EXHIBIT 99.1

CHATTEM, INC. AND SUBSIDIARIES

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS

(In thousands)

Description	Balance at Beginning of Period		Charged to Net Sales, Costs and Expenses (1)			Charged to Other Accounts - Describe		Accounts Written off			Balance at End of Period
Year ended November 30, 2005:
Reserves deducted from asset accounts:
Allowance for doubtful accounts	$	750	$	(296	)	$	—	$	151		$	303
Allowance for customer returns		515		3,933			—		2,903			1,545
Allowance for cash discounts		417		5,559			—		5,486			490
	$	1,682	$	9,196		$	—	$	8,540		$	2,338
Year ended November 30, 2004:
Reserves deducted from asset accounts:
Allowance for doubtful accounts	$	1,016	$	(362	)	$	—	$	(96	)	$	750
Allowance for customer returns		2,214		1,248			—		2,947			515
Allowance for cash discounts		364		5,176			—		5,123			417
	$	3,594	$	6,062		$	—	$	7,974		$	1,682
Year ended November 30, 2003:
Reserves deducted from asset accounts:
Allowance for doubtful accounts	$	962	$	263		$	—	$	209		$	1,016
Allowance for customer returns		2,583		3,477			—		3,846			2,214
Allowance for cash discounts		352		4,729			—		4,717			364
	$	3,897	$	8,469		$	—	$	8,772		$	3,594

(1)   Additions to the allowances for customer returns and cash discounts are recorded as a reduction to net sales. An increase in the allowance for doubtful accounts is recorded as a component of selling, general and administrative expenses.