Newark, New Jersey
February 21, 2002

Strategic Diagnostics Inc. (Nasdaq: SDIX) - a leading provider of antibody products and analytical test kits for the food safety and water quality markets, today reported financial results for the fourth quarter and year ended December 31, 2001.

Revenue for the fourth quarter of 2001 was $6.6 million, in line with previous guidance. This compares with $8.6 million in the fourth quarter of 2000, which included significant initial StarLink(TM) test kit sales. The net loss in the fourth quarter totaled $764,000 or $0.04 per share, compared to net income of $888,000 or $0.05 per diluted share, in the prior year quarter, below prior guidance. On a per share basis, the net loss was $0.04 per share versus net income of $0.05 per fully diluted share for the same period last year. For the year ended December 31, 2001, revenues were $29.3 million, versus $25.9 million in the prior year, an increase of 13.5 percent. Net income for the year totaled $1.1 million, or $0.06 per fully diluted share, down 27 percent from $1.5 million, or $0.09 per fully diluted share in the prior year.

The results for the fourth quarter included $309,000 of additional expenses associated with the startup of the Maine production facility, inventory adjustments of approximately $450,000 and approximately $100,000 of costs for a retainer and fees. The after-tax effect of these items was an increase in the loss per share of $0.03. Also included in the results for the quarter was a favorable adjustment to income tax expense of $180,000, or $0.01 per share.

Results for the year included the additional costs of the consolidation of the California and Maine facilities of $716,000, inventory adjustments of approximately $242,000, the retainer of $100,000 previously described, and $79,000 of favorable adjustments to income tax expense. The net, after tax effect of these items was a loss of $0.04 per share.

The Company plans to introduce several new products during 2002. Fourth quarter expenses included research and development and certain other expenses associated with the previously announced animal feed test for McDonalds Corporation, the lateral flow food pathogen tests, the DETEX food pathogen tests, as well as selling expenses associated with the introduction of a new general hygiene test in the food safety market category. These products are expected to drive revenue growth in the second half of 2002 and should be strong contributors to gross margins. Moreover, several initiatives were undertaken in the fourth quarter of 2001 in the antibody business that are expected to have a significant, favorable impact on margins in 2002. First, the Company opened the first of two new antibody production facilities in October and began to consolidate its operations from its California location. While this effort resulted in slightly higher costs of production and certain special expenses attendant to the consolidation in the fourth quarter of 2001, the new facility includes several automated production processes that were fully validated during the quarter and are fully operational. The second facility is expected to open in March 2002 and be fully validated and operational by June 2002. We continue to expect that the impact on future production costs from these new facilities will
yield between $750,000 and $1 million in annual savings. Another important initiative implemented during the fourth quarter in the antibody business was the establishment of internally produced manufacturing materials and supplies. These internally produced materials and supplies will result in lower production costs, estimated in the range of $300,000 to $500,000 per year, and the Company is now less dependent on more expensive, externally produced materials and supplies.

Commenting on the Company's results, President and CEO Richard C. Birkmeyer said, "We have completed several action items during the quarter that we believe set the stage for strong growth in 2002. The AZUR sales and marketing operations were fully integrated into our facilities, the development of new products for pathogen tests and the animal feed tests progressed on schedule and our California operation continued to wind down while our highly efficient facilities in Maine were brought into production. Of our products, the Microtox general toxicity test continues to attract significant interest in the marketplace as the threat of intentional water contamination remains a national priority, and the early indications from the marketplace for our new animal feed and lateral flow food pathogen tests are very favorable. We believe that this interest in these new products for the year will offset the continuing soft demand for GMO testing. We expect the first half of 2002 to bear the costs of developing and preparing to launch our new products and that these investments will set the stage for significant sales and earnings growth in the second half of 2002 and beyond."

Mr. Birkmeyer concluded, "We believe our strategy to serve markets rather than simply develop products has positioned us for sustained, long-term growth. We intend to continue to strengthen our leadership positions and remain focused on the goal of profitable growth."

SDI is a leading provider of biotechnology-based diagnostic tests for a broad range of agricultural, industrial, and water treatment applications. Through its antibody business, Strategic BioSolutions, Strategic Diagnostics also provides antibody and immunoreagent research and development services. SDI's test kits are produced in a variety of formats suitable for field and laboratory use, offering advantages of accuracy, cost-effectiveness, portability, and rapid response.

Trait Check(TM), GMO QuickCheck(TM), and GMO Check(TM) are pending trademarks for SDI.