Biopharmaceutics announces Medicare fine reduction.

BELLPORT, N.Y.--(BUSINESS WIRE)--Nov. 27, 1995--Biopharmaceutics Inc. (OTCBB: BIOP) announced today that the court imposed fine of $175,000, resulting from the August 1989 conviction in the Medicare fraud case, has been reduced to $50,000 by the Federal Judge who presided at the original trial.

The $50,000 is payable $25,000 in 30 days and $25,000 in six months. The fine will not accrue any interest. The reduction of the fine and the elimination of interest previously accrued on the company's books will result in one-time, non-recurring income of approximately $229,000 to the company. The company's Medicare business was conducted by prior management and had been discontinued in 1986.

Edward Fine, President of Biopharmaceutics, said "The company had been working with the government for over a year and had been supplying information which led to the prosecution of a former employee responsible for Medicare during the time that the company had been in the Medicare business. That cooperation ultimately led to the reduction of the fine. We are pleased that the government found our cooperation valuable, and hope that this will be another step toward establishing better relations with the government, overall."

CONTACT: Biopharmaceutics Inc.

Stuart Fine, 516/286-5800