SECURITIES AND EXCHANGE COMMISSION
                          Washington, DC  20549

                                 FORM 10-K

          (X)  ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
               SECURITIES EXCHANGE ACT OF 1934
               For the fiscal year ended June 30, 2009

                                 OR
          ( )  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
               OF THE SECURITIES EXCHANGE ACT OF 1934
               For the transition period from ________to __________

                     Commission File Number:  000-17272

                           TECHNE CORPORATION
            (Exact name of Registrant as specified in its charter)

       Minnesota                                            41-1427402
(State of Incorporation)                                   (IRS Employer
                                                         Identification No.)

614 McKinley Place N.E., Minneapolis, MN                    55413-2610
(Address of principal executive offices)                     (Zip Code)

                Registrant's telephone number:  (612) 379-8854

         Securities registered pursuant to Section 12(b) of the Act:
                      Common Stock, $0.01 par value

       Securities registered pursuant to Section 12(g) of the Act:  None

Indicate by check mark if the registrant is a well-known seasoned issuer, as
defined in Rule 405 of the Securities Act.  Yes (X) No ( )

Indicate by check mark if the registrant is not required to file reports
pursuant to Section 13 or 15(d) of the Act. Yes ( )  No (X)

Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days:  Yes  (X)  No ( )

Indicate by check mark whether the registrants has submitted electronically
and posted on its corporate Web site, if any, every Interactive Data File
required to be submitted and posted pursuant to Rule 405 of Regulation S-T
(Section 232.405 of this chapter) during the preceding 12 months (or for such
shorter period that the registrant was required to submit and post such
files). Yes ( ) No ( )

Indicate by check mark if disclosure of delinquent filers pursuant to Item
405 of Regulation S-K is not contained herein, and will not be contained, to
the best of registrant's knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-K or any
amendment to this Form 10-K. (X)

Indicate by check mark whether the registrant is a large accelerated filer,
an accelerated filer, or a non-accelerated filer. See definition of
"accelerated filer and large accelerated filer" in Rule 12b-2 of the
Securities Exchange Act.
  Large accelerated filer (X)      Accelerated filer       ( )
  Non-accelerated filer   ( )      Small reporting company ( )

Indicate by check mark whether the Registrant is a shell company (as defined
in Exchange Act Rule 12b-2). ( ) Yes    (X) No

The aggregate market value of the Common Stock held by non-affiliates of the
Registrant, based upon the closing sale price on August 27, 2009 as reported
on The Nasdaq Stock Market was approximately $1.6 billion.  Shares of Common
Stock held by each officer and director and by each person who owns 5% or
more of the outstanding Common Stock have been excluded.

Shares of $0.01 par value Common Stock outstanding at August 27, 2009:
37,244,629.

                 DOCUMENTS INCORPORATED BY REFERENCE

Portion of the Company's Proxy Statement for its 2009 Annual Meeting of
Shareholders are incorporated by reference into Part III.



                                TABLE OF CONTENTS

	                                                              Page
 PART I
   Item 1.   Business                                                   3

   Item 1A.  Risk Factors                                              10

   Item 1B.  Unresolved Staff Comments                                 12

   Item 2.   Properties                                                12

   Item 3.   Legal Proceedings                                         12

   Item 4.   Submission of Matters to a Vote of Security Holders       13

             Supplemental Item - Executive Officers of the Company     13

PART II
   Item 5.   Market for the Registrant's Common Equity, Related
             Stockholder Matters and Issuer Purchases of Equity
             Securities                                                13

   Item 6.   Selected Financial Data                                   15

   Item 7.   Management's Discussion and Analysis of
             Financial Condition and Results of Operations             16

   Item 7A.  Quantitative and Qualitative Disclosures about
             Market Risk                                               23

   Item 8.   Financial Statements and Supplementary Data               24

   Item 9.   Changes in and Disagreements with Accountants
             on Accounting and Financial Disclosure                    39

   Item 9A.  Controls and Procedures                                   39

   Item 9B.  Other Information                                         39

PART III
   Item 10.  Directors, Executive Officers and Corporate Governance    39

   Item 11.  Executive Compensation                                    39

   Item 12.  Security Ownership of Certain Beneficial Owners
             and Management and Related Stockholder Matters            40

   Item 13.  Certain Relationships and Related Transactions,
             and Director Independence                                 40

   Item 14.  Principal Accounting Fees and Services                    40

PART IV
   Item 15.  Exhibits and Financial Statement Schedules                40

SIGNATURES                                                             41

                                       2

                                    PART I

                               ITEM 1.  BUSINESS


OVERVIEW

TECHNE Corporation was incorporated on July 17, 1981 in the state of
Minnesota.  TECHNE Corporation and Subsidiaries (the Company) are engaged in
the development, manufacture and sale of biotechnology products and
hematology calibrators and controls. These activities are conducted
domestically through its wholly-owned subsidiaries, Research and Diagnostic
Systems, Inc. (R&D Systems) and BiosPacific, Inc. (BiosPacific).  The Company
distributes biotechnology products in Europe through its wholly-owned U.K.
subsidiary, R&D Systems Europe Ltd. (R&D Europe). R&D Europe has a sales
subsidiary, R&D Systems GmbH, in Germany and a sales office in France.  The
Company distributes biotechnology products in China through its wholly-owned
subsidiary, R&D Systems China, Co. Ltd. (R&D China).

