– Second-Quarter Sales Increase

14.5% to $352 Million –

– Second-Quarter GAAP EPS Increase

29% to $0.71

and Non-GAAP EPS Increase 23% to $0.79 –

– Raising 2008 Sales and Non-GAAP

EPS Guidance, GAAP EPS Guidance Lowered –

– Agreement Signed to Acquire

NewLab BioQuality AG –

– Increases Stock Repurchase

Authorization by $200 Million –

WILMINGTON, Mass.–(EMWNews)–Charles River Laboratories International, Inc. (NYSE: CRL) today

reported its results for the second quarter and first six months of

2008. For the quarter, net sales increased 14.5% to $352.1 million from

$307.4 million in the second quarter of 2007. Both the Research Models

and Services (RMS) and Preclinical Services (PCS) business segments

reported significantly higher sales, with the RMS segment showing

particular strength due to continued demand from pharmaceutical and

biotechnology companies. Foreign exchange contributed 4.1% to the net

sales growth.

On a GAAP basis, net income for the second quarter of 2008 was $50.2

million, or $0.71 per diluted share, compared to $38.0 million, or $0.55

per diluted share, for the second quarter of 2007.

On a non-GAAP basis, net income was $55.4 million for the second quarter

of 2008, compared to $43.8 million for the same period in 2007, an

increase of 26.4%. Second-quarter diluted earnings per share on a

non-GAAP basis were $0.79, an increase of 23.4% compared to $0.64 per

share in the second quarter of 2007. Non-GAAP earnings per share in the

second quarter of 2008 excluded $7.6 million of amortization of

intangible assets related to acquisitions, a charge of $2.8 million

primarily related to the Company’s

disposition of its legacy preclinical facility in Worcester,

Massachusetts, and a gain of $3.3 million as a result of the Company’s

curtailment of its U.S. defined benefit pension plan. For the second

quarter of 2007, non-GAAP results excluded $8.2 million of amortization

of intangible assets and stock-based compensation related to

acquisitions and a charge of $0.9 million related to the exit of the

Worcester facility.

James C. Foster, Chairman, President and Chief Executive Officer, said, “A

continuation of strong market demand for our broad portfolio of

essential products and services enabled us to sustain our momentum in

the second quarter. We believe that this demand will continue, as

pharmaceutical and biotechnology customers maintain their focus on the

discovery of new therapies and rely on Charles River’s

scientific expertise to enhance the efficiency of their research. We are

optimistic that we will effectively capitalize on these opportunities,

as we increasingly provide the support which is crucial to our clients’

drug discovery and development efforts. Therefore, we are confident that

we will achieve our increased sales and non-GAAP earnings guidance for

2008.”

Research Models and Services (RMS)

Sales for the RMS segment were $172.8 million in the second quarter of

2008, an increase of 20.2% from $143.8 million in the second quarter of

2007. Sales growth was broad based, with strong global demand from

pharmaceutical and biotechnology companies for research models and

services, as well as In Vitro Detection products.

In the second quarter of 2008, the RMS segment’s

GAAP operating margin decreased to 30.2% compared to 31.5% in the second

quarter of 2007. The decrease was due primarily to an increase in

operating expenses in Japan, which are not expected to continue at that

level, as well as a greater proportion of services in the sales mix. On

a non-GAAP basis, which excluded charges of $0.6 million for

acquisition-related amortization and $0.6 million for an asset

impairment related to our Vaccine business in Mexico, the operating

margin was 30.9% compared to 31.7% for the same period in the prior

year. Non-GAAP results in the second quarter of 2007 excluded $0.4

million of amortization related to acquisitions.

Preclinical Services (PCS)

Second-quarter 2008 net sales for the PCS segment were $179.3 million,

an increase of 9.6% from $163.6 million in the second quarter of 2007.

Continuing strong demand for general and specialty toxicology services

drove significantly higher sales at the Company’s

U.S. flagship facilities in Massachusetts and Nevada, and Clinical

Services Northwest benefited from demand for its Phase I services. The

sales gains were partially offset by less favorable preclinical study

mix and some study delays, as well as capacity constraints at other

preclinical facilities.

