Strategic Diagnostics closes acquisition of Azur Environmental

Strategic Diagnostics Inc., a provider of antibody products and analytical test kits for the food safety and water quality markets, announced today the closing of the acquisition of AZUR Environmental.

NEWARK, Del., Oct. 1, 2001 — Strategic Diagnostics Inc., a provider of antibody products and analytical test kits for the food safety and water quality markets, announced today the closing of the acquisition of AZUR Environmental.

At the AZUR special shareholders meeting held to vote on the proposal, an overwhelming 96% of the AZUR shareholders voted in favor of the acquisition. The purchase price for the acquisition is 700,000 shares of Series C Preferred Stock, convertible to common shares on a one-for-one basis.

The cornerstone product of AZUR Environmental is the Microtox® Toxicity Test System. It provides rapid screening and confirmation results, which are cost-effective and easy to perform. With more than 500 peer-reviewed scientific articles and more than 1,700 instruments sold worldwide, the Microtox® Toxicity Test System has been approved in regulations or standards in Canada, eight (8) European countries, and has been submitted to the EPA for approval. SDI believes the Microtox® Toxicity Test System is becoming the test system of choice with drinking water utilities across the country in evaluating their vulnerability to contamination. In addition to increased security measures, water utilities are testing their supply streams more frequently to guard against tampering with drinking water supplies and distribution systems.

"We purchased the Microtox 500® to augment the analytical capabilities of our laboratory as part of our water quality program to protect consumers of our water, including the U.S. Pentagon," commented Elizabeth Turner, Laboratory Manager at the U.S. Army Corps of Engineers Washington Aqueduct.

Microtox® technology is a biosensor-based measurement system for toxicity and provides an effective way to monitor for either accidental or deliberate contamination of water supplies. Microtox® systems can rapidly detect increases in toxicity caused by a wide range of organic or inorganic contaminants and are considered more useful than traditional methods because test results are available in near real time allowing for continuous monitoring of drinking water delivery systems. Microtox® systems have been successfully used to monitor drinking water supplies and distribution systems for evidence of tampering. Microtox® systems were used by many major U.S. cities during the Gulf War in 1991, the Olympic games in Los Angeles and Atlanta and during the Democratic National Convention in 2000, held in Los Angeles.

According to the US EPA, there are more than 350 Public Water Utilities that serve populations greater than 100,000 and more than 3,400 that serve areas with more than 10,000 in the United States. Many of the country's major cities get their drinking water from open reservoirs and easily accessed rivers and lakes. These systems provide drinking water to 81% of the population of the country.

"We are pleased that our Microtox® systems can play a crucial role in the overall security of our drinking water supply by providing a means for rapid detection of any deliberate addition of chemicals into the drinking water supply," commented Richard C. Birkmeyer, President and CEO. "We have increased our production of the components that make up the Microtox® Toxicity Testing system in response to recent events and can offer municipalities a low cost, easy-to-use test. The Microtox® systems can serve in this important application to help deter the risk of deliberate contamination, and maintain the safety of our drinking water supply. The advanced capabilities and strengths of this technology was one of the motivating factors for us to acquire AZUR Environmental."

About Strategic Diagnostics Inc.

SDI is a provider of biotechnology-based diagnostic tests for a broad range of agricultural, industrial, and water treatment applications. Through its antibody business, Strategic BioSolutions, Strategic Diagnostics also provides antibody and immunoreagent research and development services. SDI's test kits are produced in a variety of formats suitable for field and laboratory use, offering advantages of accuracy, cost-effectiveness, portability, and rapid response. Trait Check™, GMO QuickCheck™, and GMO Check™ are pending trademarks for SDI.

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