Neogen Forms Brazilian Subsidiary

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Thu Oct 8, 2009 8:30am EDT

LANSING, Mich., Oct. 8 /PRNewswire-FirstCall/ -- Neogen Corporation (Nasdaq:
NEOG) announced today the formation of a new subsidiary in Brazil, Neogen do
Brasil (Neogen of Brazil). The new company, headquartered near Sao Paulo, will
distribute Neogen's food safety products throughout Brazil.


Neogen do Brasil was created to accelerate the success of Neogen products in
Brazil, which has become one of the world's largest food producers and
exporters. Brazil is the world leader in the export of numerous food
commodities, including beef, poultry, soybeans, coffee, sugar, and orange
juice. In addition, Brazil-based food producers have exerted a great deal of
influence outside of that country, including the September acquisition of the
majority stake in the second largest poultry producer in the United States,
Pilgrim's Pride, by Brazil-based JBS. 


"Now with the fifth largest economy in the world, one of only a few countries
likely to show an increase in its gross domestic product for 2009, and a major
food producer and exporter, Brazil has become a very important country to
Neogen's future success," said Lon Bohannon, Neogen's president and chief
operating officer. "Much as we did earlier in Scotland, Germany, and Mexico,
we now see an opportunity to greatly strengthen our presence in an important
country by distributing our own products in Brazil. We believe Brazil holds
substantial unrealized opportunities for sales growth."  


In its most recently completed fiscal quarter (Aug. 31), approximately 41% of
Neogen's revenue came from sources outside of the United States.


Based on recent sales performance, Neogen's new company will start business
with an annual revenue base of approximately $1 million (U.S.). Josue Furtado
Fihlo, a Brazilian food safety expert with many years of experience
distributing Neogen's products, will manage the new company, and Flavio Mello,
also with extensive experience with Neogen's product lines, will serve as the
company's sales manager. 


"We are pleased to have both Josue and Flavio on board with us as we work to
expand Neogen's presence in Brazil," said Ed Bradley, Neogen's vice president
for Food Safety. "I have enjoyed close working relationships with both for
years as distributors of Neogen's food safety products."


Neogen Corporation develops and markets products dedicated to food and animal
safety. The company's Food Safety Division markets dehydrated culture media,
and diagnostic test kits to detect foodborne bacteria, natural toxins, genetic
modifications, food allergens, drug residues, plant diseases and sanitation
concerns. Neogen's Animal Safety Division markets a complete line of
diagnostics, veterinary instruments, veterinary pharmaceuticals, nutritional
supplements, disinfectants, and rodenticides.


Certain portions of this news release that do not relate to historical
financial information constitute forward-looking statements. These
forward-looking statements are subject to certain risks and uncertainties.
Actual future results and trends may differ materially from historical results
or those expected depending on a variety of factors listed in Management's
Discussion and Analysis of Financial Condition and Results of Operations in
the Company's most recently filed Form 10-K.


SOURCE  Neogen Corporation

Richard Current of Neogen Chief Financial Officer, +1-517-372-9200
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