SUNNYVALE, Calif., Oct. 27 /PRNewswire/ -- Biocircuits Corporation
(Nasdaq: BIOC) announced today its financial results for the third quarter
ended September 30, 1997.  The company reported a net loss of approximately
$1.9 million, or $0.11 per share compared to a net loss of $3.2 million, or
$0.60 per share recorded in the third quarter of 1996.  The third quarter
results also compare favorably to the first and second quarters of 1997 when
losses of $3.5 million or $0.41 per share and $2.3 million or $0.23 per share,
respectively, were reported.
    "We continue to see a reduction in losses resulting from our actions taken
in April," stated John Kaiser, President and CEO.  Mr. Kaiser further stated
that, "Sales of IOS(TM) instruments to distributors in the third quarter were
disappointing as we continued to reduce inventories at distributors in
anticipation of the implementation of the Becton Dickinson marketing
agreement."
    "In addition," Mr. Kaiser continued, "after announcing the letter of
intent with Becton Dickinson in late June, third quarter placements of IOS
instruments in physicians' offices and sales to distributors were impacted due
to uncertainty of how this agreement would affect physicians, our distributors
and our internal sales staff."
    Mr. Kaiser also stated that, "Though the third quarter results were not up
to expectations, we are pleased with the momentum currently building with the
completion of the Becton Dickinson agreement announced today, along with the
market introduction of the Quantitative hCG test which was announced last
week."
    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)
                                 (unaudited)


                                  Three Months Ended    Nine Months Ended
                                     September 30,         September 30,
                                     1997      1996      1997        1996
    Revenues
      Product sales               $   157    $   50       $596       $206
    Operating costs and expenses
      Cost of sales                   504       542      2,121      1,591
      Research and development        794     1,564      3,301      5,579
      Sales, general and
       administrative                 773     1,179      3,010      3,859
                                    2,071     3,285      8,432     11,029

    Loss from operations           (1,914)   (3,235)    (7,836)   (10,823)
    Other income and expense           36         7         98         32
    Net loss                      $(1,878)  $(3,228)   $(7,738)  $(10,791)
    Net loss per share            $ (0.11)    (0.60)   $ (0.65)  $  (2.32)
    Shares used in computing net
     loss per share                17,218     5,424     11,952      4,650
    Pro forma net loss per share  $ (0.09)  $ (0.37)   $ (0.52)     (1.34)
    Shares used in computing
     pro forma net loss
     per share (a)                  20,111    8,610     14,934      8,042

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

                           BIOCIRCUITS CORPORATION
                        (a development stage company)

                           CONDENSED BALANCE SHEETS
                                (in thousands)
                                 (unaudited)

                                        September 30,    December 31,
                                            1997             1996
    Assets
    Current assets:
      Cash, cash equivalents and
       short-term investments            $ 2,632           $ 4,944
      Other current assets                 2,089             1,987
        Total current assets               4,721             6,931
    Property and equipment, net            1,323             1,375
    Restricted cash                          263               376
    Other assets                              42                44
                                         $ 6,349           $ 8,726
    Liabilities and stockholders'
     equity
    Current liabilities                  $   686           $ 1,576
    Long-term obligations                     --                72
      Total liabilities                      686             1,648
    Stockholders' equity                   5,663             7,078
                                         $ 6,349           $ 8,726

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