HBIO Reports Fourth Quarter 2012 Results

HBIO Reports Fourth Quarter 2012 Results

HOLLISTON, Mass., Feb. 28, 2013 (GLOBE NEWSWIRE) -- Harvard Bioscience, Inc.
(Nasdaq:HBIO), a global developer, manufacturer, and marketer of a broad range
of tools to advance life science research and regenerative medicine, today
reported unaudited financial highlights for the fourth quarter and full year
ended December 31, 2012.

Fourth Quarter Reported Results from Continuing Operations

Revenues from continuing operations were $28.2 million for the three months
ended December 31, 2012 which was within the guidance range of $28-$30 million
provided by management. Fourth quarter revenues were down approximately 2.7%
compared to the same period in 2011.Currency exchange rates had a favorable
0.2% effect on revenues in the fourth quarter of 2012 compared with the fourth
quarter of 2011. The Company's acquisition of AHN Biotechnologie GmbH ("AHN")
in February 2012 had a positive 1.6% effect on revenues in the fourth quarter
of 2012 compared to the fourth quarter of 2011. Excluding the effects of
currency exchange rates and acquisitions, the Company's fourth quarter
revenues were down 4.5% compared to the same period in the previous year.

Net income from continuing operations, as measured under U.S. generally
accepted accounting principles ("GAAP"), was $0.4 million or $0.01 per diluted
share compared to $0.7 million or $0.02 per diluted share for the same period
in 2011. This year-to-year decrease was mainly due to increased spending in
the Company's development-stage Regenerative Medicine Device ("RMD") business.

Core Life Science Research Tools Results

Non-GAAP adjusted earnings per share from continuing operations for our core
Life Science Research Tools business ("LSRT") for the fourth quarter of 2012
was $0.10 per diluted share, flat with the fourth quarter of 2011.

Regenerative Medicine Device Results

Non-GAAP adjusted earnings per share from continuing operations for our
developmental stage RMD business for the fourth quarter of 2012 was a loss of
$0.04 per diluted share, compared with a loss of $0.03 per diluted share for
the fourth quarter of 2011, and reflected greater activities in developing
this initiative.

Full Year Reported Results from Continuing Operations

Revenues from continuing operations for the year ended December 31, 2012 were
$111.2 million, an increase of $2.3 million, or 2.1%, compared to revenues of
$108.9 million for the year ended December 31, 2011. Currency exchange rates
had a negative 1.1% effect on revenues for 2012 compared with the same period
in 2011. The Company's acquisition of AHN in February of 2012 and CMA
Microdialysis ("CMA") in July 2011 had a positive 3.1% effect on revenues.
Excluding the effects of currency exchange rates and acquisitions, the
Company's revenues were up 0.1% from the previous year.

Net income from continuing operations, as measured under GAAP, was $1.5
million, or $0.05 per diluted share, for the year ended December 31, 2012
compared to $3.8 million, or $0.13 per diluted share, for the same period in
2011. This year-to-year decrease was mainly due to increased spending in the
Company's development-stage RMD business.

Core Life Science Research Tools Results

Non-GAAP adjusted earnings per share from continuing operations for our core
LSRT business for the year ended December 31, 2012 was $0.38 per diluted share
compared with $0.35 per diluted share for the year ended December 31, 2011, a
8.6% increase.

Regenerative Medicine Device Results

Non-GAAP adjusted earnings per share from continuing operations for our RMD
business for the year ended December 31, 2012 was a loss of $0.15 per diluted
share, compared with a loss of $0.07 per diluted share for the year ended
December 31, 2011. The increased spending year to year reflected greater
activities in developing this initiative.

Commenting on Harvard Bioscience's performance, Chane Graziano, CEO stated,
"Despite the difficult economic environment and political uncertainty, we made
significant progress at HBIO toward achieving our long term goals of providing
the best products and service for our customers and maximizing shareholder
value. In our Harvard Apparatus Regenerative Technology business (HART) we
achieved several major milestones this year including:

  *Beginning a clinical trial in Russia with two trachea transplant patients
    treated using our bioreactors
  *The first clinical trial was filmed and is being broadcast on European
    televisionand billed as "The Miracle of Krasnodar"
  *The US FDA approved the first trachea transplant surgery in the US
  *Establishing our own trachea scaffold production facility in our
    Holliston, MA facility
  *Filing an S-1 registration statement with the SEC in December to begin an
    IPO and separate HART from HBIO"

