Exhibit 99 Contact: Halsey Drug Co., Inc. Investor Relations (718) 467-7500 FOR IMMEDIATE RELEASE --------------------- HALSEY DRUG CO., INC. ---------------------- ANNOUNCES COMPLETION OF THIRD PRIVATE PLACEMENT ----------------------------------------------- AND EXTENSION OF BANK AGREEMENT ------------------------------- BROOKLYN, N.Y., August 15, 1996, Halsey Drug Co., Inc. (AMEX-HDG) Rosendo Ferran, President and CEO today announced that the Company has successfully concluded a $2,500,000 private placement of 250 Units of securities. Each Unit consists of a 10% Convertible Subordinated Debenture maturing on August 6, 2001 and 461 Redeemable Common Stock Purchase Warrants. The Debentures are convertible into, and the Warrants are exercisable for, Halsey common stock at a price of $3.25 per share for a five year period commencing on August 6, 1996. The Company and its banks (the "Banks") amended the Company's Credit Agreement as a result of the consummation of this private offering and extended the Credit Agreement to December 31, 1996. As consideration for waiving any existing breach or default under the Credit Agreement the Banks received $391,614 of the proceeds as payment for interest, fees and principal. Halsey Drug Co., Inc. together with its subsidiaries, is a manufacturer of generic drugs in solid dosage, liquid and powder forms and bulk pharmaceutical chemicals sold to distributors, wholesalers, drugstore chains, institutions, government agencies and other pharmaceutical manufacturers nationwide.