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Heska Announces Q3 2008 Results
Date:11/10/2008

uticals and Products. Product revenue from these segments is as follows:

Core Companion Animal Health This segment includes revenue from the Company's diagnostic instruments and supplies as well as single use, point-of-care tests, vaccines and pharmaceuticals, primarily for canine and feline use. In the third quarter of 2008, this segment generated product revenue of $18.9 million, up 21% as compared to $15.6 million in the third quarter of 2007.

Other Vaccines, Pharmaceuticals and Products This segment includes revenue from private label vaccine and pharmaceutical production, primarily for cattle but also for other animals including small mammals and fish. In the third quarter of 2008, this segment generated product revenue of $2.4 million, down 29% as compared to $3.4 million in the third quarter of 2007. Results for the nine months ended September 30, 2007 include approximately $1.6 million in revenue recognized in the first quarter upon receipt of a payment for product previously shipped and "take-or-pay" minimums for 2005 and 2006 which previously had not been paid as part of a now settled dispute with United Vaccines, Inc. ("United"), a former customer.

Research, Development and Other Revenue

Research, development and other revenue was $316 thousand in the third quarter of 2008, a decrease of approximately $175 thousand when compared to $491 thousand in the prior year period.

Investor Conference Call

Management will conduct a conference call on Monday, November 10, 2008 at 9:00 a.m. MST (11:00 a.m. EST) to discuss the third quarter 2008 financial results. To participate, dial (800) 240-2134 (domestic) or (303) 262-2125 (international); the conference call access number is 11121827. The conference call will also be broadcast live over the Internet at http://www.heska.com. To listen, simply log on to the web at this address at least ten minutes prior to the start of the ca
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