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

FOR IMMEDIATE RELEASE
AVITAR REPORTS

Avitar Announces  $1,000,000  Private  Placement and Conversion of $1,250,000 of
Long-Term Debt

CANTON,  MA, May 27, 2004 -- Avitar,  Inc.  (AMEX:  AVR) announced today that it
raised  gross  proceeds of  $1,000,000  in a private  placement  of  convertible
preferred stock and warrants, and that it converted $1,250,000 of long-term debt
into convertible preferred stock.

The securities  issued in the private  placement and the conversion of debt were
2,316 shares of Series A  Convertible  Preferred  Stock and Warrants to purchase
100,000 shares of Common Stock. The $2,316,000 of Preferred Stock is convertible
into Common  Stock at the lesser of $0.12 per share or 85% of the average of the
three (3) lowest bid prices for the ten (10) trading days  immediately  prior to
the notice of conversion,  subject to adjustments and minimum  pricing,  and the
Warrants are exercisable at $0.126 per share.

Peter P. Phildius,  Chairman and CEO commented,  "This  financing is part of our
$10 million capital funding plan discussed in our most recent  quarterly  report
filed with the SEC. It, along with anticipated future  financings,  will provide
us with  necessary  working  capital  and allow us to  continue to invest in the
resources that we will need to enhance and expand our  ORALscreen  (TM) products
business."

This press release does not constitute an offer to sell or the  solicitation  of
an offer to buy any of the securities mentioned in this release. This release is
being issued  pursuant to and in accordance  with Rule 135c under the Securities
Act of 1933, as amended (the "Act").  The  securities  described in this release
have not been registered under the Act or any state securities laws, and may not
be  offered  or sold in the  United  States  absent  an  effective  registration
statement  covering  such  securities  or  an  applicable  exemption  from  such
registration requirement.


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