LAB Research Announces 2006 Financial Results

LAB Research Inc., a rapidly growing non-clinical contract research organization with operations in both North America and Europe, announced today its fourth quarter and year-end 2006 financial results. To the extent that this press release contains forward-looking statements, investors are cautioned that these are based on our current views, and actual outcomes are not certain.

2006 Highlights

- Record revenues at $49.6 million, a 7% increase over 2005.

- Record net earnings of $4.9 million, increase by 52% over 2005.

- Record earnings per share of $0.31 per share, a 35% increase over 2005.

- Adjusted EBITDA of $10.7 million (21.6% margin) represents an increase of 17% over 2005 of $9.2 million (19.9% margin).

- Gross margin percentage increased from 39% in 2005 to 41%.

- The Canadian operation completed its building expansion in December.

- On August 3, 2006, LAB Research completed its Initial Public Offering ("IPO") of 3,750,000 common shares or gross proceeds of $15 million. As part of a concurrent secondary offering, 6,250,000 common shares were sold by LAB International Inc. ("LAB International") for gross proceeds of $25 million.

- On September 12, 2006, the underwriters of the IPO exercised the over- allotment option for total gross proceeds to LAB International of $6 million, bringing its residual ownership in LAB Research to 35.4%.

- On November 9, 2006, LAB International sold, on a private placement basis, 6,392,857 special warrants at a price of $4.05 per special warrant for gross proceeds of $25.9 million representing its entire residual ownership position. Each special warrant entitled the holder thereof to receive from LAB International one common share of LAB Research for no additional consideration. As a result of the above transactions, LAB International and its affiliates no longer hold any of the outstanding shares of LAB Research. In addition, all three LAB Research Directors named by LAB International at the time of IPO have since resigned from the Board of LAB Research.

"2006 has been an exciting and rewarding year for all of LAB Research's employees, shareholders and other stakeholders. In addition to having succeeded in executing the complete spin-off of LAB Research from our previous parent, LAB International, we have initiated a $25 million investment campaign over 2006 and 2007 designed at providing additional capacity throughout our main facilities to capitalize on the favourable trends in our industry" stated Mr. Mainville, Chief Executive Officer and President of LAB Research.

"Having delivered a solid operating performance and completed the Canadian expansion on time in 2006, we will now focus on delivering continued organic growth from our existing operations by ensuring the timely completion of our two European sites expansion in 2007 as well as implementation of other strategic initiatives aimed at improving our profitability and expanding our pre-clinical platform. Finally, in order to continue promoting excellence in our research services, we will keep on attracting talented employees that will help broaden our service offering as well as maintain and elevate our scientific standards." added Mr. Mainville. -- www.cnxmarketlink.com