Meridian Bioscience Declares Regular Cash Dividend, Increases Regular Cash Dividend Rate and Reaffirms Sales and Earnings Guidance for Fiscal 2002

Business Wire, Nov 14, 2001

Business Editors, Health & Medical Writers

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CINCINNATI--(BW HealthWire)--Nov. 14, 2001

Meridian Bioscience, Inc., (Nasdaq:VIVO) today (i) declared the regular cash dividend for the fourth quarter ended September 30, 2001; (ii) increased the regular cash dividend rate for fiscal 2002; and reaffirmed sales and earnings per share guidance for fiscal 2002, as follows:

Fiscal 2001 Fourth Quarter Regular Cash Dividend

The Board of Directors declared the regular quarterly cash dividend of $0.065 per share for the fourth quarter ended September 30, 2001. The dividend is of record November 26, 2001 and payable December 4, 2001. The annual indicated dividend rate for fiscal 2001 was $0.26 per share.

Fiscal 2002 Increased Regular Cash Dividend Rate

The Board of Directors voted to increase the regular quarterly cash dividend rate to $0.07 per share for fiscal 2002. This annual indicated dividend rate of $0.28 per share represents as 7.7% increase over the fiscal 2001 rate. Meridian Bioscience has increased its regular cash dividend rate eight times since it established a regular dividend ten years ago. The most recent increase is in recognition of management's' confidence in the Company's ability to return to historical levels of profitability during fiscal 2002 and the expectation of record profits during fiscal 2003. As stated previously, the Company's financial condition is sound. At fiscal 2001 year end, current assets were $32,500,000 as compared to current liabilities of $16,500,000, thereby providing working capital of $16,000,000 and a current ratio of 2.0. Shareholders' equity was $22,944,000 as compared to total long-term bank debt and capital leases of $24,300,000. Cash equivalents at September 30, 2001 were $4,677,000. With continued strong cash flow, a sound balance sheet, and a $25 million credit facility, the Company's financial condition is sound.

During the fourth quarter of fiscal 2001, EBITDA (earnings before interest, taxes, depreciation and amortization) were $2,020,000 and cash flow from operations were approximately $2,800,000.

Fiscal 2002 Sales and Earnings Guidance

On October 9, 2001, the Company provided guidance to the financial community for fiscal 2002, indicating that management expected net sales to be in the range of $62 to $65 million (an increase of between 10% to 15% over fiscal 2001) and fully diluted earnings per share of between $0.38 and $0.43. Based on the results of the fourth quarter of fiscal 2001 and the outlook for both domestic and European-based operations, management reaffirms this guidance for fiscal 2002.

FORWARD-LOOKING STATEMENTS

The Private Securities Litigation Reform Act of 1995 provides a safe harbor from civil litigation for forward looking statements accompanied by meaningful cautionary statements. These statements identify important factors that could cause actual results to differ materially from those that might be projected. Meridian's continued growth depends, in part, on its ability to introduce into the marketplace enhancements of existing products or new products that incorporate technological advances, meet customer requirements and respond to products developed by Meridian's competition. While Meridian has introduced approximately 35 internally-developed products since 1991, there can be no assurance that it will be successful in the future in introducing such products on a timely basis. Ongoing consolidations of reference laboratories and formation of multi-hospital alliances may cause adverse changes to pricing and distribution. Costs and difficulties in complying with laws and regulations administered by the United States Food and Drug Administration can result in unanticipated expenses and delays and interruptions to the sale of new and existing products. One of Meridian's main growth strategies is acquisition of companies and product lines. There can be no assurance that additional acquisitions will be consummated or that, if consummated, will be successful and the acquired businesses successfully integrated into Meridian's operations.

Meridian is a fully integrated life sciences company that manufactures, markets and distributes a broad range of innovative diagnostic test kits, purified reagents and related products and offers biopharmaceutical enabling technologies. Utilizing a variety of methods, these products provide accuracy, simplicity and speed in the early diagnosis and treatment of common medical conditions, such as gastrointestinal, viral, urinary and respiratory infections. All Meridian products are used outside of the human body and require little or no special equipment. The Company's products are designed to enhance patient well-being while reducing the total outcome costs of healthcare. Meridian has strong market positions in the areas of gastrointestinal and upper respiratory infections, serology, parasitology and fungal disease diagnosis. In addition, Meridian is a supplier of rare reagents and specialty biologicals. The Company markets its products to hospitals, reference laboratories, research centers, veterinary testing centers and physician offices in more than 60 countries around the world. The Company's shares are traded through Nasdaq's National Market, symbol VIVO. Meridian's website address is www.meridianbioscience.com.