LAB Research Inc.
TSX : LRI

LAB Research Inc.

October 27, 2006 07:18 ET

LAB Research Announces Secondary Offering

LAB International to divest itself of its residual interest in LAB Research

LAVAL, QUEBEC--(CCNMatthews - Oct. 27, 2006) -

This News release is not for dissemination in the United States or to any United States News Services.

LAB Research Inc. (TSX:LRI) ("LAB Research" or "LRI") announced today that LAB International Inc. has entered into an agreement to sell to a syndicate of underwriters led by Desjardins Securities Inc. on a private placement basis, 6,392,857 special warrants at a price of $4.05 per special warrant, for gross proceeds of $25,891,070.85 to LAB International. Each special warrant will entitle the holder thereof to receive from LAB International, one common share of LRI for no additional consideration. LRI will not receive any proceeds from the sale of the special warrants by LAB International Inc.

The closing of the private placement of special warrants is expected to occur on or about November 9, 2006 (the "Closing Date"), or such other date as LAB International and LAB Research on one hand, and the syndicate of underwriters on the other, may agree. LRI has committed to file a preliminary short form prospectus qualifying the LRI common shares distributable on exercise of the special warrants by November 15, 2006.

Special warrants that have not been previously exercised will be deemed to be exercised on the earlier of (i) the fifth day after a receipt is obtained for a final prospectus, and (ii) four months and one day following the Closing Date. If not qualified earlier under the prospectus, the shares underlying the special warrants will also be subject to a four-month hold period in Canada.

Following completion of the transactions contemplated herein, LAB International and its subsidiaries will no longer hold any of the outstanding shares of LRI.

Mr. Luc Mainville, President and CEO of LRI, stated "This transaction demonstrates the strong market support for LAB Research, gives us a unique opportunity to accelerate the broadening of our shareholder base while increasing the liquidity of our shares on the secondary market".

About LAB Research Inc.

LAB Research is a non-clinical contract research organization (CRO) that provides contract research services primarily to the pharmaceutical and biotechnology industries. LAB Research supports the development of its customers' products from five state-of-the-art facilities located in Canada, the United States, Denmark and Hungary. LRI shares trade on the TSX under the symbol "LRI" with 18.0 million shares outstanding.

This news release contains certain forward-looking statements that reflect the current views and/or expectations of LAB Research Inc. with respect to its performance, business and future events. Such statements are subject to a number of risks, uncertainties and assumptions. Actual results and events may vary significantly.

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