MERIDIAN, ID -- (Marketwire) -- 11/06/08 -- MWI Veterinary Supply, Inc. (NASDAQ: MWIV) (the "Company") announced financial results today for its fourth quarter and fiscal year ended September 30, 2008.

Highlights:

--    Revenues were $224.8 million for the quarter, 18.2% higher than
      revenues for the same period in the prior fiscal year.  Revenues
      were $831.4 million for fiscal year 2008, 17.1% higher than
      revenues for fiscal year 2007.
--    Net income was $5.4 million for the quarter, 25.4% higher than net
      income for the same period in the prior fiscal year.  Net income was
      $19.9 million for fiscal year 2008, 18.0% higher than net income for
      fiscal year 2007. Diluted earnings per share were $0.44 for the
      quarter, compared to $0.35 for the same period in the prior fiscal
      year.  Diluted earnings per share were $1.62 for fiscal year 2008,
      compared to $1.40 for fiscal year 2007.
--    Selling, general and administrative ("SG&A") expenses as a
      percentage of revenues were 9.6% for the quarter, compared to 10.2%
      for the same period in the prior fiscal year.  SG&A expenses as a
      percentage of revenues were 10.1% for fiscal year 2008, compared to
      10.3% for fiscal year 2007.
--    Internet sales to independent veterinary practices and producers
      grew by approximately 43% for the quarter compared to the same
      period in the prior fiscal year and 39% for fiscal year 2008
      compared to fiscal year 2007.  Our product sales from the internet
      as a percentage of sales improved to 28% for the quarter as compared
      to 26% for the same period in the prior fiscal year and 27% for
      fiscal year 2008 as compared to 24% for fiscal year 2007.
--    We acquired substantially all of the assets of AAHA Services
      Corporation ("AAHA MARKETLink") in July 2008, and entered into
      long-term sponsorship and licensing agreements with American Animal
      Hospital Association.
--    Cash flow provided by operations for fiscal year 2008 was $10.6
      million, and we completed the fiscal year with $3.4 million of cash
      and no borrowings on our $70 million credit line.

"Fiscal year 2008 was another excellent growth year for MWI," said Jim Cleary, President and Chief Executive Officer. "We had several key achievements during the year including the successful acquisition and integration of AAHA MARKETLink, 17.1% revenue growth, 18.0% net income growth, 39% growth in our e-commerce sales to independent veterinary practices and producers, and the addition of our new 105,000 square foot distribution center in Kansas. I would like to thank our employees for their continued dedication and hard work, and I would like to thank our loyal customers and vendors for their continued support of MWI."

Quarter ended September 30, 2008 compared to quarter ended September 30, 2007

Total revenues grew 18.2% to $224.8 million for the quarter ended September 30, 2008, compared to $190.2 million for the quarter ended September 30, 2007. Revenues attributable to new customers represented approximately 62% of the growth in total revenues during the quarter ended September 30, 2008. Included in the new customer growth were approximately $2.8 million of revenues attributable to new customers acquired as a result of the acquisition of AAHA MARKETLink on July 1, 2008. Additionally, we had $5.4 million of incremental revenues as a result of the acquisition of AAHA MARKETLink from customers who had previously been purchasing from both MWI and AAHA MARKETLink. Commissions grew 27.0% to $3.2 million for the quarter ended September 30, 2008, compared to $2.5 million for the quarter ended September 30, 2007.

Gross profit increased by 16.8% to $31.2 million for the quarter ended September 30, 2008, compared to $26.7 million for the quarter ended September 30, 2007. Gross profit as a percentage of total revenues was 13.9% for the quarter ended September 30, 2008, compared to 14.0% for the quarter ended September 30, 2007. Vendor rebates for the quarter ended September 30, 2008 increased approximately $95,000 compared to the quarter ended September 30, 2007.

Operating income increased 31.6% to $8.8 million for the quarter ended September 30, 2008, compared to $6.7 million for the quarter ended September 30, 2007. SG&A expenses as a percentage of revenue were 9.6% for the quarter ended September 30, 2008, compared to 10.2% for the quarter ended September 30, 2007. This reduction was due to improvements in compensation and benefits costs, occupancy and location expense and travel expense as a percentage of revenues. SG&A expenses increased 11.3% to $21.6 million for the quarter ended September 30, 2008, compared to $19.4 million for the quarter ended September 30, 2007. During fiscal year 2008 our overall headcount increased approximately 10% to 881 employees, including 23 additional field sales representatives and 18 additional telesales representatives.

Net income increased 25.4% to $5.4 million for the quarter ended September 30, 2008, compared to $4.3 million for the quarter ended September 30, 2007.