Biopharmaceutics, Inc. Closes Its Generic Drug Manufacturing Subsidiary and Announces Equity Capital Injection

Business Wire, Jan 15, 1999

BELLPORT, N.Y.--(BUSINESS WIRE)--Jan. 15, 1999--Biopharmaceutics, Inc. (OTCBB:BOPM) announced today, that it has ceased all production at its generic and contract pharmaceuticals division.

Jonathan Rosen, Acting President and CEO of Biopharmaceutics, Inc., said; "Our drug manufacturing division does not fit with our overall strategy for growth. This closure will allow us to focus solely on the development and sales growth of our feminine hygiene Branded product lines, concentrating our efforts on generating profit in the multi-billion dollar feminine health market. Once the liquidation of the drug manufacturing division is completed, Biopharmaceutics will have eliminated all unnecessary secured debt and rescheduled the one remaining long-term obligation to a very manageable amount. Partly as a result of the significant reduction in these liabilities, the Board's consolidation plans are progressing well and are near completion. In addition, the Company continues to further its plans with regard to the development of its DBD/Mitolactol brain cancer drug, without the need for further capital investment by the Company. However, since we are now entering the final stages of the corporate "clean-up" process, it is essential that we provide new growth capital for our core business, our feminine hygiene Branded products."

Because of the urgent need for new capital to be invested into the Company's core asset, the Board of Directors has determined to voluntarily (through individual directors and their affiliates) provide the sum of up to $1M in equity capital to be contributed at a 20% premium to the current market price for the Company's shares. To date, a total of $600,000 of fresh capital has been invested through an affiliated entity of Messrs. Rosen and Figliolini, directors of the Company. In addition, Renaissance Capital Partners has committed to an investment of $200,000 of equity capital. Renaissance Capital has Mr. Russell Cleveland as one of its principals and he is also Chairman of the Board of Directors of Biopharmaceutics, Inc. Mr. Rosen commented that "our investment demonstrates the Board's belief in the Company's growth strategy and our commitment to its future. We feel confident that the Company shall continue to be successful in its efforts to rebuild shareholder value."

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.