Press Release   Source: Avitar, Inc.

Avitar Announces $1,285,000 Private Placement
Tuesday December 14, 8:00 am ET

CANTON, Mass., Dec. 14 /PRNewswire-FirstCall/ -- Avitar, Inc. (Amex: AVR - News)
announced  today  that it  raised  gross  proceeds  of  $1,285,000  in a private
placement of convertible preferred stock and warrants.

The  securities  issued in the private  placement  were 1,285 shares of Series A
Convertible  Preferred  Stock and Warrants to purchase  600,000 shares of Common
Stock. The $1,285,000 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
capital funding plan which we have previously  announced.  It, along with future
financings,  will provide the working  capital  necessary to execute our plan to
expand our ORALscreen(R)  products  business,  including the recently  announced
launch of our second generation, ORALscreen DRUGOMETER(TM) product."

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

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