August 19, 2008

Bioanalytical Systems Inc. reports earnings from continuing operations

For continuing operations, revenue in the third quarter increased 5.4 percent to $11.4 million compared to $10.9 million for the quarter ended June 30, 2007. Net income from continuing operations for the third quarter was $407,000, or $0.08 per basic and diluted share, compared to net income of $567,000, or $0.12 and $0.11 per basic and diluted share, respectively, for the third quarter of fiscal 2007.

For the nine months ended June 30, 2008, revenue increased 7.2 percent to $32.3 million compared to $30.1 million for the nine months ended June 30, 2007. Net income from continuing operations for the nine months of fiscal 2008 was $1.4 million, or $0.29 per basic and diluted share, compared to net income from continuing operations of $1.4 million, or $0.28 per basic and diluted share for fiscal 2007.

The net loss from discontinued operations was $661,000, or $0.13 per basic and diluted share, in the quarter ended June 30, 2008 compared to a net loss of $118,000, or $0.03 and $0.02 per basic and diluted share, respectively, in the same period last year. This resulted in a net loss from all operations in the current quarter of $254,000, or $0.05 per basic and diluted share, compared to net income in the same quarter last year of $449,000, or $0.09 per basic and diluted share. For the nine months ended June 30, 2008, net loss was $406,000, or $0.08 per basic and diluted share, compared to net income of $1.1 million in the comparable period of the prior year, or $0.23 per basic and diluted share.

"With the strategic decision to sell our only Phase I clinic in June, we will be able to focus on continuing operations and to stress profitable operations," said Michael Cox, BASi chief financial officer. "While the current quarter had a slight decrease in net income from continuing operations compared to a very strong quarter in the same period last year, our nine month results showed a 38 percent increase in pretax income from continuing operations compared to last year. We also increased our cash flow from continuing operations for the nine-month period from $3.4 million to $4.1 million. We are very encouraged by these results from our continuing operations."

The company had previously announced the June 30, 2008 sale of its clinic in Baltimore Maryland and the resulting discontinuance of its Phase I clinical trials business.

About Bioanalytical Systems Inc.

BASi provides contract research services and monitoring instruments to the world's leading drug development companies and medical research organizations. The company focuses on developing innovative services and products that increase efficiency and reduce the cost of taking a new drug to market. Visit http://www.bioanalytical.com for more about BASi.

About Purdue Research Park

The 725-acre Purdue Research Park (http://www.purdueresearchpark.com) has the largest university-affiliated business incubation complex in the country. The park is home to more than 150 companies. About 100 of these firms are technology-related and another 39 are incubator businesses. The park was ranked No. 1 in 2004 for university-affiliated research parks and received the 2005 Outstanding Commercialization Award, both from the Association of University Research Parks. The park's companies also have received numerous recognitions, including a 2006 MIRA Award: Innovation of the Year for Purdue Research Park/Quadraspec Inc. and a 2005 CoreNet Global Innovators Award finalist. The Purdue Research Park is part of the Purdue Research Foundation, a private, nonprofit foundation created to assist Purdue University in the area of economic development. In addition to the Purdue Research Park in West Lafayette, the foundation has established or is currently constructing technology parks in other locations around Indiana including Merrillville, New Albany and Indianapolis.

This release contains forward-looking statements that are subject to risks and uncertainties including, but not limited to, risks and uncertainties related to the development, marketing and sales of products and services, changes in technology, industry standards and regulatory standards, and various market and operating risks detailed in the company’s filings with the Securities and Exchange Commission.

To the Purdue Research Park, http://www.purdueresearchpark.com

Source: Michael R. Cox, (765) 497-5829, mcox@bioanalytical.com