Avitar, Inc. Obtains $350,000 Credit Line From Silicon Valley Bank

Business Wire, May 5, 1998

CANTON, Mass.--(BUSINESS WIRE)--May 5, 1998--Avitar, Inc. (NASD OTC Bulletin Board:AVIT)(Common Stock); today announced an expanded relationship with Silicon Valley Bank through the addition of a Revolving Line of Credit. Under this arrangement, Avitar can borrow up to $350,000. Previously, the Company's borrowing was limited to the financing of certain accounts receivable.

Peter Phildius, Avitar's Chairman and CEO, stated, "To fund the continued growth, development and expansion of our business, we have undertaken a program to obtain additional debt and equity capital. This arrangement is an integral part of that program. We are pleased that our relationship with Silicon Valley Bank has enabled us to obtain this credit line which provides us with access to working capital."

Avitar, Inc. designs, develops, manufactures and markets healthcare products and services including a proprietary line of polyurethane wound care dressings and rapid diagnostic test products.

"Safe Harbor" statement under the Private Securities Reform Act of 1995: This release contains forward looking statements that are subject to risks and uncertainties, including the development of new applications, and are detailed from time to time in the Company's filings with the Securities and Exchange Commission.

CONTACT: AVITAR, INC. CONTACT:

Peter Phildius, Chairman of the Board

(781) 821-2440

or

Jay Leatherman, Chief Financial Officer

(203) 453-2126

website: http://www.avitarinc.com

email: corporate@avitarinc.com