Heska Corporation Announces USDA Approval for New Equine Flu Vaccine

FORT COLLINS, Colo. (PROTEXT) - Heska Corporation (Nasdaq:HSKA), a leader in the companion animal health market, todayannounced that its new proprietary equine influenza vaccine hasreceived USDA approval. The product, Flu Avert(TM) I.N. vaccine,is expected to be made available to veterinarians inapproximately two weeks. Robert Grieve, Chief Executive Officer of Heska, said, "We areparticularly pleased with the USDA approval and look forward tomarketing this product for several reasons. First, equineinfluenza is a health issue that poses a significant risk to theestimated six million horses in the United States. We currentlybelieve that approximately half of these horses routinely receivevaccination, so this represents a significant market opportunityfor Heska. Industry sources have estimated the total equinevaccine market at $50 million in the U.S. alone. In addition, theEuropean market potential for the product is also quite sizeable.We will be seeking regulatory approval in Europe and weanticipate marketing the product there in approximately twoyears. "Secondly, the current equine influenza vaccines on the marketsimply do not afford the degree of protection required by horseowners today. As a result, horses are frequently subjected torepeated vaccinations -- as often as six times per year -- andstill contract the disease. In clinical trials, Flu Avert I.N.vaccine has been shown to provide excellent protection for atleast six months. The product is also extremely safe," Grieveadded. "We believe this product affords an unprecedented level ofprotection in the prevention of equine flu. This is especiallyimportant to the owners of performance horses that regularly comeinto contact with other horses." In addition to the strong safety and efficacy profile of FluAvert I.N. vaccine, the product has several novel characteristicsthat set it apart from others on the market. The product is a"modified-live" virus vaccine. This type of vaccine is generallyconsidered to be more effective than "killed" virus vaccines.Heska's vaccine is also unique in that it is administered by theuse of a nasal applicator, rather than through injection. Theeffectiveness of Flu Avert I.N. vaccine was demonstrated inextensive challenge studies which exposed both vaccinated andunvaccinated horses to virulent strains of the most common fluviruses. "We know of no other equine influenza vaccine that hasgone through the extensive challenge studies that were anintegral part of our clinical trials," said Grieve. Heska discovers, develops, manufactures and markets companionanimal health products, primarily for dogs, cats and horses.Heska has a large and sophisticated scientific effort devoted toapplying biotechnology to the large and growing companion animalhealth market. Heska also offers diagnostic and patientmonitoring instrumentation and supplies, as well as laboratorydiagnostic products and services in the United States and Europeto veterinarians, and operates USDA- and FDA-licensed facilities,which manufacture vaccine, pharmaceutical, and allergyimmunotherapy products. For additional information on Heska andits products, visit the company's web site at www.heska.com. With the exception of historical matters, this press releasecontains express or implied forward-looking information aboutHeska's products and markets, including statements concerningproduct availability, market acceptance and the marketopportunity for this product. Such forward-looking statementsinvolve known and unknown risks, uncertainties and other factorswhich may cause actual results, performance or achievements ofHeska to be materially different from any future results,performance or achievements expressed or implied by such forward-looking statements. Heska's achievement of these results may beaffected by many factors, including among others, the following:delays in the availability of this product; delays in or failureto achieve market acceptance of this product; the failure of thisproduct to perform in the marketplace on the same basis as inclinical trials; the inability to obtain renewal or continuationof contracts, or maintain exclusivity, to market, sell ordistribute the product described herein; uncertainties regardingthe ability to receive required European regulatory approvals ina timely manner, if at all; uncertainties regarding the scope,enforceability and validity of patents and proprietary rights,which are subject to complex legal standards that vary fromcountry to country and are subject to interpretation byadministrative agencies and courts; quality of management;competition; changes in business strategy or development plans;inability to manufacture, market, sell or distribute products atcurrently projected costs and the risks set forth in Heska'sfilings and future filings with the Securities and ExchangeCommission, including those set forth in Heska's Annual Report onForm 10-K for the year ended December 31, 1998 under the caption"Business-Factors that May Affect Results," and in its QuarterlyReport on Form 10-Q for the quarter ended September 30, 1999under the caption "Management's Discussion and Analysis ofFinancial Condition and Results of Operations - Factors that MayAffect Results." ots Original Text Service: Heska CorporationInternet: http://www.newsaktuell.de Contact: Ron Hendrick,Executive Vice President & CFO, or Robert Grieve, Chief ExecutiveOfficer of Heska Corporation, 970-493-7272; or Judy Brenna,Investor Relations, 212-696-4455, Ext. 221, or Matthew Knight,Media Relations, 212-696-4455, Ext. 271, both of Noonan/RussoCommunications, Inc. Web site: http://www.heska.com

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