** **
**EXHIBIT      99.1**

**CHATTEM,      INC. AND SUBSIDIARIES**

**SCHEDULE      II - VALUATION AND QUALIFYING ACCOUNTS**

|    Description                         |   |  Balance                atBeginning                ofPeriod    |   |  Charged                to Net Sales,                Costs andExpenses                (1) |   |  Charged                to OtherAccounts                -Describe |   |   AccountsWritten                off |    |  Balance                at EndofPeriod |   |
|-------------------------------------------------------|--------|------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------|--------|------------------------------------------------|---------|---------------------------------------------|--------|
|                                                  |   |                                                                               |   |                                                                                           |   |                                                                   |   |                                           |    |                                        |   |
| Year                ended November 30, 2006:          |   |                                                                               |   |                                                                                           |   |                                                                   |   |                                           |    |                                        |   |
| Reserves                deducted from asset accounts: |   |                                                                               |   |                                                                                           |   |                                                                   |   |                                           |    |                                        |   |
| Allowance                for doubtful accounts        |   | $                                                                                  | 303    |                                                                                           | $      | (93                                                                    | )      | $                                              | — |                                        | $      | (136 | ) | $ | 346 |   |
| Allowance                for customer returns         |   |                                                                               | 1,545  |                                                                                           |   | 5,269                                                                  |   |                                           | — |                                        |   | 663 |   |   | 6,151 |   |
| Allowance                for cash discounts           |   |                                                                               | 490    |                                                                                           |   | 6,297                                                                  |   |                                           | — |                                        |   | 6,095 |   |   | 692 |   |
| Accrual                for vendor allowances          |   |                                                                               | 1,079  |                                                                                           |   | 16,619                                                                 |   |                                           | — |                                        |   | 13,980 |   |   | 3,718 |   |
|                                                  |   | $                                                                                  | 3,417  |                                                                                           | $      | 28,092                                                                 |   | $                                              | — |                                        | $      | 20,602 |   | $ | 10,907 |   |
|                                                  |   |                                                                               |   |                                                                                           |   |                                                                   |   |                                           |    |                                        |   |   |   |   |   |   |
| 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 |   |
| Accrual                for vendor allowances          |   |                                                                               | 1,924  |                                                                                           |   | 11,116                                                                 |   |                                           | — |                                        |   | 11,961 |   |   | 1,079 |   |
|                                                  |   | $                                                                                  | 3,606  |                                                                                           | $      | 20,312                                                                 |   | $                                              | — |                                        | $      | 20,501 |   | $ | 3,417 |   |
| 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 |   |
| Accrual                for vendor allowances          |   |                                                                               | 3,730  |                                                                                           |   | 10,972                                                                 |   |                                           | — |                                        |   | 12,778 |   |   | 1,924 |   |
|                                                  |   | $                                                                                  | 7,324  |                                                                                           | $      | 17,034                                                                 |   | $                                              | — |                                        | $      | 20,752 |   | $ | 3,606 |   |
|                                                  |   |                                                                               |   |                                                                                           |   |                                                                   |   |                                           |    |                                        |   |   |   |   |   |   |
|                                                  |   |                                                                               |   |                                                                                           |   |                                                                   |   |                                           |    |                                        |   |   |   |   |   |   |
|                                                  |   |                                                                               |   |                                                                                           |   |                                                                   |   |                                           |    |                                        |   |   |   |   |   |   |

| (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. An increase to the accrual for vendor allowances is recorded                either as a reduction to net sales or as a component of advertising                and                promotion expense. |
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