Hydrasorb Goes Worldwide with Distribution Agreement Between Avitar and The Kendall Company

August 21, 2000

CANTON, MA and MANSFIELD, MA, August 21, 2000 – Avitar, Inc. (AMEX: AVR) announced today that only six months after initiating a domestic distribution agreement with The Kendall Company for its Hydrasorb™ polyurethane foam wound dressing product line, the companies have amended their contract to include worldwide distribution. Provisions have been made to supply Avitar’s wound dressing products to The Kendall Company’s international distribution network to acute care hospitals as well as subacute, long-term and other health care facilities. Hydrasorb uses Avitar’s proprietary polyurethane technology in the form of a highly absorbent topical dressing for moderate to heavy exudating wounds. The unique construction of these wound dressings promotes skin growth and closure by providing a moist wound-healing environment. "The Kendall Company is delighted to see Hydrasorb so widely accepted," said Kevin Gould, President of The Kendall Company. "We have exceeded our initial expectations and look forward to expanding its availability to our international customers," Gould added.

"Over the past six months, Avitar has found The Kendall Company to be an outstanding partner. This amended agreement now allows us to enter the world market and broaden and deepen the accessibility of our specialty wound dressing products," said Peter Phildius, Chairman and Chief Executive Officer of Avitar.

The Kendall Company, headquartered in Mansfield, Massachusetts, manufactures and markets a broad range of wound care needles and syringes, electrodes, specialized paper, vascular therapy, urological care, incontinence care, and nursing care products. Kendall is part of Tyco Healthcare, which is one of the major business units of Tyco International Ltd. (NYSE: TYC; LSE: TYI; BSX: TYC). For more information, see Kendall’s website at www.kendallhq.com.

Avitar, Inc. (AMEX:AVR) 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 include ORALscreen^TM, the world’s first rapid point-of-contact oral fluid test for drugs of abuse, HAIRscreen^TM, a laboratory-based test for long term drug abuse using hair, and several other specialized tests for drugs of abuse. Avitar also markets an oral fluid collection system for DNA testing as well as a proprietary line of polyurethane-based high tech medical devices. For more information, see Avitar’s website at avitarinc.com.

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