Bentley Pharmaceuticals Reports 74% Revenue Growth in the Third Quarter.

Business/Medical Editors

NORTH HAMPTON, N.H.--(BUSINESS WIRE)--Oct. 30, 2001

Bentley Pharmaceuticals, Inc. (AMEX:BNT), a drug delivery company with a commercial presence in Europe, reported today that revenue increased 74 percent for the third quarter ended September 30, 2001, to $6,316,000 from $3,626,000 for the third quarter of the prior year.

Although Bentley doubled its research and development expenses this quarter, income from operations and pre-tax income for the quarter rose to $120,000 and $96,000, respectively. Bentley trimmed its net loss for the quarter to $149,000, or 1 cent per basic and diluted common share on 14,308,000 weighted average common shares outstanding, compared with a net loss of $419,000, or 3 cents per basic and diluted common share on 13,662,000 weighted average common shares outstanding, for the same quarter of 2000.

Revenues for the nine months ended September 30, 2001 increased 37 percent to $18,255,000 from $13,305,000 in the same nine-month period of the prior year. Net income for the nine months ended September 30, 2001, which included the gain on sale of drug licenses during 2001, improved to $1,924,000, or 14 cents per basic common share on 14,064,000 weighted average common shares outstanding (12 cents per diluted common share on 15,594,000 weighted average common shares outstanding), compared to a net loss of $560,000, or 4 cents per basic and diluted common share on 12,672,000 weighted average common shares outstanding, in the comparable nine-month period of the prior year.

James R. Murphy, president and CEO of Bentley, said, "We are very pleased by this quarter's significant top line growth, which primarily reflects Bentley's increasing share of Spain's rapidly emerging generic drug market. During the quarter, our two Spanish subsidiaries were granted approval from the Spanish Ministry of Health to market two new dosage levels of enalapril, the generic version of Merck & Co.'s Vasotec(R) hypertension drug (NYSE: MRK). We have launched sales of this product and we remain committed to further enhancing our marketing potential in this region.

"During the quarter we made considerable strides in our drug delivery technologies and are encouraged by several advances on this front. We completed a clinical evaluation of our patented acetaminophen using 12 human volunteers and reported exciting results. Our patented galenic formulations of acetaminophen in both tablet and sachet forms achieved maximum blood concentration in approximately half the time as the widely used brands like McNeil Consumer Healthcare's Tylenol(R) (NYSE: JNJ) and GlaxoSmithKline's Panadol(R) (NYSE: GSK). At the same time, our outlicensed formulation of topical testosterone is progressing through clinical trials on schedule.

"The combination Phase I/II clinical trials of our topical nail lacquer for treating nail-bed fungal infections are on track at the University of Alabama-Birmingham. We continue to invest in research and development activities that will enable us to execute our strategy of advancing our drug delivery technologies and expanding our clinical programs.

"The strong financial results in our most recent quarter, coupled with the progress we are achieving in our drug delivery technologies, reflect the success of the strategic investments we are making in our future," concluded Murphy.

The company will host a conference call today at 11:00 A.M. EST to discuss results. Those who wish to participate in the conference call may telephone [phone] fifteen minutes before the 11:00 A.M. starting time. A replay will be available by telephone for two weeks following the completion of the live call, at [phone] toll free in the U. S. or [phone] for international callers, PIN # 2925984.

Bentley Pharmaceuticals, Inc. is a drug delivery company focused on improving the absorption of a wide range of drugs and peptides through its drug delivery technologies, which it intends to commercialize in the U.S. and other major markets by licensing to other pharmaceutical companies. Bentley also manufactures and commercializes branded and generic products in Europe for the treatment of cardiovascular, gastrointestinal, neurological and infectious diseases through its subsidiaries Laboratorios Belmac, Laboratorios Davur and Laboratorios Rimafar.

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

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.

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

                For the Three Months Ended  For the Nine Months Ended
                --------------------------  -----------------------
                     9/30/01     9/30/00     9/30/01     9/30/00
                   ---------   ---------   ---------   ---------
Net sales          $   6,316   $   3,626   $  18,255   $  13,305
Cost of sales          2,708       1,483       7,844       5,177
                   ---------   ---------   ---------   ---------
Gross profit           3,608       2,143      10,411       8,128
Total operating
 expenses              3,601       2,619      11,237       8,237
                   ---------   ---------   ---------   ---------
Gain on sale of
 drug licenses           113          --       5,090          --
                   ---------   ---------   ---------   ---------
Income (loss)
 from operations         120        (476)      4,264        (109)
Other income
 (expense), net          (24)         39         (42)        (73)
                   ---------   ---------   ---------   ---------
Income (loss)
 before income
 taxes                    96        (437)      4,222        (182)
Provision for
 foreign income
 taxes                   245         (18)      2,298         378
                   ---------   ---------   ---------   ---------
Net income
 (loss)                ($149)      ($419)     $1,924       ($560)
                   =========   =========   =========   =========
Net income (loss)
 per common share:
   Basic               ($.01)      ($.03)       $.14       ($.04)
                   =========   =========   =========   =========
   Diluted             ($.01)      ($.03)       $.12       ($.04)
                   =========   =========   =========   =========
Weighted average
 common shares
 outstanding:
   Basic              14,308      13,662      14,064      12,672
                      ======      ======      ======      ======
   Diluted            14,308      13,662      15,594      12,672
                      ======      ======      ======      ======



Condensed Consolidated
Balance Sheets (Unaudited)
(In thousands)
                                  9/30/01                12/31/00
Assets                          ---------               ---------
Cash and cash equivalents       $   4,689               $   4,816
Other current assets                9,071                   8,288
                                ---------               ---------
   Total current assets            13,760                  13,104
Non-current assets                 16,124                  15,773
                                ---------               ---------
   Total                        $  29,884               $  28,877
                                =========               =========

Liabilities and
Stockholders' Equity
Current liabilities             $   6,673               $   9,362
Non-current liabilities             1,919                   1,699
                                ---------               ---------
   Total liabilities                8,592                  11,061
Stockholders' equity               21,292                  17,816
                                ---------               ---------
   Total                        $  29,884               $  28,877
                                =========               =========