Net sales for the fiscal 2010 first quarter were $70.6 million, a decrease of 24.8% from $93.8 million reported in the year ago quarter. Gross profit decreased 37.6% to $11.8 million in the 2010 fiscal quarter compared to $18.9 million in the 2009 quarter. SG&A expenses decreased 16.8% to $10.1 million in the 2010 quarter compared to $12.2 million in the year ago comparable quarter. Net income decreased 78% to $1.0 million, or $0.04 per diluted share, compared to $4.6 million or $0.18 per diluted share in the 2009 quarter.

Albert Eilender, Non-Executive Chairman of Aceto stated, "This past year, as well as the first quarter of the current fiscal year, have been difficult periods for the Company, largely due to the fact that the global economy has contracted beyond what was anticipated a short 12 months ago. Clearly, we are not satisfied with the operating results we have reported for the first quarter of fiscal 2010. Be assured that even though we are confident that in time the general economy will noticeably improve, we are reevaluating how we allocate our efforts and financial resources as well as the steps we can take now to manage Aceto through this period."

Commenting on the Company's first quarter performance, Vincent Miata, President of Aceto stated, "During the fiscal first quarter, the global economic conditions which we have seen for the past 12-18 months continued to negatively impact our results. The decreased sales affected us across almost all of our global operations, in part due to the fact our customers are more closely managing their inventory to coincide with their own reduced demand. During the quarter sales in our Health Sciences segment declined 30.5 % from the comparable quarter. This was primarily due to a decrease in reorders of existing products and overall competitive market pressures including a general push by governments to lower health care costs both in the U.S. and overseas. In our Chemicals & Colorants business segment, sales declined 17.5% on the same comparison basis largely due to the overall economic condition of both the automotive and housing markets. Sales in our Crop Protection segment remained relatively unchanged at $3.4 million for the quarter."

Updating the current status of Aceto's various business initiatives, Mr. Miata commented, "Regarding our animal vaccine project, we have completed all of the testing requirements of the USDA and we are now in the process of compiling the data for submission to the agency. With respect to our initiative to enter the Japanese pharmaceutical market, we continue to move forward, albeit slowly. We have progressed from the trial orders we had initially received to larger, commercial orders and we continue to view this as a good, long-term, business opportunity for Aceto. Our effort to sell finished dosage form generic drugs has proven to be more challenging, than we had originally anticipated. We still believe that it will prove to be a viable long-term business opportunity for Aceto and are working diligently to evaluate and enhance our pipeline of products."

"In our Crop Protection business, we have entered the Glyphosate market for the 2010 growing season. In addition, we also have other crop protection products where we plan to pursue EPA registrations. Generally speaking, the U.S. market for generic crop protection products continues to grow and Aceto is positioned to leverage our core business competencies, sourcing, regulatory support, and marketing, to capitalize on this trend."

Mr. Miata concluded, "As we move forward, we believe the strength of our balance sheet puts us in a position to take advantage of business opportunities that may present themselves in the future.