SEGMENT INFORMATION TECHNE CORPORATION AND SUBISIDARIES (in thousands of $'s, except per share data) Increase (Decrease) Fiscal 2005 From Fiscal 2004 ----------------- ------------------- First Percent First Quarter Of Sales Quarter ------- -------- ------- Sales 40,919 100% 2,926 Cost of sales 8,887 22% 224 ------- -------- ------ Gross margin 32,032 78% 2,702 Gross margin percentage 78.3% SG&A expense 5,634 14% 551 R&D expense 4,688 11% (275) Amortization expense 305 1% (95) Interest expense 245 1% 70 Interest income (1,053) (3%) (327) Other non-operating exp., net 466 1% 388 ------- -------- ------ 10,285 25% 312 ------- -------- ------ Earnings before income taxes 21,747 53% 2,390 Income taxes 7,555 18% 770 ------- -------- ------ 14,192 35% 1,620 ======= ======== ====== Diluted earnings per share 0.34 Weighted average diluted shares outstanding 41,676 HEMATOLOGY DIVISION (in thousands of $'s) Increase (Decrease) Fiscal 2005 From Fiscal 2004 ----------------- ------------------- First Percent First Quarter Of Sales Quarter ------- -------- ------- Sales 4,013 100% (268) Cost of sales 2,220 55% (126) ------- -------- ------- Gross margin 1,793 45% (142) Gross margin percentage 44.7% SG&A expense 409 10% 18 R&D expense 188 5% (3) Interest, net (56) (1%) 21 ------- -------- ------- 541 14% 36 ------- -------- ------- Pretax result 1,252 31% (178) ======= ======== ======= BIOTECHNOLOGY DIVISION (in thousands of $'s) Increase (Decrease) Fiscal 2005 From Fiscal 2004 ----------------- ------------------- First Percent First Quarter Of Sales Quarter ------- -------- ------- Sales 30,691 100% 2,038 Intersegment sales (4,804) (183) ------- ------- 25,887 1,855 Cost of sales 6,111 20% 195 Intersegment sales (4,756) (235) ------- ------- 1,355 (40) ------- -------- ------- Gross margin 24,532 80% 1,895 Gross margin percentage 80.1% SG&A expense 2,973 10% 322 R&D expense 4,500 15% 336 Amortization expense 305 -- (95) Interest, net (414) (1%) (8) ------- -------- ------- 7,364 24% 555 ------- -------- ------- Pretax result 17,168 56% 1,340 ======= ======== ======= R&D SYSTEMS EUROPE (in thousands of Br. pounds) Increase (Decrease) Fiscal 2005 From Fiscal 2004 ----------------- ------------------- First Percent First Quarter Of Sales Quarter ------- -------- ------- Sales 6,080 100% 100 Cost of sales 2,931 48% (109) ------- -------- ------- Gross margin 3,149 52% 209 Gross margin percentage 51.8% SG&A expense 950 16% (100) Interest income (254) (4%) (127) Exchange loss/(gain) 26 -- 75 ------- -------- ------- 722 12% (152) ------- -------- ------- Pretax result 2,427 40% 361 ======= ======== ======= R&D SYSTEMS EUROPE (in thousands of $'s) Increase (Decrease) Fiscal 2005 From Fiscal 2004 ----------------- ------------------- First Percent First Quarter Of Sales Quarter ------- -------- ------- Sales 11,019 100% 1,339 Cost of sales 5,312 48% 390 ------- -------- ------- Gross margin 5,707 52% 949 Gross margin percentage 51.8% SG&A expense 1,722 16% 23 Interest income (460) (4%) (254) Exchange loss 47 -- 131 ------- -------- ------- 1,309 12% (100) ------- -------- ------- Pretax result 4,398 40% 1,049 ======= ======== ======= CORPORATE AND OTHER (1) (in thousands of $'s) Increase (Decrease) Fiscal 2005 From Fiscal 2004 ----------------- ------------------- First First Quarter Quarter ------- ------- Interest income 42 5 Rental income 19 -- ------- ------- 61 5 SG&A expense 530 188 R&D-CCX losses -- (436) R&D-DGI losses -- (172) Other-Hemerus losses 74 74 Interest expense 164 (11) Building expense 364 183 ------- ------- 1,132 (174) ------- ------- Pretax result (1,097) 179 ======= ======= (1) Unallocated corporate expenses and Techne's share of losses by ChemoCentryx, Inc. (CCX), Discovery Genomics, Inc. (DGI) and Hemerus Medical, LLC.