Mr

Russ Atter

IDEXX Laboratories

April 17,2006

Company History

From humble beginnings in 1984 with less then a dozen employees, IDEXX Corporation has grown into a multi-national company with more then 3,000 employees worldwide. Based in Westbrook, Maine this biotech company generated more $600 million in total revenue in 2005, a 16% increase over fiscal 2004. IDEXX produces equipment and software for use in veterinary offices including in-house diagnostic machinery and testing kits. Equipment, developed by IDEXX allows veterinarians to obtain immediate results from diagnostic tests that were once sent to off-site laboratories. "In addition to the veterinary market, IDEXX also has a leading position in diagnostic tests for poultry, cattle and swine producers and tests for quality and safety of water and milk"(Harkavy, par. 8). Currently, the company operates under three divisions; companion animal group (veterinary services), water and food diagnostics. Their forecast for sales in 2007 is planned to be about $700 - $710 million (IDEXX, 1).

Financials

IDEXX Laboratories is currently trading at 82.27. The 52 week high/ low is the highest and lowest price the stock has traded in the past twelve months. Investors see the highest and lowest indicator as a very important factor. A stock trading at a low might signal a bargain after retreating from its high. Investors, of course will conduct further analysis to view other indicators, but the high/low indicator can still serve as a signal that warrants deeper investigation. IDEXX laboratories have a 52 week high of 86.74 and a 52 week low of 52.94.

Outstanding shares are all the stocks that are currently held by investors including the restricted shares that are owned by the organizations on the inside as well as all the shares that are currently held by the public. Many organizations repurchase outstanding shares and these purchases do not qualify as outstanding shares. Outstanding stocks are listed in the balance sheet as capital stock. While outstanding shares are used to calculated several metrics, its notable contribution is towards calculating earnings per share which is net income divided by number of common shares outstanding. IDEXX Laboratories 31,629,000 shares outstanding as filed with the SEC.

IDEXX Laboratories currently intends to retain any earnings to finance the expansion and development of its business and does not pay dividends.

Financial Health and Outlook

In an attempt to make assessments regarding the financial health and outlook of IDEXX, we have looked to the financial data available to investors found on the IDEXX website at the following address:

http://www.idexx.com/aboutidexx/pressroom/releases/20054qrter.jsp

This site provides financial statements and facts regarding the financial activities and achievements made by each segment of the organization and displays them separately as well as cumulatively. The various segments of the organization include The Companion Animal group (CAG), the Water Segment, and the Food Diagnostic Group (FDG).

Fourth Quarter Results

In a press release issued on January 27, 2006, IDEXX Laboratories, Inc. reported that revenue for the forth quarter of 2005 increased 16% to $167 million from $144.3 million for the same quarter of 2004. Earnings per diluted share increased from $0.49 for the quarter ended December 31, 2004 to $0.60 for the quarter ended December 31, 2005 (IDEXX.com, 2006).

Full Year Results

IDEXX's full year reports, inclusive of all three business segments, shows an increase of 16% in revenue for 2005. This is an increase from $549.2 million at year end of 2004 to $638.1 million at year end 2005. This also reports that earnings per diluted share for 2005 were $2.30, a 5% increase over earning per diluted share of $2.19 in 2004.

IDEXX also reported Gross profit of $84.9 million for the fourth quarter of 2005. This marks an increase of $16.0 million or 23% from $68.9 million for the fourth quarter of 2004. The report attributes these increase to, "Relatively favorable