Strategic Diagnostics, Inc., a leading provider of biotechnology-based test kits for agriculture,
water quality and industrial use, today announced its results for the second quarter and six
months ended June 30, 1999.

Net revenues for the second quarter increased to $5.5 million compared to $5.2 million in the
second quarter of 1998. Second quarter net income was $305 thousand, or $0.02 per diluted
share compared to net income of $770 thousand, or $0.05 per diluted share for the second
quarter of 1998. As previously reported, these results for the quarter were impacted by the
delayed introduction of the Roundup Ready (R) soybean test kit.

Net revenues for the first six months of 1999 increased 16 percent to $9.4 million from $8.1
million for the same period in 1998. Net income for the first six months of 1999, excluding a
$3.5 million charge for in-process research and development, was $495 thousand, or $0.03 per
diluted share, compared to net income of $790 thousand, or $0.5 per diluted share for the first
six months of 1998.

Earlier this month, the Company announced the launch of its Roundup Ready (R) soybean test
kit (a test kit to detect Monsanto's Roundup Ready (R) genetic trait). At the time of the launch,
the Company reported that the potential for this product could reach over 25 million tests
annually over the next two to three years. Initial product development was completed in March
1999 and, during the second quarter, the Company worked with prospective customers to
validate the product under a variety of uses and develop testing protocols that would provide
users and their customers reliable and statistically meaningful results. The need for these
analytical testing tools has developed rapidly in 1999 as a result of recent GMO regulatory
action and market responses, in particular the commercial success of the Roundup (R) genetic
technology (over one-half of the 1999 commercial soybean crop in the United States is
expected to incorporate this technology) coupled with a consumer concern about genetically
modified plants. This has resulted in the development of a second tier in the world grain markets
for non-genetically modified product, resulting in the need for rapid testing for product
identification. For the 1999 growing season hundreds of farmers have been contracted to grow
non-genetically enhanced soybeans. These producers, harvesting over 35 million acres, a large
part of which are for Europe and Japan, will be required, due to new regulations, to verify the
purity of their crops once harvesting begins in July 1999. The development of this non-GMO
market has led to new needs to maintain the identity of these products at multiple risk points
throughout the distribution systems in world trade. The Company expected sales of the products
to begin in June 1999 to partially meet the initial demand for this new technology, however, the
rapid evolution of foreign policies for GMOs and changes in acceptable thresholds drove the
creation of new testing points in the trade distribution systems. This additional validation has
been completed and the Company began the commercial sale of this product in July 1999. The
delay in the commercial launch of this product, while necessary to ensure proper use of the
product in the field, was the primary cause of the lower than expected sales in the second
quarter of 1999. Initial orders for the product have been strong and in line with the Company's
expectations.

Also, revenues for the second quarter and the first half of 1999 include those of the former HTI
Bio-Products, Inc. (HTI), which was acquired during the first quarter of 1999. During the
second quarter of 1999, the integration of the OEM product line of Atlantic Antibodies, TSD
BioServices, and HTI was successfully completed. Operations in Minnesota were closed as
planned and relocated to Delaware. Revenue for the antibody business totaled $2.3 million for
the second quarter of 1999, and $3.3 million in the first half of 1999, compared with $614
thousand in the second quarter of 1998, and $1.2 million in the first half of 1998. Bio-processing
and accounting operations have also been centralized in Delaware.

Manufacturing expenses increased approximately $700 thousand, or 37%, in the second quarter
of 1999 and $1.1 million, also 37%, for the first half of 1999 over the comparable periods in
1998 reflecting increased antibody sales in the product sales mix. Antibody sales have a higher
cost of goods sold compared with the test kit products. Research and development costs
increased $106 thousand, or 23%, in the second quarter of 1999 and $294 thousand in the first
half of 1999, or 35% over the comparable periods in 1998. The increase is attributable to a
larger volume of product development expenses associated with new test kits being developed
primarily for the agricultural market. Selling, general and administrative expenses decreased
$212 thousand, or 9%, during the second quarter of 1999 and $36 thousand, or 1% in the first
half of 1999 from the comparable periods in 1998. This decrease is attributable to effective cost
controls during the periods.

Commenting on the results, Mr. Richard C. Birkmeyer, President and CEO of SDI, said, ``We
believe the developments in the marketplace during the second quarter of 1999 have created
even more opportunity for our agricultural products. In this three-month period we have seen the
demand for our agricultural products expand from the quality control of seed production to
analytical testing applications for the entire commercial crop. This has the potential to allow us to
expand sales of our agricultural products through the agricultural distribution networks
throughout the world. By validating our products and testing protocols for these new and
significant applications prior to commercial launch, we believe we have established a market
leading position with the technology industry and demonstrated our commitment to the industry
and the consumer to deliver innovative solutions in a deliberate, measured and responsible
manner. Based on early market indications, we expect that this product and similar ones
currently in development will be important drivers of future revenue growth.''

Strategic Diagnostics is the leading provider of biotechnology-based diagnostic tests for a broad
range of commercial applications. Through its antibody business, Strategic Diagnostics also
provides antibody and immunoreagent research and development services. Strategic
Diagnostics' 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.

Company news release
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