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Boston Biomedica Reports First Quarter Financial Results

WEST BRIDGEWATER, Mass., April 30 /PRNewswire/ -- Boston Biomedica Inc. (Nasdaq: BBII) today announced that revenue for the first quarter ended March 31, 1999 was $6,845,165, an increase of $572,370 or 9.1 percent, compared with revenue of $6,272,795 for the same period in 1998. Net loss for the quarter was $237,244, or $(0.05) per diluted share, compared with a net loss of $644,518, or $(0.14) per diluted share, for the same period last year. Included in the first quarter loss of 1998 was an after tax charge of $527,000 related to the March 1998 acquisition of rights to certain technology. In accordance with applicable accounting rules, this acquired research and development was expensed in that period.

"The first quarter's results were in line with our expectations, and consistent with our 1999 plan to continue growing our profitable core businesses while we step up the level of R&D spending on PCT and other new technologies," said Kevin W. Quinlan, Chief Financial Officer of Boston Biomedica. "We feel that the positive impact on the future earnings of BBI, if our R&D efforts are successful, clearly warrants today's increased expenditures."

"We are very pleased with the progress made in both our pressure cycling technology (PCT) and drug discovery programs in the first quarter," said Richard T. Schumacher, President, CEO and Founder of Boston Biomedica. "In the area of PCT, we completed the majority of the manufacture of our first eight computer-driven prototype instruments (Barocycler(TM)). We also generated significant data on the inactivation of HIV and six human pathogenic bacteria through pressure cycling and presented these data at two important scientific meetings. In the area of drug discovery, we filed two patent applications, generated data indicating that our most potent anti-HIV compounds may have novel properties compared with approved drugs, and achieved significant progress in our proprietary HIV vaccine program.

Boston Biomedica, Inc. is a worldwide manufacturer and provider of proprietary quality control products for use with IVD test kits for the detection, analysis and monitoring of infectious diseases, including AIDS, Hepatitis, Lyme Disease and ToRCH. The Company's products are used by clinical and research laboratories, blood banks, IVD manufacturers and regulatory agencies to help ensure the accuracy of infectious disease test results through the routine monitoring of test performance. The Company also manufactures diagnostic test kit components and laboratory instrumentation, provides specialty laboratory testing and contract research services, and has significant R&D investments in pressure cycling technology (PCT) and anti-HIV drug discovery.

Statements contained in this news release that state the Company's or management's intentions, hopes, beliefs, expectations or predictions of the future are "forward-looking" statements. It is important to note that the Company's actual results could differ materially from those projected in such forward-looking statements. Factors that could cause actual results to differ from those projected include the possibility that the Company may not be successful in commercializing current R&D projects, may not have the resources to complete the projects, or that the projects may take longer than expected to complete. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in the Company's SEC filings, including but not limited to the Company's report on Form 10-K for the period ended December 31, 1998. Copies of this document may be obtained by contacting the Company or the SEC.

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                     BOSTON BIOMEDICA, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF OPERATIONS

                                            Three Months Ended March 31,
                                                1999           1998
    REVENUE:
      Products                               $3,456,202     $3,063,359
      Services                                3,388,963      3,209,436
        Total revenue                         6,845,165      6,272,795

    COSTS AND EXPENSES:
      Cost of product sales                   1,808,647      1,771,751
      Cost of services                        2,470,097      2,323,211
      Research and development                  762,609        432,389
      Acquired research and development             --         850,000
      Selling and marketing                   1,005,271        928,612
      General and administrative              1,094,690      1,029,936

        Total operating costs
         and expenses                         7,141,314      7,335,899

        Loss from operations                   (296,149)    (1,063,104)

    Interest income                                 696         24,530
    Interest expense                            (87,199)          (971)

        Loss before income taxes               (382,652)    (1,039,545)

    Benefit from income taxes                   145,408        395,027
        Net loss                              $(237,244)     $(644,518)

    Net loss per share, basic                    $(0.05)       $(0.14)
    Net loss per share, diluted                  $(0.05)       $(0.14)

    Number of shares used to
     calculate net income per share
       Basic                                  4,667,816      4,632,061
       Diluted                                4,667,816      4,632,061


                       CONSOLIDATED SUMMARY BALANCE SHEETS

                                              March 31,    December 31,
                                                1999           1998

    Current assets                          $14,269,955    $14,250,690
    Property, plant and equipment, net        7,090,702      6,925,423
    Other non-current assets                  2,847,183      2,906,272
        Total assets                        $24,207,840    $24,082,385

    Current liabilities                      $4,239,367     $5,155,628
    Long-term debt                            5,307,702      3,988,602
    Other long-term liabilities                 826,334        869,501
        Total liabilities                    10,373,403     10,013,731

    Stockholders' equity                     13,834,437     14,068,654
        Total liabilities
         and stockholders' equity           $24,207,840    $24,082,385

SOURCE Boston Biomedica, Inc.
Web site: http: //www.bbii.com
CONTACT: Richard T. Schumacher, Pres./CEO, or Kevin W. Quinlan, CFO, or William R. Prather, M.D., Sr. VP Business Dvlp. of Boston Biomedica, Inc., 508-580-1900, or fax, 508-580-1110

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