($000 Omitted Except for Net Earnings per Share)                   For the Three Months Ended June 30,                  ----------------------------------                                                      2009       2008                                                     ----       ----    Net sales                                      $  52,976  $  62,901   Gross profit                                      17,304     12,951   Operating expenses                                 7,019      5,711                                                  ---------  ---------   Earnings from operations                          10,285      7,240   Other income (expense)                                18       (239)                                                  ---------  ---------   Earnings before income tax expense                10,303      7,001   Income tax expense                                 3,434      2,277                                                  ---------  ---------   Net earnings                                   $   6,869  $   4,724                                                  =========  =========    Basic net earnings per common share            $    0.38  $    0.26   Diluted net earnings per common share          $    0.36  $    0.25    Shares used in the calculation of diluted net    earnings per common share                        19,184     18,995                    For the Six Months Ended June 30,                  --------------------------------                                                      2009       2008                                                     ----       ----    Net sales                                      $ 105,962  $ 119,762   Gross profit                                      33,602     26,434   Operating expenses                                14,007     11,790                                                  ---------  ---------   Earnings from operations                          19,595     14,644   Other expense                                       (126)      (452)                                                  ---------  ---------   Earnings before income tax expense                19,469     14,192   Income tax expense                                 6,502      4,827                                                  ---------  ---------   Net earnings                                   $  12,967  $   9,365                                                  =========  =========    Basic net earnings per common share            $    0.71  $    0.52   Diluted net earnings per common share          $    0.68  $    0.50    Shares used in the calculation of diluted net    earnings per common share                        19,107     18,916 

Record Results for Earnings

For the second quarter ended June 30, 2009, the company achieved record net earnings of $6.9 million, an increase of $2.1 million, or 45.4%. The $6.9 million generated diluted net earnings per common share of $0.36 versus $0.25 for the prior year comparable period, an increase of 44.0%. Net sales of $53.0 million were approximately 15.8% below the $62.9 million result of the prior year comparable quarter; however, equal to the first quarter 2009 sales results.

Detailing this second quarter of 2009, Animal Nutrition and Health, including industrial choline and derivative product sales, totaled $34.8 million, a decrease of 22.0%, or $9.8 million from the prior year quarter, principally from a decline in volume sold into the well-publicized soft U.S. poultry and dairy industry. We also realized lower export sales from our North American choline plants, largely due to the stronger U.S. dollar in 2009 versus 2008 and international political factors affecting poultry exports. This U.S. volume decline was partially offset by increased volumes of choline products sourced from our Italian operation into the European and international poultry markets. This geographic mix lowered consolidated feed grade prices in the quarter, as did lower pricing linked to the decline in raw materials. Sales of industrial derivatives (both choline and methylamines) were negatively impacted by softness, principally caused by the general economic downturn. Sales of our specialty animal nutrition and health products, targeted for ruminant production animals and companion animals, decreased 14.5% from the prior year comparable quarter primarily due to the poor dairy market conditions in the U.S. We did however realize improved sales of chelated mineral products and new sales generated from AminoShure(tm)-L., our rumen protected lysine.