INSTITUTIONAL SHAREHOLDER SERVICES
                   RECOMMENDS AGAINST FREEDMAN GROUP PROPOSALS
                              -------


         Northvale, New Jersey (September 24, 2002) - Elite Pharmaceuticals,
Inc. (AMEX: ELI) today announced that Institutional Shareholder Services, Inc.
(ISS) has recommended that stockholders execute Elite's BLUE proxy card to
revoke or withhold consents sought by the Freedman Group to remove all of the
Company's independent directors and replace them with hand-picked members of the
Freedman Group. ISS is widely recognized as the nation's leading independent
proxy advisory firm. Its recommendations are relied upon by hundreds of major
institutional investment firms, mutual funds, and other fiduciaries throughout
the country. The Freedman Group's consent solicitation ends on October 4, 2002.

         In its report, ISS states:

         "Nowhere in the [Freedman Group's] written material does the [Freedman
         Group] outline a specific strategy with respect to how the company can
         expand its product line, improve its product development process, or
         enter into new collaborative agreements with other drug companies.
         Ultimately, the [Freedman Group's] plan is insufficient for the purpose
         of controlling the board...."

         "The [Freedman Group's] slate does not appear to have the relevant
         industry and FDA regulatory expertise. The company is at a critical
         stage in its development .... As such, a board that is well equipped
         with relevant industry and FDA regulatory experience is vital to the
         company's success."

         The ISS Report concludes as follows:

         "[t]he company is at a critical stage in its development. Electing the
         [Freedman Group's] slate poses a significant risk to the company and
         its shareholders for the following reasons. First, the [Freedman
         Group's] slate does not appear to have any relevant FDA expertise or
         expertise in the areas of developing and/or manufacturing drug delivery
         products. Second, the [Freedman Group's] plan to improve shareholder
         value is simply too vague and insufficient for assuming control of the
         board. Management, on the other hand, has implemented a business plan
         which: (1) addresses the FDA regulatory issues and the manufacturing
         and development needs of the company's drug delivery products; and (2)
         positions the company for accelerated growth as indicated by expanded
         research and development activities and alliances with big
         pharmaceutical companies. Moreover, management's nominees have relevant
         industry and FDA regulatory experience to execute the company's goals.
         ISS concludes that there is no compelling evidence to suggest that a
         change in control of the board is warranted. The current board should
         be given an opportunity to grow the company in hopes of maximizing
         shareholder value."

         Commenting on the ISS Report, Atul M. Mehta, Chief Executive Officer of
Elite, said: "We are very pleased that ISS has recommended against the Freedman
Group's proposals. The ISS recommendation reaffirms our belief that the current
Board is more qualified than the Freedman Group's hand-picked slate to lead the
Company in its continuing growth and development. More importantly, however, ISS
provides a source for all stockholders, both big and small, who are looking for
the judgment of a neutral party, well experienced in these issues, to guide
their vote."

         Stockholders  who would like  additional  information  on voting should
call  Georgeson  Shareholder  Communications  Inc. at (866)-297-1267.

FOR FURTHER INFORMATION, CONTACT:

Jonathan Fassberg of The Trout Group
Phone:  (212) 477-9007 Ext. 16


Source:  Elite Pharmaceuticals, Inc.
Website:  http://www.elitepharma.com