Mr. Graziano continued, "While a significant amount of our attention was on
the HART business we also took steps to improve the operations of our core
LSRT business and to position us to once again become active in acquiring new
product lines or companies that strengthen our position in the research
market. Some of the actions we took during 2012 included:

  *Hiring a new GM for our Denville business and restructured its sales team
    to more effectively train new sales reps to ensure better productivity
  *In February we acquired AHN Biotechnologie, a German manufacturer of
    pipette tips. We restructured the company, repositioned its products to
    increase gross margin and we expanded sales and marketing efforts
  *We took steps to increase our gross margins and we reduced expenses in our
    Hoefer electrophoresis business
  *We reorganized and reduced expenses in our Spanish subsidiary
  *We launched a new novel patent pending micro volume cuvette that can
    effectively turn a standard spectrophotometer into a micro volume unit
  *We launched a new micro volume spectrophotometer in 2012 and will
    introduce and launch an additional one in mid 2013
  *We developed a new family of products for our BTX Electroporation brand
    that will enable us to compete in a larger segment of that market"

In closing, Mr. Graziano added, "Due to the fact that we have filed a
registration statement with the SEC for an IPO of HART in connection with the
separation of HART from HBIO, we will not be providing guidance for 2013 for
either business. However, based on the progress we have made in our LSRT and
HART businesses, we are excited about the future growth opportunities for both
of these companies."

Operating Results for Continuing Operations

Three months ended December 31, 2012 compared to three months ended December
31, 2011:

Revenues were $28.2 million, down 2.7%, for the three months ended December
31, 2012 compared to $29.0 million for the same period in 2011. Currency
exchange rates had a favorable 0.2% effect on revenues in the fourth quarter
of 2012 compared with the fourth quarter of 2011. The Company's acquisition of
AHN in February 2012 had a positive 1.6% effect on revenues in the fourth
quarter of 2012 compared with the fourth quarter of 2011. Excluding the
effects of currency exchange rates and acquisitions, the Company's fourth
quarter revenues were down 4.5% compared to the same period in the previous
year. The organic revenue decline was concentrated in our Harvard Apparatus
and Hoefer businesses. In Harvard Apparatus we experienced softer than
expected academic and government research markets. In Hoefer we experienced a
decline in revenue from GE Healthcare ("GEHC"), which is Hoefer's largest
customer.

Cost of product revenues decreased $1.0 million, or 6.1%, to $14.8 million for
the three months ended December 31, 2012 compared with $15.8 million for the
three months ended December 31, 2011. Gross profit as a percentage of revenues
increased to 47.5% for the three months ended December 31, 2012 compared with
45.6% for the same period in 2011. The year-to-year quarterly increase in the
gross margin percentage was due to a more favorable sales mix as well as the
impact of cost reductions.

Sales and marketing expenses increased $0.3 million, or 6.9%, to $5.0 million
for the three months ended December 31, 2012 compared with $4.7 million for
the three months ended December 31, 2011. In LSRT, sales and marketing
expenses increased $0.3 million, or 7.1%, to $4.8 million, compared to $4.5
million for the three months ended December 31, 2011. The increase in sales
and marketing expenses in LSRT included $0.1 million, or 2.1%, attributable to
our AHN acquisition, and $0.2 million, or 5.0% in our Denville and Biochrom
subsidiaries. In RMD, sales and marketing expenses were flat at $0.2 million
for the three months ended December 31, 2012 and 2011.

General and administrative expenses increased $0.2 million, or 3.4% to $5.1
million for the three months ended December 31, 2012 compared with $4.9
million for the three months ended December 31, 2011. In LSRT, general and
administrative expenses decreased $0.4 million, or 7.8%, to $4.2 million,
compared with $4.6 million for the three months ended December 31, 2011. The
decrease was primarily due to a combination of lower corporate expenses and
cost savings related to our restructuring activities.In RMD, general and
administrative expenses increased $0.5 million due to increased activity
related to our regenerative medicine device initiative.

