Bigmar Announces 1998 Results.

COLUMBUS, Ohio--(BUSINESS WIRE)--April 1, 1999--

$2.7m Research & Development Budget in 1998 Results in FDA

Inspected Manufacturing Facility, 8 ANDA filings and 6 Product

Approvals Thus Far In 1999

Bigmar, Inc. (Nasdaq:BGMR/Boston Stock Exchange:BGM) today announced financial results for the year ended December 31, 1998 (see table below).

The Company reported net sales for 1998 of $6,377,822, compared to $6,483,444 for 1997. The decrease in net sales is primarily the result of lower sales of the Company's non-core products such as raw materials and prostate products. Bigmar's wholly owned subsidiary Bioren specializes in the production of a complete range of standard IV solutions. Sales of Bioren's IV Solutions increased 9.9% to $5,976,369, or 93.7% of total Company sales, compared to $5,438,902 in 1997, or 83.9% of total Company sales. The increase in Bioren's IV Solutions sales is attributed to increased acceptance in the Swiss hospital market, capturing approximately 50% of the market share.

John Tramontana, Chairman & CEO stated, "The vast majority of Bigmar's 1998 sales came from Bioren's IV Solutions, while oncology product sales accounted for a small percentage of the Company's total sales. Now that Bigmar has six FDA-approved oncology products already in 1999, we plan to focus on generating new sales of these oncology products, while continuing to garner revenues from Bioren's IV Solutions."

Gross margin as a percentage of sales was 24.5%, compared to 15.4% in 1997. This increase primarily resulted from increased production efficiencies.

The Company reported a net loss of $7,221,702 or $1.46 per share, compared to a net loss of $7,378,024 or $1.82 per share in 1997, which included a $2.1 million expense to reacquire marketing rights previously assigned under a collaborative agreement. This agreement was terminated in 1997. The narrower 1998 net loss is attributable to increased production efficiencies.

Mr. Tramontana added, "Our achievements thus far in 1999 were made possible by the groundwork that Bigmar laid in 1998, including spending approximately $2.7 million in research and development efforts. During the period, we concentrated on the FDA inspection of our manufacturing facility in Barbengo, Switzerland. As a result of our hard work and the resources devoted to this effort, we recently announced that the FDA completed inspection of this facility. Bigmar is now producing FDA approved products at this plant, and has the capacity to produce additional products as they are approved.

"Another significant milestone in 1998 was the signing of an exclusive distribution agreement with IVAX. With the recent FDA approval for fluorouracil injection, we now plan to exercise this distribution agreement with IVAX for U.S. distribution of the approved products. We look forward to 1999 with confidence."

BIGMAR, Inc.'s strategy is to supply world markets with a full line of high-quality, affordably-priced pharmaceutical products focusing on oncology. With distribution rights to more than 20 generic oncological products and six products approved by the FDA, the Company manufactures, in its state-of-the-art facilities in Switzerland, and market through pharmaceutical company partners in Europe and the United States off-patent generic oncological drugs and additional oncological drugs as their patents expire.

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. -0-

                     BIGMAR, INC. AND SUBSIDIARIES
                  CONSOLIDATED STATEMENTS OF OPERATIONS

                                      Year Ended December 31,
                                    1998                  1997

Net sales                   $     6,377,822      $      6,483,444
Costs of goods sold               4,812,290             5,485,648
                                  ---------             ---------
Gross margin                      1,565,532               997,796

Total operating expenses          7,119,651             7,540,680

Other income (expense), net      (1,667,583)             (835,140)
                            ----------------      ---------------

Net loss                    $    (7,221,702)      $    (7,378,024)
                             ===============       ===============

Basic loss per share        $         (1.46)      $         (1.82)
                             ===============       ===============

Weighted average shares
 outstanding                      4,944,895             4,052,945
                            ================      ================