Synthetech Announces Fiscal 2008 Results(perating income (loss) 128 ...)

Interest income 4 7 20 35

Interest expense (19) (39) (83) (85)

Income (loss) before

income taxes 113 282 (1,174) 192

Income tax benefit - - - (1)

Net income (loss) $113 $282 $(1,174) $193

Basic and diluted income

(loss) per share $0.01 $0.02 $(0.08) $0.01

Commenting on the financial results, Dr. Gregory Hahn, President and COO, stated, "We planned fiscal 2008 to be a year of building personnel and infrastructure to support future market demand and sales strategies and were disappointed by the impact of specific production difficulties on financial results for the fourth quarter and full year. We have committed significant resources from management, R&D and manufacturing to the resolution of these issues, solutions for which include improved consistency from production procedures, increased technical oversight of projects and adjusted production culture. While continuing to address production challenges, we are encouraged by fiscal 2008 revenue growth of 13% over fiscal 2007. Synthetech's order backlog as of March 31, 2008 was approximately $9.9 million, or 68% of fiscal 2008 revenue, and represents Synthetech's largest year-end backlog since 1998. We expect the majority of these customer orders to ship during the first half of fiscal 2009. During fiscal 2008, while revenue from our traditional pharmaceutical markets continued to grow, Synthetech diversified its customer base to include two projects from the medical device sector. We believe that each of these sectors is poised for additional growth in fiscal 2009."

Dr. Daniel Fagan, Chairman and CEO stated "Fiscal 2008 represents our second consecutive y
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