IDEXX Laboratories Acquires Leading European Veterinary Reference Laboratory

WESTBROOK, Maine, November 01, 2004—IDEXX Laboratories, Inc. (NASDAQ: IDXX), announced today that it has completed the purchase of Vet Med Lab, the leading provider of veterinary reference laboratory services in the European market, for approximately $31 million in cash. Headquartered in Germany, Vet Med Lab has locations in nine countries from which it serves customers throughout Europe. Vet Med Lab will be operated as part of IDEXX's worldwide reference laboratory network.

IDEXX estimates that Vet Med Lab will have 2004 revenues of approximately $25 million. IDEXX expects the acquisition to be earnings neutral for the fourth quarter of 2004 and for the full year 2005, after the impact of certain integration costs.

According to Jonathan Ayers, Chairman and CEO of IDEXX Laboratories, Inc., "The acquisition of Vet Med Lab strengthens IDEXX's position as the leading worldwide provider of comprehensive diagnostic solutions to veterinarians. This acquisition enables IDEXX to provide continental European veterinarians with the same combination of in-clinic diagnostic products and laboratory services that IDEXX already provides veterinarians in the United Kingdom, Australia, Japan and the United States."

About IDEXX Laboratories

IDEXX Laboratories, Inc. is a worldwide leader in the development and commercialization of innovative, technology-based products and services for veterinary, food and water applications. The Company's largest business is focused on companion animal health, combining biotechnology, medical device technology and information technology to aid veterinarians in providing better medicine while building successful practices. IDEXX Laboratories' food and water businesses are focused on employing innovative technologies to monitor production animal health and the safety and quality of drinking water and milk. Headquartered in Westbrook, Maine, IDEXX Laboratories employs more than 2,600 people and offers products to customers in over 100 countries.

Note Regarding Forward-Looking Statements

This press release contains statements about the Company's business prospects and estimates of the Company's financial results for future periods that are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These statements are based on management's expectations of future events as of the date of this press release, and the Company assumes no obligation to update any forward-looking statements as a result of new information or future events or developments. Actual results could differ materially from management's expectations. Factors that could cause or contribute to such differences include the following: the Company's ability to develop, manufacture, introduce and market new products and enhancements to existing products; the effectiveness of the Company's sales and marketing activities; the Company's ability to develop, license or obtain rights to new technologies; the Company's ability to identify acquisition opportunities, complete acquisitions and integrate acquired businesses; the impact of competition and technological change on the markets for the Company's products; the effect of government regulation on the Company's business, including government decisions about whether and when to approve the Company's products and decisions regarding labeling, manufacturing and marketing products; the impact of distributor purchasing decisions on sales of our products that are sold through distribution; changes or trends in veterinary medicine that affect the rate of use of the Company's products and services by veterinarians; the Company's ability to obtain patent and other intellectual property protection for its products, successfully enforce its intellectual property rights and defend itself against third party claims against the Company; disruptions, shortages or pricing changes that affect the Company's purchases of products and materials from third parties, including from sole source suppliers; the effects of government regulatory decisions, customer demand, pricing and other factors on the realizability of the Company's inventories; the Company's ability to manufacture complex biologic products; the effects of operations outside the U.S., including from currency fluctuations, different regulatory, political and economic conditions, and different market conditions; and the loss of key employees. A further description of these and other factors can be found in the Company's Annual Report on Form 10-K for the year ended December 31, 2003 (PDF, 4,003 KB) and the Quarterly Report on Form 10-Q for the quarter ended June 30, 2004 (PDF, 2,573 KB), in the section captioned "Management's Discussion and Analysis of Financial Condition and Results of Operations."