SECURITIES AND EXCHANGE COMMISSION
                     WASHINGTON, D.C. 20549

                            FORM 10-K

          Annual Report Pursuant to Section 13 or 15(d)
             of the Securities Exchange Act of 1934

  For the Fiscal Year Ended 12/31/99  Commission File Number   0-10822

                   Biocontrol Technology, Inc.
     (Exact name of registrant as specified in its charter)

               Pennsylvania                     25-1229323
     (State or other jurisdiction of         (I.R.S. Employer
       incorporation or organization)         Identification Number)

   2275 Swallow Hill Road, Bldg. 2500, Pittsburgh, Pennsylvania    15220
   (Address of principal executive offices)                    (Zip Code)

     Registrant's telephone number, including area code (412) 349-1811

     Securities registered pursuant to Section 12(b) of the Act:  None

       Securities registered pursuant to Section 12(g) of the Act:
                  Common Stock, $.10 par value

Indicate  by check mark whether the registrant (1) has filed  all
reports  required  to be filed by Section  13  or  15(d)  of  the
Securities  Exchange Act of 1934 during the preceding  12  months
and (2) has been subject to such filing requirements for the past
90 days.   Yes   X       No  ___

Indicate  by  check  mark  if  disclosure  of  delinquent  filers
pursuant  to Item 405 of Regulation S-K is not contained  herein,
and will not be contained, to the best of registrant's knowledge,
in  definitive  proxy or information statements  incorporated  by
reference in Part III of this Form 10-K, or any amendment to this
Form 10-K. [ ]

The   aggregate  market  value  of  the  voting  stock  held   by
nonaffiliates of the registrant as of March 20, 2000:

Common Stock, $.10 par value --$431,376,370

As  of December 31, 1999, 956,100,496 shares of common stock, par
value $.10 per share, were outstanding.

As  of  December 31, 1999, 72,000 shares of preferred stock,  par
value $10 per share, were outstanding.

           Exhibit index is located on pages 32 to 33

Item 1.  Business

General Development of Business

Biocontrol  Technology, Inc. was incorporated in the Commonwealth
of  Pennsylvania in 1972 as Coratomic, Inc. and  is  referred  to
herein  as  "BICO"  or  the  "Company".   BICO's  operations  are
currently  located  at  625 Kolter Drive, Indiana,  PA,  and  its
administrative  offices are located at 2275  Swallow  Hill  Road,
Bldg.  2500,  Pittsburgh,  PA.  The  Company  is  developing  the
Noninvasive Glucose Sensor with Diasensor.com, Inc., its 52% owed
subsidiary.   Where  applicable, BICO and Diasensor.com  will  be
referred to herein as the "Companies".

The  primary  business of the Company is the development  of  new
devices which include models of a noninvasive glucose sensor (the
"Noninvasive  Glucose  Sensor"), an  implantable  port  for  drug
delivery  and  hemodialysis use, a polyurethane  heart  valve,  a
device designed to use whole-body extracorporeal hyperthermia  in
the  treatment  of  cancer and the human  immunodeficiency  virus
("HIV"),   and   bioremediation  products.   (See   "Management's
Discussion and Analysis").

Forward-Looking Statements

From  time  to  time,  the  Company may  publish  forward-looking
statements  relating  to  such matters as  anticipated  financial
performance, business prospects, technological developments,  new
products,  research  and development activities,  the  regulatory
approval  process,  specifically  in  connection  with  the   FDA
marketing  approval  process, and similar matters.   The  Private
Securities  Litigation Reform Act of 1995 provides a safe  harbor
for  forward-looking statements.  In order  to  comply  with  the
terms  of  the safe harbor, the Company notes that a  variety  of
factors  could  cause  the  Company's actual  results  to  differ
materially  from  the anticipated results or  other  expectations
expressed in the Company's forward-looking statements.  The risks
and  uncertainties  that may affect the operations,  performance,
research  and  development and results of the Company's  business
include   the  following:  additional  delays  in  the  research,
development and FDA marketing approval of the Noninvasive Glucose
Sensor;  delays in the manufacture or marketing of the  Company's
other  products and medical devices; the Company's future capital
needs   and   the  uncertainty  of  additional  funding;   BICO's
uncertainty of additional funding; competition and the risk  that
the  Noninvasive Glucose Sensor or its other products may  become
obsolete;  the Company's continued operating losses, negative net
worth   and   uncertainty  of  future  profitability;   potential
conflicts  of  interest; the status and  risk  to  the  Company's
patents,  trademarks and licenses; the uncertainty of third-party
payor reimbursement for the Sensor and other medical devices  and
the   general  uncertainty  of  the  health  care  industry;  the
Company's  limited sales, marketing and manufacturing experience;
the  amount of time or funds required to complete or continue any
of the Company's various products or projects; the attraction and
retention  of  key employees; the risk of product liability;  the
uncertain  outcome  and  consequences  of  the  lawsuits  pending
against  the  Company; the ability of the Company to  maintain  a
national  listing for its common stock; and the dilution  of  the
Company's common stock.

Description of Business

Development of the Noninvasive Glucose Sensor

BICO  and  Diasensor.com have completed the  development  of  the
first  commercial Noninvasive Glucose Sensor, which  is  able  to
measure  the  concentration of glucose in  human  tissue  without
requiring  the  drawing  of blood.  Currently  available  glucose
sensors require the drawing of blood by means of a finger prick.

BICO's initial research and development with insulin pumps led to
a  theory  by  which  blood  glucose  levels  could  be  detected
noninvasively   by  correlating  the  spectral   description   of
reflected electromagnetic energy from the skin with blood glucose
levels  in the 50 mg per deciliter to 500 mg per deciliter  range
in  the  infrared  region of the electromagnetic  spectrum.   The
method  was  studied in 1986 and 1987 by BICO and its consultants
at   Battelle   Memorial  Institute  in  Columbus,  Ohio,   using
laboratory  instruments.   The results of  the  studies  provided
information   regarding  the  use  of  infrared  light   in   the
noninvasive  measurement of glucose.  The  information  from  the
studies,  along  with later affirmative work,  led  to  a  patent
application  by BICO's research team in 1990.  A patent  covering
the  method was granted to the research team and assigned to BICO
in  December  1991.  The rights of this patent were purchased  by
Diasensor.com  from BICO, pursuant to a Purchase Agreement  (See,
"Intercompany  Agreements").   A second  patent  application  was
filed  by BICO in December 1992, and was granted in January 1995.
This filing contained new claims, which extended the coverage  of
the  patent  based  on additional discoveries and  data  obtained
since  the  original  patent was filed.  BICO  has  assigned  the
rights to such patent to Diasensor.com.   Additional concepts  to
improve  the  capability  of the instrument  to  recognize  blood
glucose  were  developed, and, in May 1993, corresponding  patent
applications were filed.  As of November 1999, a total  of  seven
patents  have  been  issued, with additional patent  applications
pending  (See, "Current Status of the Noninvasive Glucose Sensor"
and  "Patents, Trademarks and Licenses").  BICO has been  granted
the  right  to  develop  and  manufacture  sensors  pursuant   to
agreements with Diasensor.com (See, "Intercompany Agreements").

BICO's  research  team advanced its technology base  through  the
development of several research prototypes, which were tested  in
human clinical trials.  In a trial conducted by BICO on 110 human
subjects  in  March 1992, spectral, blood and chemical  data  was
recorded  for analysis in order to develop calibration  data  for
the  Sensor.   A second trial on 40 human subjects in  July  1992
indicated  that the device did not have a satisfactory signal-to-
noise  ratio  to  allow  for  the calculation  of  algorithms  of
sufficient accuracy to be acceptable for patient use.  Signal-to-
noise ratio is determined by the relationship of the signal  (the
glucose  level)  and  the  noise (random  interferences).   Other
trials were conducted at several testing sites under the guidance
of  the sites' Institutional Review Board using prototypes, which
addressed  the  signal -to-noise problem.  These prototypes  were
designed and constructed to simulate production models.

On   January   6,   1994,  BICO  submitted  its  initial   501(k)
Notification to the Food and Drug Administration (the "FDA")  for
approval to market the production model, the Diasensorr1000.  The
submission was based on data obtained from the advanced  research
prototypes,  since management believed that the production  model
would be identical to the advanced prototypes.  In February 1996,
the  FDA  convened  a panel of advisors to make a  recommendation
regarding BICO's 510(k) Notification.  The majority of the  panel
members  recommended  that BICO conduct  additional  testing  and
clinical  trials  of a production model prior  to  marketing  the
Diasensor  1000.   BICO  and Diasensor.com  announced  that  they
remained  committed to bringing the Diasensor 1000 to  diabetics,
and  that  additional  research, development  and  testing  would
continue  (See,  "Current  Status  of  the  Noninvasive   Glucose
Sensor").

Due  to  continued delays in the FDA approval process, and  while
continuing to work with the FDA and conduct its mandated testing,
the  Companies  turned  their focus  to  other  markets  for  the
Diasensor 1000 besides the U.S.

In  1998,  BICO, as designer and manufacturer of the device,  was
awarded  ISO certification by TUV Rheinland, a company authorized
to  conduct  such  audits,  which was  contracted  to  perform  a
"conformity  assessment"  of BICO's  quality  system.   BICO  was
awarded  International  Organization for Standardization  ("ISO")
Certification to the 9001 standard, evidencing that BICO  has  in
place  a  total  quality system for the design,  development  and
manufacture  of  its  products.  BICO also  was  awarded  EN46001
Certification, indicating it meets European standards for medical
devices.   Once  the ISO 9001 certification was approved,  and  a
technical  file was submitted and approved by TUV, BICO  received
approval  to  apply  a  CE  mark to  the  device.  Much  like  an
Underwriters Laboratory "UL" mark, the CE mark is provided by the
regulatory  bodies of the European Community,  or  by  authorized
private  bodies,  such  as TUV Rheinland, to  indicate  that  the
device  adheres to "quality systems" of the ISO and the  European
Committee for Standardization.  The CE mark permits the Companies
to sell the Diasensor and other medical products in Europe.

With regard to marketing the device within the United States, the
Companies  continued to work with the FDA to obtain approval.   A
revised  510(k) Notification was submitted in October  1996,  and
was  followed by continued discussions with the FDA.  During 1997
and  1998,  the  Company  continued to meet  with  the  FDA,  and
established a protocol for in-home testing of the Diasensor 1000.
Due  to the Company's cash flow problems during 1998, testing did
not proceed at the pace originally anticipated, and completion of
the testing was delayed.

BICO  continued  various  aspects of the  Diasensor  development,
resulting  upon a method by which the readings generated  by  the
machine could be transmitted via modem to the patient's clinic or
physician.   Following an in-depth marketing study,  the  Company
determined  that  the  machines with  this  capability  are  more
attractive  to  the  patient, since there is the  possibility  of
selling  a  telemedicine service which includes the machine,  the
patient,  and  his or her physician.  The model of the  Diasensor
has  been named the Diasensor 2000 to differentiate between  this
model  and  the earlier model.  Upon the advice of the FDA,  BICO
determined that it was in the Companies' best interest to  submit
a  PreMarket  Approval Application ("PMA")  to  the  FDA  seeking
marketing  approval  for the Diasensor 2000.   In  1999  the  FDA
implemented a new PMA system wherein individual modules of a  PMA
submission  could be made as they were ready.  In May 1999,  BICO
submitted  the first module, which covered manufacturing  methods
and procedures for the Diasensor 2000.  The FDA requested further
information  that  will be submitted in future  modules.   Future
modules  will  include  non-clinical  testing,  such  as  product
validation and safety testing, and human clinical trial data.

The  Diasensor  is a spectrophotometer capable of illuminating  a
small  area  of skin on a patient's arm with infrared light,  and
then  making  measurements  from  the  infrared  light  diffusely
reflected  back  into the device, which it  then  displays  on  a
liquid crystal display on the face of the instrument for the user
to  read.  The Diasensor uses internal algorithms to calculate  a
glucose measurement.

Since  the  Diasensor  will  be  calibrated  individually,   each
instrument  will  be  sold  by  prescription  only  and  will  be
calibrated  in  the patient's home.  This feature may  limit  the
marketability of the Diasensor, and if the device  is  unable  to
qualify  for third-party reimbursement, the Company's ability  to
market the device could be adversely effected.

Current Status of the Noninvasive Glucose Sensor

Hampered  by the Companies' cash flow problems, progress  on  the
Sensor   project  was  slowed  during  1998.  Once  funds  became
available,  the  Company allocated resources  to  re-establishing
active  dialog with the FDA.  To further that effort, the Company
has engaged Joslin Diabetes Center to design and conduct clinical
trials, which are necessary to obtain FDA approval.

In  addition to the agreement with Joslin, the Company took other
significant  steps  toward FDA approval.  In  February  1999  the
Company submitted a PMA shell to the FDA for the Diasensor.   The
PMA  shell  is  part  of  a relatively new FDA  procedure,  which
divides  submissions  into modules.  These  modules,  which  were
designed to facilitate and expedite FDA review, contain different
pieces  of the full PMA submission.  However, from both  its  own
experience and by observing other module submissions, the Company
does  not believe that the FDA intends to "approve" the  PMA  one
module at a time.  Rather, the Company has had meetings with  the
FDA,  including  an October meeting, where requirements  for  the
"next step" in the process have been discussed without a specific
FDA finding on prior submissions.

The  Company  is also developing a Telemedicine program  for  use
with  the  Diasensor.   This program would involve the use  of  a
Diasensor, along with an internet software program.  Each reading
on  the Diasensor would be automatically stored for transmission,
via the internet, to a location, which would analyze the data and
transmit  it to the patient's physician.  This use of  historical
readings  is  critical  in the patient's analysis  of  trends  in
glucose  levels,  an  important tool in  both  the  treatment  of
diabetes and the use of insulin.  The Company believes that  this
Telemedicine program, which would involve a monthly fee  for  the
use  of the device and the service, rather than a purchase of the
device,  will make the Diasensor technology available  to  larger
numbers of diabetics.

As  with  all other FDA-related activities, the Companies  cannot
provide any assurances as to the date upon which the studies will
be  completed,  the next module of the PMA will be submitted,  or
when the FDA will complete its review of such submission.

Although the Company's research and development team continues to
have  discussions  with  the FDA, due to the  complex,  technical
nature  of  the  information being evaluated by the  FDA,  it  is
impossible  for the Company to estimate how much longer  the  FDA
approval process will take.

FDA  approval is necessary to market the Diasensor in the  United
States.  In 1999, the Companies also focused additional effort on
the  European  market,  and  are  planning  to  send  devices  to
different  European  sites for clinical evaluation  in  order  to
encourage those markets to use the Diasensor.

Diasensor.com is responsible for the marketing and sales  of  the
Noninvasive  Glucose Sensor.  Diasensor.com plans to  market  the
Noninvasive Glucose Sensor and the Telemedicine program  directly
to  diabetics, through their doctors' orders.   The  Telemedicine
program will involve a monthly fee for the use of both the Sensor
and  the service.  Such prices may be set at levels, which  would
limit  its sales, absent third-party reimbursement.  Due  to  the
current  vicissitudes of the health-care insurance industry,  the
Companies  are  unable  to  make  any  projections  as   to   the
availability of, or procedures required in connection with, third-
party  reimbursement.  Although the Companies estimate, based  on
1999  American Diabetes Association data, that there  are  nearly
16,000,000 diabetics in the United States, not all diabetics will
be  suitable  users  of  the Noninvasive Glucose  Sensor.   Those
diabetics   who   require  and  benefit  from  frequent   glucose
monitoring  comprise  the potential market  for  the  Noninvasive
Glucose Sensor.  The Companies are unable to estimate the size of
that market at this time.

Extracorporeal Hyperthermia

In  January 2000, the Company announced it received FDA Clearance
to  market the ThermoChem-HT SystemT with intended use  to  raise
the  core  temperature  of the abdominal cavity  to  the  desired
temperature  in  the  41 C (105.8 F) to 42 C (107.6 F)  range  by
continuously  bathing  the  abdominal  cavity  with   circulating
sterile  solution.  In a surgical procedure all cancerous growths
are  surgically  removed from the patient's  abdomen  and  pelvis
while  all spaces and lining surfaces are opened, the abdomen  is
perfused  utilizing  the  ThermoChem-HT  System  with  a   heated
physiologic solution circulating for a two (2) hour period.

Since  1992,  IDT and HemoCleanse, Inc. an unaffiliated  company,
located  in  Lafayette, Indiana, have been engaged in a  project,
which  involves  the  use of a device as a  delivery  system  for
perfusion-induced  hyperthermia.  Perfusion induced  hyperthermia
is  the  elevation of the core temperature of either  a  regional
part  of  the body (PIRH-Perfusion Induced Regional hyperthermia)
or the entire body (PISH-Perfusion Induced Systemic Hyperthermia)
using an extracorporeal device.

HemoCleanse,  Inc., founded in 1989, designs,  manufacturers  and
markets  medical  devices and disposables for  the  treatment  of
blood outside the body.  The Company's unique technology is based
on  special chemical sorbents that selectively remove toxins from
the blood while balancing blood chemistries.

HemoCleanse's core product, the BioLogic-DTT, received  clearance
by the FDA in 1994 as a detoxifier for treatment of drug overdose
in  1996;  the BioLogic-DT received FDA (510K) clearance  for  an
active hepatic coma indication.

In 1993, IDT entered into a License Agreement with HemoCleanse to
develop the ThermoChem technology for delivering PISH.  Under the
License Agreement, IDT was granted worldwide rights to market the
ThermoChem technology and disposables for PISH.

In  1998,  the  License Agreement was amended  to  allow  IDT  to
manufacture the ThermoChem-HT System and related disposables  for
perfusion-induced hyperthermia and expand the field of  relevance
to the use of the ThermoChem technology to hypothermia.

The  ThermoChem technology is comprised of two separate  systems,
the ThermoChem-HT System the ThermoChem-SB System.

The  ThermoChem-HT System delivers perfusion induced systemic and
perfusion   induced  regional  hyperthermia.   The  ThermoChem-HT
System is comprised of several specialty-integrated devices  that
perform the following:

    Blood/Fluid Propulsion via roller pump with maximum flow
    rate of 2000 ccs per minute

    Water heating and cooling to control extracorporeal
    blood/fluid temperature up to maximum of 118.4 F

    Air bubble detection

    Roller pump occlusion detection

    Monitoring and recording temperatures up to seven sites

    Constant up-to-the minute information on status of patient
    treatment via video touch screen

    Data acquisition capabilities

The ThermoChem-SB SystemT is an accessory to the ThermoChem-HT
System and is used when delivering perfusion induced systemic
hyperthermia.

The  ThermoChem-SB  is an extracorporeal blood  treatment  system
that  circulates blood from the ThermoChem-HT, passes  through  a
cellulosic  plate  dialyzer, and returns it to the  ThermoChem-HT
circuit.  Within the dialyzer, diffusion causes many chemicals to
pass  from  the  blood into a sorbent suspension surrounding  the
membranes.   Depending  upon the binding characteristics  of  the
sorbents,  some  chemicals  remain a  low  concentration  in  the
dialysate (and are therefore efficiently removed from the blood),
and  others  reach  concentrations  similar  to  the  blood  (are
therefore  not  removed from the blood).   Inclusion  of  certain
chemicals  in  the sorbent suspension composition  can  partially
saturate  sorbent  binding  sites,  and  cause  return  of  those
chemicals to the blood during treatment.  The ThermoChem-SB  does
not  use  a roller pump to move blood, as the ThermoChem-HT,  but
rather  uses pressure changes in the sorbent side to  expand  and
compress the membrane packages, thus pulling and returning  blood
to   the  ThermoChem-HT  circuit.   The  sorbent  suspension   is
contained  within a bag in which all ultrafiltrate  is  captured;
the  weight  changes  of the entire machine  mirrors  the  weight
change  of  the patient.  By simple algorithms, the ThermoChem-SB
alters  blood  inflow and outflow cycle times to  increase  fluid
removal from the patient, or automatically reinfuse fluid to  the
patient  to  obtain  exactly the prescribed  weight  increase  or
decrease.

Perfusion-induced  systemic hyperthermia, a  form  of  whole-body
hyperthermia  achieved through the ThermoChem-HT System  involves
heating the patient's blood outside the body to approximately  48
degrees  centigrade  and  returning it back  to  the  body,  thus
raising  the  body's  core temperature to the  desired  treatment
temperature  up  to a maximum of 42.5 degrees centigrade.   Blood
passes  a  roller pump that send it onward to the heat  exchanger
where  indirect heating of the blood occurs, raising the  outside
blood  temperature  to  approximately 46 degrees  centigrade.   A
portion  of  the  blood  passes through  a  T-connection  to  the
ThermoChem-SB,  located  between the roller  pump  and  the  heat
exchanger,  where it is chemically balanced on a real-time  basis
and  then  returned to the blood flow path before it reaches  the
heat exchanger.  Continually circulating blood is returned to the
patient at 46 degrees centigrade, gradually raising the patient's
core body temperature to the desired treatment temperature, which
is measured by various temperature probes throughout the body.

Although  other entities have experimented with the use of  PISH,
one  significant  problem  has been  the  safe  delivery  of  the
procedure.  IDT believes that the improvements inherent to  their
ThermoChem technology increase the safety of the procedure.

As a result, IDT believes that they have taken a significant step
towards  the creation of a safe delivery system.  Although  there
can  be no assurances that the ThermoChem technology is safe  for
all  humans,  clinical  trials to date have  confirmed  that  the
humans  tested  were  able  to safely tolerate  PISH  at  a  core
temperature  of  42 degrees centigrade for two hours.   Based  in
part upon the safety results of its initial clinical results, the
FDA has approved additional clinical trials.

In  1998  IDT  began  developing protocols for  perfusion-induced
regional hyperthermia utilizing only the ThermoChem-HT system  on
procedures  that are already being performed as therapy  and  are
effective  for  treating certain types of  cancer;  however,  the
perfusion   setup  is  not  standardized.   The  first   protocol
developed involved intraperitoneal hyperthermia that resulted  in
FDA clearance of the ThermoChem-HT system in January 2000.  Other
protocols are under development to expand the intended use of the
ThermoChem-HT system.

         UNIVERSITY OF TEXAS MEDICAL BRANCH AT GALVESTON

Pre-clinical studies were conducted on six swine to assure safety
at  an  increased  flow rate and maintenance  of  a  higher  core
temperature  of  109.4 F for a period of two hours.   This  study
concluded that blood chemistries were normalized with the use  of
the ThermoChem technology.  In November 1996, we submitted an IDE
application  to  the  FDA  for a study utilizing  the  ThermoChem
technology  for  PISH for two hours at 108.4 F to treat  patients
with  metastatic non-small cell lung cancer.  This  protocol  was
developed  by  the  University of Texas in  Galveston.   The  FDA
responded in December 1996 with an approval to conduct a Phase  I
trial.   The  University  of  Texas' Institutional  Review  (IRB)
granted approval of this study in May 1997.

