FOR MORE INFORMATION: Company Contact: Beth A. Taylor Chief Financial Officer Phone: 765.497.8381 btaylor@inotivco.com BASi Releases Earnings for Second Quarter of Fiscal 2020

BASi Releases Earnings for

Second Quarter of Fiscal 2020

WEST LAFAYETTE, IN, May

14, 2020 -- Bioanalytical Systems, Inc. (NASDAQ:BASI) ("BASi", the "Company", "We" or "Our"),

doing business as Inotiv, a leading provider of nonclinical and analytical contract research services, today announced financial

results for the three months ended March 31, 2020.

During the second quarter of fiscal 2020,

BASi saw significant growth compared to the second quarter of fiscal 2019. Growth initiatives including acquisitions of the Gaithersburg,

Maryland, operations of Smithers Avanza in May 2019 and Pre-Clinical Research Services, Inc's. ("PCRS") business

in Ft. Collins, Colorado, in December 2019, as well as expansion of the Evansville facility and investment in the St. Louis facility,

contributed to the increase in service revenue and gross margins. Over the last six months, we have improved our infrastructure

and platform to support future growth and additional potential aquisitions. We believe these internal infrastucture intiatives,

investments, aquisitions and recruiting efforts, combined with our existing team and the continuing development of our sales and

marketing team, have led and will continue to lead to growth in revenue and the ability to improve the service offerings to our

clients. We further believe that the actions and investments since July 2018 form a foundation upon which we can build.

Robert Leasure, Jr., BASi's President and

Chief Executive Officer commented, "Our financial results for the first six months of fiscal 2020 were positively impacted

by increases in sales and margins from the internal growth the Company has been experiencing in the Service business and acquisitions.

We saw an increase in overhead and corporate expenses related to our acquisitions in May 2019 and December 2019 and expenses associated

with enhancements to support internal growth and our infrastructure development. During the COVID-19 pandemic, we have continued

our operations to support our clients in their efforts toward drug discovery and development, including working with multiple clients,

at our multiple sites, on a variety of therapy or vaccine candidates for COVID-19."

"We plan to continue working on the

integration of our combined businesses and added services. We plan to further develop our infrastructure, project management, sales,

marketing, client services and branding. We will continue to evaluate additional internal and external growth opportunities and

new services to provide to existing clients." Mr. Leasure concluded.

Second Quarter Results

For the quarter, revenue amounted

to $16,012,000, a 71.4% increase from $9,344,000 in the second quarter of fiscal 2019. Revenue growth was driven by incremental

sales associated with organic growth of the service business, as well as sales attributable to the Smithers Avanza and PCRS acquisitions.

Net loss for the second quarter

of fiscal 2020 amounted to $588,000, or $0.05 per diluted share, compared to a net loss of $569,000, or $0.06 per diluted share

for the second quarter of fiscal 2019.

Net loss and earnings per share were impacted

by increased costs associated with Smithers Avanza and PCRS operations and non-recurring expenses of over $300,000 relating to

recruiting costs for leadership and scientific staff additions and consulting fees related to the adoption of two accounting standards,

and other one-time costs for rebranding to Inotiv, new website launch and acquisition and integration expense. We do not expect

the non-recurring expenses to continue or materially impact future fiscal quarters.

Adjusted EBITDA for the second

quarter of fiscal 2020 amounted to $1,109,000, compared to Adjusted EBITDA for the second quarter of fiscal 2019 of $267,000.

Adjusted EBITDA for the six months ended March 31, 2020, amounted to $1,588,000 compared to Adjusted EBITDA for the six months

ended March 31, 2019, of $703,000.

Second Quarter Segment Results

Service revenue for the second quarter

of fiscal 2020 increased 86.8% to $15,191,000 compared to $8,131,000 for the same period in fiscal 2019, including $3,154,000 or

38% from growth within existing sites and additional revenues attributable to the Smithers Avanza acquisition and the PCRS acquisition

of $2,357,000 and $1,549,000, respectively. Nonclinical services revenues increased $6,467,000 in the three months ended March

31, 2020, compared to the same fiscal quarter last year. Bioanalytical analysis revenues increased by $504,000 in the three months

ended March 31, 2020, compared to the same fiscal quarter last year.

