TECHNE Corporation Releases Unaudited Fourth Quarter and Twelve Month Results for Fiscal Year 2001

Minneapolis/August 14/--For the three months ended June 30, 2001, Techne’s consolidated net income increased 10% to $9,395,304 or 22 cents per share (diluted), compared with $8,520,957 or 20 cents (diluted) in the fourth quarter of last year. The improvement in earnings was primarily the result of increased sales. For the three months ended June 30, 2001, Techne’s consolidated sales were a record $30,705,444, an increase of $3,392,087 or 12% from the fourth quarter of last year. R&D Systems’ Biotechnology Division net sales increased 16% to $19,749,807 from $17,038,127 and R&D Systems’ Hematology Division net sales increased 6% to $4,276,192 from $4,047,600. R&D Europe’s net sales increased 7% to $6,679,445 from $6,227,630. R&D Europe’s net sales for the quarter were affected by changes in exchange rates. In British pounds, R&D Europe’s sales increased 15% over the fourth quarter of last year. Adjusted for all changes in exchange rates, R&D Europe’s revenues for the fourth quarter of fiscal year 2001 would have been approximately $417,000 higher than reported.

For the fiscal year ended June 30, 2001, Techne’s consolidated net income increased 28% to $34,045,376 or 80 cents per share (diluted), compared with $26,582,797 or 63 cents (diluted) in fiscal year 2000. The improvement in earnings was primarily the result of increased sales and a lower income tax rate. For the twelve months ended June 30, 2001, Techne’s consolidated sales were $115,356,562, an increase of $11,518,407 or 11% from the prior year. R&D Systems’ Biotechnology Division net sales increased 15% to $73,656,405 from $64,230,320 and R&D Systems’ Hematology Division net sales increased 8% to $14,710,464 from $13,575,463. R&D Europe’s net sales increased 4% to $26,989,693 from $26,032,372. R&D Europe’s net sales for the fiscal year were also affected by changes in exchange rates. In British pounds, R&D Europe’s sales increased 14% from the prior year and, adjusted for all changes in exchange rates, R&D Europe’s revenues for fiscal year 2001 would have been approximately $2.9 million higher than reported. U.S. income taxes for fiscal 2001 were affected by a one-time $1.2 million credit (3 cents per share) as a result of the close-out of pending issues related to a state income tax examination for fiscal years 1996 through 1999.

During fiscal 2001, Techne purchased and retired 40,000 shares of common stock at a market value of $1,163,768. From the start of the repurchase program in May 1995, 1,341,200 shares have been purchased at a market value of $9,917,882. The Board of Directors has authorized, subject to market conditions and share price, the purchase and retirement of up to $20 million of common stock.

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 into cytokines by the Company’s customers, the impact of the growing number of producers of cytokine research products and related price competition, the retention of hematology OEM and proficiency survey business, the impact of currency exchange rate fluctuations, the outcome of litigation involving the Company 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, 612-379-8854