Neogen opens Chinese facilities

April 09, 2002

CONTACT: Ed Bradley, V.P. Food Safety Sales & Marketing, 517-372-9200

LANSING, Mich., April 9, 2002 - Neogen Corporation (Nasdaq: NEOG) announced today the opening of its sales and distribution center in Shanghai, China. This expansion will allow the Company to better serve the expanding food safety market, as well as more closely oversee its current Chinese animal safety operations.

Trained Chinese sales and technical service personnel with a broad understanding of food safety will assist Neogen distributors and customers throughout China. The addition of these facilities will also help Neogen manage its expanding Chinese production of animal safety products. The majority of these products are shipped to the United States for use by veterinarians, farmers and ranchers.

"China's recent entry into the World Trade Organization, and trend toward larger 'factory farms' point strongly to the need to rapidly escalate its food safety testing," said James Herbert, Neogen's president. "As China strives to become a larger worldwide food exporter, its products must be verified to meet worldwide quality and safety standards."

China has grown into one of the world's largest food animal producers. It is by far the largest pork producer, with an annual output that is approximately five times greater than the second largest pork producer, the United States. China's expanding poultry production is now four times greater than it was in 1985, and second only to the United States in overall annual output.

Neogen Food Safety products of most interest in the Chinese market include rapid tests for the detection of natural toxins in grains, foodborne bacteria and pesticides, as well as dehydrated culture media. In many cases, Neogen's products in China will be used by the same large, U.S.-based multinational companies that use Neogen's products domestically. Neogen's in-country operation will allow the Company to accept payments in Chinese currency and curtail international shipping delays - both very important in Neogen's plans to expand sales in China.

"Neogen has developed mutually-beneficial working relationships with Chinese companies over the past several years that have provided a great deal of insight into the Chinese business culture," said Chuck Bird, Neogen's international manager. "This in-country presence will allow us to reduce the currency exchange problems all companies face when doing business in China by allowing us to both buy and sell in local currency - a big advantage."

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.

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.


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