Mesa Labs Reports Higher Quarterly Sales an...(g thisperiod our average quarterly net i...),Health

During the second quarter and first six months of fiscal 2008, sales of the Company's medical products and services increased 18 percent and 14 percent, respectively, compared to the prior year periods. The increase was due chiefly to higher sales of the Company's dialysate meters and standard solution products.

During the second quarter and first six months of fiscal 2008, sales of DataTrace data logger products increased compared to the prior year. For the quarter, DataTrace sales increased 19 percent compared to the same period last year, while sales increased four percent for the six month period compared to the same period last year. The increase in DataTrace sales during the quarter reflects higher shipments of both new products and service, while the increase for the six month period is attributable chiefly to higher service revenues.

Second quarter sales of Raven biological indicator products increased 26 percent compared to the prior year period. The Raven biological indicator products were acquired on May 4, 2006. For this reason, sales of the company's Raven biological indicator products benefited from an extra five

weeks of sales for the current six month period when compared to the prior year period and were up 44 percent.

Profitability for the second quarter and six month periods of fiscal 2008 were up compared to the prior fiscal year due chiefly to the increase in revenues and a gain in our gross margin percentage. For the quarter, net income increased 40 percent and exceeded sales growth which was 16 percent for the quarter. For the first six month period, net income increased 35 percent and exceeded sales growth which was also 16 percent for
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