Virbac Reports Fourth Quarter/Year End Results; is Profitable for 2000, On Record Sales.

Business Editors

FORT WORTH, Texas--(BUSINESS WIRE)--March 1, 2001

Virbac Corporation (NASDAQ NM: VBAC), a leading companion animal health company, today reported results of operations for the fourth quarter and year ended December 31, 2000.

Joseph A. Rougraff, Virbac's chief financial officer, pointed out that fiscal 2000 year-end results were adjusted due to the adoption of the Securities and Exchange Commission's new Staff Accounting Bulletin 101, (SAB 101), under which the Company's revenues may be recognized only upon customer acceptance of a shipment. The cumulative effect of this change in accounting principle caused the Company to defer the revenue and related margin on $1.8 million of shipments in-transit to customers at December 31, 2000 until 2001. The quarterly results discussed below are presented as if SAB 101 was not adopted for the fourth quarter 1999 or 2000.

Net sales for the fourth quarter rose 40 percent, to $12.3 million from $8.7 million for the same quarter a year ago. Gross profit was $5.4 million, or 44 percent of sales, compared with $3.2 million, or 37 percent of sales in the corresponding quarter of 1999. The Company's income from operations was almost break even, versus a loss of $1.8 million in the 1999 fourth quarter. Net income for the quarter rose to $0.7 million or three cents per basic and diluted share, from a loss of $1.8 million or 9 cents per basic and diluted share in the quarter ended December 31, 1999.

For the year, net sales rose 8 percent, to a record $53.0 million, from $48.9 million (as adjusted for twelve months of AGNU results) for the year ended December 31, 1999. Gross profit was $22.7 million, or 43 percent of sales, up from $19.4 million or 40 percent of sales in the prior year. Income from operations climbed to $2.8 million from a loss of $0.1 million in 1999. Net income was $2.9 million, or 14 cents per basic share and 13 cents per diluted share, compared to a loss of $0.6 million or three cents per basic and diluted share last year.

Thomas L. Bell, president and chief executive officer, added, "We are pleased that Virbac increased its sales and achieved its first annual profit. Virbac recorded sales gains in all its key product lines, including dermatology and oral hygiene, and we are especially encouraged by the growth in sales of our consumer product Pet Tabs, which we acquired from Pfizer during the third quarter of 2000.

"We entered 2001 with a full pipeline of new, innovative products that we expect will come to fruition in coming quarters and generate meaningful revenues. It has been an exciting and productive period since the company merged with Agri-Nutrition Group in March 1999, and the company remains on track to reach our goal of $100 million over the next several years," Bell concluded.

Virbac Corporation, located in Fort Worth, Texas, is a leading companion animal health Company focusing on the dermatological and oral hygiene markets for pets and companion animals, and provides a broad array of healthcare products to its customers under the C.E.T., Allerderm, St. JON, Zema, Mardel and Francodex brand names. Virbac Corporation is a subsidiary of the $300 million revenue French public animal health Company, Virbac SA. For more information on Virbac, please visit www.virbacfr.com.

                          Virbac Corporation
              Unaudited As Adjusted Financial Highlights


                 Three Months  Three Months  12 Months    As Adjusted
                     Ended         Ended       Ended    12 Months Ended
                  December 31, December 31, December 31,  December 31,
                    2000 (a)     1999 (a)      2000          1999 (b)

Net sales       $ 12,261,173  $ 8,737,593  $ 52,964,901  $ 48,905,824
Gross profit       5,382,178    3,235,643    22,724,201    19,398,810
Operating income,
 (loss)                2,404   (1,828,710)    2,830,875       (61,826)
Income, (loss)
 before
 Cumulative
 Effect change       668,262   (1,854,674)    3,411,977      (686,776)
Basic EPS before
 cumulative change $     .03   $    (0.09)   $     0.16    $    (0.03)
Diluted EPS before
 cumulative
 change             $    .03   $    (0.09)   $     0.15    $    (0.03)


(a) The three months ended 12/31/00 and 12/31/99 are presented before
    application of SAB101 in order to ease comparability.

(b) The twelve months amounts for 1999 are adjusted for twelve months
    of AGNU results.


1.  Sales were up by 40% from the fourth quarter 1999. The increase is
    due to $1.2 M from Pet Tabs and due to $2.3 million of sales from
    the core business.

2.  The gross margin rate for the quarter improved from 37% in 1999 to
    44%. Part of the increase is due to the fourth quarter 1999
    write-off of approximately $0.8 million of inventory partially
    offset by a more favorable product mix in 1999.

3.  The operating income for the fiscal 2000 quarter improved to
    breakeven compared to a loss of ($1.8M) in fiscal 1999 due to
    higher sales in the quarter. Operating expenses in 2000 were $0.3
    million higher than 1999 due to increased R&D expenses and higher
    shipping expenses. R&D has increased due to the increased
    regulatory efforts undertaken by the Company to bring new products
    to the market. Shipping expenses are higher due to higher sales
    volume.

4.  The Company recorded a $1.0 million one-time tax benefit for the
    year ended December 31, 2000. The credit results from the reversal
    of a valuation allowance associated with the tax loss
    carryforwards the Company had generated in past years.


