EXHIBIT 20.1

                 HEMAGEN COMPLETES ACQUISITION OF ANALYST(R)
                 -------------------------------------------

      WALTHAM, MA -- Hemagen Diagnostics, Inc. (NASDAQ: HMGN, HMGNW; BSE: HGN) 
is pleased to announce that on September 1, 1998, it completed the acquisition 
of the Analyst(R) automated chemistry system from Dade Behring, Inc. The
Analyst(R) system consists of a bench-top instrument ideal for physician's
offices, small clinical laboratories, and veterinary offices.  The system uses
a rotor-based technology that is currently capable of producing results of up
to 14 different clinical chemistry tests in under 10 minutes time.  Dr.
Franzblau, president of the company, stated, "The low cost of the instrument
and the rotors to the end users along with the outstanding reliability of the
system will give Hemagen a distinct advantage over competitive instruments."

      Dr. Franzblau did not disclose the specific terms of the transaction, 
however he did note that it was financed with debt that was provided by 
BankBoston, N.A.  Based on historical sales information, Dr. Franzblau said, 
"With the addition of the Analyst(R) business, Hemagen's sales should
increase by an annualized rate of approximately $6-7 million.  With
historical gross margins of almost 50%, this product line is expected to
positively supplement Hemagen's profitability, which has been consistent for 
the preceding two years.

      "The Analyst(R) business is a perfect fit into Hemagen's plans to
increase sales and profitability.  The company's San Diego operation,
RAICHEM(R) presently manufactures certain reagents for the Analyst(R) system.
We expect that many, if not all, can be manufactured by RAICHEM, thereby
reducing costs and increasing profits.  RAICHEM presently markets its products
in conjunction with instrument systems from other companies.  The acquisition
of the Analyst(R) system represents the first complete system that will be
marketed under the Hemagen(R) trade name. "

      "The technology upon which the Analyst(R) system is based was introduced
into the United States over ten years ago.  However, it was well ahead of its
time.  By comparison, one company located in California which has a similar
rotor-based technology has placed almost 500 instruments during the first two
calendar quarters of 1998.  These placements were primarily in the veterinary
market."

      The company plans to engage in an active development program to increase 
the product offerings available for the Analyst(R) system in both the human
and veterinary markets.  A rotor specific for the veterinary market could be
available before the end of the calendar year.

      Hemagen Diagnostics, Inc. develops, manufactures and markets more than 
110 FDA-cleared proprietary medical diagnostic test kits used to aid in the 
diagnosis of autoimmune and infectious diseases and to measure important 
constituents in human blood.  The company focuses on markets which offer 
significant growth opportunities.

      Except for any historical information contained herein, the matters 
discussed in this press release contain forward-looking statements that involve 
risks and uncertainties which are described in the company's Securities and 
Exchange Commission reports and filings.