FOR MORE INFORMATION: Company Contact: Jill Blumhoff Chief Financial Officer & Vice President of Finance Phone: 765.497.8381 jblumhoff@BASinc.com BASi Continues Revenue Growth in Third Quarter of Fiscal 2019

BASi Continues Revenue Growth

in Third Quarter of Fiscal 2019

WEST LAFAYETTE, IN, August

14, 2019 -- Bioanalytical Systems, Inc. (NASDAQ:BASI) ("BASi", the "Company", "We" or "Our")

today announced financial results for the three and nine months ended June 30, 2019.

Robert Leasure, Jr., BASi's President

and Chief Executive Officer commented, "Our financial results for the third quarter met our expectations and we are pleased

with our momentum. We saw revenue growth of 16% over the 2nd quarter of 2019 and overall revenue growth of 66.1% over the first

nine months of 2018, including growth attributable to both the Seventh Wave acquisition and the Smithers Avanza acquisition. Even

though the third fiscal quarter included over $200,000 in acquisition related cost, net income improved as compared to the second

quarter. Our quoting activity and services backlog continue to grow as a result of the acquisitions and investments in sales and

marketing. We are beginning to see the results we envisioned from our strategic initiatives and the extraordinary hard work across

Mr. Leasure continued, "During this

recent quarter, we completed the acquisition of Smithers Avanza's toxicology facility in Gaithersburg, Maryland, our second

acquisition within one year. We have taken, and continue to anticipate taking, advantage of immediate capacity and further capitalizing

on the assets and broadened scientific expertise acquired via the Smithers Avanza acquisition to reach additional clients. The

Evansville new building expansion and facility improvements continue to move forward. We obtained funding to support our acquisitions

and expansion, and other improvements to our facilities and equipment, to allow for continued growth and to enhance our scientific

capabilities and client experiences. We continue to invest in further integrating our facilities to develop existing facilities

and services into "Centers of Excellence" to distinguish our services in the industry, and will continue to evaluate

additional opportunities for internal and external growth. "

"Our team at BASi is very

proud of what we have accomplished over the last year and we look forward to the future that we are building together," Mr.

Third Quarter Results

For the quarter, revenue amounted

to $10,861,000, a 79.8% increase from $6,039,000 in the third quarter of fiscal 2018. Revenue growth was mainly driven by the incremental

sales associated with the Seventh Wave and Smithers Avanza acquisitions, plus increased organic sales in the Services segment.

Net loss for the third quarter

of fiscal 2019 amounted to $426,000, or $0.04 per diluted share, compared to a net loss of $75,000, or $0.01 per diluted share

for the third quarter of fiscal 2018.

Net income and earnings per

share were impacted by, among other factors, the mix of revenues, recruiting and relocation of management and scientific teams

and growing the employee base, acquisition related costs, as well as higher sales and marketing expenses. The higher sales and

marketing expenses are driven by our focus on promoting our combined brand and revenue growth.

Adjusted EBITDA for the third

quarter of fiscal 2019 amounted to $772,000, compared to Adjusted EBITDA for the third quarter of fiscal 2018 of $376,000.

Third Quarter Segment Results

Service revenue for the third quarter of

fiscal 2019 increased 99.1% to $9,689,000 compared to $4,866,000 for the same period in fiscal 2018. Nonclinical services revenues

increased $4,521,000 in the third quarter of fiscal 2019 due to additional revenues attributable to the Seventh Wave Laboratories

acquisition of $2,845,000 and the Smithers Avanza acquisition of $1,421,000 in the third quarter of fiscal 2019, as well as an

overall increase in the number and mix of studies compared to the prior year period. Bioanalytical analysis revenues increased

by $373,000 in the third quarter of fiscal 2019, mainly due to additional revenues attributable to the Seventh Wave Laboratories

acquisition. Other laboratory services revenues were negatively impacted by lower archive revenues in the second quarter of fiscal

2019 versus the comparable period in fiscal 2018.

Cost of Service revenue as a percentage

of Service revenue decreased to 72.3% during the third quarter of fiscal 2019 from 75.7% in the comparable period in fiscal 2018.