The Company has three reportable operating segments based on the nature of
products and geographic location: biotechnology, R&D Europe and hematology.
The biotechnology segment consists of R&D Systems' Biotechnology Division,
BiosPacific and R&D China, which develop, manufacture and sell biotechnology
research and diagnostic products world-wide. R&D Europe distributes
Biotechnology Division products throughout Europe. The hematology segment
develops and manufactures hematology controls and calibrators for sale world-
wide.


THE MARKET

The Company manufactures and sells products for the biotechnology research
and clinical diagnostics market (cytokines, assays and related products) and
the clinical diagnostics market (hematology controls and calibrators).  In
fiscal 2009, 2008 and 2007, net sales from the Company's biotechnology
segment were 66%, 64% and 66%, respectively, of consolidated net sales.  Net
sales from the Company's R&D Europe segment were 27%, 30% and 27%,
respectively, of consolidated net sales for same periods.  The Company's
hematology segment net sales were 7%, 6% and 7% of consolidated net sales for
fiscal 2009, 2008 and 2007, respectively. Financial information relating to
the Company's operating segments is incorporated herein by reference to Note
L to the Consolidated Financial Statements included in Item 8 of this Annual
Report on Form 10-K.


                   Biotechnology and R&D Europe Segments

The Company, through its biotechnology and R&D Europe segments, is the
world's leading supplier of cytokines and cytokine-related reagents to the
biotechnology research community.  These valuable proteins are produced in
minute amounts by different types of cells and can be isolated from these
cells or synthesized through recombinant DNA technology.   Currently nearly
all of the Company's cytokines are produced by recombinant DNA technology.

The growing interest by academic and commercial researchers in cytokines is
largely due to the profound effect that a tiny amount of a cytokine can have
on cells and tissues of the body.  Cytokines are intercellular messengers.
They act as signals by interacting with specific receptors on the affected
cells and trigger events that can lead to significant changes in a cell,
tissue or organism.  For example, cytokines can signal a cell to acquire the
features necessary for it to take on a more specialized task.  Another
example of cytokine action is the key role played in stimulating cells
surrounding a wound to grow and divide, to attract migratory cells to the
injury site and mediate the healing process.

The Company also has enzymes and intracellular cell signaling reagents in its
product portfolio.   Enzymes are biological catalysts that accelerate a
variety of chemical reactions in cells.  Most enzymes, including proteases,
kinases and phosphatases, are proteins that modify the structure and function
of other proteins.  Many enzymes have the potential to serve as predictive
biomarkers and therapeutic targets for a variety of diseases including
cancer, Alzheimer's, arthritis, autoimmunity, diabetes, hypertension,
obesity, AIDS and SARS.

                                   3

The Company markets cytokine assay kits under the tradename Quantikine.
These kits are used by researchers to quantify the level of a specific
cytokine in biological fluids, such as serum, plasma, or urine.  Cytokine
quantification is an integral component of basic research as well as in the
pharmaceutical discovery and development process.

The Company currently manufactures and sells nearly 14,000 biotechnology
products.

Biotechnology Products

Cytokines and Enzymes.  Cytokines, extracted from natural sources or
produced using recombinant DNA technology, are manufactured to the highest
purity.  Enzymes and related factors including enzyme substrates and
inhibitors are highly purified and characterized to ensure the highest
biological activity.

Antibodies.  Antibodies are proteins produced by the immune system of an
animal that specifically recognize and bind to target molecules.  The
Company's polyclonal antibodies are produced in animals (primarily goats
and sheep) and purified from the animals' blood.  Monoclonal antibodies
are made by immortalized cell lines derived from the antibody producing
cells of a rodent.  Monoclonal antibodies are secreted from these cell
lines during cell culture and purified from the cell culture medium.

Assay Kits.  This product line includes human and animal Quantikine kits
which allow research scientists to quantify the amount of a specific
analyte (cytokine, adhesion molecule, enzyme, etc.)  in a sample of serum
or other biological fluids.

Clinical Diagnostic Kits.  The Company has received Food and Drug
Administration (FDA) marketing clearance for its erythropoietin (EPO),
transferrin receptor (TfR) and Beta2-microglobulin immunoassays for use as
in vitro diagnostic kits.

Flow Cytometry Products.  This product line includes fluorochrome labeled
antibodies and Fluorokine kits, which are used to measure the presence or
absence of cell surface receptors for specific cytokines by flow
cytometry.

