LAB Research Inc.

LAB Research Inc.

February 01, 2011 13:37 ET

LAB Research Inc.: Canadian Lender Extends Support as Part of Strategic Review Process

LAVAL, QUEBEC--(Marketwire - Feb. 1, 2011) - LAB Research Inc. ("LAB Research" or the "Company") (TSX:LRI), a Canadian-based global non-clinical contract research organization, today announced it has secured additional support from its main Canadian lender to enable the completion of the strategic review process initiated in October 2010 (the "Strategic Process").

In October 2010, the Company initiated a process to review all strategic alternatives available to the Company. Such alternatives would include a financing, a recapitalization, a strategic partnering, or a merger or the sale of all or part of the assets of the Company. Also, the Company had disclosed an agreement with its main Canadian lender, whereby the Company's operating credit facility was increased from $2,000,000 to $4,000,000 and capital instalments on its long term debt were postponed to facilitate the execution of the Strategic Process. Such agreement has now been extended to February 2, 2011.

In the event that the Company is unable to complete a transaction before February 2, 2011, the Company will have to conclude further arrangements with its main Canadian lender with respect to the funding of its operations and the payment of the postponed instalments. The Company is still evaluating its alternatives but cautions shareholders that there is no assurance whether it will receive proposals from third parties as a result of the Strategic Process, implement any proposal received or that stakeholders will recover their investment in the Company. The Company does not intend to provide further updates on the Strategic Process unless a definitive agreement is reached or a determination is made not to pursue any transaction.

Forward-Looking Statements

Certain statements in this document are forward looking and prospective. By their nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties. There is significant risk that predictions and other forward-looking statements will not prove to be accurate. Readers of this document are cautioned not to place undue reliance on our forward-looking statements as a number of factors could cause future results, conditions, actions, or events to differ materially from the operating target, expectations, estimates, or intentions expressed in the forward-looking statements. For additional information on these and other factors, see the reports filed by LAB Research with Canadian securities regulators.

Forward-looking statements reflect our current views with respect to future events and are based upon what we believe are reasonable assumptions and subject to risks and uncertainties. These forward-looking statements represent our estimates and assumptions only as at the date of this document. We undertake no obligation and do not intend to update or revise these forward-looking statements, unless required by law.

About LAB Research Inc.:

LAB Research is a Canadian global non-clinical contract research organization that provides contract research services to the pharmaceutical, biotechnology, agro-chemical, petro- chemical and industrial markets. LAB Research supports the development of its customers' products from three state-of-the-art facilities located in Canada, Denmark and Hungary.

LAB Research's shares trade on The Toronto Stock Exchange ("TSX") under the symbol "LRI", with 52.7 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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