IDEXX REPORTS 3RD QTR NET INCOME INCREASED 22%.

IDEXX Laboratories, Inc. (NASDAQ: IDXX), Westbrook, Maine, has reported that net income increased 22% to $12.5 million, or $0.36 per diluted share, for the quarter ended September 30, 2002, compared to net income of $10.2 million, or $0.30 per diluted share, for the same period in the prior year.

Revenue for the third quarter of 2002 increased 7% to $104.5 million from $97.5 million for the third quarter of 2001.

Companion Animal Group revenue for the third quarter of 2002 increased 7% to $82.2 million from $77.1 million for the third quarter of 2001. This increase resulted primarily from a 13% increase in sales of laboratory services and a 10% increase in sales of rapid assays, which consist of tests for canine and feline infectious and parasitic diseases.

Food and Environmental Group revenue for the third quarter of 2002 increased 9% to $22.3 million from $20.4 million for the third quarter of 2001. This increase was driven primarily by a 21% increase in sales of production animal diagnostic products and an 11% increase in sales of water testing products.

Free cash flow, measured as operating cash flow net of capital expenditures, was $36.2 million for the quarter, compared to $18.4 million for the third quarter of 2001. For the nine months ended September 30, 2002, free cash flow was $82.4 million, compared to $18.6 million for the same period in the prior year.

"Our performance in the third quarter was again led by impressive sales growth in our production animal diagnostics and rapid assay product lines," said Jonathan W. Ayers, Chairman and CEO. Our strong free cash flow was the result of improving operating performance and working capital management. Just as importantly, during the quarter we made substantial progress in finalizing the development of our LaserCyte(TM) hematology system, and we expect to begin making commercial shipments before the end of October."

The company also reiterated that it expects revenues of approximately $412 million and earnings per diluted share of approximately $1.30 for the full year of 2002, which includes a charge of $.05 per share incurred in the first quarter associated with CEO succession.

IDEXX Laboratories, Inc. is a worldwide leader in the development and commercialization of innovative, technology-based products and services for animal health. The company's largest business is focused on companion animal health, combining biotechnology, medical device technology and information technology to aid veterinarians in providing better medicine while building successful practices. IDEXX Laboratories is also focused on employing innovative technologies to monitor production animal health and the safety and quality of drinking water and milk. Headquartered in Westbrook, Maine, IDEXX Laboratories employs more than 2,100 people and offers products to customers in more than 50 countries.

For more information, call 207/856-0446.