Intracellular Cell Signaling Products.  This diverse product line provides
reagents to study apoptosis (programmed cell death) and to elucidate
signal transduction pathways within cells.  Products include antibodies,
phospho-specific antibodies, antibody protein arrays, active caspases,
kinases, and phosphatases, and ELISA assays to quantitate and measure the
activity of apoptotic and signaling molecules.


                           Hematology Segment

Hematology controls and calibrators are products composed of the various
cellular components of blood which have been stabilized.  Proper diagnosis of
many illnesses requires a thorough and accurate analysis of a patient's blood
cells, which is usually done with automated or semi-automated hematology
instruments.  Controls and calibrators ensure that these instruments are
performing accurately and reliably.

Blood is composed of plasma, the fluid portion of which is mainly water, and
blood cells, which are suspended in the plasma.  There are three basic types
of blood cells:  red cells, white cells and platelets.   Hemoglobin in red
cells transports oxygen from the lungs throughout the body.  White cells
defend the body against foreign invaders.  Platelets serve as a "plug" to
stem blood flow at the site of an injury by initiating a complex series of
biochemical reactions that lead to the formation of a clot.

These fundamental blood components (red cells, white cells and platelets)
differ widely in size and concentration.  As noted above, hematology controls
are used in automated and semi-automated cell counting analyzers to make sure
these instruments are counting blood cells in patient samples accurately.
One of the most frequently performed laboratory tests on a blood sample is a
complete blood count (CBC).  Doctors use this test in disease screening and
diagnosis.  More than one billion of these tests are done world-wide every
year, the great majority with cell counting instruments.  In most
laboratories, the CBC consists of the white cell count, the red cell count,
the hemoglobin reading, and the hematocrit reading (the percent of red cells
in a volume of whole blood after it has been centrifuged).  Also included in
a CBC test is the differential, which numbers and classifies the different
types of white cells.

                                   4

These and other characteristics or "parameters" of a blood sample can be
measured by automated or semi-automated cell counters.  The number of
parameters measurable in a blood control product depends on the type and
sophistication of the instrument for which the control is designed.
Ordinarily, a hematology control is used once to several times a day to make
sure the instrument is reading accurately.  In addition, most instruments
need to be calibrated periodically.  Hematology calibrators are similar to
controls, but go through additional testing to ensure that the calibration
values assigned are within tight specifications and can be used to calibrate
the instrument.

The Company offers a wide range of hematology controls and calibrators for
both impedance and laser type cell counters.  The Company believes its
products have improved stability and versatility and a longer shelf life than
most of those of its competitors.  Hematology control products are also
supplied for use as proficiency testing materials by laboratory certifying
authorities of a number of states and countries.

Hematology Products

Whole Blood CBC Controls/Calibrators.  The Company currently produces
controls and calibrators for the following major brands of analyzers:
Abbott Diagnostics, Beckman Coulter, Siemens Healthcare Diagnostics,
HORIBA Medical and Sysmex.

Linearity and Reportable Range Controls.  These products provide a means
of assessing the linearity of hematology analyzers for white blood cells,
red blood cells, platelets and reticulocytes (immature red blood cells).
Because hematology analyzers are single-point calibrated, these products
allow users to determine and validate the reportable range of an
instrument.

Whole Blood Reticulocyte Controls.  These controls are designed for manual
and automated counting of reticulocytes (immature red blood cells).

Whole Blood Flow Cytometry Controls.  These products are controls for flow
cytometry instruments.  These instruments are used to identify and
quantify white blood cells by their surface markers.

Whole Blood Glucose/Hemoglobin Control.  This product is designed to
monitor instruments which measure glucose and hemoglobin in whole blood.

Erythrocyte Sedimentation Rate Control.  This product is designed to
monitor erythrocyte (red blood cell) sedimentation rate tests.

Multi-Purpose Platelet Reference Controls.  These products, Platelet-Trol
II and Platelet-Trol Extended, are designed for use by automated and semi-
automated analyzers which monitor platelet levels.

Original Equipment Manufacturer (OEM) agreements represent the largest market
for hematology controls and calibrators made by the Company.  In fiscal 2009,
2008 and 2007, OEM contracts accounted for $7.6 million, $7.0 million and
$6.0 million, respectively, or 3% of total consolidated net sales in each
fiscal year.


PRODUCTS UNDER DEVELOPMENT

The Company is engaged in ongoing research and development in all of its
major product lines:  controls and calibrators (hematology) and cytokines,
antibodies, assays and related products (biotechnology).  The Company
believes that its future success depends, to a large extent, on its ability
to keep pace with changing technologies and markets.  At the same time, the
Company continues to examine its production processes to ensure high quality
and maximum efficiency.

                                    5

In fiscal 2009, the Company introduced over 1,400 new biotechnology products.
The Company is planning to release new cytokines, antibodies and cytokine
assay kits in the coming year.  All of these products will be for research
purposes only and therefore do not require FDA clearance.  The Company also
developed several new hematology control products in fiscal 2009 and is
continuously working on product improvements and enhancements.  However,
there is no assurance that any of the products in the research and
development phase can be successfully completed or, if completed, can be
successfully introduced into the marketplace.

