  Long-Term Debt,
   less current
   maturities               -            -          237,521      289,317
  Other liabilities       29,535       29,535        29,535         -
  Due to Related Party      -     -            -        3,000,000
  Total Liabilities    6,997,181    6,306,997     7,870,431    9,480,787

  Stockholders' Equity
  Preferred Stocks       350,971      350,971      352,021       20,504
  Common Stock           180,230      180,181156,717       61,512
  Retained Earnings    1,921,214      897,117      669,678      426,607
  Treasury Stock        (797,868)    (797,868)    (797,868)        -
  Additional
   Paid-In-Capital    15,481,567   14,926,378   12,076,237    2,287,984
Other Stockholders'
   Equity                 24,316       12,759       11,579        4,445
  Total Stockholders'
   Equity             17,160,430   15,569,538   12,468,364    2,801,052

  Total Liabilities
   and Stockholders'
   equity            $24,157,611  $21,876,535  $20,338,795  $12,281,839




For further information, please contact George Aronson, who joined the Company
as its new Chief Financial Officer as of January, 2003.  Mr. Aronson has over
twenty years of experience as a CPA, is licensed by the state of New York and is
a member of the AICPA. Prior to joining the Company, Mr. Aronson served nine
years as the Chief Financial Officer of Direct Insite Corp., a publicly traded
company.  James Charles, the Company's former Chief Financial Officer, will be
assisting Mr. Aronson and the Company in a transitional role.

In issuing this press release, the Company does not purport to be aware of all,
or for that matter, any other inaccurate information relating to the Company
released by any third-party, and hereby disclaims any duty to correct any such
inaccurate information that may exist or may be released by third- parties in
the future

ABOUT INTERPHARM

Interpharm is in the business of developing, manufacturing and distributing
generic pharmaceutical products in the United States. The Company currently
markets 19 products, representing various dosage strengths for 11 distinct drugs
that it manufactures. Since June 30, 2003, the Company has been manufacturing
Atenolol and Allopurinol for URL / Mutual. Interpharm also has five drugs that
are currently under development.

FORWARD-LOOKING STATEMENTS

Statements made in this news release may contain forward-looking statements
concerning Interpharm Holdings, Inc.'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 Holdings,
Inc.'s control. Other risks inherent in Interpharm Holdings, Inc.'s business are
described in ATEC Group, Inc.'s Definitive Proxy Statement, filed with the
Securities and Exchange Commission on May 2, 2003, Form 10-K, filed on September
29, 2003 Forms 10-Q filed on November 14, 2003 and February 17, 2004, and the
"Management's Discussion and Analysis of Financial Condition and Results of
Operations" sections contained therein. The acquisition of Interpharm, Inc. is
described in the foregoing proxy materials, as well as in ATEC's Form 8-K, filed
with the Securities and Exchange Commission on February 27, 2003, our Form 8-K,
filed on June 16, 2003 and our amended Form 8-K, filed on August 11, 2003.
Interpharm Holdings, Inc. undertakes no obligation to revise or update any
forward-looking statements to reflect events or circumstances after the date of
this release.

All information in this release is as of February 26, 2004. Interpharm Holdings,
Inc. undertakes no duty to update any forward-looking statement toconform the
release to actual results or changes in the Company's circumstances or
expectations after the date of this release. 

DATASOURCE: Interpharm Holdings, Inc.



CONTACT:  George Aronson of Interpharm Holdings, Inc., [phone],

ext. 101



Web site:  http://www.interpharminc.com/

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