Avitar, Inc. Reports First Quarter Financial Results

Business Wire, Feb 12, 1999

CANTON, Mass.--(BUSINESS WIRE)--Feb. 12, 1999--Avitar, Inc. (NASD OTC Bulletin Board:AVIT) reported financial results for its first fiscal quarter, ended December 31, 1998.

Revenues for the quarter increased 12% to $484,000 compared to $432,000 for the quarter ended December 31, 1997. Increased sales of wound dressing products were primarily responsible for the increase in sales.

Net loss for the three months ended December 31, 1998 was $468,000, or $.03 per share. For the corresponding period last year, the Company reported a loss from continuing operations of $468,000, or $.03 per share. Administrative expenses in the prior year were reduced by a $58,000 non-recurring credit.

Peter Phildius, Avitar's Chairman and CEO, commented, "We continue to be pleased with sales of our wound care products and our improved operating results. During the last quarter, we also made considerable progress in the development of oral fluids testing technology. As previously announced, we have received from the U.S Patent Office a notice of allowance for a patent related to an oral fluids collection device and have applied for a series of additional patents."

Avitar, Inc. designs, develops, manufactures and markets healthcare products including a proprietary line of polyurethane wound care dressings and rapid diagnostic test products. The Company is focusing on the development of oral fluids technology for detecting drugs of abuse. For more information, see Avitar's Web Page at <www.avitarinc.com>.

This release contains forward looking statements that are subject to risks and uncertainties, including capital raising efforts and the development of new applications, that are detailed from time to time in the Company's filings with the Securities and Exchange Commission.

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                             AVITAR, INC.
                     SUMMARY OF FINANCIAL RESULTS
               (in thousands, except per share amounts)



                                                  Three Months Ended
                                                     December 31,
                                                1998             1997


Revenues                                        $484             $432

Operating Loss                                  (450)            (432)

Net Income (Loss)                               (468)             668

Net Income (Loss)
 Per Share                                     ($.03)            $.04

Net Loss From
 Continuing Operations                          (468)            (468)

Net Loss Per Share
 From Continuing Operations                    ($.03)           ($.03)

Weighted Average Number
 of Common and Common
 Equivalent Shares Outstanding            17,481,720       15,365,691