On  September  11,  1997, we entered into an agreement  with  the
University of Texas Medical Branch at Galveston (UTMB) to begin a
human  clinical trial in November 1997.  The trial  utilized  the
ThermoChem  technology  and  disposables  to  deliver  perfusion-
induced  systemic hyperthermia to treat patients with  metastatic
non-small cell lung cancer.  One of the objectives of this  Phase
I  trial was to evaluate the ThermoChem technology for the use in
the  treatment  of  metastatic non-small cell  lung  cancer  with
regard  to patient selection, tumor response, patient performance
status,  and patient survival.  The follow-up of the patients  is
patterned after the Southwest Oncology Group protocols, which are
considered state-of-the-art studies to follow response of  cancer
to  the  therapy.  The study is being conducted  at  the  General
Clinical  Research Center (GCRC) at UTMB, which is  supported  by
the  National Institute of Health (NIH).  This is the  only  PISH
study  for metastatic non-small cell lung cancer approved by  the
FDA.   Five patients with stage IV metastatic non-small cell lung
cancer received PISH treatment through June 1998.  An abstract of
the  results  of  the first five patients was  presented  by  the
principal  investigator  at the American Association  for  Cancer
Research at Philadelphia, Pennsylvania in March 1999.

In February 2000, the FDA and the necessary IRB at the University
of  Texas Medical Branch at Galveston approved continued clinical
trials using the ThermoChem-HT technology to treat patients  with
stage IIIb small cell lung cancer.

            WAKE FOREST UNIVERSITY SCHOOL OF MEDICINE

In May 1998, the FDA approved an Investigational Device Exemption
(IDE) to allow a human clinical trial utilizing the ThermoChem-HT
System  to study the effectiveness of the device for heating  and
maintaining core temperature of the peritoneal cavity in patients
with advance gastrointestinal and ovarian cancers.  The procedure
of  intraperitoneal hyperthermic chemotherapy has  been  done  at
Wake  Forest  School  of  Medicine since 1992  utilizing  a  non-
standardized perfusion setup.

The   ThermoChem-HT  System  heats  the  perfusion  solution  and
circulates it into and out of the peritoneal cavity.   Flow  from
the  patients  Outlet Catheter passes through a Roller  Pump  and
then   to  an  in-line,  disposable  Heat  Exchanger.   The  Heat
Exchanger  is  interfaced with heated water from a  heater/cooler
that   provides  regulated  temperature  control  to   the   Heat
Exchanger.  The disposable circuit includes an in-line  Reservoir
that  primes  the circuit and maintains adequate  fluid  volumes.
The  system monitors the inflow and outflow temperatures  of  the
circulating Perfusion Solutions.

The  Company  and  surgeons  at  Wake  Forest  believe  that  the
ThermoChem-HT  System can make the technique more effective  with
better  temperature monitoring and control.   This  procedure  is
offered as a standard-of-care treatment to patients with advanced
ovarian  and  gastrointestinal cancers at Wake Forest  University
Baptist Medical Center.

IDT's Medical and Scientific Advisory Board consists of the three
following  professionals.  Currently, none of the  board  members
receive  a  fee for serving on the board, but are reimbursed  for
expenses incurred.

Corklin  R.  Steinhart, M.D., Ph.D., is the medical  director  of
special immunology services at Mercy Hospital in Miami, Florida.
Milton  B.  Yatvin,  Ph.D., is a professor  in  the  Radiation  &
Thermal  Biology  Division, Department of Radiation  Oncology  at
Oregon Health Sciences University in Portland, Oregon.
Stephen R. Ash, M.D., F.A.C.P., is the Chairman of the Board  and
Director   of   Research  and  Development  of   HemoCleanse,   a
corporation located in West Lafayette, Indiana.
The  Company  has  expensed  approximately  $12,204,000  on  this
project  through December 31, 1999, which includes the  Company's
acquisition of HemoCleanse common stock, via a purchase of common
stock and the conversion of a loan into common stock.
Bioremediation

BICO  is  also  involved  in  the field  of  biological  remedial
("bioremediation")    development.   Bioremediation    technology
utilizes  naturally  occurring  microorganisms  or  bacteria   to
convert  various  types of contamination to  carbon  dioxide  and
water.   This  occurs through the dual processes of chemical  and
microbiological reactions.  The product, PRPr, which  stands  for
Petroleum  Remediation Product, is designed as  an  environmental
microbial  microcapsule, which is utilized  for  the  collection,
containment and separation of oil-type products in or from water.
The  product's  purpose is to convert the  contaminant,  with  no
residual mass (separated or absorbed) in need of disposal.   When
the  PRPr  comes  in contact with the petroleum  substances,  the
contaminants  are  bound  to  the PRPr,  and  they  stay  afloat.
Because   the  product  contains  the  necessary  nutrients   and
microorganisms,  the  bioremediation process begins  immediately,
which  limits  secondary contamination of the air or  surrounding
wildlife.   Eventually,  the product  will  biodegrade  both  the
petroleum and itself.

In  connection  with  this project, BICO  created  a  subsidiary,
Petrol  Rem,  Inc.  ("Petrol Rem").  Petrol  Rem's  officers  and
directors  include Anthony J. Feola and Fred E. Cooper,  who  are
also directors and/or officers of BICO and its other affiliates.

Part  of  Petrol Rem's initial research and development  involved
field testing supervised by the National Environmental Technology
Applications  Corporation ("NETAC"),  a  group  endorsed  by  the
Environmental Protection Agency (the "EPA"), to determine whether
the  product  is  effective.  As a result of such testing,  NETAC
reported  positive  results regarding the  effectiveness  of  the
product.

PRPr is now being manufactured and marketed for use in water  and
on  solid  surfaces  in the form of Petrol  Rem's  OIL  BUSTER  r
product,  which is used for small oil cleanups on  hard  surfaces
such  as  the  floors  of manufacturing facilities,  garages  and
machine shops, or as a container for heavy petroleum sludges.

The  product  is  listed on the EPA's National  Contingency  Plan
("NCP") Product Schedule, and is available in free-flowing powder
or  absorbent socks.  In 1995, the EPA required that all products
previously listed on the NCP be submitted to additional  testing.
Because  PRPr  successfully  passed the  Tier  II  efficacy  test
conducted  by NETAC, the product was requalified for  listing  on
the  NCP.   In  addition, PRP was one of only  fourteen  products
listed after the 1996 Alternative Response Tool Evaluation System
was implemented.

In  April 1993, Petrol Rem entered into a lease for a facility in
the  Pittsburgh, Pennsylvania area, which is used to  manufacture
PRPr.   The  current lease has a renewable three-year term,  with
monthly  rental payments of $2,888 plus utilities and  applicable
business   privilege  taxes.   Petrol  Rem  has  also   purchased
equipment, which has the capability to produce PRPr in quantities
of  2,500  pounds per day, and Petrol Rem has built  an  adequate
inventory.

Petrol  Rem  has  also  completed  development  of  a  new  spray
applicator  for  its  PRP  product.  The  new  applicator  is  a
lightweight, portable unit, which provides a more continuous flow
of  product.   The  lighter weight and smaller  size  will  allow
easier  access  to remote sites, which were impossible  to  reach
with the previous applicator.

In  addition  to  PRP,  Petrol  Rem  has  also  developed  other
products.  In order to address water pollution issues at marinas,
Petrol Rem has introduced BIO-SOK, which is PRP contained in  a
10"  fabric tube, is designed and used to aid in the cleaning  of
boat bilges.  Bilges are commonly cleaned out with detergents and
emulsifiers, which cause the oil pumped out of the bilge to  sink
to  the bottom of the water, where it is harmful to marine  life,
and  becomes difficult to collect. In addition, it is illegal  to
dump  oil  or fuel into the water.  The BIO-SOK, when placed  in
the  bilge,  absorbs and biodegrades the oil or fuel on  contact,
which significantly reduces or eliminates the pollution; then the
product biodegrades itself.  As a result, BIO-SOKr helps to  keep
waters clear.  In addition, BIO-SOK helps to eliminate the chore
of  bilge cleanup, and helps users such as boaters and marinas to
avoid fines for pumping oil and fuel into the waterways, which is
prohibited.  The U.S. Coast Guard is using the BIO-SOK in certain
regions  on  their vessels and maintains a sufficient  supply  to
provide continuing availability.

Petrol  Rem's  BIO-BOOM    product is  used  in  water  clean-up
projects.  The product is a 3" x 10' fabric tube which is  filled
with   PRP,   and  is  used  to  both  contain  and   biodegrade
contaminants in water.  BIO-BOOM  is a superior product to  most
containment products because, in addition to containing  the  oil
or fuel spill, or restricting the spread of an anticipated spill,
it also biodegrades the contaminant, and then biodegrades itself.
These features act to virtually eliminate secondary contaminants,
thereby reducing disposal and clean-up costs.  Initial sales have
occurred, and marketing efforts are accelerating.

Petrol  Rem  is  marketing PRP through trade  shows,  magazines,
direct  mail advertising, and direct contacts with companies  and
consultants  specializing  in  petroleum  clean-up,  as  well  as
marketing directly to municipalities and corporations with  needs
for the product.

During  1999,  Petrol  Rem focused efforts on  the  international
market,   and  entered  into  joint  venture  or  distributorship
agreements   for  Chile,  Brazil,  Uruguay,  Paraguay,   Bolivia,
Indonesia, Greece, Cyprus and Syria.  Although there  can  be  no
assurances  that PRP  will be successfully marketed, the  Company
believes,  based on their scientific determinations, the  results
of recent NETAC testing, and the favorable response at the retail
level,  that  PRP  will be a viable product in the bioremediation
marketplace.

The Company believes that it has expended the necessary funds  to
complete the development of its bioremediation products,  and  to
build  up  sufficient inventory pending additional  orders.   The
Company  has  spent  approximately $11,247,000  on  this  project
through December 31, 1999.

Other Projects

Implantable Technology

In  April  1996,  BICO  was granted FDA approval  to  market  its
theraPORTr Vascular Access System ("VAS").  The approval  was  in
connection  with  the  Company's  510(k)  Notification  filed  in
January  1996.  The device is comprised of a reservoir, which  is
implanted  beneath the skin in the chest region with  a  catheter
inserted  in  a vein and provides a delivery system for  patients
who   require   continual  injections.   Because  such   repeated
injections  can  cause  veins  to shut  down  and  collapse,  the
theraPORTr offers an improved delivery system by eliminating that
vascular  trauma.   If  necessary to  accommodate  multiple  drug
therapy  with  incompatible drugs, dual ports can  be  implanted.
Such  devices  are frequently used in cancer drug  therapy.  BICO
began  selling  the standard ports during the second  quarter  of
1997.  A second device with a low profile has been developed  for
pediatric use, and a 510(k) was submitted to the FDA in  November
1997  for  marketing  approval.  In  early  February  1998,  BICO
submitted  a  supplement to the FDA in response to a request  for
additional  information.  The Company is currently  developing  a
dual  port  device and plans to submit another  510(k)  for  that
device in the near future.

Through  its  subsidiary,  Coraflex Inc.  ("Coraflex"),  BICO  is
engaged  in  the development of a polyurethane heart valve  which
management  believes  may  not  have  the  disadvantages  of  the
mechanical  and  bioprosthetic valves currently  being  marketed.
The  Coraflexr  valve, which resembles the human  heart's  aortic
valve,  is made by means of a proprietary manufacturing  process.
The  polyurethane used in the construction of the heart valve  is
believed by BICO to exhibit strength and fatigue resistance which
compare   favorably  with  that  of  other  materials  used   for
prosthetic  valves.  In vitro testing, some  of  which  has  been
performed through the Children's Hospital of Pittsburgh,  of  the
Coraflexr  valve  to  date  has  demonstrated  superior   fatigue
resistance  and  flow characteristics relative to  the  currently
available  bioprosthetic  and mechanical  devices,  respectively.
Additional  development and testing must  be  conducted  by  BICO
prior  to  its making an application to the FDA for  approval  to
begin  clinical  testing in humans.  BICO  will  need  additional
financing to complete clinical testing of the valve and to  begin
production.  No assurances can be made that BICO will receive the
necessary funding to complete testing, will receive FDA-marketing
approval, will be able to produce and sell the valve, or that the
valve will be commercially viable.

BICO also has developed technology for other implantable devices,
such  as  hemodialysis ports, implantable insulin dispensers  and
rate-adaptive pacemakers.   Because BICO's management decided  to
focus  most  of  the  Company's resources  on  the  research  and
development  of  the Noninvasive Glucose Sensor, little  progress
was  made on these projects.  Consequently, some of these devices
are in a very preliminary stage of development, and it is unclear
at  this  time  whether  their development  will  be  pursued  or
completed.

Functional Electrical Stimulator Project.  The Company has
discontinued its functional electrical stimulator project due to
a loss of orders from NeuroControl, its sole purchaser.  Because
these products accounted for the majority of the Company's sales
revenues, this loss is significant and will have a corresponding
negative impact upon the Company's cash flows, liquidity and
revenue.

Metal-Plating Technology

When  the  Company  acquired  its  interest  in  a  metal-plating
company, it estimated that the product would generate revenue and
profit.      The  results  have  differed  materially  from   the
Company's  initial estimates.  The project did not  generate  any
revenue during 1998 or 1999.  The Company's early estimates  were
based  upon its assessment not only of the marketability  of  the
product,  but  on  the Company's ability to penetrate  the  metal
finishing  market  using  the  features  of  the  product.    The
Company's  actual experience has indicated that it is  much  more
difficult  to exploit the existing market, regardless of  whether
or not the Company's product has superior features.  As a result,
the  Company has been compelled to adjust its marketing strategy.
Accordingly,  the Company can no longer estimate the  amounts  or
timing of any revenue or profit, and the Company has adjusted the
value of its investment in its financial statements.

The information set forth herein regarding BICO's projects is of
a summary nature, and the status of each project is subject to
constant change.  There can be no assurances as to the completion
or success of any project.

RESEARCH AND DEVELOPMENT

The  Company continues to be actively engaged in the research and
development  of new products.  Its major emphasis  has  been  the
development of a Noninvasive Glucose Sensor.  In order  to  raise
funds  for  the  research and development of  new  products,  the
Company  and Diasensor.com have conducted sales of stock.   (See,
"MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION  AND
RESULTS OF OPERATIONS").

MARKETING AND DISTRIBUTION

Petrol  Rem began marketing of its bioremediation product,  PRPr,
in  mid-1993, and is now sold in quality marine supply stores  in
the  coastal areas of the United States, Canada, Europe and South
East  Asia.   These projections are based on management's belief,
as  to which there can be no assurances, that the development and
manufacture   of   those  products  will  continue   to   proceed
successfully and on schedule.

IDT received FDA approval to market its ThermoChem-HT SystemT and
related disposables used for regional cancer treatment.

PATENTS, TRADEMARKS AND LICENSES

The  Company  owns patents on certain of its products  and  files
applications to obtain patents on new inventions when  practical.
Additionally,  the  Company endeavors  to  obtain  licenses  from
others, as it deems necessary to conduct its business.

The  Company  also  relies upon trade secret protection  for  its
confidential   and  proprietary  information.    Although   BICO,
Diasensor.com and their affiliates take all reasonable  steps  to
protect  such  information, including the use of  Confidentiality
Agreements and similar provisions, there can be no assurance that
others  will  not independently develop substantially  equivalent
proprietary information or techniques, otherwise gain  access  to
the  Company's trade secrets, disclose such technology,  or  that
the Company can meaningfully protect its trade secrets.

Noninvasive Glucose Sensor

Diasensor.com  owns a patent entitled "Non-Invasive Determination
of  Glucose  Concentration  in Body of Patients"  (the  "Patent")
which  covers  certain aspects of a process for  measuring  blood
glucose levels noninvasively.  Such Patent was awarded to  BICO's
research  team  in  December 1991 and was sold  to  Diasensor.com
pursuant  to a Purchase Agreement dated November 18,  1991  (See,
"Intercompany  Agreements").  The  Patent  will  expire,  if  all
maintenance  fees are paid, no earlier than the  year  2008.   If
marketing  of  a  product made under the  Patent  is  delayed  by
clinical  testing or regulatory review, an extension of the  term
of  the  Patent may be obtained.  Diasensor.com's Patent  relates
only  to  noninvasive sensing of glucose but not to  other  blood
constituents.   Diasensor.com  has  filed  corresponding   patent
applications in a number of foreign countries.

A  second patent application was filed by BICO in December  1992,
which   was  assigned  to  Diasensor.com.   This  second   patent
contained  new  claims,  which extend  the  coverage  based  upon
additional  discoveries  and  data obtained  since  the  original
patent  was filed. The patent application was amended in  October
1993, and was granted in January 1995.

In  May  1993, four additional patent applications were filed  by
BICO's  research  teams related to the methods,  measurement  and
noninvasive determination of analyze concentrations in blood.

As  of March 2000, a total of eight patents have been issued, all
of  which  have  been assigned to Diasensor.com,  and  additional
patents  are  pending.    Corresponding patent applications  have
been  filed  in  foreign countries where the Company  anticipates
marketing the Noninvasive Glucose Sensor.

BICO's  research  team  continues to  file  patent  applications,
provisional  patent  applications,  some  of  which   are   being
converted into "PCTs" (Patent Cooperative Treaty), which  reflect
the continued research and development and additional refinements
to the Noninvasive Glucose Sensor.

Diasensor.com or BICO may file applications in the United  States
and  other  countries,  as appropriate,  for  additional  patents
directed to other features of the Noninvasive Glucose Sensor  and
related processes.

Those   competitors  known  by  Diasensor.com  to  be   currently
developing  non-invasive glucose sensors own patents directed  to
various   devices  and  processes  related  to  the  non-invasive
monitoring   of  concentrations  of  glucose  and   other   blood
constituents.   It  is  possible that such  patents  may  require
Diasensor.com  to  alter  any model of  the  Noninvasive  Glucose
Sensor  or  the underlying processes relating to the  Noninvasive
Glucose   Sensor,  to  obtain  licenses,  or  to  cease   certain
activities.

The  Company  also  relies upon trade secret protection  for  its
confidential and proprietary information.  Although Diasensor.com
and  BICO  take all reasonable steps to protect such information,
including  the  use  of  Confidentiality Agreements  and  similar
provisions,  there  can  be no assurance  that  others  will  not
independently   develop   substantially  equivalent   proprietary
information or techniques, otherwise gain access to the Company's
trade secrets, disclose such technology, or that the Company  can
meaningfully protect its trade secrets.

The  Company has registered its trademark "Diasensor ", which  is
intended  for  use in connection with the Diasensor  models.  The
Company   intends  to  apply,  at  the  appropriate   time,   for
registrations  of other trademarks as to any future  products  of
the Company.

Extracorporeal Hyperthermia

In  September 1992, a research team funded by the Company applied
for  a domestic patent in connection with the use of PISH and the
treatment of HIV-positive patients; the patent has been  assigned
to  IDT.   In  October 1994, IDT received notification  that  the
patent  application  for its specialized  method  for  whole-body
extracorporeal  hyperthermia had been issued.  A Continuation  in
Part, which included the ThermoChem SystemT was filed by IDT, was
allowed in July 1995 and issued in December 1995.

The  patent, entitled "Specialized Perfusion Protocol for  Whole-
Body   Hyperthermia",   contains   seventeen   claims   for   the
hyperthermia  procedure, including the method of heating  all  of
the  blood  in  the  extracorporeal blood circuit  to  raise  the
patient's   core   temperature  to   approximately   42   degrees
centigrade.  A Continuation in Part, which was filed by  IDT  and
included the ThermoChem SystemT, was allowed in July 1995 and was
issued in December 1995.

In  May of 1999 and early 2000, IDT filed provisional patents for
its use of the ThermoChem-HT SystemT and related disposables, and
for the use of the device for regional hyperthermia procedures.

Implantable Technology

During  1995, the Company renewed its U.S. trademark registration
for  the  name Coraflexr, which was originally granted  in  1988.
The Company has also obtained trademark registration for the name
theraPORTr  (See, "BUSINESS - Implantable Technology).

In  October  1996,  a patent was issued for the  Company's  heart
valve product.

Bioremediation

In  1992  and 1993, Petrol Rem applied for patents in  connection
with  its bioremediation product, all of which are still pending.
The  Company has received trademark authorization for the use  of
the  product  names PRP, BIO-SOK, BIO-BOOM,  and  Oil  Buster
(See, "BUSINESS - Bioremediation").

WARRANTIES AND PRODUCT LIABILITY

The  Company's  present product liability insurance  coverage  is
$1,000,000 in the aggregate, which management considers to  be  a
sufficient amount due to the Company's discontinuance of sales of
certain  products, including its former pacemaker  line  and  its
functional  electrical  stimulators, and  potential  exposure  to
liability.

SOURCE OF SUPPLY

In  connection  with  the  manufacture  the  Noninvasive  Glucose
Sensor, the Company will be dependent upon suppliers for some  of
the components required for the devices fabrication.  The Company
plans  to  assemble  the  devices,  but  will  need  to  purchase
components,  including some components which will be custom  made
for  the  Company from certain suppliers.  These components  will
not  be generally available, and the Company may become dependent
upon those suppliers, which do provide such specialized products.

If  the  Company  successfully develops other new  products,  and
receives  the regulatory approvals to manufacture such  products,
it may become dependent on certain suppliers for custom parts.

COMPETITION

Noninvasive Glucose Sensor

With  the  rapid progress of medical technology, and in spite  of
continuing  research  and  development  programs,  the  Company's
developmental  products  are  always  subject  to  the  risk   of
obsolescence  through the introduction by others of new  products
or  techniques.   Management is aware that other research  groups
are  developing  noninvasive glucose  sensors,  but  has  limited
knowledge  as  to the technology used or stage of development  of
these  devices.   There is a risk that those  other  groups  will
complete  the  development of their devices  before  the  Company
does.  There is no other company currently producing or marketing
noninvasive sensors for the measurement of blood glucose  similar
to  those being developed by the Company.  Competitive success in
the    medical   device   field   is   dependent   upon   product
characteristics  including performance, reliability,  and  design
innovations.

The   Noninvasive  Glucose  Sensor  will  compete  with  existing
invasive glucose sensors.  Although the Company believes that the
features  of  the  Noninvasive Glucose Sensor,  particularly  its
convenience and the fact that no blood samples are required, will
compete  favorably with existing invasive glucose sensors,  there
can  be  no  assurance that the Noninvasive Glucose  Sensor  will
compete  successfully.  Most currently available invasive glucose
sensors yield accuracy levels of plus or minus 25% to 30%,  range
in  price  from  $80  to $200, not including  monthly  costs  for
disposable  supplies  and  accessories,  and  are  produced   and
marketed  by  eight  to ten sizable companies.   Those  companies
include   Bayer,  Inc.,  Boehringer  Mannheim  Diagnostics,   and
Lifescan (an affiliate of Johnson & Johnson).

Such  companies have established marketing and sales forces,  and
represent established entities in the industry.  Certain  of  the
Company's competitors (including their corporate or joint venture
partners  or  affiliates)  currently marketing  invasive  glucose
sensors   have   substantially  greater   financial,   technical,
marketing  and  other resources and expertise than Diasensor.com,
and  may  have  other  competitive advantages over  Diasensor.com
(based  on  any one or more competitive factors such as accuracy,
convenience,  features,  price or brand loyalty).   Additionally,
competitors marketing existing invasive glucose sensors may  from
time  to time improve or refine their products (or otherwise make
them  more  price  competitive) so as to enhance their  marketing
competitiveness  relative  to the Company's  Noninvasive  Glucose
Sensor.  Accordingly, there can be no assurance that the product,
or  Diasensor.com as marketer for the Noninvasive Glucose Sensor,
will be able to compete favorably with such competition.

