Alcide Corporation Announces Financial Results for Fiscal Year 2001 First Quarter Ended Aug. 31, 2000.

Business Editors

REDMOND, Wash.--(BUSINESS WIRE)--Sept. 21, 2000

Alcide Corporation (Nasdaq:ALCD) today announced net sales and earnings for its first fiscal quarter which ended Aug. 31, 2000.

                                            Quarter Ended
                                    Aug. 31, 2000     Aug. 31, 1999
                                    -------------     -------------
Net Sales                              $4,246,569        $2,674,398
Pretax Income (Loss)                     $598,795         ($596,660)
Net Income (Loss)                        $381,432         ($394,324)
Average Shares Outstanding              2,603,838         2,525,863
Diluted Earnings (Loss) Per Share            $.15             ($.16)

Net sales of $4,246,569 for the quarter ending Aug. 31, 2000 were the highest for any quarter in Alcide's history and were 59% higher than for the first quarter last year.

Sales of Sanova(R) food antimicrobial to the poultry industry totaled $1,737,382, an increase of $1,250,241 compared to the first fiscal quarter last year, as this new Alcide business continued to expand rapidly. At the end of the quarter 19 plants, processing approximately 3.5 billion pounds of poultry annually and representing 11% of the total U.S. poultry market, were utilizing the Sanova System to improve the quality of their product. In addition to the 19 plants now operational, there are 4 Sanova Systems in various stages of installation and scheduled to start within the next 30 days and 4 additional plants have contracted for Sanova installation in the future, resulting in a total of 27 plants under contract.

John Richards, President of Alcide's food safety subsidiary, commented that, "Our goal is to continue to expand the use of Sanova within the poultry processing industry at the present pace to reach 34 plants utilizing the System by fiscal year end. In addition, we plan to add 8 red meat plants as Sanova users. The marketplace is beginning to recognize the superiority of Sanova technology and, accordingly, the Sanova Food Quality System is now the fastest growing antimicrobial process."

Chief Scientific Officer, Kere Kemp, noted that, "In July, Alcide filed two new Food Additive Petitions with the FDA to further expand the potential use of Sanova to include application to cut up poultry after chilling, and also to comminuted/formed meat products such as hot dogs and sausages, which have been the subject of several recent Listeria contamination incidents. Absent any additional unanticipated data requirements, approvals are expected by calendar year end."

The Company's animal health and surface disinfectant sales for the quarter ended August 31, 2000 were $2,509,187, 15% higher than first quarter sales last year. The sales increase for the quarter occurred primarily in international markets where sales increased 32%. Sales of animal health and surface disinfectants in the United States increased 3%.

Net income of $381,432 reflects the sales growth of both the animal health and Sanova businesses, combined with a steady improvement in Sanova gross margin.

President and Chief Executive Officer, Joseph A. Sasenick, commented that, "The management team is optimistic about Alcide's future sales and earnings prospects. The Company's base animal health business has stabilized and our goal is to show steady sales and earnings performance in this area while the Sanova food safety business has the potential to increase several-fold, particularly as we enter the red meat market and continue to improve profit margins. The transition that we started almost two years ago has now come full circle and the Company is positioned to resume a predictable pattern of sales and earnings growth."

Alcide Corporation develops and markets unique biocidal products based on its patented technology. Alcide currently sells anti-infective products to the animal health market, disinfecting products to the medical industries, and Sanova antimicrobial for controlling food borne pathogens on poultry and red meat. The Company intends to broaden its business base by obtaining additional and broader regulatory approvals for Sanova and subsequent introduction into new food safety markets.

This earnings report includes forward looking statements which involve risk and uncertainty including, without limitation, risk of dependence on third party suppliers and distributors, competitive activity, market acceptance of and demand for the Company's products, and development of technology and regulatory approval thereof.