Cost of Service revenue as a percentage

of Service revenue decreased to 67.2% during the three months ended March 31, 2020, from 73.2% in the three months ended March

31, 2019, due to an increase in sales for higher margin services and additional revenue to cover fixed costs.

Sales in our Products segment decreased

32.2% in the three months ended March 31, 2020, to $821,000 from $1,213,000 in the three months ended March 31, 2019. The decrease

stems from lower sales of Culex in-vivo sampling systems and Culex related maintenance and services revenues, which decrease was

partially offset by an increase in sales for analytical instruments. The decrease is primarily due to a reduction of orders from

universities as they closed and reduced purchasing due to the Coronavirus (COVID-19) pandemic and our inability to go on site to

install and service client instruments.

Cost of Products revenue as a percentage

of Products revenue in the three months ended March 31, 2020, increased to 74.6% from 68.2% in the three months ended March 31,

2019, due to reduced revenue to cover fixed costs.

First Six Months' Results

For the first six months of fiscal 2020,

revenue amounted to $28,930,000, a 61.0% increase from $17,969,000 for the first six months of fiscal 2019. Revenue growth was

mainly driven by $3,979,000 from internal growth from existing operations and attributable to the acquisitions of Smithers Avanza

and PCRS of $5,052,000 and $1,930,000, respectively.

Net loss for the first six months of fiscal

2020 amounts to $2,014,000, or $0.19 per diluted share, compared to the net loss of $65,000, or $0.06 per diluted share for the

first six months of fiscal 2019.

Net loss and earnings per share were impacted

by increased costs associated with the acquisitions of Smithers Avanza and PCRS and expenses associated with enhancements to support

future growth and infrastructure development. Included in the increased costs were non-recurring expenses of over $1,000,000 relating

to recruiting costs for leadership and scientific staff additions, consulting fees related to the adoption of two accounting standards,

and other one-time costs for rebranding to Inotiv, our new website launch and acquisition and integration expense.

Adjusted EBITDA for the first six months

of fiscal 2020 were $1,588,000 compared to $703,000 for the first six months of fiscal 2019.

First Six Months' Segment Results

For the first six months of fiscal 2020,

our Service revenue increased 72.3% to $27,333,000 compared to $15,866,000 for the first six months of fiscal 2019. Nonclinical

services revenues increased due to an overall increase in the number of studies from the prior year and additional revenue attributable

to the Smithers Avanza acquisition and the PCRS acquisition during the first half of fiscal 2020.

Cost of Service revenue as a percentage

of Service revenue decreased to 69.9% during the first six months of fiscal 2020 from 72.8% in the first six months of fiscal 2019

due to improved margins from increasing sales with improved margins after covering fixed cost.

Sales in our Product segment decreased

24.0% in the first six months of fiscal 2020 to $1,597,000 from $2,103,000 when compared to the first six months of fiscal 2019.

The decrease stems primarily from decreased sales of our Culex automated in vivo sampling instruments and Other instruments,

partly offset by increased sales of our Analytical instruments in the first six months of fiscal 2020. The decrease is primarily

due to a reduction of orders from universites as they closed and reduced purchasing due to the Coronavirus (COVID-19) pandemic

and our inability to go on site to install and service client instruments.

Cost of Product revenue as a percentage

of Product revenue in the first six months of fiscal 2020 increased to 71.5% from 68.5% in the six months of fiscal 2019. This

increase in the first six months of fiscal 2020 is mainly due to the increase in material cost and adjustment of selling price

for in vivo products to stay competitive with the market and some change in product mix.

Cash Provided by Operating Activities

Cash provided by operating activities was

$213,000 for the six months ended March 31, 2020, compared to $911,000 for the six month ended March 31, 2019.

As of March 31, 2020, the Company had $198,000

in cash and cash equivalents, a $2,614,000 balance on its general line of credit, a $4,247,000 balance on its construction line