FOR MORE INFORMATION: Company Contact: Jill Blumhoff Chief Financial Officer & Vice President of Finance Phone: 765.497.8381 jblumhoff@BASinc.com BASi Reports First Quarter Results

BASi Reports First Quarter Results

WEST LAFAYETTE, IN, February

13, 2018 -- Bioanalytical Systems, Inc. (NASDAQ:BASI) ("BASi", the "Company", "We" or "Our")

today announced financial results for the first quarter of fiscal 2018.

First Quarter Results

For the three months ended December

31, 2017, revenue amounted to $5,377,000 a 13% decrease from $6,174,000 in the first quarter of fiscal 2017.

Service revenue for the first

quarter of fiscal 2018 decreased 14% to $4,525,000 compared to $5,264,000 for the same period in fiscal 2017. Preclinical services

revenue decreased due to an unfavorable mix of studies compared to the prior fiscal year period. Other laboratory services revenues

were positively impacted by higher pharmaceutical analysis revenues, which were slightly offset by lower discovery services revenues

in the first quarter of fiscal 2018 versus the comparable period in fiscal 2017. In addition, archive revenue increased in the

first quarter of fiscal 2018, as compared to the first quarter of fiscal 2017. Bioanalytical analysis revenues declined due to

fewer samples received and analyzed in the first quarter of fiscal 2018.

Sales in our Products segment

decreased 6% in the first quarter of fiscal 2018 from $910,000 to $852,000 when compared to the same period in the prior fiscal

year. The majority of the decrease stems from lower maintenance and services revenues as well as a decline in sales of our Culex

automated in vivo sampling systems. These factors were partially offset by an increase in our analytical instruments revenues

in the first quarter of fiscal 2018.

Gross profit decreased to $1,581,000,

or 29% of revenue, in the first quarter of fiscal 2018, compared to $1,859,000, or 30% of revenue, during the comparable fiscal

2017 period. The principal causes for the decrease were a decline in revenues and a less favorable revenue mix.

Operating expenses for the first

quarter of fiscal 2018 decreased 11% to $1,570,000 compared to $1,765,000 during the first quarter of fiscal 2017. The principal

reason for the decrease was the absence of an accrual for the severance for our former Chief Executive Officer, amounting to approximately

$200,000 that occurred in the first quarter of fiscal 2017.

Operating income for the first

quarter of fiscal 2018 amounted to $11,000 compared to operating income of $94,000 for the first quarter of fiscal 2017. The decrease

was primarily due to lower revenue, partially offset by decreased operating expenses.

Due to the changes in the United

States tax law in December of 2017, we accrued a refundable tax asset and subsequent reduction in tax expense of $68 in the first

quarter of fiscal 2018 associated with the AMT credit carry forward.

Net income for the first quarter

of fiscal 2018 amounted to $26,000, or $0.00 per diluted share, compared to a net income of $17,000, or $0.00 per diluted share

for the first quarter of fiscal 2017.

EBITDA for the first quarter

of fiscal 2018, amounted to $446,000, compared to EBITDA for the first quarter of fiscal 2017 of $480,000.

Cash Provided by Operating

Cash provided by operating activities

was $760,000 for the first quarter of fiscal 2018 due in large part to the lower working capital levels in the first quarter. Accounts

Receivable decreased $419,000 and Accrued Expenses and Customer Advances increased by $178,000 and $283,000, respectively. These

items were offset in part by a decrease in Accounts Payable of $327,000 and an increase in Prepaid Expenses of $173,000.

The Company had $933,000 in

cash and cash equivalents and $2,000,000 available on its line of credit as of December 31, 2017. During the first quarter

of fiscal 2018, cash from operations funded capital expenditures for building improvements as well as laboratory and computer equipment

of approximately $175,000.

Jill Blumhoff, BASi's

Vice President of Finance and Chief Financial Officer commented, "While our first quarter was challenging from a revenue

standpoint, we believe our performance was principally a reflection of the normal variability of our business on a quarterly basis

driven by the timing and scope of quote activity. We expect to see the positive side of this variability in the future."

Ms. Blumhoff continued, "We

are very pleased with our progress this quarter on the growth initiatives underway for fiscal 2018 that we discussed at the end

of fiscal 2017. We remain focused on new product development opportunities and continue to focus on marketing and expanding our

relationships with our distributors, resellers and strategic partners in our products business. We are also taking steps to make

the expansion of our preclinical services facilities a reality. I am pleased to report that we have made progress in enhancing

the scientific expertise of our staff and in upgrading our laboratory equipment for our other service offerings.

We are not finished. With our

untapped credit facility fully accessible, in addition to our cash on hand, we believe we have the liquidity to fund relevant initiatives

in order to deliver consistent profitable growth. With the outstanding work from our dedicated employees and the support from our

board members and shareholders, we will continue executing on our initiatives," Ms. Blumhoff concluded.

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 EBITDA for the first quarters of fiscal 2018 and 2017. 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.

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 EBITDA, 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 our financial

condition, 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)

BIOANALYTICAL SYSTEMS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS