Heska Corporation Presents at the Hambrecht & Quist 18th Annual Healthcare Conference

Market Wire, 20050229

Heska Corporation (NASDAQ: HSKA) discovers, develops, manufactures and markets companion animal health products, primarily for dogs, cats and horses. The $3.0-plus billion worldwide market for companion animal health products is growing 20 percent annually. Approximately $1.5 billion is spent in the United States alone.

As a result of this increasing demand for improved pet health care, Heska continues to strengthen its market presence in the United States and is currently selling its products to more than 14,000 U.S. veterinary clinics. Heska is increasingly recognized by veterinarians for its commitment to providing them with innovative products in many areas of companion animal health.

The Company has a large and sophisticated scientific effort devoted to applying biotechnology to the large and growing companion animal health market. The Company has ongoing research programs in oncology, osteoarthritis, flea control, heartworm preventatives and allergy, for example. Heska also offers diagnostic and patient monitoring instrumentation and supplies, as well as laboratory diagnostic products and services to veterinarians. In addition, the Company also operates USDA- and FDA-licensed facilities, which manufacture vaccine, pharmaceutical, and allergy immunotherapy products. Robert Grieve, Chief Executive Officer, reported that the Company continued to make significant progress in the companion animal healthcare market in 1999.

New Products:

The two highlights of 1999 for Heska were the approval by the USDA of its proprietary equine influenza vaccine, Flu Avert(tm) I.N. vaccine, and the USDA approval of HESKATM Solo StepTM CH, a diagnostic product for canine heartworm disease. Industry sources have estimated the total equine vaccine market at $50 million in the United States, as well as a sizeable market in Europe, where Heska plans to introduce the product in approximately two years. Equine influenza is a common viral respiratory disease. Competitive vaccines currently used for protection from this disease are generally considered ineffective. Flu Avert, a unique intranasal vaccine, is a significant breakthrough for the prevention of equine flu. HESKA Solo Step CH is the only one-step, lateral flow immunoassay specifically developed for the diagnosis of canine heartworm infection. This product, introduced in January 1999, is capturing a growing share of the estimated $50 million market for heartworm testing in the United States.

In other developments, Heska announced the issuance of 12 new U.S. Patents in 1999, bringing the Company's present total to 42 issued, 93 pending. For example, Heska has developed technology for the accurate diagnosis of allergy - the most common skin disease afflicting dogs. Heska has advanced the state of allergy diagnosis for veterinary medicine with its ALLERCEPTTM family of allergy diagnostic products. Proprietary technologies like ALLERCEPT have made Heska a commercial leader in veterinary allergy.

Financial: completed a $13 million public stock offering on December 3, 1999. The Company sold 6,500,000 of its common stock to several institutional investors including the State of Wisconsin Investment Board, Charter Ventures II, L.P. and Zesiger Capital Group LLC. For the first nine months of 1999, the Company previously reported significantly increased revenues combined with improved gross profit margins and reduced operating expenses.