Press Release                                               Source: Avitar, Inc.
Avitar Completes $520,000 Financing

CANTON,  Mass.,  Dec. 15 -- Avitar,  Inc. (OTC Bulletin Board:  AVTI - News) has
completed  a financing  with  accredited  investors  for the sale of $520,000 of
Secured Convertible Notes and 1.5 million seven-year warrants. The proceeds will
be used for the marketing and sale of the Company's  ORALscreen(R)  product, the
world's first non-invasive,  rapid, onsite oral fluid test for "drugs-of-abuse,"
as well as for general corporate development.


The  Secured  Convertible  Notes,  like the Notes  issued  pursuant to the $4.27
million  aggregate  financings  Avitar  secured  earlier in 2005 and 2006,  will
mature three years from the date of issuance  and bear  interest at 8%. They are
secured by the assets of the Company.  The Notes are convertible  into shares of
common stock of Avitar, at the option of the investors, at 65% of the average of
the three lowest  intraday  trading prices of the common stock, as quoted on the
OTC Bulletin Board for the 20 trading days preceding the date that the investors
elect to convert.  The  Company has the right to prepay the Notes under  certain
circumstances  at premiums  ranging from 20% to 35%,  depending on the timing of
such prepayment.


The Company is required to file a registration statement with the Securities and
Exchange  Commission  within 30 days after receipt of demand from the investors.
The exercise price of the Warrants is $0.15 per share.


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 135 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.


About Avitar, Inc.


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 http://www.avitarinc.com.


Forward-Looking Statements


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.