Bigmar Reports Second Quarter Results; Sales Increase 8.3 Percent on Increased Volume in European Markets.

Business Editors & Health/Medical Writers

JOHNSTOWN, Ohio--(BW HealthWire)--Aug. 20, 2001

Bigmar, Inc. (OTCBB:BGMR) today reported results for the six-month period ending June 30, 2001.

For the six-month period, the company's net sales increased by 15.7 percent to $4.5 million, as compared to six-month sales of $3.9 million for the same period a year ago. For the quarter ending June 30, 2001, Bigmar reported increased revenue of $2.2 million, a 4.8 percent increase over the $2.1 million reported a year ago. On a local currency basis, sales increased by 8.3 percent for the quarter and 19.6 percent for the six month period. A stronger US dollar against the Swiss Franc adversely affected reported revenues during the second quarter of 2001 with an exchange rate of .572 as compared to .598 in 2000.

For the quarter, Bigmar reported a net loss of $1,497,370 or $.16 per share, compared to a net loss one year ago of $1,295,225 or $.14 per share. For the six-month period, the net loss was $2,973,684 as compared to $2,245,608 or $.29 per share compared to $.24 per share.

The company significantly increased its shareholder's equity to approximately $2.5 million, as compared to $442,932 reported December 31, 2000.

During the quarter, Bigmar achieved significant milestones including:

-- Signing a five-year marketing agreement with Baxter, SA in which Baxter has
the right to market I.V. solutions from Bioren, Bigmar's wholly owned
subsidiary, in Switzerland and Liechtenstein.

-- Receiving approval from the Intecantonal Office for the Control of
Medications (IKS-equivalent to the US FDA) to market a specialty injectable
preparation of Bupivacaine in Switzerland in three dosage strengths and two
different presentations. Five different products of Bupivacaine will be
marketed in "ready-to-use" infusion bags and five in glass vials. Bupivacaine
HC1 is a long-acting local anesthetic used for caudal, epidural or peripheral
nerve block. Although injectable Bupivacaine was approved by the US FDA in
1972, Bioren's easy-to-use pre-mix solution delivered in the I.V. infusion bag
is the first such formulation of the drug.

-- Receiving approval from Brazil's Agencia Nacional de Vigilancia Sanitaria
(ANVS) to market Methotrexate and Leucovorin Calcium in Brazil. In addition to
Brazil, the company also markets these products in the U.S., Germany, Spain and
Switzerland. Calcium Leucovorin is used as rescue therapy, while Methotrexate
is used in the treatment of Leukemia, Lymphoma and Breast Cancer.

-- Announced that production for clinical trials commenced under its supply
agreement with Novuspharma, an Italian biotechnology company specializing in
novel cancer therapies. Bigmar currently manufactures BBR 2778 for
non-Hodgkin's lymphoma and BBR 3464 for non small-cell lung cancer (U.S. and
Europe) and ovarian and gastric cancers (Europe) under its supply agreement
with Novuspharma. Novuspharma anticipates the commencement of U.S. Phase II
trials in pancreatic cancer patients in the near future.

-- Received approval from the Intercantonal Office for the Control of
Medications (IKS) to market Nitroglycerin in Switzerland. To the best of
management's knowledge, Bioren is the first company worldwide to market
Nitroglycerin in a ready-to-use infusion bag.

Bigmar anticipates product sales to continue to increase in 2001 compared to 2000 as a result of the continued growth of the company's product lines as well as from introductions of new products, which are currently awaiting regulatory approvals. The company expects several of these products to receive regulatory approval during the remainder of 2001. Furthermore, Bigmar anticipates higher volumes in sales at Bioren due to the marketing agreement with Baxter, in which there are prescribed minimum purchase requirements.

Bigmar has a five-year agreement with Indena S.p.A., a world leader in processing capacity of pharmaceutical extracts, that calls for Bigmar to be supplied by Indena with paclitaxel (or Taxol) necessary to product a generic formulation containing the anticancer ingredient. Indena also supplies its paclitaxel to Bristol Myers Squibb for its formulation of Taxol, the widely used and effective anti-cancer drug. Bigmar has applied for FDA approval in the United States in order to commence manufacture and distribution of its generic form of Taxol.

About Bigmar

Bigmar, Inc., founded in 1995, consists of three wholly owned subsidiaries: Bioren SA, Bigmar Pharmaceuticals SA and Bigmar Therapeutics. Through these subsidiaries the company manufactures generic pharmaceutical oncology products and intravenous infusion solutions, marketing these products in Europe, the United States and other countries primarily through pharmaceutical distributors. The company believes it is the only manufacturer of pre-mixed solutions such as nitroglycerin packaged in infusion bags. Bigmar recently signed a distribution agreement with Baxter SA granting Baxter the exclusive rights to market the company's standard intravenous solutions products throughout Switzerland and Liechtenstein for a minimum period of five years. The company commands approximately 60 percent of the market in Switzerland for its intravenous infusion solutions. Bigmar has manufacturing facilities in Switzerland and in Johnstown, Ohio, and executive offices in Saginaw, Michigan.

Statements in this press release that are not strictly historical may be "forward looking" statements, which involve risks and uncertainties. No assurance can be given that the company will successfully develop or commercialize its products, complete clinical trials, obtain regulatory approvals (or that any such approvals will be obtained on a timely basis) or be able to manufacture or successfully commercialize such products. Actual results may differ from those described in this press release due to risks and uncertainties that exist in the Company's operations, including, without limitation, the ability to obtain additional financing to continue operations when needed, a history of operating losses and accumulated deficits, the Company's reliance on collaborative relationships, and uncertainties related to clinical trials, the ability to obtain the appropriate regulatory approvals and market acceptance, as well as other risks detailed from time to time in public filings with the Securities and Exchange Commission, such as the Company's Annual Report on Form 10-KSB and its most recent Registration Statement on Form S-3. Actual results may differ materially from those currently anticipated as a result of such risks, and results for interim periods are not necessarily indicative of results to be expected for the full year. The Company undertakes no obligation to release publicly the results of any revision to these forward-looking statements to reflect events or circumstances arising after the date hereof. These statements are made pursuant to the Safe Harbor provisions of the Securities Litigation Act of 1995.