Research and development expenses increased $0.3 million, or 19.3% to $1.8
million for the three months ended December 31, 2012 compared with $1.5
million for the three months ended December 31, 2011. In LSRT, the research
and development expenses were flat at $1.0 million for the three months ended
December 31, 2012 and 2011. In RMD, research and development expenses
increased $0.3 million, primarily due to increased activity in our stem cell
therapy injector and bioreactor development efforts.

Amortization of intangible assets expenses decreased $0.1 million, or 6.8%, to
$0.7 million for the three months ended December 31, 2012. The year-to-year
quarterly decrease was due to intangible assets at our Biochrom subsidiary
becoming fully amortized during 2012, offset partially by new intangible
assets being amortized related to our acquisitions of CMA in 2011 and AHN in
2012.

Other income and expense, net, was $0.1 million expense for the three months
ended December 31, 2012 compared with $0.4 million expense for the three
months ended December 31, 2011. The year-to-year decrease was mainly due to
lower acquisition related expenses. Net interest expense was flat at $0.1
million for the three month periods ended December 31, 2012 and 2011.

Year ended December 31, 2012 compared to year ended December 31, 2011:

Revenues increased $2.3 million, or 2.1%, to $111.2 million for the year ended
December 31, 2012 compared to $108.9 million for the same period in 2011. Our
AHN and CMA acquisitions contributed approximately $3.4 million, or 3.1%, to
the revenue increase for the year ended December 31, 2012. The effect of a
stronger U.S. dollar decreased the Company's revenues by $1.2 million, or
1.1%, compared with the same period in 2011. Adjusting for the effects of
foreign currency and acquisitions, revenues increased $0.1 million, or 0.1%.
The Company's organic revenue growth was negatively impacted by our Harvard
Apparatus and Hoefer businesses. In Harvard Apparatus we experienced softer
than expected academic and government research marketsin both the US
andinternational markets. In Hoefer we experienced a decline in revenue from
GE Healthcare ("GEHC"), which is Hoefer's largest customer.

Cost of product revenues increased $0.1 million, or 0.3%, to $58.8 million for
the year ended December 31, 2012 compared with $58.6 million for the year
ended December 31, 2011. The increase in cost of product revenues included
$2.5 million, or 4.3%, attributable to our AHN and CMA acquisitions. A
stronger U.S. dollar caused a $0.6 million, or 1.1%, favorable currency effect
on cost of product revenues for the year ended December 31, 2012. Gross profit
as a percentage of revenues increased to 47.2% for the year ended December 31,
2012 compared with 46.2% for the same period in 2011. The increase in gross
profit as a percentage of revenues was primarily due to a more favorable sales
mix.

Sales and marketing expenses increased $1.7 million, or 9.7%, to $19.1 million
for the year ended December 31, 2012 compared with $17.5 million for the year
ended December 31, 2011. In LSRT, sales and marketing expenses increased $1.4
million, or 8.4%, to $18.3 million, compared to $16.9 million for the year
ended December 31, 2011, primarily due to $0.4 million, or 2.5%, of expenses
related to our AHN and CMA acquisitions, and $1.1 million, or 6.8%, due to
increased headcount at our Denville business.In RMD, sales and marketing
expenses increased $0.3 million primarily due to an increase in business
development efforts.

General and administrative expenses increased $1.6 million, or 9.1%, to $19.7
million for the year ended December 31, 2012 compared with $18.1 million for
the year ended December 31, 2011. In LSRT, general and administrative expenses
increased $0.2 million, or 1.1%, to $17.5 million, compared to $17.3 million
for the year ended December 31, 2011. This was primarily due to a $0.7
million, or 3.9%, increase due to our AHN and CMA acquisitions, partially
offset by a $0.4 million, or 2.1%, reduction related to various restructuring
activities and a $0.1 million, or 0.9%, decrease due to the impact of a
stronger U.S. dollar. In RMD, general and administrative expenses increased
$1.5 million due to increased activity in our regenerative medicine device
initiative.

Research and development expenses increased $1.9 million, or 34.7%, to $7.3
million for the year ended December 31, 2012 compared with $5.4 million for
the same period in 2011. In LSRT, research and development expenses increased
$0.3 million, or 8.4%, to $4.0 million, compared to $3.7 million for the year
ended December 31, 2011, due to higher expenses at our Harvard Apparatus
businesses. In RMD, research and development expenses increased $1.6 million
primarily due to increased activity in our stem cell therapy injector and
bioreactor development initiatives.