The segment’s profits were affected, as

expected, by the additional costs associated with the transition to the

new preclinical facility in Nevada and the negative impact of foreign

exchange in Canada resulted in lower operating margins for the PCS

segment compared to the second quarter of 2007. The second-quarter 2008

GAAP operating margin declined to 16.1% from 16.8% in the same period in

the prior year. On a non-GAAP basis, which excluded $7.0 million of

acquisition-related amortization and a charge of $2.2 million associated

with the Company’s disposition of its

Worcester, Massachusetts facility, the operating margin declined to

21.2% from 22.0% in the second quarter of 2007. As expected, the

second-quarter GAAP and non-GAAP operating margins improved sequentially

from the first quarter of 2008 by 230 and 290 basis points respectively.

The improvement was attributable primarily to improved margins in Nevada

as that facility ramps up and Clinical Services Northwest, which

benefited from higher sales.

Six-Month Results

For the first six months of 2008, net sales increased by 15.2% to $689.8

million, from $598.6 million in the same period in 2007. Foreign

exchange contributed approximately 4.1% to the sales growth rate.

On a GAAP basis, net income was $95.3 million, or $1.35 per diluted

share, for the first half of 2008, compared to $74.7 million, or $1.10

per diluted share, for the same period in 2007.

On a non-GAAP basis, net income for the first six months of 2008 was

$106.2 million, or $1.51 per diluted share, compared to $87.0 million,

or $1.28 per diluted share, for the same period in 2007. For the first

six months of 2008, non-GAAP net income excluded $15.2 million of

acquisition-related amortization, a charge of $3.5 million primarily

related to the Company’s disposition of its

Worcester, Massachusetts facility, and a gain of $3.3 million as a

result of the Company’s pension curtailment.

Non-GAAP net income for the first half of 2007 excluded

acquisition-related charges of $16.1 million and charges of $1.7 million

related to the exit of the Worcester facility.

Research Models and Services (RMS)

For the first six months of 2008, RMS net sales were $341.4 million, an

increase of 19.0% from first-half 2007 net sales of $286.9 million. The

RMS segment’s GAAP operating margin was 31.6%

in the first half of 2008, compared to 32.2% for the year-ago period. On

a non-GAAP basis, the operating margin was 32.1% compared to 32.4% in

the first six months of 2007.

Preclinical Services (PCS)

For the first six months of 2008, PCS net sales were $348.4 million, an

increase of 11.7% over first-half 2007 net sales of $311.8 million. On a

GAAP basis, the PCS segment operating margin was 15.0% in the first half

of 2008, compared to 16.3% in the year-ago period. On a non-GAAP basis,

the operating margin was 19.8% in the first half of 2008 compared to

21.7% for the same period in 2007.

2008 Guidance

The Company is increasing its sales and non-GAAP earnings per share

guidance and reducing GAAP earnings per share guidance for 2008. The

reduction of GAAP earnings guidance is due primarily to a $0.04 charge

for revaluation of a deferred tax asset for our convertible debt, due to

a change in Massachusetts tax law. The charge will be excluded from

non-GAAP results. The revised forward-looking guidance, which includes

the anticipated acquisition of NewLab BioQuality AG by the end of the

third quarter of 2008, is based on current foreign exchange rates.

2008 GUIDANCE		REVISED		PRIOR
Net sales growth		12% – 14%		10% – 13%
GAAP EPS estimate		$2.59 – $2.65		$2.59 – $2.69
Amortization of intangible assets		$0.30		$0.30
Revaluation of deferred tax asset, impairment and other charges		$0.07 – $0.08		$0.01 – $0.02
Gain on curtailment of U.S. defined benefit pension plan		($0.03)		($0.04)
Non-GAAP EPS estimate		$2.94 – $3.00		$2.87 – $2.97

Company to Acquire NewLab BioQuality AG

Charles River has entered into an agreement to acquire privately-held

NewLab BioQuality AG (NewLab) for approximately $53 million in cash.

NewLab, a Dusseldorf, Germany-based contract service organization,

provides safety and quality control services to biopharmaceutical

clients. NewLab is expected to achieve revenues in a range of $20-$23

million in 2008. The transaction is expected to close by the end of the

third quarter of 2008, subject to customary regulatory approvals, and is

expected to be neutral to earnings per share in 2008 and slightly

accretive in 2009.

