Jul 12, 2004

Neogen Signs Worldwide Water Test Agreement

Neogen Corporation has signed a worldwide agreement with CPI International to distribute a breakthrough, recently EPA-approved water test.

The patented Colitag(TM) system represents the next generation of tests to detect dangerous coliform bacteria, including E. coli, in water. Unlike its predecessors, Colitag detects coliforms (e.g., bacteria normally found in the intestine) that have been weakened, but not killed, by inadequate water treatment efforts. These weakened coliforms may include microorganisms that are capable of causing human illness.

Under the agreement, which took affect on June 30, Neogen holds the exclusive rights to food and beverage manufacturers within the United States and Canada, including the burgeoning bottled water market. Neogen may distribute Colitag to the food and beverage, and other water testing markets, outside the U.S. and Canada. Industry estimates place the rapidly-growing worldwide rapid water testing market at about $100 million.

"Colitag represents an extremely good fit for Neogen," said James Herbert, Neogen's president. "The advanced water test is a practical safety solution to our thousands of existing worldwide food safety customers, including many large water bottlers, and provides a substantial opportunity in our international markets. Colitag's existing EPA approval and patented technology provides Neogen with a unique opportunity, and our customers with a unique testing solution."

Colitag's patented system of injured cell recovery resuscitates and detects chlorine-injured coliforms, including E. coli, that other tests can miss. Colitag allows the detection of E. coli by two methods (MUG and indole) simultaneously. The exclusive use of either method may miss certain strains of E. coli. Additional information on Colitag may be found at http://www.Colitag.com.