Bentley Pharmaceuticals Reports Results for Year Ended December 31, 2000.

Business Editors

NORTH HAMPTON, N.H.--(BUSINESS WIRE)--March 21, 2001

Bentley Pharmaceuticals, Inc. (AMEX:BNT), a U.S.-based drug delivery company with a commercial presence in Europe where it markets branded and generic products, reported today that net sales for the fourth quarter and year ended December 31, 2000 increased by 5% compared to the comparable periods of the prior year, when expressed in local currency.

Net Sales for the fourth quarter of 2000 totaled $5,312,000 and net sales for the year ended December 31, 2000 totaled $18,617,000. Fourth quarter 2000 net sales, which increased by 46% over the preceding quarter, demonstrate that the Company is executing its business model and competing successfully in the emerging generic drug market space in Spain.

The Company reported a net loss of $745,000 or $.06 per basic and fully diluted common share on net sales of $18,617,000 for the year ended December 31, 2000, compared to the prior year loss of $1,090,000 or $.12 per basic and fully diluted common share on net sales of $20,249,000. Although net sales, expressed in local currency increased, this was not enough to offset the impact of the weakened Euro and related Spanish Peseta, which declined in value by 16% during the year ended December 31, 2000, in comparison to the U.S. dollar.

The Company reported a net loss of $185,000 or $.01 per basic and fully diluted common share on net sales of $5,312,000 for the fourth quarter ended December 31, 2000, compared to prior year fourth quarter net income of $97,000, or $.01 per basic and fully diluted common share on net sales of $5,954,000. Although net sales increased 5% for the fourth quarter, expressed in local currency, it was not enough to offset the decline in the value of the Euro in comparison to the U.S. dollar. Absent a charge of $195,000 recognized during the fourth quarter ended December 31, 2000, related to settlement of litigation, the Company would have reported net income of $10,000 for the quarter. The Company agreed to settle this litigation in order to allow management to focus on its strategic objectives and business model, rather than on time consuming and potentially costly defense of the claims.

In November 2000, the Company agreed to sell its registration rights and the related trademark to its branded version of enalapril (Controlvas) for 950 million pesetas (approximately $4.8 million), and received a 50% deposit from the purchaser, which was treated as deferred income in the Company's financial statements for the year ended December 31, 2000. The sale was completed subsequent to December 31, 2000 and the remaining balance of the purchase price has been received. The Company will recognize the resulting gain in its financial statements during the first quarter of 2001.

James R. Murphy, Chairman, President and CEO of Bentley Pharmaceuticals, Inc., said, "Fourth quarter sales, which are 5% higher in local currency than in the fourth quarter of the prior year, are a signal that the Company has rebounded from the third quarter decline that we experienced and reflect the successful restructuring that is enabling the Company to compete in the newly emerging generic drug market in Spain. Year to date sales for the first quarter of 2001 continue to evidence this improvement. We expect sales for the first quarter of 2001 to exceed sales of both the first quarter of 2000 and the recently completed fourth quarter. Based on current projections, we expect 20% growth in net sales in local currency for the year ending December 31, 2001."

Murphy continued, "With additional product approvals expected in Spain, and expectations with respect to discussions that are under way regarding licensing of our CPE-215 drug delivery technology, we have reason to be excited about 2001. We expect this year to be not only the first profitable year in the Company's history, but a year in which many other accomplishments will be realized."

A conference call will also be held on March 21 at 11:00 a.m. E.S.T. to discuss the results. Those who wish to participate in the conference call may telephone [phone] fifteen minutes before the 11:00 a.m. starting time.

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 through its subsidiaries, Laboratorios Belmac S.A. and Laboratorios Davur S.L.

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.

BENTLEY PHARMACEUTICALS, INC.
Financial Highlights
(In thousands except per share data)
                   For the Three Months Ended     For the Year Ended
                   --------------------------     ------------------
                    12/31/00        12/31/99      12/31/00   12/31/99
                    --------        --------      --------   --------
                           (Unaudited)

Net sales             $5,312          $5,954       $18,617    $20,249

Cost of sales          2,012           2,375         7,189      8,445
                    --------        --------      --------   --------

Gross profit           3,300           3,579        11,428     11,804

Total operating
 expenses              3,705           3,029        11,942     11,226
                    --------        --------      --------    -------

Income (loss) from
 operations             (405)            550          (514)       578

Other income and
 (expense), net           64            (207)           (9)      (887)
                    --------        ---------     ---------  --------

Income (loss)
 before income
 taxes                  (341)            343          (523)      (309)

(Provision) benefit
 for income taxes        156            (246)         (222)      (781)
                    --------        ---------      --------  --------

Net income (loss)   $   (185)      $      97       $  (745)   ($1,090)
                    ========        =========      ========  ========

Basic and diluted
 net Income (loss)
 per common share   $  (0.01)         $ 0.01       $ (0.06)    ($0.12)
                    =========       =========      ========  ========

Weighted average
 common shares
 outstanding          13,900          10,151        12,981      9,147
                    =========       =========      ========  ========

BENTLEY PHARMACEUTICALS, INC.
Condensed Consolidated Balance Sheets
(In thousands)
                                       December 31,
                                  2000                 1999
                                  ----                 ----
Assets
 Cash, cash equivalents
  and marketable securities  $   4,816             $   6,315
 Other current assets            7,437                 5,374
                              ----------           ----------
Total current assets            12,253                11,689

Non-current assets              16,624                10,548
                              ----------           ----------
  Total                       $ 28,877              $ 22,237
                              ==========           ==========

Liabilities and Stockholders'
 Equity
  Current liabilities        $   9,362             $  10,559
  Non-current liabilities        1,699                   104
                              ----------           ----------
Total liabilities               11,061                10,663

Stockholders' equity            17,816                11,574
                              ----------            ----------
  Total                       $ 28,877              $ 22,237
                              ==========            ==========