Charles River Biopharmaceutical Services, which provides services to

support the development and manufacture of biologics, is a world leader

in cell bank manufacture from research through full-scale production,

and a premier provider of testing to determine the potency of biologics,

of drug product release testing, and of clinical-scale vaccine

manufacture. Complementing these services, NewLab enhances Charles River’s

capabilities in process validation services, which mimic new

manufacturing processes to verify that potentially hazardous

contaminants have been removed; in consulting services, which help

manufacturers meet regional Good Manufacturing Practice (GMP) guidance

on new drugs; and assists in designing International Conference on

Harmonisation (ICH)-compliant stability testing programs. Together,

Charles River and NewLab expect to provide the most comprehensive

service package in the biopharmaceutical industry at a time when

biologic drugs are becoming an increasing proportion of therapeutics in

development.

Board Increases Stock Repurchase

Authorization

Charles River’s Board of Directors has

increased the existing authorization for the repurchase of Charles River

common stock by $200.0 million. In addition to the remaining balance of

$30.7 million as of August 1, 2008, the amount currently available under

the authorization is $230.7 million. The stock purchases will be made

from time to time on the open market, through block trades or otherwise

in compliance with Rule 10b-18 of the federal securities laws. Depending

on market conditions and other factors, these repurchases may be

commenced or suspended at any time or from time to time without prior

notice. Funds for the repurchases are expected to come from cash on hand

or cash generated by operations.

During the second quarter of 2008, the Company repurchased approximately

535,000 shares of common stock at a total cost of $32.8 million. There

are currently no specific plans for the shares that have been or may be

purchased under the program.

As of August 1, 2008, Charles River had approximately 67.8 million

shares of common stock outstanding.

Webcast

Charles River Laboratories has scheduled a live webcast on Wednesday,

August 6, at 8:30 a.m. ET to discuss matters relating to this press

release. To participate, please go to ir.criver.com and select the

webcast link. You can also find the associated slide presentation and

reconciliations of non-GAAP financial measures to comparable GAAP

financial measures on the website.

Use of Non-GAAP Financial Measures

This press release contains non-GAAP financial measures, such as

non-GAAP earnings per diluted share from continuing operations, which

exclude amortization of intangible assets and other charges related to

our acquisitions, charges related to the disposition of our Worcester

facility, an impairment of our Vaccine business in Mexico, the impact of

the revaluation of a deferred tax asset as a result of changes to a

Massachusetts tax law, and gains attributable to the curtailment of our

U.S. pension plan. We exclude these items from the non-GAAP financial

measures because they are outside our normal operations. There are

limitations in using non-GAAP financial measures, as they are not

prepared in accordance with generally accepted accounting principles,

and may be different than non-GAAP financial measures used by other

companies. In particular, we believe that the inclusion of supplementary

non-GAAP financial measures in this press release helps investors to

gain a meaningful understanding of our core operating results and future

prospects without the effect of one-time charges, and is consistent with

how management measures and forecasts the Company’s performance,

especially when comparing such results to prior periods or forecasts. We

believe that the financial impact of our acquisitions is often large

relative to our overall financial performance, which can adversely

affect the comparability of our results on a period-to-period basis. In

addition, certain activities, such as business acquisitions, happen

infrequently and the underlying costs associated with such activities do

not recur. Non-GAAP results also allow investors to compare the Company’s

operations against the financial results of other companies in the

industry who similarly provide non-GAAP results. The non-GAAP financial

measures included in this press release are not meant to be considered

superior to or a substitute for results of operations prepared in

accordance with GAAP. The Company intends to continue to assess the

potential value of reporting non-GAAP results consistent with applicable

rules and regulations. Reconciliations of the non-GAAP financial

measures used in this press release to the most directly comparable GAAP

financial measures are set forth in the text of this press release, and

can also be found on the Company’s website at

ir.criver.com.

Caution Concerning Forward-Looking

Statements

This news release includes forward-looking statements within the meaning

of the Private Securities Litigation Reform Act of 1995. Forward-looking

statements may be identified by the use of words such as “anticipate,”

“believe,” “expect,”

“will,” “may,”

“estimate,” “plan,”

