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Neogen Reports 18% Increase in Net Income, 12% Increase in Revenues
Date:9/24/2009

as led by a more than 30% increase in sales of its dairy antibiotic diagnostics. Neogen's product line to detect dairy antibiotics was recently bolstered by the launch of BetaStar((R)) Combo, which is the fastest diagnostic available for detecting beta-lactam and tetracycline antibiotic residues in milk. Tetracyclines are more widely used for treatment of bovine mastitis in the European Union than elsewhere.

Sales of Neogen's innovative rapid tests for food allergens continued their strong advance, improving approximately 25% in the current quarter compared to the prior year's first quarter. This performance was the result of significant increases in sales of diagnostic tests to detect milk, egg, almond, and gluten residues. Food processors continue to expand routine testing procedures to help prevent inadvertent contamination from reaching food allergic consumers.

Sales of the company's tests for natural toxins increased by 10% in the quarter compared to the prior year's first quarter, led by increases in sales of test kits to detect deoxynivalenol (DON) and histamine. The DON test sales increase came largely as the result of reports of high levels of the mold toxin DON in harvested grain in isolated pockets of the United States, and continuing market acceptance of the company's new test system. Histamine is a toxin produced in certain types of harvested fish, especially tuna, if they are improperly stored and transported.

Quarterly sales growth for the company's Animal Safety Division was led by an approximately 30% increase in the current quarter compared to the prior year's first quarter in products sold to veterinarians through ethical market channels. This exceptional growth included a 60% increase in sales of the company's two veterinary biologics: BotVax((R)) B, an equine botulism vaccine, and EqStim((R)), an immune system stimulant. The quarter-over-quarter increase also included an approximately 6
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SOURCE Neogen Corporation
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