Synbiotics Corp. signs letter of intent to acquire International Canine Genetics Inc.

SAN DIEGO--(BUSINESS WIRE)--May 16, 1996--Synbiotics Corp. (NASDAQ:SBIO) and International Canine Genetics Inc. (OTC Bulletin Board:ICGI, ICGIW) Thursday announced that they have entered into a non-binding letter of intent for Synbiotics to acquire International Canine Genetics Inc. (ICG).

In the intended transaction, Synbiotics will acquire the assets of ICG in a tax-free exchange for the issuance of 1,400,000 shares of Synbiotics common stock. The number of shares is subject to adjustment if the market price per share of Synbiotics' stock is above $3.50 per share or below $2.50 per share at the closing. All of ICG's outstanding warrants and stock options will similarly be replaced by or converted into warrants and options to acquire shares of Synbiotics common stock.

Additionally, S.R. One Ltd., ICG's largest shareholder, will purchase $1 million of newly issued Synbiotics common stock at the closing. The transaction is subject to due diligence, execution of a definitive acquisition agreement, SEC review, and board of director and shareholder approval of both companies.

ICG, based in Malvern, PA, manufactures and markets canine reproduction diagnostic products and services, PennHIP(R), a diagnostic test for canine hip dysplasia, nutritional supplements and a line of coat and skin care products to breeders and owners of purebred dogs and their veterinarians.

Recently, ICG began marketing the first at-home diagnostic ovulation test for dogs in the United States and announced a sponsored research agreement with New York University, New Jersey Medical School and Cornell University for the co-development of a diagnostic product for early canine pregnancy detection. Paul A. Rosinack, ICG's current president and CEO, will become a vice president of Synbiotics and remain president of ICG's operation.

Robert L. Widerkehr, president and CEO of Synbiotics, commented, "This acquisition represents a significant opportunity as we are combining ICG's unique proprietary products, technology and market position with Synbiotics' strong manufacturing and U.S. and international product distribution."

"The synergy between our two companies is exciting," said Rosinack. "We believe our combined efforts will have a very positive effect on the level of diagnostic products and services we can provide our customers worldwide and the growth of the business."

Synbiotics develops, manufactures and markets advanced animal health diagnostics and biological products under its own name in the United States and internationally through marketing and license agreements.

CONTACT: Synbiotics Corp., San Diego

Michael K. Green, 619/451-3771

[e-mail])

or

ICG

Paul Rosinack, 610/640-1244

or

FRB, Chicago

Kathy Brunson, 312/266-7800