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Neogen Reports 33% Increase in Net Income
Date:1/4/2011

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Neogen's sales of forensic diagnostics to detect drugs of abuse increased 30% as the company's top accounts have increased the volume and breadth of their testing. Sales of rodenticides, cleaners and disinfectants in the quarter increased 13% over the prior year as Neogen strengthens its presence in the important agronomic and animal protein market segments. The quarter also saw sales of the company's veterinary instruments grow 28% when compared to the prior year's second quarter, spurred by increased sales of Neogen's needle and syringe business.

Neogen Corporation develops and markets products dedicated to food and animal safety. The company's Food Safety Division markets dehydrated culture media, and diagnostic test kits to detect foodborne bacteria, natural toxins, genetic modifications, food allergens, drug residues, plant diseases and sanitation concerns. Neogen's Animal Safety Division markets a complete line of diagnostics, veterinary instruments, veterinary pharmaceuticals, nutritional supplements, disinfectants, and rodenticides.

NEOGEN CORPORATION UNAUDITED SUMMARIZED CONSOLIDATED OPERATING DATA(In thousands, except for per share and percentages)Quarter ended Nov. 30Six months ended Nov. 302010200920102009RevenueFood Safety

$21,341

$18,446$43,593

$35,921Animal Safety

22,590

16,80543,260

31,677Total revenue43,93135,25186,85367,598Cost of sales

21,443

16,72941,598

31,806Gross margin

22,488

18,52245,255

35,792Other expensesSales & marketing

7,504

6,40515,016

12,377Administrative

3,714

3,1917,576

6,082Research & development

1,641

1,6983,438

3,161Total other expenses

12,859

11,29426,030

21,620Operating income

9,629

7,22819,225

14,172Other income (expense)

(119)

(18)(490)

34Income before tax

9,510

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SOURCE Neogen Corporation
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