FOR MORE INFORMATION: Michael R Cox Phone 765.497.5829 mcox@bioanalytical.com Bioanalytical Systems, Inc. Reports First Quarter 2005 Financial Results

FOR MORE INFORMATION: Michael R Cox

Bioanalytical Systems, Inc. Reports First Quarter 2005 Financial Results

WEST LAFAYETTE, Ind., February

11, 2005 Bioanalytical Systems, Inc. (Nasdaq: BASI) today reported

financial results for its first quarter of fiscal 2005, ended December 31, 2004.

Revenue increased 10% to $9.7 million compared to $8.8 million for the quarter

ended December 31, 2003. Net income for the first quarter of fiscal 2005 was

$404,000, or $0.08 per basic and diluted share, compared to a net loss of

$130,000, or $0.03 per basic and diluted share for the first quarter of fiscal

2004. Increased sales effort resulted in better capacity utilization and a 22%

increase in service revenue in the current year when compared to fiscal 2004. A

14% decrease in product revenues was the result of an unusually large order in

the comparable period last year for the Company s Culex

Cost of revenue for the quarter

ended December 31, 2004 was $6.1 million, or 63% of revenue, compared to $6.1

million, or 70% of revenue, for the quarter ended December 31, 2003. The margins

for the current fiscal quarter reflect improvement as we raise the utilization

of services capacity acquired, built and commissioned in fiscal 2003. The

Company continues to aggressively market that capacity, anticipating that margin

percentages will improve with better utilization.

Peter T. Kissinger, Chairman and

CEO commented, Our first quarter results were positively impacted by the

resumption of work on significant contracts which had been deferred last year,

and by improved results at our clinical research unit in Baltimore and our

laboratory in McMinnville, Oregon. Product sales continued to show steady growth

if we exclude from last year the impact of one particularly large order, so we

are confident we are still doing the right things in those

Conference Call Information

BASi will host a live conference

call and listen-only Webcast to discuss its first quarter of fiscal year 2005

results at 9:00 a.m. EST on Monday, February 14, 2005. To participate in the

conference call, please dial 866-322-0620 (domestic) or 1-706-758-0599

(international), conference ID code 33858271. Also, a live Webcast of the

conference call will be available at www.bioanalytical.com.

For those unable to participate

there will be a replay available from Monday, February 14 at 12:00 pm EST,

through 11:59 p.m. EST on Wednesday, February 16, 2005, by dialing 800-642-1687

(domestic) or 1-706-645-9291 (international) and entering the pin code 3858271

for both telephone numbers. In addition, a replay of the Webcast will be

available at www.bioanalytical.com.

About Bioanalytical Systems, Inc.

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

http://www.bioanalytical.com for more 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 the development 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.

(in thousands, except share and per-share amounts)