Bio-Plexus Announces New Terms and Year-End Results.

VERNON, Conn.--(BW HealthWire)--April 14--Bio-Plexus, Inc. (NASDAQ:BPLX), designer, developer, manufacturer, and marketer of safety medical products under the PUNCTUR-GUARD(R) name, today announced that it has agreed to new terms in its existing agreements with Johnson & Johnson Medical, of Arlington, Texas (NYSE:JNJ), related to the joint development of a new safety catheter. Under the revised agreements, Johnson & Johnson Medical will take over full responsibility for manufacturing the new I.V. catheter, will pay Bio-Plexus an additional $3.5 million and $500,000 in milestone payments as the project progresses during 1998, and will increase the capital budget for equipment being constructed by Bio-Plexus. The companies also agreed to certain other changes, including a restructuring of future royalties from a set amount per unit to a percentage of net selling price.

"The new agreement reflects growing enthusiasm at both companies for the potential of this new product, and I am pleased with the changes," said Richard L. Higgins, Bio-Plexus president and chief executive officer. "We have reworked the entire relationship with Johnson & Johnson Medical in a way that should benefit both companies. Johnson & Johnson Medical will have the flexibility to consolidate manufacturing and reduce costs, and Bio-Plexus will receive a $4 million cash payment." Higgins added.

In announcing year-end results, the Company noted that revenues for the year ended 1997 increased by $2,229,000 to $5,042,000, from $2,743,000 the prior year. The Company incurred a net loss of $12,812,000 or $1.37 per share on 9.3 million average weighted shares of common stock compared with a net loss of $12,870,000 or $1.89 per share on 6.8 million shares for 1996. Although net losses were similar to the prior year, 1997 results included $3.8 million in non-cash expenses for equipment write-offs and various financing costs.

"Operating results for 1997 do not yet fully reflect the strong initiatives taken by the company to improve operations and reduce costs. This effort began in the fourth quarter, and the results will become more evident in subsequent reporting periods," Higgins stated.

"Aggressive cost cutting, the upcoming revenue from the I.V. catheter project, and the growing demand for safer needles should result in significantly improved financial performance for Bio-Plexus during the coming year," Higgins concluded.

The company holds U.S. and international patents on safety medical devices marketed under the PUNCTUR-GUARD name. These devices are designed to reduce the incidence of accidental needlesticks among healthcare workers. Accidental needlesticks number more than 950,000 per year in the United States and can result in the transmission of deadly diseases including HIV and hepatitis. -0-

NOTE: THIS PRESS RELEASE CONTAINS FORWARDOKING STATEMENT. BIO-PLEXUS, INC.

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                           BIO-PLEXUS, INC.
                                        1996
ASSETS
Current assets:
  Cash and cash equivalents   $1,502,000               $10                1,314,000
    Work-in-process ivable               152,000                  10      8,305,000

Deferred debt financing
 expenses                         73,000                  164,000
0
                             $11,688,000    unts payable
    and accrued expenses         619,000                1,693,000
   Accrued interest payable
    costs                        204,000                  195,000
   Deferred revenue              841,000                   20,000                   20,00vertible pr
eferred stock,
    no par value, 3,000,000        -                          -
    authorized, noes
   issued and outstanding     64,070,000                            $11,688,000

                  1997            1996
Cash Flows from Operating
 Activities
Net loss                                 $(12,812,000)   $(12,870,000)
Adjustments to reconcile net
 loss to cash used by operating
 activities:
   Depreciation and amortization            1,343,000       1,317,000
   Inducement expense on conversion           640,000
   Imputed dividend                           500,000
   Writedown of equipment to net
    realizable value                          512,000         550,000
   Loss on early extinguishment
    of debt
   Amortization of deferred
    debt
    financing expenses                        382,000          96,000
   Amortization of debt
    discount                                1,819,000         454,000
   Decrease (increase) in
    assets:
      Accounts receivable                      (9,000)       (248,000)
      Inventories                             258,000         773,000
   Increase(decrease) in
    liabilities:
      Accounts payable and
       accrued expenses                    (1,074,000)      1,008,000
      Accrued interest payable                 (1,000)         (2,000)
      Accrued vacation and other
       employee costs                         (10,000)         19,000
   Increase in deferred revenue               841,000
   Other                                      164,000        (345,000)
     Net cash used in operating
      activities                           (7,447,000)     (9,248,000)

Cash Flows from Investing Activities
Purchases and construction of
 fixed assets including
 acquisition of land                         (718,000)     (2,066,000)
Proceeds from sales of
 short-term investments
Cost of patents                              (108,000)        (29,000)
  Net cash used in investing
   activities                                (826,000)     (2,095,000)

Cash Flows from Financing Activities
Proceeds from sale of convertible
 preferred stock                            5,000,000
Proceeds from sale of common
 stock                                      2,493,000
Proceeds from exercise of common
 stock warrants                               282,000         345,000
Proceeds from exercise of common
 stock options                                 50,000         142,000
Proceeds from long-term debt                4,700,000
Net (decrease) increase in notes
 payable
Proceeds from sale and leaseback              369,000       2,228,000
Purchase of common stock
Repayments of long-term debt               (4,441,000)     (1,892,000)
  Net cash provided by
   financing activities                     8,453,000         823,000

  Net (decrease) increase in
   cash and cash equivalents                  180,000     (10,520,000)
  Cash and cash equivalents,
   beginning of period                      1,322,000      11,842,000
  Cash and cash equivalents,
   end of period                            1,502,000    $  1,322,000

Supplemental cash flow disclosures:
  Cash payments of interest              $  1,093,000    $  1,276,000
  Cash payments of income taxes                 9,000          15,000
  Surrender of debt upon warrant
   exercise                                 2,265,000       1,110,000
  Surrender of debt upon
   conversion to equity                     5,787,000


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                           BIO-PLEXUS, INC
                       STATEMENTS OF OPERATIONS

                                       For the Year Ended December 31,

                                             1997             1996

Revenue:
  Sales                                 $  3,542,000     $  2,743,000
  Licensing fees                           1,500,000             --
       Total revenue                       5,042,000        2,743,000

Costs and expenses:
  Research and development                 1,044,000        1,511,000
  Other operating an
   engineering costs                       6,024,000        5,656,000
  Selling, general and
   administrative                          6,500,000        6,949,000
    Total operating costs
     and expenses                         13,568,000       14,116,000

Financing expenses:
  CII debt:
    Interest expense                            --             28,000
    Amortization of deferred
     debt financing                          382,000           96,000
  Other financing expenses                 3,551,000        1,745,000
  Less: Interest income                     (147,000)        (372,000)
    Total financing expenses               3,786,000        1,497,000

Net loss before extraordinary
 items                                  $(12,312,000)    $(12,870,000)

Extraordinary item:
  Loss on extinguishment
  of debt, net of income
  taxes of nil                                  --               --

Net loss after extraordinary
 item                                   $ 12,312,000)    $(12,870,000)
Less: Imputed dividend on
 preferred stock                            (500,000)            --

Net loss applicable to common
 stock                                  $(12,812,000)    $(12,870,000)


Net loss (basic and diluted)
 per common share before
 extraordinary item                     $      (1.37)    $      (1.89)

Net loss (basic and diluted)
 per common share after
 extraordinary item

Weighted average common shares
  outstanding                              9,320,800        6,815,936

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CONTACT: Bio-Plexus, Inc.

Carol Coburn, 860/870-6112

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