Amortization of intangible asset expenses were flat at $2.7 million for the
years ended December 31, 2012 and 2011.

Other income and expense, net, was $0.9 million expense and $1.5 million
expense for the year ended December 31, 2012 and 2011, respectively. Net
interest expense was $0.6 million for the year ended December 31, 2012
compared to net interest expense of $0.8 million for the year ended December
31, 2011. The decrease in net interest expense was primarily due to lower
average debt balances in 2012 compared to the prior year.Other income and
expense, net, for the year ended December 31, 2012 and 2011, also included
$0.3 million and $0.7 million, respectively, of primarily acquisition related
expenses.

Balance Sheet

We ended 2012 with cash and cash equivalents of $20.7 million compared to
$17.9 million at December 31, 2011. As of December 31, 2012 and 2011, we had
borrowings of $13.0 million and $16.3 million, respectively, outstanding under
our credit facility. The borrowings mainly related to our acquisitions and
stock repurchase program. During the year ended December 31, 2012, we made net
repayments of $3.4 million under our credit facility. At December 31, 2012 and
2011, we had net cash (cash and cash equivalents, less debt) of $7.7 million
and $1.6 million, respectively. During 2012, we paid $2.9 million from our
existing cash balance for our acquisitions.

Trade receivables were $14.4 million and inventories were $17.8 million as of
December 31, 2012 compared to trade receivables of $15.1 million and
inventories of $18.2 million as of December 31, 2011. Outstanding days of
sales, or DSO, were 47 days and 48 days for the three months and year ended
December 31, 2012, respectively, and 48 days and 52 days for the same periods
in 2011, respectively.

Inventories decreased by $0.4 million, or 2.2%, year-to-year. Inventory turns
were flat at 3.3 times for the three months ended December 31, 2012 and 2011.

Discontinued Operations

On September 30, 2008, the Company completed the sale of assets of its Union
Biometrica Division ("UBI"). The purchase price paid under the terms of the
Asset Purchase agreement included an earn-out based on the revenue generated
by the acquired business over a five year post-transaction period in an amount
equal to (i) 5% of the revenue generated up to and including $6.0 million and
(ii) 8% of the revenue generated above $6.0 million each year. Any earn-out
amounts are evidenced by interest-bearing promissory notes due on September
30, 2013 or an earlier date based on certain triggering events. Prior to the
fourth quarter of 2012, the Company had recorded a valuation allowance of
approximately $0.6 million related to the earn-out promissory notes and the
interest thereon as their collectability was uncertain. During the fourth
quarter of 2012, the Company determined that the realization is more likely
than not. Therefore the Company made a decision to reverse the valuation
allowance and recognize the earn-out amount and the interest thereon of
approximately $0.8 million (net of tax) in its financial statements under
"Discontinued Operations".

Conference Call Details

As previously announced, management will host a conference call to discuss
fourth quarter and full year 2012 results and business highlights and outlook,
which will be simultaneously broadcast over the Internet and can be accessed
through the Harvard Bioscience, Inc. website. In addition, management may
discuss, and answer one or more questions concerning business and financial
developments and trends, including with respect to the Company's acquisition
initiatives, our efforts in the field of regenerative medicine and other
business and financial matters affecting the Company. Some of these
discussions and responses to questions may contain information that has not
been previously disclosed. The conference call will begin at 11:00 a.m. Boston
time today, February 28, 2013. To listen to the conference call, log on to our
website at www.harvardbioscience.com and click on the Earnings Call icon. If
you are unable to listen to the live webcast, the call will be archived in the
investor relations section of our website. The live conference call is also
accessible by dialing toll-free 877-303-7611, or toll 970-315-0445, and
referencing the pass code of "94630589". A replay of this conference call will
be available from 2:00 p.m. on February 28, 2013 through March 7, 2013 and
will be accessible by dialing toll-free 855-859-2056, or toll 404-537-3406,
and referencing the pass code of "94630589". This earnings release, as well as
any material financial and other statistical information presented on the call
which is not included in this earnings release, is available on our website by
clicking on the Press Releases icon. If you are unable to listen to the live
conference call, please note that the call, this press release and any related
financial or statistical information will be archived on our website under the
Press Releases icon or Earnings Call icon, as appropriate.

