Bio-Technology General Corp. Closes Acquisition of Rosemont Pharmaceuticals.

Business Editors & Health/Medical Writers

BIOWIRE2K

ISELIN, N.J.--(BUSINESS WIRE)--Sept. 30, 2002

-- Accretive to Earnings --

-- Strengthens Specialty Pharma Portfolio --

-- Provides Presence in European Market --

Bio-Technology General Corp. (Nasdaq:BTGCE) today announced the closing of its acquisition of Rosemont Pharmaceuticals, Ltd., a subsidiary of Akzo Nobel (Amsterdam:AKZO.AS), and a leader in the UK market for oral liquid formulations of branded non-proprietary drugs.

Rosemont is a profitable specialty pharmaceutical company based in Leeds, England, that develops, manufactures, and markets prescription drugs in oral liquid form primarily for the domestic UK market.

The purchase price for the cash acquisition was (pound)61 million, or approximately $94 million, net of Rosemont's cash balances.

"We are very pleased indeed with our acquisition of Rosemont, which we believe, given Rosemont's high margins, leading position in the UK market for oral liquid drug formulations, its long history of profitability, and its stellar growth, was attractively priced and in line with similar such transactions," stated Sim Fass, Chairman and Chief Executive Officer of BTG. "The Rosemont division will immediately generate an incremental revenue stream for us in 2002 and we currently anticipate it will be significantly accretive to earnings beginning in 2003."

Rosemont's competitive and financial highlights include:

-- 2001 net revenues of (pound)13.1 million ($20.3 million),

EBITDA of (pound)5.6 million ($8.7 million), and three-year

compound revenue growth rate of approximately 15%, and for the

six months ended June 30, 2002, net revenues of (pound)7.3

million ($11.3 million), EBITDA of (pound)3.2 million ($5

million), and revenue growth of 16%, compared to the six

months ended June 30, 2001;

-- total revenues in 2002 that are anticipated to grow by 16%

compared to revenues in 2001;

-- operations in a market sector that is growing at 15% per

annum, or more than twice the growth rate of the overall UK

pharmaceutical market;

-- products that are able to command premium pricing in

comparison to competing tablet formulations by satisfying an

otherwise unmet market need;

-- attractive gross margins commensurate with patent-protected

products;

-- a leadership position in the niche UK marketplace for oral

liquid drugs;

-- products that primarily service the elderly, a population

expected to grow significantly over the coming years; and

-- support for the consumption of oral liquid formulations from

the UK Medicines Control Agency.

Products manufactured and marketed by Rosemont include CNS and cardiovascular drugs and a recently introduced patented oral liquid formulation of tamoxifen, trademarked Soltamox, for the treatment of early and advanced stage breast cancers. Global rights to the tamoxifen product are also included in the acquisition.

Sim Fass concluded: "Our acquisition of Rosemont provides us with a valuable presence in the European specialty pharmaceutical marketplace. We welcome and look forward to working with Rosemont's management team in continuing to grow the business at its historical double-digit levels, and to supporting the introduction of new oral liquid formulations for the UK market. Beyond the Rosemont acquisition, and consistent with our corporate goals, we continue to actively seek to enhance our US and worldwide business through further strategic acquisitions and alliances."

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 worldwide. Products sold in the United States are Oxandrin(R) (oxandrolone, USP), marketed by BTG and by the Ross Products Division of Abbott Laboratories under a co-marketing agreement, Delatestryl(R) (testosterone enanthate), marketed by BTG, Mircette(R) (oral contraceptive), marketed by Organon, Inc., and BioLon(TM) (sodium hyaluronate), marketed by Akorn, Inc. Products sold internationally are Bio-Tropin(TM) (recombinant human growth hormone), BioLon(TM) (sodium hyaluronate), Bio-Hep-B(TM) (hepatitis B vaccine), Silkis(R) (vitamin D derivative), Arthrease(TM) (sodium hyaluronate for osteoarthritis), and recombinant human insulin. BTG's news releases and other information are available on the Company's website at www.btgc.com.

Arthrease is a trademark of DePuy Orthopaedics, Inc., Mircette is a registered trademark of Organon, Inc., Silkis is a registered trademark of Galderma.

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 that 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.