The  Company  faces more direct competition from other  companies
who  are currently researching and developing noninvasive glucose
sensors.  The Company has very limited knowledge as to the  stage
of  development of these sensors; however, should another company
successfully  develop a noninvasive glucose sensor,  achieve  FDA
approval,  and  reach the market prior to the Company,  it  would
have  an adverse effect upon the Company's ability to market  its
sensor.

Among  the  other companies investigating infrared technology  to
measure  blood glucose levels noninvasively is CME Telemetrix  in
Waterloo,  Ontario, Canada.  CME is reportedly  conducting  tests
with  a  desktop monitor that uses near-IR wavelengths.  OptiScan
Biomedical  in  Alameda, California is developing a  device  that
uses  far-IR  wavelengths.  Rio Grande  Medical  Technologies  of
Albuquerque,  New  Mexico is designing a photonics-based  device.
Rio Grande is currently funded by Johnson & Johnson.

Other  companies claim that they are designing systems  that  are
semi-invasive.  SpectRx in Norcross, Georgia is using a laser  to
create micropores on the skin without the invasive penetration of
a  metal  needle  or  lancet.  The device then  gives  a  glucose
reading   from   the  interstitial  fluid  collected   from   the
micropores.   Cell Robotics International, Inc.  in  Albuquerque,
New Mexico is also using a laser device that perforates the skin.
Called the Lasette, a single-pulse Er: YAG laser ablates a  small
hole  in  the  fingertip to extract capillary blood  for  glucose
testing.   A  continuous glucose monitoring system from  MiniMed,
Inc.  in  Sylmar, California received FDA approval in June  1999.
The  device  includes a catheter with a small sensor at  its  tip
that  is inserted through the skin, sending readings via a  small
wire to a sensor.  A new sensor must be reinserted under the skin
every two to three days.

Cygnus  of  Redwood, California recently underwent an  FDA  panel
review  for its GlucoWatch that leeches glucose through the  skin
by    electrical   stimulation.    The   glucose   triggers    an
electrochemical  reaction in a disposable  transdermal  pad  that
acts  as  a  biosensor,  generating electrons.   Although  Cygnus
claims that its device is noninvasive, the fact remains that,  in
addition to the use of electrical currents to draw fluid  through
the  skin, each person must use finger prick technology every day
to  calibrate and use the device.  Although the panel recommended
FDA approval, to the best of the Company's knowledge, the FDA has
not  issued that approval.  BICO was interested to learn that the
FDA  panel  accepted  Cygnus' use of the  same  error  grid  data
analysis  that was rejected when BICO used it for its  own  panel
review.

Certain  organizations are also actively engaged  in  researching
and  developing  technologies  that  may  regulate  the  use   or
production  of insulin or otherwise affect or cure the underlying
causes  of  diabetes.  Diasensor.com is not aware of any  new  or
anticipated   technology  that  would  effectively   render   the
Noninvasive  Glucose Sensor obsolete or otherwise not  marketable
as  currently  contemplated.  However, there can be no  assurance
that  future technological developments or products will not make
the Noninvasive Glucose Sensor significantly less competitive or,
in  the  case  of  the  discovery of a cure  for  diabetes,  even
effectively obsolete.

GOVERNMENT REGULATIONS

Since  most  of the Company's products are "medical  devices"  as
defined  by  the Federal Food, Drug and Cosmetic Act, as  amended
(the "Act"), they are subject to the regulatory authority of  the
FDA.   The  FDA regulates the testing, marketing and registration
of  new  medical devices, in addition to regulating manufacturing
practices, labeling and record keeping procedures.  The  FDA  can
subject  the  Company  to  inspections  of  its  facilities   and
operations  and may also audit its record keeping  procedures  at
any  time.   The FDA's Good Manufacturing Practices  for  Medical
Devices  specifies various requirements for BICO's  manufacturing
processes and maintenance of certain records.

In  1997, Congress enacted legislation directed toward regulation
of  pharmaceutical and medical devices.  Although the  impact  of
the  FDA  Administration Modernization Act of 1997 ("FDAMA")  was
expected  to  reduce the quantity of information a  company  must
submit  for approval of devices, that has not been the Companies'
experience.     In  certain sections of the FDAMA concerned  with
Risk-Based  Regualtion of Medical Devices, the agency promulgated
guidance  for  industry on the use of national and  international
consensus  standards.   The  FDA  anticipates  that  the  use  of
consensus   standards  will  accelerate  premarket   notification
clearance.   The impact of the FDAMA on the approval process  for
obtaining  marketing approval for the Diasensorr has  yet  to  be
established.

Noninvasive Glucose Sensor

Because  the Noninvasive Glucose Sensor is subject to  regulation
by  the FDA, the Company will be required to meet applicable  FDA
requirements prior to marketing the device in the United  States.
These  requirements  include  clinical  testing,  which  must  be
supervised by the IRBs of chosen hospitals.  During 1999, the FDA
recommended that the Company file a PMA and conduct an additional
clinical  study under an IDE.  Biocontrol will submit  a  modular
PMA,  which  allows the various aspects of the submission  to  be
made in modules over a period of time.  The Modular PMA is a  new
method  of  submitting information to the FDA, and resulted  from
the  passage of the FDAMA in 1997.  The Company submitted  a  PMA
Shell  and  certain modules, and plans to begin  clinical  trials
during 2000.

The  time  elapsed between the completion of clinical testing  at
IRBs and the grant of marketing approval by the FDA is uncertain,
and  no assurance can be given that approval to market the device
in the U.S. will ultimately be obtained.

In   June  of  1998,  the  FDA  instituted  new  Quality   System
Regulations  ("QSR"s) that took the place of  Good  Manufacturing
Practices.  These regulations align closely with those guidelines
specified  by  the  ISO,  which  sets  quality  requirements  for
products  being  shipped  to the European  Union  ("EU").   These
regulations have added control of the design process as  well  as
the manufacturing process.

On  January 14, 1998, the Company received certification  to  ISO
9001, and on June 23, 1998, it received the CE mark.  The CE mark
and the ISO certification is provided by the regulatory bodies of
the  EU  or  private  "notified  bodies"  which  are  third-party
companies  certified  by  the EU as  able  to  also  provide  the
certifications.  The CE mark indicates that the device adheres to
quality systems guidelines of the ISO and its European signatory,
European  Norm  Standards for Medical Devices  ("EN").   Rigorous
audits  were  conducted  at  the  Company  to  certify  that  the
Company's  development and manufacturing procedures, as  well  as
the  Diasensor 1000r itself met the international standards  laid
down  by the Medical Device Directive.  In order to maintain  its
approval  to  ship the device into the EU, the  Company  must  be
vigilant in its adherence to its quality system, and audits  will
be  conducted on an annual basis by its third-party notified body
to verify that the Company continues to meet the standards.

Any  changes  in  FDA  procedures or  requirements  will  require
corresponding changes in the Company's obligations  in  order  to
maintain compliance with FDA standards.  Such changes may  result
in  additional delays or increased expenses.  BICO's products may
also  be subject to additional foreign regulatory approval  prior
to any sales.

Extracorporeal Hyperthermia

In  January  2000, HemoCleanse and IDT received FDA  approval  to
market  the ThermoChem-HT SystemT and related disposables,  which
are used to raise the core temperature of the abdominal cavity to
the  desired temperature in the 41 C (105.8 F) to 42 C  (107.6 F)
range   by   continuously  bathing  the  abdominal  cavity   with
circulating  sterile  solution.   In  a  surgical  procedure  all
cancerous  growths  are  surgically removed  from  the  patient's
abdomen  and  pelvis  while all spaces and  lining  surfaces  are
opened,  the  abdomen  is  perfused utilizing  the  ThermoChem-HT
System with a heated physiologic solution circulating for  a  two
(2) hour period.  In addition, in February 2000, the FDA approved
continued  clinical trials using the ThermoChem-HT technology  to
treat patients with stage IIIb small cell lung cancer.

IDT  is  working  with BICO to obtain a CE  Mark  to  market  the
ThermoChem-HT SystemT in Europe.

Bioremediation

The Company's bioremediation projects are supervised by NETAC,  a
private  group  endorsed  and  supervised  by  the  EPA  and  the
Pennsylvania Department of Environmental Resources.  In addition,
each  state  in which the bioremediation products are  used  will
apply  its own environmental regulations to the use and  sale  of
the products.

HUMAN RESOURCES

As  of  December 31, 1999, the Company had 85 full-time employees
who  were  located primarily in either the Indiana or  Pittsburgh
locations.  In addition, IDT had two employees; Diasensor.com had
three  employees; and Petrol Rem had six employees as of December
31, 1999.

The Company has employment contracts with some of its non-officer
employees, most of whom are scientists and engineers employed  in
the   Company's   research  and  development  operations.    Such
contracts  are  typically for terms of  five  years  and  contain
confidentiality provisions.  The Company also employs consultants
as  needed;  some  of  the consultants are employed  pursuant  to
consulting contracts, which contain confidentiality provisions.

Item 2. Properties

Prior  to 1999, the Company's research and development operations
were  located in a 20,000 square foot one-story building  at  300
Indian  Springs  Road, Indiana, Pennsylvania.   The  building  is
leased  by  the  Company from the 300 Indian  Springs  Road  Real
Estate Partnership (the "Partnership").  The lease period  is  20
years  and  runs  concurrently for  ten  years  with  a  mortgage
arranged by the Partnership at a stated amount of rent.   At  the
end  of  ten  years, the amount of rent paid by  the  Company  is
subject  to  renegotiation, based on  refinancing  of  a  balloon
payment  due  on  the  mortgage, unless  the  mortgage  has  been
satisfied by the Partnership.   In addition to rent, the  Company
pays  all taxes, utilities, insurance, and other expenses related
to  its  operations at that location (See, "CERTAIN RELATIONSHIPS
AND   RELATED  TRANSACTIONS").   The  Company  has  vacated  this
building  and  the  partnership has  listed  it  for  sale.   The
operations and activities formerly located on Indian Springs Road
have been moved to the manufacturing space discussed below.

In  September 1992, BICO entered into a ten-year lease  agreement
with  the Indiana County Board of Commissioners for 22,500 square
feet  of  space  that BICO has reconfigured to its  manufacturing
specifications.  During 1998 and 1999, BICO moved the balance  of
its  Indiana,  Pennsylvania operations  to  this  space.     This
facility contains sufficient additional space to accommodate  the
Company's projected operations through 2000.

Item 3.  Legal Proceedings

During  April  1998, the Company and its affiliates  were  served
with  subpoenas  by  the  U.S. Attorneys'  office  for  the  U.S.
District  Court  for the Western District of  Pennsylvania.   The
subpoenas  requested certain corporate, financial and  scientific
documents  and  the  Company continues to  provide  documents  in
response to such requests.

On  April 30, 1996, a class action lawsuit was filed against  the
Company,  Diasensor.com  and individual officers  and  directors.
The  suit, captioned Walsingham v. Biocontrol Technology, et al.,
has  been certified as a class action, and is pending in the U.S.
District  Court  for the Western District of  Pennsylvania.   The
suit  alleges  misleading  disclosures  in  connection  with  the
noninvasive  glucose  sensor and other  related  activities.   By
mutual  agreement of the parties, the suit remains  in  the  pre-
trial pleading stage.

The  Company had leased space in two locations in Indiana  County
for  its  manufacturing facilities.  One space,  which  has  been
upgraded with leasehold improvements, is still being used by  the
Company.   The  other space, which had been leased  as  expansion
space, was the subject of a judgment proceeding.  The Company has
given  up possession of its expansion space in Indiana County  in
response  to the filing of such judgment for nonpayment of  lease
fees.   In  return  for possession of the space, the  leaseholder
agreed not to pursue any action on the judgment at this time.

Item 4.  Submission of Matters to a Vote of Security Holders

Not applicable.

Item  5.   Market  for  Registrant's Common  Equity  and  Related
Stockholder Matters


                  MARKET PRICE FOR COMMON STOCK

BICO's common stock trades on the electronic bulletin board under
the symbol "BICO".  On March 21, 2000, the closing bid price for
the common stock was $.45 per share.  The following table sets
forth the high and low prices for BICO's common stock during the
calendar periods indicated, through December 31, 1999.

Calendar Year                    High            Low
and Quarter

1997            First Quarter    $1.500          $ .625
                Second Quarter   $1.000          $ .3125
                Third Quarter    $ .719          $ .3125
                Fourth Quarter   $ .406          $ .0937

1998            First Quarter    $ .250          $ .0937
                Second Quarter   $ .1875         $ .0313
                Third Quarter    $ .359          $ .0313
                Fourth Quarter   $ .126          $ .049

1999            First Quarter    $ .084          $ .049
                Second Quarter   $ .340          $ .048
                Third Quarter    $ .125          $ .070
                Fourth Quarter   $ .099          $ .050

As of December 31, 1999, BICO had approximately 80,000 holders,
including those who hold in street name, of its common stock, and
four holders of its preferred stock.

Employment Agreement Provisions Related to Changes in Control

BICO has entered into agreements (the "Agreements") with Fred  E.
Cooper, David L. Purdy, Anthony J. Feola, Glenn Keeling, and  two
non-executive officer employees.  The Agreements provide that  in
the  event of a "change of control" of BICO, BICO is required  to
issue  the  following shares of common stock,  represented  by  a
percentage  of  the  outstanding shares of common  stock  of  the
Company  immediately  after the change in control:  five  percent
(5%) to Mr. Cooper and Mr. Purdy; four percent (4%) to Mr. Feola;
three  percent (3%) to Mr. Keeling; and two percent (2%) each  to
the  two  non-executive officer employees.  In general, a "change
of control" is deemed to occur for purposes of the Agreement: (i)
when  20%  or more of BICO's outstanding voting stock is acquired
by  any  person,  (ii) when one-third (1/3)  or  more  of  BICO's
directors  are  not  Continuing  Directors  (as  defined  in  the
Agreements),  or  (iii)  when a controlling  influence  over  the
management or policies of BICO is exercised by any person  or  by
persons acting as a group within the meaning of Section 13(d)  of
the  Securities  Exchange Act of 1934, as amended (the  "Exchange
Act") (See, "MANAGEMENT - Employment Agreements").

Item 6.  Selected Financial Data


                FOR THE YEARS ENDED DECEMBER 31st

                1999        1998         1997          1996        1995

Total
Assets      $15,685,836  $9,835,569   $12,981,300  $14,543,991  $ 9,074,669

Long-Term
Obligations $ 1,338,387  $1,412,880   $ 2,697,099  $ 2,669,727  $   175,330

Working
Capital
(Deficit)   $ 4,592,935 ($9,899,008)  $   888,082  $ 1,785,576  $ 3,188,246

Preferred
Stock       $   720,000  $  0         $   0        $   0        $    37,900

Net Sales   $   112,354  $1,145,968   $1,155,907   $   597,592  $   461,257

TOTAL
REVENUES    $ 1,196,811  $1,378,213   $1,426,134   $   776,727  $   755,991

Warrant
Extensions  $ 4,669,483  $  0         $4,046,875   $ 9,175,375  $12,523,220

Benefit
(Provision)
for Income  $  0         $  0         $   0        $   0        $  0
Taxes

Net Loss   ($38,072,578)($22,402,644)($30,433,177)($24,045,702)($29,420,345)

Net Loss
Per Common ($.05)       ($.08)       ($.43)       ($.57)       ($.84)
Share

Cash
Dividends
Per Share:
 Preferred  $  0         $  0         $   0        $   0        $  0
 Common     $  0         $  0         $   0        $   0        $  0


   Item 7.  Management's Discussion and Analysis of Financial
               Condition and Results of Operations

The  following is a summary of the more detailed information  set
forth in the financial statements attached hereto.  Data from all
year-end   periods  are  from  the  Company's  Audited  Financial
Statements.  Except  as noted otherwise, all discussions  reflect
fully consolidated financial information.

                   Forward-Looking Statements

In  addition  to other sections of this report, the  Management's
Discussion and Analysis section also contains the type of forward-
looking  statements discussed on page 2 herein.  Please refer  to
such  discussion  in  connection with the  information  presented
here.

                 Liquidity and Capital Resources

Working  capital was $4,592,935 at December 31, 1999 as  compared
to  ($9,899,008) at December 31, 1998 and  $888,082  at  December
31,  1997.  Working Capital fluctuations are due primarily to the
varied  capital-raising efforts of the Company  which  aggregated
approximately  $30,730,000  in 1999,  $10,720,000  in  1998;  and
$22,300,000 in 1997; a decrease in net inventory from  $1,834,018
as  of December 31, 1997, to $74,515 as of December 31, 1998, and
$10,308  as  of  December 31, 1999; and a  decrease  in  accounts
payable  from  $1,750,188 at December 31,  1998  to  $759,733  at
December 31, 1999.

Cash  decreased from $2,759,067 at December 31, 1997 to  $125,745
at  December  31, 1998, and increased to $10,827,631 at  December
31,  1999.   These  changes were attributable  to  the  following
factors.   The  Company's  sales of its securities  raised  funds
aggregating $30,730,000 during 1999; $10,720,000 during 1998; and
$22,300,000 during 1997. During those periods, the Company's cash
flows   used  by  operating  activities  aggregated  $18,411,002;
$11,855,294;  and  $19,121,752; respectively.   During  1998  and
1997,  such activities included a $ .8 and $2.1 million  increase
in  inventory  reserves, respectively. During 1998,  the  Company
expended cash and other resources in connection with its purchase
of a majority interest in a metal-coating company.   Because that
investment  did  not  perform  as anticipated,  assets  including
goodwill  were  amortized  in  1999,  as  discussed  below.    In
addition,  the  Company  recorded a  $4  million  charge  against
operations due to warrant extensions by its subsidiary  in  1997,
with  a similar charge of $5.9 million in 1999. (See, Note  J  to
the Financial Statements).

The  Company's other assets decreased from $4,803,384 at year-end
1998 to $710,619 at year-end 1999 due primarily to a $4.4 million
adjustment  to  goodwill in connection with the company's  metal-
plating  segment.  In addition, during 1999, the company invested
$485,284  in  a business that is developing products designed  to
enhance rocket propulsion performance.

The  Company's current liabilities decreased by $3.5 million from
1998  to  1999,  from  $10,325,771 as of  December  31,  1998  to
$6,792,504  as of December 31, 1999.  The decrease was  primarily
due  to  the payoff of current liabilities incurred in connection
with the Company's cash flow problems during 1998.

The Company continued to fund operations mostly from sales of its
securities.    During  1999,  the  Company  raised  approximately
$30,730,000 from the sales of securities, including $810,000 from
sales of its Series F preferred stock.  During 1998 and 1999, the
Company issued $10,720,000 and $29,020,000, respectively, of  its
4%  Subordinated Convertible Debentures.  The debentures had one-
year  terms,  minimum  holding periods prior  to  conversion  and
mandatory  conversion provisions. During 1997, the  Company  sold
22,000  shares of its Series B preferred stock; and issued  $20.2
million in subordinated convertible debentures.

As  of  December 31, 1998 and 1997, the conversion price  of  the
debentures  would  have been approximately $.059  and  $.146  per
share,  respectively,  based  upon  a  formula  which  applies  a
discount  to the average market price for the previous  week  and
determined  by the length of the holding period.  As of  December
31,  1998  and  1997,  the number of shares  to  be  issued  upon
conversion  of all outstanding debentures was approximately  60.1
million  and 23.9 million shares, respectively, which would  have
reflected  discounts of approximately 23% and 18%,  respectively.
No debentures were outstanding as of December 31, 1999.

Due  to  the  Company's current limited sources of  revenue,  the
Company plans to seek additional financing which will be used  to
finance  development  of,  and  to proceed  to  manufacture,  the
Noninvasive Glucose Sensor and to complete the development of its
other  projects.   No assurances are made as to the  availability
of any such financing (See, "BUSINESS").

The  Company's products are at various stages of development  and
will require additional funding for completion.  The Company  may
choose to discontinue any of its projects at any time if research
and  development  efforts  indicate that  continuation  would  be
inadvisable.

The  Company  currently has a commitment for  capital  leases  on
certain  of its capital equipment and future commitments for  new
capital  expenditures will be required to continue the  Company's
efforts  in  research  and development, and  to  manufacture  and
market  its  existing  products and any  other  products  it  may
develop.

As  of  March  2000,  the Company estimates that  its  short-term
liquidity needs will be met from currently available funds.   The
Company  estimates that such funds will be sufficient to complete
the  research  and  development stage of the Noninvasive  Glucose
Sensor,  to  complete the FDA submission process,  and  to  begin
marketing  the  device.   The Company anticipates  that  it  will
finance  those  expenses with existing funds, as  well  as  funds
raised  through  the sales of its securities and from  the  other
sources of funds described herein.  The Company has a history  of
successful  capital-raising  efforts;  since  1989,  and  through
December  1999, BICO and its affiliate Diasensor.com have  raised
over $137,000,000 in private and public offerings alone.

In  prior  years,  the Company met a portion  of  its  short-term
working  capital needs through development contracts  with  other
organizations and through manufacturing for other companies on  a
contractual  basis, as described herein.  During 1997  and  1998,
the  Company was awarded contracts by the Department of Veteran's
Affairs  Medical  Center  for  Case Western  Reserve  University,
Shriners  Hospital  - Philadelphia Unit, and Austin  Hospital  to
manufacture  FES products.  Such contracts generated revenues  of
$880,919  and $1,028,484 in 1997 and 1998, respectively.   During
1998,  orders related to such contracts were terminated by  these
other  entities.   As  a result, the Company has  terminated  FES
project  activities for the present, and does not anticipate  any
additional  revenue  from  those activities  on  a  going-forward
basis.  (See, "BUSINESS").

In view of BICO's expenses resulting from its product development
projects,  and  other factors discussed herein,  as  compared  to
BICO's   contract  revenues,  currently  available   funds,   and
established  ability  to  raise capital  in  public  and  private
markets, BICO estimates that it will meet its liquidity needs for
a  period  of at least twelve months from December 31, 1999  from
currently available funds, including those expected to be  raised
via  additional sales of the Company's securities.  This estimate
is  based, in part, upon the current absence of any extraordinary
technological,  regulatory  or  legal  problems.    Should   such
problems, which could include unanticipated delays resulting from
new   developmental   hurdles   in   product   development,   FDA
requirements, or the loss of a key employee, arise, the Company's
estimates   would  require  re-evaluation.   There  can   be   no
assurances  that  despite the Company's good-faith  efforts,  its
estimates will lead to accurate results.

The  Company's long-term liquidity needs are expected to  include
working  capital to fund manufacturing expenses for its  products
and  continued research and development expenses for existing and
future  projects.    Delays in the development of  the  Company's
products  will result in increased needs for capital  from  other
sources.   The  Company anticipates that such other sources  will
include  continued sales of common stock, and investment partners
such  as  venture  capital funds and private  investment  groups.
There  can  be  no assurances given that adequate funds  will  be
available.  If the Company is unable to raise the funds necessary
to   fund  the  long-term  expenses  necessary  to  complete  the
development or manufacture of its products, the Company  will  be
unable to continue its operations.

As   described  herein,  management  believes  the  Company   has
sufficient  liquidity  to meet its projected  expenditures  on  a
short-term  basis.  Absent additional funding, the  Company  will
have  limited  liquidity on a long-term  basis.   Moreover,  many
demands on liquidity, such as technological, regulatory or  legal
problems,  could cause the Company's liquidity to be  inadequate.
At  present, the Company does not have any additional sources  of
liquidity,  such  as  bank  lines of credit.   Long-term  working
capital needs are expected to be met through licensing and  sales
of the Noninvasive Glucose Sensor, the ThermoChem technology, the
PRPr  bioremediation product, and other new products.  There  can
be  no  assurances  that any such products will  be  successfully
marketed or commercially viable.

