June 14, 2002

LSR ANNOUNCES FIRST QUARTER RESULTS

Princeton, New Jersey, May 14, 2002 – Life Sciences Research, Inc. ("LSR") (Other OTC: LSRI) announced today that net revenues for the quarter ended March 31, 2002 were $26.1 million, 15% above the revenues for same period in the prior year of $22.7 million.  The Company reported a net loss for the quarter ended March 31, 2002 of $3.3 million, compared with $4.3 million the previous year. Loss per share for the quarter was $0.48 compared with a loss of $0.74 in the quarter ended March 31, 2001, including Other Operating Expenses of $1.5 million associated with the LSR Exchange Offer and share subscription in the first quarter of 2002, and $0.2 million associated with refinancing costs in the same period in 2001.  Earnings before Interest, Taxes, Depreciation and Amortization (“EBITDA”) was $2.1 million for the first quarter, exclusive of the items discussed above, or 8.0% of sales, compared to a loss of $0.1 million for the same period in the prior year, exclusive of one time charges.

Brian Cass, LSR's President and Managing Director said "We established a positive momentum during 2001 and this is being sustained as we enter 2002.  First quarter revenues are 15% up on last year but it is the growth in orders that is even more dramatic.  The market place for pre-clinical CRO services is very buoyant at the moment and looks set to continue.  Orders in the first quarter were at record levels and 46% above last year and 6% above the previous record.  Similarly our level of booked-on work is the highest we have experienced." 

He added "This build up of orders and backlog is very encouraging and supports our commitment to further improvement in profitability levels, working capital and cash flow.  We have achieved important milestones in the last year and remain diligently focused on further strengthening our Company through 2002."

Andrew Baker, LSR’s Chairman and CEO, said “With the completion of our first quarter as an American domiciled company, we are more convinced than ever that this move, despite its expense, was very much in the best interests of our stakeholders.  While we still have identified challenges ahead of us, we can see valuable benefits of our new structure.”

Life Sciences Research, Inc. is one of the world’s leading Contract Research Organizations providing product development services to the pharmaceutical, agrochemical and biotechnology industries.  LSR brings leading technology and capability to support its clients in non-clinical safety testing of new compounds in early stage development and assessment.  The purpose of this work is to identify risks to humans, animals or the environment resulting from the use or manufacture of a wide range of chemicals which are essential components of LSR's clients' products.  The Company's services are designed to meet the regulatory requirements of governments around the world.  LSR operates research facilities in the United States (the Princeton Research Centre, New Jersey) and the United Kingdom (Huntingdon and Eye, England).

This announcement contains statements that may be forward-looking as defined by the USA’s Private Litigation Reform Act of 1995.  These statements are based largely on LSR’s expectations and are subject to a number of risks and uncertainties, certain of which are beyond LSR’s control, as more fully described in LSR’s Registration Statement on Form S-4, dated December 21, 2001, and the Company’s Form 10-K for the fiscal year ended December 31, 2001, as filed with the US Securities and Exchange Commission.

2002

2001

Net revenues

$26,135

$22,689

Cost of sales

(21,646)

(20,915)

Gross profit

4,489

1,774

Selling and administrative expenses

(4,302)

(4,006)

Other operating expense

(1,517)

(174)

Operating loss

(1,330)

(2,406)

Interest income

6

39

Interest expense

(1,627)

(1,668)

Other loss

(1,106)

(2,071)

Loss before income taxes

(4,057)

(6,106)

Income tax benefit

742

1,770

Net loss

(3,315)

(4,336)

Other comprehensive (loss)/income, net of tax

Foreign currency translation adjustments

(122)

11

Total comprehensive loss

$(3,437)

$(4,325)

Loss per common share

- Basic

$(0.48)

$(0.74)

- Diluted

$(0.48)

$(0.74)

Weighted average common shares outstanding

- Basic     (000's)

6,872

5,870

- Diluted  (000's)

6,872

5,870

March 31,

December 31,

2002

2001

ASSETS

(Unaudited)

Current assets:

Cash and cash equivalents

$5,066

$2,240

Accounts receivable net of allowance for uncollectibles of $182,000 (2001: $164,000)

18,699

18,257

Unbilled receivables

12,708

13,920

Inventories

1,266

1,275

Prepaid expenses and other

3,723

2,777

Deferred income taxes

-

73

Total current assets

41,462

38,542

Property and equipment: net

87,319

90,353

Investments

214

202

Unamortized capital bonds issue costs

639

691

Deferred income taxes

4,753

4,176

Total assets

$134,387

$133,964

LIABILITIES AND SHAREHOLDERS' EQUITY/(DEFICIT)

Current liabilities:

Accounts payable

$10,972

$9,899

Accrued payroll and other benefits

1,366

2,323

Accrued expenses and other liabilities

9,065

10,336

Fees invoiced in advance

18,225

17,722

Short-term debt

137

158

Total current liabilities

39,765

40,438

Long-term debt

84,311

59,302

Related party loans

552

28,821

Other long-term liabilities

26

174

Deferred income taxes

9,595

9,953

Total liabilities

134,249

138,688

Commitments and contingencies

-

-

Shareholders' equity/(deficit)

Voting Common Stock, $0.01 par value

Authorized at March 31, 2002, 50,000,000 (2001, 50,000,000)

Issued and outstanding at  March 31, 2002, 11,055,539 (2001, 5,870,305)

$105

$59

Non-Voting Common Stock, $0.01 par value

Authorized at March 31, 2002, 5,000,000 (2001, 5,000,000)

Issued and outstanding at March 31, 2002, 900,000 (2001, 0)

9

-

Paid in capital

74,279

66,035

Foreign currency translation adjustments

(4,482)

(4,360)

Accumulated deficit

(69,773)

(66,458)

Total shareholders' equity /(deficit)

138

(4,724)

Total liabilities and shareholders' equity /(deficit)

$134,387

$133,964