SUNNYVALE, Calif., July 23 /PRNewswire/ -- Biocircuits Corporation
(Nasdaq: BIOC) announced today its financial results for the second quarter
ended June 30, 1997.  The company reported a net loss of approximately
$2.3 million, or $0.23 per share compared to a net loss of $3.7 million, or
$0.80 per share recorded in the second quarter of 1996.  The second quarter
results also compare favorably to the first quarter 1997 when a loss of
$3.5 million or $0.41 per share was reported.
    "The $1.4 million reduction in losses is a direct result of the actions
taken in April to reduce the burn rate," stated John Kaiser, President and
CEO.  Mr. Kaiser further stated that, "While placements of IOS(R) units in end
user sites during the second quarter did not meet the criteria for the second
tranche of the April financing, placements were approximately three times the
first quarter placements and the installed base of IOS systems has more than
doubled since the first of the year.  Placement of units in end users
substantially exceeded purchases by distributors, reducing distributor
inventory to a level well below first quarter levels."
    Mr. Kaiser also stated that, "The improvement in end user placements and
the previously announced signing of the non-binding letter of intent with
Becton Dickinson allowed the Company to successfully close a $5.1 million
financing to replace the funds that the Company would have received in the
second tranche of the April financing."

                           BIOCIRCUITS CORPORATION
                        (a development stage company)

                           STATEMENTS OF OPERATIONS
                     (in thousands except per share data)
                                 (unaudited)

                                        Three Months Ended    Six Months Ended
                                             June 30              June 30
                                         1997      1996       1997       1996
    Revenues
      Product sales                     $205      $111       $438       $156
    Operating costs and expenses
      Cost of sales                      583       742      1,617      1,049
      Research and development         1,027     1,662      2,507      4,015
      Sales, general and
       administrative                    921     1,430      2,237      2,680
                                       2,531     3,834      6,361      7,744
    Loss from operations              (2,326)   (3,723)    (5,923)    (7,588)
    Other income and expense              14        22         62         25
    Net loss                         $(2,312)  $(3,701)   $(5,861)   $(7,563)
    Net loss per share                $(0.23)   $(0.80)    $(0.63)    $(1.77)
    Shares used in computing net
     loss per share                   10,048     4,626      9,320      4,264
    Pro forma net loss per share      $(0.18)   $(0.45)    $(0.47)    $(0.97)
    Shares used in computing
     pro forma net loss per
     share (A)                        12,985     8,249     12,345      7,758

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

                           BIOCIRCUITS CORPORATION
                        (a development stage company)

                           CONDENSED BALANCE SHEETS
                                (in thousands)
                                 (unaudited)

                                            June 30,        December 31,
                                              1997              1996

    Assets
    Current assets:
    Cash, cash equivalents and
     short-term investments                  $ 87              $4,944
    Other current assets                    2,312               1,987
        Total current assets                2,399               6,931
    Property and equipment, net             1,349               1,375
    Restricted cash                           255                 376
    Other assets                               52                  44
                                           $4,055              $8,726
    Liabilities and stockholders' equity
    Current liabilities                    $1,258              $1,576
    Long-term obligations                      --                  72
        Total liabilities                   1,258               1,648
    Stockholders' equity                    2,797               7,078
                                           $4,055              $8,726

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