Alltech International Holdings, Inc. Reports Second-Quarter and Six-Months Results; Six-Month Net Sales Increase 10 Percent and Pretax Earnings More Than Double.

Business Editors

DEERFIELD, Ill.--(BUSINESS WIRE)--Aug. 12, 2003

Alltech International Holdings, Inc. ("AIH") announced today net sales and net income for the three months and six months ended June 30, 2003.

Net sales for the three months ended June 30, 2003, were $11,912,169 with net income of $630,769, or $.07 per share. Comparable amounts for the year-ago period ended June 30, 2002, were net sales of $10,650,794 with net income of $246,525, or $.04 per share. Net sales increased $1,261,375, or 11.84 percent, and net income increased $384,244, or 155.86 percent, as compared to the year-ago period.

Net sales for the six months ended June 30, 2003, were $23,314,717 with net income of $2,112,691, or $.23 per share. Comparable amounts for the year-ago period ended June 30, 2002, were net sales of $21,152,451 with a net income of $459,635, or $.07 per share. Net sales increased $2,162,266, or 10.22 percent, and net income increased $1,653,056, or 359.65 percent, as compared to the year-ago period.

Rick Kurtz, President and COO, said: "Results for the six months period ended June 30, 2003, reflect a one-time deferred income tax reduction and should not be considered a normal occurrence. However, during that period sales revenues increased 10% and pretax earnings more than doubled, as compared with the same period in 2002. Excluding positive effects of foreign currency adjustments, overall company sales increased by nearly 3%."

"The strong improvement in pretax earnings posted through the first two quarters of 2003 business had less to do with weak dollar effects and more to do with operational efficiency gains, and both reduction and better control of operating expenses throughout the organization. Some of the expense savings are a consequence of temporarily reduced staffing levels, and identified with positions that we expect to fill in the remaining half of the year. Neither price increases nor significant gross margin gains contributed to top or bottom line results for this period," Kurtz added.

He added: "Our global market performance for this period was not homogenous, with sales softness noted in Europe, but continued robust growth of business for China. Alltech USA domestic sales continued to be sluggish, but double-digit export business gains were recorded. Alltech has received good customer response to several of its new products introduced during and immediately prior to this reporting period and sales of Alltech products within the U.S. market have improved by way of additive business distribution arrangements."

AIH completed a private placement during the first half of 2003 and the proceeds were used to reduce debt. As of June 30, 2002, the total shares outstanding were 9,126,547.

AIH's wholly owned subsidiary, Alltech Associates, Inc. ("Alltech") is a leading supplier of chromatography products. Chromatography encompasses a number of processes where the composition of chemical mixtures and samples may be qualitatively and quantitatively determined. Alltech manufactures and distributes an extensive range of consumables (columns, sample preparation tools, accessories) and instrumentation for the fields of high pressure liquid chromatography ("HPLC"), gas chromatography ("GC"), ion chromatography ("IC"), thin layer chromatography ("TLC"), solid phase extraction ("SPE") and sample handling. Alltech has two United States locations and branch, subsidiary or joint venture sales offices in 12 countries throughout the world. In addition, Alltech has approximately 60 distributors located throughout the world.

Alltech's World Wide Web site is: www.alltechweb.com. AIH's stock is not currently traded.

Forward-Looking Statements

Statements made in this news release that relate to future plans, events or performances are forward-looking statements. Any statements containing words such as "believes," "should," "anticipates," "plans," or "expects," as well as other statements, are forward-looking, and those statements involve risks and uncertainties outside of the control of Alltech and are based on current expectations. Consequently, actual results could differ materially from the expectations expressed in these forward-looking statements.

                 Alltech International Holdings, Inc.
            Unaudited Consolidated Statements of Operations

                           Second Quarter                YTD
                          April 1 - June 30      January 1 - June 30
                       ----------------------- -----------------------
                           2003        2002        2003        2002
                       ----------- ----------- ----------- -----------
Net Sales             $11,912,169 $10,650,794 $23,314,717 $21,152,451

Cost Of Sales           6,336,538   5,653,385  12,550,845  11,376,864
                       ----------- ----------- ----------- -----------

Gross Profit            5,575,631   4,997,409  10,763,871   9,775,587

Operating Expenses      4,922,430   4,570,443   9,559,041   8,976,468
                       ----------- ----------- ----------- -----------

Income From Operations    653,201     426,966   1,204,831     799,119

Other (Income)
 Expenses:
   Interest Income         -4,768        -558     -18,570      -8,250
   Interest Expense        93,775     105,055     180,442     221,798
   Other                  -98,847     -11,278    -175,146       2,915
                       ----------- ----------- ----------- -----------
     Total Other           -9,840      93,219     -13,275     216,463
                       ----------- ----------- ----------- -----------

Income before income
 taxes and Minority
 interests                663,041     333,747   1,218,106     582,656

Minority interests         -1,263      32,308       7,978      61,393
                       ----------- ----------- ----------- -----------

Earnings Before Taxes     664,304     301,439   1,210,128     521,263

Income Taxes:
   Deferred Income
    taxes                       0           0  -1,003,902           0
   Income Taxes            33,535      54,914     101,339      61,628
                       ----------- ----------- ----------- -----------
     Total Taxes           33,535      54,914    -902,563      61,628
                       ----------- ----------- ----------- -----------

Net Income                630,769     246,525   2,112,691     459,635
                       =========== =========== =========== ===========

Primary Outstanding
 Shares                  9,126,547 6,569,150(a) 9,126,547 6,569,150(a)
                       ----------- ----------- ----------- -----------
Primary Earnings Per
 Share                      $0.07       $0.04       $0.23       $0.07
                       =========== =========== =========== ===========

(a) Adjusted for split