Bio-Technology General announces second quarter 1996 earnings; earnings grow by 500% to six cents per share.

ISELIN, N.J.--(BUSINESS WIRE)--July 23, 1996--Bio-Technology General Corp. (NASDAQ:BTGC) today announced increased earnings of 500% and 330%, respectively, for the quarter and six months ended June 30, 1996.

Net income for the second quarter of 1996 was $2.8 million, or $0.06 per share, on revenues of $12.2 million, compared to net income of $0.5 million, or $0.01 per share, on revenues of $7.3 million, in the comparable quarter of 1995.

For the first six months of 1996, the Company's net income was $3.7 million, or $0.08 per share, on revenues of $22.9 million, compared to net income of $0.9 million, or $0.02 per share, on revenues of $13.0 million in the comparable 1995 period. Net income for the first six months of 1996 took into account a write-off of previously capitalized expenses of $1.4 million, or $0.03 per share, in the first quarter of 1996. Before the write-off, income from operations for the first six months of 1996 was $5.1 million, or $0.11 per share.

Driven especially by growing sales of Oxandrin., product sales for the quarter and six months ended June 30, 1996 increased approximately 82% and 67% to $11.6 million and $19.3 million compared to $6.4 million and $11.6 million, respectively, for the comparable 1995 periods. Second quarter 1996 product sales also increased 51% over the first quarter from $7.7 million to $11.6 million. This increase, too, was primarily due to increasing sales of Oxandrin, introduced in the U.S. in December of 1995. Product sales for the first half of 1996, represented 84% of total revenues. Total expenses for the quarter and six months were $9.4 million and $17.8 million, compared to $6.8 million and $12.2 million, respectively, in 1995. The increase in expenses was due primarily to increased cost of goods and marketing and sales expenses connected with the launch of Oxandrin.

Commenting on the results, Sim Fass, President and Chief Executive Officer stated: "In the second quarter, we met our goal of improving even further upon our profitable first quarter results. Product sales have continued to grow and account for a larger percentage of our total revenues. In particular, we are greatly encouraged by the growth in Oxandrin sales which increased substantially in the second quarter. We intend to build not only on our Oxandrin achievements but also on growth from our other products."

Bio-Technology General Corp. develops, manufactures and markets genetically engineered and other products for human health care. -0-

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

                   Three Months Ended         Six Months Ended
                        June 30                    June 30
                   ________________           _________________
                     1996      1995             1996      1995

Revenues:
   Product sales   $   11,618   $   6,399   $   19,313      $11,582
   Contract fees           70         221        2,795          316
   Research and
    development
    revenues
    under collaborative
    agreements           --           175          --           363
   Other revenues        238          270          338          327
   Interest income       262          226          453          452
                      12,188        7,291       22,899       13,040

Expenses:
   Research and
    development        2,830        2,771        5,934         5,615
   Cost of product
    sales              2,202        1,165        3,368         1,817
   General and
    administrative     2,330        1,813        4,250         3,473
   Marketing and sales 1,695          --         2,904           --
   Commissions and
    royalties            313          186        1,281           337
   Interest and finance   42           41           77            81
   Research and
    development financing --          856          --            856
                       9,412        6,832       17,814        12,179

Income before write-off
 in connection
 with litigation       2,776          459        5,085           861

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

Net income         $   2,776      $   459    $   3,702       $   861

Earnings per share  $   0.06      $  0.01    $    0.08       $  0.02

Weighted average number
 of shares outstanding  47,602     43,765       47,351        43,580

CONTACT: Bio-Technology General Corp., Iselin

Leah Berkovits, 908-632-8800

or

Strategic Growth International

Don Weinberger, 516-829-7111