EXHIBIT 99.2


[BIOCIRCUITS LETTERHEAD]

                                     Contact:  John Kaiser
                                               Chief Executive Officer
                                               Biocircuits Corporation
                                               408-752-8706


FOR IMMEDIATE RELEASE
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                       BIOCIRCUITS RECEIVES $5.1 MILLION
                      IN COMPLETION OF A PRIVATE PLACEMENT

Sunnyvale, CA, July 7, 1997 -- Biocircuits Corporation (Nasdaq: BIOC) today 
announced that the Company had received approximately $5.1 million upon the 
completion of a private placement consisting of a unit of one common share 
and a warrant to purchase one common share.

The financing follows the announcement of the signing of a non-binding letter 
of intent with Becton Dickinson to enter into a marketing and manufacturing 
agreement for the IOS-Registered Trademark- system and related cartridges. 
The Agreement would grant exclusive world wide marketing rights to Becton 
Dickinson and in addition would give them the right to assume the 
manufacturing of the IOS-Registered Trademark- instrument in 1998. 
Biocircuits will continue to develop and manufacture cartridges for transfer 
to Becton Dickinson.

Actual results may differ materially from the above forward-looking 
statements due to a number of important factors, and will be dependent upon 
the Company's ability, directly or through third parties, to successfully 
manufacture and market its existing and proposed products, as well as the 
timely development and regulatory approval of additional products. These 
factors are more fully discussed in the Company's most recent report on Form 
10-K. Further, since the letter of intent with Becton Dickinson is not 
legally binding, there can be no assurances that a final agreement will be 
negotiated and finalized.