                                           Year Ended June 30,
                                            2009    2008    2007
                                          ------- ------- -------
     Research expense (in thousands):
     Biotechnology expenses               $22,792 $21,632 $19,333
     Hematology expenses                      772     762     749
                                          ------- ------- -------
                                          $23,564 $22,394 $20,082
                                          ======= ======= =======
     Percent of net sales                    8.9%    8.7%    9.0%


INVESTMENTS

Since fiscal 1998, the Company has invested in the preferred stock of
ChemoCentryx, Inc. (CCX).  CCX is a technology and drug development company
working in the area of chemokines.  Chemokines are cytokines which regulate
the trafficking patterns of leukocytes, the effector cells of the human
immune system.  In conjunction with the investment and joint research
efforts, the Company obtained exclusive worldwide research and diagnostic
marketing rights to chemokine proteins, antibodies and receptors discovered
or developed by CCX.  The Company holds a 16.8% ownership percentage in CCX.
The Company has evaluated the cost versus equity method of accounting for its
investment in CCX and determined that it does not have the ability to
exercise significant influence over the operating and financial policies of
CCX and therefore, accounts for its investment on a cost basis. The Company's
net investment in CCX at both June 30, 2009 and 2008 was $14.3 million.

In fiscal 2004, the Company purchased a 10% interest in Hemerus Medical, LLC
(Hemerus) for $3.0 million. In fiscal years 2006 through 2008, the Company
invested an additional $1.8 million in Hemerus, increasing its ownership
percentage to 19%.  In fiscal 2009, as a result of Hemerus repurchasing and
retiring a third party's membership units, the Company's ownership percentage
increased to 22%. Hemerus was formed in March 2001 and has acquired and is
developing technology for the separation of leukocytes from blood and blood
components. Hemerus owns two patents, has several patent applications pending
and has received FDA clearance to market its products in the U.S. In parallel
with this investment, R&D Systems entered into a Joint Research Agreement
with Hemerus. The research involves joint projects to explore the use of
Hemerus' filter technology to applications within R&D Systems' Hematology and
Biotechnology Divisions. Such applications, if any, may have commercial
potential in other laboratory environments. The Company accounts for its
investment in Hemerus under the equity method of accounting as Hemerus is a
limited liability company.  The Company's net investment in Hemerus was $2.2
million and $2.9 million at June 30, 2009 and 2008, respectively.

In fiscal 2007, the Company invested $7.2 million for an 18% equity interest
in Nephromics LLC (Nephromics).  Nephromics has licensed technology related
to the diagnosis of preeclampsia and has sublicensed the technology to
several major diagnostic companies for the development of diagnostic assays.
In fiscal 2008, Nephromics issued additional membership units which reduced
the Company's ownership percentage to 16.8%.  In fiscal 2009, the Company
received a $1.3 million distribution from Nephromics.  The Company accounts
for its investment in Nephromics under the equity method of accounting as
Nephromics is a limited liability company. Its net investment in Nephromics
was $4.5 million and $6.2 million at June 30, 2009 and 2008, respectively.

In fiscal 2008, the Company invested $1.4 million for a 19% interest in
ACTGen, a development stage biotechnology company located in Japan.  ACTGen
has intellectual property related to the identification and expression of
molecules. The technology covers techniques to identify cellular molecules
which are destined to be secreted into tissue fluids or shuttled to the cell
membrane. Such molecules represent an ideal target as disease biomarkers.
The Company's net investment in ACTGen was $1.2 million and $1.3 million at
June 30, 2009 and 2008, respectively.

                                     6


GOVERNMENT REGULATION

All manufacturers of hematology controls and calibrators are regulated under
the Federal Food, Drug and Cosmetic Act, as amended.  All of the Company's
hematology control products are classified as "In Vitro Diagnostic Products"
by the FDA.  The entire hematology control manufacturing process, from
receipt of raw materials to the monitoring of control products through their
expiration date, is strictly regulated and documented.  FDA inspectors make
periodic site inspections of the Company's hematology control operations and
facilities.  Hematology control manufacturing must comply with Quality System
Regulations (QSR) as set forth in the FDA's regulations governing medical
devices.

Three of the Company's immunoassay kits, EPO, TfR and Beta2-microglobulin,
have FDA clearance to be sold for clinical diagnostic use.  The Company must
comply with QSR for the manufacture of these kits.  Biotechnology products
manufactured in the United States and sold for use in the research market do
not require FDA clearance.

Some of the Company's research groups use small amounts of radioactive
materials in the form of radioisotopes in their product development
activities.  Thus, the Company is subject to regulation and inspection by the
Minnesota Department of Health and has been granted a license through August
2010.  The license is renewable annually.  The Company has had no
difficulties in renewing this license in prior years and has no reason to
believe it will not be renewed in the future.  If, however, the license was
not renewed, it would have minimal effect on the Company's business since
there are other technologies the research groups could use to replace the use
of radioisotopes.


