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Boston Biomedica Announces Second Quarter Financial Results

     Strong Rebound in Revenue and Significant Decreases in Operating and
                       Net Losses Over Q1 2000 Reported

WEST BRIDGEWATER, Mass., July 27 /PRNewswire/ -- Boston Biomedica, Inc. (Nasdaq: BBII) today announced that revenue for the second quarter ended June 30, 2000 was $7,754,009, an increase of $615,352 or 8.6 percent, compared with revenue of $7,138,657 for the same period in 1999. Net loss for the quarter was $291,524, or $(0.05) per diluted share, compared with a net loss of $224,935, or $(0.05) per diluted share, for the same period last year. Revenue for the first half of fiscal year 2000 was $14,584,721, an increase of $600,899 or 4.3%, compared with revenue of $13,983,822 for the same period in 1999. Net loss for the six months ended June 30, 2000 was $962,759, or $(0.18) per diluted share, compared with a net loss of $462,180, or $(0.10) per diluted share, for the same period last year.

When compared to Q12000, second quarter results showed a revenue increase of $923,296 or 13.5%, a decrease in operating loss of $629,904 or 70.8%, and a decrease in net loss of $379,710 or 56.6%.

"We are pleased with the results of the quarter, as they compare favorably to the results of the same quarter last year," remarked Kevin Quinlan, President and Chief Operating Officer. "In addition, we are very encouraged with the strong rebound in revenue and decreases in operating and net losses, as well as the significant increase in the profitability of our BBI Diagnostics, BBI Clinical Laboratories, and BBI Biotech business units, as compared to this year's first quarter results. This increase was primarily driven by improved OEM quality control panel and Basematrix sales, continued record sales in our Accurun control product line, and growth in our repository services. Further, as has been the case for the past several years, we used the profits from these three business units to help support the continuing turnaround of BBI Source Scientific, as well as in our exciting PCT and drug discovery R&D programs."

"In addition to the strong financial results reported for the second quarter, we are also pleased with the progress made in our Panacos and PCT programs," commented Richard T. Schumacher, Founder, CEO, and Chairman of BBI. "During the past few months, our scientists and collaborators have generated important data in both research programs, data we believe will help us find the financial and technical partners to help move these exciting technologies further along the value curve, and ultimately to commercialization. We also remain committed to returning BBI to profitability, and the second quarter financial results are a significant step in that direction."

Boston Biomedica, Inc. provides products and services for the detection and treatment of infectious diseases (ID) such as AIDS, Lyme Disease, and Viral Hepatitis. The Company has four business units: (1) BBI Diagnostics, an ISO 9001 certified manufacturer and seller of quality control and other diagnostic products used to increase the accuracy of in-vitro diagnostic tests, (2) BBI Clinical Laboratories, a leading specialty infectious diseases testing laboratory, (3) BBI Biotech Research Laboratories, providing R&D support for the other BBI business units as well as contract research services for third parties, and (4) BBI Source Scientific, an ISO 9001 certified manufacturer of laboratory and diagnostic instrumentation. In addition, the Company is pursuing research and development programs in the areas of Pressure Cycling Technology (PCT) and drug discovery through its subsidiaries BBI BioSeq and Panacos Pharmaceuticals, respectively, with the goal of introducing new solutions for the detection and treatment of infectious diseases.

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 due to unforeseen technical and other difficulties Boston Biomedica may not be able to successfully establish Panacos Pharmaceuticals as an independent Company or develop pressure cycling technology (PCT) into commercially successful products or that these and other such research and development activities may take longer than currently expected. Also, the financial results for the second quarter ended June 30, 2000 are not necessarily indicative of future results, the market for quality control and other diagnostic products for infectious disease tests may not continue to increase which would have an adverse impact on the Company's revenues, and future revenue may not meet expectations due to changes in customer needs and technological innovations. There can be no assurance that the Company will return to profitability in the near future. 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 year ended December 31, 1999 and on Form 10-Q for the period ended March 31, 2000. Copies of these documents 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           Six Months Ended
                                 June 30,                      June 30,
                              2000          1999         2000          1999
    REVENUE:
     Product sales      $3,539,861    $3,491,323   $6,136,942    $6,947,525
     Services            4,214,148     3,647,334    8,447,779     7,036,297
      Total revenue      7,754,009     7,138,657   14,584,721    13,983,822

    COSTS AND EXPENSES:
     Cost of product
      sales              1,723,736     1,822,537    3,018,033     3,631,184

     Cost of services    3,191,619     2,641,555    6,522,031     5,111,652

     Research and
      development          730,162       728,452    1,492,854     1,491,061

     Acquired research
      and development            -             -            -             -

    Selling and
     marketing           1,031,064     1,102,546    1,952,713     2,107,817

    General and
     administrative      1,336,676     1,116,975    2,747,491     2,211,665

    Total operating costs
     and expenses        8,013,257     7,412,065   15,733,122    14,553,379

    Loss from operations (259,248)     (273,408)  (1,148,401)     (569,557)

    Interest income          (526)           159        (104)           855

    Interest expense     (210,428)      (89,549)    (404,334)     (176,748)

    Loss before income
     taxes               (470,202)     (362,798)  (1,552,839)     (745,450)

    Benefit from income
     taxes                 178,678       137,863      590,080       283,270

    Net loss            $(291,524)    $(224,935)   $(962,759)    $(462,180)

    Net loss per share,
     basic                 $(0.05)       $(0.05)      $(0.18)       $(0.10)

    Net loss per share,
     diluted               $(0.05)       $(0.05)      $(0.18)       $(0.10)

    Number of shares used to calculate net loss per share

    Basic                5,556,628     4,743,870    5,315,026     4,680,915

    Diluted              5,556,628     4,743,870    5,315,026     4,680,915

                     CONSOLIDATED SUMMARY BALANCE SHEETS

                                                    June 30,   December 31,
                                                        1999           1999

    Current assets                               $15,369,267    $14,958,300
    Property, plant and equipment, net             8,520,947      8,295,024
    Other non-current assets                       2,621,168      2,909,016
      Total assets                               $26,511,382    $26,162,340

    Current liabilities                          $10,485,218     $4,904,976
    Long-term debt                                 2,541,104      7,145,651
    Other long-term liabilities                      146,046        465,590
      Total liabilities                           13,172,368     12,516,217

    Stockholders' equity                          13,339,014     13,646,123
      Total liabilities and
       stockholders' equity                      $26,511,382    $26,162,340

SOURCE Boston Biomedica, Inc.
Web site: http: //www.bbii.com
CONTACT: Richard T. Schumacher, CEO & Chairman, or Kevin W. Quinlan, President & COO, or William R. Prather, M.D., Sr. VP Finance & Business Dvlp., all of Boston Biomedica, Inc., 508-580-1900

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