CANTON, Mass., Oct. 22 /PRNewswire-FirstCall/-- Avitar, Inc. (Amex: - ) today announced receipt of a Federal Supply Schedule contract from the U.S. General Services Administration (GSA), allowing the Company to sell its ORALscreen(TM) and HAIRscreen(TM) drugs-of-abuse testing products to Federal Government customers through a pre-approved list in the United States. Inclusion on the GSA list enables the Company to provide preferred pricing on its products, thus avoiding potential price fluctuations and the delays inherent in the competitive bidding process. In addition, as part of the contract, GSA will co-market the products to all government agencies and federally funded contractors.

"We are very pleased that ORALscreen and HAIRscreen have been included on the GSA list and we hope to have our ORALscreen OSR(TM) added in the near future," commented Peter P. Phildius, Avitar's Chairman and Chief Executive Officer. "We are proud that ORALscreen is the first and only rapid, saliva- based drugs-of-abuse test to be listed by the GSA, providing us with great exposure to a large, untapped market for this type of test. We are currently in discussions with several government agencies, including certain groups within the U.S. Navy, and being listed as a Federal Supply Schedule contractor should help to close sales more rapidly."

About ORALscreen and HAIRscreen

The Company's ORALscreen line represents the most comprehensive, state-of- the-art product portfolio for rapid substance abuse testing available on the market today. ORALscreen is a highly sensitive, simple-to-use, reliable and disposable drug test that within minutes detects the presence of specific illegal substances, including marijuana, cocaine, opiates, methamphetamine and MDMA, also known as Ecstasy. The advantage of oral testing is that it may be performed in public and eliminates the embarrassment and chain-of-custody issues present with urine testing. ORALscreen cannot be adulterated in any way, and there are no substances that may be ingested that would result in a false negative result. Using a few strands of hair, the Company's HAIRscreen test can detect a history of drugs-of-abuse use over a 90-day period. Like ORALscreen, HAIRscreen cannot be adulterated to produce a false negative.

About Avitar

Avitar, Inc. develops, manufactures and markets innovative and proprietary products in the oral fluid diagnostic market, disease and clinical testing market, and customized polyurethane applications used in the wound dressing industry. Oral fluid diagnostics includes the estimated $1.5 billion drugs-of- abuse testing market, which encompasses the corporate workplace and criminal justice markets. 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, Avitar manufactures and markets HYDRASORB(TM), an absorbent topical dressing for moderate to heavy exudating wounds. In the estimated $25 billion in vitro diagnostics market, Avitar is developing diagnostic strategies for disease and clinical testing. Some examples include influenza, diabetes and pregnancy. For more information, see Avitar's website at avitarinc.com.

Safe Harbor Statement. 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. In view of such risks and uncertainties, the Company's actual results could differ materially from those anticipated in such forward looking statements.

Jay Leatherman Chief Financial Officer Avitar Inc.

Kim Golodetz Vice President Lippert/Heilshorn and Associates