BONE CARE INTL. REPORTS INCREASED REVENUES FOR FIRST QTR.

Bone Care International, Inc. (NASDAQ: BCII), Middleton, Wis., has announced that total revenues for the first quarter ended September 30, 2002 increased to $5.4 million from $2.6 million in the quarter ended September 30, 2001. Hectorol(R) Injection sales increased to $4.2 million in the current quarter from $1.0 million in the first quarter of the prior fiscal year. Bone Care reported a net loss of $1.6 million, or $0.12 per share for the quarter ended September 30, 2002, compared to a net loss of $2.1 million, or $0.15 per share for the quarter ended September 30, 2001.

Gross margins for the quarter ended September 30, 2002, were $3.9 million, or 72% of revenues compared to $2.1 million, or 78% of revenues in the quarter ended September 30, 2001. Bone Care has increased expenditures for quality assurance and compliance directed toward resolving manufacturing issues with the current supplier of Hectorol Injection and validating an additional supplier. Based on discussions with the FDA, Bone Care intends to follow an accelerated submission pathway for both of these contract manufacturers once they complete validation lots. Each manufacturer must receive FDA clearance before Bone Care can commercially release its product. In the event Bone Care does not receive additional commercial supply of Hectorol Injection prior to the year end, revenues will be approximately $4 million in the December 2002 quarter.

Paul Berns, president and CEO, commenting on the manufacturing issues, said, "We are encouraged by the progress we have made with both contract manufacturers and our recent discussions with the FDA. Our goal remains to receive additional commercial supply of Hectorol Injection in the December 2002 quarter. Although we cannot at this point give assurance that we will meet that goal, we believe that we will have commercial supply of Hectorol Injection from one or both of our contract manufacturers no later than the first quarter of 2003. We are simultaneously managing current inventory levels to support our supplier channels. As always, our commitment is to support the needs of our end-users, the clinics and patients that rely on Hectorol Injection and to commence production as soon as possible."

Bone Care (www.bonecare.com) is a pharmaceutical company engaged in discovering, developing and commercializing improved vitamin D-hormone therapies to treat secondary hyperparathyroidism in patients with kidney, or renal disease, and osteoporosis, and other diseases including psoriasis and cancers of the prostate, breast and colon.

For more information, call 608/662-7815.