Unassociated Document FOR MORE INFORMATION: Michael R. Cox Phone 765.497.5829 mcox@BASInc.com Bioanalytical Systems, Inc. Reports Financial Results through Nine Months of Fiscal 2009

INFORMATION: Michael R. Cox

Systems, Inc. Reports Financial Results through Nine Months of Fiscal

LAFAYETTE, Ind., August 10, 2009- Bioanalytical Systems, Inc.

(Nasdaq: BASI) today reported financial results for the third quarter and nine

months of fiscal 2009, ended June 30, 2009.

decreased 29.0% in the third quarter of fiscal 2009 to $8.1 million compared to

revenue of $11.4 million from continuing operations for the same period in

fiscal 2008. Service revenue declined 33.0% to $6.1 million and Products revenue

declined 16.7% to $2.0 million. The net loss for the third quarter was $632,000,

or $0.13 per basic and diluted share, compared to net income from continuing

operations of $407,000, or $0.08 per basic and diluted share, for the third

quarter of fiscal 2008. Included in the net loss for the

current year was an impairment charge of $472,000 eliminating the goodwill of

the Company's UK subsidiary.

decreased 27.9% in the first nine months of fiscal 2009 to $23.3 million

compared to revenue of $32.3 million from continuing operations for the same

period in fiscal 2008. Service revenue declined 32.1% and Products revenue

declined 12.3% from the first nine months of the prior fiscal year. The net loss

for the nine months was $4,047,000, or $0.82 per basic and diluted share,

compared to net income from continuing operations of $1,426,000, or $0.29 per

basic and diluted share for the comparable period in fiscal 2008.

Company discontinued its Phase I clinical trials business in June

2008. The net loss from discontinued operations in the nine months of

the prior fiscal year was $1.8 million, or $0.37 per basic and diluted

share. This resulted in a net loss from all operations for the nine

months ended June 30, 2008 of $406,000, or $0.08 per basic and diluted

revenues were less than in the comparable period of the prior fiscal year,

revenues for the current fiscal quarter ended June 30, 2009 were the highest of

the three quarters to date in the current fiscal year. This increase

is the result of increased proposal opportunities and contract acceptances.

Operating costs in the third quarter decreased from the prior two quarters of

the current fiscal year. Compared to the second fiscal quarter when

additional costs were incurred in staff reductions, these costs have decreased

28% in the current quarter. EBITDA (Earnings Before Interest Taxes

Depreciation and Amortization)1 for

the third quarter was positive for the first time during the current fiscal

Company also negotiated a Fourth Amendment to the Amended and Restated Credit

Agreement with National City Bank on July 17, 2009. This Amendment

waived the covenant breaches from the current fiscal year and established new

calculations and requirements for the financial covenants through December 31,

2009. This mirrors the amendment with Regions Bank previously

executed in which covenant breaches were waived and new calculations established

for the covenant requirements through December 31, 2009.

Cox, Chief Financial Officer, stated, "The results of our third fiscal quarter

cause us to be guardedly optimistic. While our customers have not

returned to the spending levels we saw before the recession, we are seeing

increased business activity in our markets. With our fixed expenses

greatly reduced since last year, our operating cash flow has improved and was

positive in the recent quarter which enabled us to amend our banking

arrangements. We continue to focus our efforts on dealing with these

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 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS]

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 presented, 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

CONSOLIDATED STATEMENTS OF OPERATIONS

thousands, except per share amounts)