Questcor Announces Financial Results for the First Quarter of 2006; Net Sales of Acthar Gel Increase 39% Over Fourth Quarter of 2005

Questcor's expanded 40 person sales force began their nationaldetailing efforts on March 1, 2006 and are now averaging over 4,000in-person sales calls on targeted neurologists per month.Additionally, in April 2006, Questcor exhibited and had a significantpresence at the 58th Annual American Academy of Neurology meeting.

"In the first quarter, we made great strides to advance ourefforts to establish Questcor as a leading CNS focused specialtypharmaceutical company. Early prescription and sales trends for ActharGel appear to validate our strategy and we look forward to thesetrends continuing through the rest of the year," said James Fares,President and CEO of Questcor.

"Moving forward, as demonstrated by our recent acquisition of U.S.rights to Doral(R) (quazepam), our focus will continue to be ongrowing and capitalizing on our core assets. In addition, we intend toevaluate additional opportunities to expand our neurology franchiseand, when appropriate, to build a promising development pipeline," hecontinued.

Financial Results for the Quarter Ended March 31, 2006

Questcor's net loss applicable to common shareholders totaled $3.0million, or $0.06 per common share for the quarter ended March 31,2006, compared to a net loss applicable to common shareholders of $0.1million, or $0.00 per common share, for the quarter ended March 31,2005. Questcor's financial results for the quarter ended March 31,2006 as compared to the quarter ended March 31, 2005 were primarilyimpacted by:

Sale of Non-Core Products - Questcor's financial results for thefirst quarter of 2006 included the net product sales of Acthar Gel.Total net product sales for the first quarter of 2005 included the netproduct sales of Acthar Gel, Nascobal(R), Ethamolin(R), Glofil(R)-125,and VSL#3(R). As previously reported, Questcor sold its non-coreproducts Nascobal, Ethamolin, and Glofil-125 in October 2005 to focusits promotional efforts on Acthar Gel and to provide capital forstrategic transactions and on-going operations. Also, in January 2005,Questcor's agreement to promote VSL#3 terminated. Net product sales ofActhar Gel were $2.0 million for the quarter ended March 31, 2006 ascompared to total net product sales of Acthar Gel, the divestedproducts, and VSL#3 of $4.5 million for the quarter ended March 31,2005.

Expansion of Questcor's Sales Organization - During the fourthquarter of 2005, Questcor made a strategic decision to expand itssales organization so as to effectively cover the nationwide audienceof physicians who are current and potential high prescribers of ActharGel and other products that treat CNS disorders. During the fourthquarter of 2005 and the first quarter of 2006, Questcor expanded itssales organization to 40 sales representatives and sales management.The expanded sales organization is now trained and fully deployed. Theexpansion of the sales organization was the primary factor resultingin an increase in selling, general and administrative expenses to $4.2million for the quarter ended March 31, 2006 as compared to $2.6million for the quarter ended March 31, 2005.

Elimination of Series B Preferred Stock, Debt, and ConvertibleDebentures - In January 2006, Questcor redeemed its outstanding SeriesB Preferred Stock for a cash payment of $7.8 million. During 2005,Questcor retired its outstanding debt and convertible debentures withcash payments of $6.2 million. The redemption of the Series BPreferred Stock and the retirement of Questcor's outstanding debt anddebentures improved Questcor's capital structure and eliminateddividends on the Series B Preferred Stock and interest andamortization on the retired debt and debentures. Dividends related tothe Series B Preferred Stock, interest on the retired debt anddebentures, and amortization of deemed discount on the debenturestotaled $0.5 million for the quarter ended March 31, 2005.

Quarter Ended March 31, 2006 Conference Call - Questcor will behosting a conference call to discuss these results and the acquisitionof Doral on Tuesday, May 9, 2006 at 8:30 a.m. Eastern Time (5:30 a.m.Pacific Time). Please call the following numbers to participate: (800)741-6056 (domestic) or (706) 679-3280 (international) and useconference ID number 8213744. Participants are asked to call the abovenumbers 5-10 minutes prior to the starting time.

This call is being webcast by Thomson/CCBN and can be accessed atQuestcor's website at www.questcor.com. The webcast is also beingdistributed through the Thomson StreetEvents Network to bothinstitutional and individual investors. Individual investors canlisten to the call at www.earnings.com, Thomson/CCBN's individualinvestor portal, powered by StreetEvents. Institutional investors canaccess the call via Thomson's password-protected event managementsite, StreetEvents (www.streetevents.com).

A telephonic replay of this call will be available from 12:00 p.m.Eastern Time on Tuesday, May 9, 2006 through 11:59 p.m. Eastern Timeon Tuesday, May 16, 2006. Please call (800) 642-1687 (domestic) or(706) 645-9291 (international) and use conference ID number 8213744.

