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Neogen Reports 34% Increase in Net Income, 23% Increase in Revenues
Date:1/3/2008

eased 18% for the quarter. For the first half of FY 2008, diagnostic product sales have increased 11%, with sales of test kits to detect drugs of abuse in racing animals increasing 21% over the prior year. Sales of rodenticides to international markets also achieved strong growth over FY 2007's second quarter. Sales of Neogen's diphacinone products into Mexico, and the expansion of product registrations in new countries contributed to this success.

In December, Neogen announced that it had acquired the assets of Rivard Instruments, Inc., of Winnipeg, Canada. Rivard Instruments and Neogen's subsidiary, Ideal Instruments, Inc., are both manufacturers of detectable veterinary hypodermic needles. The acquisition settles lengthy litigation between the two companies regarding numerous patents owned by each.

Neogen's second quarter also saw Forbes Magazine name Neogen to its annual list of the 200 Best Small Companies in America for the sixth time in eight years. The Forbes list is based on growth in sales, earnings, and return on equity for the past five years, and the latest 12 months.

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.

Certain portions of this news release that do not relate to historical financial information constitute forward-looking statements. These forward- looking statements are subject to certain risks and uncertainties. Actual future results and trends may differ materially from historical results or those expected depending on a variety of factors listed in Management's Disc
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