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Neogen Reports 26% Increase in Revenues
Date:9/24/2008

ef operating officer. "A more significant highlight from our first quarter was the resurgence of same-store sales growth in our Animal Safety group and especially within our Hacco subsidiary. Organic sales growth for Animal Safety was over 13% for the quarter led by a 14% increase in domestic sales of Hacco's existing rodenticide products."

Bolstered by the acquisitions of Kane veterinary products (August 2007), Rivard detectable veterinary needles (December 2007), and immediately accretive DuPont disinfectants (June 30, 2008), Neogen's Animal Safety Division led the company's first quarter revenue growth, with a sales increase of 45% from $9,150,000 in FY 2008 to $13,256,000 in FY 2009. The division's sales increase included growth in products sold to veterinarians through ethical market channels, growth in products sold to large food-animal producers and processors, and a continued increase in sales of diagnostic products.

Neogen's Food Safety Division's first quarter revenues increased 13% on a quarter-to-quarter comparison, from $13,759,000 in the previous fiscal year to $15,549,000. The 13% increase in revenues was significant because the Food Safety group faced a difficult comparison with an exceptional first quarter of the prior year. All of the Food Safety Division's increase was organic sales growth.

The current quarter's Food Safety Division revenue increase was led by sales of Neogen's 10-year-old line of diagnostic tests for food allergens, which recorded an exceptionally strong 48% increase, with large increases in sales of diagnostic kits for milk, peanut, and egg allergens. The sales spike was driven by new customers, and a number of high-profile food recalls related to food allergens.

Neogen's sales of products used to detect dangerous foodborne pathogens, including E. coli O157:H7, Salmonella, and Listeria, continued their upward trend seen in recent quarters, and were up 14% compared to last year. Sales of the company's
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