COMPANY CONTACT:
     Avitar, Inc.
     Jay Leatherman
     781-821-2440
    jleatherman@avitarinc
     www.avitarinc.com




                    Avitar, Inc. Sells Laboratory Subsidiary

CANTON, MA, December 16, 2003 - Avitar, Inc. (AMEX:AVR)  announced today that it
has  completed  the sale of  substantially  all the assets of United States Drug
Testing  Laboratories,  Inc. ("USDTL") for a total purchase price of $1 million,
$500,000 of which was paid upon closing.  Payment of the balance of the purchase
price will be required when the Buyer  achieves  certain  revenue  targets.  The
Buyer  also  acquired  the name of USDTL  and has  entered  into a  Service  and
Consulting Agreement with Avitar. Sums earned by the Buyer under the Service and
Consulting  Agreement  will be  applied  toward  payment  of the  balance of the
purchase price.

"The sale of our USDTL  operation  will create  non-dilutive  capital for Avitar
while at the same time provide on an as-needed  basis,  out-sourced  services to
support our  drug-testing  business,"  Peter P. Phildius,  Chairman & CEO, said.
"This will  further  allow us to focus on our core  business of rapid oral fluid
diagnostics."

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.  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 www.avitarinc.com.

Safe Harbor Statement. This release contains forward looking statements that are
subject to risks and uncertainties including financing risks and 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.