Note Important Disclosures on pages 7 and 8 Note Analyst Certification on page 7

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1 COMPANY UPDATE / ESTIMATE CHANGE Key Metrics NEOG - NASDAQ (as of 03/22/18) $62.53 Price Target N/A 52-Week Range $ $65.30 Shares Outstanding (mm) 52.2 Market Cap. ($mm) $3,220 1-Mo. Average Daily Volume 188,049 Institutional Ownership 92% Debt / Total Capital 0.0% ROE (TTM) 9.7% Book Value / Share $10.37 Price / Book Value 6.0x Indicated Dividend / Yield $ % TTM Operating Margin 17.7% Operating (non-gaap) EPS FYE 5/31 Prior Curr. Prior Curr. 2017A 2018E 2018E 2019E 2019E 1Q $0.19 $0.22A $0.29 $0.30 2Q $0.22 $0.24A $0.32 $0.33 3Q $0.18 $0.23A $0.28 $0.27 4Q $0.24 $0.32 $0.32 $0.37 $0.38 Year $0.84 $1.02 $1.01 $1.26 $1.28 P/E 74.5x 62.0x 48.8x Figures may not add up due to rounding Revenue ($mm) Prior Curr. Prior Curr. 2017A 2018E 2018E 2019E 2019E 1Q $83.7 $95.3A $105.9 $ Q $90.9 $101.8A $112.6 $ Q $88.4 $95.9A $108.6 $ Q $98.8 $109.4 $109.3 $121.3 $121.3 Year $361.8 $404.0 $402.3 $448.4 $449.7 Company Description Based in Lansing, Michigan, Neogen develops, manufactures, and markets food and animal safety diagnostics and equipment. Neogen currently operates in two reportable segments: Food Safety and Animal Safety. Food Safety products include diagnostic test kits and complementary products sold to food producers and processors. Animal Safety products include pharmaceuticals, rodenticides, insecticides, disinfectants, veterinary instruments, and genomics services. Medical Devices Analyst: Kurt Kemper, CFA / kkemper@hilliard.com Institutional Sales Desk: George Moorin / GMoorin@hilliard.com J.J.B. Hilliard, W.L. Lyons, LLC March 23, 2018 Neogen Corporation NEOG NASDAQ Neutral 3 A Fairly Quiet 3Q18 with Additional Strength Ahead 3Q18 Results: Neogen reported revenues of $95.9 million, which fell short of our estimate of $97.6 million and the Street consensus estimate of $98.1 million. We note our forecast included $1.3 million in revenues from acquisitions that did not materialize for the historically acquisitive Neogen, so revenues were only slightly below our organic expectations. Operating EPS increased 25% to $0.23, in line with our estimate and the Street consensus. GAAP EPS of $0.32 were boosted by Other Income and an unusually low tax rate (4%). Positive Highlights: Animal Care & Other jumped 19%, well ahead of our 7% growth expectations. The gross margin easily surpassed our estimate of 46.8%, registering at 47.5% for the quarter. Negative Highlights: Global genomics sales, while still growing rapidly, fell short of our expectations. Natural Toxins, Allergens, & Drug Residues were below our estimates as well. Selling & Marketing expenses were 3.6% higher than we estimated despite the revenue miss. Outlook and Estimates: The long-term story remains positive in our view, as regulatory changes, consumer trends, and international opportunities continue to provide additional support to this well-managed company. We decreased our FY18 revenue estimate to $402.3 million from $404.0 million and decreased our FY18 operating (non-gaap) EPS estimate to $1.01 from $1.02, primarily due to lowered expectations for acquisitions (near-term only). We increased our FY19 revenue estimate to $449.7 million from $448.4 million and raised our FY19 operating EPS estimate to $1.28 from $1.26. Valuation: NEOG closed yesterday at 66.8X trailing operating EPS and 51.1X our next twelve months operating EPS estimate. While these multiples are above historical norms, we don t view expectations as unreasonable or misguided. Thus, we reiterate our Neutral rating and encourage investors to wait for a better entry point. Note Important Disclosures on pages 7 and 8 Note Analyst Certification on page 7

