BTGC Issues Press Release.

Business Editors/Health & Medical Writers

BIOWIRE2K

NEW YORK--(BUSINESS WIRE)--Oct. 7, 2002

Bio-Technology General Corp. (Nasdaq:BTGC) today announced that late last Friday, KPMG informed BTG that it will not continue its engagement as BTG's auditors.

KPMG has indicated to BTG that it is not withdrawing its September 20, 2002 report on its reaudit of 1999, 2000, and 2001. The Company will appoint new auditors in the coming days.

"We regret KPMG's decision," stated Sim Fass, Chairman and CEO of Bio-Technology General Corp. "BTG is not aware of any disagreements with KPMG with respect to the completion of the 1999, 2000, and 2001 reaudit. Further, in its report to the Audit Committee upon completion of the reaudit, KPMG stated that management cooperated fully with KPMG in the completion of the reaudit. The Company also agreed to adopt KPMG's recommendations to enhance its financial organization. KPMG's management letter noted that its report did not affect KPMG's September 20, 2002 report on our 1999, 2000, and 2001 financial statements."

Bio-Technology General Corp., a leading biopharmaceutical company, develops, manufactures and markets genetically engineered and other products for human health care. BTG's products are marketed worldwide. Products sold in the United States are Oxandrin(R) (oxandrolone, USP), marketed by BTG and by the Ross Products Division of Abbott Laboratories under a co-marketing agreement, Delatestryl(R) (testosterone enanthate), marketed by BTG, Mircette(R) (oral contraceptive), marketed by Organon, Inc., and BioLon(TM) (sodium hyaluronate), marketed by Akorn, Inc. Products sold internationally are Bio-Tropin(TM) (recombinant human growth hormone), BioLon(TM) (sodium hyaluronate), Bio-Hep-B(TM) (hepatitis B vaccine), Silkis(R) (vitamin D derivative), Arthrease(TM) (sodium hyaluronate for osteoarthritis), and recombinant human insulin. BTG's news releases and other information are available on the Company's website at www.btgc.com.

Statements in this news release concerning the Company's business outlook or future economic performance, anticipated profitability, revenues, expenses or other financial items; and statements concerning assumptions made or expectations as to any future events, conditions, performance or other matters, are "forward-looking statements" as that term is defined under the Federal Securities Laws. Forward-looking statements are subject to risks, uncertainties and other factors which could cause actual results to differ materially from those stated in such statements. Such risks, uncertainties and factors include, but are not limited to, changes and delays in product development plans and schedules, customer acceptance of new products, changes in pricing or other actions by competitors, patents owned by the Company and its competitors, and general economic conditions, as well as other risks detailed in the Company's filings with the Securities and Exchange Commission.