Avitar Announces $1,250,000 Private Placement

CANTON,  Mass.,  Aug. 6  /PRNewswire-FirstCall/  --  Avitar,  Inc.  (Amex:  AVR)
announced  today  that it  raised  gross  proceeds  of  $1,250,000  in a private
placement of convertible preferred stock and warrants.  The securities issued in
the private placement were 1,250 shares of Series A Convertible  Preferred Stock
and Warrants to purchase  125,000  shares of Common  Stock.  The  $1,250,000  of
Preferred  Stock is  convertible  into  Common  Stock at the lesser of $0.09 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 $0.095 per
share.

Peter P. Phildius,  Chairman and CEO commented,  "This  financing is part of our
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(R) 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(R),  the world's first
non-invasive,  rapid, onsite oral fluid test for  drugs-of-abuse.  Additionally,
Avitar manufactures and markets HYDRASORB(R),  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 http://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.