“outlook,” and “project”

and other similar expressions that predict or indicate future events or

trends or that are not statements of historical matters. These

statements also include statements regarding our projected 2008 sales

and earnings; the future demand for drug discovery and development

products and services, including the outsourcing of these services; the

impact of specific actions intended to improve overall operating

efficiencies and profitability; the timing of the opening of new and

expanded facilities; our future stock purchase activities; future cost

reduction activities by our customers; and Charles River’s

future performance as delineated in our forward-looking guidance, and

particularly our expectations with respect to sales growth. In addition,

these statements include the intended acquisition of NewLab and the

expected impact on our revenues and earnings. Forward-looking statements

are based on Charles River’s current

expectations and beliefs, and involve a number of risks and

uncertainties that are difficult to predict and that could cause actual

results to differ materially from those stated or implied by the

forward-looking statements. Those risks and uncertainties include, but

are not limited to: the ability to successfully consummate the

acquisition of NewLab; a decrease in research and development spending,

a decrease in the level of outsourced services, or other cost reduction

actions by our customers; the ability to convert backlog to sales;

special interest groups; contaminations; industry trends; new

displacement technologies; USDA and FDA regulations; changes in law;

continued availability of products and supplies; loss of key personnel;

interest rate and foreign currency exchange rate fluctuations; changes

in tax regulation and laws; changes in generally accepted accounting

principles; and any changes in business, political, or economic

conditions due to the threat of future terrorist activity in the U.S.

and other parts of the world, and related U.S. military action overseas.

A further description of these risks, uncertainties, and other matters

can be found in the Risk Factors detailed in Charles River’s Annual

Report on Form 10-K as filed on February 20, 2008, as well as other

filings we make with the Securities and Exchange Commission. Because

forward-looking statements involve risks and uncertainties, actual

results and events may differ materially from results and events

currently expected by Charles River, and Charles River assumes no

obligation and expressly disclaims any duty to update information

contained in this news release except as required by law.

About Charles River

Accelerating Drug Development. Exactly. Charles River provides essential

products and services to help pharmaceutical and biotechnology

companies, government agencies and leading academic institutions around

the globe accelerate their research and drug development efforts. Our

more than 8,800 employees worldwide are focused on providing clients

with exactly what they need to improve and expedite the discovery,

development through first-in-human evaluation, and safe manufacture of

new therapies for the patients who need them. To learn more about our

unique portfolio and breadth of services, visit www.criver.com.

CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(dollars in thousands, except for per share data)
	Three Months Ended							Six Months Ended
	June 28, 2008			June 30, 2007				June 28, 2008			June 30, 2007
Total net sales	$	352,134		$	307,435			$	689,819		$	598,634
Cost of products sold and services provided		214,147			186,479				421,455			362,105
Gross margin		137,987			120,956				268,364			236,529
Selling, general and administrative		61,064			56,092				120,370			109,109
Amortization of intangibles		7,600			8,139				15,171			15,994
Operating income		69,323			56,725				132,823			111,426
Interest income (expense)		(1,207	)		(2,595	)			(1,873	)		(4,654	)
Other income (expense)		(267	)		(1,069	)			(1,104	)		(920	)
Income before income taxes and minority interests		67,849			53,061				129,846			105,852
Provision for income taxes		17,920			15,101				34,846			30,411
Income before minority interests		49,929			37,960				95,000			75,441
Minority interests		258			(119	)			341			(373	)
Income from continuing operations		50,187			37,841				95,341			75,068
Loss from discontinued businesses, net of tax		–			115				–			(349	)
Net income (loss)	$	50,187		$	37,956			$	95,341		$	74,719
Earnings (loss) per common share
Basic:
Continuing operations	$	0.75		$	0.57			$	1.41		$	1.13
Discontinued operations	$	–		$	–			$	–		$	(0.01	)
Net income	$	0.75		$	0.57			$	1.41		$	1.12
Diluted:
Continuing operations	$	0.71		$	0.55			$	1.35		$	1.10
Discontinued operations	$	–		$	–			$	–		$	(0.01	)
Net income	$	0.71		$	0.55			$	1.35		$	1.10
Weighted average number of common shares outstanding
Basic		67,328,432			66,830,155				67,416,639			66,587,863
Diluted		Charles River Laboratories International, Inc. Investor Contact: Susan E. Hardy, 781-222-6190 Corporate Vice President, Investor Relations or Media Contact: Amy Cianciaruso, 781-222-6168 Associate Director, Public Relations Major Newsire & Press Release Distribution with Basic Starting at only $19 and Complete OTCBB / Financial Distribution only $89 Get Unlimited Organic Website Traffic to your Website  TheNFG.com now offers Organic Lead Generation & Traffic Solutions