Use of Non-GAAP Financial Information

In this press release, we have included non-GAAP financial information
including adjusted operating income, adjusted net income and adjusted earnings
per diluted share. We believe that this non-GAAP financial information
provides investors with an enhanced understanding of the underlying operations
of the business. For the periods presented, these non-GAAP financial measures
of income have excluded certain expenses and income primarily resulting from
purchase accounting or events that we do not believe are related to the
underlying operations of the business such as amortization of intangibles
related to acquisitions, costs related to acquisition initiatives,
restructuring expenses (including related inventory write-downs), stock-based
compensation expense and gain from adjustment of acquisition contingencies.
They also exclude the tax impact of the reconciling items, the reversal of the
benefit related to the uncertain tax positions and the corresponding accrued
interest and change in valuation allowances related to deferred tax assets.
This non-GAAP financial information approximates information used by our
management to internally evaluate the operating results of the Company.
Tabular reconciliations of our non-GAAP adjusted operating income, non-GAAP
adjusted net income and non-GAAP adjusted earnings per diluted share for the
three months and year ended December 31, 2012 and 2011 and changes in total
revenue compared to the same period of the prior year are included as exhibits
below in this press release.

The non-GAAP financial information provided in this press release should be
considered in addition to, not as a substitute for, the financial information
provided and presented in accordance with GAAP.

About Harvard Bioscience

Harvard Bioscience ("HBIO") is a global developer, manufacturer and marketer
of a broad range of specialized products, primarily apparatus and scientific
instruments, used to advance life science research and regenerative medicine.
HBIO sells its products to thousands of researchers in over 100 countries
primarily through its 850 page catalog (and various other specialty catalogs),
its website, through distributors, including GE Healthcare, Thermo Fisher
Scientific and VWR, and via our field sales organization. HBIO has sales and
manufacturing operations in the United States, the United Kingdom, Germany,
Sweden and Spain with additional facilities in France and Canada. For more
information, please visit www.harvardbioscience.com.

The Harvard Bioscience, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=6426

This press release contains forward-looking statements within the meaning of
the federal securities laws. You can identify these statements by our use of
such words as "will," "guidance," "objectives," "optimistic," "potential,"
"future," "expects," "plans," "estimates," "continue," "drive," "strategy,"
"potential," "potentially," "growth," "long-term," "projects," "projected,"
"intends," "believes," "goals," "sees," "seek," "develop" "possible" "new,"
"emerging," "opportunity," "pursue" and similar expressions that do not relate
to historical matters. Forward-looking statements in this press release or
that may be made during our conference call may include, but are not limited
to, statements or inferences about the Company's or management's beliefs or
expectations, the Company's anticipated future revenues and earnings, the
strength of the Company's market position and business model, the impact of
acquisitions, including the AHN and CMA acquisition, or potential
acquisitions, the outlook for the life sciences industry and the field of
regenerative medicine, opportunities or potential opportunities in the field
of regenerative medicine, the planned initial public offering and the
potential spin-off from the Company, of Harvard Apparatus Regenerative
Technology ("HART"), the Company's business strategy, the positioning of the
Company for growth, the market demand and opportunity for the Company's
current products, or products it is developing or intends to develop, and the
Company's plans, objectives and intentions that are not historical facts.