                         Results of Operations

The  following seven paragraphs discuss the Results of Operations
of  the  entire  Company  based  on  its  consolidated  financial
statements.  A discussion of the business segments follows.

In  1999,  the  Company's net sales decreased  to  $112,354  from
$1,145,968 in 1998 and $1,155,907 in 1997.  The decrease was  due
primarily  to  the absence of sales of FES products,  which  have
been discontinued. (See, Note F to the Financial Statements).

In  1999, 1998 and 1997, the Company received interest income  in
the  amount  of $1,031,560; $182,033; and $165,977, respectively.
The fluctuation was due to the investment of the Company's liquid
assets (which are composed primarily of funds raised via sales of
securities),  the  availability of  such  assets  and  applicable
interest rates.  The Company's other income increased to  $52,897
in 1999 as compared to $50,212 in 1998 and $104,250 in 1997.  The
fluctuation  was due primarily to the amount of funds  raised  by
the Company during those years.

In  1999,  the Company's costs of products sold were $147,971  as
compared  to $587,821 in 1998 and $641,331 in 1997.  The decrease
is  primarily  due  to the Company's corresponding  decreases  in
product  sales,  and products produced pursuant to  FES  and  IRS
Device contracts, which have been discontinued.

The  Company's research and development expenses were  $4,430,819
in  1999,  a decrease from $6,340,676 in 1998, and $6,977,590  in
1997.   The  prior  years'  decrease was  due  to  the  Company's
realignment of personnel and resources in an effort to  obtain  a
CE  Mark  for sale of the Noninvasive Glucose Sensor outside  the
U.S.,  and,  in  1998, to a loss of personnel due  to  cash  flow
problems.

In  1999, General and Administrative expenses were $12,884,237 an
increase  from $10,673,265 in 1998 and $12,695,628 in 1997.   The
decrease  in  1998 from 1997 was due to a loss in  personnel  and
reduction  in related expenses.  The increase from 1998  to  1999
was  due,  in  part,  to  the  allocation  of  funds  to  outside
consultants  and  other advisors to assist  the  Company  in  its
efforts  to  accelerate  its  various  projects,  including   the
hyperthermia project, and to assist with the noninvasive  glucose
sensor project.

During 1999, the Company re-evaluated its investment in its metal-
coating  project and determined that, in addition to  the  write-
down of goodwill aggregating $4,463,137, an impairment charge  of
$637,530 was necessary.

During  1997  and  1999 the Company's subsidiary,  Diasensor.com,
extended   warrants  originally  granted  to  certain   officers,
directors, employees and consultants.  Because the exercise price
of  some such warrants ($.25 to $3.50) was lower than the  market
price  of  the  common  stock  at the  time  of  the  extensions,
$4,046,875 and $4,669,483 were charged to operations during  1997
and   1999,   respectively.   (See,  Note  J  to  the   Financial
Statements).

Interest  expense  on the Company's outstanding indebtedness  was
$1,373,404  in 1999 as compared to $481,025 in 1998 and  $315,624
in  1997.  The increase was due to an increase in capital  leases
and  interest payments on the Company's subordinated  debentures.
Other  charges to the Company's statements of operations relating
to  the  accounting  treatment  for  the  Company's  subordinated
debentures are discussed in Note A to the Financial Statements.

                       Segment Discussion

For  purposes of accounting disclosure, the Company provides  the
following   discussion   regarding   three   business   segments:
Biomedical  devices, which includes the operations of  Biocontrol
Technology,  Inc. and Diasensor.com, Inc.; Bioremediation,  which
includes  the  operations of Petrol Rem, Inc.; and  Marine  Paint
Products,  including the operations of Barnacle Ban  Corporation,
which   have   been   discontinued.   More   complete   financial
information  on  these segments is set forth in  Note  F  to  the
accompanying financial statements.

Biomedical  Device Segment.  During the year ended  December  31,
1999,  sales  to  external customers decreased  to  $82,056  from
$1,028,484 in 1998 and $880,919 in 1997.  These fluctuations  and
overall  decrease were primarily due to sales of  the  functional
electrical    stimulators,   which   have   been    discontinued.
Corresponding  fluctuations  in  costs  of  products  goods  sold
occurred  for the same reason, from  $445,843 in 1997 to $483,388
in 1998 and $133,288 in 1999.

Bioremediation Segment.  During the year ended December 31, 1999,
sales  to external customers decreased to $26,693 as compared  to
$45,382 in 1998 and $138,362 in 1997.   The decreases were due to
an  inability  to effectively penetrate the market with  products
other than the Bio-Sok.  Costs of products sold decreased due  to
the  same factors, from  $88,178 in 1997 to  $33,061 in 1998, and
$14,683 in 1999.  The relatively higher costs of products sold in
1997  were  due  to the higher cost of producing the  Bio-Sok  as
opposed to other bioremediation products.

Marine  Paint  Products  Segment.  Sales  to  external  customers
decreased  to  $40,835  in  1998 from  $136,624  in  1997.   This
decrease   was  due  primarily  to  the  Company's  decision   to
discontinue  this segment's operations.  Costs of  products  sold
reflect  the  same impact, with $32,777 in 1998 and  $107,310  in
1997.   In  1998,  the  Company  discontinued  its  marine  paint
products segment, and no activity occurred in 1999.

                         Income Taxes

Due  to  the  Company's net operating loss carried  forward  from
previous  years and its current year losses, no federal or  state
income  taxes were required to be paid for the years 1987 through
1999.  As of December 31, 1999, the Company and its subsidiaries,
except  for  Diasensor.com  and Petrol  Rem,  had  available  net
operating  loss carryforwards for federal income tax purposes  of
approximately  $110,800,000, which expire during the  years  2000
through 2020  (See, Note K to the Financial Statements).


               Supplemental Financial Information

In   January,   the   Company  announced  that   its   subsidiary
Diasensor.com had initiated an alliance with MicroIslet, Inc.; in
return   for   its   initial  equity  investment   of   $500,000,
Diasensor.com received a 10% stake with an option to purchase  an
additional 10% in the future

From  January  through early March 2000, the Company  raised  net
funds  aggregating approximately $14.7 million from the  sale  of
its preferred stock and debentures.

In  March  2000,  the  Company filed a  Preliminary  Registration
Statement  on  Form  S-3.   The Registration  Statement  includes
common  stock  on behalf of certain selling shareholders  and  on
behalf  of  the Company.  The selling shareholders are those  who
purchased either preferred stock or subordinated debentures.

Item 8.  Financial Statements and Supplementary Data

The  Company's financial statements appear on pages  F-1  through
F-25 of this report.

Item  9.   Changes  in  and  Disagreements  with  Accountants  on
Accounting and Financial Disclosure

None

Item 10.  Directors and Executive Officers of the Registrant

The  directors  and  executive officers  of  the  Company  as  of
December 31, 1999 were as follows:

   Name               Age   Director   Position
                             Since

David L. Purdy        71      1972     President, Chairman of the
                                       Board, Treasurer, Director

Fred E. Cooper        53      1989     Chief Executive Officer,
                                       Executive Vice President,
                                       Director

Anthony J. Feola      51      1990     Senior Vice President,
                                       Director

Glenn Keeling         48      1991     Vice President, Director

Stan Cottrell         56      1998     Director

Paul W. Stagg         52      1998     Director



DAVID  L.  PURDY,  71,  is  President,  Chairman  of  the  Board,
Treasurer  and a director of the Company.  Mr. Purdy has  been  a
director and Chairman of the Board since its organization in 1972
and  is  considered the organizer and founder of the Company;  he
devotes  60% of his time to the business of the Company, and  40%
of  his time to Diasensor.com.  Mr. Purdy is also an officer  and
director of Diasensor.com and Coraflex.

FRED  E.  COOPER,  53, is the Chief Executive Officer,  Executive
Vice  President  and  a  director  of  the  Company;  he  devotes
approximately 60% of his time to the business of the Company, and
40%  to  Diasensor.com.  Prior to joining the Company, Mr. Cooper
co-founded  Equitable Financial Management, Inc.  of  Pittsburgh,
PA,  a  company  in which he served as Executive  Vice  President
until  his  resignation and divestiture of  ownership  in  August
1990.     Mr.  Cooper  was appointed Chief Executive  Officer  in
January 1990. He is also an officer and director of Diasensor.com
and a director of Petrol Rem and Coraflex.

ANTHONY  J.  FEOLA, 51, rejoined the Company as its  Senior  Vice
President  in  April 1994, after serving as Diasensor.com's  Vice
President  of Marketing and Sales from January 1992  until  April
1994.  Prior to January 1992, he was the Company's Vice President
of Marketing and Sales.  Prior to joining the Company in November
1989,  Mr.  Feola was Vice President and Chief Operating  Officer
with  Gateway  Broadcasting in Pittsburgh in 1989,  and  National
Sales  Manager for Westinghouse Corporation, also in  Pittsburgh,
from  1980 until 1989.  He was elected a director of the  Company
in February 1990, and also serves as a director of Diasensor.com,
Coraflex, and Petrol Rem.

GLENN  KEELING, 48, joined the Board of Directors in April  1991.
Mr.  Keeling  currently is a full-time employee of  BICO  in  the
position   of   Vice   President  of   Marketing;   his   primary
responsibilities  during  1994  through  1997   have   been   the
management  and  operation  of  IDT's  Whole-Body  Extracorporeal
Hyperthermia  project.  From 1976 through 1991,  he  was  a  Vice
President  in  charge  of new business development  at  Equitable
Financial  Management,  Inc., a regional equipment  lessor.   His
responsibilities  included  initial  contacts  with   banks   and
investment  firms  to  open new lines of  business  referrals  in
connection  with financing large equipment transactions.   He  is
also President and a director of IDT.

STAN  COTTRELL,  56, was appointed to the Board of  Directors  in
1998.   Mr.  Cottrell  is the Chairman and  Founder  of  Cottrell
Associates  International,  Inc.,  which  provides  international
business   development,   brokerage,  specialty   marketing   and
promotional  services.  He is a former director of marketing  for
Inhalation  Therapy  Services  and  was  employed  by  Boehringer
Ingelheim, Ltd. as a national product manager.  Mr. Cottrell is a
world ultra-distance runner and the author of several books.

PAUL  W.  STAGG, 52, was appointed to the Board of  Directors  in
1998.   Mr. Stagg is the owner of P.C. Stagg, LLC.  Prior to  his
current  position, he was the marketing manager for the Wholesale
Division  of  First  Financial  Resources,  Inc.,  where  he   is
responsible for marketing, underwriting, sorting and coordination
various types of financing for institutional investors.  Prior to
his  current  position, he was District Distributor of  Marketing
for  Ginger  Mae, a division of United Companies of Baton  Rouge,
LA.

Pursuant to the disclosure requirements of Item 405 of Regulation
S-K  regarding timely filings required by Section  16(a)  of  the
Securities   and   Exchange  Act,  the  Company  represents   the
following.   Based  solely  on its  review  of  copies  of  forms
received  and  written  representations  from  certain  reporting
persons, the Company believes that all of its officers, directors
and  greater  than  ten percent beneficial owners  complied  with
applicable filing requirements.

Item 11.  Executive Compensation

The  following table sets forth information concerning the annual
and  long-term compensation for services in all capacities to the
Company  for the fiscal years ended December 31, 1999,  1998  and
1997,  of  those persons who were, at December 31, 1999  (i)  the
Chief   Executive  Officer,  and  (ii)  the  other  most   highly
compensated  executive officers of the Company whose remuneration
exceeded $100,000 (the "Named Executives").

                         SUMMARY COMPENSATION TABLE
==============================================================================
             Annual Compensation                 | (1)Long Term  Compensation
------------------------------------------------------------------------------
                                                 |   Awards
Name and                                         | Securities
Principal                                (2)     | Underlying  (2) All other
Position      Year  Salary($) Bonus($) Other($)  | Warrants(#)  Compensation
==============================================================================
David L.                                         |
Purdy ,       1999  $450,000      $0        $0   |   4,000,000(3)       $0
President,    1998  $166,802      $0        $0   |           0          $0
Treasurer (4) 1997  $241,667      $0        $0   |           0          $0
------------------------------------------------------------------------------
Fred E.       1999  $808,772      $200,000  $0   |   4,000,000(3)       $0
Cooper,       1998  $556,173      $0        $0   |           0          $0
CEO (5)       1997  $592,000      $0        $0   |           0          $0
------------------------------------------------------------------------------
Anthony J.    1999  $500,886      $0        $0   |   2,000,000(3)       $0
Feola , Sr.   1998  $326,912      $0        $0   |           0          $0
Vice Pres.(6) 1997  $300,000      $0        $0   |           0          $0
------------------------------------------------------------------------------
Glenn         1999  $302,083      $0        $0   |   2,000,000(3)       $0
Keeling, VP   1998  $180,003      $0        $0   |           0          $0
(7)           1997  $200,000      $0        $0   |           0          $0


(1)  The  Company  does not currently have a Long-Term  Incentive
     Plan ("LTIP"), and no payouts were made pursuant to any LTIP
     during  the years 1998, 1997, or 1996.  The Company did  not
     award  any  restricted stock to the Named Executives  during
     any  year,  including the years 1998, 1997  or  1996.    The
     Company  did  not  award  any  warrants,  options  or  Stock
     Appreciation Rights ("SARs") to the Named Executives  during
     the  years  ended December 31, 1998, 1997 or 1996;  however,
     the   Company  did  extend  warrants  owned  by  the   Named
     Executives, which would have expired during 1996  (See  Note
     3, below).  The Company has no retirement, pension or profit-
     sharing  programs for the benefit of its directors, officers
     or other employees.

(2)  During   the  year  ended  December  31,  1998,  the   Named
     Executives  received  medical benefits under  the  Company's
     group  insurance  policy,  including  disability  and   life
     insurance  benefits.  The aggregate amount of all perquisite
     compensation  was less than 10% of the total  annual  salary
     and bonus reported for each Named Executive.

(3)  During  1999,  the  Company issued  warrants  to  the  Named
     Executives.   All of the warrants were issued on  April  28,
     1999  at $.129 per share, which was the market price on  the
     date  of the warrant grant.   For more detailed information,
     please  refer  to  the "Option/Warrant/SAR  Grants  in  Last
     Fiscal Year" table, below.

 (4) In  addition to his BICO salary, in 1997, 1998 and 1999, Mr.
     Purdy   was   paid   $100,000,   $100,000,   and   $266,667,
     respectively, by Diasensor.com; such amounts are included in
     the  table above.  Mr. Purdy is paid a salary by the Company
     based   on   his   employment  contract  (See,   "Employment
     Agreements").   Amounts paid to Mr. Purdy  by  Diasensor.com
     are determined by the Diasensor.com Board of Directors based
     upon  services  performed on its behalf.  During  1998,  Mr.
     Purdy voluntarily reduced his salary by 69%.

(5)  In  addition to his BICO salary, in 1997, 1998 and 1999, Mr.
     Cooper    was   paid   $96,000,   $96,000,   and   $104,000,
     respectively, by both Petrol Rem and IDT, both of which  are
     subsidiaries of BICO; such amounts are included in the table
     above,  and part of his salaries for 1998 were deferred  and
     paid  in 1999.  In 1997, 1998 and 1999, Mr. Cooper was  paid
     $150,000,   $150,000, and $340,625, respectively, in  salary
     by  Diasensor.com.; such amounts are also  included  in  the
     table  above.   Mr. Cooper is paid a salary by  the  company
     based   on   his  employment  agreement  (See,   "Employment
     Agreements").   Amounts paid to Mr. Cooper by Diasensor.com,
     Petrol Rem and IDT are determined by the Boards of Directors
     of  those  companies based upon services performed on  their
     behalf.

(6)  Mr.  Feola  is  paid a salary by the company  based  on  his
     employment agreement (See, "Employment Agreements"); part of
     his  salary  from 1998 was deferred and paid  in  1999.   In
     addition,  Mr.  Feola was paid $75,000 by  Diasensor.com  in
     1999;  that  amount is included in the table above.  Amounts
     paid  to  Mr. Feola by Diasensor.com are determined  by  the
     Diasensor.com   Board  of  Directors  based  upon   services
     performed on its behalf.

(7)  Mr.  Keeling  is paid a salary by the company based  on  his
     employment  (See,  "Employment Agreements").  In  1999,  87%
     Keeling's salary was allocated to IDT, Inc. based  upon  the
     time he devoted to its operations.


          Option/Warrant/SAR Grants in Last Fiscal Year


                                                    POTENTIAL REALIZED
                                                     VALUE AT ASSUMED
                                                      ANNUAL RATES OF
                                                           STOCK
INDIVIDUAL GRANTS (1)                               PRICE APPRECIATION
                                                            FOR
                                                      OPTION TERM (3)

                            Percent of
                 Number of  Total
                 Securities Options/SAR's Exercise
                 Underlying Granted to    or      Expiration
                 Options/   Employees in  Base    Date     5%($)   10%($)  0%($)
   Name          SAR's      Fiscal Year   Price
                 Granted       (2)        ($/Sh)

Fred E. Cooper   4,000,000      18%      $0.12   4/28/04  $144,000 $316,000   $0

David L. Purdy   4,000,000      18%      $0.12   4/28/04  $144,000 $316,000   $0

Anthony J. Feola 2,000,000       9%      $0.12   4/28/04  $ 72,000 $158,000   $0

Glenn Keeling    2,000,000       9%      $0.12   4/28/04  $ 72,000 $158,000   $0
                                           ____


(1)  The  warrants  set  forth in this table  represent  the
     warrants  granted to the Named Executives during  1999.
     All  of  the warrants granted each Named Executive  the
     right  to purchase the number of shares of common stock
     shown  in the table at a price of $0.129 per share  for
     five years.

(2)  For  purposes  of  calculating these  percentages,  the
     total  number  of  warrants  granted  during  1999  was
     22,092,500.

(3)  Potential  realizable  values  reflect  the  difference
     between  the warrant exercise price at the end of  1999
     and  the fair value of the Company's common stock price
     from the date of the grant until the expiration of  the
     warrant.  The 5% and 10% appreciation rates, compounded
     annually, are assumed pursuant to the rules promulgated
     by  the  SEC  and do not reflect actual  historical  or
     projected  rates of appreciation of the  common  stock.
     Assuming  such appreciation, the following  illustrates
     the  per  share  value  on the  dates  set  forth  (the
     expiration dates for the warrants), assuming the values
     set  forth  (the closing bid price on the date  of  the
     grant as reported by the electronic bulletin board):

      STOCK PRICE ON      EXPIRATION
      DATE OF GRANT       DATE           5%         10%

      04/28/99: $0.129    04/28/04       $0.165     $0.208

     The   foregoing  values  do  not  reflect  appreciation
     actually   realized  by  the  Named  Executives   (See,
     "Option/Warrant/SAR Exercises in Last Fiscal  Year  and
     Fiscal   Year-End  Option/Warrant/SAR   Value"   Table,
     Below).


     AGGREGATED OPTION/WARRANT/SAR EXERCISES IN LAST FISCAL YEAR
     AND FISCAL YEAR-END OPTION/WARRANT/SAR VALUE TABLE

                              Number of      Value of
                              Securities     Unexercised
                              Underlying     In-the-Money
                              Unexercised    Options/SARs
                              Options/SARs   at
                              at             12/31/99 ($)
                              12/31/99 (#)
  Name    Shares    Value     Exercisable/   Exercisable/
          Acquired  Realized  Unexerciseabl  Unexercisabl
          on        ($)       e (3)          e (4)
          Exercise  (2)
          (#)(1)
David L.      0     $   0      4,767,200     $     0
Purdy                              (5)            (9)
Fred E.       0     $   0      4,300,000     $    0
Cooper                             (6)            (9)
Anthony       0     $   0      2,550,000     $    0
J. Feola                           (7)            (9)
Glenn         0     $   0      2,100,000     $    0
Keeling                            (8)            (9)
__________________

(1)  This  figure represents the number of shares of  common
     stock acquired by each named executive officer upon the
     exercise  of  warrants.  None of the  Named  Executives
     exercised warrants during 1999.

(2)  The  value  realized  of  the  warrants  exercised  was
     computed  by determining the spread between the  market
     value  of  the  underlying securities at  the  time  of
     exercise minus the exercise price of the warrant.

(3)  All warrants held by the Named Executives are currently
     exercisable.

(4)  The  value  of  unexercised warrants  was  computed  by
     subtracting  the  exercise  price  of  the  outstanding
     warrants  from the closing sales price of the Company's
     common  stock on the last trading day of December  1999
     as reported by the electronic bulletin board ($.05).

(5)  Includes  warrants  to  purchase:   187,200  shares  of
     common  stock at $.25 per share until April  24,  2001;
     500,000 shares of common stock at $.25 per share  until
     May  1, 2001; 80,000 shares of common stock at $.33 per
     share  until  June  29, 2003; and 4,000,000  shares  of
     common  stock at $.129 per share until April  28,  2004
     (See, "Warrants").

(6)  Includes warrants to purchase: 300,000 shares of common
     stock  at  $.25  per  share  until  May  1,  2001;  and
     4,000,000  shares of common stock at  $.129  per  share
     until April 28, 2004 (See, "Warrants").

(7)  Includes  warrants  to  purchase:   100,000  shares  of
     common  stock  at  $.25 per share until  May  1,  2001;
     100,000 shares of common stock at $.25 per share  until
     November  26, 2003; 350,000 shares of common  stock  at
     $.50  per  share until October 11, 2002; and  2,000,000
     shares  of common stock at $.129 per share until  April
     28, 2004 (See, "Warrants").

(8)  Includes warrants to purchase: 100,000 shares of common
     stock  at  $1.48 per share until August 26,  2001;  and
     2,000,000  shares of common stock at  $.129  per  share
     until April 28, 2004.

(9)  Because the market price as of the last trading day  of
     December 1999 was less than the exercise price  of  the
     warrants, none of the warrants were in-the-money.


Employment Agreements

BICO  has employment agreements (the "Agreements") with  its
Named Executives Fred E. Cooper, David L. Purdy, Anthony  J.
Feola and Glenn Keeling effective November 1, 1994, pursuant
to  which  they  are  currently entitled to  receive  annual
salaries   of  $250,000,  $300,000,  $408,000  and  $375,000
respectively,  which are subject to review  and  adjustment.
The  initial term of the Agreements with Messrs. Cooper  and
Purdy  was renewed in October 1999 for an additional  three-
year  term,  which will automatically renew  for  additional
three-year  terms  unless one of the  parties  gives  proper
notice  of  non-renewal.  The initial term of the Agreements
with  Messrs. Feola and Keeling was renewed in October  1999
for  an  additional two-year term, which will  automatically
renew  for  additional  two-year terms  unless  one  of  the
parties  gives proper notice of non-renewal.  The Agreements
also  provide that in the event of a "change of control"  of
BICO,  BICO  is  required to issue the following  shares  of
common stock, represented by a percentage of the outstanding
shares of common stock of the Company immediately after  the
change  in control: five percent (5%) to Mr. Cooper and  Mr.
Purdy;  four  percent (4%) to Mr. Feola; and  three  percent
(3%)  to Mr. Keeling.  In general, a "change of control"  is
deemed to occur for purposes of the Agreements (i) when  20%
or  more  of BICO's outstanding voting stock is acquired  by
any  person,  (ii) when one-third (1/3) or  more  of  BICO's
directors  are not Continuing Directors (as defined  in  the
Agreement), or (iii) when a controlling influence  over  the
management or policies of BICO is exercised by any person or
by  persons acting as a group within the meaning of  Section
13(d)  of  the Securities Exchange Act of 1934,  as  amended
(the "Exchange Act").

In  addition, in the event of a change in control within the
term  of  the  Agreements  or within  one  year  thereafter,
Messrs.  Cooper,  Purdy, Feola and Keeling are  entitled  to
receive  severance  payments in amounts equal  to:  100%  of
their  most  recent annual salary for the first three  years
following  termination;  50% of  their  most  recent  annual
salary  for the next two years; and 25% of their most recent
salary  for  the next five years.  BICO is also required  to
continue  medical  insurance coverage  for  Messrs.  Cooper,
Purdy,  Feola  and  Keeling and their families  during  such
periods.   Such  severance payments will  terminate  in  the
event of the employee's death.

In  the  event  that either Mr. Purdy or Mr. Cooper  becomes
disabled,  as  defined  in  their  Agreements,  he  will  be
entitled to the following payments, in lieu of salary,  such
payments  to be reduced by any amount paid directly  to  him
pursuant  to a disability insurance policy provided  by  the
Company  or  its affiliates: 100% of his most recent  annual
salary for the first three years; and 70% of his most recent
salary for the next two years.  In the event that either Mr.
Feola  or Mr. Keeling becomes disabled, as defined in  their
Agreements,  he will be entitled to the following  payments,
in lieu of salary, such payments to be reduced by any amount
paid  directly  to  him  pursuant to a disability  insurance
policy  provided by the Company or its affiliates:  100%  of
his most recent annual salary for the first year; and 70% of
his most recent salary for the second year.

The  Agreements  also generally restrict the  disclosure  of
certain confidential information obtained by Messrs. Cooper,
Purdy,  Feola and Keeling during the term of the  Agreements
and restricts them from competing with BICO for a period  of
one  year  in  specified states following the expiration  or
termination of the Agreements.

In  addition  to the Employment Agreements described  above,
BICO  also  has employment agreements with two of  its  non-
executive officer employees effective November 1, 1994.  The
terms of such agreements are similar to those described  for
Messrs.   Feola  and  Keeling  above,  with  the   following
amendments:   the term of one agreement is from November  1,
1994  through  October  31,  2002,  and  is  renewable   for
successive  two-year terms; the term of the other  agreement
was renewed for an additional two-year term in October 1999,
and  will automatically renew for additional two-year  terms
unless  one of the parties terminates the agreement. In  the
event  of  a "change in control", BICO is required to  issue
both  employees shares of common stock equal to two  percent
(2%)  of the outstanding shares of the common stock  of  the
Company immediately after the change in control.



Item  12.   Security Ownership of Certain Beneficial  Owners
and Management

The following table sets forth the indicated information as
of December 31, 1999 with respect to each person who is
known by the Company to be the beneficial owner of more than
five percent (5%) of the outstanding common stock, each
director of the Company, and all directors and executive
officers of the Company as a group.

As of December 31, 1999, there were 956,108,496 shares of
the Company's common stock outstanding.  The table below
sets forth the common stock currently owned by each person
or group, including common stock underlying warrants, all of
which are currently exercisable, as of December 31, 1999.
The left-hand column sets forth the percentage of the total
number of shares of common stock outstanding as of December
31, 1999, which would be owned by each named person or group
upon the exercise of all of the warrants held by such person
or group together with common stock currently owned.
Except as otherwise indicated, each person has the sole
power to vote and dispose of each of the shares listed in
the columns opposite his name.

Name and                 Amount and      Percent of Beneficial
Address of               Nature of       Ownership of
Beneficial               Beneficial      Total Outstanding
Owner                    Ownership (1)   Common Stock (2)

David L. Purdy (3)       5,167,340 (4)   *
625 Kolter Drive
Indiana, PA 15701

Fred E. Cooper           5,076,200 (5)   *
2275 Swallow Hill Road
Bldg. 2500, 2nd Floor
Pittsburgh, PA 15220

Stan Cottrell              250,000 (6)   *
4619 Westhampton Drive
Tucker, GA 30084

Anthony J. Feola         2,904,000 (7)   *
2275 Swallow Hill Road
Bldg. 2500, 2nd Floor
Pittsburgh, PA 15220

Glenn Keeling            2,238,500 (8)   *
2275 Swallow Hill Road
Bldg.2500,2nd Floor
Pittsburgh, PA 15220

Paul Stagg                 270,000 (9)   *
168 LaLanne Road
Madisonville,LA  70447

All directors           15,906,040 (10)  1.6%
and executive
Officers as a
group (6)

*Less than one percent
____________________

(1) Includes ownership of all shares of common stock which
each named person or group has the right to acquire, through
the exercise of warrants, within sixty (60) days, together
with the common stock currently owned.

(2) Represents total number of shares of common stock owned
by each person, which each named person or group has the
right to acquire, through the exercise of warrants within
sixty (60) days, together with common stock currently owned,
as a percentage of the total number of shares of common
stock outstanding as of December 31, 1999. For individual
computation purposes, the total number of shares of common
stock outstanding as of December 31, 1999 has been increased
by the number of additional shares which would be
outstanding if the person or group exercised all outstanding
warrants.

(3) Does not include shares held by Mr. Purdy's adult
children.   Mr. Purdy disclaims any beneficial interest to
shares held by members of his family.

(4) Includes currently exercisable warrants to purchase the
following: 187,200 shares of common stock at $.25 per share
until April 24, 2001; 80,000 shares of common stock at  $.33
per share until June 29, 2003; 500,000 shares of common
stock at  $.25 per share until May 1, 2001; and 4,000,000
shares of common stock at $.129 per share until April 28,
2004.  In addition, Mr. Purdy is entitled to certain shares
of common stock upon a change of control of BICO as defined
in his employment agreement  (See, "Employment Agreements").

(5) Includes currently exercisable warrants to purchase the
following: 300,000 shares of common stock at $.25 per share
until May 1, 2001; and 4,000,000 shares of common stock at
$.129 per share until April 28, 2004.  In addition, Mr.
Cooper is entitled to certain shares of common stock upon a
change of control of BICO as defined in his employment
agreement  (See, "Employment Agreements").

(6) Includes currently exercisable warrants to purchase
250,000 shares of common stock at $.129 per share until
April 28, 2004.

(7) Includes currently exercisable warrants to purchase the
following: 100,000 shares of common stock at  $.25 per share
until November 26, 2003; 100,000 shares of common stock at
$.25 per share until May 1, 2001; 350,000 shares of common
stock at  $.50 per share until October 11, 2002; and
2,000,000 shares of common stock at $.129 per share until
April 28, 2004. In addition, Mr. Feola is entitled to
certain shares of common stock upon a change of control of
BICO as defined in his employment agreement (See,
"Employment Agreements").

(8) Includes currently exercisable warrants to purchase
100,000 shares of common stock at $1.48 per share until
August 26, 2001; and 2,000,000 shares of common stock at
$.129 per share until April 28, 2004. In addition, Mr.
Keeling is entitled to certain shares of common stock upon a
change of control of BICO as defined in his employment
agreement (See, "Employment Agreements").

(9) Includes currently exercisable warrants to purchase
20,000 shares of common stock at $.06 per share until April
27, 2003; and 250,000 shares of common stock at $.129 per
share until April 28, 2004.

(10) Includes shares of common stock available under
currently exercisable warrants to purchase an aggregate of
as set forth above.


Item 13.  Certain Relationships and Related Transactions

The  Company  and its affiliates share common  officers  and
directors.  In addition, BICO and Diasensor.com have entered
into  several intercompany agreements including  a  Purchase
Agreement,  a  Research  and  Development  Agreement  and  a
Manufacturing   Agreement,  which  are  summarized   herein.
Management believes that it was in the best interest of  the
Company   to  enter  into  such  agreements  and  that   the
transactions  were based upon terms as fair as  those  which
may  have  been  available in comparable  transactions  with
third  parties.   However, no unaffiliated third  party  was
retained  to  determine independently the fairness  of  such
transactions.  The Company's policy concerning related party
transactions  requires the approval of  a  majority  of  the
disinterested  directors of both the corporations  involved,
if applicable.

Employment Relationships

The  Board  of Directors of the Company approved  employment
agreements  on November 1, 1994 for its officers,  David  L.
Purdy,  Fred  E. Cooper, Anthony J. Feola and Glenn  Keeling
(See "Employment Agreements").

David  L. Purdy, President, Treasurer and a director of  the
Company, is a director of Diasensor.com and Coraflex.  He is
also the chairman and Chief Scientist of Diasensor.com,  and
the  President and Treasurer of Coraflex.  Mr. Purdy devotes
approximately  60%  of  his  time  to  BICO,  and   40%   to
Diasensor.com.    Fred E. Cooper, Chief  Executive  Officer,
Executive Vice President and a director of the Company, is a
director of Diasensor.com, Coraflex and Petrol Rem.   He  is
also  the  President of Diasensor.com.  Mr.  Cooper  devotes
approximately  60%  of  his  time  to  BICO   and   40%   to
Diasensor.com. Anthony J. Feola, Senior Vice President and a
director   of   the   Company,  is  also   a   director   of
Diasensor.com, Coraflex, and Petrol Rem.  Glenn  Keeling  is
the  Vice  President and a director of  the  Company.    Mr.
Keeling is also the President and a director of IDT.

Property

Three  of  the  Company's current executive officers  and/or
directors  and  two  former directors  of  the  Company  are
members  of  the  nine-member 300 Indian Springs  Road  Real
Estate  Partnership (the "Partnership") that  in  July  1990
purchased   the   Company's   real   estate   in    Indiana,
Pennsylvania.  Each  member  of the  Partnership  personally
guaranteed  the  payment of lease obligations  to  the  bank
providing the funding.   The five members of the Partnership
who are also current or former officers and/or directors  of
the  Company, David L. Purdy, Fred E. Cooper, Glenn Keeling,
Jack  H. Onorato and C. Terry Adkins, each received warrants
on June 29, 1990 to purchase 100,000 shares of the Company's
common  stock at an exercise price of $.33 per  share  until
June  29, 1995 (those warrants still outstanding as  of  the
original expiration date were extended until June 29, 2001).
Mr.   Adkins,  who  was  a  director  at  the  time  of  the
transaction, resigned from the Board of Directors  on  March
30,  1992.  Mr. Keeling, who was not a director at the  time
of  the transaction, joined the Board of Directors on May 3,
1991.    Mr. Onorato, who was not a director at the time  of
the  transaction,  was a BICO director from  September  1992
until April 1994.

In  all  instances where warrants were issued in  connection
with the transactions set forth above, the exercise price of
the warrants was equal to or above the current quoted market
price of the Company's common stock on the date of issuance.

Warrants

The  following  paragraphs, along  with  the  notes  to  the
financial  statements, include disclosure of  the  warrants,
which  were granted to executive officers, and directors  of
the  Company  from 1997 through 1999.  These  warrants  were
accounted for in accordance with Accounting Principles Board
Opinion  25  (based  on  the spread,  if  any,  between  the
exercise  price and the quoted market price of the stock  on
the  date  that the warrants were granted).   No  value  was
recorded  for these warrants since they were all granted  at
exercise  prices  that were equal to or  above  the  current
quoted  market price of the stock on the date  issued  (See,
Note  J to the Financial Statements).   Because the exercise
price  of  the warrants, which remained unchanged, was  less
than  the  market price of the common stock on the dates  of
the  extensions, charges were made against operations  (See,
"MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND  RESULTS  OF  OPERATIONS", and Note J to  the  Financial
Statements).

During  1999, the Company issued the following  warrants  to
purchase   common  stock  to  its  executive  officers   and
directors:

On  April  28,  1999, warrants to purchase common  stock  at
$.129  per shares until April 28, 2004 were granted  in  the
following amounts:  4,000,000 to Fred E. Cooper, the CEO and
a  director; 2,000,000 to Anthony J. Feola, the Senior  Vice
President and a director; 2,000,000 to Glenn Keeling, a Vice
President  and a director; 4,000,000 to David L. Purdy,  the
Chairman  and  a  director;  250,000  to  Stan  Cottrell,  a
director;  and  250,000  to Paul  Stagg,  a  director.   The
exercise  price of $.129 per share was equal to  the  market
price on April 28, 1999.

Loans

In  1999, all of Fred E. Cooper's outstanding loans from the
Company,  including accrued interest, were  consolidated  to
one  loan  in  the amount of $777,399.80.  Mr. Cooper  began
repaying the loans in May of 1999.   The loan balance as  of
February 29, 2000 was $738,164.39.   In addition, Mr. Cooper
owns  66%  of  a  corporation called B-A-Champ.com.   During
1999,  the  Company  loaned B-A-Champ.com  an  aggregate  of
$150,000;  as  of February 29, 2000, approximately  $100,000
had  been  repaid, and the balance is due in November  2000.
In  return,  the Company received a 6.5% equity interest  in
that company.

In  1999,  all of Anthony J. Feola's outstanding loans  from
the  Company,  including accrued interest, were consolidated
into one loan in the amount of $259,476.82.  Mr. Feola began
repaying the loans in May of 1999.  The loan balance  as  of
February 29, 2000 was $241,491.17.

In  1999, all of Glenn Keeling's outstanding loans from  the
Company, including accrued interest, were consolidated  into
one  loan  in the amount of $296,358.07.  Mr. Keeling  began
repaying the loans in May of 1999.   The loan balance as  of
February 29, 2000 was $275,707.86.

In  September 1995, the Company granted a loan in the amount
of $250,000 to Allegheny Food Services in the form of a one-
year  renewable  note  bearing interest  at  prime  rate  as
reported  by the Wall Street Journal plus one percent  (1%).
Interest and principal payments have been made on the  note,
and  as  of  February 29, 2000, the balance was $167,012.99.
Joseph  Kondisko, a former director of Diasensor.com,  is  a
principal owner of Allegheny Food Services.

Each  of  the loans made to officers or directors and  their
affiliates  was made for a bona fide business purpose.   All
future  loans  to  officers, directors and their  affiliates
will be made for bona fide business purposes only.

Intercompany Agreements

Management  of  the  Company believes  that  the  agreements
between BICO and Diasensor.com, which are summarized  below,
were based upon terms, which were as favorable as those that
may  have  been  available in comparable  transactions  with
third  parties.   However no unaffiliated  third  party  was
retained  to  determine independently the fairness  of  such
transactions.

License and Marketing Agreement.  Diasensor.com acquired the
exclusive  marketing  rights  for  the  Noninvasive  Glucose
Sensor and related products and services from BICO in August
1989  in exchange for 8,000,000 shares of its common  stock.
That  agreement  was  canceled pursuant  to  a  Cancellation
Agreement  dated  November 18, 1991,  and  superseded  by  a
Purchase   Agreement   dated   November   18,   1991.    The
Cancellation  Agreement provides that BICO will  retain  the
8,000,000  shares of Diasensor.com common stock, which  BICO
received pursuant to the License and Marketing Agreement.

Purchase Agreement.  BICO and Diasensor.com entered  into  a
Purchase  Agreement  dated November 18,  1991  whereby  BICO
conveyed  to  Diasensor.com  its  entire  right,  title  and
interest   in  the  Noninvasive  Glucose  Sensor   and   its
development,  including its extensive knowledge,  technology
and   proprietary  information.   Such  conveyance  includes
BICO's patent received in December 1991.

In  consideration of the conveyance of its entire  right  in
the  Noninvasive  Glucose Sensor and its  development,  BICO
received   $2,000,000.   In  addition,   Diasensor.com   may
endeavor,  at  its own expense, to obtain patents  on  other
inventions  relating  to  the  Noninvasive  Glucose  Sensor.
Diasensor.com  also guaranteed BICO the right  to  use  such
patented  technology in the development of  BICO's  proposed
implantable  closed-loop system, a  related  system  in  the
early stages of development.

In   December  1992,  BICO  and  Diasensor.com  executed  an
amendment  to the Purchase Agreement, which clarified  terms
of  the Purchase Agreement.  The amendment defines "Sensors"
to  include  all  devices for the noninvasive  detection  of
analytes  in  mammals or in other biological materials.   In
addition, the amendment provides for a royalty to be paid to
Diasensor.com in connection with any sales by  BICO  of  its
proposed closed-loop system.

Research  and  Development ("R&D") Agreement.  Diasensor.com
and BICO entered into an agreement dated January 20, 1992 in
connection  with  the  research  and  development   of   the
Noninvasive Glucose Sensor.  Pursuant to the agreement, BICO
will  continue  the  development of the Noninvasive  Glucose
Sensor,   including  the  fabrication  of  prototypes,   the
performance  of clinical trials, and the submission  to  the
FDA  of all necessary applications in order to obtain market
approval for the Noninvasive Glucose Sensor.  BICO will also
manufacture the models of the Noninvasive Glucose Sensor  to
be  delivered to Diasensor.com for sale (See, "Manufacturing
Agreement").  Upon the delivery of the completed models, the
research  and  development phase of the Noninvasive  Glucose
Sensor will be deemed complete.

Diasensor.com has agreed to pay BICO $100,000 per month  for
indirect costs beginning April 1, 1992, during the  15  year
term  of  the  agreement, plus all direct  costs,  including
labor.  BICO also received a first right of refusal for  any
program  undertaken  to  develop,  refine  or  improve   the
Noninvasive Glucose Sensor, and for the development of other
related  products.   In  July 1995, BICO  and  Diasensor.com
agreed  to  suspend billings, accruals of  amounts  due  and
payments  pursuant  to the R&D Agreement pending  the  FDA's
review.

Manufacturing  Agreement.   BICO and  Diasensor.com  entered
into  an agreement dated January 20, 1992, whereby BICO will
act as the exclusive manufacturer of the Noninvasive Glucose
Sensor  and  other  related  products.   Diasensor.com  will
provide BICO with purchase orders for the products and  will
endeavor to provide projections of future quantities needed.
The original Manufacturing Agreement called for the products
to  be manufactured and sold at a price to be determined  in
accordance  with  the  following  formula:  Cost  of   Goods
(including actual or 275% of overhead, whichever  is  lower)
plus  a  fee  of  30% of Cost of Goods.  In July  1994,  the
formula  was amended to be as follows: Costs of  Goods  Sold
(defined  as BICO's aggregate cost of materials,  labor  and
associated  manufacturing overhead) + a  fee  equal  to  one
third (1/3) of the difference between the Cost of Goods Sold
and    Diasensor.com's   sales   price   of   each   Sensor.
Diasensor.com's sales price of each Sensor is defined as the
price  paid  by any purchaser, whether retail or  wholesale,
directly  to  Diasensor.com for  each  Sensor.   Subject  to
certain  restrictions,  BICO may  assign  its  manufacturing
rights  to  a  subcontractor  with  Diasensor.com's  written
approval.  The term of the agreement is fifteen years.

Item  14.   Exhibits,  Financial  Statement  Schedules,  and
Reports on Form 8-K

(a)  1.   Financial Statements

The  financial statements, together with the report  thereon
of  the  Company's independent accountants, are included  in
this report on the pages listed below.

     Financial Statements                                                Page

     Report of Independent Certified Public Accountants
     Thompson Dugan, P.C.                                                F-1
     Consolidated Balance Sheets
     December 31, 1999 and 1998                                          F-2

     Consolidated Statements of Operations
     for the years ended December 31, 1999, 1998 and 1997                F-4

     Consolidated Statements of Stockholders' Equity
     for the years ended December 31, 1999, 1998 and 1997                F-5

     Consolidated Statements of Cash Flows
     for the years ended December 31, 1999, 1998 and 1997                F-6

     Notes to Consolidated Financial Statements
     December 31, 1999, 1998 and 1997                                    F-8


2.   Exhibits:

(b)  Reports on Form 8-K

     The  Company  filed a Form 8-K report dated  March  23,
     1999.   The items listed were Item 5, Other Events; and
     Item 7(c), Exhibits.

     The  Company  filed a Form 8-K report  dated  April  8,
     1999.  The items listed were Item 5, Other Events;  and
     Item 7(c), Exhibits.

     The  Company  filed a Form 8-K report  dated  April  8,
     1999.  The items listed were Item 5, Other Events;  and
     Item 7(c), Exhibits.

     The  Company  filed a Form 8-K report dated  April  23,
     1999.  The items listed were Item 5, Other Events;  and
     Item 7(c), Exhibits.

     The Company filed a Form 8-K report dated May 27, 1999.
     The  items listed were Item 5, Other Events;  and  Item
     7(c), Exhibits.

     The Company filed a Form 8-K report dated July 2, 1999.
     The  items listed were Item 5, Other Events;  and  Item
     7(c), Exhibits.

     The Company filed a Form 8-K report dated July 9, 1999.
     The  items listed were Item 5, Other Events;  and  Item
     7(c), Exhibits.

     The  Company filed a Form 8-K report dated  August  24,
     1999.  The items listed were Item 5, Other Events;  and
     Item 7(c), Exhibits.

     The Company filed a Form 8-K report dated September  9,
     1999.  The items listed were Item 5, Other Events;  and
     Item 7(c), Exhibits.

     The Company filed a Form 8-K report dated September 22,
     1999.  The items listed were Item 5, Other Events,  and
     Item 7(c), Exhibits.

     The Company filed a Form 8-K report dated September 22,
     1999.  The items listed were Item 5, Other Events;  and
     Item 7(c), Exhibits.

     The  Company filed a Form 8-K report dated  October  6,
     1999.  The items listed were Item 5, Other Events;  and
     Item 7(c), Exhibits.

     The  Company filed a Form 8-K report dated October  12,
     1999.  The items listed were Item 5, Other Events;  and
     Item 7(c), Exhibits.

     The  Company filed a Form 8-K report dated January  19,
     2000.  The items listed were Item 5, Other Events;  and
     Item 7(c), Exhibits.

     The  Company filed a Form 8-K report dated February  2,
     2000.   The  item listed was Item 5, Other Events;  and
     Item 7c, Exhibits.

     The  Company filed a Form 8-K report dated February  9,
     2000.  The items listed were Item 5, Other Events;  and
     Item 7(c), Exhibits.

     The  Company filed a Form 8-K report dated February 23,
     2000.  The items listed were Item 5, Other Events;  and
     Item 7(c), Exhibits.

     The  Company  filed a Form 8-K report  dated  March  2,
     2000.   The  item listed was Item 5, Other Events;  and
     Item 7(c), Exhibits.

(c)  Exhibits Required by Item 601 of Regulation S-K

          The  following exhibits required by  Item  601  of
          Regulation  S-K are filed as part of this  report.
          Except  as  otherwise  noted,  all  exhibits   are
          incorporated  by reference from exhibits  to  Form
          S-1  (Registration  #33-55200) filed  December  1,
          1992  or from exhibits to Form 10-K filings  prior
          to or subsequent to that date.

3.1       Articles of Incorporation as filed March 20, 1972

3.2       Amendment to Articles filed May 8, 1972

3.3       Restated Articles filed June 19, 1975

3.4       Amendment to Articles filed February 4, 1980

3.5       Amendment to Articles filed March 17, 1981

3.6       Amendment to Articles filed January 27, 1982

3.7       Amendment to Articles filed November 22, 1982

3.8       Amendment to Articles filed October 30, 1985

3.9       Amendment to Articles filed October 30, 1986

3.10      By-Laws

3.11 (1)  Amendment to Articles filed February 7, 2000

4.1       Incentive Stock Option Plan and Schedule

4.2       Form of Warrant and Schedule

____________________________

(1)   Filed as an exhibit to this Form 10-K filed March 27, 2000



Conformed Copy
                         SIGNATURES

      Pursuant to the requirements of Section 13 or 15(d) of
the Securities Exchange Act of 1934, the Registrant has duly
caused  this  report  to be signed  on  its  behalf  by  the
undersigned, thereunto duly authorized, on the 27th  day  of
March 2000.

                            BIOCONTROL TECHNOLOGY, INC.


                            By:   /s/ David L. Purdy

                                  David L. Purdy
                                  President,Treasurer,
                                  Director

     Pursuant to the requirements of the Securities Exchange
Act  of  1934,  this  report has been signed  below  by  the
following  persons on behalf of the Registrant  and  in  the
capacities and on the dates indicated.

Signature                     Title                         Date


/s/ Fred E. Cooper            Director, CEO,                March 27, 2000
Fred E. Cooper                (principal executive
                              officer, principal
                              financial officer and
                              principal accounting
                              officer)

/s/ Anthony J. Feola          Senior Vice President,        March 27, 2000
Anthony J. Feola              Director


/s/ Glenn Keeling             Director                      March 27, 2000
Glenn Keeling


/s/ Stan Cottrell             Director                      March 27, 2000
Stan Cottrell

/s/ Paul W. Stagg             Director                      March 27, 2000
Paul W. Stagg




                           THOMPSON DUGAN
                    CERTIFIED PUBLIC ACCOUNTANTS
                      ________________________

                         Pinebridge Commons
                       1580 McLaughlin Run Rd.
                        Pittsburgh, PA 15241


         Report of Independent Certified Public Accountants


Board of Directors
Biocontrol Technology, Inc.

      We have audited the accompanying consolidated balance sheets of
Biocontrol  Technology, Inc. and its subsidiaries as of December  31,
1999 and 1998, and the related consolidated statements of operations,
changes in stockholders' equity (deficiency) and cash flows for  each
of  the  three  years in the period ended December 31,  1999.   These
financial  statements  are the responsibility  of  the  Corporation's
management.   Our  responsibility is to express an opinion  on  these
financial statements based on our audits.

      We  conducted our audits in accordance with generally  accepted
auditing standards.  Those standards require that we plan and perform
the  audit to obtain reasonable assurance about whether the financial
statements  are  free of material misstatement.   An  audit  includes
examining,  on  a  test basis, evidence supporting  the  amounts  and
disclosures  in  the  financial statements.  An audit  also  includes
assessing  the  accounting principles used and significant  estimates
made  by  management,  as well as evaluating  the  overall  financial
statement  presentation.   We  believe  that  our  audits  provide  a
reasonable basis for our opinion.

      In  our opinion, such consolidated financial statements present
fairly, in all material respects, the consolidated financial position
of  Biocontrol Technology, Inc. and its subsidiaries as  of  December
31,  1999  and 1998, and the consolidated results of their operations
and  their cash flows for each of the three years in the period ended
December  31,  1999 in conformity with generally accepted  accounting
principles.

       The  accompanying  financial  statements  have  been  prepared
assuming  that the Corporation will continue as a going concern.   As
discussed in Note B to the financial statements, the Corporation  has
incurred  losses  and negative cash flows from operations  in  recent
years through December 31, 1999 and these conditions are expected  to
continue   through  2000,  raising  substantial   doubt   about   the
Corporation's  ability to continue as a going concern.   Management's
plans in regard to these matters are also discussed in Note B.  These
financial statements do not include any adjustments that might result
from the outcome of this uncertainty.


Pittsburgh, Pennsylvania
March 24, 2000



<PAGE> F-1
<TABLE>
                              Biocontrol Technology, Inc. and Subsidiaries
                                       Consolidated Balance Sheets
<CAPTION>

                                                            Dec. 31, 1999    Dec. 31, 1998
                                                            -------------    -------------
<S>                                                        <C>              <C>
CURRENT ASSETS
 Cash and equivalents (note A)                              $  10,827,631    $   125,745
 Accounts receivable - net of allowance for doubtful accounts
   of $63,679 at Dec. 31, 1999 and $27,059 at Dec. 31, 1998       27,263          55,959
 Inventory - net of valuation allowance (notes A and D)           10,308          74,515
 Notes  receivable (note C)                                      200,000               0
 Interest receivable (note C)                                      2,701               0
 Prepaid expenses                                                192,246         170,544
 Advances - Officers                                             125,290               0
                                                            -------------    -------------

                 TOTAL CURRENT ASSETS                         11,385,439         426,763


PROPERTY, PLANT AND EQUIPMENT (notes A and H)
 Building                                                     1,207,610        1,429,906
 Land                                                           133,750          133,750
 Leasehold improvements                                       1,435,319        1,477,573
 Machinery and equipment                                      4,676,330        5,014,103
 Furniture, fixtures & equipment                                841,308          794,740
                                                            -------------    -------------
  Subtotal                                                    8,294,317        8,850,072

 Less accumulated depreciation                                4,704,539        4,244,650
                                                            -------------    -------------
                                                              3,589,778        4,605,422

OTHER ASSETS
 Related Party Receivables
  Notes receivable - (notes C and L)                          1,491,261        1,223,900
  Interest receivable - (notes C and L)                          22,023          155,628
  Advances-Officers                                                   0           90,779
                                                           -------------    -------------
                                                              1,513,284        1,470,307
  Allowance for related party receivables                    (1,340,560)      (1,270,307)
                                                           -------------     ------------
                                                                172,724          200,000

 Notes receivable - (notes C)                                    12,000           142,493
 Interest receivable                                              4,235            19,778
 Goodwill, net of amortization - (note A and O)                       0         4,423,421
 Patents, net of amortization (note A)                                0             2,433
 Investment in unconsolidated subsidiary                        485,284                 0
 Other assets                                                    36,376            15,259
                                                            -------------    -------------
                                                                710,619         4,803,384
                                                            -------------    -------------
         TOTAL ASSETS                                       $15,685,836      $  9,835,569
                                                            =============    =============

The accompanying notes are an integral part of these statements.

</TABLE>
<PAGE>  F-2
<TABLE>
                                    Biocontrol Technology, Inc. and Subsidiaries
                                            Consolidated Balance Sheets
                                                    (Continued)
<CAPTION>

                                                                     Dec. 31,1999    Dec. 31, 1998
                                                                     ------------    -------------
<S>                                                                 <C>              <C>
CURRENT LIABILITIES
  Accounts payable                                                   $    759,733     $  1,750,188
  Current portion of long-term debt (note G)                            4,159,684        4,552,178
  Current portion of capital lease obligations (note H)                    76,017           99,061
  Debentures payable (note I)                                                   0        2,825,000
  Accrued liabilities (note E)                                          1,794,370        1,096,644
  Escrow payable (note J)                                                   2,700            2,700
                                                                     ------------    -------------
        TOTAL CURRENT LIABILITIES                                       6,792,504       10,325,771

LONG-TERM LIABILITIES
  Capital lease obligations (note H)                                    1,336,147        1,412,880
  Long-term debt (note G)                                                   2,240                0
                                                                    -------------    -------------
                                                                        1,338,387        1,412,880


COMMITMENTS AND CONTIGENCIES (notes M)

UNRELATED INVESTORS'INTEREST
   IN SUBSIDIARY (note A)                                                       0           24,162

STOCKHOLDERS' EQUITY (DEFICIENCY) (notes J and P)

   Common stock, par value $.10 per share,
   authorized 975,000,000 shares, issued and
   outstanding 956,100,496 at Dec. 31, 1999 and
   420,773,568 at Dec. 31, 1998                                        95,610,050       42,077,357
   Series F 4% convertible preferred stock, par value $10
   per share, authorized 400,000 shares issuable in
   series, shares issued and outstanding 72,000 at
   December 31, 1999 and none at December 31, 1998.                       720,000                0
   Additional paid-in capital                                          85,608,192       92,725,285
   Notes receivable issued for common stock-related party (note L)              0          (25,000)
   Warrants                                                             6,791,161        6,396,994
   Accumulated deficit                                               (181,174,458)    (143,101,880)
                                                                    -------------    -------------
          TOTAL STOCKHOLDERS' EQUITY (DEFICIENCY)                       7,554,945       (1,927,244)
                                                                    --------------   --------------
          TOTAL LIABILITIES AND
            STOCKHOLDER' EQUITY (DEFICIENCY)                        $  15,685,836    $   9,835,569
                                                                    =============    =============

The accompanying notes are an integral part of these statements.

</TABLE>
<PAGE> F-3
<TABLE>
                                 BIOCONTROL  TECHNOLOGY,  INC.  AND  SUBSIDIARIES
                                       CONSOLIDATED  STATEMENTS  OF  OPERATIONS

<CAPTION>

                                                             Year Ended December 31,
                                                    1999              1998             1997
                                                -------------    -------------    -------------
<S>                                             <C>               <C>             <C>
Revenues
  Net Sales                                      $  112,354        $ 1,145,968     $  1,155,907
  Interest income                                 1,031,560            182,033          165,977
  Other income                                       52,897             50,212          104,250
                                                -------------    -------------    -------------
                                                  1,196,811          1,378,213        1,426,134

Costs and expenses
  Cost of products sold                             147,971            587,821          641,331
  Research and development (notes A and L)        4,430,819          6,340,676        6,977,590
  General and administrative                     12,884,237         10,673,265       12,695,628
  Amortization of goodwill                        4,463,137            887,080
  Loss on disposal of assets                            376            531,066            8,518
  Debt issue costs (note A)                       3,458,300          1,865,682        3,306,812
  Impairment loss                                   637,530               -                -
  Warrant extensions - Subsidiary (note J)        4,669,483               -           4,046,875
  Interest expense                                1,373,404            481,025          315,624
  Beneficial convertible debt feature (note A)    7,228,296          3,799,727        6,278,853
                                                 -------------    -------------    -------------
                                                 39,293,553         25,166,342       34,271,231
                                                 -------------    -------------    -------------

Loss before unrelated investors' interest       (38,096,742)       (23,788,129)     (32,845,097)
Unrelated investors' interest in net loss of
  subsidiary                                         24,164          1,385,485        2,411,920
                                                -------------    -------------    -------------

  Net loss                                     $(38,072,578)      $(22,402,644)   $ (30,433,177)
                                                =============    =============    ==============
  Loss per common share (notes A)              $      (0.05)     $       (0.08)   $       (0.43)
                                                =============    ==============   ==============

The accompanying notes are an integral part of these statements.
</TABLE>
<PAGE> F-4
<TABLE>

                  Biocontrol Technology, Inc. and Subsidiaries

                Consolidated Statements of Stockholders' Equity

<CAPTION>

								                  Note rec.
                              Preferred Stock      Common Stock                  issued for  Additional
                              ---------------    ----------------                Common Stk   Paid in      Accumulated
                              Shares   Amount    Shares      Amount   Warrants    Rel Party   Capital        Deficit        Total
                              ------- --------  ---------  ---------- ----------  --------- -----------  --------------  -----------
<S>                            <C>     <C>     <C>         <C>        <C>        <C>       <C>           <C>            <C>
Balance at Dec. 31, 1996            - $      -  49,213,790  $4,921,379 $6,907,162  $      - $ 82,354,749  $(90,266,059)  $3,917,231
                             -------- -------- -----------  ---------- ----------  -------- ------------  ------------   ----------
Proceeds from stk offering          -        -   1,705,000     170,500          -         -      765,648             -      936,148
Conversion of preferred stk.  (22,000)(220,000)  6,913,366     691,337          -         -     (471,337)            -            -
Proceeds from sale of
  preferred stk.-Series B      22,000  220,000           -           -          -         -    1,807,000             -    2,027,000
Conversion of debentures            -        -  80,599,022   8,059,902          -         -   11,554,077             -   19,613,979
Warrant extensions - sub.           -        -           -           -          -         -    2,108,421             -    2,108,421
Change in ownership int-sub.        -        -           -           -          -         -        2,421             -        2,421
Warrants exercised                  -        -     152,800      15,280   (510,168)  (25,000)     533,088             -       13,200
Issuance of convertible
 debt                               -        -           -           -          -         -    6,278,853             -    6,278,853
  Net loss                          -        -           -           -          -         -            -   (30,433,177) (30,433,177)
                             --------  -------  ----------  ----------  ---------   -------    ---------   -----------  -----------
Balance at Dec. 31, 1997            -        - 138,583,978  13,858,398  6,396,994   (25,000) 104,932,920  (120,699,236)   4,464,076
                             --------  -------  ----------  ----------   --------   -------   ----------   ------------ ----------
Proceeds from stock offering        -        -   2,055,000     205,500          -         -       22,423             -      227,923
Conversion of debentures            -        - 280,134,590  28,013,459          -         -  (16,029,785)            -   11,983,674
Issuance of convertible debt        -        -           -           -          -         -    3,799,727             -    3,799,727
  Net Loss                          -        -           -           -          -         -            -   (22,402,644) (22,402,644)
                             -------- --------  ----------  ---------- ----------  ---------  ----------  ------------ ------------
Balance at Dec. 31, 1998            -        - 420,773,568  42,077,357  6,396,994   (25,000)  92,725,285  (143,101,880)  (1,927,244)
                             -------- -------- -----------  ---------- ----------  -------- ------------  ------------   ----------
Proceeds from stk offering          -        -  19,625,691   1,962,569          -         -     (914,485)            -    1,048,084
Proceeds from sale of
  Preferred stk.-Series F      72,000  720,000           -           -          -         -       90,000             -      810,000
Conversion of debentures             -        - 515,013,737  51,501,374          -         -  (19,444,872)            -   32,056,502
Warrant extensions - sub.           -        -           -           -          -         -    5,897,332             -    5,897,332
Issuance of convertible debt        -        -           -           -          -         -    7,228,296             -    7,228,296
Repayment of subscription recv.     -        -           -           -          -    25,000            -             -       25,000
Warrants exercised                  -        -     687,500      68,750     (8,968)        -       26,636             -       86,418
Warrants granted                    -        -           -           -    403,135         -            -             -      403,135
  Net loss                          -        -           -           -          -         -            -   (38,072,578) (38,072,578)
                             --------  -------  ----------  ----------  ---------   -------    ---------    -----------  -----------
Balance at Dec. 31, 1999       72,000 $720,000 956,100,496 $95,610,050 $6,791,161  $      0  $85,608,192 $(181,174,458) $ 7,554,945
                             ======== ======== =========== =========== =========== ========= =========== ==============  ===========



The accompanying notes are an integral part of these statements.
</TABLE>
<PAGE> F-5
<TABLE>



                                    Biocontrol Technology, Inc. and Subsidiaries
                                        Consolidated Statements of Cash Flows
<CAPTION>

                                                                                  Year ended December 31,

                                                                         1999            1998           1997
                                                                      -------------  -------------  -------------
<S>                                                                   <C>            <C>            <C>
Cash flows used by operating activities:
Net loss                                                               $(38,072,578)  $(22,402,644)  $(30,433,177)
   Adjustments to reconcile net loss to net
    cash used by operating activities:
    Depreciation                                                            773,696        815,125        846,470
    Amortization                                                          4,465,570        891,412          4,332
    Loss on disposal of assets                                              177,000        531,066           -
    Impairment loss                                                         637,530           -              -
    Unrelated investors' interest in susidiary                              (24,164)    (1,385,485)    (2,411,920)
    Stock issued in exchange for services                                   148,484        (22,063)       936,148
    Stock issued in exchange for services by subsidiary                        -              -               600
    Debenture interest converted to stock                                   211,503        106,894        164,055
    Premium for extension on Debenture                                         -           680,500        527,113
    Beneficial convertible debt feature                                   7,228,296      3,799,727      6,278,853
    Provision for potential loss on notes receivable                         70,253      1,270,307           -
    Warrants granted                                                         403,135           -              -
    Warrants and warrant extentions by subsidiaries                        5,897,332           -         4,046,875
    (Decrease)increase in allowance for losses on accounts receivable        36,620         12,128       (180,909)
    (Increase) decrease in accounts receivable                               (7,924)       268,195       (137,651)
    (Increase) decrease in inventories                                       90,052        987,948       (586,029)
    Increase in inventory valuation allowance                               (25,845)       779,050      2,092,131
    (Increase) decrease in prepaid expenses                                 (21,702)       (31,495)       113,397
    (Increase) decrease in other assets                                    (146,408)        36,927          3,713
    Increase (decrease) in accounts payable                                (949,578)     1,078,124       (388,636)
    Increase (decrease) in other liabilities                                697,726        845,136         66,737
    (Decrease) in deferred revenue                                             -          (116,146)       (63,854)
                                                                       -------------  -------------  -------------
      Net cash flow used by operating activities                        (18,411,002)   (11,855,294)   (19,121,752)
                                                                       -------------  -------------  -------------
Cash flows from investing activities:
  Purchase of property, plant and equipment                                (641,371)      (111,216)      (845,512)
  Disposal of property, plant and equipment                                 175,000           -              -
  (Increase) in notes receivable                                           (337,928)       (31,493)      (313,000)
  Payments received on notes receivable                                     141,974           -              -
  Deposit on equipment                                                         -              -          (300,000)
  (Increase in interest receivable                                          (25,774)       (97,929)       (23,519)
  Acquisition of ICTI                                                          -        (1,030,000)          -
  Acquisition of unconsolidated subsidiary                                  (525,000)          -              -
                                                                        -------------  -------------  -------------
    Net cash used by investing activites                                 (1,213,099)    (1,270,638)    (1,482,031)
                                                                        -------------  -------------  -------------

Cash flows from financing activities:
  Proceeds from stock offering                                              900,000           -              -
  Proceeds from sale by subsidiary of its common stock                         -              -             3,500
  Proceeds from warrants exercised                                           86,018           -            13,200
  Proceeds from sale of Preferred stock-Series F                            810,000           -              -
  Proceeds from sale of Preferred stock-Series B                               -              -         2,027,000
  Proceeds from debentures payable                                       33,150,000     10,720,000     20,230,000
  Payments on debentures payable                                         (4,130,000)          -        (2,605,833)
  Payments on notes payable                                                (465,650)      (675,393)       (41,904)
  Increase in notes payable                                                  75,396        550,000           -
  Payments on capital lease obligations                                     (99,777)      (101,997)       (65,987)
                                                                       -------------  -------------  -------------
      Net cash provided by financing activities                          30,325,987     10,492,610     19,559,976
                                                                       _____________  _____________  _____________

      Net increase (decrease) in cash                                    10,701,886     (2,633,322)    (1,043,807)

  Cash and cash equivalents, beginning of year                              125,745      2,759,067      3,802,874
                                                                       -------------  -------------  -------------
  Cash and cash equivalents, end of year                               $ 10,827,631   $    125,745     $2,759,067
                                                                       =============  =============  =============

The accompanying notes are an integral part of these statements.
</TABLE>
<PAGE>F-6
<TABLE>

                                    Biocontrol Technology, Inc. and Subsidiaries
                                        Consolidated Statements of Cash Flows
                                                     (Continued)

<CAPTION>
                                                                                Year ended December 31,
                                                                         1999             1998            1997
                                                                     -------------   -------------   -------------
<S>                                                                  <C>             <C>             <C>
Supplemental Information:
           Interest paid                                              $    966,713   $    364,716     $   155,647
                                                                      =============   ============    ============

Supplemental schedule of non-cash
investing and financing activities:

Acquisition of ICTI with note payable                                 $       -      $  3,350,000    $       -
                                                                      =============    ===========    ============

Acquisition of property under a capital lease:
           Equipment                                                  $       -      $     24,050    $    154,539
                                                                      =============    ===========    ============
Capital Lease Termination
              Reduction of capital lease obligation                   $       -      $  1,184,288    $       -
                                                                      =============  =============    ============
              Reduction of property
                 Construction of Progress                             $       -      $  1,459,110    $       -
                 Land                                                 $       -           112,500            -
                                                                      -------------    -------------   -----------
                                                                      $       -      $  1,571,610    $       -
                                                                      =============    =============   ===========


Conversion of Series B-preferred stock for common stock:
          Common stock                                                $       -      $      -        $    220,000
          Additional paid-in capital                                          -             -           1,807,000
                                                                      ------------   ------------     ------------
                                                                      $       -      $      -        $  2,027,000
                                                                      =============  ============    =============

Conversion of debentures for common stock                             $ 31,845,000   $ 11,876,780    $ 19,449,924
                                                                      =============  =============   =============

Stock granted to related party for note receivable                    $       -      $       -       $     25,000
                                                                      =============  =============   =============
Conversion of warrants for common stock                               $       -      $       -       $    510,168
                                                                      =============  =============   =============


The accompanying notes are an integral part of these statements.
</TABLE>





NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
          POLICIES

1.   Organization

     Biocontrol  Technology, Inc. - BICO  (the  Company)  and  its
     subsidiaries  are  engaged in the development,  manufacturing
     and   marketing   of  biomedical  products   and   biological
     remediation products.

2.   Principles of Consolidation

     The  consolidated financial statements include  the  accounts
     of: Diasensor.com, Inc. (Diasense) a 52% owned subsidiary  as
     of  December 31, 1999 and 1998; Petrol Rem, Inc., a 75% owned
     subsidiary as of December 31, 1999 and a 67% owned subsidiary
     as  of December 31, 1998; IDT, Inc., a 99.1% owned subsidiary
     as  of  December  31,  1999 and 1998; International  Chemical
     Technologies, Inc., a 58.4% owned subsidiary as  of  December
     31,  1999  and 1998, Barnacle Ban Corporation, a  100%  owned
     subsidiary  as  of  December 31, 1999 and 1998,  and  Ceramic
     Coatings  Technologies, Inc., a 100% owned subsidiary  as  of
     December 31, 1999. All significant intercompany accounts  and
     transactions  have  been eliminated.   Subsidiary  losses  in
     excess  of  the  unrelated investors'  interest  are  charged
     against the Company's interest.

3.   Cash and Cash Equivalents

     For  purposes  of  the statement of cash flows,  the  Company
     considers  all highly liquid investments with a  maturity  of
     three months or less at acquisition to be cash equivalents.

4.   Inventory

     Inventory is valued at the lower of cost (first-in, first-out
     method)  or  market.   An  inventory valuation  allowance  is
     provided  against  finished  goods  and  raw  materials   for
     products for which a market has not yet been established.

5.   Property and Equipment

     Property  and  equipment are accounted for at  cost  and  are
     depreciated over their estimated useful lives on a  straight-
     line  basis.   Amortization of assets recorded under  capital
     leases  is  included  with depreciation expense.   Impairment
     losses   are  recognized  when  management  determines   that
     operating  conditions  raise  doubts  about  the  ability  to
     recover the carrying value of particular assets.

6.   Patents

     Patents  are  amortized  over their  legal  or  useful  lives
     whichever  is less.  Accumulated amortization on patents  was
     $96,941   and  $94,508  at  December  31,  1999,  and   1998,
     respectively.

7.   Goodwill

     Goodwill,  which  represents the  excess  cost  of  purchased
     companies over the fair value of their net assets at dates of
     acquisition, are amortized on a straight line basis over five
     years.

