FOR MORE INFORMATION: Company Contact: Jacqueline Lemke President, CEO and CFO Phone: 765.497.5829 jlemke@BASinc.com Agency Contact: Neil Berkman Berkman Associates Phone: 310.477.3118 info@berkmanassociates.com BASi Rep

Profitable Third Quarter

LAFAYETTE, IN -- October 18, 2013 -- Bioanalytical Systems, Inc. (NASDAQ:BASI) today announced financial results for

the third quarter and first nine months of fiscal 2013.

in the Company's Amended Annual Report on Form 10-K/A for the fiscal year ended September 30, 2012 as well the Amended

Quarterly Reports on Forms 10-Q/A for the three months ended December 31, 2012 and March 31, 2013, respectively, the Company has

restated its previously issued financial statements for the fiscal years ended September 30, 2011 and September 30, 2012 and

the first two quarters of fiscal 2013 and its selected financial data for the relevant periods. Any comparisons to prior periods

reflect restated financial results for those periods. Accordingly, investors should no longer rely upon the Company's previously

released financial statements for these periods and any earnings releases or other communications relating to these periods.

to profitability in the third quarter, as higher gross margin and lower operating expenses generated an increase in operating income

to $438,000 compared to an operating loss of $540,000 last year, despite a decrease in revenue for the quarter. Net income improved

to $0.07 per diluted share for this year's third quarter compared to a net loss of $0.03 per share for the third quarter

of the prior year. For the nine months, operating income increased to $732,000 compared to an operating loss of $3,547,000 for

the prior year period, and net income increased to $0.06 per diluted share versus a net loss of $0.51 per diluted share last year.

is more, each of our critical operating metrics, including revenue, gross margin, operating income and cash flow, improved sequentially

in the third quarter compared to this year's second quarter. Cash increased and debt decreased during the third quarter

compared to the second, and cash provided by operations for the third quarter was $855,000," said President & CEO

and CFO Jacqueline Lemke.

believe these gains are sustainable, as our marketing initiatives focused on our established

strengths in specialty assay and drug discovery, regulatory excellence, and our market-changing Culex NxT

automated sampling system gain traction among current and new customers. On the product side, as previously announced, we are

collaborating with Pinnacle Technology to create a better way to monitor glucose and with Data Sciences International to add

value to our Culex system. On the services side, BASi has built a reputation for delivering the quality and timely data that

are a critical part of the drug development process. We believe our recent contract to provide IND-enabling safety and

toxicology studies for NanoViricides, Inc. and the preferred provider agreement with G1 Therapeutics we announced earlier

this week, provide a solid foundation for generating the long-term growth and profitability we are striving for," Lemke

Third Quarter Results

three months ended June 30, 2013, revenue decreased to $5,600,000 compared to $7,186,000 for the third quarter of fiscal 2012,

but increased sequentially compared to $5,156,000 for the second quarter of fiscal 2013. Gross profit was $2,032,000, or 36.3%

of revenue, compared to $2,059,000, or 28.7% of revenue, a year earlier. Operating income for the third quarter of fiscal 2013

was $438,000, compared to an operating loss of $540,000 for the same quarter last year, reflecting the higher gross margin and

a 19.3% reduction in operating expenses. Net income for the third quarter of fiscal 2013 was $576,000, or $0.08 per basic share

and $0.07 per diluted share, including a pre-tax decrease in the fair value of warrant liability of $318,000. This compares to

a net loss for the third quarter of fiscal 2012 of $246,000, or $0.03 per basic and diluted share, which included a pre-tax decrease

in the fair value of warrant liability of $458,000.

revenue for the third quarter of fiscal 2013 decreased 20.1% to $4,156,000 versus $5,200,000 for the same quarter of the prior

year, but increased sequentially compared to $3,667,000 for the second quarter of fiscal 2013. The fiscal 2013 service revenue

was negatively affected by the consolidation of BASi's Oregon laboratory into its West Lafayette facility in the second half of

revenue decreased 27.3% to $1,444,000 versus $1,986,000 last year, primarily due to lower sales of our Culex automated sampling

for the third quarter of fiscal 2013 was $896,000, an improvement of $180,000 compared to the EBITDAR of $716,000 for the third

quarter of fiscal 2012.