These statements involve known and unknown risks, uncertainties and other
factors that may cause the Company's actual results, performance or
achievements to be materially different from any future results, performance
or achievements expressed or implied by the forward-looking statements.
Factors that may cause the Company's actual results to differ materially from
those in the forward-looking statements include the market conditions of the
planned initial public offering of HART and with respect to the potential
spin-off of HART, the Company's ability to obtain a private letter ruling from
the Internal Revenue Service regarding the distribution's tax-free treatment,
the Company's failure to identify potential acquisition candidates,
successfully negotiate favorable pricing and other terms with acquisition
candidates to enable potential acquisitions to close, successfully integrate
acquired businesses or technologies, complete consolidations of business
functions, expand our product offerings, introduce new products or
commercialize new technologies, including in the field of regenerative
medicine,unanticipated costs relating to acquisitions, unanticipated costs
arising in connection with the Company'sconsolidation of business functions
and any restructuring initiatives, decreased demand for the Company's products
due to changes in our customers' needs, our ability to obtain regulatory
approvals, including FDA approval, for our products, including any products in
the field of regenerative medicine, the current size or anticipated size of
the regenerative medicine market, the existence and size of opportunities in
the regenerative medicine market, our financial position, general economic
outlook or other circumstances, overall economic trends, the seasonal nature
of purchasing in Europe, economic, political and other risks associated with
international revenues and operations, the impact of the current economic and
financialcrisis, additional costs of complying with recent changes in
regulatory rules applicable to public companies, our ability to manage our
growth, our ability to retain key personnel, competition from our competitors,
technological changes resulting in our products becoming obsolete, future
changesto the operations or the activities of our subsidiaries due to
manufacturing consolidations, our ability to meet the financial covenants
contained in our credit facility, our ability to protect our intellectual
property and operate without infringing on others' intellectual property,
potential costs of any lawsuits to protect or enforce our intellectual
property, economic and political conditions generally and those affecting
pharmaceutical and biotechnology industries, research funding levels from
endowments at our university customers, impact of any impairment of our
goodwill or intangible assets, our ability to utilize deferred tax assets
after the release of our valuation allowances,our acquisition of Genomic
Solutions failing to qualify as a tax-free reorganization for federal tax
purposes, the amount of earn-out consideration that the Company receives in
connection with thedisposition ofthe Company's Capital Equipment Business
segment and factors that may impact the receipt of this consideration, such as
the revenues of the businesses disposed of, plus factors described under the
heading "Item 1A. Risk Factors" in the Company's Annual Report on Form 10-K
for the fiscal year ended December 31, 2011 or described in the Company's
other public filings. The Company's results may also be affected by factors of
which the Company is not currently aware. The Company may not update these
forward-looking statements, even though its situation may change in the
future, unless it has obligations under the federal securities laws to update
and disclose material developments related to previously disclosed
information.

Registration Statement

A registration statement including a prospectus relating to the common stock
of our wholly-owned subsidiary, Harvard Apparatus Regenerative Technology,
Inc. has been filed with the Securities and Exchange Commission ("SEC") but
has not yet become effective. These securities may not be sold nor may offers
to buy these securities be accepted before the time the registration statement
becomes effective. This press release shall not constitute an offer to sell or
a solicitation of an offer to buy these securities, nor shall there be any
sale of these securities in any state or jurisdiction in which such an offer,
solicitation or sale would be unlawful prior to registration or qualification
under the securities laws of any such state or jurisdiction.

For investor inquiries, please call (508) 893-8066. Press releases may be
found on our website, http://www.harvardbioscience.com.

                                                   
Exhibit 1                                           
HARVARD BIOSCIENCE, INC.
Selected Consolidated Balance Sheet Information
(Unaudited, in thousands)
                                                   
                                                   
                                          December 31,
                                          2012     2011
Assets                                              
                                                   
Cash and cash equivalents                  $ 20,681  $ 17,916
Trade receivables                          14,357   15,078
Inventories                               17,762   18,160
Property, plant and equipment              4,551    3,086
Goodwill and other intangibles             58,701   57,845
Other assets                               17,343   14,549
Total assets                               $ 133,395 $ 126,634
                                                   
Liabilities and Stockholders' Equity                
                                                   
Total current liabilities                  9,900    9,559
Total liabilities                          28,887   31,135
Stockholders' equity                       104,508  95,499
Total liabilities and stockholders' equity $ 133,395 $ 126,634

                                                                 
                                                                 
Exhibit 2                                                         
HARVARD BIOSCIENCE, INC.
Consolidated Statements of Income
(In thousands, except per share data)
(unaudited)
                                                                 
                                       Three Months Ended Years Ended
                                       December 31,       December 31,
                                       2012     2011    2012     2011
                                                                 
Revenues                                $ 28,249  $ 29,027 $ 111,171 $ 108,864
Cost of product revenues                14,840   15,800  58,753   58,604
Gross profit                            13,409   13,227  52,418   50,260
                                                                 
Sales and marketing expenses            4,988    4,665   19,169   17,473
General and administrative expenses     5,107    4,942   19,700   18,063
Research and development expenses       1,772    1,485   7,321    5,434
Restructuring charges                   144      19      310      467
Amortization of intangible assets       680      730     2,752    2,746
Total operating expenses                12,691   11,841  49,252   44,183
                                                                 
Operating income                        718      1,386   3,166    6,077
                                                                 
Other income (expense):                                           
Foreign exchange                        (27)      3       (113)     (41)
Interest expense                        (137)     (150)    (584)     (752)
Interest income                         9        17      46       65
Other expenses, net                     7        (273)    (287)     (807)
Other income (expense), net             (148)     (403)    (938)     (1,535)
                                                                 
Income before income taxes              570      983     2,228    4,542
Income tax expense                      206      247     696      730
Income from continuing operations       364      736     1,532    3,812
Discontinued operations                                           
Income from discontinued operations,    838      --     838      --
net of tax
Total income from discontinued          838      --     838      --
operations, net of tax
Net income                             $ 1,202   $ 736    $ 2,370   $ 3,812
                                                                 
Income per share:                                                 
Basic earnings per common share from    $ 0.01    $ 0.03   $ 0.05    $ 0.13
continuing operations
Discontinued operations                 0.03     --       0.03     --
Basic earnings per common share        $ 0.04    $ 0.03   $ 0.08    $ 0.13
                                                                 
Diluted earnings per common share from  $ 0.01    $ 0.02   $ 0.05    $ 0.13
continuing operations
Discontinued operations                 0.03     --       0.03     --
Diluted earnings per common share      $ 0.04    $ 0.02   $ 0.08    $ 0.13
                                                                 
Weighted average common shares:                                   
Basic                                   28,921   28,499  28,799   28,451
Diluted                                 30,104   29,692  29,542   29,819

                                                        
                                                        
Exhibit 3                                                
HARVARD BIOSCIENCE, INC.
Condensed Cash Flow Statements
(in thousands, unaudited)
                                                        
                                                Years Ended
                                                December 31,
                                                2012    2011
                                                        
Cash flows from operations:                              
Net income                                       $ 2,370  $ 3,812
Changes in assets and liabilities                (974)   (3,854)
Other adjustments to operating cash flows        6,868   6,690
Net cash provided by operating activities        8,264    6,648
                                                        
Investing activities:                                    
Net cash used in investing activities            (4,875)  (7,198)
                                                        
Financing activities:                                    
Repayments of debt, net                          (3,350) (1,708)
Other financing activities                       2,287   567
Net cash used in financing activities            (1,063)  (1,141)
                                                        
Effect of exchange rate changes on cash          439      (97)
                                                        
Increase (decrease) in cash and cash equivalents $ 2,765  $ (1,788)



Exhibit 4
HARVARD BIOSCIENCE, INC.
Reconciliation of US GAAP Operating Income to Non-GAAP Adjusted Operating
Income (Continuing Operations)
(in thousands)
(unaudited)

                                  Three Months Ended     Years Ended
                                  December 31,           December 31,
                                  2012       2011      2012     2011
                                                                
US GAAP operating income           $ 718       $ 1,386    $ 3,166   $ 6,077
                                                                
Adjustments:                                                     
                                                                
Amortization of intangible assets  680        730       2,752    2,746
                                                                
Inventory amortization on          --         20        74       76
acquisition
                                                                
GAAP Restructuring charges         144        19        310      467
                                                                
Non GAAP Restructuring charges     --         148       --       173
                                                                
Stock-based compensation expense   948        800       3,321    2,863
                                                                
Non-GAAP adjusted operating income $ 2,490     $ 3,103    $ 9,623   $ 12,402

                                                                   
                                                                   
Exhibit 5                                                           
HARVARD BIOSCIENCE, INC.
Reconciliation of US GAAP Net Income to Non-GAAP Adjusted Net Income
(Continuing Operations)
(in thousands)
(unaudited)
                                                                   
                    Three Months Ended            Years Ended            
                    December 31,                  December 31,           
                    2012          2011         2012        2011    
                                                                   
US GAAP net income
from continuing      $ 364          $ 736         $ 1,532      $ 3,812  
operations
                                                                   
Adjustments:                                                        
                                                                   
Amortization of      680           730          2,752       2,746   
intangible assets
                                                                   
Inventory
amortization on      --            20           74          76      
acquisition
                                                                   
Direct acquisition   4             232          308         699     
costs
                                                                   
GAAP Restructuring   144           19           310         467     
charges
                                                                   
Non GAAP
Restructuring        --            148          --          173     
charges
                                                                   
Stock-based          948           800          3,321       2,863   
compensation expense
                                                                   
Income taxes         (517)    (A)   (547)    (B)  (1,651)  (A) (2,566) (C)
                                                                   
Non-GAAP adjusted
net income from      $ 1,623        $ 2,138       $ 6,646      $ 8,270  
continuing
operations
                                                                   
(A) Income taxes includes the tax effect of adjusting for the reconciling
items and any changes in the valuation allowance.
(B) Income taxes includes the tax effect of adjusting for the reconciling
items.
(C) Income taxes includes the tax effect of adjusting for the reconciling
items and the reversal of the liability related to the uncertain tax positions
and the corresponding accrued interest.

