Stonegate Securities initiates Neogen coverage

LANSING, Mich., Feb. 13, 2003 - Neogen Corporation (Nasdaq: NEOG) announced today that a fifth securities firm has now initiated coverage on the Company.

Texas-based Stonegate Securities initiated research coverage with an extensive 25-page report dated Feb. 10, 2003. Stonegate Securities is a 30-year-old broker dealer that is focused on identifying undervalued small cap public companies with market caps of less than $500 million.

"We are obviously very pleased that another securities firm now covers us," said Richard Current, Neogen's chief financial officer. "We are very proud of our record of past success and strong prospect for continued growth. We welcome the increased scrutiny of financial professionals, and the opportunity to have the Neogen story told to an even wider audience in the investment community."

With the report, Stonegate joins Hilliard Lyons, Red Chip, Roth Capital Partners and Kansas City Associates (a division of Fahnestock & Co. Inc.) in covering Neogen.

In January, Neogen announced that net income for the second quarter of its 2003 fiscal year, which ended Nov. 30, was 22% higher than the previous year's second quarter. The quarter marked the 39th consecutive profitable quarter from operations for the Company. Net income per share was $0.22 for the second quarter as compared with $0.18 in the prior year. Net income for the first six months was $0.39 per share, as compared to $0.32 for the prior year.

Neogen's second quarter revenues were $12,273,000 - the first time the Company's quarterly revenues have exceeded $12 million. Revenues were 15% greater than last year's second quarter of $10,699,000. Revenues for the Company's first six months were $23,170,000 compared to $20,431,000 in the prior year. Gross margin improved to 55% in the second quarter, up from 53% in the prior year.

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 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.