UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

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                                 NEOPHARM, INC.
                (Name of Registrant as Specified in its Charter)

   (Name of Person(s) Filing Consent Statement, if other than the Registrant)

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[NeoPharm Logo graphic omitted]

***FOR IMMEDIATE RELEASE ***

CONTACT:
Larry Kenyon, Chief Financial Officer        Paul Arndt, Corporate
lkenyon@neophrm.com                          Communications Manager
847-295-8678 x 210                           parndt@neophrm.com
                                             847-295-8678 x 215

               AKORN IN DEFAULT UNDER PROMISSORY NOTE TO NEOPHARM

LAKE FOREST, ILLINOIS - OCTOBER 6, 2004 - NeoPharm, Inc. (Nasdaq: NEOL)
announced today that an event of default has occurred under Akorn, Inc.'s
$3,250,000 Promissory Note to NeoPharm. NeoPharm had originally provided the
financing to Akorn to help fund the completion of a manufacturing facility, a
portion of the production of which would be allocated to provide lyophilization
manufacturing services for NeoPharm's lyophilized drug product candidates. The
facility has been subject to warning letter sanctions imposed by the FDA
pursuant to Form 483. Under the terms of the Note, an event of default occurs
if NeoPharm's Processing Agreement with Akorn fails to go into effect on or
before October 1, 2004. Due to the fact that, as of October 4, 2004, the
warning letter sanctions imposed by the FDA pursuant to Form 483 with respect
to Akorn's manufacturing facility had not been lifted, the Processing Agreement
did not timely go into effect and an event of default occurred automatically
under the Note. As a result of this default, outstanding principal and interest
under the Note became immediately due and payable, subject to the applicable
provisions of the subordination agreement between NeoPharm and Akorn's senior
lenders. The subordination agreement provides, among other things, that Akorn
may not make any payments to NeoPharm, and NeoPharm may not enforce certain
remedies against Akorn under the Note until Akorn's senior debt is paid in full
and the commitment for the senior debt is terminated. NeoPharm does not
anticipate that this default will have an adverse impact on its ability to
acquire drug supplies for clinical trials using NeoPharm's lyophilized drug
product candidates or on its financial results.

"We have prepared a manufacturing plan with both primary and secondary
providers of lyophilization manufacturing services other than Akorn and we have
previously written off the entire amount of the Note," said Gregory P. Young,
NeoPharm's President and Chief Executive Officer. "As a result, Akorn's failure
to meet its obligations should not have an impact on our clinical trials or our
financial results. In the meantime, we intend to pursue our rights under the
Promissory Note."

NeoPharm's former chairman, John Kapoor, is Akorn's chairman and largest
stockholder on a fully diluted basis. Mr. Kapoor recently began a solicitation
of consents of NeoPharm's stockholders to remove all of NeoPharm's independent
directors and replace them with nominees selected by Mr. Kapoor.

About NeoPharm
NeoPharm, Inc., based in Lake Forest, IL, is a publicly traded
biopharmaceutical company dedicated to the research, development and
commercialization of new and innovative cancer drugs for therapeutic
applications. The Company has a portfolio of compounds in various stages of
development. Additional information about NeoPharm, recent news releases, and
scientific abstracts related to NeoPharm's clinical and pre-clinical research
can be obtained by visiting NeoPharm's Website at: www.neophrm.com, or calling
Paul Arndt at 847-295-8678, x215.
_______________________________________________________________________________
Forward Looking Statements - This press release contains "forward-looking
statements" within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. The Company has tried to
identify such forward-looking statements by use of such words as "expects,"
"intends," "hopes," "anticipates," "believes," "could," "may," "evidences" and
"estimates," and other similar expressions, but these words are not the
exclusive means of identifying such statements. Such statements include, but
are not limited to, any statements relating to the Company's drug development
program, including, but not limited to the initiation, progress and outcomes of
clinical trials of the Company's drug product candidates, and any other
statements that are not historical facts. Such statements involve risks and
uncertainties, including, but not limited to, those risks and uncertainties
relating to difficulties or delays in financing, development, testing,
regulatory approval, production and marketing of the Company's drug and
non-drug compounds, uncertainty regarding the availability of third party
production capacity, uncertainty regarding the outcome of damage claims made by
or against the Company, the Company's ability to cut back on its funding of
certain of its development projects in order to conserve its cash resources,
the ability of the Company to procure additional future sources of financing,
unexpected adverse side effects or inadequate therapeutic efficacy of the
Company's drug and non-drug compounds that could slow or prevent products
coming to market, uncertainty regarding the Company's ability to market its
drug and non-drug products directly or through independent distributors, the
uncertainty of patent protection for the Company's intellectual property or
trade secrets, uncertainty regarding the efforts of John N. Kapoor to obtain
consent for, among other things, removal of four of the Company's current
independent directors, and other risks detailed from time to time in filings
the Company makes with the Securities and Exchange Commission including its
annual reports on Form 10-K and quarterly reports on Forms 10-Q. Such
statements are based on management's current expectations, but actual results
may differ materially due to various factors, including those risks and
uncertainties mentioned or referred to in this press release. Accordingly, you
should not rely on these forward-looking statements as a prediction of actual
future results.