AMRI (NASDAQ: AMRI) today reported financial and operating results
for the fourth quarter and full year ending December 31, 2007.

Financial highlights include:

Continued strong growth in Development/Small Scale business
segment revenue, up 22% in fourth quarter, and 26% for the
full year

Full year adjusted operating income increased over 100% to
$11.6 million from $5.7 million in 2006

Full year adjusted net income of $9.1 million for 2007, up
from $6.5 million in 2006

Full year cash flow from operations improved by $20 million to
$31.7 million

Fourth Quarter Results

Total revenue for the fourth quarter of 2007 was $47.2 million, an
increase of 1% compared to total revenue of $46.6 million in the
fourth quarter of 2006.

Total contract and milestone revenue for the fourth quarter was
$41.1 million, an increase of 2% compared to total contract and
milestone revenue of $40.3 million in the fourth quarter of 2006.

Total contract revenue for the fourth quarter of 2007 was $40.6
million, an increase of 1% compared to total contract revenue of $40.3
million in 2006. Total contract revenue encompasses revenue from
AMRI’s Discovery Services, Development and Small Scale Manufacturing,
and Large Scale Manufacturing business components.

Development/Small Scale Manufacturing contract revenue for
the fourth quarter was $11.4 million, an increase of 22% from
$9.3 million in 2006

Discovery Services contract revenue for the fourth quarter
of 2007 was $11.5 million, a decrease of 6% from $12.2 million
in 2006

Large Scale Manufacturing contract revenue for the fourth
quarter of 2007 was $17.7 million, a decrease of 6% from $18.8
million in 2006

Milestone revenue resulting from a collaborative research
agreement was $0.5 million in the fourth quarter.

Recurring royalties from Allegra(R) in the fourth quarter of 2007
were $6.1 million, a decrease of 4% compared to recurring royalties of
$6.3 million in 2006. AMRI earns royalties from worldwide sales of the
nonsedating antihistamine Allegra(R) (Telfast(R) outside the United
States), as well as the authorized generic, for patents relating to
the active ingredient in Allegra(R).

The net loss under U.S. Generally Accepted Accounting Principles
(U.S. GAAP) in the fourth quarter of 2007 was $0.8 million or ($0.03)
per basic and diluted share, compared to a net loss of $0.8 million or
($0.02) per basic and diluted share in the fourth quarter of 2006.
During the fourth quarter of 2006, AMRI initiated the restructuring of
its Large Scale Manufacturing facility in Rensselaer, NY in order to
improve profitability. AMRI recorded a charge of $1.6 million, net of
taxes, or ($0.05) per diluted share, related to this restructuring
initiative. In addition, during the fourth quarter of 2006, AMRI
entered into a letter of intent to sell its real estate assets in
Mount Prospect, IL for approximately $1.5 million. As a result, AMRI
recorded an additional impairment charge of approximately $306,000,
net of taxes, or ($0.01) per diluted share, in the fourth quarter of
2006 to reduce the carrying amount of these assets. Also, during the
fourth quarter of 2006 AMRI recognized a real property tax adjustment
resulting from a prior year tax audit settlement in the amount of
$390,000 or ($0.01) per diluted share. Excluding the Large Scale
restructuring, the Mount Prospect impairment and real property tax
adjustment charges described above, net income in the fourth quarter
of 2006 was $1.5 million, or $0.05 per diluted share. There were no
similar material pro forma adjustments in the fourth quarter of 2007.
For a reconciliation of net income (loss) and earnings (loss) per
diluted share as reported to adjusted net income and earnings per
diluted share for the 2007 and 2006 reporting periods, please see
Table 1 at the end of this press release.

Full Year 2007 Results

Total revenue for the full year ended December 31, 2007 was $192.5
million, an increase of 7% compared to total revenue of $179.8 million
in 2006.

Total contract and milestone revenue for the full year was $165.5
million, an increase of 8% compared to total contract and milestone
revenue of $152.8 million in 2006.

