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Business Editors/Health/Medical Writers

NORTH HAMPTON, N.H.--(BUSINESS WIRE)--Feb. 27, 2003

Bentley Pharmaceuticals, Inc.(AMEX:BNT):

Year-end Revenue Jumps 48 % to Record $39.1 Million,

Fueled by Generic Product Strength in Spain

Positive 2003 Outlook with Strong Product Pipeline

Bentley Pharmaceuticals, Inc. (AMEX: BNT), a specialty pharmaceutical company focused on advanced drug-delivery technologies, which also manufactures and markets generic and branded products in Europe, today announced financial results for the fourth quarter and twelve months ended December 31, 2002.

Total revenue for the fourth quarter of 2002 increased 41%, reaching a record $11.5 million from $8.2 million in the prior-year fourth quarter, reflecting the Company's expanding market share in Spain. Fourth quarter operating income was $1.2 million compared with an operating loss of $(402,000) in the comparable quarter in 2001. Net income in the 2002 fourth quarter was $691,000, or $0.04 per basic common share and $0.03 per diluted common share, compared with a net loss of $(563,000), or $(0.04) per basic and diluted common share, in the comparable prior-year fourth quarter.

James Murphy, president and CEO, stated, "We closed out the year with an outstanding quarter marked by significant progress in expanding our market share in Spain - and we are seeing this strong growth trend continue in the first quarter of 2003."

Year-end total revenue grew 48% to a record $39.1 million from $26.4 million in the same prior-year period, primarily reflecting the rapid success of Bentley's generic products in Spain. Net income for the twelve-month period reached $1.6 million, or $0.10 per basic common share and $0.08 per diluted common share, compared with $1.4 million, or $0.10 per basic common share and $0.08 per diluted common share, in the comparable period of the prior year.

It is important to note that prior-year net income included a gain of $5.0 million from the sale of a cardiovascular product line, whereas the current year net income includes a gain of $650,000 from the sale of drug licenses. The Company's progress is much more apparent when these gains are excluded from the analysis. Income from operations before gain on sale of product lines in 2002 totaled $3.4 million, which is an improvement of $4.6 million on the prior-year's loss of $1.2 million.

"Our top-line growth of nearly fifty percent reflects the immediate interest in and adoption of our products in Spain as well as our delivering results that equal or exceed all financial performance expectations," added Murphy. "We successfully achieved our goals of expanding our product lines in Spain in our four target areas of cardiovascular, gastrointestinal, infectious and neurological diseases. This growth is particularly significant since the majority of these new products were developed by our subsidiaries - after all, the Teva collaborative products, where we have the rights to register and market 75 Teva Pharmaceutical (Nasdaq: TEVA) products in Spain, are only just beginning to impact our growth.

"What is most amazing is that we achieved these impressive results by just barely skimming the surface of Spain's huge market. As we ramp up our sales and marketing initiatives in Spain and as our Teva relationship kicks into high gear, combined with the numerous products pending in our pipeline, we expect continued dynamic growth in the Spain market.

"We were also successful in advancing our drug delivery business in the U.S. as evidenced by the FDA's approval of Testim(TM) and its recent launch. This is a significant milestone for Bentley because it is the first commercial product utilizing our drug delivery platform, CPE-215(R). Moreover, this patented delivery platform is the same technology utilized in our current drug delivery product pipeline."

Murphy concluded, "We entered 2003 extremely well positioned, financially and strategically, to further build on the momentum established in 2002. Given our strong balance sheet, early entry into under-penetrated high growth markets, strong product pipeline and positive visibility, we remain confident that 2003 will be our best year yet."

2002 - A Year of Success at Bentley Pharmaceuticals

NOTICE OF CONFERENCE CALL

The Company will host a conference call today at 10:00 A.M. EST. To participate in the live call, telephone (888) 335-6674. A replay will be available by telephone for two weeks following the completion of the live call, at (877) 519-4471 toll free in the U.S., or (973) 341-3080 for international callers, PIN #3767792.

Bentley Pharmaceuticals, Inc. is a specialty pharmaceutical company focused on advanced drug delivery technologies and pharmaceutical products. Bentley's proprietary drug technologies enhance or facilitate the absorption of pharmaceutical compounds across various membranes. Bentley also manufactures and markets a growing portfolio of generic and branded pharmaceuticals in Spain for the treatment of cardiovascular, gastrointestinal, infectious and neurological diseases through its subsidiaries Laboratorios Belmac and Laboratorios Davur. Copies of the Company's press releases and other information may be obtained through Bentley's web site at www.bentleypharm.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements which are not historical facts contained in this press release are forward-looking statements that involve certain risks and uncertainties including but not limited to risks associated with identifying suitable drugs for drug delivery technologies, expanding generic and branded drug operations, development and commercialization of our products, relationships with our strategic partners, uncertainty of clinical trials, regulatory approval process, product sales concentration, unpredictability of patent protection, technological changes, the effect of economic conditions and other uncertainties detailed in Bentley's filings with the Securities and Exchange Commission.

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