COMPANY CONTACT
Avittar, Inc.
Jay Leatherman
781-821-2440

jleatherman@avitarinc.com
www.avitarinc.com




                       AMEX ACCEPTS AVITAR'S COMPLIANCE PLAN

CANTON,  Mass. (March 23, 2004) - Avitar,  Inc. (AMEX: AVR) today announced that
the American Stock  Exchange  (AMEX) has accepted  Avitar's  business plan which
will enable Avitar to maintain its listing on the American  Stock  Exchange.  As
previously announced in the Company's first fiscal quarter 10-QSB filing, Avitar
had received  notification from the American Stock Exchange that the Company was
below certain of the Exchange's  continued listing standards as set forth in the
AMEX Company Guide. (Details of that notification are described in the Company's
December  31,  2003  10-QSB).  On March 17,  2004,  the AMEX  granted  Avitar an
extension  through July of 2005 with periodic reviews to assure that the Company
is  making  progress  consistent  with the plan.  Failure  to do so or to regain
compliance  by the end of the  extension  period could lead to the Company being
delisted from the American Stock Exchange.

Peter P. Phildius,  Chairman & CEO,  commented,  "We value our relationship with
the American  Stock  Exchange very much and  appreciate  the AMEX's  approach in
working with us to meet their on-going listing requirements. The Compliance Plan
that we submitted is consistent with our on-going business strategy and does not
require us to alter our operating or capital funding plan."

Avitar,  Inc.  develops,  manufactures  and markets  innovative and  proprietary
products  in the  oral  fluid  diagnostic  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.   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 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.