Bentley Pharmaceuticals Reports Continued Sales Growthand Improved Results for Fourth...

TAMPA, Fla.--(BUSINESS WIRE)--March 31, 1999--Bentley Pharmaceuticals, Inc. (AMEX:BNT), an international manufacturer, marketer, distributor and developer of pharmaceutical products, today reported results for the fourth quarter and year ended Dec. 31, 1998.

For the fourth quarter, the

Net loss for the year narrowed to $2,876,000 or 35 cents per common share from $3,815,000 or 97 cents per common share in 1997, and revenues increased to $15,243,000 from $14,902,000. Excluding the effect of a non-recurring charge of $1,176,000 representing the writeoff of previously capitalized acquisition costs, the net loss for 1998 would have been $1,700,000, or 21 cents per common share. Weighted average number of common shares outstanding was 8,431,000 in 1998 versus 4,072,000 in 1997.

James R. Murphy, president and CEO of Bentley, noted that the company improved its consolidated gross profit margins to 57 percent in 1998 from 46 percent in 1997. "The average gross margin in 1998 rose to 57 percent from 51 percent in the prior year for our Spanish subsidiary, Laboratorios Belmac S.A. At the same time, gross margins were no longer restrained in 1998 by the low margins associated with Chimos/LBF, the French subsidiary we divested in June 1997," Murphy said.

The gain in revenues for the year reflects primarily an increase in revenues of the company's Spanish subsidiary, Laboratorios Belmac S. A., which rose 23 percent in local currency and 21 percent when expressed in U. S. dollars. However, this revenue growth in Spain was partially offset by the effect of the June 1997 divestiture of Chimos/LBF, which generated revenues of $2,029,000 in 1997.

Although Bentley Pharmaceuticals currently operates primarily in Europe, the company expects to significantly expand its presence in U. S. markets through its recently announced acquisition of the U. S. and international patents and related technologies covering methods to enhance the absorption of drugs delivered to biological tissues by oral, dermal, ocular and other routes.

Noting that improved methods of drug delivery are rapidly becoming essential components in the development of new products or improvement of older, established products, Murphy said, "We will vigorously pursue licensing agreements and joint ventures with pharmaceutical partners who have the ability to commercialize proprietary products based on our technology. We will also continue to expand the product portfolio of our Spanish subsidiary, Laboratorios Belmac and its new Chilean subsidiary," Murphy concluded.

Bentley Pharmaceuticals, Inc. is an emerging international pharmaceutical company focused on improving drugs through new drug delivery technologies and intends to commercialize such drugs in the U.S. and other major markets. Bentley currently manufactures and markets products in Spain for the treatment of cardiovascular, gastrointestinal, neurological and infectious diseases.

Safe Harbor Statement

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements which are not historical facts contained in this press release are forward-looking statements that involve certain risks and uncertainties including but not limited to risks associated with the uncertainty of future financial results, additional financing requirements, the ability to find effective market distribution channels, development of new products, regulatory approval processes, the impact of competitive products or pricing, unpredictability of patent protection, technological changes, the effect of economic conditions and other uncertainties detailed in the Company's filings with the Securities and Exchange Commission.

Copies of the Company's press releases and other information may be obtained through Bentley's web site at www.bentleypharm.com. -0-

                    BENTLEY PHARMACEUTICALS, INC.
                         Financial Highlights
                 (In thousands except per share data)

                                   For the               For the
                              Three Months Ended        Year Ended
                            12/31/98    12/31/97  12/31/98   12/31/97
                                 (Unaudited)

Sales                        $4,711      $3,374   $15,243    $14,902

Cost of sales                 2,121       1,665     6,601      8,010
                           --------    --------  --------   --------

Gross margin                  2,590       1,709     8,642      6,892

Recurring operating
  expenses                    3,030       2,254     9,534      8,438

Non-recurring charge            ---         ---     1,176        ---
                         ----------  ---------- --------- ----------

Total operating
  expenses                    3,030       2,254    10,710      8,438
                           --------    --------  --------   --------

Loss from operations
  (recurring)                  (440)       (545)     (892)    (1,546)

Non-recurring charge            ---         ---   (1,176)        ---

Other (income)
   expense, net                 160          76       572      1,648
                           --------   --------- --------- ----------

Loss before income taxes      (600)       (621)   (2,640)    (3,194)

Provision (benefit) for
  income taxes                 (84)         621       236        621
                          ---------     ------- ---------  ---------

Net loss                     ($516)    ($1,242)  ($2,876)   ($3,815)
                             ======    ========  ========   ========

Loss per common share:
  Excluding
    non-recurring charge    ($0.06)     ($0.18)   ($0.21)    ($0.97)
  Non-recurring charge          ---         ---   ($0.14)        ---
                        -----------  ----------   ------- ----------

Basic net loss per
   common share             ($0.06)     ($0.18)   ($0.35)    ($0.97)
                          =========   ========= =========  =========

Weighted average common
  shares outstanding         8,439       6,110     8,431      4,072
                           =========  ========= =========  =========


                    BENTLEY PHARMACEUTICALS, INC.
                Condensed Consolidated Balance Sheets
                            (In thousands)

                                         December 31,
Assets                             1998                1997
                                   ----                ----

Cash and cash equivalents          $6,703            $11,117
Other current assets                5,758              3,892
                              -----------         ----------
Total current assets               12,461             15,009

Non-current assets                  7,857              6,034
                              -----------       ------------
  Total                           $20,318            $21,043
                               ==========         ==========

Liabilities and Stockholders'
  Equity
Current liabilities             $   5,626          $   4,251
Non-current liabilities             5,700              5,549
                              -----------       ------------
Total liabilities                  11,326              9,800

Redeemable preferred stock            ---              2,338

Common Stockholders' Equity         8,992              8,905
                               ----------         ----------
  Total                           $20,318            $21,043
                                  =======            =======