2 Revenue Growth 3Q18 Y/Y Segment Quick Review Life Sciences 18.7% Veterinary Instruments & Disposables 6.3% Animal Care & Other 19.4% Rodenticides, Disinfectants, & Insecticides (Biosecurity) 9.4% DNA Testing Service 19.1% Total Animal Safety 6.2% Natural Toxins, Allergens, & Drug Residues 2.2% Bacteria & General Sanitation 7.7% Dehydrated Culture Media & Other 1.2% Rodenticides, Disinfectants, & Insecticides (Biosecurity) 46.0% DNA Testing Service 45.9% Total Food Safety 10.9% Truck driver drug testing legislation in Brazil continues to drive volatile but overall positive results Syringes and needles performing well and taking market share internationally Strength across numerous products and end markets Lost OEM contract caused ~$1.5 million decline, roughly flat otherwise; rodenticides up 11% Strong market growth across species continues to boost the industry leader in this service 5% organic growth Clean crop hurt toxin kit sales; drug residue tests were up 29%; allergens up 14% Sanitation sales up 18% and Listeria tests up 43% for second straight quarter; foodborne total up 22% Growth slowed after several strong quarters Growth from acquisitions; also growing from a relatively small base Strong growth aided by acquisitions Organic growth of 5% in constant currency Neogen Revenue Growth 8.5% Source: Company Reports Investors should note the Biosecurity and DNA Testing Service sections included in Food Safety simply represent the international results of those product portfolios. Neogen has historically included all Animal Safety international business under Dehydrated Culture Media & Other, and recently provided investors with this additional data. ADDITIONAL COMMENTARY Earnings Conference Call Notes International growth remained strong at approximately 17% year-over-year in constant currency terms and actually received a ~2% boost from currency exchange rates. Neogen s Scotland-based operations reported a 15% increase in constant currency terms as it appears the genomics business (GeneSeek) generated another strong quarter, more than offsetting tough comps for mycotoxin kit sales. Neogen s Brazilian revenues grew 80% in constant currency, partially due to the acquisition of a genomics Hilliard Lyons Equity Research 2 Medical Devices

3 business in 3Q17. The Mexican subsidiary produced impressive 19% growth despite some negative impact from a cancelled distribution agreement. Chinese revenues increased 28%. India is still a source of frustration for management, but they are focused on what should be a lucrative opportunity in the long-term. Management believes the international portion of the business could increase from 40% of revenues to 60% over the long-term. GeneSeek revenue increased 25% on a worldwide basis, with international growth aided by the AGL acquisition made last quarter. Domestic growth of 19% was shy of our estimate built on our view of easy comps in 3Q17. Neogen continues to roll out new offerings for customers, recently combining several genetic tests into one simplified solution with their Igenity brand. The company also leverages their strong brand and reputation to access organizations such as the Brown Swiss Association, with which it partnered to provide members (breeders of Brown Swiss cattle) genetic services. With multiple international acquisitions over the past year, Neogen continues to think globally but act locally to quote CFO Steve Quinlan by tailoring customized services to the various local market needs but also working with multinational livestock producers. Rodenticide sales increased 11%, possibly aided by the new Prozap Tracking Powder that both kills mice and provides visual evidence of activity. Rodenticides, reflecting the demand for biosecurity alternatives as antibiotics fall out of favor, continue to perform well with livestock producers. The company s cleaners and disinfectants are still struggling due to the loss of a distribution agreement with Lanxess as a result of an acquisition in December 2016; this acquisition should more than offset the distribution problem over the long-term. Furthermore, this lost distribution agreement is completely anniversaried, with little to no impact expected in 4Q18. Neogen continues to deliver for customers regardless of distribution its Synergize was proven effective against the virus that causes food-andmouth disease, one of the most dreaded afflictions for livestock producers. The international portion of this biosecurity portfolio far exceeded our expectations, growing 20% sequentially. Veterinary instruments & Disposables continues to ride the strength of Neogen s patented detectable needles, which grew 14%. Animal Care & Other growth was strong due to growth from multiple sources, including companion animal supplements, injectable vitamins for livestock, and vaccines. This category could have an additional tailwind in Neogen s ThyroKare coming back on market sometime next fiscal year. Allergen test kits grew 14% as the category continues to benefit from strong demand and Neogen innovation. Drug residue kits were up 29%, driven primarily by international market share gains with little to no contribution from the recently released BetaStar Advanced on Neogen s Raptor Integrated Analysis Platform. Raptor is capable of analyzing three different samples independently and simultaneously, a significant competitive advantage, in our view. We believe the Raptor platform will be a significant growth driver both in the short- and long-term as Neogen takes significant share in the U.S. milk market now and expands the technology to other samples down the road. Natural toxin kits sales struggled due to a clean crop in North America and Europe. The Bacteria & General Sanitation category had a strong quarter as management continues to point to the AccuPoint system (both the reader and consumables) as a source of growth; total sanitation products increased 18%. Additionally, tests for foodborne pathogens increased 22%. The recently launched Listeria Right Now system was a key factor in this growth, although management pointed to strong ANSR equipment sales as well. Listeria Right Now can detect low levels of any species in about one hour the fastest on market with similar accuracy as the 24 hour-plus culture process. Management previously hinted they may be able to use that technology for other pathogens. Other Income Statement Notes The gross margin, which has stabilized after a rough FY16, increased to 47.5% in 3Q18 compared to 46.3% in 3Q17. This exceeded of our estimate of 46.8% and the Street consensus of 47.3%. Improvements at GeneSeek and product mix contributed to the modest increase. Hilliard Lyons Equity Research 3 Medical Devices

4 Operating expenses were higher than our estimate as a percent of sales but slightly lower on a dollar basis. Sales & Marketing expenses were 3.6% higher than our estimate despite revenues coming in below our forecast. Research & Development expenses were slightly lower than our estimate. General & Administrative expenses were 7% lower than our estimate as lower stock-based compensation and lower legal expenses from a lack of M&A offset the continued IT investments. We expect this line item will be volatile for the next several quarters. The operating margin of 16.6% beat our estimate of 16.2% and the Street consensus of 16.3% primarily due to the gross margin beat. Operating Income was $15.9 million versus our estimate of $15.8 million. Other Income was $1.4 million. This contributed $0.03 to EPS. The effective tax rate of 4.1% for the quarter was substantially lower than our 25.0% estimate as a result of a benefit from tax reform. Management noted 4Q18 tax rate will be noisy and difficult to predict, so we reiterate our focus on pretax operating income and cash flow. Operating (non-gaap) net income was $11.9 million versus our estimate of $11.8 million. We used an effective tax rate of 25% to attempt to blend one month of old tax rates and two months of new tax rates for the quarter. With 52.2 million diluted shares outstanding (higher than our 52.0 million estimate), operating EPS came in at $0.23, in line with our estimate and the Street consensus. GAAP EPS were $0.32. As a reminder, we exclude Other Income from our operating EPS estimate. Balance Sheet and Cash Flow Review Neogen generated $46.6 million in cash from operations year-to-date, a ~3% increase compared to the same time frame a year ago. The company has invested about $16.3 million in property and equipment year-to-date. Neogen has no long-term debt, cash and securities of $192.2 million, and a comfortable current ratio of 9.4X. Total liabilities/equity is a conservative 9.9%. ESTIMATES UPDATE From a top line perspective, most of our estimate changes in Animal Safety were simply a reflection of this quarter with a small decrease in growth expectations for GeneSeek (domestically). Within