Biopharmaceutics Announces Signing of Letter of Intent to Sell Puerto Rico Subsidiary.

BELLPORT, N.Y.--(BUSINESS WIRE)--Oct. 20, 1998--Biopharmaceutics, Inc. (OTCBB: BOPM) announced today that it has signed a binding Letter of Intent to sell its Caribbean Medical Testing Center, Inc. ("CMT") division in Puerto Rico, to a local buyer, for a total of $4.8 million.

Biopharmaceutics originally paid a total of $7.5 million for CMT, the majority of which, was in the form of debt to the seller and an affiliate. The terms of the current proposed sale involve, among other things, the forgiveness of all the outstanding debt, amounting to more than $6 million. The sale is subject to the final execution of a formal Stock Purchase Agreement by no later than Dec. 10, 1998. Jonathan Rosen, Acting President of Biopharmaceutics, Inc. said: "Since the loss of key contracts at CMT in March of this year, CMT has not produced any significant cash flow for Biopharmaceutics. Under the terms of this sale and subject to the final execution of the Stock Purchase Agreement, Biopharmaceutics will write off assets consisting of "good-will" and also eliminate, in addition to $6 million of debt, all liabilities related to CMT from its books. This will further enable us to continue our strategy of focusing on our core asset, Quality Health Products, Inc. and its line of Feminine Hygiene brands."

Additionally, Biopharmaceutics announced today that it has restructured its Joint Venture with ABS Group, Inc., Biopharmaceutics' Joint Venture partner in the development of the DBD/Mitolactol project. Under the terms of the new Agreement, ABS Group will assume a 10% carried interest in Biopharmaceutics' fully diluted participation in the project. In addition, ABS Group will no longer be required to provide any further funding for this project. The original Joint Venture Agreement had provided ABS Group, Inc. with a 40% economic interest in the DBD project.

This Press Release contains forward looking statements within the meaning of Section 21A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbors created thereby. Actual results could differ materially from those projected in the forward looking statements.