Neogen reports 16% net income increase

CONTACT: Richard R. Current, Vice President and CFO, 517/372-9200

LANSING, Mich., March 26, 2002 - Neogen Corporation (Nasdaq: NEOG) today reported that its third quarter was its 35th straight profitable quarter from operations, and the 41st quarter of the last 45 when the Company reported increases in revenue compared to the prior year.

Neogen's third quarter revenues were $9,655,000, a 12% increase compared to $8,601,000 in the prior year's comparable quarter. Revenues for the Company's first 9 months were $30,085,000, a 17% increase compared to $25,734,000 in the prior year. Earnings per share were $0.13 for the third quarter, ended Feb. 28, 2002, as compared with $0.12 for the same period last year.

Earnings per share for the first 9 months were $0.45 per share, as compared to $0.39 for the prior year. Neogen's operating profits for the quarter increased 18% compared to a year earlier. On a year-to-date basis, operating profits were 39% greater than last year.

"We are very proud of our record of solid sales growth and profitability, while at the same time, maintaining a strong balance sheet," said James Herbert, Neogen's president. "Few companies in today's business environment can match Neogen's 9-year record of consistently reporting sales and operating profits that compare very favorably to the figures achieved in the prior year."

Neogen's quarterly revenue performance was led by its Food Safety Division, which posted an 18% increase over sales figures of a year ago. The growth was paced by an 83% improvement in the sales of test kits to detect allergenic residues in food, and a 37% quarter-to-quarter increase in sales of test kits to detect harmful bacteria, such as E. coli O157:H7, Salmonella and Listeria.

The Company's Animal Safety Division year-to-date revenues are 16% over the prior year's comparable period. Its increase was led by a 40% surge in sales of Neogen's Triple Crown equine products and a 50% growth in sales of veterinary instruments.

"During the quarter we made initial sales as part of our exclusive 3-year agreement to provide veterinary instruments to retail giant Tractor Supply Company," said Lon Bohannon, Neogen's chief operating officer. "We believe we can build on this success to significantly increase sales of our Animal Safety products to the retail market segment in future quarters."

In the third quarter, Neogen was named to The Bloomberg 100, an annual listing of top performing stocks. The Company's Bloomberg 100 recognition follows Neogen's second consecutive inclusion on Forbes Magazine's annual list of the 200 Best Small Companies in America, as well as being named one of only four Michigan companies to be given a perfect "A+" rating in the annual review of public companies by The Detroit News.

Neogen Corporation develops and markets products and services 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 and nutritional supplements.

NEOGEN CORPORATION UNAUDITED SUMMARIZED CONSOLIDATED OPERATING DATA
(In thousands, except for per share and percentages)
  Quarter Ended
2002
Feb. 28
2001
Nine months ended
2002
Feb. 28
2001
Revenue $9,655 $8,601 $30,085 $25,734
Operating Income 1,108 937 4,036 2,899
Net Income 826 714 2,833 2,246
Net Income Per Share $0.13 $0.12 $0.45 $0.39
NEOGEN CORPORATION SUMMARIZED CONSOLIDATED BALANCE SHEET DATA
(In thousands)
  Feb. 28
2002
May 31
2001
Assets
Current Assets $20,944 $21,579
Property and Equipment 3,215 2,721
Goodwill 11,473 7,076
Other Assets 1,835 1,646
Total $37,467 $33,022
 
Liabilities & Stockholders' Equity
Current Liabilities $2,951 $3,335
Long-term Liabilities 322 530
Equity 34,194 29,337
Total $37,467 $33,022