Bentley Pharm Increases 3Q Revenues by 17 Percent and Cuts Loss by 75 Percent.

TAMPA, Fla.--(BW HealthWire)--Nov. 13, 1998--Bentley Pharmaceuticals Inc. (AMEX:BNT) Friday reported that net sales for the third quarter ended Sept. 30, 1998, increased to $3,674,000 compared with $3,141,000 for the comparable period in the prior year.

The loss from operations improved to $129,000 in the third quarter of 1998 from $332,000 for the same period in 1997. Bentley's net loss after tax for the third quarter of the current year totaled $156,000 or $0.02 per common share, comparing very favorably to the net loss after tax of $659,000 or $0.20 per common share for the third quarter of the prior year.

The 17 percent increase in revenues is primarily attributable to growth in sales at the company's Spanish subsidiary, Laboratorios Belmac S.A. This subsidiary reported revenue increases of 22 percent when expressed in local currency.

Net sales for the nine months ended Sept. 30, 1998, totaled $10,532,000. The 9 percent decrease of $996,000 in year-to-date sales from the like period in 1997 largely resulted from the company's June 1997 disposition of its French subsidiary, Chimos/LBF, which produced approximately $2,029,000 in revenues during 1997. Offsetting this revenue loss was the 17 percent (in local currency) year-to-date revenue increase realized by the company's Spanish subsidiary during the nine months ended Sept. 30, 1998.

Excluding a second quarter non-recurring charge related to the abandoned Schwarz Pharma acquisition, the loss from operations for the nine month period ended Sept. 30, 1998, improved to $452,000, compared with $1,001,000 in the same period of the prior year. Bentley's net loss after tax for the first nine months of 1998 totaled $2,360,000, or $0.29 per common share, while the net loss after tax for the corresponding nine month period in 1997 was $2,573,000, or $0.79 per common share. Excluding the non-recurring charge, the Sept. 30, 1998, year-to-date net loss after tax of $1,184,000, or $0.15 per common share, which compares favorably to the net loss of $2,573,000, or $0.79 per common share, for the same period in the prior year.

Gross margins continue to grow primarily as a result of increase volume, promotion of lead products, recent acquisitions of higher margin products, and greater utilization of existing capacity. In the quarter ended Sept. 30, 1998, gross margins improved to 57 percent from 49 percent for the same period in the prior year. For the nine months ended Sept. 30, 1998, gross margins improved to 57 percent from 45 percent.

James Murphy, chairman and chief executive officer, commented: "The continued addition of new products, increased sales of the existing product line and a conscious effort to reduce administrative costs are being reflected in improved operating results. We are extremely pleased with the sales increase at our Spanish subsidiary. These achievements are particularly encouraging, especially since the third quarter is generally our most difficult due to the European Summer holiday schedule. We saw substantial sales increases this quarter that we expect to continue. Our strategy to focus on our Spanish subsidiary, Laboratorios Belmac S.A. is providing a platform for major growth and the realization of our financial objectives.

"As part of our effort to reduce our administrative costs, we have relocated our corporate offices. We have moved to smaller, less expensive offices which will not only meet our needs but will also reduce overhead expense. This move is consistent with our ongoing austerity program."

Bentley's new address is:

4890 West Kennedy Blvd.

Two Urban Center Suite 400

Tampa, Fla. 33609

Tel: [phone]

Fax: [phone]

www.bentleypharm.com

Bentley Pharmaceuticals is an emerging international pharmaceutical company that leverages the competitive advantage of its manufacturing facility in Spain with drug delivery technology to provide treatment for 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 news 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. -0-

BENTLEY PHARMACEUTICALS INC.
Condensed Consolidated Statements of Operations (Unaudited)
(In thousands, except per share data)

                    For the Three Months        For the Nine Months
                           Ended                       Ended
                   9/30/98        9/30/97      9/30/98       9/30/97

Sales               $3,674         $3,141      $10,532       $11,528
Cost of Sales        1,585          1,617        4,480         6,345
Gross Margin         2,089          1,524        6,052         5,183

Recurring operating
 expenses            2,218          1,856        6,504         6,184
Nonrecurring charge      -              -        1,176             -
Total operating
 expenses            2,218          1,856        7,680         6,184

Loss from operations
 (recurring)          (129)          (332)        (452)       (1,001)
Nonrecurring charge      -              -       (1,176)            -
Total loss from
 operations           (129)          (332)      (1,628)       (1,001)

Other (income)
 expense, net          159            327          412         1,572

Loss before income
 taxes                (288)          (659)      (2,040)       (2,573)

Income tax (benefit)
 provision            (132)             -          320             -

Net loss              (156)          (659)      (2,360)       (2,573)

Other comprehensive
 (income) loss/a      (328)            56         (304)          321

Comprehensive
 income (loss)        $172          $(715)     $(2,056)      $(2,894)

Loss per common share:
  Excluding nonrecurring
   charge           $(0.02)        $(0.20)      $(0.15)       $(0.79)
  Nonrecurring
   charge                -              -        (0.14)            -

Basic net loss per
 common share       $(0.02)        $(0.20)      $(0.29)       $(0.79)

Weighted average
 common shares
 outstanding         8,428          3,453        8,428         3,385


a/Primarily foreign currency translation  gains/losses


BENTLEY PHARMACEUTICALS INC.
Condensed Consolidated Balance Sheets (Unaudited)
(In thousands)                          Sept. 30,      Dec. 31,
                                            1998          1997
Assets
Cash and cash equivalents                 $8,430       $11,117
Other current assets                       5,302         3,892
  Total current assets                    13,732        15,009
Non-current assets                         6,248         6,034
  Total                                  $19,980       $21,043

Liabilities and Stockholders' Equity
Current liabilities                       $4,722        $4,361
Non-current liabilities                    5,698         5,439
  Total liabilities                       10,420         9,800

Redeemable Preferred Stock                 2,440         2,338
Common Stockholders' Equity                7,120         8,905
  Total                                  $19,980       $21,043