TECHNE CORPORATION AND SUBISIDARIES (in thousands of $'s, except per share data) Increase (Decrease) Fiscal 2004 From FY 2003 ----------------- ------------------ First Percent First Quarter Of Sales Quarter ------- -------- ------- Sales 37,993 100% 3,445 Cost of sales 8,663 23% (27) ------ ---- ----- Gross margin 29,330 77% 3,472 Gross margin percentage 77.2% SG&A expense 5,083 13% 132 R&D expense 4,963 13% 130 Amortization expense 400 1% (84) Interest expense 175 -- (148) Interest income (726) (2%) 64 Other non-operating exp., net 78 -- (72) ------ ---- ------ 9,973 26% 22 ------ ---- ------ Earnings before income taxes 19,357 51% 3,450 Income taxes 6,785 18% 1,323 ------ ---- ------ 12,572 33% 2,127 Diluted earnings per share 0.30 Weighted average diluted shares outstanding 41,600 HEMATOLOGY DIVISION (in thousands of $'s) Increase (Decrease) Fiscal 2004 From FY 2003 ----------------- ------------------ First Percent First Quarter Of Sales Quarter ------- -------- ------- Sales 4,281 100% 507 Cost of sales 2,346 55% 209 ------ ---- ----- Gross margin 1,935 45% 298 Gross margin percentage 45.2% SG&A expense 391 9% (9) R&D expense 191 4% 18 Interest income (77) (2%) 24 ------ ---- ----- 505 12% 33 ------ ---- ----- Pretax result 1,430 33% 265 ====== ==== ===== BIOTECHNOLOGY DIVISION (in thousands of $'s) Increase (Decrease) Fiscal 2004 From FY 2003 ----------------- ------------------ First Percent First Quarter Of Sales Quarter ------- -------- ------- Sales 28,653 100% 2,016 Intersegment sales (4,621) (471) ------ ------ 24,032 1,545 Cost of sales 5,916 21% 190 Intersegment sales (4,520) (370) ------ ------ 1,396 (180) Gross margin 22,636 79% 1,725 Gross margin percentage 79.4% SG&A expense 2,650 9% (62) R&D expense 4,164 15% 201 Amortization expense 400 1% (84) Interest income (406) (1%) 86 ------ ---- ------ 6,808 24% 141 ------ ---- ------ Pretax result 15,828 55% 1,584 ====== ==== ====== R&D SYSTEMS EUROPE (in thousands of Br. pounds) Increase (Decrease) Fiscal 2004 From FY 2003 ----------------- ------------------ First Percent First Quarter Of Sales Quarter ------- -------- ------- Sales 5,980 100% 663 Intersegment sales -- 9 ------ ------ 5,980 672 Cost of sales 3,040 51% (157) ------ ---- ------ Gross margin 2,940 49% 820 Gross margin percentage 49.2% SG&A expense 1,050 18% 17 Interest income (127) (2%) (23) Exchange loss/(gain) (49) (1%) (80) ------ ---- ------ 874 15% (86) ------ ---- ------ Pretax result 2,066 35% 906 ====== ==== ====== R&D SYSTEMS EUROPE (in thousands of $'s) Increase (Decrease) Fiscal 2004 From FY 2003 ----------------- ------------------ First Percent First Quarter Of Sales Quarter ------- -------- ------- Sales 9,680 100% 1,379 Intersegment sales -- 14 ------ ------ 9,680 1,393 Cost of sales 4,921 51% (71) ------ ---- ------ Gross margin 4,759 49% 1,450 Gross margin percentage 49.2% SG&A expense 1,700 18% 88 Interest income (206) (2%) (43) Exchange loss/(gain) (84) (1%) (133) ------ ---- ------ 1,410 15% (88) ------ ---- ------ Pretax result 3,349 35% 1,538 ====== ==== ====== CORPORATE AND OTHER (1) (in thousands of $'s) Increase (Decrease) Fiscal 2004 From FY 2003 ----------------- ------------------ First First Quarter Quarter ------- ------- Interest income 37 2 Rental income 19 19 ----- --- 56 21 SG&A expense 342 115 R&D-CCX losses 436 (83) R&D-DGI losses 172 (6) Interest expense 175 (148) Building expense 181 80 ----- --- 1,306 (42) ----- --- Pretax result (1,250) 63 ===== === (1) Unallocated corporate expenses and Techne's share of losses by ChemoCentryx, Inc. (CCX) and Discovery Genomics, Inc. (DGI)