SEGMENT INFORMATION TECHNE CORPORATION AND SUBISIDARIES (in thousands of $'s, except per share data) Increase(Decrease) Fiscal 2006 From Fiscal 2005 --------------------- ------------------ First Percent First Quarter Of Sales Quarter ------- -------- ------- Sales 47,709 100% 6,790 Cost of sales 11,096 23% 2,209 ------- ---- ------- Gross margin 36,613 77% 4,581 Gross margin percentage 76.7% SG&A expense 6,454 14% 820 R&D expense 4,717 10% 29 Amortization expense 492 1% 187 Interest expense 223 -- (22) Interest income (974) (2%) 79 Other non-operating ex., net 211 -- (255) ------- -------- ------- 11,123 23% 838 ------- -------- ------- Earnings before income taxes 25,490 54% 3,743 Income taxes 8,489 18% 934 ------- -------- ------- 17,001 36% 2,809 ======= ======== ======= Diluted earnings per share 0.43 Weighted average diluted shares outstanding 39,669 BIOTECHNOLOGY (1) (in thousands of $'s) Increase(Decrease) Fiscal 2006 From Fiscal 2005 --------------------- ------------------ First Percent First Quarter Of Sales Quarter ------- -------- ------- Sales 37,599 100% 6,908 Intersegment sales (5,299) (495) ------- ------- 32,300 6,413 Cost of sales 8,470 23% 2,359 Intersegment sales (5,323) (567) ------- -------- ------- 3,147 1,792 Gross margin 29,153 77% 4,621 Gross margin percentage 77.5% SG&A expense 3,639 10% 666 R&D expense 4,532 12% 32 Amortization expense 492 1% 187 Interest, net (268) (1%) 146 ------- -------- ------- 8,395 22% 1,031 ------- -------- ------- Pretax result 20,758 55% 3,590 ======= ======== ======= (1) Fiscal 2006 includes R&D Systems' Biotechnology Division, Fortron Bio Science, Inc., and BiosPacific, Inc. R&D SYSTEMS EUROPE (in thousands of British pounds) Increase(Decrease) Fiscal 2006 From Fiscal 2005 --------------------- ------------------ First Percent First Quarter Of Sales Quarter ------- -------- ------- Sales 6,690 100% 610 Cost of sales 3,292 50% 361 ------- -------- ------- Gross margin 3,398 50% 249 Gross margin percentage 50.8% SG&A expense 1,004 15% 54 Interest income (326) (5%) (72) Exchange loss/(gain) 15 -- (11) ------- -------- ------- 693 10% (29) ------- -------- ------- Pretax result 2,705 40% 278 ======= ======== ======= R&D SYSTEMS EUROPE (in thousands of $'s) Increase(Decrease) Fiscal 2006 From Fiscal 2005 --------------------- ------------------ First Percent First Quarter Of Sales Quarter ------- -------- ------- Sales 11,875 100% 856 Cost of sales 5,844 50% 532 ------- -------- ------- Gross margin 6,031 50% 324 Gross margin percentage 50.8% SG&A expense 1,782 15% 60 Interest income (579) (5%) (119) Exchange loss 28 -- (19) ------- -------- ------- 1,231 10% (78) ------- -------- ------- Pretax result 4,800 40% 402 ======= ======== ======= HEMATOLOGY (in thousands of $'s) Increase(Decrease) Fiscal 2006 From Fiscal 2005 --------------------- ------------------ First Percent First Quarter Of Sales Quarter ------- -------- ------- Sales 3,534 100% (479) Cost of sales 2,105 60% (115) ------- -------- ------- Gross margin 1,429 40% (364) Gross margin percentage 40.4% SG&A expense 384 11% (25) R&D expense 185 5% (3) Interest, net (37) (1%) 19 ------- -------- ------- 532 15% (9) ------- -------- ------- Pretax result 897 25% (355) ======= ======== ======= CORPORATE AND OTHER (2) (in thousands of $'s) Increase(Decrease) Fiscal 2006 From Fiscal 2005 ----------- ------------------ First First Quarter Quarter ------- ------- Interest income 90 48 Rental income 342 323 ------- ------- 432 371 SG&A expense 649 119 Interest expense 223 59 Other-Hemerus losses 82 79 Other-Building expenses 443 8 ------- ------- 1,397 265 ------- ------- Pretax result (965) 106 ======= ======= (2) Unallocated corporate expenses and Techne's share of losses by Hemerus Medical, LLC.