FOR: BENTLEY PHARMACEUTICALS, INC. EXHIBIT 99.1 FOR IMMEDIATE RELEASE NORTH HAMPTON, NH, Dec. 23 - Bentley Pharmaceutical, Inc. (AMEX: BNT), a drug delivery company and international manufacturer, marketer, distributor and developer of pharmaceutical products, announced today that its Board of Directors has adopted a Stockholder Rights Plan. The Plan is designed to prevent a potential acquirer from gaining control of the company without fairly compensating all of the company's stockholders and to protect the company from unfair or coercive takeover attempts. The Plan was not adopted in response to any specific effort to acquire the company. James R. Murphy, Chairman and CEO of Bentley Pharmaceuticals, said, "The Board of Directors adopted the Rights Plan to ensure that the company's stockholders receive fair treatment in the event the company becomes a takeover target. The Board is neither encouraging nor discouraging potential acquirers, but is acting to mitigate the possibility of a takeover that does not recognize the full value of the company. The Plan is not intended to prevent an acquisition of the company if the terms are favorable and fair to all stockholders. Bentley has made significant progress with respect to developing its drug delivery technology that it acquired earlier this year. The company is in discussions with potential licensees of its technologies and these discussions will be advanced in the coming year. Management and the Board believe that the market has yet to recognize the potential of this technology and the significance of the company's accomplishments this year." The Board of Directors approved the declaration of the dividend of one right for each outstanding share of the company's common stock on the record date of December 27, 1999. Each of the rights, which are not currently exercisable, entitles the holder to purchase one one- thousandth of a share of Series A Junior Participating Preferred Stock at an exercise price of $16.50. Until exercisable, the rights are represented by and traded with the company's common stock and no separate certificates for the rights will be issued. In general, the rights will become exercisable only if any person or group of affiliated persons beneficially acquire(s) 15% or more of the company's common stock. Under certain circumstances, each holder of a right (other than the person or group who acquired 15% or more of the company's common stock) is entitled to purchase a defined number of shares of the company's common stock at 50% of the market price for the common stock at the time that the right becomes exercisable. The rights may be redeemed by the company for $.001 per right prior to the acquisition of ownership of 15% or more of the company's common stock and the rights will expire on December 21, 2004. The rights distribution is not taxable to stockholders. As soon as practicable after the record date, a summary of the Plan will be mailed to each stockholder of record on the record date. The company's Rights Plan is similar to those adopted by many other public companies, including pharmaceutical companies. Bentley Pharmaceuticals, Inc. is a drug delivery company focused on improving the absorption of a wide range of drugs through its new drug delivery technologies which is intends to commercialize through licensing collaborations in the U.S. and other major markets. Bentley manufacturers and markets products in Europe and collaborates with others to distribute its products in Asia, North Africa, and Central America for the treatment of cardiovascular, gastrointestinal, neurological and infectious diseases. Safe Harbor Statement 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 the uncertainity of future financial results, additional financing requirement, the ability to find effective market distribution channels, development of new products, regulatory -2- approval processes, the impact of competitive products or pricing, unpredictability of patent protection, technological changes, the effect of economic conditions and other uncertainties detailed in the Company's filings with the Securities and Exchange Commission. -3-