Investor Relations

Charles River provides essential products and services to help pharmaceutical and biotechnology companies, government agencies and leading academic institutions around the globe accelerate their research and drug development efforts. Our dedicated employees are focused on providing clients with exactly what they need to improve and expedite the discovery, early-stage development and safe manufacture of new therapies for the patients who need them.


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Charles River Reports Continued Growth in Sales and Earnings

WILMINGTON, Mass.--(BW HealthWire)--Feb. 14, 2001--Charles River Laboratories International, Inc. (NYSE:CRL -news) and its wholly-owned subsidiary, Charles River Laboratories, Inc., reported today that sales increased 33% in the fourth quarter of 2000 over the prior year, driven by strong growth in customer demand for the Company's products and services that support drug discovery and development. Sales for the fourth quarter were $81.1 million, a $19.9 million increase over fourth quarter 1999 sales of $61.2 million. Net income for the quarter was $4.4 million, or $0.11 per diluted share, exceeding the consensus First Call estimate of $0.09 per share. Excluding a one-time charge for capacity adjustments in Europe, EPS for the fourth quarter was $0.13.

For 2000, the Company's sales increased 33% to $306.6 million, an increase of $75.2 million over sales of $231.4 million in 1999. Net income before an extraordinary loss related to the early retirement of debt in connection with Charles River Laboratories International's IPO was $17.9 million, or $0.56 per diluted share. Excluding a one-time benefit of $4.8 million, or $0.15 per share, related to an income tax valuation adjustment, and the one-time charge for capacity adjustments of $1.3 million or $0.02 per share, earnings before extraordinary items would have been $0.43 per share. Net loss after the extraordinary loss was $11.2 million, or $0.35 per diluted share. Net income for 1999 was $17.1 million, or $0.86 per diluted share.

The Company's sales increase over the prior year was impacted favorably by strategic acquisitions and investments, which complemented solid growth in the Company's research models segment, and continued growth in its biomedical products and services segment. On a pro forma basis (adjusted to give effect to completed acquisitions), sales increased 15% in the fourth quarter and 10% for the total year. Excluding the impact of foreign currency fluctuations, pro forma sales increased 20% in the fourth quarter and 12% for the total year.

Commenting on these results, James C. Foster, Chairman and CEO, said ``We're extremely pleased with our results for the fourth quarter, and the total year. We experienced strong demand for all of our products and services in the pre-clinical enabling technology space. Drug discovery and development activities continued to grow, and we see continued positive trends in outsourcing and pre-clinical work. We are delighted with our recent acquisition of PAI, the world's leader in contract animal pathology. PAI is an important strategic addition to our services portfolio, and we expect it to be neutral to 2001 EPS, and accretive to this year's EPS exclusive of transaction goodwill charges. We're also very pleased to have signed a definitive agreement last week to acquire Primedica Corporation, a leader in the pre-clinical services field. We expect this acquisition to close later this month, and to add $0.03 to our fully diluted EPS in 2001. Primedica had sales of $52 million in the first nine months of 2000.''

The following forward-looking guidance is subject to the qualifications set forth below and gives effect to the PAI acquisition. This guidance does not give effect to the pending Primedica acquisition. For 2001, Charles River estimates sales growth to exceed 20%. Fully diluted EPS for 2001 is estimated to be in the high sixty cents range. In the first quarter of 2001, Charles River expects sales in the range of $88 million to $92 million, and fully diluted EPS in the range of $0.16 to $0.18.

Charles River Laboratories, based in Wilmington, Massachusetts, is a leading provider of critical research tools and integrated support services that enable innovative and efficient drug discovery and development. The Company is the global leader in providing the animal research models required in research and development for new drugs, devices and therapies. The Company also offers a broad and growing portfolio of biomedical products and services that enable customers to reduce cost, increase speed, and enhance productivity and effectiveness in drug discovery and development. Charles River's customer base spans over 50 countries, and includes all of the major pharmaceutical and biotechnology companies, as well as many leading hospitals and academic institutions. The Company operates more than 66 facilities in 15 countries worldwide.

