Susquehanna International Group initiates Neogen coverage

April 04, 2006

Press Release
CONTACT: Richard R. Current, Vice President & CFO, 517-372-9200

LANSING, Mich., April 4, 2006 – Neogen Corporation (NASDAQ: NEOG) announced today that Susquehanna International Group (SIG) has initiated coverage on the Company.

Susquehanna initiated research coverage by giving Neogen its highest rating in its recent report. SIG ( is a market maker in approximately 6,000 stocks, and is among the nation’s largest option market makers.

“We are obviously very pleased that a firm such as Susquehanna 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.”

Susquehanna is the fourth firm providing research coverage on Neogen, joining Stonegate Securities, Hilliard Lyons, and Roth Capital Partners.

On March 23, Neogen announced that its net income for the third quarter of FY 2006, which ended Feb. 28, increased 34% from the previous year’s third quarter. On a per share basis, net income in the quarter rose to $0.19, compared to the prior year’s $0.14. Year-to-date net income for the first nine months of Neogen’s 2006 fiscal year increased 34% to $5,984,000 from $4,471,000 in FY 2005, or to $0.70 per share in the current year from $0.53 in the prior year.

Third quarter revenues increased 22% to $17,583,000. Year-to-date, revenues rose 13% in the fiscal year to $52,617,000. The third quarter was the 52nd consecutive profitable quarter from operations for the company, and the 56th quarter of the past 61 quarters to show increased revenues as compared with the previous year.

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, unique proteins, 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.