BIOQUAL Presents Financial Results for Fiscal Year 2005, Declares a Dividend, and Announces a Limited Share Buy Back Offer.

ROCKVILLE, Md. -- BIOQUAL, Inc. (Pinksheets:BIOQ):

2005                 2004
                                  -----------          -----------
Revenues and Sales                $18,534,118          $16,571,360

Income Before Income Tax          $ 1,286,439          $ 1,129,404

Net Income                        $   785,011          $   685,024

Basic Earnings per Share
 of Common Stock                  $      0.86          $      0.77

Diluted Earnings per Share
 of Common Stock                  $      0.85          $      0.75

Weighted Average
   Number of Shares Outstanding
   For Basic Earnings                 908,944              890,688

Weighted Average
   Number of Shares Outstanding
   For Diluted Earnings               926,421              910,357

BIOQUAL's Board of Directors has declared a dividend of $0.10 per share for shareholders of record on September 14, 2005, payable on September 21, 2005. This is the fifth dividend declared by BIOQUAL.

BIOQUAL also announced that it intends to offer to shareholders of record on September 14, 2005 with total holdings of 99 shares or fewer of BIOQUAL common stock, to repurchase their shares at a price, net to seller in cash, of $12.00 per share. BIOQUAL expects to send to each shareholder on or about September 28, 2005 an offer letter and transmittal form. The offer will remain in effect through November 30, 2005.

Statements herein that are not descriptions of historical facts are forward-looking and subject to risk and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors including risks relating to the ability to continue to extend its government contracts and obtain new contracts; uncertainties relating to clinical trials; dependence on third parties; and future capital needs.