Bentley Pharmaceuticals Reports Second Quarter 2000 Results.

Business Editors

NORTH HAMPTON, N.H.--(BUSINESS WIRE)--July 31, 2000

Bentley Pharmaceuticals, Inc. (AMEX: BNT), a drug delivery company with a commercial presence in Europe, today reported revenues of $4,594,000 for the second quarter ended June 30, 2000 compared to $4,750,000 in last year's second quarter. The company's Spanish subsidiary, Laboratorios Belmac S.A., reported an increase in revenues of eight percent in local currency; however, fluctuations in foreign exchange rates erased the increase when the results were translated into U.S. dollars. The company continued to improve its bottom-line performance, reporting a net loss for the quarter of $182,000, or one cent per basic and diluted common share (13,561,000 weighted average common shares outstanding), compared with a net loss of $452,000, or five cents per basic and diluted common share (8,444,000 weighted average common shares outstanding), for the same quarter of 1999.

Revenues for the six months ended June 30, 2000 increased six percent to $9,679,000 from $9,108,000 in the same period of the prior year. Revenues for the six-month period increased by nineteen percent when expressed in local currency; however, movements in foreign currency exchange rates reduced this growth to six percent when the results were translated into U.S. dollars. The net loss for the six months ended June 30, 2000 improved to $141,000, or one cent per basic and diluted common share (12,172,000 weighted average common shares outstanding), compared to $999,000, or twelve cents per basic and diluted common share (8,444,000 weighted average common shares outstanding), in the comparable period of the prior year.

James R. Murphy, president and CEO of Bentley, said, "We are continuing to grow our business in Spain, as evidenced by our recent announcement that we have formed a strategic alliance with Teva Pharmaceutical Industries Ltd. (NASDAQ: TEVA), one of the world's largest generic pharmaceutical companies. We believe that this new relationship will significantly increase Laboratorios Belmac's growth rate and enable our other division in Spain, Laboratorios Davur, to become a leader in the Spanish generic market."

Murphy continued, "To further our presence in Spain, we also recently received approval from the Spanish Ministry of Health to manufacture and market generic versions of omeprazole, used to treat gastrointestinal ulcers, and pentoxifylline, for cerebral and peripheral arterial insufficiency. We expect to launch both products during the third quarter of 2000."

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 and Laboratorios Davur.

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         For the Six
                                 Months Ended         Months Ended
                             -------------------   -------------------
                              6/30/00    6/30/99    6/30/00    6/30/99
                             --------   --------   --------   --------

Sales                        $  4,594   $  4,750   $  9,679   $  9,108
Cost of sales                   1,736      1,993      3,694      4,008
                             --------   --------   --------   --------
Gross margin                    2,858      2,757      5,985      5,100
Total operating expenses        2,959      2,815      5,618      5,397
                             --------   --------   --------   --------
Income (loss) from operations    (101)       (58)       367       (297)
Other (income) expense, net       (62)       239        112        447
                             --------   --------   --------   --------
Income (loss) before
 income taxes                     (39)      (297)       255       (744)
Provision for foreign
 income taxes                     143        155        396        255
                             --------   --------   --------   --------
Net loss                        ($182)     ($452)     ($141)     ($999)
                             ========   ========   ========   ========
Basic and diluted net loss
 per common share               ($.01)     ($.05)     ($.01)     ($.12)
                             ========   ========   ========   ========
Weighted average common
 shares outstanding            13,561      8,444     12,172      8,444
                             ========   ========   ========   ========


BENTLEY PHARMACEUTICALS, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets (Unaudited)
(In thousands)

                                            6/30/00       12/31/99
                                           --------       --------
Assets
Cash and cash equivalents                  $  5,660       $  4,422
Other current assets                          6,001          7,267
                                           --------       --------
     Total current assets                    11,661         11,689
Non-current assets                           10,685         10,548
                                           --------       --------
     Total                                 $ 22,346       $ 22,237
                                           ========       ========

Liabilities and Stockholders' Equity
Current liabilities                        $  4,646       $ 10,559
Non-current liabilities                         145            104
                                           --------       --------
     Total liabilities                        4,791         10,663
Stockholders' equity                         17,555         11,574
                                           --------       --------
     Total                                 $ 22,346       $ 22,237
                                           ========       ========