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                                                                    EXHIBIT 99.1


FOR IMMEDIATE RELEASE



                    NEOTHERAPEUTICS ANNOUNCES EQUITY-BASED LINE OF CREDIT


IRVINE, California - April 1, 1998 - NeoTherapeutics, Inc. (NASDAQ: NEOT and
NEOTW) announced today that the Company has secured an equity-based $15 million
line of credit, with a single institutional investor, primarily for testing of
its lead compound, AIT-082, and the development of other key technology. AIT-082
is currently in Phase I clinical trials as a potential treatment for Alzheimer's
disease.

Under this privately-placed equity offering, NeoTherapeutics has the right,
subject to certain conditions, to draw up to $15 million cash in exchange for
NeoTherapeutics common stock. "This is an important and unique strategic funding
for the Company, as it provides us with significant cash reserves to continue
testing AIT-082. Essentially, it allows us to fund our testing on an on-going
basis and assures us that the funds will be available when needed," said Dr.
Alvin Glasky, Chief Executive Officer of NeoTherapeutics. "Entering into this
agreement also provides us with greater flexibility by strengthening our
financial position as we evaluate our other products in development."

Samuel Gulko, CFO, commented, "This financing will allow NeoTherapeutics to
continue to execute its business plan and accelerate our product development
timetable. Coupled with existing cash reserves, this innovative structure gives
NeoTherapeutics the ability to take advantage of potentially favorable market
conditions. Further, it protects our shareholders by leaving the timing and
amount of the draw to the discretion of NeoTherapeutics".

The equity line will remain available for a period of 30 months, and the
decision to draw any funds and the timing and amount for any such draw is solely
at the Company's discretion, subject to the satisfaction of certain conditions,
including the registration of the shares, which will be issued at a 12% discount
to the then current market price.

AIT-082, NeoTherapeutics' lead compound for Alzheimer's disease, is believed by
the Company to be the first orally active drug to enter human clinical trials
that is specifically designed to address the issue of nerve regeneration.
AIT-082 has been in Phase I clinical trials since March 1997 and plans are being
made to conduct the first Phase II human study this summer.


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In pre-clinical testing, AIT-082 has been demonstrated to reduce, delay or
prevent memory deficits in animals. In addition, AIT-082 has shown in laboratory
and animal studies to induce the production of three neurotrophic factors, NGF,
NT-3 and bFGF. These three factors have been reported to induce the
multiplication and functional maturation of cholinergic neurons, those known to
die in Alzheimer's disease.


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NeoTherapeutics Announces Equity-Based Line of Credit
April 1, 1998
Page Two



NeoTherapeutics, Inc., based in Irvine, CA, is a publicly traded
biopharmaceutical company dedicated to the discovery and development of drugs
that act on the central nervous system to repair nerve cells and treat
neurodegenerative diseases and conditions such as Alzheimer's disease, memory
deficits associated with aging, spinal cord injury, Parkinson's disease, stroke
and migraine. NeoTherapeutics' products are orally administered and based on
patented technologies.

This press release contains forward-looking statements regarding future events
and the future performance of NeoTherapeutics that involve risks and
uncertainties that could cause actual results to differ materially. These risks
include, but are not limited to, the biological activity, side effect profile
and efficacy of AIT-082, the early stage of product development, the initiation
and completion of additional clinical trials and the dependence on third parties
for clinical testing, manufacturing and marketing. These risks are described in
further detail in the Company's annual and quarterly reports filed with the
Securities and Exchange Commission.

- -----------------------------------------------
SOURCE: NEOTHERAPEUTICS, INC.
Contact:   Carol Hess                   Bob Ferris
           Investor Relations           President, Investor & Corp. Relations
           NeoTherapeutics, Inc.        Ruder-Finn, Inc.
           Tel:  714-788-6700           Tel:  212-715-1574
           Fax: 714-788-6706            Fax: 212-715-1660



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