Total contract revenue for the full year was $163.4 million, an
increase of 7% compared to total contract revenue of $152.8 million in
2006.

Development and Small Scale Manufacturing contract revenue
for the year ended December 31, 2007 was $45.4 million, an
increase of 26% compared to $36.2 million in 2006

Discovery Services contract revenue was $41.6 million, an
increase of 5% compared to $39.6 million in 2006

Large Scale Manufacturing contract revenue was $76.3
million, a decrease of 1% compared to $77.0 million in 2006

Milestone revenue for the year ended December 31, 2007 was $2.1
million. Milestone revenue includes $1.5 million recorded in the
second quarter resulting from the company’s 2005 licensing agreement
with BristolMyers Squibb and $0.5 million recorded in the fourth
quarter resulting from a collaborative research agreement.

Recurring royalties from Allegra(R) for the full year were $27.1
million, up slightly from recurring royalty revenues of $27.0 million
in 2006.

The net income under U.S. Generally Accepted Accounting Principles
(U.S. GAAP) for the year ended December 31, 2007 was $8.9 million, or
$0.27 per diluted share, compared to net income of $2.2 million, or
$0.07 per diluted share in 2006. Excluding Large Scale Manufacturing
restructuring charges of $177,000 (net of taxes), net income for the
year ended December 31, 2007 on an adjusted basis was $9.1 million, or
$0.28 per diluted share. Excluding the Mount Prospect impairment
charges, a real property tax adjustment resulting from a prior year
tax audit settlement and charges related to the Large Scale
restructuring, net income for the year ended December 31, 2006 on an
adjusted basis was $6.5 million, or $0.20 per diluted share. For a
reconciliation of net income and earnings per diluted share as
reported to adjusted net income and earnings per diluted share, please
see Table 1 at the end of this press release.

AMRI Chairman, President and CEO Thomas E. D’Ambra said, “AMRI
achieved significant progress in multiple lines of business during
2007. While the many positive developments were overshadowed by
overall fourth quarter performance, yearoveryear comparison of 2007
versus 2006 saw significant operating improvements in the business.
Demand for our Discovery Services, in particular, is strong as
customers begin to take advantage of our flexible, global business
model, anchored by our USbased resources. Development/Small Scale
Manufacturing continued to deliver strong growth. Our Large Scale
business segment posted a $5.5 million improvement in gross margin,
increasing from 3% in 2006 to 10% in 2007.”

Dr. D’Ambra continued, “While we had expected to gain more margin
improvement in 2007, we continue to see our Large Scale segment as
critical to our business strategy and remain focused on building on
these margin improvements in 2008. In addition, we expect our recent
investments and expansions in our sales force to deliver larger
contributions to revenue growth in the second half of 2008. Overall,
by building on the progress achieved in 2007, and making additional
improvements in all areas of our business, I believe that 2008 should
continue the year over year improvements in revenue and operating
margin we achieved in 2007.”

Liquidity and Capital Resources

At December 31, 2007, AMRI had cash, cash equivalents and
investments of $107.7 million, compared to $105.9 million at September
30, 2007 and $107.2 million at December 31, 2006. Net cash provided by
operating activities increased to $31.6 million in 2007 compared to
$11.3 million in 2006. The change is due primarily to net income of
$8.9 million in 2007 compared to $2.2 million in 2006 and cash
provided by changes in assets and liabilities of $1.5 million in 2007
compared to cash used in operating activities of $13.5 million in 2006
resulting from changes in assets and liabilities. Cash used in
investing activities increased slightly in 2007 when compared to 2006
resulting primarily from the acquisition of India Private Limited in
June 2007 and increases in the purchase of property, plant and
equipment. Proceeds from the sale of common stock resulted in a
reduction of cash used in Financing activities in 2007 when compared
to 2006.

