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RECEIVED

CLERK’S OFFICE

April 26, 2004

APR

302004

STATE

OF ILLINOIS

Charles E. Matoesian

Pollution Control

Board

Division ofLegal Counsel

Illinois Environmental Protection Agency

1021

North Grand Avenue East

P0 Box

19276

Springfield, Illinois 62794

Re: Wallace v. IEPA, PCB

02-207 (Air Variance)

Dear Mr. Matoesian,

As per condition

3 .h. ofthe Order granting a variance in the above

referenced matter, MedPointe Healthcare, Inc.

is submitting this letter as a

progress report for the period from October

1, 2003 through March 31, 2004.

As noted previously, the Wallace Pharmaceuticals’ name has been changed

to MedPointe Pharmaceuticals.

According to the Order, MedPointe is required to report on the progress of

the development ofa suitable alternative to the usage ofethanol in the

affected processes.

We are pleased to report that research and development

of direct-compression manufacturing processes has been successful,

and do

not involve the use ofethanol.

These research efforts should satisf~’

conditions 3.a., 3.b., and 3.c. of the Order, in that the bench-top, pilot, and

commercial scale processes were successful for these products, and do not

utilize VOM solvents.

As was previously reported, a dry granulation process which uses no ethanol

is in use for Tussi

12-D Tablets, our largest volume coughlcold tablet

product.

We expect to continue further evaluation ofthe dry granulation

processes and substitute, where possible,

for the ethanol-based wet

granulation process.

434 North Morgan Street, Decatur, IL 62523-1125

217-424-8400

www.medpointepharma.com

---

We continue our research efforts with emphasis being placed on non-VOM

products and processes

for our future product development. These efforts

should not only minimize our VOM emissions but also presumably keep

them well within our pre-variance levels.

In light ofthe items mentioned

above, it is likely that add-on control technology will not be necessary to

achieve compliance with our pre-variance limits of 12.5 tons per year.

At this writing, we expect our VOM emissions to be well below the

allowable variance limit of 25

tons per year.

Our VOM emissions for 2003,

which are being reported separately, were well below that level.

I trust this briefletter report satisfies the Order requirement for a progress

report. If any additional information is required please advise.

Sincerely,

William J. Taraszews

1,

.D.

Director, Pharmaceutical Production

cc:

Dorothy Gunn, Clerk

Illinois Pollution Control Board

State ofIllinois Center

100 West Randolph St.,

Suite

11-500

Chicago, IL

60601