Bio-Technology General Announces Second Quarter 1999 Earnings Results -- Second Quarter Earnings of $0.10 vs. $0.09 -- Six Month Earnings of $0.17 vs. $0.16 --.

ISELIN, N.J.--(BUSINESS WIRE)--July 14, 1999--

Bio-Technology General Corp. (NASDAQ:BTGC) today announced earnings for the quarter and six months ended June 30, 1999. Net income for the second quarter was $5.1 million, or $0.10 per share, on revenues of $22.9 million, compared to net income of $4.5 million, or $0.09 per share, on revenues of $18.6 million in the comparable quarter of 1998. For the first six months of 1999, the Company's net income was $9.1 million, or $0.17 per share, on revenues of $43.1 million, compared to net income of $7.9 million, or $0.16 per share, on revenues of $36.1 million in the comparable 1998 period. Revenues and net income in the three months ended June 30, 1999 increased 23% and 12%, respectively, over the comparable 1998 period. For the six-month period ended June 30, 1999, the respective revenue and net income increases were 19% and 15%.

Product sales for the quarter and six months ended June 30, 1999 increased 15% and 8%, to $19.4 million and $35.2 million, compared to $16.9 million and $32.7 million, respectively, in the comparable 1998 periods.

Expenses for the quarter and six months were $15.7 million and $30.1 million, compared to $12.1 million and $24.7 million, respectively, in 1998. Increases in expenses were recorded in the three and six months ended June 30, 1999 with respect to cost of product sales, G&A, and marketing and sales, and in the second quarter of 1999, with respect to research and development activities.

Commenting on the results, Sim Fass, Chairman and Chief Executive Officer stated: "We are pleased with the growth in total revenues, product sales, and net income for the first half of 1999, despite the previously announced reduction in purchases of Oxandrin(r) by BTG's distributor, Olsten Health Services, Inc. The ongoing reduction of inventory at Olsten will continue to impact BTG's Oxandrin sales to Olsten for the remainder of the year, resulting in lower Oxandrin sales to our national distributor than in 1998. At the same time, the Company has continued to note appreciable increases in the number of prescriptions being written for Oxandrin, suggesting growth in demand for the product. Prescriptions for Oxandrin in the first five months of 1999 increased 14% over the immediately preceding five months, and 26% over the first five months of 1998."

Dr. Fass added: "In addition to maintaining a healthy growth dynamic with Oxandrin prescriptions, we are making substantive headway with the development of our product pipeline. As recently announced, BTG's licensee, DRAXIMAGE Inc., the DRAXIS Health Inc. radiopharmaceutical subsidiary, reported Phase II clinical trial results of Fibrimage(r), a recombinant thrombus imaging agent, which should enter Phase III efficacy studies during this quarter. Also, earlier this week, we announced a positive trend with our recombinant superoxide dismutase, OxSODrol(tm), in reducing the incidence of asthma and neurodevelopmental deficits in premature infants, which we will now examine further in our clinical program. Our focus is clearly directed at maximizing our current commercial opportunities, while advancing our products through development to market."

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-

TABLE TO FOLLOW

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

                Three Months Ended          Six Months Ended
                      June 30                    June 30
                  ----------------         -----------------
                  1999        1998        1999        1998
_________________________________________________________________

Revenues:
Product sales    $19,381     $16,923     $35,248     $32,659
Contract fees      1,727         740       4,633       1,744
Other              1,772         983       3,227       1,683
Total
  revenues        22,880      18,646      43,108      36,086

Expenses:

Research
 and
 development       4,359       3,717       8,977       8,973
Cost of
 product
 sales             3,868       2,488       6,122       5,006
General and
 administrative    3,231       2,329       5,895       4,381
Marketing
 and sales         3,765       3,303       8,324       5,950
Other                453         236         777         383
Total expenses    15,676      12,073      30,095      24,693

Income before
 income taxes      7,204       6,573      13,013      11,393

Income taxes       2,104       2,030       3,907       3,485

Net income       $ 5,100     $ 4,543     $ 9,106     $ 7,908

Earnings
 per common
 share:

Basic            $  0.10     $  0.09     $  0.18     $  0.17
Diluted          $  0.10     $  0.09     $  0.17     $  0.16

Weighted
 average
 number of
 shares
 outstanding:

Basic             52,086      48,292      52,014      47,810
Diluted           53,358      50,514      53,217      50,893