SUNNYVALE, Calif., Oct. 7 /PRNewswire/ -- Biocircuits Corporation
(Nasdaq: BIOC) announced today that it has entered into agreements with
investors to raise approximately $5.8 million in a private placement
consisting of common stock and warrants.  If the warrants are exercised, the
Company would receive up to an additional $3.3 million.
    The financing will close upon the effectiveness of the resale registration
statement to be filed in connection with these shares.  The warrants expire in
one year and may be called by the Company in the second half of that year if
the Company's stock price is at least $5.25 per share.  Pacific Growth
Equities acted as placement agent on the financing.
    "We are pleased to have received the funding commitments," stated John
Kaiser, President and Chief Executive Officer of Biocircuits.  "We plan to use
the proceeds from this financing to fund operations, expand the number of
assays in product development and increase the size of our sales force."
    In March 1996, Biocircuits began selling its IOS immunodiagnostic system
and initial tests in the United States.  The IOS system incorporates a
low-cost, compact instrument and patented, disposable test cartridges and is
the first cost-effective, easy-to-use immunodiagnostic system available for
use in the physicians' office and other point-of-care sites.  The initial
tests for IOS were a combined T4 and T Uptake assay to assess thyroid
function.  In April 1996, the Company filed a 510(k) pre-market notification
with the United States Food and Drug Administration ("FDA") for a Thyroid
Stimulating Hormone ("TSH") assay.  In September 1996, the Company announced
FDA clearance to market a qualitative serum pregnancy assay, a test designed
to allow physicians to perform this common pregnancy test in their office
during the patient visit where they can provide more immediate pre-natal care
to patients.  The Company is in the process of developing an improved second
generation cartridge for the new assays as well as existing assays.  The
Company currently expects the improved cartridge to be available in the fourth
quarter, at which time it plans to launch the serum pregnancy assay and, upon
receipt of FDA clearance, the TSH assay.  Also in September 1996, the Company
filed a 510(k) pre-market notification with the FDA for a quantitative hCG
assay, a test to track the progress of early pregnancies.
    Biocircuits is currently developing three additional assays: a PSA test
for management of prostate cancer patients, a Digoxin test for monitoring the
therapeutic usage of this drug in the treatment of heart disease and a Free T4
test for diagnosing true clinical thyroid status.  The Company plans to
continue to develop additional immunodiagnostic assays commonly requested by
office-based physicians.
    Biocircuits is targeting the approximately 41,000 small- to medium-sized
physician office practices and free-standing alternate site laboratories which

are licensed under CLIA for high or moderate complexity testing.  Most of
these sites do not currently have an immunodiagnostic testing capability.  The
IOS system is approved for moderately complex testing.
    Biocircuits Corporation, based in Sunnyvale, California, is focused on the
development and commercialization of innovative and cost-effective
immunodiagnostic products.
    Actual results may differ materially from the above forward-looking
statements due to a number of important factors, and will be dependent upon
the timely development of the second generation cartridge, the timely
development and regulatory approval of additional products, as well as the
Company's ability, directly or through third parties, to successfully
manufacture and market its existing and proposed products.  These factors are
more fully discussed in the Company's most recent Forms 10-K and 10-Q.

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