SOURCE: LAB Research Inc.

August 28, 2007 14:54 ET

LAB Research Inc. to Double Its Canadian Facility and Is On Track to Deliver Additional Capacity in Hungary by the End of September

LAVAL, QC--(Marketwire - August 28, 2007) - LAB Research Inc. ("LRI" or "LAB Research") (TSX: LRI), a rapidly growing global non-clinical contract research organization, announced today expansion plans for its Canadian operations.

The expansion project will start in October 2007, and once completed by the end of 2008, will increase the housing capability in Canada from 36 to 80 rooms, including 12 multi-purpose rooms to be used for inhalation toxicology. Total space will increase from 87,000 to 170,000 square feet. The total cost of this expansion, estimated at $40 million once fully equipped, will be spread over several years, and facilitate organic growth of LRI until 2011. The initial investment of $24 million should double the revenue generating capacity of the site in the first year. The company intends to finance this expansion with a combination of working capital and term loan financing. In addition to introducing inhalation toxicology capabilities in Canada, the expansion will also facilitate the growth of some of the sites' most prominent services such as safety pharmacology and immunology to leverage the Company's scientific leadership in these areas.

"The need to expand our Canadian site less than 12 months after the last phase of construction clearly demonstrates the strong demand for LAB Research Canada's services and the success of our market expansion initiatives undertaken over the past years driven mostly by the addition of key people," said Mr. Luc Mainville, the Chief Executive Officer of LRI. "The specialized inhalation market is increasing at a very fast pace and offers significant growth potential for us. We plan to capitalize on this opportunity as well as continue to expand other scientifically driven activities by leveraging the expertise already in place. That expansion should allow our site's revenues to triple over the next 5 years," added Mr. Mainville.

The Company's Hungarian expansion, still scheduled for completion by the end of September 2007, will increase five-fold the large animal housing capabilities of the site. The latter expansions will more than double the revenue generating capacity of the site.

"While these expansion plans are aimed at fuelling the orderly growth our respective operations, we remain focussed on maintaining the highest quality standards for our services and meet the growing needs of our expanding global clientele," concluded Mr. Mainville.

About LAB Research Inc.

LAB Research is a 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 TSX under the symbol "LRI," with 18.0 million shares outstanding.

Contact Information