Number of new clients in June 2004 represents 40% of year-to-date total
CANTON, Mass., July 20 /PRNewswire-FirstCall/ -- Avitar, Inc. (Amex: AVR) announced today that in June 2004, the Company's new account acquisition rate went up significantly, representing 40% of all new clients year-to-date. The growth is driven by two factors: the continued improvement in the U.S. economy; and the growing acceptance of Avitar's premier product, ORALscreen(TM), an oral-based on site test for detecting drugs-of-abuse in the workplace.

The demand for the Avitar's ORALscreen rapid oral-based test for drugs of abuse comes largely from workplace segments, with growing interest from the educational sector. While specific names of the organizations cannot be released at this time, the new accounts include: food services, high schools, service marts, health services, automobile services, financial institutions, and non-profit social services organizations.

"The market appears to be recognizing the strategic value provided by oral-based testing for drugs-of-abuse, a process being aided by the Company's recent additions to its senior sales and marketing management," explained Pete Phildius, Chairman & CEO of Avitar. "Studies have shown that on-site oral- fluid testing for drugs-of-abuse has proven to be effective in reducing the use of illicit drugs in the workplace. Corporations are beginning to recognize that oral-based on site testing delivers an acceptable and effective solution to $110 billion annual cost to the U.S. economy directly attributable to drugs-of-abuse. The impact on revenue for these new accounts is difficult to determine at this time but we are encouraged by this increased activity."

ABOUT AVITAR

Avitar, Inc. develops, manufactures and markets innovative and proprietary products in the oral fluid diagnostic 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(TM), the world's first non-invasive, rapid, onsite oral fluid test for drugs-of-abuse. Additionally, Avitar manufactures and markets HYDRASORB(TM), an absorbent topical dressing for moderate to heavy exudating wounds. For more information, see Avitar's website at http://www.avitarinc.com.