FOR MORE INFORMATION: Michael R. Cox Phone 765.497.5829 mcox@BASInc.com Bioanalytical Systems, Inc. Reports Financial Results for Fiscal 2009

INFORMATION: Michael R. Cox

Systems, Inc. Reports Financial Results for Fiscal 2009

LAFAYETTE, Ind., January 14, 2010- Bioanalytical Systems, Inc.

(Nasdaq: BASI) today reported financial results for the three and twelve months

ended September 30, 2009.

decreased 9.6% in the fourth quarter of fiscal 2009 to $8.5 million compared to

revenue of $9.4 million from continuing operations for the same period in fiscal

2008. Service revenue declined 8.2% to $6.7 million and Product revenue declined

14.3% to $1.8 million. The net loss for the fourth quarter of

fiscal 2009 was $1.4 million, or $0.29 per basic and diluted share,

compared to a net loss from continuing operations of $0.9 million, or $0.19 per

basic and diluted share, for the fourth quarter of fiscal 2008.

decreased 23.8% in fiscal 2009 to $31.8 million compared to revenue of $41.7

million from continuing operations in fiscal 2008. Service revenue declined

26.4% and Product revenue declined 13.6% from the prior fiscal year to $24.2

million and $7.6 million, respectively. The net loss for fiscal 2009 was $5.5

million, or $1.11 per basic and diluted share, compared to net income from

continuing operations of $495,000, or $0.10 per basic and diluted share, for

fiscal 2008. Included in the net loss for fiscal 2009 was a non-cash impairment

charge of $472,000 eliminating the goodwill of the Company's UK

Company discontinued its Phase I clinical trials business in June

2008. The net loss from discontinued operations in fiscal 2008 was

$2.0 million, or $0.40 per basic and diluted share. This resulted in

a net loss from all operations for fiscal 2008 of $1.5 million, or $0.30 per

basic and diluted share.

revenue decline in fiscal 2009 stems mainly from study delays, decreases in new

bookings and spending reductions by our customers as part of their overall cost

savings initiatives. Although revenues for fiscal 2009 were less than in fiscal

2008, revenues for the second half of the current fiscal year increased

approximately 10% over the first half of the current fiscal

year. This increase is the result of increased proposal opportunities

and contract acceptances. Selling, general and administrative costs decreased

$1.6 million, or 25%, in the second half of the current fiscal year following

one-time costs, such as severance for employees, recruiting fees for replacing

former officers and marketing and advertising costs associated with our new

marketing plan and branding, incurred in the first half of the

year. EBITDA (Earnings Before Interest Taxes Depreciation and

the second half of the current fiscal year was positive as compared to negative

for the first half of the current fiscal year.

Company negotiated a Fifth Amendment to the Amended and Restated Credit

Agreement with PNC Bank, successor by merger to National City Bank, on December

31, 2009. This Amendment extended the maturity date of the line of

credit from December 31, 2009 to January 15, 2010. On January 13,

2010, the Company entered into a new revolving line of credit agreement with

Entrepreneur Growth Capital LLC (EGC) to replace the PNC Bank line of

credit. This agreement expires on January 31, 2011.

Cox, Chief Financial Officer, stated, "The past fiscal year was one of

significant change for us, both in our management team and in our

operations. We replaced senior managers in two key positions in the

organization. We experienced lower demand for our products and services, high

cancellation rates and significant project delays. We believe this was primarily

due to the current general economic conditions and the global financial crisis,

increased competition, and consolidation of several large pharmaceutical and

biotechnology companies, which delayed decisions on research and development

spending. Despite these conditions and uncertainties about the level of and

delays in spending by pharmaceutical and biotechnology companies, we continue to

believe in the fundamentals of the market. For fiscal 2010, we remain focused on

maximizing cash flow from operating activities as well as on sales execution,

operational performance and building strategic partnerships with pharmaceutical

and biotechnology companies. With the signing of our new revolving

line of credit agreement with EGC on January 13, 2010 and the impact of the cost

reductions implemented, we project that we will have the liquidity required to

meet our fiscal 2010 operations and debt obligations."

Bioanalytical Systems, Inc.

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

release contains forward-looking statements that are subject to risks and

uncertainties including, but not limited to, risks and uncertainties 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.

THE PAGE FOR CONSOLIDATED STATEMENTS OF OPERATIONS]

1 EBITDA is commonly used to

analyze companies on the basis of operating performance, leverage and

liquidity. EBITDA is not intended to represent cash flows for the

periods discussed, nor should it be viewed as an alternative to operating income

or as an indicator of operating performance, and it should not be considered in

isolation or as a substitute for measures of performance prepared in accordance

with accounting principles generally accepted in the United

States. Companies calculate EBITDA differently and, therefore, EBITDA

as calculated by the Company may not be comparable to EBITDA reported by other

STATEMENTS OF OPERATIONS

thousands, except per share amounts)