AVITAR ANNOUNCES AMEX DELISTING EFFECTIVE MONDAY AUGUST 29TH
             AVITAR INTENDS STOCK TO BE QUOTED FOR TRADING ON OTCBB

CANTON,  Mass.,  August 25  /PRNewswire-FirstCall/  -- Avitar, Inc. (Amex: AVR -
News)("Avitar"  or the "Company")  announced  today that it received notice from
the American  Stock  Exchange  ("AMEX" or the  "Exchange")  indicating  that the
common stock of Avitar will be delisted  from the Exchange  effective on Monday,
August 29th.  Accordingly,  the last trading day on AMEX for Avitar common stock
will be  Friday,  August  26th.  As  previously  announced,  the  delisting  was
determined  by the AMEX Staff and was based upon the  failure of the  Company to
achieve  compliance with the continued listing  standards of AMEX,  particularly
due to losses and the resulting deficit of shareholders' equity.

The Company will continue to file reports in accordance  with the regulations of
the  Securities  and Exchange  Commission.  The Company  intends that its common
stock will be quoted for trading on the OTC Bulletin  Board.  Until the stock is
quoted on the OTC Bulletin Board, it will be quoted on the Pink Sheets under the
symbol "AVR."

About Avitar Avitar,  Inc.  develops,  manufactures  and markets  innovative and
proprietary products. Their field includes the oral fluid diagnostic market, the
disease and clinical testing market,  and customized  polyurethane  applications
used in the wound dressing  industry.  Avitar  manufactures  ORALscreen(R),  the
world's first non-invasive, rapid, onsite oral fluid test for drugs-of-abuse, as
well as  HYDRASORB(R),  an  absorbent  topical  dressing  for  moderate to heavy
exudating wounds.  Avitar is also developing  diagnostic  strategies for disease
and clinical testing in the estimated $25 billion in-vitro  diagnostics  market.
Conditions  targeted  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 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:
Jay C. Leatherman
Avitar Inc.
Tel:  (718) 821-2440
jleatherman@avitarinc.com
www.avitarinc.com