Bigmar, Inc. announces third quarter results.

COLUMBUS, Ohio--(BUSINESS WIRE)--Nov. 15, 1996--

Swiss Plant Certification Inspection Scheduled for Early January;

Orders Already Booked

Bigmar Promotes Key Executives At Swiss Subsidiaries

Bigmar, Inc. (Nasdaq SmallCap Market:BGMR) today reported unaudited financial results for the third quarter and nine month periods ended September 30, 1996. (See attached table.)

Net sales in the 1996 nine month period increased 63% from the same period in 1995 primarily due to the inclusion of Bioren, Inc. in the Company's sales for the full nine period of 1996 compared to just the third quarter in 1995. Net sales increased 5% in the third quarter of 1996 from the comparable period last year due to higher IV infusion product and oncology raw material sales, offset by a fluctuation of approximately 5% in the exchange rate between the U.S. dollar and Swiss franc.

Since its initial public offering in June 1996, Bigmar has moved forward aggressively on its strategy to develop and manufacture generic oncology products as well as certain biotechnology products. In the 1996 third quarter compared to the same period in 1995, the Company incurred significantly higher research and development and selling, general and administrative (SG&A) expenses related to its acceleration of activities toward commercialization of it scheduled oncology product line. These factors, coupled with lower gross margins in the third quarter of 1996 due to both pricing pressure in the IV solutions market and product mix, created a net loss for the 1996 third quarter. Overall gross margins are anticipated to improve once Bigmar adds new oncology products to its sales. Higher SG&A expenses in the nine month period of 1996 versus the same period in 1995 primarily reflects the inclusion of the operating expenses of Bioren for the full 1996 period, as noted above.

The Company also announced that its new manufacturing facility in Switzerland for the production of generic oncology pharmaceutical products is scheduled for inspection by the IKS, the Swiss counterpart to the U.S. Food & Drug Administration, in early January 1997. Manufacturing certification, if granted, is expected as soon as five days following the inspection. Such approval will allow Bigmar to commence selling targeted products to selected European markets and a number of other countries in the Eastern Hemisphere.

Peter P. Stoelzle, Executive Vice President of Bigmar, commented, "Following a positive preliminary review by the IKS in late October, we are optimistic that our facilities will be certified in the first quarter. We are very pleased to report that we have and continue to receive purchase orders for oncology products from pharmaceutical distributors in anticipation of the IKS approval of the manufacturing facility. We also have approval to distribute additional oncological products in Switzerland which we expect to commence by year-end."

Stoelzle added, "The FDA approval process will begin with our first production run at the new facility in January and the initial Abbreviated New Drug Application ("ANDA") submission in the first quarter of 1997."

"We are on track and on time to reach key milestones," said John Tramontana, President and CEO of Bigmar. "We expect to be ready for production at the new facility by the end of this year; we anticipate European manufacturing certification in early first quarter 1997; and we will begin our FDA approval process as predicted."

The Company also announced that in line with its heightened commercialization efforts, it has promoted key executives at its Swiss subsidiaries. Bernard Kramer has been named Chairman of the Board of Bioren SA and Bigmar Pharmaceuticals SA. He was formerly Vice President, Marketing. Federico Stroppolo, PhD, has been promoted to the position of Chief Operating Officer of Bigmar Pharmaceuticals SA from Technical Director. The Company expects these organizational changes to facilitate communication both internally and with regulatory agencies, thereby reducing the time to market for new products.

Forward-looking statements involve known and unknown risks, uncertainties and other factors as detailed in the Company's SEC reports and filings, which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied in such forward-looking statements.

BIGMAR, Inc.'s strategy is to supply world markets with a full line of high quality, affordably priced generic and proprietary oncology products. With distribution rights to more than 20 generic oncological products, the Company intends to manufacture in its state- of-the-art facilities in Switzerland, and market through pharmaceutical company partners in Europe and the United States, several generic oncological drugs within the next 24 months and additional oncological drugs as their patents expire. The Company currently manufactures and markets intravenous infusion solutions and markets oncological products in Europe. -0-

                    BIGMAR, INC. AND SUBSIDIARIES
             CONSOLIDATED CONDENSED STATEMENTS OF INCOME
                          (In U.S. Dollars)
                             (Unaudited)

                         Three Months Ended        Nine Months Ended
                            September 30,            September 30,
                         1996         1995(1)    1996        1995(1)

Net Sales          $  1,743,824  $ 1,654,071  $ 5,581,888 $ 3,431,020
Cost of Sales         1,377,342    1,142,176    3,740,535   2,552,886
Gross Profit            366,482      511,895    1,841,353     878,134
Operating
Expenses:
 Research and
 Development            583,402      118,308      769,087     118,308
Selling, General
  & Administrative      665,272      522,460    1,698,961     580,509
Total operating
 expenses             1,248,674      640,768    2,468,048     698,817
Operating
 Income/(Loss)         (882,192)    (128,873)    (626,695)    179,317
Interest Income
 (Expense)              (70,752)     (83,591)    (267,195)    (84,096)
Other Income
 (Expenses)                6,604        (318)       6,626        (318)
Income/(Loss)
 Before Taxes           (946,340)    (212,782)   (887,264)      94,903
Provision for
 Taxes                       392     (25,759)         583      36,059
Net Income/(Loss)     $ (946,732) $ (187,023)  $ (887,847)   $ 58,844
Earnings/(Loss)
 per share                $(0.24)     $(0.09)      $(0.30)      $0.06
Average number of
 common shares
 outstanding           3,985,000    2,143,231    2,988,333    987,587

                      BALANCE SHEET HIGHLIGHTS

                    September 30, 1996       December 31, 1995
                           (Unaudited)

Current Assets        $  9,008,501             $  4,349,212
Total Assets            25,608,043               15,493,126
Current Liabilities      3,515,133                3,144,751
Total Liabilities       13,523,945               11,581,722
Stockholders' Equity    12,084,098                3,911,404

(1) Prior to Company's public offering on June 26, 1996.

CONTACT: Bigmar, Inc. The Equity Group, Inc.

Gerald Sweeney, CFO  Tamara Ehlin [phone]

[phone] Tripp Whetsell [phone]

email: [e-mail]