Food Safety, we increased our growth expectations again due to bullishness about the Raptor platform. We continue to finetune our model as it relates to the new information given on Dehydrated Culture Media and international Animal Safety operations. As a result, we increased both international GeneSeek and biosecurity but lowered Dehydrated Culture Media estimates, with a positive net impact. Our FY18 revenue forecast has been decreased to $402.3 million (11.2% growth) from $404.0 million due to lower M&A expectations (near-term only). Our FY19 revenue forecast has been increased to $449.7 million (11.8% growth) from $448.4 million despite slightly lower M&A baked in. We increased our gross margin estimate slightly for FY18 to 48.1% from 47.9%, mostly incorporating this quarter. Our FY19 gross margin estimate has been increased to 48.6% from 48.4% previously. From an operating expense standpoint, we have revised our outlook for Selling & Marketing expenses due to management commentary about investing behind new product launches (for which we anticipate a good ROI). Our adjustments to General & Administrative expenses were minor, and we lowered Research & Development expense estimates as the company continues to drive operating leverage from this line item. With the changes above and an increase to our 4Q18 tax estimate, we lowered our FY18 operating (non- GAAP) EPS estimate to $1.01 from $1.02 while increasing our FY19 forecast to $1.28 from $1.26 previously. We are also unveiling FY20 estimates: $493.6 million in revenue and $1.43 in EPS. Please see the table on page 6 for more detail. Hilliard Lyons Equity Research 4 Medical Devices

5 VALUATION & SUITABILITY Our next 12 month operating EPS estimate reflects impressive 31% growth, partially driven by tax reform. NEOG closed yesterday at 66.8X trailing operating EPS and 51.1X our next twelve months operating EPS estimate. While these multiples are modestly above historical norms, we don t view expectations as unreasonable or misguided and remind investors of Neogen s history of consistently compounding equity at a double-digit rate and our belief in the company s prospects to continue doing so. Thus, we reiterate our Neutral rating and encourage investors to wait for a better entry point. Suitability Neogen is well diversified for a mid-cap company in terms of products and customer base but does experience some event-driven revenues, which can be unreliable. Additionally, relatively low trading volumes and a high multiple are factors in our suitability rating of 3. RISKS & CONSIDERATIONS Integration of acquisitions Neogen has been very acquisitive throughout its history, and we anticipate that trend to continue. Failure to successfully integrate acquisitions could lead to financial results below expectations. Failure of new products Neogen also internally develops new products and product lines. Failure to successfully develop and sell new products could harm profitability. Proprietary protection Neogen has many products that are not under patent protection, and they rely on trade secrets to protect proprietary methods and formulas. Financial harm could arise should Neogen fail to protect trade secrets. Dependence on agricultural industry Neogen derives a significant amount of revenue from customers in or associated with the agricultural industry, which is subject to many factors beyond their control, such as weather. Event-driven revenue Neogen is a frequent beneficiary of food safety problems, such as foodborne pathogen outbreaks, allergen contamination, etc. Failure of these events to occur could lead to lower than anticipated revenue growth. Legal Product lawsuits are common in the health care sector. An unfavorable court decision could hamper the ability to market a product, whether a current patent under Neogen is successfully challenged or Neogen is determined to have infringed upon the patent of a competitor. Regulatory Neogen has some products that are subject to regulatory approval. Additionally, the food safety industry is anticipating new regulations, which could have uncertain effects on industry participants. Hilliard Lyons Equity Research 5 Medical Devices

