AVITAR, INC. reports Fiscal 1999 Results.

January 14, 2000

CANTON, MA, January 14, 2000 – Avitar, Inc. (NASDBB:AVIT.OB) reported financial results for its fiscal year ended September 30, 1999.

Revenues for 1999 increased approximately 13% to $2,495,423 compared to $2,203,646 for the fiscal year ended September 30, 1998. Sales of drugs of abuse tests, including those from the company’s newly acquired subsidiary, United States Drug Testing Laboratories (USDTL), were responsible for the improvement.

Net loss for the fiscal year ended September 30, 1999 was $3,117,680, or $0.24 per share. In the previous fiscal year, the net loss from continuing operations was $1,894,124, or $0.12 per share. The results for fiscal 1999 reflect the impact of accelerated research and development expenses for the company’s ORALscreen ^TM products, launched in April 1999, and the investment in the sales and marketing effort to support these products and the services of USDTL.

"Fiscal 1999 was marked by two significant events," said Peter P. Phildius, chief executive officer and chairman of Avitar. "First, we launched ORALscreen, our first oral fluid-based product and a first of its kind in the substance abuse testing market. Then we began staffing our sales and marketing organization, which will allow us to enter the next fiscal year prepared to meet our ORALscreen sales expectations.

"We also made preparations to enter the $20-billion clinical diagnostics market with our oral fluid technology. To lead this effort, we recently appointed Dr. Chuck Plate as director of research & development who will work under the direction of Dr. Carl Good, the company’s vice president of research & development. Following the launch of ORALscreen, we acquired a portfolio of drug testing services, including a hair-based capability, with the acquisition of USDTL; this positions Avitar as the leader in new technologies for substance abuse testing. We look forward to our first full year of ORALscreen sales in fiscal 2000."

Avitar, Inc. (NASDBB: AVIT.OB), headquartered in Canton, Massachusetts, develops, manufactures and markets innovative medical devices based on core technologies in oral fluid diagnostics and customized polyurethane applications. The company markets a unique portfolio of substance abuse testing products and services that includes the first point-of-contact rapid oral fluids screening device for drugs of abuse. Avitar also markets an oral fluids collection system for DNA testing, as well as a proprietary line of polyurethane-based high tech medical devices. For more information, see Avitar’s Web site at avitarinc.com .

This release forward looking statements that are subject to risks and uncertainties, including the development of new applications, that are detailed from time to time in the Company’s filings with the Securities and Exchange Commission.