American Pharmaceutical Partners Reports on Melrose Park, Il Operations and Provides Update on $120 Million Company-Wide Facility Upgrade and Expansion Initiative

* Upgrade of Melrose Park, Illinois Plant to Take Longer Than Expected



* Availability of ABRAXANE(TM) not Impacted



* Delay Anticipated to Affect a Limited Number of Generic Products in

Third Quarter



* Company-wide Expansion Estimated to More Than Double Lyophilization

Manufacturing and Increase ABRAXANE Capacity



* Second ABRAXANE Manufacturing Site Operational During Second Half of

2006



Aug 25, 2005, 01:00 ET from American Pharmaceutical Partners, Inc.

    SCHAUMBURG, Ill., Aug. 25 /PRNewswire-FirstCall/ -- American
 Pharmaceutical Partners, Inc. (Nasdaq:   APPX) (APP) today said that its program
 to upgrade the facility and equipment and re-validate production conditions at
 its Melrose Park, IL manufacturing facility, which is being conducted as part
 of the company's routine annual maintenance program, will require more time
 than initially anticipated.  The upgrading and validation program at APP's
 Melrose Park plant is part of a company-wide strategic initiative under which
 APP has invested more than $120 million to date since 2001 expanding its
 manufacturing plants, R&D, warehouse facilities and IT infrastructure
 worldwide.  For 2005, the company expects to invest approximately $60 million
 for upgrading equipment and quality systems in manufacturing, expanding raw
 material storage and product development facilities.
     Management currently expects that the Melrose Park facility will be
 partially operational by early September and fully operational by late
 September, pending successful completion of process simulation runs (media
 fills).  As a result of this delay, APP expects to incur incremental,
 unabsorbed third quarter expenses of approximately $10 million.
     The delay in resumption of manufacturing at the Melrose Park plant is
 expected to affect the sale of a limited number of key generic products.  The
 third quarter 2005 sales impact on generic products is expected to be
 approximately $15 million.  Sales of the proprietary product ABRAXANE(TM),
 which also is produced at the Melrose Park facility, are not anticipated to be
 impacted by the delay.  APP currently has sufficient finished goods inventory
 of ABRAXANE available to meet both the currently projected demand in the
 marketplace and American BioScience's clinical trial requirements through the
 end of the 2006 first quarter.
 
     $120 Million Company-Wide Facility Upgrade and Expansion Initiative
     Since its initial public offering in 2001, APP undertook a strategic
 initiative to continuously upgrade and expand all of its manufacturing,
 product development and quality control systems as part of its commitment to
 providing injectable products at the highest standards of quality.
     By mid-2005, APP completed a second manufacturing facility for ABRAXANE in
 Grand Island, NY and validation of this facility currently is underway.  The
 company anticipates shipping product for the U.S. market from this new
 ABRAXANE manufacturing suite, which has been designed to comply with both U.S.
 and European standards, during the second half of 2006.
     Overall, APP estimates that the expansion of the plants and installation
 of new equipment company-wide will increase its U.S. liquid manufacturing
 capacity by approximately 25% and more than double its U.S. lyophilization
 manufacturing capacity.
 
     About American Pharmaceutical Partners
     American Pharmaceutical Partners, Inc. is a specialty drug company that
 develops, manufactures and markets injectable pharmaceutical products,
 focusing on the oncology, anti-infective and critical care markets.  Abraxis
 Oncology, the proprietary division of APP, is devoted entirely to developing
 and promoting innovative, next-generation cancer therapies such as
 ABRAXANE(TM), recently launched for the treatment of metastatic breast cancer.
 For more information, visit APP's website at www.appdrugs.com and
 www.abraxisoncology.com.
 
     Because these forward-looking statements, whether expressed or implied,
 involve risks and uncertainties, there are important factors that could cause
 actual results to differ materially from those in the forward-looking
 statements.  These factors include, without limitation, the uncertainties
 regarding the costs and time involved in bringing our Illinois manufacturing
 facility to a fully operational status, the adverse impact of production
 delays on the sales and marketing our products, the costs associated with the
 ongoing launch of ABRAXANE(TM), the market adoption and demand of ABRAXANE,
 marketing approvals and launches of other products, the impact of
 pharmaceutical industry regulation, the impact of competitive products and
 pricing, the availability and pricing of ingredients used in the manufacture
 of pharmaceutical products, the ability to successfully manufacture products
 in a time-sensitive and cost effective manner, the acceptance and demand of
 new pharmaceutical products, the impact of patents and other proprietary
 rights held by competitors and other third parties. Additional relevant
 information concerning risks can be found in our Form 10-K for the year ended
 December 31, 2004 and other documents filed by us with the Securities and
 Exchange Commission.
 
      Contacts:  American Pharmaceutical Partners, Inc.
                 Nicole Williams
                 Executive Vice President & CFO
                 (847) 969-2700
 
                 Rob Whetstone/Robert Jaffe
                 PondelWilkinson Inc.
                 (310) 279-5963
 
 

SOURCE American Pharmaceutical Partners, Inc.