Bio-Technology General Announces Second Quarter 2000 Earnings of $0.10 Per Share.

Business Editors

ISELIN, N.J.--(BUSINESS WIRE)--July 20, 2000

Bio-Technology General Corp. (NASDAQ:BTGC) today announced earnings for the quarter and six months ended June 30, 2000.

Net income for the second quarter was $5.5 million, or $0.10 per share, on revenues of $24.6 million, compared to net income of $5.1 million, or $0.10 per share, on revenues of $22.9 million in the comparable quarter of 1999. For the first six months of 2000, the Company's net income was $6.9 million, or $0.12 per share, on revenues of $42.0 million, compared to net income of $9.1 million, or $0.17 per share, on revenues of $43.1 million in the comparable 1999 period.

Product sales for the quarter and six months ended June 30, 2000 were $14.1 million and $26.6 million, compared to $19.4 million and $35.2 million, respectively, in the comparable 1999 periods. These were affected by the final phase of the Oxandrin(R) inventory reduction, which has now been completed, and by variations in the timing of purchases of other products by the Company's distributors.

Commenting on the results, Sim Fass, Chairman and Chief Executive Officer of BTG stated: "Oxandrin prescriptions in the first five months of 2000 increased by 7% over the comparable 1999 period, reflecting a somewhat slower growth rate in the market for all involuntary weight loss products for individuals with HIV/AIDS. This growth was not fully reflected in actual first half 2000 Oxandrin sales because of the last phase of the now completed inventory adjustment at Gentiva Health Services, Inc. (formerly Olsten Health Services, Inc.), BTG's distributor for the product. Future purchases of Oxandrin by Gentiva will now reflect actual end user sales of the product. In addition, Abbott Laboratories' launch of Oxandrin into other sectors of the involuntary weight loss market, under the recently announced co-marketing agreement, should begin to generate new growth in sales of the product beginning in the fourth quarter this year."

Contract fees in the three and six months ended June 30, 2000 were $7.5 million and $10.0 million, respectively, significant increases over contract fees of $1.7 million and $4.6 million, respectively, in the comparable 1999 periods. These increases relate to BTG's agreement with Teva Pharmaceutical Industries Ltd. (NASDAQ:TEVA), for the development and global commercialization of several generic recombinant therapeutic products, and to BTG's agreement with DePuy Orthopaedics Inc., a Johnson & Johnson Company (NYSE:JNJ), for BTG's BioHy(TM) product for the treatment of osteoarthritis.

Expenses for the quarter and six months were $16.3 million and $31.4 million, compared to $15.7 million and $30.1 million, respectively, in 1999. Increases in expenses were recorded in the three and six months ended June 30, 2000 with respect to research and development and marketing and sales expense, and in the six months ended June 30, 2000 in general and administrative expense. Cost of product sales declined due to lower product sales as a result of variations in timing of purchases by distributors and the final stage of the Oxandrin inventory reduction by Gentiva.

Due to a reduction in certain previously available tax credits, income taxes in the first six months of 2000 increased to 34% from approximately 30% in 1999, thereby impacting earnings per share. In addition, the weighted average number of basic and diluted shares used in computation of basic and diluted earnings per share increased by two million and four million respectively from 1999 to 2000. Second Quarter Developments

During the second quarter of 2000, several important events took place. The Company believes some of these could have a positive impact on its results for the balance of this year.

- During the second quarter of 2000, BTG met an initial milestone of its
agreement with Teva by completing the expression of the first recombinant
biogeneric product to be developed by BTG for commercialization by Teva. A
milestone payment was earned and recognized in BTG's contract fee revenues for
the quarter.

- BTG has been identified for the sixth consecutive year, by the New Jersey
Technology Fast 50, as one of the 50 fastest growing technology companies in
New Jersey. This ranking is based on the corporate revenue growth rate over the
five-year period between 1995 and 1999.

- On June 23, 2000, BTG entered into an agreement with DePuy

Orthopaedics Inc. ("DePuy"), a Johnson & Johnson Company

(NYSE:JNJ), granting DePuy exclusive marketing rights in most

countries worldwide to BioHy(TM), BTG's proprietary high molecular

weight sodium hyaluronate product, for the treatment of pain

associated with osteoarthritis of the knee. A license fee was

earned upon execution of the agreement and recognized in BTG's

contract fee revenues for the quarter. BTG is currently conducting

a Phase III safety and efficacy study in Europe comparing BioHy

with Synvisc(R), a well accepted commercial product in the

European viscoelastic market for osteoarthritis of the knee.

Completion of the study, to be followed by a regulatory submission

for approval to market BioHy in Europe, is anticipated this year.

Injections of sodium hyaluronate into the knee have been shown to

reduce pain associated with osteoarthritis of the knee by

augmenting elastoviscosity within the joint. The current

worldwide market for viscoelastic products for osteoarthritis of

the knee is approximately $400 million, and is expected to grow

as the aging population increases.

- During the second quarter of 2000, BTG met an initial milestone of its
agreement with Teva by completing the expression of the first recombinant
biogeneric product to be developed by BTG for commercialization by Teva. A
milestone payment was earned and recognized in BTG's contract fee revenues for
the quarter.

- BTG has been identified for the sixth consecutive year, by the New Jersey
Technology Fast 50, as one of the 50 fastest growing technology companies in
New Jersey. This ranking is based on the corporate revenue growth rate over the
five-year period between 1995 and 1999.

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 30 countries worldwide. Products sold in the United States are Oxandrin(R) (oxandrolone, USP), and Delatestryl(R) (testosterone enanthate), marketed directly by BTG, Mircette(TM) (oral contraceptive), marketed by Organon, Inc. and BioLon(TM) (sodium hyaluronate), marketed by BTG's distributor, Akorn, Inc. Products sold internationally are Bio-Tropin(TM) (recombinant human growth hormone) and BioLon(TM) (sodium hyaluronate). BTG's news releases and other information are available on the company's Web site at www.btgc.com.

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.

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

                  Three Months Ended          Six Months Ended
                       June 30                    June 30
                   ----------------        -----------------
                   2000        1999        2000            1999

Revenues:
Product sales   $   14,082 $   19,381  $   26,589    $   35,248
Contract fees        7,500      1,727       9,976         4,633
Other                3,048      1,772       5,465         3,227
                   -------  ---------     -------       -------
Total revenues      24,630     22,880      42,030        43,108
                   ------      ------      ------        ------

Expenses:
Research and
development          5,635      4,359      11,032         8,977
Cost of product
sales                1,911      3,868       4,247         6,122
General and
administrative       3,182      3,231       6,628         5,895
Marketing and
sales                5,315      3,765       8,571         8,324
Other                  281        453         965           777
                    ------     ------      ------        ------
Total expenses      16,324     15,676      31,443        30,095
                    ------     ------      ------        ------

Income before
income taxes         8,306      7,204      10,587        13,013

Income taxes         2,843      2,104       3,639         3,907
                     -----      -----       -----         -----

Net income      $    5,463   $  5,100    $  6,948    $    9,106
                     =====      =====       =====         =====

Earnings per
common share:
Basic           $     0.10    $  0.10  $     0.13    $     0.18
                      ====       ====        ====          ====
Diluted         $     0.10   $   0.10  $     0.12    $     0.17
                      ====       ====        ====          ====

Weighted average number of shares outstanding:

Basic               54,303     52,086      54,026        52,014
                    ======     ======      ======        ======
Diluted             57,015     53,358      57,188        53,217
                    ======     ======      ======        ======