AVAILABILITY OF RAW MATERIALS

The primary raw material for the Company's hematology controls is whole
blood.  Human blood is purchased from commercial blood banks while porcine
and bovine blood is purchased from nearby meat processing plants.  After raw
blood is received, it is separated into its components, processed and
stabilized.  Although the cost of human blood has increased due to the
requirement that it be tested for certain diseases and pathogens, the higher
cost of these materials has not had a serious adverse effect on the Company's
business.  The Company does not perform its own pathogen testing as the
supplier tests all human blood purchased.  R&D Systems' Biotechnology
Division develops and manufactures the majority of its cytokines from
synthetic genes developed in-house, thus significantly reducing its reliance
on outside resources.  R&D Systems typically has several outside sources for
all critical raw materials necessary for the manufacture of products.


PATENTS AND TRADEMARKS

R&D Systems owns patent protection for certain hematology controls which
extend for various periods depending on the date of the patent application or
patent grant.  R&D Systems may seek patent protection for new or existing
products it manufactures.  No assurance can be given that any such patent
protection will be obtained.  No assurance can be given that R&D Systems'
products do not infringe upon patents or proprietary rights owned or claimed
by others, particularly for genetically engineered products. R&D Systems has
not conducted a patent infringement study for each of its products.  See Item
3. "Legal Proceedings" in this Annual Report on Form 10-K.

R&D Systems and R&D Europe have a number of licensing agreements with patent
holders under which they have the non-exclusive right to use patented
technology or the non-exclusive right to manufacture and sell certain
patented cytokine and cytokine related products to the research market.  For
fiscal 2009, 2008 and 2007, total royalties expensed under these licenses
were approximately $3.2 million, $3.0 million and $2.6 million, respectively.

R&D Systems has obtained federal trademark registration for certain of its
hematology controls and biotechnology product groups which extend for various
periods depending upon the date of the trademark grant.  R&D Systems believes
it has common law trademark rights to certain marks in addition to those
which it has registered.

                                   7

SEASONALITY OF BUSINESS

Products marketed by R&D Systems and, particularly R&D Europe, historically
experience a slowing of sales or of the rate of sales growth during the
summer months.  R&D Systems also usually experiences a slowing of sales
during the Thanksgiving to New Year holiday period.  The Company believes
this slowing is a result of vacation schedules in Europe and Japan and of
academic schedules in the United States.


SIGNIFICANT CUSTOMERS

No single customer accounted for more than 10% of total revenues during
fiscal 2009, 2008 or 2007.


BACKLOG

There was no significant backlog of orders for the Company's products as of
the date of this Annual Report on Form 10-K or as of a comparable date for
fiscal 2008.  The majority of the Company's biotechnology products are
shipped within one day of receipt of the customers' orders.  The majority of
hematology products are shipped based on a preset, recurring schedule.


COMPETITION

The worldwide market for cytokines and research diagnostic assay kits is
being supplied by a number of biotechnology companies, including GE
Healthcare Life Sciences, BD Biosciences, EMD Biosciences, Inc., Life
Technologies Corporation, Millipore Corporation, PeproTech, Inc., Santa Cruz
Biotechnology, Inc., Abcam plc., Sigma-Aldrich Corporation and Thermo Fisher
Scientific, Inc..  R&D Systems believes that it is the leading worldwide
supplier of cytokine related products in the research marketplace.  R&D
Systems believes that the expanding line of its products, their recognized
quality, and the growing demand for these rare and versatile proteins,
antibodies and assay kits, will allow the Company to remain competitive in
the growing biotechnology research and diagnostic market.

Competition is intense in the hematology control business.  The first control
products were developed in response to the rapid advances in electronic
instrumentation used in hospital and clinical laboratories for blood cell
counting.  Historically, most of the instrument manufacturing companies made
controls for use in their own instruments.  With rapid expansion of the
instrument market, however, a need for more versatile controls enabled non-
instrument manufacturers to gain a foothold.  Today the market is comprised
of manufacturers of laboratory reagents, chemicals and coagulation products
and independent control manufacturers in addition to instrument
manufacturers.  The principal hematology control competitors of R&D Systems'
retail products are Abbott Diagnostics, Beckman Coulter, Inc., Bio-Rad
Laboratories, Inc., Streck Laboratories, Inc., Siemens Healthcare Diagnostics
Inc. and Sysmex Corporation.  R&D Systems believes it is the third largest
supplier of hematology controls in the marketplace behind Beckman Coulter,
Inc. and Streck Laboratories, Inc.


EMPLOYEES

Through its subsidiaries, the Company employed 687 full-time and 59 part-time
employees as of June 30, 2009, as follows:

                                     Full-time  Part-time
                                     ---------  ---------
     R&D Systems                           615         36
     R&D Europe                             53         20
     BiosPacific                             7          0
     R&D China                              12          3
                                           ---        ---
                                           687         59
                                           ===        ===

Included in R&D Europe employees are 8 full-time and 4 part-time employees at
R&D Europe's sales subsidiary in Germany.

