Due in large part to the Company's acquisition in March 2001 of the Schweizerhall Pharma division from Schweizerhall Holding AG, including its individual business operations in Hamburg, Paris, Singapore, Amsterdam and Mumbai, the Company reported net sales of $47,641,000 for the quarter ended September 30, 2001, a 16% increase from $41,051,000 for the quarter ended September 30, 2000. Additionally, the Company reported gross profit of $7,246,000 for the quarter ended September 30, 2001, a 23% increase from $5,869,000 for the quarter ended September 30, 2000.

For the quarter ending September 2001, the Company reported net income of $535,000, or $.08 per basic and fully diluted common share. This represents a 42% decrease from $929,000 or $.15 per basic and fully diluted common share for the quarter ended September 30, 2000. This decrease in net income was due in large part to our lower domestic results.

Our domestic results for July and August were comparable to the previous year and we fully expected September to be of the same order. Unfortunately, due to the tragic events of September 11 and the resulting slowdown in business immediately thereafter (particularly in the chemical industry), our revenue and gross profit was substantially less than we expected. This clearly had a severe negative impact on the earnings for this year's first quarter.

Our international results during this first quarter were very satisfactory and the acquired business continues to be accretive to earnings.

We are very pleased that we have completed the integration of the Schweizerhall acquisition and are operating all of our businesses on a global basis. This was done within the six-month time frame that we planned for.

We are refocusing our efforts on cost containment in many areas with an emphasis on materials management and logistics. We have begun to implement our global financial strategy and we are now using our financial resources in a more efficient way, which we expect should positively impact our earnings in the future.

We also are pleased to report that Aceto (Shanghai) Ltd. commenced substantial commercial activities in October.

We fully expect that as the world economy recovers from the tragic events of September 11, we will show better financial results for the balance of this fiscal year.

Consolidated Statements of Income (In Thousands Except per Share Amounts)

First Quarter Ended September 30, ----------- 2001 2000 Net Sales $47,641 $41,051 Cost of Sales 40,395 35,182 Gross Profit 7,246 5,869 Selling, General and Administrative Expenses 6,321 4,629 Operating Profit 925 1,240 Other Income (Expense) Net of Interest Expense (88) 301 Income Before Income Taxes 837 1,541 Provision for Income Taxes 302 612 Net Income 535 929 === === Net Income Per Common Share Basic $0.08 $0.15 Diluted $0.08 $0.15 Weighted Average Shares Outstanding Basic 6,508 6,037 Diluted 6,536 6,091

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The forward-looking statements are based on current expectations, estimates and projections made by management. The Company intends for the forward-looking statements to be covered by the safe-harbor provisions for forward-looking statements. Words such as "anticipates," "expects," "intends," "plans," "believes," "seeks," "estimates," or variations of such words are intended to identify such forward-looking statements. The forward-looking statements include, but are not limited to, all statements related to the Company's global financial strategy, future EPS, and expected financial results for the balance of this fiscal year. All forward-looking statements in this news release are made as of the date hereof, and the Company assumes no obligation to update these forward-looking statements whether as a result of new information, future events or otherwise. The forward-looking statements are subject to risks and uncertantities that could cause actual results to differ materially from those set forth or implied by any forward-looking statements. These uncertantities include, but are not limited to, anticipated cost savings and operational synergies, economic and political conditions in the U.S. and abroad, as well as other risks detailed in the Company's SEC reports, including the Company's Form 10-K and other filings with the SEC. Copies of these filings are available through the SEC's electronic data gathering analysis and retrieval system (EDGAR) at www.sec.gov.

ABOUT ACETO

Aceto Corporation, which was incorporated in 1947, is a global leader in the distribution and marketing of Pharmaceutical and Specialty Chemicals used principally in the agricultural, color, pharmaceutical, surface coating/ink and general chemical industries. With offices in over nine countries, Aceto Corporation distributes over 1,000 chemicals in these and other fields. On March 26, 2001, Aceto Corporation acquired the Schweizerhall Pharma division from Schweizerhall Holding AG, including its individual business operations in Hamburg, Paris, Singapore, Amsterdam and Mumbai.

For more information on Aceto, please visit our website at www.aceto.com, or call Leonard S. Schwartz directly at 516-627-6000.