ECR Pharmaceuticals to commercialize and manufacture ZolpiMist in the U.S. and Canada

NovaDel Pharma Inc. (NYSE AMEX: NVD) today announced its entry into an exclusive license and distribution agreement with ECR Pharmaceuticals Company, Inc., a wholly owned subsidiary of Hi-Tech Pharmacal Co., Inc. to commercialize and manufacture ZolpiMist™ in the United States and Canada. ZolpiMist™ is our oral spray formulation of zolpidem tartrate approved by the FDA in December of 2008.

Under the terms of the agreement, ECR will pay NovaDel $3 million upon the execution of the agreement. ECR will assume responsibility for manufacturing and marketing the product in the United States and Canada. In addition, ECR will pay royalties of up to 15% on net sales of ZolpiMist™ as well as an additional milestone payment if sales reach a specified level.

Steven B. Ratoff, Chairman and Interim CEO said, “This is an important milestone for our company as it recognizes the opportunity of the use of our NovaMist™ oral spray technology in what we believe to be an important and sizable clinical application. We believe that Hi-Tech has the ability to build a solid position for ZolpiMist™ in the market for prescription sleep aids.”

Mr. Ratoff continued, “This agreement, in addition to the recently announced license of NitroMist™, will allow us to initiate further development of our product pipeline utilizing our patented NovaMist™ oral spray technology.”