Related Party Transactions and Outside Related Director Information

New River Pharmaceuticals, Inc. (NRPH)

4/4/2006 Proxy Information

Mr. Krish S. Krishnan, a director and our Chief Financial Officer and Chief Operating Officer, is the husband of Ms. Suma M. Krishnan, our Vice President, Product Development.

The Audit Committee reviews all transactions required to be disclosed in our filings with the SEC pursuant to Item 404 of Regulation S-K for potential conflict of interest situations on an ongoing basis. All such transactions must be approved by the Audit Committee.

Prior to the initial public offering of New River Common Stock in August 2004, certain administrative services and executive office space were provided to us at no charge by Third Security, LLC, an entity owned by Mr. Kirk and of which Mr. Kirk and Mr. Krishnan serve as Senior Managing Directors. Such services included accounting, finance, information technology, human resources and executive management. Upon completion of the initial public offering, we entered into an administrative services agreement, dated as of August 10, 2004, with Third Security under which Third Security agreed to continue to provide certain limited administrative services for a market rate, and we entered into a lease agreement, dated as of August 10, 2004, pursuant to which we pay a market rate for the executive office space leased to us by Third Security. The total amounts incurred by us under the administrative services agreement and the lease agreement during 2005 were $355,950 and $77,859, respectively.