Avitar Expects Third Quarter 2001 Revenues to Increase 50% Over Previous Quarter

-- Company says strong acceptance of ORALscreen(TM) rapid test under way --

June 28, 2001

CANTON, Mass., June 27 /PRNewswire/ -- Avitar, Inc. (Amex: - news) announced today that it expects revenues for the third quarter ending June 30, 2001 to increase approximately 50% to $1.8 million over the second quarter 2001 revenues of $1.2 million.

Peter P. Phildius, Avitar's Chairman and Chief Executive Officer, attributed the dramatic increase to the strong acceptance in this $1.5 billion marketplace of its ORALscreen(TM) rapid drug test, as well as HAIRscreen(TM), a laboratory-based hair test for detecting long-term drug abuse.

``The marketplace is now clearly beginning to accept our one-of-a-kind technology as the standard in the marketplace for cost-effective, efficient drug testing,'' said Phildius. ``Beyond the products themselves, the marketplace has been responding to our total-package 'value-net' services, where Avitar offers the complete management of a corporation's drug testing program, up to and including indemnification.''

Phildius added, ``We have added a significant number of new accounts during this quarter, including approximately 20 Fortune 500 companies. Additionally, our current customers, such as Pinkerton Services, Inc., have been impressed with our products and are purchasing additional test kits and services.''

Phildius closed, ``To further build upon this successful quarter and continue our momentum through upcoming quarters, we will continue with our strategy of new product introductions and strategic alliances to meet increased demand.''

Avitar expects to report full third-quarter financial results in mid- August, and will hold a conference call on the day of the announcement.

ABOUT AVITAR

Avitar, Inc. (AMEX: - news) headquartered in Canton, Massachusetts, develops, manufactures and markets innovative medical devices based on proprietary core technologies for two distinctive markets: oral fluid diagnostics and customized polyurethane applications used in the wound dressing industry. Oral fluid diagnostics includes both the drugs-of-abuse testing market estimated to be worth $1.5 billion encompassing the corporate workplace and criminal justice markets and the $20 billion clinical diagnostics market. Avitar's products include ORALscreen(TM), the world's first non-invasive, rapid, onsite oral fluid test for drugs-of-abuse, and HAIRscreen(TM), a laboratory based hair test for detecting long-term drug abuse. Additionally, the company manufactures and markets HYDRASORBT, an absorbent topical dressing for moderate to heavy exudating wounds. In 2001, the company formed a strategic partnership with Pinkerton.

For more information, see Avitar's website at avitarinc.com.

This release contains 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.