                                       8


ENVIRONMENT

Compliance with federal, state and local environmental protection laws in the
United States, United Kingdom, Germany and China had no material effect on
the Company in fiscal 2009.


GEOGRAPHIC AREA FINANICAL INFORMATION

Following is financial information relating to geographic areas (in
thousands):
                                           Year Ended June 30,
                                         2009     2008     2007
                                       -------- -------- --------
     Net sales
      United States                    $147,271 $141,443 $127,695
      Europe                             79,381   81,628   66,492
      Other areas                        37,304   34,349   29,295
                                       -------- -------- --------
     Total net sales                   $263,956 $257,420 $223,482
                                       ======== ======== ========

                                             As of June 30,
                                         2009     2008     2007
                                       -------- -------- --------
     Long-lived assets
      United States                    $ 93,571 $ 93,612 $ 90,965
      Europe                              7,214    8,992      867
      Other areas                            98      112       47
                                       -------- -------- --------
     Total long-lived assets           $100,883 $102,716 $ 91,879
                                       ======== ======== ========

Net sales are attributed to countries based on the location of the
customer/distributor. Long-lived assets are comprised of land, buildings and
improvements equipment, and other assets, net of depreciation and
amortization.  See the description of risks associated with the Company's
foreign subsidiaries in Item 1A of this Annual Report on Form 10-K.


INVESTOR INFORMATION

The Company is subject to the information requirements of the Securities
Exchange Act of 1934. Therefore, the Company files periodic reports, proxy
statements, and other information with the Securities and Exchange Commission
(SEC). Such reports, proxy statements, and other information may be obtained
by visiting the Public Reference Room of the SEC at 100 F Street, N.E., Room
1580, Washington, DC 20549 or by calling the SEC at 1-800-SEC-0330. In
addition, the SEC maintains an internet site (http://www.sec.gov) that
contains reports, proxy and information statements, and other information
regarding issuers that file electronically.

Financial and other information about the Company is available on its
internet site (http://www.techne-corp.com). The Company makes available on
its internet site, copies of its annual report on Form 10-K, quarterly
reports on Form 10-Q, current reports on Form 8-K, and amendments to those
reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange
Act as soon as reasonably practicable after filing such material
electronically or otherwise furnishing it to the SEC.

                                     9


                          ITEM 1A.  RISK FACTORS

Statements in this Annual Report on Form 10-K, and elsewhere, that are
forward-looking involve risks and uncertainties which may affect the
Company's actual results of operations. Certain of these risks and
uncertainties which have affected and, in the future, could affect the
Company's actual results are discussed below.  The Company undertakes no
obligation to update or revise any forward-looking statements made due to new
information or future events. Investors are cautioned not to place undue
emphasis on these statements.

The following risk factors should be read carefully in connection with
evaluation of the Company's business and any forward-looking statements made
in this Annual Report on Form 10-K and elsewhere.  Any of the following risks
could materially adversely affect the Company's business, operating results
and financial condition.

The Company's revenues are significantly dependent on sales to research
scientists in the private and public sector, and a decrease in research
spending could negatively impact the Company's revenues.

  The Company's biotechnology products are sold primarily to research
  scientists at pharmaceutical and biotechnology companies and at
  university and government research institutions. Changes in spending on
  research by such companies and in the funding that such universities and
  institutions receive from government agencies, including the National
  Institutes of Health, affects the revenues and earnings of the Company. The
  Company carries essentially no backlog of orders and changes in the level
  of orders received and filled daily can cause fluctuations in quarterly
  revenues and earnings.

The Company operates in rapidly changing and intensely competitive
industries, and may not be able to keep pace with its competitors.

  The biotechnology industry is subject to rapid and significant
  technological change. While the hematology controls industry historically
  has been less subject to rapid change, it too is evolving and is impacted
  significantly by changes in the automated testing equipment offered by
  instrument manufacturers. Competitors of the Company are numerous and
  include, among others, specialized biotechnology firms, medical laboratory
  instrument and equipment manufacturers and disposables suppliers, major
  pharmaceutical companies, universities and other research institutions.
  There can be no assurance that the Company's competitors will not succeed
  in developing technologies and products that are more effective than any
  which have been or are being developed by the Company or that would render
  the Company's technologies and products obsolete or noncompetitive.

The Company is significantly dependent on sales made through foreign
subsidiaries, and revenues and earnings could be negatively impacted by
changes in exchange rates.

  Approximately 29% of the Company's sales are made through its foreign
  subsidiaries, which make their sales in foreign currencies. The Company's
  revenues and earnings are, therefore, affected by fluctuations in currency
  exchange rates.  Any adverse movement in foreign currency rates could
  negatively affect the CompanY's revenues and earnings.

The Company's business is subject to governmental regulation, which may have
the effect of delaying or impeding the release of certain of its products.

