** **
**EXHIBIT      99.1**

**CHATTEM,      INC. AND SUBSIDIARIES**

**SCHEDULE      II - VALUATION AND QUALIFYING ACCOUNTS**

|    Description                                     |   |  Balance                atBeginning                ofPeriod    |   |  Charged                to NetSales,                Costs andExpenses                (1) |   |  Charged                to OtherAccounts                -Describe |   |   AccountsWritten                off |    |  Balance                at EndofPeriod |   |
|-------------------------------------------------------------------|--------|------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------|--------|------------------------------------------------|---------|---------------------------------------------|--------|
|                                                              |   |                                                                               |   |                                                                                          |   |                                                                   |   |                                           |    |                                        |   |
| Year                ended November 30, 2005:                      |   |                                                                               |   |                                                                                          |   |                                                                   |   |                                           |    |                                        |   |
|   Reserves                deducted from asset accounts: |   |                                                                               |   |                                                                                          |   |                                                                   |   |                                           |    |                                        |   |
| Allowance                for doubtful accounts                    |   | $                                                                                  | 750    |                                                                                          | $      | (296                                                                   | )      | $                                              | — |                                        | $      | 151 |   | $ | 303 |   |
|   Allowance                for customer returns         |   |                                                                               | 515    |                                                                                          |   | 3,933                                                                  |   |                                           | — |                                        |   | 2,903 |   |   | 1,545 |   |
|   Allowance                for cash discounts           |   |                                                                               | 417    |                                                                                          |   | 5,559                                                                  |   |                                           | — |                                        |   | 5,486 |   |   | 490 |   |
|                                                              |   | $                                                                                  | 1,682  |                                                                                          | $      | 9,196                                                                  |   | $                                              | — |                                        | $      | 8,540 |   | $ | 2,338 |   |
| Year                ended November 30, 2004:                      |   |                                                                               |   |                                                                                          |   |                                                                   |   |                                           |    |                                        |   |   |   |   |   |   |
|   Reserves                deducted from asset accounts: |   |                                                                               |   |                                                                                          |   |                                                                   |   |                                           |    |                                        |   |   |   |   |   |   |
| Allowance                for doubtful accounts                    |   | $                                                                                  | 1,016  |                                                                                          | $      | (362                                                                   | )      | $                                              | — |                                        | $      | (96 | ) | $ | 750 |   |
|   Allowance                for customer returns         |   |                                                                               | 2,214  |                                                                                          |   | 1,248                                                                  |   |                                           | — |                                        |   | 2,947 |   |   | 515 |   |
|   Allowance                for cash discounts           |   |                                                                               | 364    |                                                                                          |   | 5,176                                                                  |   |                                           | — |                                        |   | 5,123 |   |   | 417 |   |
|                                                              |   | $                                                                                  | 3,594  |                                                                                          | $      | 6,062                                                                  |   | $                                              | — |                                        | $      | 7,974 |   | $ | 1,682 |   |
|                                                              |   |                                                                               |   |                                                                                          |   |                                                                   |   |                                           |    |                                        |   |   |   |   |   |   |
| Year                ended November 30, 2003:                      |   |                                                                               |   |                                                                                          |   |                                                                   |   |                                           |    |                                        |   |   |   |   |   |   |
|   Reserves                deducted from asset accounts: |   |                                                                               |   |                                                                                          |   |                                                                   |   |                                           |    |                                        |   |   |   |   |   |   |
| Allowance                for doubtful accounts                    |   | $                                                                                  | 962    |                                                                                          | $      | 263                                                                    |   | $                                              | — |                                        | $      | 209 |   | $ | 1,016 |   |
|   Allowance                for customer returns         |   |                                                                               | 2,583  |                                                                                          |   | 3,477                                                                  |   |                                           | — |                                        |   | 3,846 |   |   | 2,214 |   |
|   Allowance                for cash discounts           |   |                                                                               | 352    |                                                                                          |   | 4,729                                                                  |   |                                           | — |                                        |   | 4,717 |   |   | 364 |   |
|                                                              |   | $                                                                                  | 3,897  |                                                                                          | $      | 8,469                                                                  |   | $                                              | — |                                        | $      | 8,772 |   | $ | 3,594 |   |
|                                                              |   |                                                                               |   |                                                                                          |   |                                                                   |   |                                           |    |                                        |   |   |   |   |   |   |
|                                                              |   |                                                                               |   |                                                                                          |   |                                                                   |   |                                           |    |                                        |   |   |   |   |   |   |

| (1)   | Additions              to the allowances for customer returns and cash discounts are recorded              as              a reduction to net sales. An increase in the allowance for doubtful              accounts is recorded as a component of selling, general and administrative              expenses. |
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