The increase of $1.8 million in cash, cash equivalents and
investments in the fourth quarter of 2007 was due primarily to cash
flow from operations of $8.2 million, partially offset by purchases of
property, plant and equipment of $5.7 million and principal payments
on the company’s credit facility of $1.1 million.

Total debt at December 31, 2007 was $14.0 million, compared to
$15.1 million at September 30, 2007 and $18.5 million at December 31,
2006. Cash, cash equivalents, and investments, net of debt, were $93.7
million at December 31, 2007. Total common shares outstanding, net of
treasury shares, were 32,998,159 at December 31, 2007.

2008 Financial Guidance

AMRI Chief Financial Officer Mark T. Frost provided contract
revenue guidance for the first quarter and full year of 2008. “In the
first quarter, we expect contract revenue to range from $38 million to
$42 million. As indicated in our press release issued on January 29,
customer delivery patterns will cause the growth for the first quarter
to be near flat with the majority of forecasted growth occurring in
the remaining quarters of 2008. For the full year 2008, we expect
contract revenue to range from $178 million to $182 million, an
increase of up to 12% versus 2007 and demand for our Discovery
Services to be the largest contributor to full year revenue growth.”

Mr. Frost continued, “As a result of the stabilization of our
royalty revenues from worldwide sales of Allegra(R), we are
reintroducing earnings per share guidance for 2008. For the first
quarter we expect EPS to range from of $0.00 to $0.03. For the full
year we expect EPS to range from $0.33 to $0.37, which would represent
up to 32% adjusted EPS growth compared with 2007.”

Share Repurchase Program

AMRI’s board of directors approved a stock repurchase program
during the board’s regularly scheduled meeting on February 7, 2008.
Under the program, the company is authorized to purchase up to $20
million of the issued and outstanding shares of its Common Stock in
the open market or in private transactions during the next 12 months.
Shares may be repurchased from time to time and in such amounts as
market conditions warrant, subject to price ranges set by management
and regulatory considerations.

“This program underscores our confidence in AMRI’s business,” said
Dr. D’Ambra. “We believe that current share price levels represent an
attractive investment, particularly in view of the many longer term
strategic initiatives AMRI has undertaken. The Board believes that
this commitment is a good way to demonstrate its confidence in AMRI’s
future. In addition to funding our international expansion and several
R&D programs, AMRI’s business continues to generate significant cash.
The size of the program announced today still positions the company
with the financial resources and flexibility to continue to evaluate
additional expansion opportunities as they arise.”

Full Year Highlights

During 2007, AMRI made a number of noteworthy announcements,
including the following:

The launch of a fouryear research collaboration with the
Cystic Fibrosis Foundation aimed at identifying novel
treatments that address the core defect in cystic fibrosis.
The collaboration, worth up to $23.7 million, calls for AMRI
to screen its naturalproduct based libraries, and conduct an
integrated drug discovery program on promising compounds that
may emerge from the screening program. AMRI also has the
option to provide chemical development and GMP manufacturing
services on compounds that progress into preclinical or
clinical testing.

A $1.5 million milestone payment from a licensing agreement
with BristolMyers Squibb, marking the first milestone in the
ongoing research collaboration between the two companies to
develop improved treatments for depression and diseases of the
central nervous system.

The acquisition of two pharmaceutical manufacturing sites,
along with additional land for expansion, in Aurangabad and
Navi Mumbai, India, immediately expanding AMRI’s product
offerings in the manufacture of pharmaceutical and bulk active
intermediates.

The opening of a new 5,000 square meter (50,000 sq. ft.)
research and development facility at the Shapoorji Pallonji
Biotech Park in Hyderabad, India, providing additional space
for AMRI’s laboratoryscale Indian operations. The new
facility also includes laboratories for conducting early stage
research such as custom chemical synthesis and analytical
chemistry.

A letter of intent was signed for the purchase of FineKem
Laboratories Pvt. Limited, a manufacturing facility located in
Aurangabad, India, significantly accelerating AMRI’s ability
to make custom pilot scale intermediates in India. The
transaction closed in January 2008 and operations are expected
to commence in the second quarter of 2008.

