SEGMENT INFORMATION TECHNE CORPORATION AND SUBISIDARIES (in thousands of $'s, except per share data) Increase (Decrease) Fiscal 2008 From Fiscal 2007 ------------------ ------------------- First Percent First Quarter Of Sales Quarter ------- -------- ------------------- Sales 57,987 100% 5,636 Cost of sales 12,104 21% 867 ------- ------- ------ Gross margin 45,883 79% 4,769 Gross margin percentage 79.1% SG&A expense 8,090 14% 1,023 R&D expense 5,181 9% 326 Amortization expense 288 - (115) Interest expense 0 - (268) Interest income (2,998) (5%) (1,322) Other non-operating expense,net 569 1% 84 ------- ------- ------ 11,130 19% (272) ------- ------- ------ Earnings before income taxes 34,753 60% 5,041 Income taxes 11,681 20% 1,600 ------- ------- ------ 23,072 40% 3,441 ======= ======= ====== Diluted earnings per share .58 Weighted average diluted shares outstanding 39,587 BIOTECHNOLOGY (1) (in thousands of $'s) Increase (Decrease) Fiscal 2008 From Fiscal 2007 ------------------ ------------------- First Percent First Quarter Of Sales Quarter ------- -------- ------------------- Sales 45,328 100% 3,707 Intersegment sales (6,447) (748) ------- ------ 38,881 2,959 Cost of sales 8,997 20% 515 Intersegment sales (6,174) (650) ------- ------ 2,823 (135) ------- ------- ------ Gross margin 36,058 80% 3,094 Gross margin percentage 80.2% SG&A expense 4,624 10% 611 R&D expense 5,002 11% 327 Amortization expense 288 1% (115) Interest, net (1,257) (2%) (662) Exchange loss/(gain) 34 -- 34 ------- ------- ------ 8,691 20% 195 ------- ------- ------ Pretax result 27,367 60% 2,899 ======= ======= ====== (1) Includes R&D Systems' Biotechnology Division, BiosPacific, Inc. and R&D China R&D SYSTEMS EUROPE (in thousands of British pounds) Increase (Decrease) Fiscal 2008 From Fiscal 2007 ------------------ ------------------- First Percent First Quarter Of Sales Quarter ------- -------- ------------------- Sales 7,605 100% 735 Cost of sales 3,455 45% 170 ------- ------- ------ Gross margin 4,150 55% 565 Gross margin percentage 54.6% SG&A expense 1,114 15% 40 Interest income (683) (9%) (273) Exchange loss/(gain) (96) (1%) (174) ------- ------- ------ 335 5% (407) ------- ------- ------ Pretax result 3,815 50% 972 ======= ======= ====== R&D SYSTEMS EUROPE (in thousands of $'s) Increase (Decrease) Fiscal 2008 From Fiscal 2007 ------------------ ------------------- First Percent First Quarter Of Sales Quarter ------- -------- ------------------- Sales 15,449 100% 2,522 Cost of sales 7,020 45% 839 ------- ------- ------ Gross margin 8,429 55% 1,683 Gross margin percentage 54.6% SG&A expense 2,262 15% 242 Interest income (1,387) (9%) (616) Exchange loss/(gain) (198) (1%) (345) ------- ------- ------ 677 5% (719) ------- ------- ------ Pretax result 7,752 50% 2,402 ======= ======= ====== HEMATOLOGY (in thousands of $'s) Increase (Decrease) Fiscal 2008 From Fiscal 2007 ------------------ ------------------- First Percent First Quarter Of Sales Quarter ------- -------- ------------------- Sales 3,657 100% 155 Cost of sales 2,261 62% 163 ------- ------- ------ Gross margin 1,396 38% (8) Gross margin percentage 38.2% SG&A expense 467 13% 69 R&D expense 179 5% (1) Interest, net (120) (4%) (39) ------- ------- ------ 526 14% 29 ------- ------- ------ Pretax result 870 24% (37) ======= ======= ====== CORPORATE AND OTHER (2) (in thousands of $'s) Increase (Decrease) Fiscal 2008 From Fiscal 2007 ----------- ------------------- First First Quarter Quarter ------- ------- Interest income 234 5 Rental income 67 (232) ------- ------- 301 (227) SG&A expense 737 101 Interest expense -- (268) Other-Building expenses 544 34 Other-Hemerus losses 131 4 Other-Nephromics losses 125 125 ------- ------- 1,537 (4) ------- ------- Pretax result (1,236) (223) ======= ======= (2) Unallocated corporate expenses and Techne's share of losses by Hemerus Medical, LLC and Nephromics, LLC.