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Boston Biomedica Reports Record First Quarter Financial Results

WEST BRIDGEWATER, Mass., April 29 /PRNewswire/ -- Boston Biomedica, Inc. (Nasdaq: BBII) today announced the results of its operations for the quarter ended March 31, 1997.

For the first quarter, the Company reported revenues of $4,209,049, an increase of $1,125,040, or 36%, over revenues of $3,084,009 for the same period in 1996. Net income for the quarter was $147,758 compared to a net loss of ($96,538) for the same period last year. First quarter 1997 earnings per share were $0.03, as compared to a loss of ($0.04) per share for the year earlier period. First quarter 1997 EPS reflects an increase of 88% in shares outstanding as a result of the Company's October 1996 initial public offering (IPO).

"Continued demand for our quality control products, especially our Accurun family of products, helped us to achieve these record first quarter results," stated Kevin W. Quinlan, Chief Financial Officer of Boston Biomedica, Inc. "In addition, we are very pleased with the overall performance of our specialty laboratory testing services. Led by molecular diagnostic testing, BBI Clinical Laboratories showed a 71% increase in revenue as compared to the first quarter of 1996, while posting their best ever first quarter results."

Boston Biomedica, Inc. is a worldwide manufacturer of quality control products for use with in vitro diagnostic test kits for the detection, analysis and monitoring of infectious diseases, including AIDS, Hepatitis and Lyme Disease. These products are used to develop test kits, to permit the monitoring of laboratory personnel and equipment, and to help ensure the accuracy of test results. The Company also manufactures diagnostic test kit components and provides specialty laboratory services.

"In addition to generating record earnings, BBI invested significantly in sales & marketing, research & development and facility improvements during the first quarter of 1997. All of these are integral to our overall growth strategy, and all will strengthen our position as one of the leading manufacturers of quality control products for infectious disease testing worldwide," said Richard T. Schumacher, President and CEO of Boston Biomedica, Inc.

This release may include forward-looking statements concerning the Company's financial performance and business operations. The Company wishes to caution readers of this press release that actual results might differ materially from those projected in any forward-looking statements.

Factors which might cause actual results to differ materially from those projected in the forward-looking statements contained herein include the following: inability of the Company to develop the end-user market for quality control products; inability of the Company to integrate the business of Source Scientific, Inc. into the Company's business; inability of Source Scientific, Inc. to repay the loans made by the Company; inability of the Company to obtain an adequate supply of raw materials necessary for certain of its products; significant reductions in purchases by any of the Company's major customers; and the potential insufficiency of Company resources, including human resources, plant and equipment and management systems, to accommodate any future growth. These and certain other factors which might cause actual results to differ materially from those projected are more fully set forth under the caption "Risk Factors" in the Company's Registration Statement on Form S-1 (SEC File No. 333-10759).

See Following Consolidated Statements Of Operations and Summary Balance Sheets

                   BOSTON BIOMEDICA, INC. AND SUBSIDIARIES
                    CONSOLIDATED STATEMENTS OF OPERATIONS

                                             Three Months Ended March 31,
                                             1997        1996        1995
     REVENUE:
      Product sales                    $ 2,126,956  $1,815,481  $1,562,770
      Services                           2,082,093   1,268,528   1,164,946
        Total revenue                    4,209,049   3,084,009   2,727,716

     COSTS AND EXPENSES:
      Cost of product sales              1,055,422     899,826     923,266
      Cost of services                   1,475,532   1,133,439     951,871
      Research and development             236,750     166,565      65,165
      Selling and marketing                613,360     415,012     293,826
      General and administrative           679,207     536,503     483,373

        Total operating costs and
         expenses                        4,060,271   3,151,345   2,717,501

        Income (loss) from operations      148,778    (67,336)      10,215

     Interest income (expense), net         97,486    (93,560)    (75,735)

        Income (loss) before income
         taxes                             246,264   (160,896)    (65,520)

     (Provision for) benefit from         (98,506)      64,358      26,208
       income taxes

        Net income (loss)                 $147,758   $(96,538)   $(39,312)

     Net income (loss) per sham              $0.03     $(0.04)     $(0.01)


     Weighted average common and
       common equivalent shares
       outstanding                       4,825,582   2,564,774   2,614,056

                     CONSOLIDATED SUMMARY BALANCE SHEETS

                                                    March 31,     December 31,
                                                       1997            1996

     Cash, cash equivalents, and investments      $ 7,019,559   $ 8,082,642
     Other current assets                           8,205,613     8,119,478
         Total revenue                             15,225,172    16,202,120

     Property and equipment, net                    2,937,354     2,699,158
     Investment                                       732,500       732,500
     Other long-term assets                           886,103       164,536
         Total assets                             $19,781,129   $19,798,314

     Current liabilities                          $ 3,191,166   $ 3,366,204
     Long-term debt                                    37,543        40,948
     Other long-term liabilities                      101,580       101,580

     Stockholders' equity                          16,450,840    16,289,582
         Total liabilities and stockholders'
           equity                                 $19,781,129   $19,798,314


SOURCE Boston Biomedica, Inc.
CONTACT: Richard T. Schumacher, President & CEO, or Kevin W. Quinlan, Chief Financial Officer, of Boston Biomedica, Inc., 508-580-1900

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