nine months ended June 30, 2013, revenue decreased 23.4% to $16,560,000, compared to $21,668,000 for the first nine months of fiscal

2012. A substantial portion of this decrease reflected the consolidation of BASi's Oregon laboratory into its West Lafayette facility

in the second half of fiscal 2012. Gross profit increased to $5,146,000, or 31.1% of revenue, compared to $4,684,000, or 21.6%

of revenue, for last year's first nine months. Operating income for the first nine months of fiscal 2013 increased to $732,000,

compared to an operating loss for the first nine months of fiscal 2012 of $3,547,000. Net income for this year's first nine months

of $521,000, or $0.07 per basic share and $0.06 per diluted share, included a pre-tax decrease in the fair value of warrant liability

of $293,000. This compares to a net loss for the first nine months of fiscal 2012 of $3,621,000, or $0.51 per basic and diluted

share, which included a pre-tax decrease in the fair value of warrant liability of $458,000.

for the first nine months of fiscal 2013 increased to $2,238,000, compared to an EBITDAR loss of $1,009,000 for the first nine

months of fiscal 2012. Cash provided by operations for this year's first nine months was $1,343,000, versus cash used in operations

of $437,000 last year.

Balance Sheet Highlights

30, 2013, BASi reported cash and cash equivalents of $313,000, total long-term obligations of $540,000, and shareholders' equity

of $9,211,000. Current liabilities at June 30, 2013 included mortgage debt of $5,403,000 that matures in October 2013. The Company

continues to explore ways to deal with this debt, including a sale leaseback transaction on its building in West Lafayette. At

September 30, 2012, cash and cash equivalents were $721,000, total long-term obligations were $5,998,000, and shareholders' equity

Earnings Conference Call

has scheduled a conference call at 11:00 a.m. EDT this morning to discuss its results for the quarter. To participate in the call,

dial 877.474.9502, passcode #70599127 at least five minutes before the start of the call. A simultaneous webcast may be accessed

from the Investors tab at www.BASInc.com. The webcast will be available for replay

after 2:00 p.m. EST at this same Internet address. For a telephone replay, dial 888.286.8010, passcode #96932141 after 1:00 p.m.

Non-GAAP to GAAP Reconciliation

release contains financial measures that are not calculated in accordance with accounting principles generally accepted in the

United States (GAAP). The non-GAAP financial measures are EBITDAR for the third quarters and first nine months of fiscal 2013 and

2012. EBITDAR refers to financial performance measures that exclude certain income statement line items, such as interest, taxes,

depreciation, and amortization and/or exclude certain non-cash or one-time expenses as permitted by our credit agreements, such

as stock-based compensation, restructuring charges and the income or expense from the change in the warrant liability.

financial information should be considered supplemental to, and not as a substitute for, or superior to, financial measures calculated

in accordance with GAAP. Management, however, believes that these non-GAAP financial measures, when used in conjunction with the

results presented in accordance with GAAP, may provide a more complete understanding of the Company's results and may facilitate

a fuller analysis of the Company's results, particularly in evaluating performance from one period to another. Management has chosen

to provide this supplemental information to investors, analysts, and other interested parties to enable them to perform additional

analyses of results and to illustrate the results giving effect to the non-GAAP adjustments shown in the reconciliation. Management

strongly encourages investors to review the Company's consolidated financial statements and publicly filed reports in their entirety

and cautions investors that the non-GAAP measures used by the Company may differ from similar measures used by other companies,

even when similar terms are used to identify such measures.

About Bioanalytical Systems,

a pharmaceutical development company providing 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 www.BASinc.com for more about BASi.

This release contains forward-looking

statements that are subject to risks and uncertainties including, but not limited to, risks and uncertainties related to changes

in the market and demand for our products and services, 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.

[SEE BELOW FOR CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS]

BIOANALYTICAL SYSTEMS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(In thousands, except per share amounts) (Unaudited)

BIOANALYTICAL SYSTEMS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share amounts)

BIOANALYTICAL SYSTEMS, INC.

RECONCILIATION OF GAAP TO NONGAAP EARNINGS

(In thousands)(Unaudited)