Neogen again named one of Forbes’ 200 Best Small Companies

CONTACT: Rod Poland, Director of Corporate Communications, 517/372-9200

LANSING, Mich., Oct. 18, 2006 — In its Oct. 30, 2006 issue, Forbes Magazine has named Neogen Corporation (Nasdaq: NEOG) to its annual list of the 200 Best Small Companies in America for the fifth time in seven years.

To qualify for its list, Forbes states that a company must have had a share price above $5 as of Sept. 29 on three-month average volume of 10,000 or more shares. Candidates must also carry profit margins of greater than 5%, with positive sales and profit growth, on average, over both the last five years and last 12 months.

“Our list of the 200 Best Small Companies ferrets out the most robust, fundamentally disciplined public outfits with sales between $5 million and $750 million,” said Forbes’ editors in announcing the list. “[The companies on the list are] small, but growing, businesses designed to survive the ups and downs of market volatility. These winners have come through a tough year, contending with suddenly high energy costs and a string—only recently broken—of 17 interest rate hikes by the U.S. Federal Reserve. Not surprisingly, most of these 200 scrappy players carry low debt burdens.”

“At Neogen, we’re very proud to stand behind the results that we work hard to produce each year, and we are pleased to receive repeated recognition as one of the best small companies in America,” said Lon Bohannon, Neogen’s president and COO.

Neogen recently announced that its revenues for the first quarter of FY 2007, which ended Aug. 31, increased 21% from the previous year’s first quarter to $20,220,000. First quarter net income increased 21% from the prior year’s $1,987,000 to $2,406,000—a record net income in any quarter for the 24-year-old company. On a per share basis, net income per diluted share increased to $0.26 from $0.24 in the previous year’s first quarter. The first quarter marked the 54th consecutive profitable quarter from operations for the company, and was the 58th of the past 63 quarters when Neogen reported revenue increases as compared with the previous year.

For more information about Forbes’ list of the 200 Best Small Companies in America, refer to the Oct. 30, 2006 issue of Forbes Magazine, or online at www.forbes.com.

Neogen Corporation develops and markets products dedicated to food and animal safety. The company’s Food Safety Division markets dehydrated culture media, and diagnostic test kits to detect foodborne bacteria, natural toxins, genetic modifications, food allergens, drug residues, plant diseases and sanitation concerns. Neogen’s Animal Safety Division markets a complete line of diagnostics, veterinary instruments, veterinary pharmaceuticals, nutritional supplements, disinfectants, and rodenticides.

Certain portions of this news release that do not relate to historical financial information constitute forward-looking statements. These forward-looking statements are subject to certain risks and uncertainties. Actual future results and trends may differ materially from historical results or those expected depending on a variety of factors listed in Management’s Discussion and Analysis of Financial Condition and Results of Operations in the Company’s most recently filed Form 10-K.