EXHIBIT 99.1


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



Avitar, Inc. Files Pro Forma Financials On Prior Sale of Laboratory Subsidiary

Audited 2003 Financial Statements Will Be Filed In Early January 2004

CANTON, MA, December 31, 2003 - Avitar, Inc. (AMEX:AVR)  announced today that it
has filed with the SEC unaudited pro forma financial  information related to the
sale of substantially all the assets of a subsidiary, United States Drug Testing
Laboratories,  Inc. ("USDTL").  As previously reported on December 16, 2003, the
assets of USDTL were sold for a total purchase price of $1 million,  $500,000 of
which was paid upon closing.

The pro forma  financial  information  prepared  by the  Company  is based  upon
assumptions deemed appropriate by it and unaudited Fiscal Year 2003 information.
The pro forma condensed  consolidated  financial  statements are not necessarily
indicative of the future  financial  position or results of operations or actual
results that would have  occurred had the  transaction  been in effect as of the
dates presented.  These unaudited  statements should be read in conjunction with
the Company's historical  financial  statements and related notes.  Furthermore,
the amounts as of September  30, 2003 and for the year then ended are  unaudited
and  therefore  are  subject  to further  adjustment  upon  finalization  of the
Company's  year-end audit. It is expected that audited financial  statements for
Fiscal Year 2003 will be filed with the SEC in early January 2004.

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.