About Questcor - Questcor Pharmaceuticals, Inc.(R) (AMEX:QSC) isa specialty pharmaceutical company that develops and commercializesnovel therapeutics for the treatment of neurological disorders.Questcor currently markets H.P. Acthar(R) Gel (repositorycorticotropin injection), an injectable drug indicated for thetreatment of exacerbations associated with Multiple Sclerosis andDoral(R) (quazepam) that is indicated for the treatment of insomnia,characterized by difficulty in falling asleep, frequent nocturnalawakenings, and/or early morning awakenings. For more information,please visit www.questcor.com.

Note: Except for the historical information contained herein, thispress release contains forward-looking statements that involve risksand uncertainties. Such statements are subject to certain factors,which may cause Questcor's results to differ from those reportedherein. Factors that may cause such differences include, but are notlimited to, Questcor's ability to accurately forecast and create thedemand for its products, the gross margin achieved from the sale ofits products, Questcor's ability to enforce its product returnspolicy, the accuracy of the prescription data purchased fromindependent third parties by Questcor, the sell-through by Questcor'sdistributors, the inventories carried by Questcor's distributors, andthe expenses and other cash needs for the upcoming periods, Questcor'sability to obtain finished goods from its sole source contractmanufacturers on a timely basis if at all, Questcor's potential futureneed for additional funding, Questcor's ability to utilize its netoperating loss carry forwards to reduce income taxes on the sale ofits products, uncertainties regarding Questcor's intellectual propertyand other research, development, marketing and regulatory risks, andto the ability of Questcor to implement its strategy and acquireproducts and, if acquired, to market them successfully as well as therisks discussed in Questcor's annual report on Form 10-K for the yearended December 31, 2005 and other documents filed with the Securitiesand Exchange Commission. The risk factors and other informationcontained in these documents should be considered in evaluatingQuestcor's prospects and future financial performance.

Questcor undertakes no obligation to publicly release the resultof any revisions to these forward-looking statements, which may bemade to reflect events or circumstances after the date hereof or toreflect the occurrence of unanticipated events.
Questcor Pharmaceuticals, Inc.
Selected Consolidated Balance Sheet Information
(In thousands)


March 31, December 31,
2006 2005
------------ ------------

Cash, cash equivalents and short-term
investments $15,176 $26,577
Working capital 13,743 16,121
Total assets 20,405 31,348
Preferred stock, Series A 5,081 5,081
Shareholders' equity 8,834 11,422


Questcor Pharmaceuticals, Inc.
Consolidated Statements of Operations
(In thousands, except per share amounts)



Three Months Ended
March 31,
2006 2005
---------- ---------
Net product sales $2,010 $4,498
Operating costs and expenses:
Cost of product sales (exclusive of
amortization of purchased technology) 626 748
Selling, general and administrative 4,170 2,618
Research and development 380 499
Depreciation and amortization 46 311
---------- ---------
Total operating costs and expenses 5,222 4,176
---------- ---------
Income (loss) from operations (3,212) 322
Other income (expense):
Non-cash amortization of deemed discount on
convertible debentures -- (108)
Interest income 181 35
Interest expense -- (139)
Rental income (expense), net (6) 43
---------- ---------
Other income (expense), net 175 (169)
---------- ---------
Net income (loss) (3,037) 153
Non-cash deemed dividend related to beneficial
conversion feature of Series B preferred stock -- 84
Dividends on Series B preferred stock -- 168
---------- ---------
Net loss applicable to common shareholders $(3,037) $(99)
========== =========
Net loss per common share applicable to common
shareholders - basic and diluted $(0.06) $0.00
========== =========
Shares used in computing net loss per share
applicable to common shareholders - basic and
diluted 54,562 51,216
========== =========

In addition to disclosing financial results prepared in accordancewith accounting principles generally accepted in the United States(GAAP), Questcor is disclosing information regarding EBITDA, which isdefined as earnings before net interest income (expense), taxes,depreciation and amortization, and non-cash amortization of deemeddiscount on convertible debentures. As required by the SEC concerningthe use of non-GAAP measures, Questcor is providing the followingreconciliation to net income (loss), which is the most directlycomparable GAAP measure. Questcor presents EBITDA because it is acommon alternative measure of performance that is used by managementas well as investors when analyzing the financial position andoperating performance of the Company. As EBITDA is a non-GAAPfinancial measure, it should not be considered in isolation or as asubstitute for net income (loss) or any other GAAP measure. Becauseall companies do not calculate EBITDA in the same manner, Questcor'sdefinition of EBITDA may not be consistent with that of othercompanies.
Questcor Pharmaceuticals, Inc.
Reconciliation of GAAP Net Income (Loss) to Non-GAAP EBITDA
(In thousands)

Three Months Ended
March 31,
2006 2005
--------- ----------

GAAP net income (loss) $(3,037) $153
Adjustments:
Net interest (income) expense (181) 104
Depreciation and amortization 46 311
Non-cash amortization of deemed
discount on convertible debentures -- 108
--------- ----------

Non-GAAP EBITDA - Positive (Negative) $(3,172) $676
========= ==========