|CONTACT: Richard R Current, Vice President & CFO, 517/372-9200|
LANSING, Mich., Oct. 8, 2009 — Neogen Corporation (NASDAQ: NEOG) announced today the formation of a new subsidiary in Brazil, Neogen do Brasil (Neogen of Brazil). The new company, headquartered near Sao Paulo, will distribute Neogen’s food safety products throughout Brazil.
Neogen do Brasil was created to accelerate the success of Neogen products in Brazil, which has become one of the world’s largest food producers and exporters. Brazil is the world leader in the export of numerous food commodities, including beef, poultry, soybeans, coffee, sugar, and orange juice. In addition, Brazil-based food producers have exerted a great deal of influence outside of that country, including the September acquisition of the majority stake in the second largest poultry producer in the United States, Pilgrim’s Pride, by Brazil-based JBS.
“Now with the fifth largest economy in the world, one of only a few countries likely to show an increase in its gross domestic product for 2009, and a major food producer and exporter, Brazil has become a very important country to Neogen’s future success,” said Lon Bohannon, Neogen’s president and chief operating officer. “Much as we did earlier in Scotland, Germany, and Mexico, we now see an opportunity to greatly strengthen our presence in an important country by distributing our own products in Brazil. We believe Brazil holds substantial unrealized opportunities for sales growth.”
In its most recently completed fiscal quarter (Aug. 31), approximately 41% of Neogen’s revenue came from sources outside of the United States.
Based on recent sales performance, Neogen’s new company will start business with an annual revenue base of approximately $1 million (U.S.). Josue Furtado Fihlo, a Brazilian food safety expert with many years of experience distributing Neogen’s products, will manage the new company, and Flavio Mello, also with extensive experience with Neogen’s product lines, will serve as the company’s sales manager.
“We are pleased to have both Josue and Flavio on board with us as we work to expand Neogen’s presence in Brazil,” said Ed Bradley, Neogen’s vice president for Food Safety. “I have enjoyed close working relationships with both for years as distributors of Neogen’s food safety products.”
Neogen Corporation develops and markets products dedicated to food and animal safety. The company’s Food Safety Division markets dehydrated culture media, and diagnostic test kits to detect foodborne bacteria, natural toxins, genetic modifications, food allergens, drug residues, plant diseases and sanitation concerns. Neogen’s Animal Safety Division markets a complete line of diagnostics, veterinary instruments, veterinary pharmaceuticals, nutritional supplements, disinfectants, and rodenticides.
Certain portions of this news release that do not relate to historical financial information constitute forward-looking statements. These forward-looking statements are subject to certain risks and uncertainties. Actual future results and trends may differ materially from historical results or those expected depending on a variety of factors listed in Management’s Discussion and Analysis of Financial Condition and Results of Operations in the Company’s most recently filed Form 10-K.