Quarter Highlights:

 --  Revenues were $247.5 million for the quarter, 18.8% higher than     revenues for the same period in the prior fiscal year. --  Selling, general and administrative ("SG&A") expenses as a percentage     of revenues were 9.2% for the quarter, compared to 10.0% for the same     period in the prior fiscal year. --  Operating income was $10.9 million for the quarter, 24.5% higher than     operating income for the same period in the prior fiscal year, despite a     $2.1 million reduction in vendor rebates from the same period in the prior     fiscal year. --  Net income was $6.6 million for the quarter, 22.1% higher than net     income for the same period in the prior fiscal year. Diluted earnings per     share were $0.54 for the quarter, compared to $0.44 for the same period in     the prior fiscal year, an increase of 22.7%. --  We completed the quarter with no borrowings on our $70 million credit     line and a cash balance of $5.1 million. Net cash provided by operating     activities was $19.8 million during the quarter. --  Internet sales to independent veterinary practices and producers grew     by approximately 47% for the quarter compared to the same period in the     prior fiscal year. Our product sales from the internet as a percentage of     sales improved to 32% for the quarter as compared to 28% for the same     period in the prior fiscal year. --  We announced plans to open a new distribution center in October 2009     near Indianapolis, Indiana, which will enable us to continue to grow in     that geographic region.      

"While the business environment was challenging, MWI's results exceeded our expectations regarding revenue growth, market share gains, operating expense control, earnings growth, cash flow and value-added services," said Jim Cleary, President and Chief Executive Officer. "We are particularly pleased with our 19% revenue growth, our 47% growth in our e-commerce sales to independent veterinary practices and producers, and our 22% growth in net income despite a $2.1 million reduction in vendor rebates. The MWI team stayed focused on our mission, strategic objectives and core values in a challenging environment, and our results reflect their dedication."

Quarter ended June 30, 2009 compared to quarter ended June 30, 2008

Total revenues increased by 18.8% to $247.5 million for the quarter ended June 30, 2009, compared to $208.3 million for the quarter ended June 30, 2008. Revenues attributable to new customers represented approximately 50% of the growth in total revenues during the quarter ended June 30, 2009. Included in the new customer growth were approximately $3.7 million of revenues attributable to new customers acquired as a result of the Company's acquisition of substantially all of the assets of AAHA MARKETLink on July 1, 2008. Additionally, we had $6.9 million of incremental revenues as a result of the acquisition of substantially all of the assets of AAHA MARKETLink from customers who had previously been purchasing from both MWI and AAHA MARKETLink. Commissions on agency sales increased 11.7% to $3.6 million for the quarter ended June 30, 2009, compared to $3.3 million for the quarter ended June 30, 2008.

Gross profit increased by 13.8% to $34.5 million for the quarter ended June 30, 2009, compared to $30.3 million for the quarter ended June 30, 2008. Gross profit as a percentage of total revenues was 13.9% for the quarter ended June 30, 2009, compared to 14.6% for the quarter ended June 30, 2008. The decrease in gross profit as a percentage of total revenues was due to a decrease in vendor rebates, which was primarily a result of the elimination of the livestock rebate opportunity from one of our largest vendors. Vendor rebates for the quarter ended June 30, 2009 decreased approximately $2.1 million compared to the quarter ended June 30, 2008. Our gross profit benefited from an improvement in freight costs as a percentage of total revenues.

Operating income increased by 24.5% to $10.9 million for the quarter ended June 30, 2009, compared to $8.7 million for the quarter ended June 30, 2008. SG&A expenses as a percentage of total revenues improved to 9.2% for the quarter ended June 30, 2009, compared to 10.0% for the quarter ended June 30, 2008, due to operating leverage and cost-control measures. SG&A expenses increased by 9.4% to $22.7 million for the quarter ended June 30, 2009, compared to $20.8 million for the quarter ended June 30, 2008. The dollar increase in SG&A expenses was primarily due to increased compensation costs and an increase in our allowance for doubtful accounts, partially offset by a decrease in travel expenses.

Net income increased by 22.1% to $6.6 million for the quarter ended June 30, 2009, compared to $5.4 million for the quarter ended June 30, 2008. Diluted earnings per share were $0.54 and $0.44 for the quarters ended June 30, 2009 and June 30, 2008, respectively, an increase of 22.7%.

Nine months ended June 30, 2009 compared to nine months ended June 30, 2008

Total revenues increased by 14.4% to $693.8 million for the nine months ended June 30, 2009, compared to $606.6 million for the nine months ended June 30, 2008. Revenues attributable to new customers represented approximately 66% of the growth in total revenues during the nine months ended June 30, 2009. Included in the new customer growth were approximately $8.9 million of revenues attributable to new customers acquired as a result of the Company's acquisition of substantially all of the assets of AAHA MARKETLink on July 1, 2008.