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Synthetech Reports First Quarter Fiscal 2010 Results
Date:8/6/2009

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Commenting on the financial results, Dr. Gregory Hahn, President and CEO, stated, "It is a great start for fiscal year 2010. First quarter revenues of $4.7 million, operating profit of 22% and net income of $969,000 further exemplify the benefits of our actions aimed at expanding markets, improving production efficiencies, and reducing costs. We remain guardedly optimistic about overall performance for the balance of fiscal year 2010 based on a reasonable $4.6 million order backlog, a robust project pipeline providing us with additional market opportunities, and better than expected strength in our biopharmaceutical customer base. In addition, the full benefit of our cost reduction plan implemented in the first quarter begins in the second quarter."

Management anticipates that Synthetech's revenue will continue to be volatile from period to period. Variability in Synthetech's level of revenue is based primarily on its participation in large-scale customer projects and the timing of shipments arising from these projects. Synthetech operates in a challenging business environment, characterized by the unpredictable dynamics and life cycle of pharmaceutical projects, which can lead to rapid fluctuations in the mix of projects and revenues. As the uncertainties inherent in drug development projects remain outside of Synthetech's control, it is difficult to predict the progress, timing and revenue potential of these projects.

About Synthetech

Synthetech, Inc., based in Albany, Oregon, is a fine chemicals company specializing in organic synthesis, biocatalysis and chiral technologies. We develop and manufacture amino acid derivatives, specialty amino acids, peptide fragments and proprietary custom chiral intermediates and specialty resins, primarily for the pharmaceutical industry. Synthetech produces advanced pharmaceutical i
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SOURCE Synthetech, Inc.
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