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Biotech / Medical : Life Sciences Research, Inc (LSRI)

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To: leigh aulper who started this subject9/28/2001 11:27:42 AM
From: leigh aulper   of 22
 
HUNTINGDON, England, Sep 28, 2001 (BUSINESS WIRE) -- Huntingdon Life Sciences Group plc ("Huntingdon" or the "Company")
announced today that net revenues for the half year ended June 30, 2001 were (pound)32.4 million ($46.8 million) an increase of 3.3% on
revenues for the equivalent period last year of (pound)31.4 million ($49.3 million).

Under UK GAAP the Company reported an operating loss of (pound)2.4 million ($3.5 million), up from (pound)0.5 million ($0.7 million) last
year. Net loss after interest and taxation was (pound)6.3 million ($9.1 million) compared to (pound)3.9 million ($6.1 million) for the equivalent
period last year. These losses included non-cash exchange losses on the conversion of dollar denominated assets and liabilities into
sterling of (pound)2.1 million compared to exchange losses in the same period last year of (pound)2.0 million. Net loss per ordinary share
was 2.2 pence compared to 1.3 pence last year. Net loss per ADR was 77.4 cents compared to 52.8 cents last year.

Under US GAAP the Company reported an operating loss for the half year ended June 30, 2001 of (pound)2.0 million ($2.8 million) compared
to an operating profit of (pound)0.2 million ($0.3 million) for the equivalent period last year. Net loss after taxation for the half year was
(pound)4.3 million ($6.2 million) compared to (pound)3.2 million ($5.0 million) last year including non-cash exchange losses- on the
conversion of dollar denominated assets and liabilities into sterling of (pound)2.2 million compared to exchange losses in the same period
last year of (pound)2.3 million. Net loss per ordinary share was 1.5 pence compared to 1.1 pence last year. Net loss per ADR was 52.5 cents
compared to 43.4 cents last year. The principal differences between the UK and US reported results are non-cash charges associated with
pension accounting, deferred taxation and foreign currency translation.

Andrew Baker, Huntingdon's Executive Chairman said:

"These results are in line with our expectations of earlier this year and reflect our steady recovery from the issues of Q4 and Q1. At that time
we faced refinancing difficulties as a result of the ferocity of the animal rights movement's campaign against both us and the financial
community; our results were impacted accordingly. However, our long term (5 year) refinancing was completed in January and the animal
rights campaign is now recognised as being much broader and of concern to all those involved in the vital endeavour of animal research.
The backing we have seen from clients and from the Government including the changes to the law they have introduced, reflects that new
understanding, and provides benefits for our whole industry."

Brian Cass, Huntingdon's Managing Director added:

"Earlier in the year we noted a recovery in orders following the refinancing in January. We are pleased to report that this was maintained
during Q2 and the first half of 2001 saw a significant increase in the value of new studies awarded. Orders were 12% up on the preceding 6
months and, encouragingly, much of the growth was driven by the UK laboratories which were 23% ahead.

With the dip in orders in Q4 last year revenues in Q1 2001 were only (pound)15.5 million. However, the growth in orders since then has
started to feed through into revenues in Q2 which at (pound)16.9 million were 9% ahead of Q1 and 6% up on Q2 2000; in fact Q2 revenues
were the highest in 4 years.

Costs, whilst up on the first half of last year, were down on the run rate for Q4 2000. The reasons are largely the same as noted at the time of
the release of our 2000 results. We've continued to invest in our workforce with focused salary actions to ensure that we remain competitive.
We have also incurred increased professional and public relations costs this year as we continue to successfully counter the so called
"animal rights" campaign and with the continuing strength of the dollar the sterling translation of our US costs has increased."
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