  Ongoing research and development activities and the production and
  marketing of certain of the Company's products are subject to regulation by
  numerous governmental authorities in the United States and other countries.
  The approval process applicable to clinical diagnostic products of the type
  that may be developed by the Company may take a year or more. Delays in
  obtaining approvals could adversely affect the marketing of new products
  developed by the Company, and negatively affect the Company's revenues.

                                     10

The Company is dependent on maintaining our intellectual property rights, and
cannot guarantee that it will not be subject to intellectual property
litigation in the future.

  The Company's success will depend, in part, on its ability to obtain
  licenses and patents, maintain trade secret protection and operate without
  infringing the proprietary rights of others. The Company has obtained and
  is negotiating licenses to produce a number of cytokines and related
  products claimed to be owned by others. Since the Company has not conducted
  a patent infringement study for each of its products, it is possible that
  products of the Company may unintentionally infringe patents of third
  parties or that the Company may have to alter its products or processes,
  pay licensing fees or cease certain activities because of patent rights of
  third parties, thereby causing additional unexpected costs and delays which
  may have a material adverse effect on the Company.

The Company's success will be dependent on recruiting and retaining highly
qualified personnel, the loss of whom could adversely affect its operations.

  Recruiting and retaining qualified scientific and production personnel to
  perform research and development work and product manufacturing are
  critical to the Company's success. The Company's anticipated growth and its
  expected expansion into areas and activities requiring additional expertise
  will require the addition of new personnel and the development of
  additional expertise by existing personnel. The failure to attract and
  retain such personnel could adversely affect the Company's business.

The Company may incur losses as a result of its investments in other
companies, the success of which is largely out of the Company's control.

  The Company's expansion strategies, which include internal development of
  new products, collaborations, investments in joint ventures and companies
  developing new products related to the Company's business, and the
  acquisition of companies for new products, technologies and additional
  customer base, carry risks that objectives will not be achieved and future
  earnings will be adversely affected. Development stage companies of the
  type the Company has invested in are dependent on their ability to raise
  additional funds to continue research and development efforts and on
  receiving patent protection and/or FDA clearance to market their products.

  The Company uses the equity method of accounting for certain of these
  investments and records a percentage of the losses of these companies as
  losses of the Company. The Company may not have control of the expense
  levels of such companies and their losses may be greater than those
  anticipated by the Company. Additionally, if funding were unavailable or
  inadequate to fund operations of these companies or if patent protection or
  FDA clearance were not received by them, the Company may determine that its
  investment in one or more of these unconsolidated companies is "other than
  temporarily" impaired, and the Company could write off all or a portion of
  its investment.

The Company may be unsuccessful in expanding into China and establishing
adequate distribution channels for our products in China.

  The Company established a subsidiary in China in late fiscal 2007, to
  provide warehousing, marketing, sales and technical services for the
  growing Chinese market. The Company's ability to recover its investment is
  dependent upon its ability to retain current third-party distributors in
  China and expand its market share in the region.

                                  11


                  ITEM 1B.  UNRESOLVED STAFF COMMENTS

There are no unresolved staff comments as of the date of this report.


                         ITEM 2.  PROPERTIES

The Company owns the facilities that its headquarters and R&D Systems
subsidiary occupy in Minneapolis, Minnesota.  The R&D Systems main complex
includes approximately 500,000 square feet of administrative, research and
manufacturing space in several adjoining buildings.

The Company owns two additional properties adjacent to its main complex.  The
Company has renovated the first property and is currently leasing or plans to
lease approximately 70% of the 176,000 square foot building as retail and
office space and use the remainder as warehouse and storage space.  A portion
of the second property is currently leased to third parties and the Company
plans to continue to lease out the building until the space is needed for its
own operations.

The Company owns approximately 649 acres of farmland, including buildings, in
southeast Minnesota.  A portion of the land and buildings are being leased to
third parties as cropland and for a dairy operation. The remaining property
is used by the Company to house goats and sheep for polyclonal antibody
production.

Rental income from the above properties was $481,000, $404,000 and $686,000
in fiscal 2009, 2008 and 2007, respectively.

In fiscal 2008, the Company purchased the 17,000 square foot facility it had
been leasing for its R&D Europe operations in Abingdon, England for $8.3
million.

The Company leases the following facilities:

Company       Location                                Type      Square Feet
-----------   -------------------------------   --------------- -----------
R&D GmbH      Wiesbaden-Nordenstadt, Germany      Office space     2,300
BiosPacific   Emeryville, California              Office space     3,500
R&D China     Shanghai, China                   Office/warehouse   4,500

The Company believes the owned and leased property discussed above, are
adequate to meet its occupancy needs in the foreseeable future.


