FOR MORE INFORMATION: Company Contact: Jeffrey Potrzebowski Chief Financial Officer & Vice President of Finance Phone: 765.497.8409 jpotrzebowski@BASinc.com Agency Contact: Neil Berkman Berkman Associates Phone: 310.477.

Third Quarter Net Income of $.03 Per Share

WEST LAFAYETTE, IN, August 14, 2014

- Bioanalytical Systems, Inc. (NASDAQ:BASI) today announced financial results for the third quarter and first nine

months of fiscal 2014.

"BASi's financial performance for

the first nine months of fiscal 2014 showed significant improvement over last year, as revenue increased 9.7% and net income before

the change in fair value of the warrant liability increased 88%. EBITDA for this fiscal year's first nine months was a solid 11.5%

of revenue versus 13.5% of revenue for the same period in fiscal 2013, reflecting the planned increase in our investments in selling

and R&D as well as a change in the mix of business. Also, cash flow from operations for the first nine months of fiscal 2014

remained strong at $1,215,000 versus $1,418,000 for the same period of fiscal 2013, while we reduced our line of credit borrowings

by $1,400,000 so far this year in addition to the $1,100,000 reduction in line of credit borrowings we achieved for the first nine

months of fiscal 2013," said President & Chief Executive Officer Jacqueline Lemke.

"These results clearly demonstrate

the benefits of our intense focus on three key areas: boosting operating efficiency, driving top line growth, and generating free

cash flow. We will continue to take decisive actions and make targeted investments to improve our financial performance. Expanding

our marketing efforts by building on BASi's inherent strengths and reputation for excellence, combined with our unrelenting effort

to accelerate best practices and drive continuous improvement, has positioned BASi for higher profitable growth in the future."

Highlights of the third quarter included:

Ms. Lemke concluded, "While we remain

focused on reducing our costs through productivity and place continued emphasis on generating free cash flow, we are also dedicated

to the strategies that drive our top-line growth. Our commitment to our customers, shareholders, and employees has never been stronger.

We are intensifying our efforts to improve our processes, embrace change, and wisely employ our stronger liquidity position. We

will continue to take actions to make BASi a stronger company. We see many opportunities for growth, and we are pursuing them with

Third Quarter Results

For the three months ended June 30, 2014,

revenue increased 7.7% to $6,032,000 compared to $5,600,000 for the third quarter of fiscal 2013. Net income for the three months

ended June 30, 2014 amounted to $215,000, or $0.02 per diluted share, compared to net income for the third quarter of fiscal 2013

of $576,000, or $0.07 per diluted share. Net income for this fiscal third quarter was affected by a non-cash decrease in the fair

value of the warrant liability of $66,000. Excluding this item, non-GAAP net income for the third quarter of fiscal 2014 was $149,000,

or $0.02 per diluted share. For the third quarter of fiscal 2013, net income included a non-cash decrease in the fair value of

the warrant liability of $318,000. Excluding this item, the non-GAAP net income for the third quarter of fiscal 2013 was $258,000,

or $0.03 per diluted share.

Service revenue for this fiscal third quarter

increased 14.4% to $4,754,000 compared to $4,156,000 for the same period of the prior fiscal year. This increase was primarily

due to higher toxicology revenue offset slightly by lower bioanalytical analysis revenue.

Product revenue decreased 11.5% for the

third quarter of fiscal 2014 to $1,278,000 compared to $1,444,000 for the third quarter of fiscal 2013.

Gross profit decreased to $1,984,000, or

32.9% of revenue, in the third quarter of fiscal 2014 compared to $2,032,000, or 36.3% of revenue, during the comparable period

last fiscal year, primarily reflecting the change in the mix of business between quarters.

Operating expenses for the third quarter

of fiscal 2014 increased to $1,728,000 compared to $1,594,000 during the third quarter fiscal 2013, primarily due to planned increases

in selling and R&D expenses. Operating income declined to $256,000 in the third quarter of fiscal 2014 compared to operating

income of $438,000 for the same period one year ago.

EBITDA for the third quarter of fiscal

2014 amounted to $672,000 compared to EBITDA for the third quarter of fiscal 2013 of $896,000.

For the first nine months of fiscal 2014,

revenue increased 9.7% to $18,164,000 compared to $16,560,000 for the first nine months of fiscal 2013. The Company reported a

net loss for the first nine months of fiscal 2014 of $666,000, or $0.08 per basic and diluted share, compared to reported net income

of $521,000, or $0.06 per diluted share, for the same period one year ago. The net loss for the first nine months of fiscal 2014

included an increase in the fair value of the warrant liability of $1,095,000. Excluding this charge, non-GAAP net income for the

first nine months of fiscal 2014 was $429,000, or $0.05 per basic and diluted share. Net income for the first nine months of fiscal

2013 included a decrease in the fair value of the warrant liability of $293,000. Excluding this item, non-GAAP net income was $228,000,

or $0.03 per diluted share.

Gross profit for the first nine months

of fiscal 2014 increased 19.3% to $6,141,000, or 33.8% of revenue, compared to $5,146,000, or 31.1% of revenue, for the same period

of the prior fiscal year. Operating income for the first nine months of fiscal 2014 increased 12.4% to $823,000 compared to $732,000

for the first nine months of fiscal 2013.

EBITDA for the first nine months of fiscal

2014 was $2,089,000 compared to EBITDA for the first nine months of fiscal 2013 of $2,238,000.

Earnings Conference Call

BASi 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 866.515.2912, passcode #12839680

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. EDT at this same Internet address. For a telephone replay, dial 888.286.8010,

passcode #57340872 after 2:00 p.m. EDT.

Non-GAAP to GAAP Reconciliation

This press release contains financial measures

that are not calculated in accordance with generally accepted accounting principles in the United States (GAAP). The non-GAAP financial

measures are net income and net income per basic and diluted share, excluding the income or expense of the change in the warrant

liability, and EBITDA, in each case for the third quarter and for the first three quarters of fiscal 2014 and 2013. EBITDA refers

to financial performance measures that exclude certain income statement line items, such as interest, taxes, depreciation, and

amortization. EBITDA may also exclude certain non-cash or one-time expenses, such as stock-based compensation and the income or

expense from the change in the warrant liability.

The non-GAAP 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, Inc.

BASi is 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.

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. BASi assumes no obligation to update

any forward-looking statement. Actual results may vary, and could differ materially, from those anticipated, estimated, projected

or expected in these forward-looking statements for a number of reasons, including, among others, the risk factors disclosed in

the Company's most recent filing with the Securities and Exchange Commission.

(SEE BELOW FOR CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS)