ABAXIS INC
EXHIBIT
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<TYPE>EX-10.32
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<FILENAME>exh10-32.htm
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<TITLE>09302002 Form 10-Q Exhbit 10.32</TITLE>
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<B><p align="right">
                                            Exhibit 10.32</P></B>


<P>Abaxis<br>
1320 Chesapeake Terrace, Sunnyvale, CA 94089<br>
Phone &#9;408-734-0200<br>
Fax &#9;408-734-2874</P>

<P>&nbsp;</P>
<P>&nbsp;</P>
<P>June 9, 1997</P>

<P>&nbsp;</P>
<P>Dr. Rama Ramanujam<br>
  Pharmacia Biotech<br>
  Molecular Biology Reagents Division<br>
  2202 North Bartlett Avenue<br>
   Milwaukee, WI 53202</P>

<P>Dear Rama:</P>

<P>My sincere apologies for the delay in sending you this letter.  I understand
from our discussions in February, 1997, and your follow-up letter of March 4,
1997, that Pharmacia Biotech is requesting to expand our current license
agreement pursuant to clause 2.2 to include viral DNA/RNA (Human
Immunodeficiency Virus and Hepatitis Virus) and Human Leukocyte Antigen (HLA)
allele typing.</P>

<P>In our meeting in February, 1997, we explored possible financial terms that
an expansion in the field of use may be mutually attractive and beneficial.  We
have also had additional internal discussions on the subject.  For purposes of
clarification and discussion only, I am communicating the specific terms that
Abaxis, Inc., is proposing for the expansion of field of use:</P>

<P>The expanded fields of use shall include viral DNA/RNA (Human
Immunodeficiency Virus and Hepatitis Virus) and Human Leukocyte Antigen (HLA)
allele typing;</P>
<P>The licenses granted in the expanded fields of use shall be non-
exclusive;</P>
<P>The terms for the expanded field of use shall be a separate rider agreement
to the original agreement;</P>
<P>The royalty rate shall be [***] of Net Sales of Licensed Products in the new
fields of use.  Payment details shall follow those of the original
agreement.</P>

<P>I communicated these terms to you previously in our telephone conversation in
April, 1997.  Please be informed that these terms represent the basic framework
for the expanded coverage of the license agreement and are non-binding, subject
to further changes as details of the agreement are finalized.</P>

<P>I shall await your response to these proposed terms.  When all the basic
terms are mutually agreed upon, our legal consul will expedite preparation of
the new agreement.  I believe this proposal reflects our common understanding at
this point.  I look forward to a favorable response.</P>

<P>Sincerely,</P>

<P>By  &#9;<U>/s/ Daniel Wong&#9;&#9;</P>
</U><P>&#9;Daniel Wong, Ph.D.</P>
<P>&#9;Vice President</P>
<P>&#9;Development</P>

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<P>***&#9;CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION.  CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO
THE OMITTED PORTIONS.</P>
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