DEPOMED PAYS PROMISSORY NOTE DUE ELAN

Depomed has announced that it has fulfilled its loan obligation to Elan Pharma International with an early lump sum payment of $9.1 million. The loan was not due until January 2006 with a projected balance due of $11.3 million at maturity. Elan agreed to accept early payment and retire the loan, including the common stock conversion feature associated with it. The loan was convertible into 1.5 million shares of Depomed common stock.

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