EXHIBIT 99.3  Press release issued March 25, 1998



AVITAR, INC. TO BE QUOTED ON THE OTC BULLETIN BOARD


CANTON, Mass.--March 25, 1998--Avitar, Inc. (OTC Bulletin Board: AVIT) announced
today that the Company had been  notified  after the close of trading  yesterday
that its stock  would no longer be traded on The  Nasdaq  SmallCap  Market,  but
would instead be quoted on the NASD OTC Bulletin  Board.  in a letter,  the NASD
indicated that 15 current market makers will continue to trade Avitar's stock.

Peter P. Phildius,  Avitar's Chairman & CEO stated,  "The business  prospects of
the Company  continue to improve and  management is dedicated to increasing  the
long-term value to the Company's shareholders.  While we would have preferred to
remain on the Nasdaq SmallCap Market,  we believe that with the relatively large
number of  market-makers  in our  stock,  liquidity  for our  shareholders  will
continue to be  maintained.  As has been our practice,  we will continue to file
annual  and  quarterly  reports  with  the  SEC  and to  make  available  to our
shareholders information relating to the Company. We have established a web site
at  www.avitarinc.com  and will  become  more  active on the  internet to assure
dissemination of information to our shareholders."

Avitar, Inc. designs, develops, manufactures and markets healthcare products
and services including a proprietary line of polyurethane wound care dressings
and rapid diagnostic test products.

"Safe Harbor"  statement under the Private  Securities  Reform Act of 1995: This
release  contains  forward  looking  statements  that are  subject  to risks and
uncertainties,  as are detailed from time to time in the Company's fillings with
the Securities and Exchange Commission.

CONTACT: Avitar, Inc.
Peter Phildius, Chairman of the Board   781/821-2440
Jay Leatherman, Chief Financial Officer 781/821-2440