LAB Research Closes $21.1 Million Financing to Expand its Canadian Facilities

LAB Research Closes $21.1 Million Financing to Expand its Canadian Facilities

LAVAL, QC, May 6, 2008 - LAB Research Inc., a Canadian-based global non-clinical contract research organization, announces the execution of the financing agreement entered into on January 31, 2008 with National Bank of Canada Health Group ("NBC"),  pursuant to which NBC granted the Company a $21.1 million financing to expand  its Canadian facilities. Estimated at $40 million, the expansion project will  double this site's capacity, thereby increasing its floor space from 87,000 to  170,000 square feet and the vivarium from 36 to 80 rooms. The construction  phase will be completed in the fall of 2008.

This financing covering solely the investments planned for 2008 consists  of $13.7 million mortgage with a 16-year term requiring no principal  repayments until March 2009, and a $7.4 million loan to finance equipment,  repayable over 11 years. LAB Research plans to invest a further $16 million in  additional equipment during the coming years. These amounts will be financed  through working capital and by way of supplementary financing.      

"Increasing our capacity and optimizing its use are amongst LAB  Research's key success factors. The revenues growth arising from this second  expansion phase will enable us to achieve a critical mass and improve our  profit margin in Canada," stated Luc Mainville, President and Chief Executive  Officer of LAB Research.   
About LAB Research Inc.   

LAB Research is a Canadian global non-clinical contract research  organization that provides contract research services to the pharmaceutical,  biotechnology, agro-chemical, petrochemical and industrial markets. LAB  Research supports the development of its clients' products from three  state-of-the-art facilities located in Canada, Denmark and Hungary. LAB  Research shares trade on the TSX under the symbol "LRI", with 18.1 million  shares outstanding. 

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