SUNNYVALE, Calif., Oct. 23 /PRNewswire/ -- Biocircuits Corporation
(Nasdaq: BIOC) today announced that it has received gross proceeds of
$5.8 million upon the completion of its private placement, which had been
contingent upon the effectiveness of the resale registration statement filed
with the Securities and Exchange Commission (the "Resale Registration
Statement").
    The financing consisted of common stock and warrants.  If the warrants are
exercised, the Company would receive up to an additional $3.3 million.
Pacific Growth Equities acted as placement agent on the financing.
    "We are grateful to our investors for their support," stated John Kaiser,
President and Chief Executive Officer of Biocircuits.  "We will use these
funds to move forward with the further building of our IOS(TM) business."
    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, after which it plans to launch TSH assay (once FDA clearance has been
received) and the serum pregnancy 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, including the TSH
assay, 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 and the Resale Registration Statement.

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