SEGMENT INFORMATION TECHNE CORPORATION AND SUBISIDARIES (in thousands of $'s, except per share data) Increase (Decrease) Fiscal 2007 From Fiscal 2006 --------------------- --------------------- First Percent First Quarter Of Sales Quarter ------- -------- ------- Sales 52,351 100% 4,642 Cost of sales 11,237 21% 141 ------- -------- ------- Gross margin 41,114 79% 4,501 Gross margin percentage 78.5% SG&A expense 7,067 13% 613 R&D expense 4,855 9% 138 Amortization expense 403 1% (89) Interest expense 268 1% 45 Interest income (1,676) (3%) (702) Other non-operating ex., net 485 1% 274 ------- -------- ------- 11,402 22% 279 ------- -------- ------- Earnings before income taxes 29,712 57% 4,222 Income taxes 10,081 20% 1,592 ------- -------- ------- 19,631 37% 2,630 ======= ======== ======= Diluted earnings per share .50 Weighted average diluted shares outstanding 39,469 BIOTECHNOLOGY (1) (in thousands of $'s) Increase (Decrease) Fiscal 2007 From Fiscal 2006 --------------------- --------------------- First Percent First Quarter Of Sales Quarter ------- -------- ------- Sales 41,621 100% 4,022 Intersegment sales (5,699) (400) ------- -------- ------- 35,922 3,622 Cost of sales 8,482 20% 12 Intersegment sales (5,524) (201) ------- -------- ------- 2,958 (189) Gross margin 32,964 80% 3,811 Gross margin percentage 79.6% SG&A expense 4,013 10% 374 R&D expense 4,675 11% 143 Amortization expense 403 1% (89) Interest, net (595) (1%) (327) ------- -------- ------- 8,496 21% 101 ------- -------- ------- Pretax result 24,468 59% 3,710 ======= ======== ======= (1) Includes R&D Systems' Biotechnology Division, Fortron Bio Science, Inc., and BiosPacific, Inc. R&D SYSTEMS EUROPE (in thousands of British pound sterling) Increase (Decrease) Fiscal 2007 From Fiscal 2006 --------------------- --------------------- First Percent First Quarter Of Sales Quarter ------- -------- ------- Sales 6,870 100% 180 Cost of sales 3,285 48% (7) ------- -------- ------- Gross margin 3,585 52% 187 Gross margin percentage 52.2% SG&A expense 1,074 16% 70 Interest income (410) (6%) (84) Exchange loss/(gain) 78 1% 63 ------- -------- ------- 742 11% 49 ------- -------- ------- Pretax result 2,843 41% 138 ======= ======== ======= R&D SYSTEMS EUROPE (in thousands of $'s) Increase (Decrease) Fiscal 2007 From Fiscal 2006 --------------------- --------------------- First Percent First Quarter Of Sales Quarter ------- -------- ------- Sales 12,927 100% 1,052 Cost of sales 6,181 48% 337 ------- -------- ------- Gross margin 6,746 52% 715 Gross margin percentage 52.2% SG&A expense 2,020 16% 238 Interest income (771) (6%) (192) Exchange loss 147 1% 119 ------- -------- ------- 1,396 11% 165 ------- -------- ------- Pretax result 5,350 41% 550 ======= ======== ======= HEMATOLOGY (in thousands of $'s) Increase (Decrease) Fiscal 2007 From Fiscal 2006 --------------------- --------------------- First Percent First Quarter Of Sales Quarter ------- -------- ------- Sales 3,502 100% (32) Cost of sales 2,098 60% (7) ------- -------- ------- Gross margin 1,404 40% (25) Gross margin percentage 40.1% SG&A expense 398 11% 14 R&D expense 180 5% (5) Interest, net (81) (2%) (44) ------- -------- ------- 497 14% (35) ------- -------- ------- Pretax result 907 26% 10 ======= ======== ======= CORPORATE AND OTHER (2) (in thousands of $'s) Increase (Decrease) Fiscal 2007 From Fiscal 2006 --------------------- --------------------- First First Quarter Quarter ------- ------- Interest income 229 139 Rental income 299 (43) ------- ------- 528 96 SG&A expense 636 (13) Interest expense 268 45 Other-Building expenses 510 67 Other-Hemerus losses 127 45 ------- ------- 1,541 144 ------- ------- Pretax result (1,013) (48) ======= ======= (2) Unallocated corporate expenses and Techne's share of losses by Hemerus Medical, LLC.