Savient Reports Results for First Quarter 2006

For the first quarter of 2006, total revenues were $18.9 million,down 10% from a year ago. Net income for the quarter was $4.0 million,or 6 cents per fully diluted share, compared to a net loss of $0.5million, or 1 cent per fully diluted share for the first quarter of2005. Our net income in the quarter was significantly positivelyimpacted by $8.9 million of Other Income items, certain of which we donot expect to be recurring.

Christopher Clement, President and Chief Executive Officer ofSavient, said, "Savient continues to move forward on its statedstrategy of focusing on the developments of our clinical pipeline, inparticular, the full development of Puricase (PEG-uricase). Ourbalance sheet continues to be strong and free of debt, and we arefocusing full efforts on advancing our product Puricase(R)(PEG-uricase) towards commercialization. We achieved two majormilestones in the first quarter when the FDA responded to our SpecialProtocol Assessment (SPA) for Phase 3 clinical trials for Puricase andwe held our investigators meeting for the trials at the end of thequarter. In early May, the FDA provided final written approval of theSPA that allows us to begin patient dosing, which we plan on beginninglater this month. These achievements keep us on track with our goal tofile a BLA with the FDA in late 2007.

"During the quarter, we also announced that we retained CitigroupCorporate and Investment Banking to explore the strategic alternativesfor our wholly owned subsidiary, Rosemont Pharmaceuticals Limited. Weare progressing steadily forward with this project and continue toanticipate that any transaction finally determined to be pursued couldbe completed by the end of 2006. Furthermore, following completion ofa Rosemont transaction, we remain committed to devoting the netproceeds to the full clinical and commercial development of Puricase(PEG-uricase) and to earmarking a significant portion for the pursuitof a stock repurchase plan."

Clement highlighted several additional key developments for thefirst quarter of 2006:

-- Closed the sale of Delatestryl(R) to Indevus Pharmaceuticals and received an initial payment of $5 million coupled with an additional installment payment of $0.6 million for existing product inventory.

-- Completed the necessary financial restatements with the Securities and Exchange Commission to return to full compliance under Nasdaq rules. This included the restatement of the 2004 Annual Report on Form 10-K for the year ended December 31, 2004, including 2003, 2002 and 2001 prior period restatements and the restatement of our March 31, 2005 Form 10-Q.

-- Signed a Letter of Intent for an exclusive U.S. distribution agreement with Cytogen Corporation for Soltamox(TM), which transaction closed shortly after the end of the quarter.

Quarter Ended March 31, 2006

Revenues

-- Total revenues for the quarter ended March 31, 2006 were $18.9 million compared to $20.9 million during the same period a year ago.

-- Net product sales were $18.9 million compared to $20.8 million in 2005, a decrease of 9%, attributable to the decrease in Oxandrin(R) sales and the sale of Delatestryl(R) to Indevus, partially offset by an increase in sales of pharmaceutical products by Rosemont.

-- Sales of Oxandrin(R) were $9.4 million compared to $10.8 million a year ago. The decrease results primarily from a reduction of demand in the involuntary weight loss market and the removal of Oxandrin from the Florida State Medicaid formulary effective January 1, 2006 that was partially offset by a price increase in January, 2006.

-- Sales of Rosemont's pharmaceutical products increased 4% to $9.4 million versus $9.1 million during the same period in 2005. Excluding the impact of exchange rate fluctuation, sales increased 12%.

Expenses

-- Total expenses for the quarter ended March 31, 2006 decreased to $22.2 million from $23.5 million during the same period a year ago. The decrease is primarily attributable to lower cost of sales, R&D expense, and commissions and royalty expense, partially offset by higher general and administrative expenses.

-- Restatement expenses that were incurred during the quarter ended March 31, 2006 were approximately $1.0 million.

Other Income, net

-- Other income, net was $8.9 million for the quarter ended March 31, 2006 as compared to other income, net of $2.2 million in the first quarter of 2005. The increase is primarily attributable to the gain on sale of Delatestryl(R) of approximately $6.0 million and an increase in investment income.

Income Taxes

-- Provision for income taxes increased to $1.6 million for the quarter ended March 31, 2006 compared to $0.1 million for the same period in 2005. The increase in provision for income taxes was primarily attributable to the Rosemont pharmaceutical products segment.

Balance Sheet

-- Savient had cash, cash equivalents, and short-term investments of $89.2 million as of March 31, 2006, compared to $75.4 million at year-end 2005. The Company has no long-term debt.

CONFERENCE CALL

Savient will host a live webcast to review first quarter 2006results today, May 11, 2006 at 10:00 a.m. EDT. Both the live andarchived webcast can be accessed from the investor relations page ofSavient's website at www.savientpharma.com. A digital recording of thewebcast will be available for replay two hours after the call'scompletion and will be archived through May 25, 2006. To access therecording, use the Dial-In Number and the Conference ID listed below.
Encore Dial In #: (800) 642-1687 or (706) 645-9291
Encore Dates: 05/11/2006 11:00 EST - 05/25/2006 23:59 EST

Conf ID 8982341

ABOUT SAVIENT

Based in East Brunswick, New Jersey, Savient Pharmaceuticals,Inc., is a specialty pharmaceuticals company and is engaged indeveloping, manufacturing and marketing pharmaceutical products thataddress unmet medical needs in both niche and broader markets. TheCompany's lead product development candidate, Puricase(R)(PEG-uricase), for the treatment of refractory gout has reportedpositive Phase 1 and 2 clinical data. Savient's experienced managementteam is committed to advancing its pipeline and expanding its productportfolio by in-licensing late stage compounds and exploringco-promotion and co-development opportunities that fit the Company'sexpertise in specialty pharmaceuticals and initial focus inrheumatology. Savient markets its product Oxandrin(R) (oxandrolone,USP) in the United States. The Company's subsidiary, RosemontPharmaceuticals Ltd., develops, manufactures, and markets through itsown sales force oral liquid formulations of prescription products forthe UK pharmaceutical market. Rosemont's product portfolio includesover 100 liquid formulations primarily targeting the geriatricpopulation. Puricase is a registered trademark of Mountain ViewPharmaceuticals, Inc. Further information on the Company can beaccessed by visiting: www.savientpharma.com.