The principal cause of this decrease was the increase in the nonclinical service revenues that facilitated a higher absorption

of fixed cost in the current quarter.

Sales in our Products segment remained

essentially flat in the third quarter of fiscal 2019 from $1,172,000 to $1,173,000 when compared to the same period in the prior

Cost of Products revenue as a percentage

of Products revenue in the third quarter of fiscal 2019 decreased to 62.1% from 62.3% in the comparable prior-year period mainly

due to the mix of products sold.

For the first nine months of

fiscal 2019, revenue amounted to $28,830,000, a 66.1% increase from $17,360,000 in the first nine months of fiscal 2018. Revenue

growth was mainly driven by incremental sales associated with the Seventh Wave acquisition plus increased sales in both the Services

and Products segments.

Net loss for the first nine

months of fiscal 2019 amounted to $1,080,000, or $0.10 per diluted share, compared to net income of $6,000, or $0.00 per diluted

share for the first nine months of fiscal 2018.

Net income and earnings per

share were impacted by, among other factors, the mix of revenues, recruiting and relocation of management and scientific teams

and growing the employee base, acquisition related costs, as well as increased sales and marketing expenses.

Adjusted EBITDA for the first

nine months of fiscal 2019, amounted to $1,945,000, compared to Adjusted EBITDA for the first nine months of fiscal 2018 of $1,345,000.

Service revenue for the first nine months

of fiscal 2019 increased 77.2% to $25,555,000 compared to $14,421,000 for the same period in fiscal 2018. Nonclinical services

revenues increased $9,485,000 in the first nine months of fiscal 2019 due to additional revenues attributable to the Seventh Wave

Laboratories and Smithers Avanza acquisitions of $7,736,000 and $1,421,000, respectively, as well as an overall increase in the

number of studies compared to the prior year period. Bioanalytical analysis revenues increased by $1,687,000 in the first nine

months of fiscal 2019, mainly due to additional revenues attributable to the Seventh Wave Laboratories acquisition.

Cost of Service revenue as a percentage

of Service revenue decreased to 72.6% during the first nine months of fiscal 2019 from 73.6% in the comparable period in fiscal

2018. The principal cause of this decrease was due to the mix of services provided in the first nine months of fiscal 2019.

Sales in our Products segment increased

11.4% in the first nine months of fiscal 2019 from $2,939,000 to $3,275,000 when compared to the same period in the prior fiscal

year. The majority of the increase stems from higher sales of our Culex automated in vivo sampling systems and analytical instruments

in the current period as compared to the prior year period.

Cost of Products revenue as a percentage

of Products revenue in the first nine months of fiscal 2019 increased to 66.2% from 61.1% in the comparable prior-year period.

This increase is mainly due to higher material costs and the mix of product sales during the first nine months of fiscal 2019.

Cash Provided by Operating Activities

Cash provided by operating activities was

$1,567,000 for the first nine months of fiscal 2019 compared to $2,210,000 for the same period in fiscal 2018.

As of June 30, 2019, the Company had $506,000

in cash and cash equivalents, a $572,000 balance on its general line of credit, a $2,012,000 balance on its $4,445,000 construction

line of credit, a $499,000 balance on its $1,429,250 equipment line of credit and a $460,000 balance on its capex line of credit.

During fiscal 2019, cash from operations, cash on hand and financing activities funded capital expenditures of approximately $4,530,000

for the expansion of our Evansville facility in addition to laboratory equipment and building improvements as well as computer

equipment and software.

On May 1, 2019, the Company acquired from

Smithers Avanza Toxicology Services LLC ("Seller"), a consulting-based contract research laboratory located in Gaithersburg,

Maryland, substantially all of the assets used by the Seller in connection with the performance of in-vivo mammalian toxicology

CRO services for pharmaceuticals (small molecules and biologics), vaccines, agro and industrial chemicals. The consideration for

the acquisition consisted of $1,270,646 in cash, subject to certain adjustments, 200,000 of the Company's common shares and

an unsecured promissory note in the initial principal amount of $810,000. The Company funded the cash portion of the purchase price

for the acquisition with cash on hand and the net proceeds from the refinancing of its credit arrangements with First Internet

Non-GAAP to GAAP Reconciliation