Bentley Pharmaceuticals cuts losses by 35%.

TAMPA, Fla.--(BUSINESS WIRE)--April 1, 1996--Bentley Pharmaceuticals Inc. (ASE:BNT), with a full year under its new chief executive officer, cut its losses in 1995 by 35% as compared to 1994.

Bentley, formerly Belmac Corp., reported a 1995 loss of $2.3 million vs. a loss of $3.6 million in 1994. On a per share basis, the 1995 loss equals $.83 vs. $1.56 in 1994. Per share numbers are adjusted for the reverse stock split in July 1995, and are based on 3.0 million weighted average common shares outstanding in 1995 vs. 2.4 million in 1994.

Revenues increased 16% to $30.5 million vs. $26.3 million in 1994. Gross margins remained constant at 18% while operating expenses decreased 9%, to $8.2 million from $9.1 million in 1994. The company reported losses of $10.2 million in 1993 and $27.0 million in 1992.

James R. Murphy, elected chief executive officer in January of 1995, said: "We have restructured every aspect of our business and, as the trend suggests, we are beginning to get things right. We have halted long-term capital-intensive research, re-prioritized products under development, established goals for new pharmaceutical products and drug delivery systems, upgraded our manufacturing facilities in Spain, and intensified our marketing efforts in Europe. At the same time, we have reduced expenses, raised new capital, and advanced negotiations for alliances and joint ventures that will shape our future."

In connection with the significant restructuring and the resolution of certain long-outstanding issues, there were some non-recurring charges without which the company would have had a significantly better bottom line:

-- Laboratorios Belmac, in Spain, absent one time charges, would

have had its first full year of profitability.

-- Litigation related payments and expenses necessary to resolve

old legal problems represented virtually half of the entire

loss of 1995.

For the fourth quarter of 1995, Bentley lost $807,000, compared to net income of $73,000 in the same quarter of 1994. The per share loss in the fourth quarter of 1995 was $.28, compared to per share income of $.11 in the fourth quarter of 1994. Per share numbers are based on 3.1 and 2.8 million shares outstanding, in the fourth quarter of 1995 and 1994, respectively, adjusted for the reverse stock split in July 1995.

Murphy added: "Most of the progress achieved in 1995 was made in our Spanish subsidiary, Laboratorios Belmac, following the certification in July of our facility for compliance with European Union standards for Good Manufacturing Practices (GMPs). Operating expenses in Spain were reduced 19%, due primarily to a 20% reduction in the number of employees and relocation to less expensive office space outside Madrid."

Murphy also noted that a major change is coming in Bentley's French subsidiary, Chimos. "A large portion of the company's revenues ($18 million during 1995) have come from our distribution of Ceredase(r), an orphan drug used to treat Gaucher's Disease. Our distribution agreement expired March 31, 1996. Although, the impact on sales will be significant, the company makes very little profit on the arrangement and the impact on earnings will be minimal. We can re-deploy that capital to provide a more attractive return on our investment. We expect more improvement in 1996," Murphy concluded.

Bentley is based in Tampa. The company manufactures and/or markets over 60 prescription drugs in Spain for itself and other pharmaceutical companies; distributes pharmaceutical and biotechnology products in France; and manufactures and distributes disposable linens and garments for health care workers in the United States. -0-

                    BENTLEY PHARMACEUTICALS INC.
           CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                (in thousands except per share data)

                          Three Months Ended   Fiscal Year Ended
                               Dec. 31,            Dec. 31,
                            1995     1994       1995      1994

Sales                      $ 6,892  $ 6,608   $30,475   $26,284
Cost of sales                5,404    5,524    24,927    21,464
Gross margin                 1,488    1,084     5,548     4,820
Total operating expenses     1,933    1,637     8,198     9,050
Loss from operations          (445)    (553)   (2,650)   (4,230)
Other (income) expense, net    362     (626)     (324)     (652)
Net income (loss)          $  (807) $    73   $(2,326)  $(3,578)
Net income (loss) per
  common share              ($0.28)   $0.11    ($0.83)   ($1.56)
Weighted average common
  shares outstanding         3,060    2,805     2,999     2,395

CONTACT: Bentley Pharmaceuticals Inc., Tampa

Michael D. Price, Chief Financial Officer

813/286-4401