IGI Laboratories Announces Closing of Initial Purchasers' Exercise in Full of Option to Purchase an Additional $18.75M Aggregate Principal Amount of 3.75% Convertible Senior Notes Due 2019

IGI Laboratories, Inc. (NYSE MKT: IG; "IGI" or the "Company") announced today the closing of the initial purchasers' exercise in full of their option to purchase an additional $18.75 million aggregate principal amount of the Company's 3.75% Convertible Senior Notes due 2019 (the "Notes"), in connection with the Company's previously announced offering of $125 million aggregate principal amount of Notes in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. IGI estimates that the total net proceeds from the sale of the additional Notes will be approximately $18.2 million after deducting the initial purchasers' discount. With the exercise of the initial purchasers' option, this brings the total estimated net proceeds to a total of approximately $138.7 million, after deducting the initial purchasers' discount and estimated offering expenses payable by IGI. IGI intends to use the net proceeds from the sale of the Notes for general corporate purposes, including, without limitation, capital expenditures and potential future acquisitions and strategic transactions. IGI has no pending agreement or understanding with respect to any such acquisition or transaction. The Notes and any common stock issuable upon conversion of the Notes have not been registered under the Securities Act, applicable state securities laws or the securities laws of any other jurisdiction, and may not be offered or sold in the United States without registration or an applicable exemption from registration requirements. IGI does not intend to file a registration statement for the resale of the Notes or any common stock issuable upon conversion of the Notes. This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation, or sale would be unlawful.