November 3, 2003

LSR ANNOUNCES THIRD QUARTER RESULTS

East Millstone, New Jersey, November 3, 2003 – Life Sciences Research, Inc. (OTCBB:LSRI) announced today that revenues for the quarter ended September 30, 2003 were $32.7 million, 9.3% above the revenues for the same period in the prior year of $30.0 million.  The Company reported net income for the quarter ended September 30, 2003 of $0.4 million, compared with $1.5 million for the quarter ended September 30, 2002.   Net income per common share for the quarter ended September 30, 2003 was $0.03 compared with $0.13 in the quarter ended September 30, 2002.  Net income included non-cash foreign exchange transaction gains on the conversion of the Company’s dollar denominated bonds into UK pound sterling of $0.3 million compared to $1.6 million in the same period last year.  Excluding the non-cash foreign exchange transaction gains, Earnings before Interest, Taxes, Depreciation and Amortization (“EBITDA”) was $3.9 million for the third quarter, or 11.9% of revenues, compared with $3.7 million, or 12.3% of revenues, for the same period in the prior year.

Revenues for the nine months ended September 30, 2003 were $97.3 million, which were 14.9% above the revenues for the same period in the prior year of $84.7 million.  The Company reported net income for the nine months ended September 30, 2003 of $1.9 million compared with net income of $1.1 million in the nine months ended September 30, 2002.  Net income per common share for the nine months ended September 30, 2003 was $0.16 compared with $0.11 in the nine months ended September 30, 2002.  Net income included non-cash foreign exchange transactions gains on the conversion of the Company's dollar denominated bonds into UK pound sterling of $1.4 million compared to a $3.9 million foreign exchange transaction gain in the same period last year.  Excluding the non-cash foreign exchange transaction gain/loss, EBITDA was $12.1 million for the first nine months of the year, or 12.4% of revenues, compared with $7.3 million, or 8.6% of revenues, for the same period in the prior year.

Brian Cass, LSR's President and Managing Director said  “LSR again delivered consistent results in this quarter, representing the seventh consecutive quarter of revenue growth. Operating profits were maintained and as we look forward we shall continue to focus on cost management to push through more of the revenue growth to the bottom line. Cash management is still a priority, but the progress we have made has also allowed us to invest more in new capital projects this year as we update our systems and infrastructure, reflecting our positive view of the future."

Mr. Cass added “Order levels were softer this quarter but new business enquiries were encouraging and we have been particularly pleased with the strength of our Japanese market.”

Life Sciences Research, Inc. is a global Contract Research Organization 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 Center, 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 Securities 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-1, dated July 25, 2002, and the Company’s Form 10-K for the fiscal year ended December 31, 2002, each as filed with the US Securities and Exchange Commission.

– tables to follow –

(Dollars in thousands, except per share data)

2003

2002

2003

2002

Net revenues

$32,723

$29,951

$97,287

$84,676

Cost of revenue

(26,164)

(24,023)

(76,979)

(68,689)

Gross profit

6,559

5,928

20,308

15,987

Selling, general and administrative expenses

5,189

(4,637)

(15,505)

(13,363)

Other operating income

387

-

255

-

Operating income

1,757

1,291

5,058

2,624

Interest income

10

20

49

53

Interest expense

(1,464)

(1,522)

(4,616)

(4,672)

Other (expense)/income

308

1,747

2,037

2,364

Income before income taxes

611

1,536

2,528

369

Income tax (expense)/ benefit

(215)

(34)

(630)

734

Net income

$396

$1,502

$1,898

$1,103

Income per common share

- Basic

0.03

0.13

0.16

0.11

- Diluted

0.03

0.12

0.15

0.10

Weighted average common shares outstanding

- Basic     (000's)

11,932

11,932

11,932

10,256

- Diluted  (000's)

12,271

12,224

12,920

10,642

(Dollars in thousands)

September 30,

December 31,

2003

2002

Unaudited

Audited

ASSETS

Current assets:

Cash and cash equivalents

$10,549

$14,644

Accounts receivable, net of allowance of $546 and $287 in 2003 and 2002 respectively

20,080

20,176

Unbilled receivables

11,238

9,108

Inventories

1,590

1,556

Prepaid expenses and other current assets

3,801

3,075

Total current assets

$47,258

$48,559

Property and equipment, net

96,948

94,574

Investments

-

248

Goodwill

693

-

Unamortized capital bonds issue costs

440

563

Deferred income taxes

4,520

4,466

Total assets

$149,859

$148,410

LIABILITIES AND SHAREHOLDERS' EQUITY/(DEFICIT)

Current liabilities:

Accounts payable

$11,289

$8,574

Accrued payroll and other benefits

1,962

1,773

Accrued expenses and other liabilities

11,389

12,990

Fees invoiced in advance

24,475

26,066

Total current liabilities

$49,115

$49,403

Long-term debt

84,347

83,717

Related party loans

-

358

Pension liabilities

17,291

17,712

Deferred income taxes

5,722

5,024

Total liabilities

$156,475

$156,214

Commitments and contingencies

Shareholders' equity/(deficit)

Voting Common Stock, $0.01 par value.  Authorized 50,000,000

Issued and outstanding at September 30, 2003: 11,932,338 (December 31, 2002: 11,932,338)

119

119

Non-Voting Common Stock, $0.01 par value.  Authorized 5,000,000

  -

-

Issued and outstanding: None

Preferred Stock, $0.01 par value.  Authorized 5,000,000

-

-

Issued and outstanding: None

Paid in capital

75,098

75,098

Less Promissory notes for the issuance of common stock

(628)

(684)

Accumulated comprehensive loss

(19,342)

(18,576)

Accumulated deficit

(61,863)

(63,761)

Total shareholders' equity /(deficit)

$(6,616)

$(7,804)

Total liabilities and shareholders' equity /(deficit)

$149,859

$148,410