Avitar, Inc. Extends Expiration Date And Reduces Exercise Price For Redeemable Warrants

Business Wire, April 14, 1997

CANTON, Mass.--(BUSINESS WIRE)--April 14, 1997--Avitar, Inc. ("the Company") [Nasdaq SmallCap Market:AVIT (Common Stock); AVITW (Redeemable Warrants)] today announced that it has extended the expiration date of its Redeemable Warrants from April 30, 1997 to June 30, 1997. In addition, the Company announced that the Redeemable Warrant exercise price has been reduced so that each warrant entitles the holder to purchase 4 shares of Common Stock (subject to further adjustment) for $.60 per share. THIS OFFERING WILL BE MADE ONLY BY MEANS OF A PROSPECTUS.

The Company has approximately 2.7 million Redeemable Warrants outstanding. If all of these warrants were exercised, approximately 11 million shares of Common Stock would be issued in exchange for the aggregate exercise price of approximately $6.5 million.

Peter Phildius, Avitar's Chairman and CEO, stated, "By reducing the exercise price and extending the exercise date of the Redeemable Warrants, we hope to raise funds that will be used to provide working capital and expand the business of the Company. This will enable Avitar to continue pursuing its strategy for profitable growth."

There can be no assurance that any or all of the outstanding Redeemable Warrants will be exercised. The Company continues to consider a Rights Offering to its shareholders.

Avitar, Inc. designs, develops, manufactures and markets healthcare products and services including Hydrasorb, a proprietary line of polyurethane wound care dressings and rapid diagnostic test products. The Company also provides healthcare cost containment services to employers and third-party payors. -0-

This release contains forward looking statements that are subject to risks and uncertainties, including, but not limited to, the ability of the Company to induce holders of the Company's Redeemable Warrants to purchase the Company's Common Stock and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission.

CONTACT: AVITAR, INC.

Peter Phildius, Chairman of the Board

(617) 821-2440

Jay Leatherman, Chief Financial Officer

(203) 265-3594