                          VIRBAC CORPORATION
                   Financial Highlights (Unaudited)


                     Unadjusted for SAB 101
                      For the Three Months     For the Twelve Months
                             Ended                     Ended
                      12/31/00    12/31/99     12/31/00     12/31/99
                      Unaudited   Unaudited    Unaudited    Unaudited

Net revenues        $12,261,173  $8,737,593  $52,964,901  $43,717,824
Cost of goods sold    6,878,995   5,501,950   30,240,700   25,774,014
                    ----------- ----------- ------------ ------------

Gross profit          5,382,178   3,235,643   22,724,201   17,943,810

Operating expenses:
 Selling, general
  and administrative  4,334,991   4,461,033   15,886,422   15,105,690
 Research and
  development           333,942     108,618    1,330,904      999,402
 Warehouse and
  distribution          710,841     494,702    2,676,000    1,805,544
                    ----------- ----------- ------------ ------------
  Total Operating
   Expenses           5,379,774   5,064,353   19,893,326   17,910,636

Income, (loss) from
 operations               2,404  (1,828,710)   2,830,875       33,174

Interest expense       (226,563)   (180,911)  (1,004,506)    (576,950)
Other income            187,705     154,947      564,514           --
                    ----------- ----------- ------------ ------------

Income,(loss) before
 income tax benefit     (36,454) (1,854,674)   2,390,883     (543,776)
Income tax benefit      704,716          --    1,021,094           --
                    ----------- ----------- ------------ ------------
Income, (loss) before
 cumulative effect
 of accounting principle
 change                 668,262  (1,854,674)   3,411,977     (543,776)

Cumulative effect
 of accounting change        --          --     (468,735)          --

      ---------
Net Income, (loss)      668,262 $(1,854,674)  $2,943,242    $(543,776)
                    ----------- ----------- ------------ ------------

Earnings per share
 before cumulative effect
 Basic income, (loss)
  per share                $.03     $ (0.09)      $ 0.16      $ (0.03)
                    ----------- ----------- ------------ ------------
 Diluted income, (loss)
  per share                $.03     $ (0.09)      $ 0.15      $ (0.03)
                    ----------- ----------- ------------ ------------

Cumulative effect per share
 Basic income, (loss)
  per share             $    --     $    --      $ (0.02)     $    --

         ------
 Diluted income, (loss)
  per share             $    --     $    --      $ (0.02)     $    --

         ------

Earnings per share
 Basic income, (loss)
  per share                $.03     $ (0.09)      $ 0.14      $ (0.03)
                    ----------- ----------- ------------ ------------
 Diluted income, (loss)
  per share                $.03     $ (0.09)      $ 0.13      $ (0.03)
                    ----------- ----------- ------------ ------------

Basic shares
 outstanding         21,866,974  21,004,000   21,376,097   19,677,053
Diluted shares
 outstanding         22,600,065  21,004,000   22,133,402   19,677,053



                          VIRBAC CORPORATION
                     Consolidated Balance Sheets

                                          December 31,    December 31,
                                              2000            1999
                                          (Unaudited)     (Unaudited)
Assets
Current assets:
   Cash and cash equivalents             $    284,862   $     231,297
   Accounts receivable                      7,824,639       5,555,363
   Accounts receivable - Virbac SA            400,575         424,931
   Inventories                             14,490,189      13,773,605
   Deferred Tax Expense                     5,747,108
   Prepaid expenses and other assets        1,442,262         919,112
                                         ------------   -------------
       Total Current Assets                30,189,635      20,904,308

   Property, plant and equipment, net      12,664,214      12,765,120
   Goodwill and other intangibles, net      6,928,584       9,953,120
   Other assets                                29,834          10,470
                                         ------------   -------------

   Total assets                           $49,812,267     $43,633,018
                                         ============   =============

Liabilities and Shareholders' Equity
Current liabilities:
   Current portion of long-term
    debt and notes payable                   $697,991      $1,564,080
   Accounts payable:
        Trade                               4,897,976       3,579,822
        Virbac SA                             164,464         776,586
   Accrued expenses                         2,304,030       2,723,588
                                         ------------   -------------
         Total Current Liabilities          8,064,461       8,644,076
                                         ------------   -------------

Long-term debt and notes payable            6,894,783       9,347,993
Deferred Tax Credits                          441,156
Unearned product license fees               5,250,000              --

Commitments and contingencies

Shareholders' equity:
   Common stock ($.01 par value;
   38,000,000 shares authorized;
   22,029,411 and 20,975,747
   respectively issued)                       220,294         209,757
   Additional paid-in capital              34,669,321      33,998,794
   Treasury stock at cost (53,714
    and 42,949 shares, respectively)         (200,969)        (97,581)
   Accumulated deficit                     (5,526,779)     (8,470,021)
                                         ------------   -------------
                                           29,161,867      25,640,949
                                         ------------   -------------

   Total Liabilities and
    Shareholders' Equity                  $49,812,267     $43,633,018
                                         ============   =============

Accounts Receivable--DSO deteriorated from 59 days in the third
quarter to 83 days in the fourth quarter. This is due to the seasonal
slow down of sales. The over 90 day category improved by approximately
$0.3M.

Inventory--Inventory increased during the quarter by $2.2M. This is
due to a planned increase for the dental launch.


    This press release contains forward-looking information made
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements may be
affected by certain risks and uncertainties described in the Company's
filings with the Securities and Exchange Commission. The Company's
actual results could differ materially from such forward-looking
statements. Management believes that these amounts are fairly stated,
but audited results could differ from these unaudited results and the
effect may be material. In addition, anticipated 2000 results depend
upon expected synergies from actions taken in 1999 being realized and
upon sales and margin targets being met