BSE: HGN Hemagen Diagnostics, Inc Signs Long Term Supply Agreement With Roche Diagnostics Corporation.

Business Editors and Health/Medical Writers

WALTHAM, Mass.--(BW HealthWire)--Feb. 1, 2000

Hemagen Diagnostics, Inc. (NASDAQ:HMGN, HMGNW; BSE:HGN) is pleased to announce that it has signed a long-term agreement to provide reagents and diagnostic kits to Roche Diagnostics Corporation, the largest Diagnostics Company in the world. The extent of the agreement encompasses thirty products manufactured by Hemagen's Raichem division which will generate in excess of seven million in sales over the next three years.

In addition to the thirty products covered by this agreement, Roche has indicated a desire for additional products that are not presently offered by Hemagen. As part of the agreement, both companies will work together to expand the offering further.

The Raichem Division has been providing reagents to Roche for over ten years. &uot;During that period our companies have developed a very solid working relationship,&uot; said Jerry L. Ruyan Chairman of the Board and Chief Executive Officer of Hemagen Diagnostics. &uot;I am very excited about the expanded role we will be providing to Roche. We believe it will serve as a door-opener to many other opportunities for both the present and the future of our company.&uot;

William P. Hales, President, said &uot;This agreement confirms Raichem and Hemagen's ability to provide top quality products to the most sophisticated diagnostics companies in the world. The President of our Raichem Division, Ira Marks, and his team have done an excellent job at cultivating this relationship.&uot;

Hemagen Diagnostics,Inc. develops, manufactures and, markets more than 148 FDA-cleared proprietary medical diagnostic test kits for use in the diagnosis of autoimmune and infectious diseases. Hemagen also manufactures and sells the &uot;Analyst(R) &uot; an FDA-cleared Clinical Chemistry Analyzer used to measure important constituents in human and animal blood. The company focuses on markets that offer significant growth opportunities.

Except for any historical information contained herein, the matters discussed in this press release contain forward-looking statements that involve risks and uncertainties, including those described in the Company's Securities and Exchange Commission reports and filings.