CONTACT: Halsey Drug Co., Inc.
Investor Relations, Peter A. Clemens, SVP & CFO   847-705-7709



                             FOR IMMEDIATE RELEASE
                             ---------------------

          HALSEY DRUG CO., INC. ANNOUNCES EXPANSION OF 2004 FINANCING
          -----------------------------------------------------------

Palatine, IL, June 10, 2004: Halsey Drug Co., Inc. (OTC.BB-HDGC) today
announced it has issued a total of $14.0 million in convertible debentures
pursuant to the Debenture and Share Purchase Agreement executed by the Company
in February 2004. The Company also announced that the terms of the Debenture
and Share Purchase Agreement have been amended to increase the principal
amount of debentures issuable by the Company from $14.0 million to $17.5
million and the time to complete this additional financing has been extended
from June 5, 2004 to June 30, 2004.

Commenting, Andy Reddick, Chief Executive Officer said, "We are pleased with
the success of our capital raising efforts and believe that it demonstrates
confidence in our ability to execute our strategy to become a specialty
pharmaceutical company focused on developing proprietary opioid abuse
deterrent formulation technology and opioid API synthesis technologies.
Furthermore, in the event the Company is successful in raising additional
financing, of which no assurance can be given, such additional capital will
enable the Company to expand and expedite its development efforts."

Halsey Drug Co., Inc., together with its subsidiaries, is an emerging
pharmaceutical technology development company specializing in proprietary
opioid abuse deterrent formulation technology and opioid API synthesis
technologies.

This press release contains forward looking statements, within the meaning
of Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Act of 1934, as amended that are based on management's beliefs and assumptions,
current expectations, estimates and projections. Investors are cautioned that
forward looking statements involve risks, uncertainties and other factors,
which could cause actual results to differ materially from future results
expressed or implied by such forward looking statements. The most significant
of such factors include, but are not limited to, general economic
conditions, competitive conditions, technological conditions and governmental
legislation.  More specifically, important factors that may affect future
results include, but are not limited to: changes in laws and regulations,
particularly those affecting the Company's operations; the Company's ability to
continue to attract, assimilate and retain highly skilled personnel; its
ability to secure and protect its patents, trademarks and proprietary rights;
litigation or regulatory action that could require the Company to pay
significant damages or change the way it conducts its business; the Company's
ability to successfully develop and market its products; customer
responsiveness to new products and


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distribution channels; its ability to compete successfully against current
and future  competitors;  its dependence on third-party suppliers of raw
materials; the availability of controlled substances that constitute the
active ingredients of the Company's products in development; difficulties or
delays in clinical trials for Company products or in the manufacture of
Company products; and other risks and uncertainties detailed in Company
filings with the Securities and Exchange Commission. The Company is at an
early stage of development and may not ever have any products that generate
significant revenue.

Further, the forward looking statements speak only as of the date of such
statements are made, and the Company undertakes no obligation to update any
forward looking statements to reflect events or circumstances after the date
of such statements.  Any or all of the forward looking statements whether
included in this release or in the  Company's filings with the Securities and
Exchange Commission, may turn out to be wrong. Readers should remember that no
forward looking statement can be guaranteed and other factors besides those
listed above could adversely affect the Company, its operating results or
financial condition.

This and past press releases for Halsey Drug Co., Inc. are available at Halsey's
web site at www.halseydrug.com.





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