The hire of Jonathan D. Evans as Vice President of
Pharmaceutical Development and Manufacturing, consolidating
the leadership of all manufacturing operations worldwide
under one helm. Mr. Evans brings 16 years of international
operations and management experience including 13 years at
General Electric’s Advanced Materials Division.

The hire of Steve Jennings as Senior Vice President of Sales,
Marketing and Business Development. Mr. Jennings brings over
30 years of leadership and global sales experience, with a
strong background in business development and licensing in
both the pharmaceutical and medical device sectors.

A brand name change, new logo, and launch of a redesigned Web
site reinforcing the company’s transition into a global
organization with the ability to provide a wide range of
services to customers worldwide.

The hire of Raymond Yeung as General Manager of AMRI Singapore
Research Center. Mr. Yeung brings 25 years of industrial,
pharmaceutical and biotechnology experience with healthcare
organizations in North America and Asia.

The hire of Dr. Philip William Small as Director of Chemistry
at its Hungarian site. Dr. Small brings over 20 years of
practical and managerial experience gained at leading
combinatorial chemistry/drug discovery companies.

A natural productsbased drug discovery collaboration with
Achaogen, Inc. focused on potential new treatments for
antibiotic resistance. In addition to an upfront payment, AMRI
has opportunities for milestone and royalty payments.

The launch and assumption of leadership of the CancerGrid
Project by AMRI Hungary, a threeyear multidisciplinary
research program funded by the European Commission in which
ten life sciences companies and academic centers will work
together to discover and develop novel anticancer agents.

Fourth Quarter Conference Call

The company will hold a conference call at 10 a.m. Eastern
Standard Time on February 11, 2008 to discuss its quarterly results,
business highlights and prospects. During the conference call, the
company may discuss information not previously disclosed to the
public. Individuals interested in listening to the conference call
should dial 8886377740 (for domestic calls) or 9133121484 (for
international calls) at 9:45 a.m. ET and provide conference code
5426081. In addition, the call is being webcast on the Internet and
can be accessed on the company’s website, www.amriglobal.com.

Replays of the call will be available for seven days following the
call beginning at noon on February 11, 2008. To access the replay by
telephone, call 8882031112 (for domestic calls) or 7194570820 (for
international calls) and use passcode 4299861. In addition, replays of
the call will be available for three months on the company’s website
at www.amriglobal.com/investorrelations/.

Founded in 1991, Albany Molecular Research, Inc. (AMRI) provides
scientific services, products and technologies focused on improving
the quality of life. AMRI works on drug discovery and development
projects and conducts manufacturing of active ingredients and
pharmaceutical intermediates for many of the world’s leading
healthcare companies. As an additional value added service to its
customers, the company is also investing in R&D in order to expand its
contract services and to identify novel early stage drug candidates
with the goal to outlicense to a strategic partner. With locations in
the U.S., Europe, and Asia, AMRI provides customers with a wide range
of services, technologies and cost models.

This press release includes forwardlooking statements within the
meaning of the Private Securities Litigation Reform Act of 1995 that
involve risks and uncertainties. These statements include, but are not
limited to, statements regarding the company’s estimates of revenue
and earnings per share for the full year 2008, statements made by the
company’s chief executive officer and chief financial officer,
including statements under the caption “2008 Financial Guidance”
regarding the strength of the company’s business and prospects,
including statements concerning the expected revenue growth from and
business demand for the company’s Discovery Services business unit,
the expectation of improved profitability of large scale
manufacturing, new active pharmaceutical ingredients manufactured by
the company, profitability and sustaining the company’s momentum and
longterm growth. Readers should not place undue reliance on our
forwardlooking statements. The company’s actual results may differ
materially from such forwardlooking statements as a result of
numerous factors, some of which the company may not be able to predict
and may not be within the company’s control. Factors that could cause
such differences include, but are not limited to, the company’s
ability to attract and retain experienced scientists, trends in
pharmaceutical and biotechnology companies’ outsourcing of chemical
research and development, including softness in these markets, sales
of Allegra(R) and the impact of the “atrisk” launch of generic
Allegra(R) on the company’s receipt of significant royalties under the
Allegra(R) license agreement, the risk of an “atrisk” launch of
generic AllegraD(R) and the impact of that on the company’s receipt
of significant royalties under the Allegra(R) license agreement, the
risk that Allegra(R) may be approved for overthecounter use, the
overthecounter sale of Claritin, the overthecounter sale of
generic alternatives for the treatment of allergies and the risk of
new product introductions for the treatment of allergies including
generic forms of Allegra(R), the success of the company’s
collaborations with customers including the collaboration with
BristolMyers Squibb Company related to biogenic amine reuptake
inhibitors, the company’s ability to enforce its intellectual property
and technology rights, the company’s ability to successfully develop
novel compounds and lead candidates in its collaborative arrangements,
the company’s ability to take advantage of proprietary technology and
expand the scientific tools available to it, the ability of the
company’s strategic investments and acquisitions to perform as
expected, including the reaction of customers of the company to the
acquisition of assets of Ariane Orgachem Pvt. Ltd. in Aurangabad/
Ferico Laboratories Ltd. in Navi Mumbai, India, and the acquisition of
FineKem Laboratories Pvt. Ltd. in Aurangabad, India, the company’s
timing and ability to successfully integrate Arianne’s and FineKem’s
operations (including migration of Arianne and FineKem to the
company’s systems and controls) and employees, the introduction of new
services by competitors or the entry of new competitors into the
markets for the company’s, Arianne’s and FineKem’s services, the
failure by the company to retain key employees of Arianne and FineKem,
failure to further develop and successfully market Arianne’s and
FineKem’s service offerings, failure to achieve anticipated revenues
and earnings, costs related to the acquisition and any goodwill
impairment related to such investments and acquisitions, the risks
posed by international operations to the company, the existence of
deficiencies and/or material weaknesses in the company’s internal
controls over financial reporting, risks related to the company’s
implementation of its ERP system, and the company’s ability to
effectively manage its growth, as well as those risks discussed in the
company’s Annual Report on Form 10K for the year ended December 31,
2006 as filed with the Securities and Exchange Commission on March 15,
2007, and the company’s other SEC filings. Revenue and other earnings
related guidance offered by senior management today represents a
pointintime estimate and is based on information as of the date of
this press release. Senior management has made numerous assumptions in
providing this guidance which, while believed to be reasonable, may
not prove to be accurate. Numerous factors, including those noted
above, may cause actual results to differ materially from the guidance
provided. The company expressly disclaims any current intention or
obligation to update the guidance provided or any other
forwardlooking statement in this press release to reflect future
events or changes in facts assumed for purposes of providing this
guidance or otherwise affecting the forwardlooking statements
contained in this press release.

NonGAAP Adjustment Items

To supplement our financial results prepared in accordance with
U.S. GAAP, we have presented nonGAAP measures of net income (loss)
and earnings (loss) per diluted share adjusted to exclude the Large
Scale restructuring charge, a real property tax adjustment resulting
from a prior year tax audit settlement and the impairment charge
related to our Mount Prospect Research Center, which management
believes are outside our core operational results. We believe
presentation of these measures enhances an overall understanding of
our historical financial performance because we believe they are an
indication of the performance of our base business. Management uses
these nonGAAP measures as a basis for evaluating our financial
performance as well as for budgeting and forecasting of future
periods. For these reasons, we believe they can be useful to
investors. The presentation of this additional information should not
be considered in isolation or as a substitute for net income (loss) or
earnings (loss) per diluted share prepared in accordance with U.S.
GAAP.

