Hopkins Capital Group II Converts BDSI Series B Preferred Stock at $4.25 per Share.

MORRISVILLE, N.C. -- BioDelivery Sciences International, Inc. (NASDAQ:BDSI) announced that Hopkins Capital Group II, LLC (HCG), a significant stockholder of BDSI which is affiliated with Dr. Frank O'Donnell, BDSI's Chairman, has converted all of the Series B Convertible Preferred Stock of BDSI held by HCG into BDSI common stock at a value of $4.25 per share. Accrued dividends under the Series B Preferred were converted at the closing market price on January 10, 2007. As a result of the conversion, HCG will receive 400,402 shares of unregistered common stock of BDSI.

HCG received its shares of Series B Preferred Stock of BDSI under an Equity Line of Credit Agreement entered into with BDSI in August 2004. Under such agreement, HCG had previously invested $1.45 million in BDSI and was entitled to $158,802 in accrued dividends, all of which were converted into BDSI common stock.

Dr. O'Donnell stated "HCG continues to be excited about our significant investment in BDSI and the company's potential, as evidenced by the conversion of our Series B Preferred Stock at a greater than 50% premium to BDSI's current market price. We are particularly pleased with the progress that the management team has made with the BEMA(TM) Fentanyl program, which we believe is on track for an NDA submission this year."

About BioDelivery Sciences International

BioDelivery Sciences International, Inc. is a specialty pharmaceutical company that is focused on developing innovative products to treat acute conditions such as pain. The company utilizes its owned and licensed patented drug delivery technologies to develop, partner and commercialize, clinically-significant new products using proven therapeutics. BDSI's pain franchise currently consists of two products in development utilizing the company's patented BEMA[TM] oral adhesive disc technology: BEMA(TM) Fentanyl, a treatment for "breakthrough" cancer pain, and BEMA(TM) LA, a second analgesic with a target indication of the treatment of moderate to severe pain. The company is also working with both its BEMA(TM) technology and its patented Bioral([R]) nanocochleate technology on products targeted at other acute treatment opportunities such as insomnia, nausea and vomiting, and infections. The company's headquarters are located in Morrisville, North Carolina and its principal laboratory is located in Newark, New Jersey. For more information please visit www.bdsinternational.com.

Forward-Looking Statements

Note: Except for the historical information contained herein, this press release contains, among other things, certain forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, that involve risks and uncertainties. Such statement may include, without limitation, statements with respect to the Company's plans, objectives, projections, expectations and intentions and other statements identified by words such as "projects", "may", "could", "would", "should", "believes", "expects", "anticipates", "estimates", "intends", "plans" or similar expressions. These statements are based upon the current beliefs and expectations of the Company's management and are subject to significant risks and uncertainties, including those detailed in the Company's filings with the Securities and Exchange Commission. Actual results, including, without limitation, actual sales results, if any, the application of funds, or the timing for completion and results of scheduled or additional clinical trials and FDA review of the Company's formulations and products, may differ from those set forth in the forward-looking statements. These forward-looking statements involve certain risks and uncertainties that are subject to change based on various factors (many of which are beyond the Company's control). Peak sales and market size estimates have been determined on the basis of market research and comparable product analysis, but no assurances can be given that such sales levels will be achieved, if at all.