FOR MORE INFORMATION: Company Contact: Jill Blumhoff Chief Financial Officer & Vice President of Finance Phone: 765.497.8381 jblumhoff@BASinc.com BASi Continues Revenue Gains to Close Fiscal 2018

BASi Continues Revenue Gains

to Close Fiscal 2018

WEST LAFAYETTE, IN, December

20, 2018 -- Bioanalytical Systems, Inc. (NASDAQ:BASI) ("BASi", the "Company", "We" or "Our")

today announced financial results for the three and twelve months ended September 30, 2018.

Over the last five months, we

acquired the business of Seventh Wave Laboratories, LLC, commenced the expansion of our facilities in Evansville, Indiana and obtained

funding to support these initiatives in order to support future growth and enhance our scientific capabilities, client service

offerings and client experience.

Jill Blumhoff, BASi's

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

and final quarter of fiscal 2018 as compared to fiscal 2017 and even more proud of the foundation we have been building for future

growth. Our earnings in fiscal 2018 were impacted by over $550,000 in one-time costs for acquisition and integration activities

as well as retirement and recruiting expenses; however, we believe these investments will positively impact our future."

Ms. Blumhoff continued, "In

fiscal 2018, we made improvements to our facilities, strategically invested in new laboratory equipment, added critical leadership

positions and invested in new product development. We also completed plans and funding for the 2019 Evansville expansion. In addition

to our expansion plans, we plan to further develop and integrate our scientific service offerings. We also expect to invest in

sales and marketing resources. We are encouraged by the traction of all of these growth initiatives, further setting the foundation

for enhancing the client experience and growth in the future."

"We remain encouraged

by these results and recent events, which would not be possible without the consistently outstanding work from our dedicated team"

Ms. Blumhoff concluded.

Fourth Quarter Results

For the quarter, revenue amounted

to $8,986,000, a 53% increase from $5,873,000 in the fourth quarter of fiscal 2017. Revenue growth was mainly driven by the incremental

sales associated with the Seventh Wave acquisition plus increased sales in both the Services and Products segments.

Net loss for the fourth quarter

of fiscal 2018 amounted to $200,000, or $0.02 per diluted share, compared to net income of $229,000, or $0.03 per diluted share

for the fourth quarter of fiscal 2017. One-time expenses related to the Seventh Wave acquisition and integration in the fourth

quarter of fiscal 2018 amounted to approximately $345,000.

Net income and earnings per

share were also impacted by lower archive revenues, higher 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 fourth

quarter of fiscal 2018, amounted to $1,029,000, compared to Adjusted EBITDA for the fourth quarter of fiscal 2017 of $672,000.

Due to recent financing activities,

and to support 2019 growth plans, the Company had $773,000 in cash, $3,500,000 available on its general line of credit, $4,445,000

available on its construction line of credit and $1,429,250 available on an equipment line of credit as of September 30, 2018,

Fourth Quarter Segment Results

Service revenue for the fourth quarter

of fiscal 2018 increased 60% to $8,019,000 compared to $5,002,000 for the same period in fiscal 2017. Revenues from the Seventh

Wave acquisition added $2,982,000 in the fourth quarter of fiscal 2018. Also, Preclinical services revenues increased $260,000

due to a more favorable mix of studies in the fourth quarter of fiscal 2018. Other laboratory services revenues were negatively

impacted by lower archive revenues, which impact was partially offset by higher pharmaceutical analysis revenues in the fourth

quarter of fiscal 2018 versus the comparable period in fiscal 2017.

Cost of Service revenue as a percentage

of Service revenue decreased to 65.9% during the fourth quarter of fiscal 2018 from 67.7% in the comparable period in fiscal 2017.

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

Sales in our Products segment increased

11% in the fourth quarter of fiscal 2018 from $871,000 to $967,000 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 fourth quarter of fiscal 2018. Increased sales of our analytical instruments and PalmSens instruments also contributed to

Cost of Products revenue as a percentage

of Products revenue in the fourth quarter of fiscal 2018 decreased to 54.9% from 71.5% in the comparable prior-year period. This

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

automated in vivo sampling system, which carries higher margins.

For fiscal 2018, revenue amounted to $26,346,000

an 8.7% increase from $24,242,000 for fiscal 2017. Revenue growth was mainly driven by the incremental sales associated with the

Seventh Wave acquisition offset slightly by a decline in other service revenues as compared to fiscal 2017.

Net loss amounted to $194,000,

or $0.02 per diluted share, for fiscal 2018 compared to net income of $884,000, or $0.10 per diluted share, for fiscal 2017. One-time

expenses related to the Seventh Wave acquisition and integration as well as higher recruiting, retirement and relocation costs

amounted to approximately $550,000. Net loss was also impacted by lower archive revenues of $253,000, and other increased 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 was $2,822,000 for fiscal

2018, compared to Adjusted EBITDA of $2,424,000 for fiscal 2017.

Fiscal Year Segment Results

Service revenue increased 11.2% in fiscal

2018, to $22,440,000 from $20,182,000 in fiscal 2017. Revenues from the Seventh Wave acquisition added $2,982,000 in fiscal 2018.

Also, Preclinical services

revenues increased $168,000 due to a more

favorable mix of studies in fiscal 2018. Other laboratory services revenues were negatively impacted by lower archive revenues

of $253,000, which impact was partially offset by higher pharmaceutical analysis revenues of $178,000 in fiscal 2018 versus the

comparable period in fiscal 2017.

Cost of Service revenue as a percentage

of Service revenue increased to 70.9% during fiscal 2018 from 69.3% in fiscal 2017. The principal cause of this increase was the

mix of revenues, specifically the decline in archiving revenues which carry higher margins.

Sales in our Products segment decreased

3.8% in fiscal 2018, from $4,060,000 to $3,906,000 when compared to fiscal 2017. The majority of the decrease stems from lower

sales of our Culex automated in vivo sampling systems during fiscal 2018, partially offset by an increase in sales of our

analytical instruments, in fiscal 2018.

Cost of Product revenue as a percentage

of Product revenue in fiscal 2018 decreased to 59.5% from 62.9% in the fiscal 2017. This decrease is mainly due to a change in

the mix of products sold favoring higher-margin instruments fiscal 2018.

Cash Provided by Operating Activities

Cash provided by operating activities was

$3,487,000 for fiscal 2018 compared to $1,236,000 for fiscal 2017.

As of September 30, 2018, the Company had

$773,000 in cash and cash equivalents and $3,500,000 available on its general line of credit. The Company had a zero balance

on its $4,445,000 construction line of credit and a zero balance on its $1,429,250 equipment line of credit. During fiscal 2018,

cash from new financing and operations funded the Seventh Wave acquisition of $6,759,000. In addition, the Company funded capital

expenditures for laboratory equipment and building improvements as well as computer equipment and software of approximately $1,317,000.

Amendments to Credit Arrangements

On July 2, 2018, the Company and First

Internet Bank ("FIB") entered into an amendment to the Company's credit agreement to, among other things, provide

the Company with an additional term loan in the amount of $5,500,000, the proceeds of which were used to fund a portion of the

cash consideration for the Seventh Wave acquisition, and increased borrowing availability under the Company's general revolving