Bentley Pharmaceuticals reports second-quarter and six-months results; Company cuts loss by 50 percent for second quarter.

TAMPA, Fla.--(BUSINESS WIRE)--Aug. 14, 1996--Bentley Pharmaceuticals Inc. (AMEX: "BNT") today reported that sales for the second quarter ended June 30, 1996, were $4,678,000, compared with sales of $8,105,000 in the previous year's second quarter.

The company also reported a net loss of $(696,000), or $(0.22) per share, for the second quarter, a significant improvement when compared with a net loss of $(1,269,000), or $(0.44) per share, for the previous year's second quarter.

For the six-month period ended June 30, 1996, sales were $14,376,000, compared with sales of $16,199,000 during the same period last year. The company also reported a net loss for the six months ended June 30, 1996, of $(1,375,000), or $(0.43) per share, compared with a net loss of $(1,389,000), or $(0.49) per share, for the same period a year ago.

"We are pleased with the results from operations during the second quarter," said James R. Murphy, president and chief executive officer of Bentley Pharmaceuticals Inc. "We experienced continued sales growth in Spain, and the loss from operations was $328,000 for the six months ended June 30, 1996, versus a loss from operations of $1,121,000 in the same period a year ago. In fact," added Murphy, "the 82 percent increase in Spanish sales volume over the same period in the prior year was responsible for partially offsetting the effect of the expiration of Bentley's contract to market Ceredase in France, effective March 31, 1996. While Ceredase accounted for approximately 60 percent of revenues in the year ended December 31, 1995, Ceredase gross margins as a percent of sales were only approximately five percent; therefore the impact on operating profit is not considered to be material," Murphy continued.

"Our cost control policies also continued into the second quarter, which resulted in a 14 percent decrease in operating expenses over the same quarter last year," said Murphy. "These continuing efforts resulted in a 51 percent improvement in results from operations for this quarter and a 71 percent improvement in results from operations year-to-date -- notwithstanding the decrease in sales volume associated with the expiration of the Ceredase marketing agreement. Given the restructuring and newly defined direction of the company, we believe we are on a definitive track to ultimately achieve consistent and sustained profitability," concluded Murphy.

Leveraging competitive advantages of relatively low-cost GMP-accredited manufacturing capability, novel drug-delivery technologies and an international sales-and-marketing presence, Tampa-based Bentley Pharmaceuticals Inc. is an emerging international pharmaceutical company with a broad and expanding line of off-patent ("generic") drugs, many of which are currently marketed in Spain that prevent or treat illnesses in the following therapeutic categories -- cardiovascular, gastrointestinal, neurological, dermatological, analgesic and women's health care.

                       Bentley Pharmaceuticals Inc.
                  Consolidated Statements of Operations
                             (unaudited)
            (in thousands of U.S. dollars, except per share data)

                        For the Three Months     For the Six Months
                            Ended June 30           Ended June 30
                            1996     1995           1996     1995

Sales                     $4,678   $8,105        $14,376  $16,199
Cost of sales              2,894    6,313         10,530   12,956

Gross margin               1,784    1,792          3,846    3,243

Operating expenses:
 Selling, general and
  administrative           1,995    2,253          3,895    3,849
 Research and development      8      104             26      247
 Depreciation and
  amortization               119      130            253      268

 Total operating expenses  2,122    2,487          4,174    4,364

Loss from operations        (338)    (695)          (328)  (1,121)

Other (income) expenses:
 Interest expense            323       61          1,012      126
 Interest income             (36)      (1)           (45)      (1)
 Other (income) expense,
  net                         71      514             80     (143)

Net loss                   ($696) ($1,269)       ($1,375) ($1,389)

Net loss per common share ($0.22)  ($0.44)        ($0.43)  ($0.49)

Weighted average
 common shares outstanding 3,331    2,978          3,331    2,978

CONTACT: Michael D. Price

Bentley Pharmaceuticals Inc.

813/286-4401

or

Ronald C. Trahan or Constance L. Adolph

Ronald Trahan Associates Inc.

508/651-1180