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

Reports Third Quarter Results with Revenue Gains

WEST LAFAYETTE, IN, August

14, 2018 - Bioanalytical Systems, Inc. (NASDAQ:BASI) ("BASi", the "Company", "We" or "Our")

today announced financial results for the third quarter and first nine months of fiscal 2018.

During the third quarter of

fiscal 2018, BASi negotiated the acquisition of Seventh Wave Laboratories LLC, adding to the Company's foundation for growth,

completed the planning and obtained permits for the announced expansion and upgrade of its Mt. Vernon Preclinical Services facility,

added to its management and leadership team, and made additional capital investments in its laboratory, computer equipment and

infrastructure. The transaction with Seventh Wave Laboratories closed on July 2, 2018.

Jill Blumhoff, BASi's

Vice President of Finance and Chief Financial Officer commented, "We are very pleased to report revenue growth during the

third quarter of fiscal 2018 as compared to the third quarter of fiscal 2017, and to see encouraging results from our growth initiatives,

further setting the foundation for growth in the future. Our earnings were negatively impacted by over $210,000 in one-time costs

for retirement and recruiting as well as due diligence expenses related to the newly announced acquisition of Seventh Wave Laboratories

LLC's operations; however, we believe these investments will positively impact future results. With these investments combined

with the capital investments to improve our laboratory and computer equipment and infrastructure, we ended the current quarter

with a zero balance on our line of credit."

Ms. Blumhoff continued, "We

are very excited about the opportunity to integrate the talent and expertise of Seventh Wave. Through the acquisition, we have

expanded our service offerings and can reach nearly double the clients for our services. Our cultures are similar and we expect

to continue to deliver high quality service to our expanded client base. Combined with the initiatives currently in process, including

the expansion of our preclinical services facilities and the investment in new product development, the addition of Seventh Wave

helps further provide the foundation for future growth.

We remain encouraged by our

results and recent events thanks, as always, to the outstanding work from our dedicated employees at all sites. They provide the

foundation from which we can build the future. With continued support from our board members and shareholders, we will continue

to execute on our initiatives aimed at consistent growth in revenue and profitability," Ms. Blumhoff concluded.

Third Quarter Results

For the quarter, revenue amounted

to $6,039,000, a 4% increase from $5,836,000 in the third quarter of fiscal 2017. Revenue growth was driven by increased sales

in the Products segment offset in part by a slight decrease in revenue reported in the Services segment. As described below, the

transaction with Seventh Wave Laboratories announced last month closed on July 2, 2018. Consequently, Seventh Wave operations did

not contribute to the reported financial results in the third quarter.

Net loss for the third quarter

of fiscal 2018 amounted to $75,000, or $0.01 per diluted share, compared to net income of $221,000, or $0.03 per diluted share

for the third quarter of fiscal 2017. One-time expenses related to recruiting, retirement, relocation and acquisition-related due

diligence and transaction costs were approximately $210,000. Net income and earnings per share were also impacted by a less favorable

mix of studies in the third quarter, lower archive revenues, and higher operating costs including new product development expenses

and higher stock option expense attributable to the grants of options to our directors and certain employees in October 2017.

Adjusted EBITDA for the third

quarter of fiscal 2018, amounted to $376,000, compared to Adjusted EBITDA for the third quarter of fiscal 2017 of $734,000.

Third Quarter Segment Results

Service revenue for the third quarter of

fiscal 2018 decreased 2% to $4,866,000 compared to $4,954,000 for the same period in fiscal 2017. Preclinical services revenues

and bioanalytical revenues increased $204 and $30, respectively, due to a more favorable mix of studies in the third quarter of

fiscal 2018. Other laboratory services revenues were negatively impacted by lower pharmaceutical analysis and archive revenues,

which impact was partially offset by higher discovery services revenues in the third quarter of fiscal 2018 versus the comparable

period in fiscal 2017.

Cost of Service revenue as a percentage

of Service revenue increased to 75.7% during the third quarter of fiscal 2018 from 66.8% in the comparable period in fiscal 2017.