FORWARD LOOKING LANGUAGE

This news release contains forward-looking statements within themeaning of Section 21E of the Securities Exchange Act of 1934. Allstatements, other than statements of historical facts, included inthis report regarding the Company's strategy, expected futurefinancial position, results of operations, cash flows, financingplans, discovery and development of products, strategic alliances,competitive position, plans and objectives of management areforward-looking statements. Words such as "anticipate," "believe,""estimate," "expect," "intend," "plan," "will" and other similarexpressions help identify forward-looking statements, although not allforward-looking statements contain these identifying words. Inparticular, the statements regarding the completion of the evaluationof strategic alternatives and for a potential transaction regardingRosemont Pharmaceuticals, the clinical development of Puricase(PEG-uricase), commencement of the Phase 3 clinical trial for Puricase(PEG-uricase), time for completion of patient recruitment and timingfor the filing of an BLA for Puricase (PEG-uricase), and the timingand size of a stock repurchase plan are forward-looking statements.These forward-looking statements involve substantial risks anduncertainties and are based on current expectations, assumptions,estimates and projections about the Company's business and thebiopharmaceutical and specialty pharmaceutical industries in which theCompany operates. Such risks and uncertainties include, but are notlimited to, the Company's ability to conclude its strategic evaluationand consummate an appropriate transaction with respect to RosemontPharmaceuticals on attractive terms; delay or failure in developingPuricase and other product candidates; difficulties of expanding theCompany's product portfolio through in-licensing; introduction ofgeneric competition for Oxandrin; fluctuations in buying patterns ofwholesalers; potential future returns of Oxandrin or other products;the Company's continuing to incur substantial net losses for theforeseeable future; difficulties in obtaining financing; potentialdevelopment of alternative technologies or more effective products bycompetitors; reliance on third-parties to manufacture, market anddistribute many of the Company's products; economic, political andother risks associated with foreign operations; risks of maintainingprotection for the Company's intellectual property; risks of anadverse determination in on-going or future intellectual propertylitigation; and risks associated with stringent government regulationof the biopharmaceutical and specialty pharmaceutical industries. TheCompany may not actually achieve the plans, intentions or expectationsdisclosed in its forward-looking statements, and you should not placeundue reliance on the Company's forward-looking statements. Actualresults or events could differ materially from the plans, intentionsand expectations disclosed in the forward-looking statements that theCompany makes. The Company's forward-looking statements do not reflectthe potential impact of any future acquisitions, mergers,dispositions, joint ventures or investments that the Company may make.The Company does not assume any obligation to update anyforward-looking statements.
SAVIENT PHARMACEUTICALS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)

March 31, December 31,
2006 2005
(Unaudited)
----------- ------------
Assets:
Cash, cash equivalents and short-term
investments $ 89,211 $ 75,372
Accounts receivable, net 8,999 11,716
Inventories, net 9,517 9,419
Other current assets 4,664 9,356
----------- ------------
Total current assets 112,391 105,863

Property and equipment, net 6,564 6,144
Intangible assets, net 66,625 67,638
Goodwill 40,121 40,121
Other long term-assets 3,514 2,925
----------- ------------
Total assets $ 229,215 $ 222,691
=========== ============

Liabilities and stockholders' equity:
Current liabilities $ 23,048 $ 20,866
Deferred income taxes 19,989 20,431
Stockholders' equity 186,178 181,394
----------- ------------
Total liabilities and stockholders' equity $ 229,215 $ 222,691
=========== ============



SAVIENT PHARMACEUTICALS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(in thousands except per share data)


Three Months
Ended March 31,
2006 2005
-------- --------
Revenues:
Product sales, net $18,906 $20,826
Other - 75
-------- --------
Total revenues 18,906 20,901
-------- --------

Expenses:
Cost of sales 3,855 5,611
Research and development 3,987 5,167
Marketing and sales 4,656 5,014
General and administrative 8,710 5,371
Commissions and royalties 1 1,319
Amortization of intangibles 1,013 1,013
-------- --------
Total expenses 22,222 23,495
-------- --------

Operating Loss (3,316) (2,594)
Other income, net 8,855 2,186
-------- --------
Income (loss) before income taxes 5,539 (408)
Income tax expense 1,561 126
-------- --------
Net income (loss) from continuing operations 3,978 (534)
Net income discontinued operations - 57
-------- --------
Net income (loss) $ 3,978 $ (477)
======== ========

Earnings (loss) per common share:
Basic:
Income (loss) from continuing operations $0.06 $(0.01)
Income from discontinued operations - -
-------- --------
Net income (loss) $0.06 $(0.01)
======== ========
Diluted:
Income (loss) from continuing operations $0.06 $(0.01)
Income from discontinued operations - -
-------- --------
Net income (loss) $0.06 $(0.01)
======== ========

Weighted average number of common
and common equivalent shares:
Basic 61,212 60,545
Diluted 62,107 60,545

(SVNT-E)