This document contains ``forward looking statements.'' Such statements involve a number of risks and uncertainties that could cause actual results to differ materially from those stated or implied by the forward looking statements, including contaminations, industry trends, new displacement technologies, outsourcing trends, USDA and FDA regulation, changes in law, acquisition integration risks, special interests groups, continued availability of products and supplies, personnel and control, and others that are described in the Risk Factors contained in Company's Registration Statement of Form S-1, as filed on June 23, 2000, and as may be updated from time to time in the Company's periodic SEC filings. The Company disclaims any intent or obligation to update forward looking statements, and otherwise claims the ``safe harbor'' protections for forward looking statements afforded under The Private Securities Litigation Reform Act of 1995.

As previously announced, investors can access a live webcast of the fourth quarter earnings conference call through a link that will be posted on the investor page of the Charles River Laboratories website, The conference call begins on Thursday, February 15, at 11:00 a.m. Eastern Standard Time and will be available thereafter for replay.

           (dollars in thousands except for per share data)

                            Three Months Ended       Year Ended
                           Dec. 30,   Dec. 25,    Dec. 30,   Dec. 25,
                             2000       1999        2000       1999

Total net sales             $81,058    $61,162    $306,585   $231,413
Cost of products sold
 and services provided       50,520     40,344     186,654    146,729

Gross margin                 30,538     20,818     119,931     84,684
Selling, general and
 administrative              15,838     10,351      51,204     39,765
Amortization of
 and intangibles                932        842       3,666      1,956
Operating income             13,768      9,625      65,061     42,963
Interest income (expense)    (6,425)   (12,542)    (39,047)   (12,253)
Other income (expense)          247     (1,345)         71        (47)

Income before income
 taxes, minority
 interests, earnings
 from equity
 investments and
 extraordinary item           7,590     (4,262)     26,085     30,663
Provision for
 income taxes                 3,040     (1,342)      7,837     15,561

Income before minority
 interests earnings
 from equity
 investments and
 extraordinary item           4,550     (2,920)     18,248     15,102
Minority interests             (266)       (12)     (1,396)       (22)
     Earnings from
      investments               144        104       1,025      2,044

Net Income before
 extraordinary item          $4,428     $2,828     $17,877    $17,124

Extraordinary loss
 on debt paydown,
 net of tax benefit
 of $15,670                    --         --       (29,101)      --

Net Income (loss)            $4,428    ($2,828)   ($11,224)   $17,124
Earnings per common
 share before the
 extraordinary item
     Basic                    $0.12     ($0.14)      $0.64      $0.86
     Diluted                  $0.11     ($0.14)      $0.56      $0.86
Earnings per common
 share after the
 extraordinary item
     Basic                    $0.12     ($0.14)     ($0.40)     $0.86
     Diluted                  $0.11     ($0.14)     ($0.35)     $0.86
Weighted average
 number of
 common shares
     Basic              35,920,369  19,820,369  27,737,677  19,820,369
     Diluted            40,194,451  19,820,369  31,734,354  19,820,369


                        (dollars in thousands)

                                           December 30,  December 25,
                                               2000          1999
Current assets
   Cash and cash equivalents                $  33,129    $  15,010
   Trade receivables                           45,949       36,293
   Inventories                                 33,890       30,534
   Other current assets                         6,769        7,158

     Total current assets                     119,737       88,995
Property, plant and equipment, net            117,001       85,413
Goodwill and other intangibles                 41,893       36,958
Deferred tax asset                            105,027       97,600
Other assets                                   26,950       50,130

     Total assets                           $ 410,608    $ 359,096

Liabilities and Shareholder's Equity
Current liabilities
   Current portion of long-term debt        $     231    $   3,290
   Accounts payable                            10,767        9,291
   Accrued compensation                        16,997       10,792
   Other current liabilities                   36,325       38,048

     Total current liabilities                 64,320       61,421
Long-term debt                                201,957      381,706
Other long-term liabilities                    14,074       12,609

     Total liabilities                        280,351      455,736

Minority interests                             13,330          304
Redeemable common stock                          --         13,198
Total shareholder's equity                    116,927     (110,142)

Total liabilities and shareholder's equity  $ 410,608    $ 359,096

     Charles River Laboratories
     Dennis R. Shaughnessy
     Marcia Gookin
     Investor Relations
     978-658-6000 ext. 1329

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