EXHIBIT 99.1



CHATTEM, INC. AND SUBSIDIARIES

SCHEDULE II  VALUATION AND QUALIFYING ACCOUNTS

(In thousands)



|                                       |  |                              |       |                                            |   |                                   |  |   |                     |     |                         |   |        |  |   |      
|-------------------------------------- |  | ---------------------------- | ----- | ------------------------------------------ | - | --------------------------------- |  | - | ------------------- | --- | ----------------------- | - | ------ |  | - | -----
|                                       |  | Balance atBeginning ofPeriod |       | Charged to NetSales, Costs andExpenses (2) |   | Charged to OtherAccounts Describe |  |   | AccountsWritten off |     | Balance at Endof Period
|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
|                                       |  |                              |       |                                            |   |                                   |  |   |                     |     |                         |   |        |  |   |      
|                                       |  |                              |       |                                            |  
|Year ended November 30, 2002:          |  |                              |       |                                            |   |                                   |  |   |                     |     |                         |   |        |  |   |      
|Reserves deducted from asset accounts: |  |                              |       |                                            |   |                                   |  |   |                     |     |                         |   |        |  |   |      
|Allowance for doubtful accounts        |  | $                            | 500   |                                            | $ | 1,537                             |  | $ |                    |     |                         | $ | 1,075  |  | $ | 962  
|Allowance for customer returns         |  |                              | 1,417 |                                            |   | 5,410                             |  |   | 175                 | (1) |                         |   | 4,419  |  |   | 2,583
|Allowance for cash discounts           |  |                              | 308   |                                            |   | 4,506                             |  |   |                    |     |                         |   | 4,462  |  |   | 352  
|                                       |  |                              |       |                                            |   |                                   |  |   |                     |     |                         |   |        |  |   |      
|                                       |  | $                            | 2,225 |                                            | $ | 11,453                            |  | $ | 175                 |     |                         | $ | 9,956  |  | $ | 3,897
|                                       |  |                              |       |                                            |   |                                   |  |   |                     |     |                         |   |        |  |   |      
|                                       |  |                              |       |                                            |  
|Year ended November 30, 2001:          |  |                              |       |                                            |   |                                   |  |   |                     |     |                         |   |        |  |   |      
|Reserves deducted from asset accounts: |  |                              |       |                                            |   |                                   |  |   |                     |     |                         |   |        |  |   |      
|Allowance for doubtful accounts        |  | $                            | 1,025 |                                            | $ | 533                               |  | $ |                    |     |                         | $ | 1,058  |  | $ | 500  
|Allowance for customer returns         |  |                              | 1,245 |                                            |   | 5,100                             |  |   |                    |     |                         |   | 4,928  |  |   | 1,417
|Allowance for cash discounts           |  |                              | 391   |                                            |   | 4,083                             |  |   |                    |     |                         |   | 4,166  |  |   | 308  
|                                       |  |                              |       |                                            |   |                                   |  |   |                     |     |                         |   |        |  |   |      
|                                       |  | $                            | 2,661 |                                            | $ | 9,716                             |  | $ |                    |     |                         | $ | 10,152 |  | $ | 2,225
|                                       |  |                              |       |                                            |   |                                   |  |   |                     |     |                         |   |        |  |   |      

---

|(1) | Assumed liability recorded in conjunction with purchase of Selsun Blue on March 28,2002.
|--- | ----------------------------------------------------------------------------------------

|(2) | 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.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------