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BELMAC CORPORATION MOVES FORWARD ON EUROPEAN ACQUISITIONS

 TAMPA, Fla., Jan. 18 /PRNewswire/ -- Belmac Corporation (AMEX: BLM) announced today it has signed agreements contemplating the purchase of Biotekfarma, an Italian pharmaceutical company and Rosa-Phytopharma, a French pharmaceutical company. The company has also agreed to sell its rights to Amodex, its Amoxicillin-based antibiotic. Additionally, the company quantified the previously announced one-time charge against earnings that will be recorded for the period ended Dec. 31, 1992.
 President and Chief Operating Officer Michael M. Harshbarger said the potential acquisitions of Biotekfarma and Rosa-Phytopharma should add key strategic elements to Belmac's growth plan for Europe.
 Belmac signed an agreement on Dec. 31, 1992 to acquire Biotekfarma for approximately $14 million, subject to the satisfactory completion of due diligence of Biotekfarma by Belmac. The purchase price is the same as reported on Nov. 19, 1992 despite minor downward revisions of Biotekfarma's 1992 estimated sales, which favorably impacted the terms of the purchase payments. Belmac plans to finance the purchase price with a combination of debt financing and stock issuable to the sellers of Biotekfarma. The agreement for the purchase of Rosa-Phytopharma was formally entered into by Belmac on Jan. 6, 1993; however, the acquisition is subject to continuing negotiations. The purchase price of approximately $7.2 million is also the same as reported on Nov. 17, 1992 and would be financed through debt financing.
 Under the terms of both purchase agreements, the company is obligated to make certain cash payments related to these acquisitions. While the company's present cash balances are insufficient to meet these obligations, the company is currently pursuing efforts with certain financial institutions to secure the necessary debt financing.
 Amodex is being divested in conjunction with Belmac's European restructuring, as it no longer fits into the company's strategic plan. The company will receive 20 million French francs (approximately $3.6 million) for the sale of this product line.
 As for the one-time charges against earnings, Harshbarger said the write-off is expected to approximate $7 million. These charges will be applied against earnings for the quarter ended Dec. 31, 1992.
 Belmac announced last month that beginning in 1993, its fiscal year would end on Dec. 31 rather than June 30.
 The expenses to be charged against that period include:
 -- Costs related to the aggressive restructuring program for Belmac's French pharmaceutical operations. These costs relate to the appointment of a new general manager for French operations. The planned relocation of the French headquarters to Paris in early 1993, the company's decision to reexamine and redefine its marketing strategy, and its recognition of losses associated with the write-down of capitalized intangibles in connection with the sale of Amodex.
 -- The issuance of 75,000 shares of common stock to employees of Laboratorios Belmac in Spain as employment incentives.
 -- Costs related to previously announced senior level management changes in the United States and certain research and development activities.
 -- Costs associated with the change to a patch technology delivery system for Belmac's hemorrhoid medication, Alphanon, which reflect the write-off of capitalized patent and license costs related to the old drop formulation of Alphanon. In addition, the company plans to write off certain receivables and inventories related to Alphanon drops. As a result of Belmac's intention to transition from the drops to the new patch technology for delivery of Alphanon, the company does not anticipate revenue from the sale of Alphanon in the near future.
 Additionally it was announced that:
 -- In an effort to increase the visibility of Belmac's products in France through a most cost-effective manner, the company has signed a marketing agreement with Publi-Med, a well recognized French pharmaceutical marketing organization, which is replacing the company's internal health care marketing group. This should allow Belmac's French operation to quicken its pace toward profitability. As part of this strategic transition, Belmac will no longer market its infant and pediatric formulations of Biolid. Sales, to date, of the discontinued formulations have not been material. In addition, the company has revised its plans regarding the development of a pediatric formulation for use in the United States and no longer is working toward such development in the near term. However, the company remains firmly committed to the marketing of the adult formation of Biolid, which it believes is being well received by the French medical community.
 Harshbarger, who assumed his position in late November 1992, said the steps taken by management since his appointment are intended to position Belmac on solid financial footing for 1993 and beyond.
 "We believe that these actions will accelerate the time frame for bringing Belmac into profitability while strategically positioning the company for launching new or acquired products," Harshbarger said.
 Belmac Corporation is an international pharmaceutical company with a primary focus on the development and marketing of anti-infective drugs.
 -0- 1/18/93
 /CONTACT: Michael D. Price of Belmac Corporation, 813-286-4401; or Harry Costello of Hill and Knowlton, 813-221-0030, for Belmac Corporation/
 (BLM)


CO: Belmac Corporation ST: Florida IN: MTC SU:

JJ-JB -- FL010 -- 5976 01/18/93 15:57 EST
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Date:Jan 18, 1993
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