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Heska Announces Q4 and Annual 2008 Results
Date:3/16/2009

Core Companion Animal Health Segment Increases Annual Revenue

LOVELAND, Colo., March 16 /PRNewswire-FirstCall/ -- Heska Corporation (Nasdaq: HSKA) ("Heska" or the "Company") today reported financial results for its fourth quarter, the three months ended December 31, 2008, and year ended December 31, 2008.

(Logo: http://www.newscom.com/cgi-bin/prnh/20000622/HESKALOGO)

"The poor economic environment had an impact on our fourth quarter 2008 results in addition to the anticipated revenue shortfall in our Other Vaccines, Pharmaceuticals and Product segment. This was particularly true in new instrument sales, which represent a relatively large capital expenditure for a significant portion of our customers. We believe many veterinarians are consciously delaying capital expenditures until they perceive more positive economic conditions," said Robert Grieve, Heska's Chairman and CEO. "We cannot plan for this situation to change quickly. Accordingly, we took steps late in 2008 to reduce our overhead costs in the coming year. Our restructuring charge of $785 thousand includes severance payments for several employees. Despite the economic downturn experienced globally in the fourth quarter, our Core Companion Animal Health product revenue grew to a record level in 2008. We are committed to managing our business through these challenging times and positioning our company to prosper in the years to come."

Total Revenue

Total revenue for the fourth quarter of 2008 was $15.4 million, a decrease of 23% compared to $20.0 million in the fourth quarter of 2007. 2008 total revenue was $81.7 million, down 1% compared to $82.3 million in 2007. Total revenue consists of product revenue and research, developm
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