Bio-Technology General Announces 1999 First Quarter Earnings Results.

ISELIN, N.J.--(BUSINESS WIRE)--April 19, 1999--

Net Income of $4.0 Million, or $0.08 Per Share,

Compared to $3.4 Million, or $0.07

Company Purchases Eight Acre Site for New Manufacturing Facility

Bio-Technology General Corp. (NASDAQ:BTGC) today announced its earnings and financial results for the three months ended March 31, 1999. Net income increased 19% to $4.0 million, or $0.08 per share, compared to $3.4 million, or $0.07 per share, in the first quarter of 1998.

Revenues increased 16% to $20.2 million in the first quarter of 1999, compared to $17.4 million in the same quarter of 1998. Expenses for the first quarter of 1999 were $14.4 million, compared to $12.6 million in the comparable quarter of 1998.

In the first quarter of 1999, there were significant increases in sales of BTG's human growth hormone, primarily reflecting an increase in sales of the product to the Company's Japanese licensee, and BioLon(tm), reflecting the initiation of sales in the United States by Akorn, Inc., and Allergan, Inc., and increases in BioLon sales to BTG's major European licensees. Total product sales, however, increased 1% over the first quarter of 1998. While prescriptions for Oxandrin(r) - which grew 7% in the first quarter compared to the immediately preceding quarter, and 26% compared to the first quarter of 1998 - continued to increase solidly, a slowing in the rate of increase, due to competitive inroads, resulted in a reduction in distributor purchases for the quarter.

BTG also announced today that is has purchased an eight acre site and facility for the establishment of a manufacturing plant in Israel. The new, state-of-the-art GMP production facility will accommodate additional recombinant products as they are commercialized, and greater volumes of the Company's currently marketed products that are required to meet growing market demands.

Commenting on the first quarter 1999 results, Sim Fass, BTG's Chairman, President and CEO stated: "BTG's earnings results for the first quarter of 1999 have set us fully on track to achieve our financial goals for the year. This year's primary focus is to further increase sales and market share for our lead products, Oxandrin(r), BioTropin(tm), BioLon(tm) and Delatestryl(r). We believe that our anticipated 1999 launch of Oxandrin into the market for involuntary weight loss associated with non-healing wounds, a significantly larger potential market than HIV/AIDS wasting, should result in a commensurate increase in the rate of Oxandrin prescription growth."

"As well," said Dr. Fass, "we are diligently seeking out new acquisition opportunities to enhance our product portfolio and build on our history of profitability so that our shareholder value continues to increase. The purchase of property and a building for a new production facility is yet another reflection of BTG's current and expected future growth."

Bio-Technology General Corp., a leading biopharmaceutical company, develops, manufactures and markets genetically engineered and other products for human health care. BTG's products are marketed in over thirty countries worldwide.

All earnings-per-share amounts in the text of this news release represent diluted earnings per share as defined under Statement of Financial Accounting Standards No. 128, "Earnings per Share."

Statements in this news release concerning the Company's business outlook or future economic performance; anticipated profitability, revenues, expenses or other financial items; and statements concerning assumptions made or expectations as to any future events, conditions, performance or other matters, are "forward-looking statements" as that term is defined under the Federal Securities Laws. Forward-looking statements are subject to risks, uncertainties and other factors which could cause actual results to differ materially from those stated in such statements. Such risks, uncertainties and factors include, but are not limited to, changes and delays in product development plans and schedules, customer acceptance of new products, changes in pricing or other actions by competitors, patents owned by the Company and its competitors, and general economic conditions, as well as other risks detailed in the Company's filings with the Securities and Exchange Commission. -0-

CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(in thousands except per share data)

                                           Three Months Ended March 31
                                                  1998     1999
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Revenues:
  Product sales                                  $15,736   $15,867
  Contract fees                                    1,004     2,906
  Other                                              700     1,455
   Total revenues                                 17,440    20,228

Expenses:
  Research and development                         5,256     4,618
  Cost of product sales                            2,518     2,254
  General and administrative                       2,052     2,664
  Marketing and sales                              2,647     4,559
  Other                                              147       324
   Total expenses                                 12,620    14,419

Income before income taxes                         4,820     5,809

Income taxes                                       1,455     1,803

Net income                                       $ 3,365   $ 4,006

Earnings per common share:
  Basic                                          $  0.07   $  0.08
  Diluted                                        $  0.07   $  0.08

Weighted average number of shares outstanding:
  Basic                                           47,318    51,940
  Diluted                                         50,941    52,652