                                                                   
                                                                   
Exhibit 6                                                           
HARVARD BIOSCIENCE, INC.
Reconciliation of US GAAP Diluted Earnings Per Common Share to Non-GAAP
Adjusted Diluted Earnings Per Common Share (Continuing Operations)
(unaudited)
                                                                   
                     Three Months Ended              Years Ended         
                     December 31,                    December 31,        
                     2012            2011         2012      2011   
                                                                   
US GAAP diluted
earnings per common   $ 0.01           $ 0.02        $ 0.05     $ 0.13  
share from continuing
operations
                                                                   
Adjustments:                                                        
                                                                   
Amortization of       0.02            0.02         0.09      0.09   
intangible assets
                                                                   
Direct acquisition    --              0.01         0.01      0.02   
costs
                                                                   
Restructuring charges --              --           0.01      0.02   
                                                                   
Non GAAP              --              --           --        0.01   
Restructuring charges
                                                                   
Stock-based           0.03            0.03         0.11      0.10   
compensation expense
                                                                   
Income taxes          (0.01)    (A)    (0.01)   (B)  (0.05) (A) (0.09) (C)
                                                                   
Non-GAAP adjusted
diluted earnings per  $ 0.05           $ 0.07        $ 0.22     $ 0.28  
common share from
continuing operations
                                                                   
(A) Income taxes includes the tax effect of adjusting for the reconciling
items and any changes in the valuation allowance.
(B) Income taxes includes the tax effect of adjusting for the reconciling
items.
(C) Income taxes includes the tax effect of adjusting for the reconciling
items and the reversal of the liability related to the uncertain tax positions
and the corresponding accrued interest.

                                                                                     
                                                                                     
Exhibit 7                                                                             
HARVARD BIOSCIENCE, INC.
Reconciliation of Changes In Total Revenue Compared to the Same Period of the Prior Year (Continuing
Operations)
(unaudited)
                                                                                  
                                     For                           For                           For
            Three Months Ended      the   Three Months Ended      the   Three Months Ended      the
                                     Year                          Year                          Year
                                     Ended                         Ended                         Ended
            March June  Sept. Dec.  Dec.  March June  Sept. Dec.  Dec.  March June  Sept. Dec.  Dec.
             31,   30,   30,   31,   31,   31,   30,   30,   31,   31,   31,   30,   30,   31,   31,
            2010 2010 2010 2010 2010 2011 2011 2011 2011 2011 2012 2012 2012 2012 2012
                                                                                  
Organic      4.3%  11.0% 4.6%  6.8%  6.1%  -2.1% -1.6% -6.3% -4.4% -3.8% 4.2%  2.2%  -1.2% -4.5% 0.1%
growth
                                                                                  
Acquisitions 29.9% 36.1% 24.7% 2.3%  21.5% 1.3%  2.8%  4.2%  2.9%  2.9%  4.4%  4.9%  1.6%  1.6%  3.1%
                                                                                  
Foreign
exchange     3.7%  -3.6% -3.3% -2.3% -1.5% 0.9%  3.6%  1.8%  -0.2% 1.5%  -1.0% -2.1% -1.4% 0.2%  -1.1%
effect
                                                                                  
Total
revenue      37.9% 43.5% 26.0% 6.8%  26.1% 0.1%  4.8%  -0.3% -1.7% 0.6%  7.6%  5.0%  -1.0% -2.7% 2.1%
growth

CONTACT: David Green
         President
         dgreen@harvardbioscience.com
         Tel: 508 893 8999
         Fax: 508 429 8478
        
         Chane Graziano
         CEO
         cgraziano@harvardbioscience.com
        
         Tom McNaughton
         CFO
         tmcnaughton@harvardbioscience.com

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