Avitar Announces First Quarter Results; Sales Up 63%.

CANTON, Mass.--(BUSINESS WIRE)--Feb. 2, 1998--Avitar, Inc. (Nasdaq SmallCap Market:AVIT (Common Stock)); today announced financial results for its first quarter ended December 31, 1997.

Sales for the three months ended December 31, 1997 were $432,214 compared to $265,941 in the first quarter last year, representing approximately a 63% increase for the first quarter of fiscal 1998. This improvement was primarily the result of increased sales of wound dressing products, particularly sales to the ConvaTec Division of Bristol Meyers Squibb.

Net income for the three months ended December 31, 1997, including income from the discontinued operations of MHB, was $667,779, or $.04 per share. This compares to a net loss, including discontinued operations of MHB, of $786,039, or $.10 per share for the corresponding period of the prior year. Results for the quarter ended December 31, 1997 included income of $1,208,084 from the sale of MHB.

Peter Phildius, Avitar's Chairman and CEO, commented, "As expected, fiscal 1998 has begun on a favorable course with sales of our wound dressing products increasing significantly. In fact, sales for the first quarter of fiscal 1998 were 75% higher than sales for the prior quarter which ended September 30, 1997. Also during the first quarter of fiscal 1998, our Company has been able to concentrate on creating new products for the medical, dental and diagnostic markets by developing new technologies and expanding the use of our foam-based platform technology. We believe that the expected increase in sales from our wound dressing products, combined with anticipated sales from new products that we plan to introduce in fiscal 1998, will provide our Company with the opportunity for continued growth during the remainder of fiscal 1998 and beyond."

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.

(See Accompanying Table) -0-

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


                                            For The Quarter Ended
                                                 December 31

                                               1997        1996

Sales                                          $432        $266

Operating (Loss)                               (432)       (806)

(Loss) from Continued Operations               (468)       (830)

Income from Discontinued Operations           1,136          44

Net Income (Loss)                              $668       $(786)

Income (Loss) Per Share:
    Continuing Operations                     $(.03)      $(.11)
    Discontinued Operations                     .07         .01
    Net Income (Loss) Per Share                $.04       $(.10)

Weighted Average Number of Common and
 Common Equivalent Shares Outstanding    15,365,691   7,527,886

CONTACT: Avitar, Inc.

Peter Phildius, Chairman of the Board

[phone]

or

Jay Leatherman, Chief Financial Officer

[phone]