TECHNE CORPORATION RELEASES UNAUDITED THIRD QUARTER RESULTS FOR FISCAL YEAR 2003 Minneapolis/May 1, 2003/--For the three months ended March 31, 2003, Techne Corporation's consolidated net earnings increased 17% to $12,393,538 or 30 cents per share (diluted), compared with $10,573,912 or 25 cents per share (diluted) in the third quarter of last year. For the nine months ended March 31, 2003, Techne's consolidated net earnings increased 19% to $32,719,745 or 78 cents per share (diluted), compared with $27,433,328 or 65 cents per share in the first nine months of last year. The improvement in earnings was the result of increased sales and lower intangible amortization partially offset by an increase in the effective income tax rate and increased losses by companies in which Techne has invested. Consolidated net sales for the quarter and nine months ended March 31, 2003 were a record $37,736,518 and $105,584,968, respectively. This was an increase of $3,451,242 or 10% and $10,320,115 or 11% from the third quarter and first nine months of last year. R&D Europe's net sales for the quarter and nine months increased $2,145,555 (27%) and $4,870,103 (22%). In British pounds, R&D Europe's net sales increased 13% and 11% for the quarter and nine months, respectively. R&D Systems' Biotechnology Division net sales for the quarter and nine months increased $940,215 (4%) and $4,796,981 (8%) and R&D Systems' Hematology Division net sales for the quarter and nine months increased $365,472 (10%) and $653,031 (6%). On July 1, 2002, the Company adopted Statement of Financial Accounting Standards (SFAS) No. 142, "Goodwill and Other Intangible Assets". Goodwill amortization of $1,567,500 and $4,702,500 was expensed in the third quarter and first nine months of last year, respectively, but is no longer amortized under SFAS No. 142. The after tax effect of the goodwill expense in the third quarter and first nine months of fiscal 2002 was $.02 and $.07 per diluted share, respectively. Research and development expenses for the quarter and nine months ended March 31, 2003 increased $843,123 (19%) and $2,356,453 (18%), respectively. Approximately half of the increase in each period was due to increased losses by ChemoCentryx, Inc. (CCX) and Discovery Genomics, Inc. (DGI), development stage companies in which Techne has invested. The portion of the losses by these two companies included in Techne results for the quarter and nine months ended March 31, 2003 were $923,238 and $2,279,712 ($.02 and $.05 per diluted share), respectively, compared to $529,433 and $1,041,068 ($.01 and $.02 per diluted share), respectively, in the third quarter and first nine months of fiscal 2002. The effective income tax rate increased for the quarter and nine months as a result of increased losses by CCX and DGI for which there are no tax benefits, decreased tax exempt interest income and changes in state income tax regulations. During the first nine months of fiscal 2003, Techne purchased and retired 926,500 shares of common stock at a market value of $20,481,567. From the start of the Company's repurchase program in May 1995, the Board of Directors has authorized, subject to market conditions and share price, the purchase and retirement of up to a total of $40 million of common stock. Through April 30, 2003, 2,397,700 shares have been purchased at a market value of $33,176,069. Statements in this earnings release and elsewhere which look forward in time involve risks and uncertainties which may affect the actual results of operations. The following important factors, among others, have affected and, in the future, could affect the Company's actual results: the introduction and acceptance of new biotechnology and hematology products, the levels and particular directions of research by the Company's customers, the impact of the growing number of producers of biotechnology research products and related price competition, the retention of hematology OEM and proficiency survey business, the impact of currency exchange rate fluctuations, and the costs and results of research and product development efforts of the Company and of companies in which the Company has invested or with which it has formed strategic relationships. For additional information concerning such factors, see the Company's annual report on Form 10-K and quarterly reports on Form 10-Q as filed with the Securities and Exchange Commission. * * * * * * * * * * * * * * Techne Corporation has two operating subsidiaries: Research and Diagnostic Systems, Inc. (R&D Systems) of Minneapolis, Minnesota and R&D Systems Europe, Ltd. (R&D Europe) of Abingdon, England. R&D Systems is a specialty manufacturer of biological products and R&D Europe is a distributor of biotechnology products. Contact: Kathy Backes, Controller (612) 379-8854 TECHNE CORPORATION 3/31/03 (UNAUDITED)         QUARTER ENDED NINE MONTHS ENDED   3/31/03 3/31/02 3/31/03 3/31/02 Net sales $ 37,736,518 $ 34,285,276 $105,584,968 $ 95,264,853 Cost of sales 8,756,163 8,392,165 25,817,172 23,968,392 Gross margin 28,980,355 25,893,111 79,767,796 71,296,461           Operating expenses:         Selling, general and administrative 4,705,923 4,469,162 14,557,695 13,913,188 Research and development 5,285,180 4,442,057 15,097,517 12,741,064 Amortization of intangible assets 484,813 2,137,312 1,454,438 6,411,935 Interest expense 178,274 323,719 797,499 997,243 Interest income (732,060) (886,595) (2,226,483) (2,762,607) Other non-operating expense (59,313) 57,544 74,385 (16,690)   9,862,817 10,543,199 29,755,051 31,284,133 Earnings before income taxes 19,117,538 15,349,912 50,012,745 40,012,328 Income taxes 6,724,000 4,776,000 17,293,000 12,579,000 Net earnings $ 12,393,538 $ 10,573,912 $ 32,719,745 $ 27,433,328                     Earnings per share:         Basic $ 0.30 $ 0.25 $ 0.79 $ 0.66 Diluted $ 0.30 $ 0.25 $ 0.78 $ 0.65           Weighted average common shares outstanding:         Basic 41,296,620 41,544,110 41,369,059 41,488,383 Diluted 41,990,671 42,524,992 42,198,103 42,531,964                     ASSETS     3/31/03 6/30/02 Cash and equivalents     $ 26,836,002 $ 26,392,480 Short-term investments     76,775,269 70,671,341 Receivables     20,944,172 19,413,618 Inventory     6,558,346 6,077,035 Other current assets     5,366,314 6,523,275 Property and equipment (net)     81,543,402 70,312,602 Intangible assets (net)     17,442,562 18,897,000 Other non-current assets     16,739,190 19,959,608 Total assets     $252,205,257 $238,246,959           LIABILITIES         Current liabilities     $ 13,425,839 $ 14,629,524 Long-term debt     16,163,560 17,100,652 Stockholders' equity     222,615,858 206,516,783 Total liabilities and equity     $252,205,257 $238,246,959