Schoengold & Sporn, P.C. Client Alleges OSI Pharmaceuticals, Inc. (OSIP) Mislead Investors in Public Offering on November 10, 2004

NEW YORK, NY, January 25, 2005 /PRIME ZONE/ - Schoengold & Sporn, P.C. filed a class action lawsuit against OSI Pharmaceuticals, Inc. (OSIP or the Company) (NASDAQ: OSIP) and certain key officers and directors in the United States District Court for the Eastern District of New York on behalf of all purchasers of OSIP securities during the period between October 26, 2004 and November 22, 2004 (the AClass Period@). If you purchased OSIP securities pursuant to the Company's allegedly false and misleading Prospectus dated November 10, 2004, distributed in connection with the Company's offering of $445 million of common stock, or if you had otherwise purchased OSIP securities during the Class Period, and subsequently sold those securities at a loss you can join the lawsuit pursuing securities claims against the Company and its officer and director defendants by visiting SSLL=s website at www.spornlaw.com or contacting SSLL toll free at (866) 348-7700 or via e-mail at shareholderrelations@spornlaw.com. However, please note that the deadline to seek lead plaintiff status in this case expires February 14, 2005.

The Complaint alleges that defendants OSIP, Colin Goodard, Robert I. Ingram, Gabriel Leung, Nicole Onetto, Robert L. Van Nostrand, John P. White and certain members of the Company=s Board of Director violated Section 11, 12(a)(2) and 15 of the Securities Act of 1933 having caused, allowed or permitted false and materially misleading registration statement and prospectus dated November 10, 2004 to be issued, whereby $445,000,000 of OSIP=s stock was sold to the investing public at artificially inflated prices. In addition, defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations about the Company=s new anti-cancer drug Tarecva, which failed to disclose and /or misrepresented the following adverse facts, among others, that the defendants knew, at least as early as October 26, 2004 that: (1) the Food and Drug Administration (AFDA@) would require that OSIP disclose in it labeling for Tarceva that no survival benefit was observed in the epidermal growth factor receptor (AEGFR@)-negative subgroup; and (2) OSIP did not have sufficient data to claim that Tarceva provided a survivability benefit for EGFR-negative patients. As a result of the foregoing, the defendants= positive statements only served to artificially inflate the Company=s stock price.

On November 19, 2004, a Piper Jaffray analyst report commented on the FDA=s approval of Tarceva and a surprise in the labeling of Tarceva. The Asurprise@ in labeling shows that contrary to the Company=s prior representation to the investing public, there is currently no scientifically significant data for OSIP=s statement that Tarceva provided a survivability benefit for EGFR-negative patients. The revelation in this analyst report caused OSIP=s stock price to drop from $64.25 per share on November 18, 2004 to $58.16 per share on November 19, 2004, on volume of 18,496,800 -- over ten times the previous day=s volume. The Company=s common stock price continued to drop following the publication of the Piper Jaffray analyst report to $54.22 per share on Monday, November 22, 2004.

If you purchased OSIP securities pursuant to the November 10, 2004 Prospectus or in open market during the Class Period and sold those securities at a loss you may request that the Court appoint you as a lead plaintiff. However, you must do so before February 14, 2005.

Schoengold & Sporn was established in 1962 and has specialized in securities fraud litigation for over 35 years. The firm was cited by the Wall Street Journal in a study of the largest recoveries, as a percentage of overall damages, for its recoveries in the Anadigics and Versatility cases, which ranked first and third for recovering 44% and 30%, respectively, of plaintiffs= overall losses. Most recently, in 2004, the firm recovered $40 million for a class of Nicor, Inc. shareholders, representing approximately 35% of recoverable damages.

If you would like to further discuss your rights regarding the appointment of lead plaintiff and your interest in the class action, you may call collect or otherwise contact the undersigned, who will be pleased to assist:

CONTACT:
Jay P. Saltzman, Esq.
Ashley Kim, Esq.
Schoengold & Sporn, P.C.
19 Fulton Street, Suite 406
New York, New York 10038
Tel: (212) 964-0046
Fax: (212) 267-8137
Toll Free: (866) 348-7700
E-Mail: shareholderrelations@spornlaw.com
Website: www.spornlaw.com

SOURCE: Schoengold & Sporn, P.C.

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