SEGMENT INFORMATION TECHNE CORPORATION AND SUBISIDARIES (in thousands of $'s, except per share data) Increase (Decrease) Fiscal 2008 From Fiscal 2007 -------------------------------- ----------------------- First Second Percent First Second Quarter Quarter YTD Of Sales Quarter Quarter YTD ------- ------- ------- -------- ------- ------- ------- Sales 57,987 62,142 120,129 100% 5,636 9,633 15,269 Cost of sales 12,104 12,751 24,855 21% 867 2,037 2,904 ------- ------- ------- -------- ------- ------- ------- Gross margin 45,883 49,391 95,274 79% 4,769 7,596 12,365 Gross margin percentage 79.1% 79.5% 79.3% SG&A expense 8,090 10,645 18,735 15% 1,023 1,815 2,838 R&D expense 5,181 5,562 10,743 9% 326 518 844 Amortization expense 288 282 570 -- (115) (122) (237) Interest expense 0 0 0 -- (268) (815) (1,083) Interest income (2,998) (3,252) (6,250) (5%) (1,322) (1,296) (2,618) Other non-operating expense, net 569 573 1,142 1% 84 145 229 ------- ------- ------- -------- ------- ------- ------- 11,130 13,810 24,940 20% (272) 245 (27) ------- ------- ------- -------- ------- ------- ------- Earnings before income taxes 34,753 35,581 70,334 59% 5,041 7,351 12,392 Income taxes 11,681 11,942 23,623 20% 1,600 2,375 3,975 ------- ------- ------- -------- ------- ------- ------- 23,072 23,639 46,711 39% 3,441 4,976 8,417 ======= ======= ======= ======== ======= ======= ======= Diluted earnings per share .58 .60 1.18 Weighted average diluted shares outstanding 39,587 39,497 39,542 BIOTECHNOLOGY (1) (in thousands of $'s) Increase (Decrease) Fiscal 2008 From Fiscal 2007 -------------------------------- ----------------------- First Second Percent First Second Quarter Quarter YTD Of Sales Quarter Quarter YTD ------- ------- ------- -------- ------- ------- ------- Sales 45,328 46,576 91,904 100% 3,707 6,503 10,210 Intersegment sales (6,447) (7,433)(13,880 (748) (786) (1,534) ------- ------- ------- ------- ------- ------- 38,881 39,143 78,024 2,959 5,717 8,676 Cost of sales 8,997 9,612 18,609 20% 515 1,929 2,444 Intersegment sales (6,174) (7,430)(13,604) (650) (995) (1,645) ------- ------- ------- ------- ------- ------- 2,823 2,182 5,005 (135) 934 799 ------- ------- ------- -------- ------- ------- ------- Gross margin 36,058 36,961 73,019 80% 3,094 4,783 7,877 Gross margin percentage 80.2% 79.4% 79.8% SG&A expense 4,624 5,534 10,158 11% 611 870 1,481 R&D expense 5,002 5,368 10,370 11% 327 514 841 Amortization expense 288 282 570 1% (115) (122) (237) Interest, net (1,257) (1,309) (2,566) (3%) (662) (587) (1,249) Exchange loss/(gain) 34 12 46 -- 34 12 46 ------- ------- ------- -------- ------- ------- ------- 8,691 9,887 18,578 20% 195 687 882 ------- ------- ------- -------- ------- ------- ------- Pretax result 27,367 27,074 54,441 60% 2,899 4,096 6,995 ======= ======= ======= ======== ======= ======= ======= (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 Second Percent First Second Quarter Quarter YTD Of Sales Quarter Quarter YTD ------- ------- ------- -------- ------- ------- ------- Sales 7,605 9,301 16,906 100% 735 1,450 2,185 Cost of sales 3,455 4,053 7,508 44% 170 287 457 ------- ------- ------- -------- ------- ------- ------- Gross margin 4,150 5,248 9,398 56% 565 1,163 1,728 Gross margin percentage 54.6% 