Bentley Pharmaceuticals Reports 17% Growth in Revenues and Continuing Profitability for First Quarter 2000.

Business Editors

NORTH HAMPTON, N.H.--(BUSINESS WIRE)--May 2, 2000

Bentley Pharmaceuticals, Inc. (AMEX: BNT), a U.S.-based drug delivery company with a commercial presence in Europe where it produces and markets branded and generic products, reported today that revenues increased 17 percent, to $5,085,000 for the first quarter of 2000 from revenues of $4,358,000 in the first quarter of the prior year. The company also posted income from operations of $468,000 and pre-tax income of $294,000 for the quarter. The increase in revenues is attributable to increased sales by the company's Spanish subsidiary, Laboratorios Belmac S.A., which reported an increase in revenues of 32 percent in local currency. Fluctuations in foreign currency exchange rates reduced this growth to 17 percent when converted to U. S. dollars. Gross margins improved to 61 percent for the quarter ended March 31, 2000 from 54 percent for the same quarter of the prior year.

The company reported net income for the quarter of $41,000, or $.004 per basic common share ($.003 per diluted common share), compared to a net loss of $547,000, or $.065 per basic and diluted common share for the same quarter of 1999.

James R. Murphy, president and CEO of Bentley Pharmaceuticals, said, "We are extremely pleased with the continuing growth in revenues generated by our subsidiary in Spain. We are also looking forward to approval of our applications from the Spanish Ministry of Health to market additional products.

"Our strategies are finally resulting in tangible benefits that are visible on the income statement and balance sheet. We posted income from operations of $468,000 and pre-tax income of $294,000 on strong sales this quarter in Spain. Our balance sheet has never been stronger."

Murphy continued, "As we reported on April 19, 2000, all of the company's Debentures have been converted into shares of Common Stock, effectively eliminating all of our long-term debt. The company incurred first quarter interest expense related to the Debentures of approximately $233,000, which will no longer negatively impact earnings, as of April 1, 2000. If all the Debentures had been converted at the beginning of the first quarter, our first quarter earnings would have been $274,000, or slightly more than $.02 per share higher than reported. We are looking forward to this incremental impact for the balance of the year. The year 2000 is shaping up to be an exciting year for Bentley when considering the company's balance sheet, which is free of long-term debt, additional products that will be added to our European portfolio and the potential for further progress in developing products based on our exclusive drug delivery technologies."

Bentley Pharmaceuticals, Inc. is a drug delivery company focused on improving the absorption of a wide range of drugs through its drug delivery technologies and manufactures and markets products in Europe for the treatment of cardiovascular, gastrointestinal, neurological and infectious diseases.

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

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

                                            For the Three Months Ended
                                            --------------------------

                                                  3/31/00      3/31/99
                                                  -------      -------

Sales                                            $  5,085     $  4,358
Cost of Sales                                       1,958        2,015
                                                 --------     --------
Gross Margin                                        3,127        2,343

Operating expenses                                  2,659        2,582
                                                 --------     --------

Income (loss) from operations                         468         (239)

Interest income                                       (92)         (70)
Interest expense                                      266          278
                                                   ------       ------

Income (loss) before income taxes                     294         (447)

Provision for foreign income taxes                    253          100
                                                   ------       ------

Net income (loss)                                      41         (547)

Other comprehensive loss:

     Foreign currency translation losses             (364)        (499)
                                                  --------     --------

Comprehensive loss                               $   (323)    $ (1,046)
                                                 ========     =========

Net income (loss) per Common Share
     Basic                                       $  0.004      ($0.065)
                                                 ========      ========
     Diluted                                     $  0.003      ($0.065)
                                                 ========      ========

Weighted average common shares outstanding         10,783        8,443
                                                 ========      ========

BENTLEY PHARMACEUTICALS, INC.
Condensed Consolidated Balance Sheets (Unaudited)
(In thousands)
                                                 March 31, December 31,
                                                     2000         1999
                                             ------------  ------------

Assets
Cash and cash equivalents                    $      6,131  $      4,422
Other current assets                                6,711         7,267
                                             ------------  ------------
     Total current assets                          12,842        11,689
Non-current assets                                 10,683        10,548
                                              -----------   -----------
     Total                                    $    23,525   $    22,237
                                              ===========   ===========


Liabilities and Stockholders' Equity
Current liabilities                          $      5,382   $    10,559
Non-current liabilities                             2,011           104
                                           --------------  ------------
     Total liabilities                              7,393        10,663

Stockholders' Equity                               16,132        11,574
                                             ------------  ------------
     Total                                    $    23,525   $    22,237
                                              ===========   ===========

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.