Table 1: Reconciliation of fourth quarter 2007 and 2006 and full
year 2007 and 2006 reported net income (loss), earnings (loss) per
diluted share, and income (loss) from operations to adjusted net
income (loss), adjusted earnings (loss) per share, and adjusted income
(loss) from operations:
Table 1

Fourth Quarter Full Year
2007 2007

Net (loss) income, as reported $ (844) $ 8,936
LS restructuirng (12) 177

Net (loss) income, as adjusted $ (856) $ 9,113
=============== ===============

Earnings (loss) per diluted share, as
reported $ (0.03) $ 0.27
LS restructuring (0.00) 0.01

Earnings (loss) per diluted share, as
adjusted $ (0.03) $ 0.28
=============== ===============

Income (loss) from operations, as
reported $ (1,250) $ 11,351
LS restructuring (12) 273

Income (loss) from operations, as
adjusted $ (1,262) $ 11,624
=============== ===============

Fourth Quarter Full Year
2006 2006

Net (loss) income, as reported $ (764) $ 2,183
Mt Prospect impairment 306 2,310
Real property tax 390 390
LS Restructuring 1,580 1,580

Net income, as adjusted $ 1,512 $ 6,463
=============== ===============

Earnings (loss) per diluted share, as
reported $ (0.02) $ 0.07
Mt Prospect impairment 0.01 0.07
Real property tax 0.01 0.01
LS restructuring 0.05 0.05

Earnings per diluted share, as
adjusted $ 0.05 $ 0.20
=============== ===============

Loss from operations, as reported $ (2,504) $ (898)
Mt Prospect charges, net of taxes 470 3,554
Real property tax settlement 600 600
LS restructuring 2,431 2,431

Income (loss) from operations, as
adjusted $ 997 $ 5,689
=============== =============== Albany Molecular Research, Inc.
Condensed Consolidated Statements of Operations (unaudited)

Three Months Ended Twelve Months Ended

December December December December
(Dollars in thousands, except 31, 31, 31, 31,
for per share data) 2007 2006 2007 2006

Contract revenue $ 40,637 $ 40,305 $163,375 $152,783
Milestones and recurring
royalties 6,586 6,313 29,136 27,024

Total revenue 47,223 46,618 192,511 179,807

Cost of contract revenue 35,938 32,846 132,032 128,610
Technology incentive award 658 632 2,784 2,783
Research and development 3,596 3,503 12,821 11,428
Selling, general and
administrative 8,293 9,710 33,250 31,899
Property and equipment
impairment 3,554
Restructuring (12) 2,431 273 2,431

Total costs and expenses 48,473 49,122 181,160 180,705

Income (loss) from operations (1,250) (2,504) 11,351 (898)

Interest income, net 840 844 3,192 2,990
Other (loss) income, net (53) 149 (158) 150

Income (loss) before income
tax expense (463) (1,511) 14,385 2,242

Income tax expense (benefit) 381 (747) 5,449 59

Net income (loss) $ (844) $ (764) $ 8,936 $ 2,183
========= ========= ========= =========

Basic earnings (loss) per
share $ (0.03) $ (0.02) $ 0.28 $ 0.07
========= ========= ========= =========

Diluted earnings (loss) per
share $ (0.03) $ (0.02) $ 0.27 $ 0.07
========= ========= ========= ========= Albany Molecular Research, Inc.
Selected Consolidated Balance Sheet Data
(unaudited)

December 31, December 31,
2007 2006

Cash, cash equivalents and investments $ 107,699 $ 107,164
Accounts receivable, net 28,006 34,747
Royalty income receivable 6,086 6,225
Inventory 22,581 22,644
Total current assets 175,260 182,620
Property and equipment, net 158,028 153,202
Total assets 386,654 375,493

Total current liabilities 36,371 32,688
Longterm debt, excluding current
installments 4,080 13,993
Total liabilities 52,088 57,038
Total stockholders’ equity 334,566 318,455
Total liabilities and stockholders’ equity $ 386,654 $ 375,493
*T

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