From Nov 16, 2010 CC transcript:

David Altreuer - - Private Investor

Yes, well, it is a nickel a share, you can't get much lower than that. So I guess it is attractive (multiple speakers) as long as you

think it is going to survive.

But my other concern is that when you have this many shares outstanding and there will be more as a result of the closing with

Epic, oftentimes companies entertain a reverse split to try to reduce the number of the float and increase the price of the stock.

Have you had any discussions along the lines of doing something like that?

Jerry Treppel - Elite Pharmaceuticals, Inc. - Chairman, CEO

I think it would be fair to say that we are well aware that the capitalization structure of the Company is an issue; okay? So let's

take care of that. It would also be fair to say that we do discuss what we can do about it. You know, I think we are all on the

same page here.

David Altreuer - - Private Investor

Okay. My experience of watching the market for the last 45 years tells me that reverse splits are initially the kiss of death for the

stock. It usually goes down dramatically after something like that.

But that is not saying that you don't have the substance to actually get it back up again, based on future sales and earnings and new products.

Jerry Treppel - Elite Pharmaceuticals, Inc. - Chairman, CEO

I have also as an analyst -- I have been around for 30 years, so it's not quite 45.

David Altreuer - - Private Investor

Okay.

Jerry Treppel - Elite Pharmaceuticals, Inc. - Chairman, CEO

Enough to have gray hairs. Generally what has tended to happen with reverse splits is the companies that do it are ones that

have issues, okay? In order for something like that to be successful it has to be done in conjunction with improving fundamentals

of a company.

David Altreuer - - Private Investor

Yes, exactly.

Jerry Treppel - Elite Pharmaceuticals, Inc. - Chairman, CEO

Elite is improving. We are very clearly improving. So that has to be considered.

Carter Ward - Elite Pharmaceuticals, Inc. - CFO

Yes, I think to use Jerry's analogy, the capitalization structure that we currently have is really a result of the issues of the past.

David Altreuer - - Private Investor

Okay.