Alltech International Holdings, Inc. Reports Year-End Results.

Business Editors

DEERFIELD, Ill.--(BUSINESS WIRE)--May 2, 2003

Alltech International Holdings, Inc. ("AIH") announced today net sales and net income for the year ended December 31, 2002.

Net sales for the year ended December 31, 2002, were $41,777,201 with net income of $836,307, or $.31 per share. Comparable amounts for the year ago period ended December 31, 2001, were net sales of $41,357,151 with a net loss of $858,749, or $(.40) per share. As of December 31, 2002, the total shares outstanding were 2,720,566 and as of December 31, 2001, the total shares outstanding were 2,147,197. Earnings per share were calculated based on the shares outstanding on December 31, 2001, and 2002. Currently, there are 8,904,147 shares outstanding.

Rick Kurtz, president & COO, said, "The improved earnings were attributable to four primary factors. They are 1.) Reduction in operation expense, 2.) Improved margins, 3.) International sales expansion and 4.) More favorable foreign exchange adjustments."

He added, "China had the most notable sales growth where they increased almost 63 percent over the previous year. That growth was primarily a result of the success in sales of our ELSD 2000 instrument within that market for analysis and quality control of traditional Chinese medicines. Currently, our sales are about equally divided between the U.S. and the rest of the world but the non-U.S. locations are becoming more important for future growth."

In March, Alltech announced opening its third office in China in Guangzhou. Alltech has been in China for the past 13 years and in Hong Kong for the past 15 years.

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 Associates, Inc.
                Consolidated Statements of Operations
                Years Ended December 31, 2002 and 2001


                                                Audited      Audited
                                                 2002         2001
                                             ------------ ------------

Net Sales                                    $41,777,201  $41,357,151

Cost of goods sold                            22,205,484   22,236,703
                                             ------------ ------------

Gross profit                                  19,571,717   19,120,448

Operating expenses                            17,732,690   19,143,021
                                             ------------ ------------

Income from operations                         1,839,027      (22,573)
                                             ------------ ------------

Other (income) expenses
   Interest expense                              440,266      566,304

   Interest income                               (45,490)     (43,282)

   Other                                          41,009      106,652

                                             ------------ ------------
                                                 435,785      629,674
                                             ------------ ------------

Income (loss) before income taxes and
 minority interest                             1,403,242     (652,240)

Income taxes                                     164,356      124,418
                                             ------------ ------------

Income (loss) before other expenses            1,238,886     (776,665)

Other expenses
   Minority interest                              73,680       82,084
   Impairment of goodwill                        328,899
                                             ------------ ------------
                                                 402,579       82,084
                                             ------------ ------------


                                             ------------ ------------
Net income (loss)                            $   836,307  $  (858,749)
                                             ============ ============

Shares Outstanding                             2,720,566    2,147,197
Earnings (loss) per share based on shares
 outstanding at the end of the period        $      0.31  $     (0.40)