SUNNYVALE, Calif., Jan. 28 /PRNewswire/ -- Biocircuits Corporation
(Nasdaq: BIOC) announced today its financial results for the fourth quarter
ended December 31, 1997.  The company reported a net loss of approximately
$1.3 million, or $0.07 per share compared to a net loss of $3.6 million, or
$0.49 per share recorded in the fourth quarter of 1996.  The fourth quarter
results also compare favorably to the first, second and third quarters of 1997
when losses of $3.5 million or $0.41 per share, $2.3 million or $0.23 per
share and $1.9 million or $0.11 per share, respectively, were reported.
    "In the fourth quarter, our revenues of $1,154,000 include shipments to
distributors through mid-November when Becton Dickinson assumed the sales and
marketing responsibilities for the IOS(TM) system.  In November and December
our revenues include initial shipments of product to Becton Dickinson as well
as the $750,000 one time signing fee received from Becton Dickinson upon the
completion of the marketing and manufacturing agreement," said John Kaiser,
President and CEO.
    Biocircuits' IOS system is the first easy to use and economical system for
performing immunoassays in the physician's office. Although approximately
36,000 sites currently have the requisite moderate complex license for
performing such tests, most send the testing out to large laboratories since
an appropriate system performing such tests has not been available.
Currently, four cartridges are available for use on the system, a T4/T Uptake
combination, TSH, T4/TSH combination and Quantitative hCG.  In addition, a PSA
cartridge, a Free T4 cartridge and a Digoxin cartridge are currently all in
various stages of clinical evaluation.
    Actual results may differ materially from the above forward-looking
statements due to a number of important factors, and will be dependent upon
Becton Dickinson successfully manufacturing the IOS instrument and marketing
the existing and proposed products, as well as the timely development and
regulatory approval of additional products by Biocircuits.  These factors are
more fully discussed in the Company's most recent reports on Form 10-K and the
Company's resale Registration Statement No. 333-26079.

                           STATEMENTS OF OPERATIONS
                     (in thousands except per share data)

                                 Three Months Ended     Twelve Months Ended
                                      December 31,            December 31,
                                  1997           1996       1997       1996
                                     (unaudited)

    Revenues
    Product sales                $ 1,154      $  215      $ 1,750    $  421
    Operating costs and expenses
      Cost of sales                  948         719        3,069     2,310
      Research and development       851       1,502        4,152     7,081
      Sales, general
       and administrative            660       1,557        3,670     5,416
                                   2,459       3,778       10,891    14,807
    Loss from operations         (1,305)     (3,563)      (9,141)  (14,386)
    Other income and expense          35           6          134        38
    Net loss                   $ (1,270)   $ (3,557)    $ (9,007) $(14,348)
    Deemed Dividend on
     preferred stock                  --          --           --   (1,180)
    Net loss after
     deemed dividend                  --          --     $(9,007)$ (15,528)
    Basic and diluted
     net loss per share         $ (0.07)    $ (0.49)     $ (0.68)  $ (2.71)
    Basic and diluted net
     loss per share to
     common stockholders              --          --     $ (0.68)  $ (2.93)
    Shares used in
     computing net
     loss per share               17,412       7,237       13,317     5,299
    Pro forma net
     loss per share             $ (0.06)    $ (0.34)     $ (0.55)   $(1.66)
    Shares used in
     computing pro forma
    net loss per share(A)         20,254      10,352       16,264     8,620

    (A)Including outstanding convertible preferred stock on an if converted
basis.

                           BIOCIRCUITS CORPORATION
                           CONDENSED BALANCE SHEETS
                                (in thousands)

                                        December 31,         December 31,
                                            1997                  1996

    Assets
    Current assets:
      Cash, cash equivalents
       and short-term
       investments                         $ 1,421             $ 4,944
      Other current assets                   2,150               1,987
        Total current assets                 3,571               6,931
    Property and equipment, net              1,208               1,375
    Restricted cash                            263                 376
    Other assets                                39                  44
                                           $ 5,081             $ 8,726

    Liabilities and
     stockholders' equity
    Current liabilities                       $728              $1,576
    Long-term obligations                       21                  72
        Total liabilities                      749               1,648
    Stockholders' equity                     4,332               7,078
                                           $ 5,081              $8,726

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