FOR MORE INFORMATION: Company Contact: Jeffrey Potrzebowski Chief Financial Officer & Vice President of Finance Phone: 765.497.8409 jpotrzebowski@BASinc.com BASi Reports First Quarter Results

BASi Reports First Quarter

WEST LAFAYETTE, IN, February

12, 2015 -- Bioanalytical Systems, Inc. (NASDAQ:BASI) today announced financial results for the first quarter of fiscal

"In the first quarter of

the new fiscal year, we delivered an 11.0% increase in Products revenue which was offset by a 10.5% decrease in Service revenue,

resulting in a total revenue decrease of 6.0% as compared to the first quarter of fiscal 2014. We believe this revenue decline

is temporary and we are intensifying our efforts to improve our processes, embrace change, and wisely employ our stronger liquidity

position. We continue to drive our ability to deliver top line growth with steps to strengthen our management team in vital roles

as evidenced by the recent appointment of a Principal Investigator in our Discovery Lab and the addition of an Attending Veterinarian

for our Preclinical Services business," said Bioanalytical Systems, Inc.'s ("BASi" or the "Company")

President and Chief Executive Officer Jacqueline Lemke.

Lemke added, "On January 28, 2015, we secured an opportunity to monetize underutilized

space and generate additional cash for the business by executing an agreement to lease Cook Biotech, Inc. approximately 51,000

square feet of unused office and warehouse space as well as current BASi manufacturing space. The initial term of the lease runs

for roughly ten years with tenant options to extend the initial term for two additional five-year terms. We will take this opportunity

to modernize our manufacturing capabilities as we relocate and renovate to our occupied space. With this lease, we increase cash

flow and we do not anticipate any material impact on the Company's ability to continue to deliver both quality services and

Ms. Lemke concluded, "As

we continue to serve the clients who know us, we are expanding our marketing efforts to reach out and communicate to those who

are not familiar with us. The Company's inherent strengths in specialty assay and drug discovery and our BASi Culex

automated sampling system need to be shared. Innovation, flexibility, and customization are the BASi way, and we need to capitalize

on our strengths. We believe that the many changes we have made and the initiatives we continue to implement will enhance our ability

to accelerate revenue, earnings and free cash flow growth over the longer term."

First Quarter Results

For the three months ended December

31, 2014, revenues decreased 6.0% to $5,845,000 compared to $6,220,000 in the first quarter of fiscal 2014.

Service revenue for the first

quarter of fiscal 2015 decreased 10.5% to $4,398,000 compared to $4,916,000 for the same period of the prior fiscal year. This

decrease was primarily due to lower Bioanalytical and Other Laboratory services revenue, reflecting client study delays which are

believed to be temporary, partially offset by an increase in the volume of Preclinical services studies.

revenue for the first quarter of fiscal 2015 amounted to $1,447,000, an increase of 11.0% compared to revenue of $1,304,000 for

the first quarter of fiscal 2014. The improvement was due primarily to higher sales of the Culex in vivo

Gross profit decreased to $1,904,000,

or 32.6% of revenue, in the first quarter of fiscal 2015 compared to $2,145,000, or 34.5% of revenue, during the comparable period

last fiscal year. The decline reflects the impact of lower revenue and lower fixed cost coverage.

Operating expenses for the first

quarter of fiscal 2015 increased to $1,762,000 compared to $1,683,000 during the first quarter of fiscal 2014, primarily due to

planned increases in business development costs that will be vital to helping drive our top line performance going forward, and

increased general and administrative expenses.

Operating income for the first

quarter of fiscal 2015 amounted to $142,000 compared to operating income of $462,000 for the first quarter of fiscal 2014, primarily

due to lower revenue and higher operating expenses.

Net income was $182,000 for the

first quarter of fiscal 2015, or $0.01 per diluted share, compared to a net loss of $(662,000), or $(0.09) per diluted share, for

the first quarter of fiscal 2014. Excluding the change in fair value of the warrant liability in both periods, net income was $62,000

for the first quarter of fiscal 2015, or less than $0.01 per diluted share, compared to net income of $299,000, or $0.03 per diluted

share, for the first quarter of fiscal 2014.

EBITDA for the first quarter

of fiscal 2015 amounted to $550,000 compared to EBITDA for the first quarter of fiscal 2014 of $912,000.

Cash Used in Operating Activities

Cash used in operating activities

was $161,000 for the first quarter of fiscal 2015 due in part to higher working capital levels. The Company had $747,000 in cash

and cash equivalents at December 31, 2014. During the first quarter, proceeds from borrowings net of repayments, and

cash on hand funded capital expenditures for plant, machinery and equipment of approximately $122,000 and higher working capital

levels in the quarter.

Earnings Conference Call

BASi has scheduled a conference

call at 11:00 a.m. Eastern Standard Time (EST) on February 12, 2015 to discuss the results. To participate in the call, dial 800-591-6942,

participant passcode 59711082. A simultaneous webcast of the conference call may be accessed online 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,

participant passcode 83157924 after 2:00 p.m. EST.

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 diluted share, excluding the income or expense from the change in the warrant

liability, and EBITDA for the first quarters of 2015 and 2014. EBITDA refers to a financial performance measure that excludes certain

income statement line items, such as interest, taxes, depreciation, and amortization. EBITDA may also exclude certain non-cash

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,

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 information 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. 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 Annual Report, as filed,

with the Securities and Exchange Commission.

(SEE BELOW FOR CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS)

BIOANALYTICAL SYSTEMS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF

AND COMPREHENSIVE INCOME (LOSS)

(In thousands, except per share amounts)