TECHNE CORPORATION RELEASES UNAUDITED FOURTH QUARTER RESULTS FOR FISCAL YEAR 2007

Minneapolis/August 7, 2007/--Techne Corporation’s (NASDAQ: TECH) consolidated net earnings for the quarter ended June 30, 2007 increased 17.6% to $22.9 million or $.58 per diluted share compared with $19.5 million or $.49 per diluted share for the quarter ended June 30, 2006.  Net earnings as a percentage of net sales improved from 37.4% in the fourth quarter of last year to 39.2% for the quarter ended June 30, 2007.  For the fiscal year ended June 30, 2007, Techne's consolidated net earnings increased 16.0% to $85.1 million or $2.15 per diluted share compared with $73.4 million or $1.85 per diluted share for the fiscal year ended June 30, 2006.  Net earnings as a percentage of net sales improved from 36.2% last year to 38.1% for fiscal 2007.  The improvement in net earnings was mainly due to increased consolidated net sales.

Consolidated net sales for the quarter and fiscal year ended June 30, 2007 were $58.4 million and $223.5 million, respectively.  This was an increase of 12.2% and 10.3% from the fourth quarter and fiscal year ended June 30, 2006, respectively. Fiscal 2007 net sales and earnings were favorably affected by the strength of the British pound as compared to the U.S. dollar.  Excluding the effect of changes in foreign currency exchange rates, consolidated net sales increased 10.1% and 7.7% for the quarter and fiscal year ended June 30, 2007, respectively.

Biotechnology net sales, which include sales by R&D Systems’ Biotechnology Division, Fortron and BiosPacific, for the quarter and fiscal year ended June 30, 2007 were $38.1 million and $146.6 million, increases of 11.0% and 9.1%, respectively, from the same prior-year periods.  R&D Europe’s net sales for the quarter and fiscal year were $16.2 million and $61.8 million, increases of 20.1% and 16.6%, respectively, from the same prior-year periods.  In British pound sterling, R&D Europe’s net sales increased 12.0% and 6.6% for the quarter and fiscal year ended June 30, 2007, respectively.  Hematology net sales for the quarter and fiscal year were $4.1 million and $15.2 million, decreases of 2.7% and 0.9%, respectively.

Gross margins were 78.3% and 77.3% in the fourth quarter of fiscal 2007 and 2006, respectively, and 79.1% and 77.4% for the fiscal years 2007 and 2006, respectively.  The improvement in gross margins resulted from lower cost of goods sold related to inventories acquired from Fortron and BiosPacific that were valued at fair market value under purchase accounting, higher margins in Europe due to favorable exchange rates and changes in sales mix as a result of sales growth in the Biotechnology Division as compared to sales declines in the lower margin Hematology Division.  Fourth quarter fiscal 2007 margins declined from the third quarter of fiscal 2007 mainly due to changes in product mix and valuation estimates in the Biotechnology Division.
 
Selling, general and administrative expenses for the quarter and fiscal year ended June 30, 2007 increased $1.6 million (25.1%) and $3.4 million (12.2%), respectively. The fiscal year expense increase resulted from the change in foreign currency exchange rates (approximately$750,000) and increases in personnel and benefit costs, profit sharing and professional fee expenses.  Fourth quarter expenses increased approximately $600,000 from the third quarter of fiscal 2007 due primarily to the timing of promotional marketing costs (approximately $300,000) and increased profit sharing costs (approximately $125,000). 

The effective tax rate was 32.9% for the quarter ended June 30, 2007 as compared to 35.2% for the prior quarter ended March 31, 2007.  The fourth quarter fiscal 2007 effective tax rate was lower than in the third quarter of fiscal 2007 due to changes in state apportionment estimates that were made in the third quarter and a $420,000 reduction  in estimated tax contingency reserves made in the fourth quarter.  The effective tax rate was 34.0% for the fiscal years ended both June 30, 2006 and 2007.  Without significant business developments, the Company expects its fiscal 2008 effective income tax rate to range from approximately 33.5% to 34.5%.

The impact on consolidated net earnings of the change in exchange rates used to convert R&D Europe results from British pounds to U.S. dollars was approximately $368,000 ($.01 per diluted share) and $1.6 million ($.04 per diluted share) for the quarter and fiscal year ended June 30, 2007, respectively.

Forward Looking Statements:
This earnings release contains forward-looking statements within the meaning of the Private Litigation Reform Act.  These statements, including the Company’s expectations as to income tax rates, involve risks and uncertainties that 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.  We undertake no obligation to update or revise any forward-looking statements we make in this release due to new information or future events.  Investors are cautioned not to place undue emphasis on these statements.

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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.  R&D Systems has to subsidiaries, BiosPacific, Inc. (BiosPacific), located in Emeryville, California and R&D Systems China Co. Ltd., (R&D China), located in Shanghai, China.  BiosPacific is a worldwide supplier of biologics to manufacturers of in vitro diagnostic systems and immunodiagnostic kits. R&D China and R&D Europe distribute biotechnology products.

Contact:  Greg Melsen, Chief Financial Officer
                Kathy Backes, Controller 
                (612) 379-8854

TECHNE CORPORATION CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited)
ASSETS	6/30/07	6/30/06
Cash and equivalents	$135,485	$ 89,634
Short-term available-for-sale investments	29,289	19,212
Trade accounts receivable	29,559	23,769
Other receivables	1,407	1,309
Inventory	8,757	9,024
Other current assets	8,341	6,874
Current assets	212,838	149,822
Available-for-sale investments	91,433	77,660
Property and equipment, net	91,535	88,772
Goodwill and intangible assets, net	30,167	32,021
Other non-current assets	28,871	22,237
Total assets	$454,844	$370,512
LIABILITIES
Current liabilities	$17,193	$ 17,966
Long-term debt	--	12,198
Stockholders’ equity	437,651	340,348
Total liabilities and equity	$454,844	$370,512