The principal cause of this increase was the decrease in revenues, which led to lower absorption of the fixed costs in our Service

segment, specifically the decline in archive and pharmaceutical analysis revenues which carry higher margins.

Sales in our Products segment increased

33% in the third quarter of fiscal 2018 from $882,000 to $1,173,000 when compared to the same period in the prior fiscal year.

The majority of the increase stems from an increase in sales of our Culex automated in vivo sampling systems and related

consumables in the third quarter of fiscal 2018. Increased sales of our analytical instruments and PalmSens instruments also contributed

Cost of Products revenue as a percentage

of Products revenue in the third quarter of fiscal 2018 decreased to 62.3% from 67.7% in the comparable prior-year period. This

decrease is mainly due to the mix of product sales during the third quarter of fiscal 2018, principally higher sales of the Culex

automated in vivo sampling system, which carry higher margins.

First Nine Months' Results

For the nine months ended June 30, 2018,

revenue amounted to $17,360,000 a 6% decrease from $18,369,000 for the nine months ended June 30, 2017. Revenue decreases were

reported by both business segments. An unfavorable mix of studies and fewer samples received and analyzed in our Services segment

and lower sales of our Culex automated in vivo sampling systems in our Products segment contributed to the decreases.

Net income amounted to $6,000, or $0.00

per diluted share, for the first nine months of fiscal 2018 compared to $655,000, or $0.08 per diluted share, for the first nine

months of fiscal 2017. The lower net income and earnings per share were driven primarily by the lower revenues, an unfavorable

change in sales mix and higher operating costs. The increase in operating costs reflects expenditures related to new product development,

as well as employee search fees, due diligence costs, relocation costs and increased stock option expense attributable to the grants

of options to our directors and certain employees in October 2017. These factors were partially offset by lower consulting costs

and lower salaries and benefits expense attributable to severance expense related to the separation of our former Chief Executive

Officer incurred during the first quarter of fiscal 2017, which we did not incur in the fiscal 2018 period.

Adjusted EBITDA was $1,345,000 for the

first nine months of fiscal 2018, compared to Adjusted EBITDA of $2,151,000 for the first nine months of fiscal 2017.

First Nine Months' Segment

Service revenue decreased 5% in the nine

months ended June 30, 2018, to $14,421,000 from $15,180,000 in the first nine months of fiscal 2017. Preclinical services revenues

decreased slightly due to an unfavorable mix of studies in the first quarter of fiscal 2018, partially offset by more favorable

mix in both the second and third quarters of fiscal 2018. Bioanalytical analysis revenues decreased due to fewer samples received

and analyzed in the first nine months of fiscal 2018 in addition to an unfavorable mix favoring method development and validation

projects during this time period. Other laboratory services revenues were negatively impacted by lower discovery services and archive

revenues, which were partially offset by higher pharmaceutical analysis revenues in the first nine months of fiscal 2018 versus

the comparable period in fiscal 2017.

Cost of Service revenue as a percentage

of Service revenue increased to 73.6% during the first nine months of fiscal 2018 from 69.9% in the comparable period last fiscal

year. The principal cause of this increase was the decrease in revenues, which led to lower absorption of the fixed costs in our

Service segment, specifically the decline in archiving revenues which carry higher margins. A significant portion of our costs

of productive capacity in the Service segment are fixed. Thus, decreases in revenues lead to increases in costs as a percentage

Sales in our Products segment decreased

8% in the nine months ended June 30, 2018, from $3,189,000 to $2,939,000 when compared to the same period in the prior fiscal year.

The majority of the decrease stems from lower sales of our Culex automated in vivo sampling systems during the first and

second quarters, partially offset by an increase in sales of our analytical instruments, over the same period in the prior fiscal

Cost of Product revenue as a percentage

of Product revenue in the first nine months of fiscal 2018 increased to 61.1% from 60.6% in the comparable prior year period. This

increase is mainly due to a change in the mix of products sold in the first nine months of fiscal 2018, mainly due to lower sales

of the Culex automated in vivo sampling systems, as well as slightly higher material costs.

Cash Provided by Operating Activities

Cash provided by operating activities was