Bio-Technology General Announces Second Quarter 1997 Earnings Results.

ISELIN, N.J.--(BUSINESS WIRE)--July 14, 1997--

Second Quarter Pre-tax Earnings of $0.10 vs. $0.06

Six Month Pre-tax Earnings of $0.19 vs. $0.08

Bio-Technology General Corp. (NASDAQ: BTGC) today announced increased earnings for the quarter and six months ended June 30, 1997. Pre-tax income was $5.4 million, or $0.10 per share for the second quarter of 1997, compared to $2.8 million, or $0.06 per share in 1996, representing an increase of 66% and $10.0 million, or $0.19 per share for the first six months of 1997, compared to $3.7 million, or $0.08 per share in 1996, representing an increase of 138%.

Net income for the second quarter of 1997, after income taxes of $1.5 million, was $3.9 million, or $0.08 per share, on revenues of $15.7 million, compared to net income of $2.8 million, or $0.06 per share, on revenues of $12.2 million, in the comparable quarter of 1996. For the first six months of 1997, the Company's net income, after income taxes of $2.7 million, was $7.3 million, or $0.14 per share, on revenues of $30.5 million, compared to net income of $3.7 million, or $0.08 per share, on revenues of $22.9 million in the comparable 1996 period. Earnings per share in 1997 was computed on the basis of a greater number of average shares and equivalents outstanding than in 1996.

Product sales for the quarter and six months ended June 30, 1997 increased 26% and 50% to $14.6 million and $29.0 million, compared to $11.6 million and $19.3 million, respectively, in the comparable 1996 periods.

Expenses for the quarter and six months were $10.2 million and $20.4 million, compared to $9.4 million and $17.8 million, respectively, in 1996. The increase in expenses was due primarily to increased marketing and sales expenses and an increase in research and development expenses, including clinical studies.

Commenting on the results, Sim Fass, president and chief executive officer stated: "We are highly pleased by the 50% growth in product sales that we have achieved in the first half of 1997 compared to the first six months of 1996. This increase is accompanied by only a modest increase in expenses of 15% over the same time period, allowing for the delivery of substantive growth in earnings per share. We are continuing to work towards advancing our product pipeline and maintaining our solidly established position within the biopharmaceutical industry."

Bio-Technology General Corp. develops, manufactures and markets genetically engineered and other products for human health care.

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            Six Months
                                 Ended June 30          Ended June 30

                                1996        1997      1996       1997

Revenues:
  Product sales              $ 11,618    $ 14,586   $ 19,313  $ 28,965
  Contract fees                    70         350      2,795       466
  Other                           500         756        791     1,026
                               12,188      15,692     22,899    30,457

Expenses:
  Research and development      2,830       3,383      5,934     7,323
  Cost of product sales         2,202       2,525      3,368     4,794
  General and administrative    2,330       2,021      4,250     3,957
  Marketing and sales           1,695       2,107      2,904     3,993
  Other                           355         211      1,358       358
                                9,412      10,247     17,814    20,425

Income before write-off in
  connection with litigation    2,776       5,445      5,085    10,032

Write-off in connection with
  litigation                       --          --      1,383        --

Income before income taxes      2,776       5,445      3,702    10,032

Income taxes                       --       1,531         --     2,723

Net income                    $ 2,776     $ 3,914    $ 3,702   $ 7,309

Earnings per share             $ 0.06      $ 0.08     $ 0.08    $ 0.14

Shares used in computation
  (includes common stock
  equivalents)                 47,602      51,999     47,351    52,086
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CONTACT: Bio-Technology General Corp.

Leah Berkovits, 908/632-8800

or

Strategic Growth International

Don Weinberger, 516/829-7111