8.   Investment in Unconsolidated Subsidiary

     During  1999 the Company acquired a 10% interest in  American
     Inter-Metallics, Inc. (AIM) for $525,000.  This investment is
     being  reported  on the equity basis since  the  Company  has
     significant  influence via membership on  the  AIM  board  of
     directors.   AIM  has  not yet commenced operations  and  has
     reported  no  net income or loss through December  31,  1999.
     The  difference  between the investment of $525,000  and  the
     underlying  equity in AIM's net assets was  $476,595  and  is
     being amortized as goodwill over a 5 year period.

9.   Loss Per Common Share

     Loss  per  common  share is based upon the  weighted  average
     number  of  common  shares  outstanding,  which  amounted  to
     695,400,191  shares in 1999, 266,362,526 shares in  1998  and
     71,415,351  shares  in  1997, respectively.  Shares  issuable
     under  stock options, stock warrants, convertible  debentures
     and   convertible   preferred   stock   are   excluded   from
     computations, as their effect is antidilutive.

10.  Research and Development Costs

     Research  and development costs are charged to operations  as
     incurred.     Machinery,   equipment   and   other    capital
     expenditures,  which  have  alternative  future  use   beyond
     specific research and development activities, are capitalized
     and depreciated over their estimated useful lives.

11.  Income Taxes

     The   Company   previously  adopted  Statement  of   Financial
     Accounting Standards No. 109 (FAS 109), Accounting for  Income
     Taxes,  which  requires  the asset  and  liability  method  of
     accounting for income taxes.  Enacted statutory tax rates  are
     applied  to temporary differences arising from the differences
     in  financial statement carrying amounts and the tax bases  of
     existing assets and liabilities. Due to the uncertainty of the
     realization of income tax benefits, (Note K), the adoption  of
     FAS  109  had  no  effect on the financial statements  of  the
     Company.

12.  Interest

     The  Company follows the policy of capitalizing interest as  a
     component  of  the  cost  of  property,  plant  and  equipment
     constructed for its own use.  Total interest incurred for  the
     periods  December  31,  1999, 1998, and 1997  was  $1,373,404,
     $589,300,  and  $528,942, respectively, of  which  $1,373,404,
     $481,025,   and   $315,624,  respectively,  was   charged   to
     operations.

13.  Estimates and Assumptions

     The  preparation  of financial statements in  conformity  with
     generally  accepted accounting principles requires  management
     to  make  estimates and assumptions that affect  the  reported
     amounts of assets and liabilities and disclosure of contingent
     assets and liabilities at the date of the financial statements
     and  the reported amounts of revenues and expenses during  the
     reporting  period.   Actual results could  differ  from  those
     estimates.  The Company has established allowances based  upon
     management's  evaluation of inventories, accounts  receivable,
     and  receivables from related parties and amortizes intangible
     assets  such  as  goodwill and patents over  estimated  useful
     lives.

14.  Common Stock Warrants

     The  Company  recognizes cost on warrants granted or  extended
     based  upon the minimum value method.  Under this method,  the
     warrants  are valued by reducing the current market  price  of
     the  underlying  shares by the present value of  the  exercise
     price  discounted, at an estimated risk-free interest rate  of
     5% and assuming no dividends.

15.  Debt Issue Costs
     The  Company follows the policy of expensing debt issue  costs
     on  debentures during the period of debenture issuance.  Total
     debt  issue costs incurred for the periods December 31,  1999,
     1998,  and  1997 were $3,458,300, $1,865,682, and  $3,306,812,
     respectively.

16.  Concentration of Credit Risk
     Financial  instruments, which potentially subject the  Company
     to   significant  concentrations  of  credit   risk,   consist
     principally  of  cash  investments  at  commercial  banks  and
     receivables from officers and directors of the Company.   Cash
     and  cash  equivalents  are temporarily invested  in  interest
     bearing   accounts   in  financial  institutions,   and   such
     investments  may  be  in excess of the FDIC  insurance  limit.
     Receivables from directors and officers of the Company (Note C
     and  L)  are unsecured and represent a concentration of credit
     risk due to the common employment and financial dependency  of
     these individuals on the Company.

17.  Comprehensive Income
     The Company's consolidated net income (loss) is substantially
     the  same  as  comprehensive income  to  be  disclosed  under
     Statement of Financial Accounting Standards No. 130.

18.  Beneficial Convertible Debt Feature
     Beneficial   conversion  terms  included  in  the   Company's
     convertible debentures are recognized as expense and credited
     to  additional  paid  in capital at the time  the  associated
     debentures are issued.

19.  Reclassification
     Certain  items included in the financial statements of  prior
     periods  have been reclassified to conform to classifications
     in  the 1999 financial statements.  Such reclassification had
     no effect on prior year reported net losses.

NOTE B  - OPERATIONS AND LIQUIDITY

     The  Company  and its subsidiaries have incurred  substantial
     losses  in  1999  and in prior years and  have  funded  their
     operations and product development primarily through the sale
     of   common  and  preferred  stock  and  issuance   of   debt
     instruments.    Until  such  time  that   products   can   be
     successfully  developed and marketed,  the  Company  and  its
     subsidiaries will continue to need to fulfill working capital
     requirements through the sale of stock and issuance of  debt.
     The inability of the Company to continue its operations as  a
     going   concern   would   impact   the   recoverability   and
     classification of recorded asset amounts.

     The  ability  of  the  Company to continue  in  existence  is
     dependent  on  its having sufficient financial  resources  to
     complete   the   research   and  development   necessary   to
     successfully  bring  products to market and  for  marketplace
     acceptance.  As a result of its significant losses,  negative
     cash   flows  from  operations  and  significant  accumulated
     deficits  for each of the periods ending December  31,  1999,
     1998 and 1997, there is substantial doubt about the Company's
     ability to continue as a going concern.

     Management  believes  that  its currently  available  working
     capital and funds raised from sales of stock and future  debt
     issuance   will   be   sufficient  to  meet   its   projected
     expenditures  for  a  period of at least twelve  months  from
     December 31, 1999.

NOTE C - NOTES RECEIVABLE

     Notes receivable due from various related and unrelated parties
     consisted of:

                                            Dec. 31,     Dec. 31,
                                              1999         1998
  Related Parties
  Notes receivable from Fred E. Cooper,                $  523,900
  Chief Executive Officer,
  payable upon demand with interest
  ranging from 8.25% to 12%.

  Note receivable from Fred. E Cooper,    $  747,087
  Chief Executive Officer, dated
  April 28, 1999, in the amount of
  $777,400, payable in monthly
  installments of $9,427 with a final
  balloon payment on May 31, 2002.
  Interest is accrued at a Rate of
  8% per annum.

  Notes receivable from Glenn Keeling,                    265,000
  Director, payable upon demand with
  interest ranging of 8.25% to 10%.

  Note receivable from Glenn Keeling,        275,869
  Director, dated April 28, 1999, in
  the amount of $296,358, payable in
  monthly installments of $4,184 with
  a final balloon payment on May 1,
  2002.  Interest is accrued at a
  rate of 8% per annum.

  Note receivable from T.J. Feola,                        235,000
  Director, payable upon demand with
  an interest rate of 8.25%.

  Note Receivable from T.J. Feola,           245,581
  Director, dated April 28, 1999,
  in the amount of $259,477, payable
  in monthly Installments of $3,676
  with a final balloon payment on
  May 31,2002.  Interest is accrued
  at a rate of 8% per annum.


  Note receivable from Allegheny             172,724     200,000
  Food Services, Inc. of which
  Joseph Kondisko, a former director,
  is principal owner, payable in
  monthly installments of $3,630,
  including interest at 9.25%,
  with a final balloon payment on
  April 1, 2001.

  Note receivable from Bio Med, Inc.          50,000         -
  (dba B-A-Champ.com). A company
  substantially owned by
  Fred E. Cooper, Chief Executive
  Officer. Note is due on November 8,
  2000 and bears interest of
  6% per annum.

  Unrelated Parties                           12,000       12,000
  Note receivable from an
  individual, payable upon
  Demand with 8.75% interest.

  Note receivable from HemoCleanse              -         130,493
  Inc, payable on demand after
  December 31, 2002 with interest
  accrued at a rate of 20% per annum.

  Note receivable from an                    200,000         -
  individual, due on November 15,
  2000 with interest at prime plus
  2% (10.50% at December 31, 1999).
                                           _________     _________
                                           1,703,261     1,366,393
  Less current notes receivable              200,000             0
                                           _________     _________
  Noncurrent                             $ 1,503,261    $1,366,393
                                         ===========    ==========

     Accrued interest receivable on the related party notes as  of
     December   31,  1999  and  1998  was  $22,023  and  $155,628,
     respectively.

     Due  to  the  financial dependency of the above officers  and
     directors  on  the Company, an allowance of   $1,340,560  and
     $1,270,307  has  been provided as of December  31,  1999  and
     1998, respectively.

NOTE D - INVENTORY

     Inventories consisted of the following as of:

                                    Dec. 31,         Dec. 31,
                                      1999             1998

Raw materials                    $  3,504,708     $  3,498,976
Finished goods                        858,805          954,589
                                  ____________     ____________
                                   4,363,513        4,453,565
Less valuation allowance          (4,353,205)      (4,379,050)
                                  ____________     ____________

                                 $     10,308     $    74,515
                                  ============     ============

NOTE E - ACCRUED LIABILITIES

     Accrued liabilities consisted of the following as of:

                                 Dec. 31,       Dec. 31,
                                   1999           1998
                               __________      __________
      Current
      Accrued interest          $  681,068     $  276,378
      Accrued payroll            1,027,147        733,657
      Accrued payroll taxes         35,362          1,919
        and withholdings
      Accrued vacation              33,038         46,654
      Other accrued liabilities     17,755         38,036
                                 _________      _________
                                $1,794,370     $1,096,644
                                ==========     ==========

NOTE F - BUSINESS SEGMENTS

The   Company   operates  in  three  reportable  business   segments:
Biomedical  devices,  which  includes the  operations  of  Biocontrol
Technology,  Inc.,  and  Diasensor.com, Inc.;  Bioremediation,  which
includes  the  operations of  Petrol  Rem,  Inc.;  and  Marine  Paint
Products,  which includes the operations of Barnacle Ban Corporation.
Following  is  summarized  financial information  for  the  Company's
reportable segments:




<TABLE>
                             Biomedical  Bioremediation   Marine      All    Consolidated
                             Devices                      Paint       Other
                                                          Products
<S>                         <C>              <C>          <C>       <C>      <C>

1999
Sales to external customers      82,056         26,693            0     3,599       112,348
Cost of products sold           133,288         14,683            0         0       147,971
Gross profit                    (51,232)        12,010            0         0       (39,222)
Identifiable assets          15,018,258        226,760       17,968   422,850    15,685,836
Capital expenditures            262,954              0            0   378,417       641,371
Depreciation & amortization   5,108,855         34,351            0    96,060     5,239,266

1998
Sales to external customers   1,028,484         45,382      40,835      31,267     1,145,968
Cost of products sold           483,388         33,061      32,777      38,595       587,821
Gross profit (Loss)             545,096         12,321       8,058      (7,328)      558,147
Identifiable assets           8,614,498        168,315       8,770   1,043,986     9,835,569
Capital expenditures            105,827              0           0       5,389       111,216
Depreciation & amortization   1,563,366         36,061       5,938     105,504     1,710,869

1997
Sales to external customers $   880,919       $138,362    $136,624  $        0  $  1,155,905
Cost of product sold            445,843         88,178     107,310           0       641,331
Gross profit                    435,076         50,184      29,314           0       514,574
Identifiable assets          11,122,314        602,460      56,860   1,199,666    12,981,300
Capital expenditures            661,095          4,460       8,680     325,816     1,000,051
Depreciation & amortization     720,150         33,976       2,751      93,925       850,802

</TABLE>

NOTE G - LONG TERM DEBT

Long term debt consisted of the following as of:
                                                     Dec. 31,       Dec. 31,
                                                       1999           1998

Note Payable to individuals with interest at       $     -      $    250,000
prime   plus   2%,   collateralized   by   a
confession of judgement, payable in  monthly
installments   of   $60,000   beginning   on
February  10,  1999  with  a  final  balloon
payment  of  all  remaining  principal   and
interest on May 10, 1999.

Note   Payable  in  connection  with   stock        2,900,000      2,900,000
purchase  agreement for  58.4%  interest  in
International  Chemical  Technologies,  Inc.
(ICTI). The note bears interest at a rate of
8%  and  is collateralized by the shares  of
ICTI purchased in the transaction.  The note
is   payable  in  monthly  installments   as
follows:   (I) on   the first  day  of  each
calendar month from April 1,1998 through and
including  September  1,  1998  a  principal
payment of $ 150,000 per month plus interest
(ii)    on  October  1,  1998,  a  principal
payment  of $1,000,000 plus accrued interest
(iii)   on  the  first day of each  calendar
month  from  November 1,  1998  through  and
including   November  1,  1999  a  principal
payment  of $ 100,000 per month plus accrued
interest  and  (iv)  on December 1,  1999  a
final   payment   equal  to  the   remaining
outstanding  principal  balance   plus   all
accrued  interest thereon.  At December  31,
1998, the Company was, and continues to  be,
in  default  on  the  terms  of  this  loan.
Accordingly,  the  unpaid balance  could  be
declared immediately due and payable at  the
option of the lender.

Note  Payable  by the Company's  subsidiary,        1,191,667      1,191,667
International  Chemical  Technologies,  Inc.
(ICTI)  to,   it's former shareholder.   The
loan  is  guaranteed  by  the  Company   and
collateralized   by   all    tangible    and
intangible assets of ICTI, and assignment of
ICTI's   interest  in  its  lease  for   its
production   facilities.    Principle    and
interest  at 9.5% per annum are  payable  in
thirty-five equal  monthly  installments  of
$36,111 each commencing on April 1,1998 with
a  final  payment of all remaining principal
and  interest  due  on March  1,  2001.   At
December  31,  1999, the  Company  was,  and
continues to be in default on the  terms  of
this  loan.  Accordingly, the unpaid balance
could   be  declared  immediately  due   and
payable at the option of the lender.

Commercial Premium Finance Agreement payable                          53,296
in   nine  monthly  installments  of  $7,818
including interest at 8% per annum beginning
November 1, 1998.

Commercial Premium Finance Agreement payable           66,187
in  nine  monthly  installments  of  $ 9,697
including  interest  at   7.62 %  per  annum
beginning November 1, 1999.

Note  payable due on  January 5,  1999  with                         150,000
interest   at  a   rate  of  8%  per  annum.
Collateralized  by 5,444,644  shares of  the
Company's common stock.


Note  Payable to a bank in monthly  payments
of $433 including interest at a rate of 8.75%.          4,070          4,533
Collateralized by equipment.
                                                    ----------     ---------
                                                    4,161,924      4,552,178
Current portion of long-term debt                   4,159,684      4,552,178
                                                    ----------     ---------
Long-term debt                                     $    2,240        $     0
                                                   ===========     =========


NOTE H - LEASES

     Operating Leases

     The  Company  is  committed under a non-cancelable  operating
     lease for its research and product development facility.  The
     lease  between the Company and a group of investors  (lessor)
     which  includes  four  of  the Company's  Executive  Officers
     and/or  Directors,  is for a period of 240  months  beginning
     September  1,  1990.  Monthly rental under the terms  of  the
     lease is $8,810 for a period of 119 months to August 1,  2000
     when  the monthly rental payments shall be fixed at an amount
     equal  to the fair rental value of the property as determined
     by mutual agreement of lessor and the Company for the balance
     of  the  lease.  Total rent expense was $ 105,720 in each  of
     the years 1999, 1998 and 1997.  Future minimum lease payments
     as of December 31, 1999 are $ 61,670 for 2000.

     The  Company  and its related subsidiaries also  lease  other
     office  facilities, various equipment and  automobiles  under
     operating  leases  expiring in various  years  through  2002.
     Total  lease  expense related to these leases  was  $425,654,
     $279,329, and $295,809 in the years ended December 31,  1999,
     1998 and 1997, respectively.

     During  1996, the Company leased two manufacturing  buildings
     under  capital leases expiring in various years through 2011.
     The  assets and liabilities under capital leases are recorded
     at  the  lower  of  the present value of  the  minimum  lease
     payments  or  the fair value of the asset.   The  assets  are
     depreciated  over the lower of their related lease  terms  or
     their  estimated  productive lives.  Depreciation  of  assets
     under capital leases is included in depreciation expense.

     During  1998, the Company terminated the lease of one of  its
     two  manufacturing buildings in response to the filing  of  a
     judgement  for nonpayment under the terms of the lease.   The
     Company  recognized  a  loss  of  $387,321  based  upon   the
     difference  between  the remaining lease obligation  and  the
     property relinquished.

     The  following  is a summary of property held  under  capital
     leases:

                                   Dec. 31,       Dec. 31,
                                     1999           1998
                                 __________     __________
  Building                      $ 1,207,610     $1,207,610
  Land                              133,750        133,750
  Equipment                         229,565        289,531
                                 __________     __________
  Sub Total                       1,570,925      1,630,891
                            _
  Less: Accumulated Depreciation    378,885        277,069
                                ___________     __________
  Total Property under          $ 1,192,040     $1,353,822
      Capital Leases            ===========     ==========


NOTE H - LEASES -Continued

     Minimum future lease payments are as follows:


    2000                 $  563,025
    2001                    474,812
    2002                    358,506
    2003                    276,655
    2004                    214,588
    Thereafter            1,434,360
                          _________
   Future minimum lease  $3,321,946
     payments            ==========

NOTE I - SUBORDINATED CONVERTIBLE DEBENTURES

     During 1999, 1998 and 1997 the Company issued subordinated 4%
     convertible debentures totaling $33,150,000, $10,720,000  and
     $20,230,000, respectively.  Such convertible debentures  were
     issued pursuant to Regulation S, Regulation D, and/or Section
     4(2)  and  have  a one-year mandatory maturity  and  are  not
     saleable  or convertible for a minimum of 45 to 90 days  from
     issuance.   At  December 31, 1999 and 1998, the  subordinated
     convertible    debentures   totaled   $0   and    $2,825,000,
     respectively.

     As  of  December  31,  1998,  the  conversion  price  of  the
     debentures  would  have been approximately $.059  per  share,
     based upon a formula, which applies a discount to the average
     market  price  for  the previous week and determined  by  the
     length  of the holding period.  As of December 31, 1998,  the
     number  of shares issuable upon conversion of all outstanding
     debentures was approximately 60.1 million shares, which would
     have   reflected   discounts  of  approximately   23%.     No
     debentures were outstanding as of December 31, 1999.

NOTE J - STOCKHOLDERS' EQUITY

     Preferred Stock

     The Board of Directors of the Company may issue up to 500,000
     shares  of preferred stock in series, which would have rights
     as determined by the Board.

     During  1999,  400,000  shares of the  preferred  stock  were
     authorized  as  "4% Cumulative Convertible  Preferred  Stock,
     Series F".  72,000 shares of this preferred stock were issued
     in  1999.   Each holder of shares of the Series  F  Preferred
     Stock has the option to convert any or all shares
     under the terms of their agreements.





NOTE J - STOCKHOLDERS' EQUITY  - Continued

     During  1997,  22,000  shares of  the  Series  B  convertible
     preferred stock were sold and converted.


     Common Stock Warrants

     During 1999, warrants ranging from $.123 to $.23 per share to
     purchase  23,017,500 shares of common stock were  granted  at
     exercise  prices  which were equal to or  above  the  current
     quoted
     market  price of the stock on the date issued.   Warrants  to
     purchase  29,896,662 shares of common stock were  exercisable
     at December 31, 1999.  The per share exercise prices of these
     warrants are as follows:

                   Shares            Exercise
                                     Price
                      20,000              $.06
                      85,000              $.103
                  21,500,000              $.129
                     400,000              $.13
                     250,000              $.155
                      10,000              $.22
                   4,426,700              $.25
                      80,000              $.33
                      50,000              $.38
                       1,482              $.45
                     350,000              $.50
                     884,000             $1.00
                     150,000             $1.48
                       2,000             $1.69
                   1,375,000             $2.00
                       2,000             $2.09
                      94,000             $2.125
                       2,000             $2.13
                      69,480             $2.25
                      35,000             $2.41
                      20,000             $2.75
                      25,000             $3.00
                      25,000             $3.20
                       5,000             $3.31
                      25,000             $3.50
                      10,000             $4.03
                 ___________
          Total   29,896,662
                 ===========


     The fiscal years in which common stock warrants were granted
     and the various expiration dates by fiscal year are as
     follows:

 Fiscal    Warrants          Warrants Expire During Fiscal Year
  Year      Granted    2000      2001        2002       2003        2004
Granted

  1990     406,700      -       226,700       -       180,000        -

  1991   1,251,482      -       900,000    351,482          -           -

  1992      25,000    25,000       -          -          -           -

  1993     154,000      -       144,000       -        10,000        -

  1994     130,000      -          -        20,000        85,000      25,000

  1995      21,000    21,000       -          -          -           -

  1996     594,480      -       535,000       -          -         59,480

  1997   2,344,000      -     1,400,000    944,000       -           -

  1998   2,620,000      -          -     1,200,000  1,420,000        -

  1999  22,350,000      -          -          -       600,000  21,750,000
         ---------    ------- ---------  ---------  ---------  ----------
        29,896,662    46,000  3,205,700  2,515,482  2,295,000  21,834,480
         =========   ======== =========  =========  =========  ==========

     The following is a summary of warrant transactions during 1999:

          Outstanding beginning of period:          7,831,662
          Granted during the twelve-month period:  23,017,500
          Canceled during the twelve-month period:    265,000
          Exercised during the twelve-month period:   687,500
                                                   ----------
          Outstanding and eligible for exercise:   29,896,662
                                                   ==========
     Warrent Extentions

     During  1999,  the  Company extended  the  exercise  date  of
     warrants  to  purchase  540,962 shares  of  common  stock  to
     certain  officers,  employees and consultants.   The  warrant
     shares  were  originally granted at exercise  prices  ranging
     from  $.45 to $2.75, and were extended at the original  grant
     price.  No expense was charged to operations since the market
     price  of  the stock was less than the present value  of  the
     warrant exercise price.

     During  1998,  the  Company extended  the  exercise  date  of
     warrants  to  purchase 1,510,180 shares of  common  stock  to
     certain  officers,  employees and consultants.   The  warrant
     shares  were  originally granted at exercise  prices  ranging
     from  $.25 to $3.20, and were extended at the original  grant
     price.  No expense was charged to operations since the market
     price  of  the stock was less than the present value  of  the
     warrant exercise price.

     During  1997,  the  Company extended  the  exercise  date  of
     warrants  to  purchase  177,800 shares  of  common  stock  to
     certain  officers and consultants.  The warrant  shares  were
     originally  granted at exercise prices ranging from  $.25  to
     $3.50,  and  were extended at the original grant  price.   No
     expense  was charged to operations since the market price  of
     the  stock  was  less than the present value of  the  warrant
     exercise price.


     Diasensor.com, Inc. Common Stock


     At  December 31, 1999, warrants to purchase 8,639,313  shares
     of  Diasensor.com, Inc. common stock were  exercisable.   The
     per  share  exercise price for 5,305,000 shares is $.50,  for
     2,271,963 shares is $1.00 and for 1,062,350 shares is  $3.50.
     The  warrants expire at various dates through 2004.   To  the
     extent  that  all the warrants are exercised,  the  Company's
     proportionate ownership would be diluted from 52% at December
     31, 1999 to 37%.