6 NEOGEN CORPORATION NEOG: NEUTRAL In millions 2016 A 2017 A 1Q18 A 2Q18 A 3Q18 A 4Q18 E 2018 E 2019 E 2020 E Fiscal Period End 5/31/2016 5/31/2017 8/31/ /30/2017 2/28/2018 5/31/2018 5/31/2018 5/31/2019 5/31/2020 Animal Safety Revenue Food Safety Revenue Other Total Revenue Gross Margin % 47.6% 47.6% 48.2% 48.4% 47.5% 48.2% 48.1% 48.6% 49.1% Gross Profit Sales and marketing General and administrative Research and development Total Operating Expenses Operating Income Operating Margin % 17.6% 18.0% 17.2% 17.7% 16.6% 19.5% 17.8% 18.8% 19.2% Royalty Income Non operating items (1.1) Non GAAP Pretax Income Effective Tax Rate 34.2% 33.9% 30.7% 10.0% 4.1% 23.0% 17.2% 21.2% 21.2% Non GAAP Net Income* GAAP Net Income Diluted Shares Outstanding** Non GAAP Diluted EPS $ 0.74 $ 0.84 $ 0.22 $ 0.24 $ 0.23 $ 0.32 $ 1.01 $ 1.28 $ 1.43 GAAP EPS $ 0.72 $ 0.86 $ 0.23 $ 0.33 $ 0.32 $ 0.32 $ 1.20 $ 1.31 $ 1.43 *GAAP and Non GAAP Net Income are calculated after allocations to non controlling interests, which are not shown in this table **Adjusted for 4:3 stock split effective December 29, 2017 Source: Company Reports and Hilliard Lyons estimates Additional information is available upon request Hilliard Lyons Equity Research 6 Medical Devices

7 Analyst Certification I, Kurt A. Kemper, hereby certify that the views expressed in this research report accurately reflect my personal views about the subject company(ies) and its (their) securities. I also certify that I have not been, am not, and will not be receiving direct or indirect compensation in exchange for expressing the specific recommendation(s) in this report. Important Disclosures Hilliard Lyons analysts receive bonus compensation based on Hilliard Lyons profitability. They do not receive direct payments from investment banking activity. Definitions of Ratings: Buy - We believe the stock has significant total return potential in the coming 12 months. Long-term Buy - We believe the stock is an above average holding in its sector, and expect solid returns to be realized over a longer time frame than our Buy rated issues, typically 2-3 years. Neutral - We believe the stock is an average holding in its sector, is currently fully valued, and may be used as a source of funds if better opportunities arise. Underperform - We believe the stock is vulnerable to a price set back in the next 12 months. Definitions of Suitabilities: 1. A large cap, core holding with a solid history. 2. A historically secure company which could be cyclical, has a shorter history than a "1" or is subject to event driven setbacks. 3. An above average risk/reward ratio could be due to small size, lack of product diversity, sporadic earnings or high leverage. 4. Speculative, due to small size, inconsistent profitability, erratic revenue, volatility, low trading volume or a narrow customer or product base. Hilliard Lyons Equity Research 7 Medical Devices

8 Hilliard Lyons Investment Banking Recommended Issues Provided in Past 12 Mo. # of % of Rating Stocks Covered Stocks Covered Banking No Banking Buy 37 33% 11% 89% Hold/Neutral 69 62% 9% 91% Sell 5 5% 0% 100% As of 8 March 2018 Other Disclosures Opinions expressed are subject to change without notice and do not take into account the particular investment objectives, financial situation or needs of individual investors. Employees of J.J.B. Hilliard, W.L. Lyons, LLC or its affiliates may, at times, release written or oral commentary, technical analysis or trading strategies that differ from the opinions expressed here. J.J.B. Hilliard, W.L. Lyons, LLC is a multi-disciplined financial services firm that regularly seeks investment banking assignments and compensation from issuers for services including, but not limited to, acting as an underwriter in an offering or financial advisor in a merger or acquisition, or serving as placement agent in private transactions. The information herein has been obtained from sources we believe to be reliable but is not guaranteed and does not purport to be a complete statement of all material factors. This is for informational purposes and is not a solicitation of orders to purchase or sell securities. Reproduction is forbidden unless authorized. All rights reserved. Hilliard Lyons Equity Research 8 Medical Devices