THE CORPORATE LIBRARY

Related Party Transactions and Outside Related Director Information

Bradley Pharmaceuticals, Inc. (BDY)

6/9/2006 Proxy Information

We have a number of related party transactions, all of which we believe are on terms no less favorable to us than we could have obtained from unaffiliated third parties.

During 2004, we received administrative support services (consisting principally of mailing, copying, financial services, data processing and other office services) which were charged to operations from Medimetrik, Inc. (f/k/a Banyan Communications Group, Inc.) (“Medimetrik”), an affiliate, in the amount of approximately $29,000. Daniel Glassman, our Chairman of the Board of Directors, Chief Executive Officer and President, and Iris Glassman, an officer, a member of our Board of Directors and spouse of Daniel Glassman, are majority owners of Medimetrik. Medimetrik is a privately held entity that currently has no operations but was principally engaged in the business of market research services, which ceased providing services to us in June 2004 after it was sold to an unrelated third party.

We lease approximately 33,000 square feet of office and warehouse space at 383 Route 46 West, Fairfield, New Jersey, under a lease expiring on January 31, 2008. The owner and manager of this property is a limited liability company that is owned and controlled by Daniel Glassman and his spouse, Iris Glassman. At our option, we can extend the term of the lease for an additional five years beyond expiration. The lease agreement obligates us to pay 3% increases in annual lease payments per year. Rent expense, including our proportionate share of real estate taxes, was approximately $487,000 and $614,000 in 2004 and 2005, respectively.

We historically paid to Dr. C. Ralph Daniel, III, a member of our Board of Directors, since Dr. Daniel joined our Board during June 2003, a monthly consulting fee of $2,500. This fee was paid to Dr. Daniel in consideration for product performance, patient review, general marketing and corporate development services performed on our behalf by Dr. Daniel. This monthly consulting fee was credited, on a dollar-for-dollar basis, against the annual cash retainer payable by us to Dr. Daniel in consideration for Dr. Daniel’s serving as one of our directors. We had also agreed to pay to Dr. Daniel a success fee calculated on a “Lehman Formula” basis, but not to exceed $300,000, if Dr. Daniel first introduced to us a product licensing or acquisition opportunity or merger or acquisition candidate which we had not yet internally identified (collectively, a “New Business Opportunity”) and such New Business Opportunity was consummated by us. Dr. Daniel and we agreed to terminate Dr. Daniel’s consulting and “Lehman Formula” transaction success fee arrangement effective March 31, 2006. No success fee was ever paid by us to Dr. Daniel.

We paid to Steven Kriegsman, a member of our Board of Directors, for the period commencing during June 2003, when Mr. Kriegsman joined our Board, and continuing through November 1, 2004, when Mr. Kriegsman became Chairman of our Audit Committee (the “Applicable Period”), a monthly consulting fee of $2,500. This fee was paid to Mr. Kriegsman in consideration for his assisting us in identifying New Business Opportunities. We had also agreed to pay to Mr. Kriegsman during the Applicable Period a success fee in the amount of 3% of the total transaction value of any New Business Opportunity consummated by us if such New Business Opportunity was first introduced to us by Mr. Kriegsman. Mr. Kriegsman and we agreed to terminate Mr. Kriegsman’s consulting and transaction success fee arrangement during November 2004, concurrently with Mr. Kriegsman’s appointment as Chairman of our Audit Committee. No success fee was ever paid by us to Mr. Kriegsman.

4/28/2004 Proxy Information

Mr. Michael J. Fedida is Dr. Andre Fedida's brother.

Mrs. Glassman is the spouse of Mr. Daniel Glassman.

During 2003, we received administrative support services (consisting principally of mailing, copying, financial services, data processing and other office services) which were charged to operations from Medimetrik Inc. (formerly Banyan Communications Group, Inc.), an affiliate, in the amount of $55,532. Daniel Glassman, our Chairman of the Board of Directors, Chief Executive Officer and President, and Iris Glassman, an executive officer, a member of the Company’s Board of Directors and spouse of Daniel Glassman, are majority owners of Medimetrik. Medimetrik is a privately held entity that is principally engaged in the business of market research services.

During 2003, we leased 24,000 square feet of office and warehouse space at 383 Route 46 West, Fairfield, New Jersey, expiring on January 31, 2008, from a limited liability company controlled by Daniel and Iris Glassman whose purpose is to own and manage the property at 383 Route 46 West. At the Company’s option, the Company can extend the term of the lease for an additional 5 years beyond expiration. The lease agreement contractually obligates us to pay 3% increases in annual lease payments per year. Rent expense, including our proportionate share of real estate taxes, was approximately $496,000 in 2003.

Compensation Committee Interlocks and Insider Participation

Daniel and Iris Glassman served as members of our Compensation Committee until January 2004 and were subsequently replaced by independent directors.