     Diasensor.com, Inc. Warrant Extensions

     During  1999, Diasensor.com, Inc. extended the exercise  date
     of  warrants to purchase 3,070,213 shares of common stock  to
     certain officers, directors, employees and consultants.   The
     warrant  shares were originally granted at an exercise  price
     ranging  from $.50 to $3.50 and extended at the  same  price.
     Diasensor.com,  Inc. recorded a $272,078  expense  for  these
     extended warrants.

     During  1998, Diasensor.com, Inc. extended the exercise  date
     of  warrants  to purchase 825,000 shares of common  stock  to
     certain officers, directors, employees and consultants.   The
     warrant  shares were originally granted at an exercise  price
     of  $.50  and  extended at the same price.   No  expense  was
     charged to operations since the market price of the stock was
     less than the present value of the warrant exercise price.

     During  1997, Diasensor.com, Inc. extended the exercise  date
     of  warrants to purchase 2,236,550 shares of common stock  to
     certain officers, directors, employees and consultants.   The
     warrant  shares were originally granted at an exercise  price
     of  $1.00,  and  extended at the same price.   Diasensor.com,
     Inc.   recorded  a  $4,046,875  expense  for  these  extended
     warrants.

     Petrol Rem Common Stock

     At December 31, 1999 warrants to purchase 4,340,000 shares of
     Petrol  Rem  common stock were exercisable.   The  per  share
     exercise price for 3,940,000 is $.10 and for 200,000 is  $.50
     and  for  200,000 is $1.00.  The warrants expire  at  various
     dates through 2004.  To the extent that all the warrants were
     exercised,  the  Company's proportionate ownership  would  be
     diluted from 75% at December 31, 1999 to 61.6%.

     At December 31, 1998 warrants to purchase 4,140,000 shares of
     Petrol  Rem  common stock were exercisable.   The  per  share
     exercise  price  for 3,940,000 is $.10 and for  200,000  is
     $1.00.   The  warrants expire at various dates through  2003.
     To  the  extent  that  all the warrants were  exercised,  the
     Company's proportionate ownership would be diluted  from  75%
     at December 31, 1998 to 62.1%.

     IDT Common Stock
     At December 31, 1999 warrants to purchase 4,630,000 shares of
     IDT  common  stock were exercisable.  The per share  exercise
     price for 4,380,000 shares is $.10 and for 210,000 shares  is
     $1.00 and for 20,000 shares is $2.00.  The warrants expire at
     various  dates  through  2003. To the  extent  that  all  the
     warrants   were   exercised,  the   Company's   proportionate
     ownership would be diluted from 99.1% at December 31, 1998 to
     67.9%.


NOTE K - INCOME TAXES

     As  of  December  31, 1999, the Company and its  subsidiaries
     except  Diasensor.com,  Inc.,  Petrol  Rem,  and  ICTI,  have
     available  approximately $110,800,000 of net  operating  loss
     carryforwards   for  federal  income  tax  purposes.    These
     carryforwards  are  available,  subject  to  limitations,  to
     offset  future taxable income, and expire in tax  years  2000
     through  2020.  The Company also has research and development
     credit carryforwards available to offset federal income taxes
     of  approximately $1,100,000 subject to limitations, expiring
     in tax years 2005 through 2014.

     As  of  September  30,  1999, the end  of  its  fiscal  year,
     Diasensor.com,  Inc. had available approximately  $23,700,000
     of  net  operating loss carryforwards for federal income  tax
     purposes.  These carryforwards, which expire during the years
     2005 through 2019, are available, subject to
     limitations, to offset future taxable income.  Diasensor.com,
     Inc.  also  has research and development credit carryforwards
     available  for  federal income tax purposes of  approximately
     $700,000, subject to limitations, expiring in the years  2005
     through 2012.

     As   of   December  31,  1999,  Petrol  Rem   had   available
     approximately $11,500,000 of net operating loss carryforwards
     for  federal income tax purposes.  These carryforwards, which
     expire  during  the years 2008 through 2020,  are  available,
     subject  to  limitations, to offset  future  taxable  income.
     Petrol   Rem   also  has  research  and  development   credit
     carryforwards  available for federal income tax  purposes  of
     approximately $15,000.

     As  of  December  31, 1999, ICTI had available  approximately
     $1,800,000  of net operating loss caarryforwards for  federal
     income  tax purposes.   These carryforwards, which expire  in
     years  2019  and 2020, are available, subject to limitations,
     to offset future taxable income.

     Certain  items  of  income  and  expense  are  recognized  in
     different  periods  for financial and  income  tax  reporting
     purposes.   In  the year ended December 31, 1999,  a  warrant
     exercise adjustment of $50,625 was reported for tax purposes.
     The  fair  market  value  of  warrant  extentions  have  been
     recorded and expensed for financial statement purposes in the
     year ended December 31, 1999 in the amount of $6,092,562.

     The  Company has not reflected any future income tax benefits
     for these temporary differences or for net operating loss and
     credit  carryforwards  because  of  the  uncertainty  as   to
     realization.  Accordingly, the adoption of  FAS  109  had  no
     effect on the financial statements of the Company.

     The  following  is  a  summary  of  the  composition  of  the
     Company's   deferred  tax  asset  and  associated   valuation
     allowance  at  December  31,  1999,  December  31,  1998  and
     December 31, 1997:

                                Dec.          Dec.         Dec.
                              31,1999      31,1998      31,1997
                             ________      ________     _______

   Net Operating Loss     $ 37,672,000   $28,294,800  $ 21,508,400
   Warrant Expense           4,812,868     2,741,397     2,741,397
   Tax Credit Carryforward   1,700,000     1,100,000       580,000
                            __________    __________    __________
                            44,184,868    32,136,197    24,829,797
   Valuation Allowance     (44,184,868)  (32,136,197)  (24,829,797)
                            __________    __________    __________

   Net Deferred Tax Asset $          0   $         0  $          0
                            ===========  ===========   ===========


     The  deferred tax benefit and the associated increase in  the
     valuation allowance are summarized in the following schedule:

                                                     Increase
                                                        in
                                      Deferred      Valuation
                                        Tax         Allowance     Net
                                      Benefit
                                    ___________    ___________    ___
     Year-ended December 31, 1999  $(12,048,671)   $ 12,048,671   $ 0
     Year-ended December 31, 1998  $ (7,306,400)   $  7,306,400   $ 0
     Year-ended December 31, 1997  $ (6,237,758)   $  6,237,758   $ 0
     From March 20,1972(inception) -------------   -----------    ---
     through December 31, 1998     $(44,184,868)   $ 44,184,868   $ 0


NOTE L - RELATED PARTY TRANSACTIONS

     Research and Development Activities

     The  Company is currently performing research and development
     activities  related to the non-invasive glucose  sensor  (the
     Sensor)  under  a  Research  and Development  Agreement  with
     Diasensor.com, Inc..  If successfully developed,  the  Sensor
     will  enable  users to measure blood glucose  levels  without
     taking  blood  samples.   Diasensor.com,  Inc.  acquired  the
     rights to the Sensor, including one United States patent from
     BICO for $2,000,000 on November 18, 1991.  Such patent covers
     the process of measuring blood glucose levels non-invasively.
     Approval   to  market  the  Sensor  is  subject  to   federal
     regulations including the Food and Drug Administration (FDA).
     The  Sensor  is  subject to clinical testing  and  regulatory
     approvals  by the FDA.  BICO is responsible for substantially
     all  activities in connection with the development,  clinical
     testing,  FDA  approval and manufacturing of the  Sensor.  As
     discussed  in Note B, BICO finances its operations  from  the
     sales  of  stock and issuance of debt and was reimbursed  for
     costs incurred under the terms and conditions of the Research
     and Development Agreement for the research and development of
     the  Sensor  by Diasensor.com, Inc..  If BICO  is  unable  to
     perform  under  the Research and Development or Manufacturing
     Agreements, Diasensor.com, Inc. would need to rely  on  other
     arrangements to develop and manufacture the Sensor or perform
     these efforts itself.

NOTE L - RELATED PARTY TRANSACTIONS - Continued

     BICO  and  Diasensor.com, Inc. have entered into a series  of
     agreements  related  to  the development,  manufacturing  and
     marketing  of the Sensor.  BICO is to develop the Sensor  and
     carry  out all steps necessary to bring the Sensor to  market
     including   1)  developing  and  fabricating  the  prototypes
     necessary  for clinical testing; 2) performing  the  clinical
     investigations  leading  to FDA approval  for  marketing;  3)
     submitting   all  applications  to  the  FDA  for   marketing
     approval;  and 4) developing a manufacturable and  marketable
     product.  Diasensor.com, Inc. is to conduct the marketing  of
     the  Sensor.   The  following is a brief description  of  the
     agreements:

     Manufacturing Agreement

     The  manufacturing agreement between BICO and  Diasensor.com,
     Inc. was entered into on January 20, 1992.  BICO is to act as
     the  exclusive manufacturer of production units of the Sensor
     upon the completion of the Research and Development Agreement
     and  sell  the  units  to  Diasensor.com,  Inc.  at  a  price
     determined  by  the agreement. The term of the  agreement  is
     fifteen years.

     Research and Development Agreement

     Under   a   January   1992   agreement   between   BICO   and
     Diasensor.com, Inc., beginning in April 1992,  BICO  received
     $100,000  per  month, plus all direct costs for the  research
     and  development  activities of the Sensor.   This  agreement
     replaced  a previous agreement dated May 14, 1991.  The  term
     of  the  new agreement is fifteen years. Under the  terms  of
     this   agreement,  the  Company  billed  Diasensor.com,  Inc.
     $2,955,863  in  research  and  development  and  general  and
     administrative  expenses  for the year  ending  December  31,
     1995.   In July 1995, BICO and Diasensor.com, Inc. agreed  to
     suspend  billings,  accruals  of  amounts  due  and  payments
     pursuant  to  the research and development agreement  pending
     the FDA's review of the Sensor.

     Purchase Agreement

     In November 1991, BICO entered into a Purchase Agreement with
     Diasensor.com, Inc. under which Diasensor.com, Inc.  acquired
     BICO's rights to the Sensor for a cash payment of $2,000,000.
     This agreement permits BICO to use Sensor technology for  the
     manufacture and sale by BICO of a proposed implantable closed
     loop  system.  BICO will pay Diasensor.com,  Inc.  a  royalty
     equal  to  five percent of the net sales of such  implantable
     closed loop system.

     Real Estate Activities

     Four of the Company's Executives and/or Directors are members
     of  an  eight-member partnership which in July 1990 purchased
     the  Company's real estate in Indiana, Pennsylvania, and each
     has personally guaranteed the payment of lease obligations to
     the   bank   providing  the  funding.   For  their   personal
     guarantees,  the four individuals each received  warrants  to
     purchase 100,000 shares of the Company's common stock  at  an
     exercise price of $.33 per share until June 29, 1998.


     Amounts due from Officers

     At  December 31, 1998, Fred E. Cooper, CEO, owed the  Company
     $548,900   (including  a  $25,000  note  for   common   stock
     purchased)  on  various  demand  loans  with  interest  rates
     ranging from 8.25% to 12%.  In addition as of December  1998,
     Mr.  Cooper  was  obligated  to  the  Company  for  advances
     totaling $90,779 aand accrued interest of  $109,599.

     On  April 28, 1999 Mr. Cooper's obligations, including  those
     outstanding at December 31, 1998, were converted  to  a  term
     loan  totaling  $777,400 payable in monthly  installments  of
     $9,427  with  a  final  balloon  payment  on  May  31,  2002.
     Interest on this loan is accrued at a rate of 8% per annum.

     Total  amounts  due  from Mr. Cooper at  December  31,  1999,
     include the $747,087 balance on the term loan discussed above
     plus accrued interest of $10,813.

     At  December  31, 1998, Glenn Keeling, a Director,  owed  the
     Company $265,000 on various demand loans with interest  rates
     ranging  from  8.25% to 10%.  In addition as of December  31,
     1998,  Mr.  Keeling was obligated to the Company for  accrued
     interest of $27,810.

     On  April 28, 1999 Mr. Keeling's obligations, including those
     ourstanding at December 31, 1998, were converted  to  a  term
     loan  totaling  $296,358 payable in monthly  installments  of
     $4,184 with a final balloon payment on May 1, 2002.  Interest
     on this loan is accrued at a rate of  8% per annum.

     Total  amounts  due  from Mr. Keeling at December  31,  1999,
     include the $275,869 balance on the term loan discussed above
     plus accrued interest of $3,668.

     At  December  31,  1998, T.J. Feola,  A  Director,  owed  the
     Company $235,000 on various demand loans with interest  rates
     of 8.25%.  In addition as of December 31, 1998, Mr. Feola was
     obligated to the Company for accrued interest of $18,219.

     On  April  28, 1999 Mr. Feola's obligations, including  those
     outstanding at December 31, 1998, were converted  to  a  term
     loan  totaling  $259,477 payable in monthly  installments  of
     $3,676  with  a  final  balloon  payment  on  May  31,  2002.
     Interest on this loan is accrued at a rate of 8% per annum.

     Total  amounts  due  from Mr. Feola  at  December  31,  1999,
     include the $245,581 balance on the term loan discussed above
     plus accrued interest of $4,536.

     As  of  December  31, 1998 and 1999 the Company  had  a  note
     receivable  from  Allegheny Food  Services,  Inc.   of  which
     Joseph Kondisko, a former director, is principal owner.   The
     loan, which bears interest at a rate of 9.25%, is payable  in
     monthly  installments of $3,630 with a final balloon  payment
     on  April 1, 2001.  The outstanding balance on this loan  was
     $200,000  at  December 31, 1998 and $172,724 at December  31,
     1999.

     During  1999  the Company made various demand loans  totaling
     $150,000  to  Bio Med, Inc.  (dba B-A-Champ.com),  a  company
     substantially owned by Fred E. Cooper, CEO.  As  of  December
     31, 1999, these loans had been repaid to a balance of $50,000
     with an accrued interest of $3,006.

     Employment Contracts

     The Company's employment contracts with four officers and two
     employees  commenced  November 1, 1994 and  were  renewed  on
     October  31,  1999.   These employment  contracts  set  forth
     annual  basic  salaries aggregating $1,500,000  in  1997  and
     expiring  in  periods beginning October  1999  through  2002,
     which  are  subject to review and adjustment.  The  contracts
     may be extended for successive two to three year periods.  In
     the event of change in control in the Company and termination
     of  employment,  continuation  of  annual  salaries  at  100%
     decreasing  to 25% are payable in addition to the issuing  of
     shares  of  common  stock as defined in the  contracts.   The
     contracts also provide for severance, disability benefits and
     issuances of BICO common stock under certain circumstances.

NOTE M - COMMITMENTS AND CONTINGENCIES

     Litigation

     On  April 30, 1996, a class action lawsuit was filed  against
     the Company, Diasensor.com, Inc., and individual officers and
     directors.   The  suit,  captioned Walsingham  v.  Biocontrol
     Technology, etal., has been certified as a class action,  and
     is  pending  in  the  U.S. District  Court  for  the  Western
     District   of  Pennsylvania.  The  suit  alleges   misleading
     disclosures in connection with the Noninvasive Glucose Sensor
     and  other  related activities.  By mutual agreement  of  the
     parties,  the  suit remains in the pre-trial pleading  stage,
     and  the  Company is unable to determine the outcome  or  its
     impact upon the Company at this time.

     Pennsylvania Securities Commission


     The  Pennsylvania  Securities  Commission  is  conducting   a
     private  investigation  of the Company  and  its  subsidiary,
     Diasensor.com,  Inc., Inc. in connection  with  the  sale  of
     securities.  The Companies have cooperated with and  provided
     information  to  the  Pennsylvania Securities  Commission  in
     connection   with   the   private  investigation.    As   the
     Commission's investigation is not yet complete, there can  be
     no estimate or evaluation of the likelihood of an unfavorable
     outcome in this matter or the range of possible loss, if any.

     Additional Legal Proceedings

     During April 1998, the Company and its affiliates were served
     with  subpoenas by the U.S. Attorneys' office  for  the  U.S.
     District Court for the Western District of Pennsylvania.  The
     subpoenas   requested   certain  corporate,   financial   and
     scientific  documents and the Company has provided  documents
     in response to such requests.

     License Agreement

     Under  terms  of  a license agreement with a  shareholder  of
     Petrol  Rem for the marketing rights with respect to  certain
     inventions Petrol Rem is to make minimum royalty payments  of
     $50,000 per year for each year starting in 1999 through 2001.


NOTE N - EMPLOYEE BENEFIT PLAN

     The  Company  has  a  defined  contribution  plan  with  401k
     provisions,  which covers all employees meeting  certain  age
     and  period  of service requirements.  Employer contributions
     are  discretionary as determined by the Board  of  Directors.
     There have been no employer contributions to the plan through
     December 31, 1999.

NOTE O -STOCK PURCHASE AGREEMENT


     Effective  March  4,  1998,  pursuant  to  a  Stock  Purchase
     Agreement dated February 20, 1998, the Company acquired 58.4%
     of   International  Chemical  Technologies,  Inc.  (ICTI)   a
     development stage corporation.  ICTI commenced operations  in
     May 1997 and plans to engage in the business of manufacturing
     and  marketing, and licensing rights with respect to  certain
     corrosion/wear-resistant metal alloy coating compositions.

     Consideration  for the purchase of the 58.4%  interest  in  ICTI
     included  a  cash payment of $1,030,000; a promissory  note  for
     $3,350,000  at 8%; 2,000,000 shares of Biocontrol  common  stock
     (fair market value of $250,000), a warrant to purchase 1,000,000
     shares  of  Biocontrol  stock for $2 per share  anytime  through
     March  4,  2003; and the guarantee by Biocontrol of a promissory
     note for $1,300,000 payable by ICTI to the seller.

     The  Company recognized $5,310,501 of goodwill in  connection
     with  a  Stock Purchase Agreement dated February 20, 1998  to
     acquire  58.4%  of International Chemical Technologies,  Inc.
     For  purposes  of  amortizing this goodwill,  management  had
     determined   a   useful   life  of  5   years.    Accumulated
     amortization  on this goodwill was $887,080 at  December  31,
     1998.   Based  upon  a  reevaluation of  this  goodwill,  the
     remaining  balance of $4,423,421 was charged to  amortization
     expense in 1999.   Management's reevaluation was reached  due
     to  failure  of the investment to perform as anticipated  and
     the  decision that future cash flow was unlikely.  For  these
     same  reasons an impairment charge was recorded to write  off
     associated plant and equipment.


NOTE P - SUBSEQUENT EVENTS

     In   January,  the  Company  announced  that  its  subsidiary
     Diasensor.com  had  initiated an  alliance  with  MicroIslet,
     Inc.;  in  return  for  its  initial  equity  investment   of
     $500,000,  Diasensor.com received a 10% stake with an  option
     to purchase an additional 10% in the future.

     From January through early March 2000, the Company raised net
     funds  aggregating approximately $14.7 million from the  sale
     of its preferred stock and debentures.


Conformed Copy
                         SIGNATURES

      Pursuant to the requirements of Section 13 or 15(d) of
the Securities Exchange Act of 1934, the Registrant has duly
caused  this  report  to be signed  on  its  behalf  by  the
undersigned, thereunto duly authorized, on the 27th  day  of
March 2000.

                            BIOCONTROL TECHNOLOGY, INC.


                            By:   /s/ David L. Purdy

                                  David L. Purdy
                                  President,Treasurer,
                                  Director

     Pursuant to the requirements of the Securities Exchange
Act  of  1934,  this  report has been signed  below  by  the
following  persons on behalf of the Registrant  and  in  the
capacities and on the dates indicated.

Signature                     Title                         Date


/s/ Fred E. Cooper            Director, CEO,                March 27, 2000
Fred E. Cooper                (principal executive
                              officer, principal
                              financial officer and
                              principal accounting
                              officer)

/s/ Anthony J. Feola          Senior Vice President,        March 27, 2000
Anthony J. Feola              Director


/s/ Glenn Keeling             Director                      March 27, 2000
Glenn Keeling


/s/ Stan Cottrell             Director                      March 27, 2000
Stan Cottrell

/s/ Paul W. Stagg             Director                      March 27, 2000
Paul W. Stagg




Microfilm Number __________   Filed with the Department of State on____________

Entity Number  _____________               ____________________________________
                                                 Secretary of  the Commonwealth


             ARTICLES OF AMENDMENT-DOMESTIC BUSINESS CORPORATION
                            DSCB:15-1915 (Rev 90)


  In compliance with the requirements of 15 Pa.C.S. 1915 (relating to
articles of amendment), the undersigned business corporation, desiring
to amend its Articles, hereby states that:

1.  The name of the corporation is:     Biocontrol Technology, Inc.
                                   ____________________________________________
_______________________________________________________________________________

2.  The (a) address of this corporation's current registered office in this
Commonwealth  or (b) name of its commercial registered office  provider  and
the  county of venue is (the Department is hereby authorized to correct  the
following information to conform to the records of the Department):

       The Bourse, Building 2, 2nd Floor
   (a) 2275  Swallow Hill Road            Pittsburgh   PA     15220   Allegheny
       ________________________________________________________________________
       Number and Street                    City      State    Zip       County

   (b) c/o:____________________________________________________________________
           Name of Commercial Registered Office Provider                 County

   For a corporation represented by a commercial registered office provider,
   the county in (b) shall be deemed the county in which the
   corporation is located for venue and official publication purposes.

3. The statute by or under which it was incorporated is Act of May 5, 1933,
    P.L. 364, as amended

4. The date of its incorporation is:   March 30, 1972

5. (Check, and if appropriate complete, one of the following):

    X     The  amendment  shall be effective upon filing these  Articles  of
          Amendment in the Department of State.

   ___    The amendment shall be effective on: ______________at________________
                                                  Date              Hour

6. (Check one of the following):

    X    The amendment was adopted by the shareholders (or members) pursuant
         to 15 Pa.C.S.  1914(a) and (b).

         The amendment was adopted by the board of directors pursuant to 15
         Pa.C.S.  1914(c).

7. (Check, and if appropriate complete, one of the following):

    X    The  amendment adopted by the corporation, set forth in full,  is  as
         follows:

         The first paragraph of Article 5 shall be amended to read as follows:
           5. The aggregate number of shares which the Company shall  have
           authority  to  issue is 500,000 shares of Cumulative  Preferred
           Stock, par value $10.00 per share and 1,700,000,000 shares of
           Common Stock, par value $.10 per share.

         The amendment adopted by the corporation is set forth in  full  in
         Exhibit A attached hereto and made a part hereof.


DSCB:15-1915 (Rev 90)-2


8. (Check if the amendment restates the Articles):

  ____   The restated Articles of Incorporation supersede the original Articles
         and all amendments thereto.


 IN TESTIMONY WHEREOF, the undersigned corporation has caused these Articles
of Amendment to be signed by a duly authorized officer thereof this 7th day
of February, 2000.



                                        BIOCONTROL TECHNOLOGY, INC.
                                              (Name of Corporation)


                                        BY:/s/ Fred E. Cooper
                                                (Signature)

                                 TITLE: Fred E. Cooper, Chief Executive Officer