56.4% 55.6% SG&A expense 1,114 1,276 2,390 14% 40 40 80 Interest income (683) (773) (1,456) (8%) (273) (293) (566) Exchange loss/(gain) (96) (81) (177) (1%) (174) (17) (191) ------- ------- ------- -------- ------- ------- ------- 335 422 757 5% (407) (270) (677) ------- ------- ------- -------- ------- ------- ------- Pretax result 3,815 4,826 8,641 51% 972 1,433 2,405 ======= ======= ======= ======== ======= ======= ======= R&D SYSTEMS EUROPE (in thousands of $'s) Increase (Decrease) Fiscal 2008 From Fiscal 2007 -------------------------------- ----------------------- First Second Percent First Second Quarter Quarter YTD Of Sales Quarter Quarter YTD ------- ------- ------- -------- ------- ------- ------- Sales 15,449 19,027 34,476 100% 2,522 3,770 6,292 Cost of sales 7,020 8,293 15,313 44% 839 974 1,813 ------- ------- ------- -------- ------- ------- ------- Gross margin 8,429 10,734 19,163 56% 1,683 2,796 4,479 Gross margin percentage 54.6% 56.4% 55.6% SG&A expense 2,262 2,599 4,861 14% 242 194 436 Interest income (1,387) (1,576) (2,963) (9%) (616) (643) (1,259) Exchange loss (198) (165) (363) (1%) (345) (39) (384) ------- ------- ------- -------- ------- ------- ------- 677 858 1,535 5% (719) (488) (1,207) ------- ------- ------- -------- ------- ------- ------- Pretax result 7,752 9,876 17,628 51% 2,402 3,284 5,686 ======= ======= ======= ======== ======= ======= ======= HEMATOLOGY (in thousands of $'s) Increase (Decrease) Fiscal 2008 From Fiscal 2007 -------------------------------- ----------------------- First Second Percent First Second Quarter Quarter YTD Of Sales Quarter Quarter YTD ------- ------- ------- -------- ------- ------- ------- Sales 3,657 3,972 7,629 100% 155 146 301 Cost of sales 2,261 2,276 4,537 59% 163 129 292 ------- ------- ------- -------- ------- ------- ------- Gross margin 1,396 1,696 3,092 41% (8) 17 9 Gross margin percentage 38.2% 42.7% 40.5% SG&A expense 467 487 954 13% 69 48 117 R&D expense 179 194 373 5% (1) 4 3 Interest, net (120) (125) (245) (3%) (39) (30) (69) ------- ------- ------- -------- ------- ------- ------- 526 556 1,082 15% 29 22 51 ------- ------- ------- -------- ------- ------- ------- Pretax result 870 1,140 2,010 26% (37) (5) (42) ======= ======= ======= ======== ======= ======= ======= CORPORATE AND OTHER (2) (in thousands of $'s) Increase (Decrease) Fiscal 2008 From Fiscal 2007 ----------------------- ----------------------- First Second First Second Quarter Quarter YTD Quarter Quarter YTD ------- ------- ------- ------- ------- ------- Interest income 234 242 476 5 36 41 Rental income 67 111 178 (232) (130) (362) ------- ------- ------- ------- ------- ------- 301 353 654 (227) (94) (321) SG&A expense 737 2,025 2,762 101 703 804 Interest expense -- -- -- (268) (815) (1,083) Other-Building expenses 544 600 1,144 34 51 85 Other-Hemerus losses 131 113 244 4 (10) (6) Other-Nephromics losses 125 124 249 125 1 126 ------- ------- ------- ------- ------- ------- 1,537 2,862 4,399 (4) (70) (74) ------- ------- ------- ------- ------- ------- Pretax result (1,236) (2,509) (3,745) (223) (24) (247) ======= ======= ======= ======= ======= ======= (2) Unallocated corporate expenses and Techne's share of losses by Hemerus Medical, LLC and Nephromics, LLC.