Alcide Ends Distribution Arrangement With ABS Global.

REDMOND, Wash.--(BUSINESS WIRE)--Oct. 12, 1998--Alcide Corporation (Nasdaq:ALCD) today announced that it will not renew its Distributor Agreements with ABS Global, Inc.

The Company has notified ABS Global, Inc., its distributor for udder care products in the United States and certain international markets, that the agreements between the Company and ABS will not be renewed following their expiration on October 31, 1998. Simultaneously, the Company announced that effective November 1, 1998 it will enter into a new, four year agreement with IBA Inc. to expand the IBA territory to cover the entire United States. Alcide also intends to add another nonexclusive distributor for the U.S. territory and to make product available through its distributors to international customers and high volume independent representatives who have been successful with the Alcide products through ABS.

President and Chief Executive Officer, Joseph A. Sasenick commented that, "We are convinced that IBA has the distribution strength to serve all existing Alcide udder care customers and, in combination with successful independent reps, can expand market share in the Southeast and West Coast market areas as they did during the past year in the Midwest, where market share has grown by more than 50%."

Sasenick went on to say that, "Alcide's second quarter sales may be adversely affected because we are refusing shipments to ABS during the month of October until ABS pays past due amounts. Alcide has been patient in working with ABS on its past due indebtedness since 1994, when ABS was acquired in a leveraged buy out by Ardshiel, Inc. and others. Unfortunately we were not able to make the progress we had hoped."

Alcide Corporation is dedicated to the research, development and commercialization of antimicrobial products for animal health, human health and industrial applications. The Company holds substantial worldwide rights to its discoveries and technologies through various patents, patent applications, trademarks and know-how. Alcide disinfectant systems are unique in the market place. The Company's patented chemical compounds produce strong, rapid biocidal activity, a broad spectrum of kill and sustained activity against a wide range of disease causing microorganisms.

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