LANSING ? Food and animal safety manufacturer Neogen Corp. on Tuesday announced it net income for fiscal 2006 increased 34 percent from a year ago on a revenue increase of 15 percent.

Net income for fiscal 2006 was $7.9 million, or 92 cents a share, compared to $5.9 million, or 70 cents a share, in the year earlier. Revenues leaped to $72.4 million from $62.8 million in 2005.

Neogen’s fourth quarter was the 53rd consecutive profitable quarter from operations for the company, and the 57th quarter of the past 62 quarters to show revenue increases on a year-to- year comparison.

“We are proud to report another exceptional year for Neogen, both in

terms of revenue growth and operational strength,” said James Herbert,

Neogen’s chief executive officer and chairman. “Our almost uninterrupted

quarterly growth for the past 15 1/2 years is a tradition our 400 employees

work hard to uphold. Not only was this a good financial year, but we also

developed new products, established new programs, and made two attractive

acquisitions that will help ensure our future growth.”

Neogen’s Food Safety Division led the company’s FY 2006 revenue

increase with sales up 24 percent to $34.9 million. While the December 2005 addition of UCB’s dairy antibiotic testing products and the February 2006 addition

of Centrus International’s optical microbial detection system contributed

significantly to the division’s revenue gain, sales of established products

increased 8 percent for the fiscal year.

Sales of food allergen tests increasing 39 percent over FY 2005. Food allergen sales were aided by the introduction of new tests for soy and hazelnut, and an easier test format for milk, but sales of all food allergen products increased significantly in the 12-month period.

Annual sales for Neogen’s Animal Safety Division increased 8 percent to

$37.5 million. In addition to a record year for Neogen’s equine botulism

vaccine and veterinary immune stimulant, sales of the company’s line of

over-the- counter veterinary instruments offered in major farm and ranch

retail stores increased 16 percent in FY 2006. Sales of forensic drug detection

kits, TMB substrates and research test kits increased 15 percent compared to the

prior year.

Subsequent to the May 31 close of its 2006 fiscal year, Neogen

generated approximately $12,237,000 in cash through an offering of 650,000

shares of common stock.

On June 16, Neogen’s Board of Directors elected Chief Operating Officer

Lon Bohannon as the company’s president and chief operating officer.

Bohannon immediately replaced James Herbert, who had served as Neogen’s

president since its founding in 1982. Herbert has continued full-time

responsibilities as chief executive officer, where his efforts will be

focused on strategic growth and international expansion. Concurrently,

Herbert was elected as Board chairman, replacing Jack Parnell, who will

continue to serve on the Board.