                        ITEM 3.  LEGAL PROCEEDINGS

On June 29, 2006, Streck Laboratories, Inc. (Streck) filed a Complaint
against the Company and its subsidiary, R&D Systems, in the United States
District Court for the District of Nebraska.  The Complaint alleges patent
infringement involving certain patents issued to Streck relating to the
addition of reticulocytes to hematology controls.  Streck is seeking a
reasonable royalty on sales of integrated hematology controls containing
reticulocytes.  The Company has reason to believe that R&D Systems and
not Streck, first invented the inventions claimed in these patents and
several other patents issued to Streck.  An interference was declared by
the U.S. Patent and Trademark Office on March 21, 2007 to determine priority
of invention between a patent application filed by R&D and the Streck
patents, including each of the patents involved in the lawsuit.  The Company
does not believe the resolution of the above proceedings will have a material
impact on the Company's consolidated financial statements.

                                      12


        ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

No matter was submitted to a vote of the Company's security holders during
the fourth quarter of the Company's 2009 fiscal year.

                       Executive Officers of the Company

(a)  The names, ages and positions of each executive officer of the Company
are as follows:

Name              Age  Position                               Officer Since
----------------- ---  -------------------------------------- -------------
Thomas E. Oland    68  Chairman of the Board,                     1985
                       President, Treasurer,
                       Chief Executive and Director

Marcel Veronneau   55  Vice President, Hematology Operations      1995

Gregory J. Melsen  57  Vice President of Finance and Chief        2004
                       Financial Officer

The term of office of each executive officer is annual or until a successor
is elected.  There are no arrangements or understandings among any of the
executive officers and any other person (not an officer or director acting as
such) pursuant to which any of the executive officers was selected as an
officer of the Company.

(b)  The business experience of the executive officers during the past five
years is as follows:

Thomas E. Oland has been Chairman of the Board, President, Treasurer and
Chief Executive Officer of the Company since December 1985.  Mr. Oland also
served as Chief Financial Officer of the Company from December 1985 to
December 2004.

Marcel Veronneau was appointed a Vice President of the Company in March 1995.
Prior thereto, he served as Director of Operations for R&D Systems'
Hematology Division since joining the Company in 1993.

Gregory J. Melsen joined the Company in December 2004 as Vice President of
Finance and Chief Financial Officer.  From 2002 to 2004, he served as Vice
President and Chief Financial Officer of PLATO Learning, Inc., a publicly
held provider of computer-based and e-learning educational software.  From
1999 to 2001, he held the position of Vice President of Finance, Treasurer
and Chief Financial Officer of American Medical Systems Holdings, Inc., a
publicly traded medical device manufacturer.  Previously, Mr. Melsen was
employed by a public accounting firm for 19 years, including nine years as an
audit partner.


                                     PART II

   ITEM 5.  MARKET FOR THE REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER
               MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

The following table sets forth the repurchases of Company Common Stock for
the quarter ended June 30, 2009.

                                                          Maximum Approximate
                                                          Dollar Value
                                       Total Number of    of Shares
                                       Shares Purchased   that May Yet
               Total Number  Average   as Part of         Be Purchased
               Of Shares    Price Paid Publicly Announced Under the Plans
Period         Purchased    Per Share  Plans or Programs  of Programs
-------------- ------------ ---------- ------------------ -------------------
4/1/09-4/30/09     33,183      53.33         33,183         $67.5 million
5/1/09-5/31/09          0          0              0         $67.5 million
6/1/09-6/30/09          0          0              0         $67.5 million

In November 2007, the Company authorized a plan for the repurchase and
retirement of up to $150 million of its common stock.  In April 2009, the
Company authorized an additional $60 million for its stock repurchase plan.
The plan does not have an expiration date.

                                     13


The Company's common stock trades on The NASDAQ Stock Market under the symbol
"TECH." The following table sets forth for the periods indicated the range of
the closing price per share for the Company as reported by Nasdaq National
Market.
                                   Fiscal 2009 Price    Fiscal 2008 Price
                                   -----------------    -----------------
                                     High      Low        High      Low
                                    ------    ------     ------    ------
1st Quarter                         $81.90    $71.38     $66.38    $56.20
2nd Quarter                          74.34     60.54      69.90     61.66
3rd Quarter                          64.84     45.64      71.12     59.49
4th Quarter                          64.45     51.71      79.73     64.84


As of August 27, 2009, there were approximately 230 shareholders of record.
As of August 27, 2009, there were over 50,000 beneficial shareholders of the
Company's common stock. TECHNE Corporation paid three quarterly cash
dividends of $0.25 per share per quarter totaling $28.2 million in fiscal
2009.  Its Board of Directors periodically considers the payment of cash
dividends.

The following chart compares the cumulative total shareholder return on the
Company's Common Stock with the S&P Midcap 400 Index and the S&P 400
Biotechnology Index.  The comparison assumes $100 was invested on the last
trading day before July 1, 2004 in the Company's Common Stock and in each of
the foregoing indices and assumes reinvestment of dividends.

                 COMPARISION OF CUMULATIVE FIVE YEAR TOTAL RETURNS
                              INDEXED RETURNS

                                       Year Ending
Company/Index          June 2005 June 2006 June 2007 June 2008 June 2009
---------------------  --------- --------- --------- --------- ---------
Techne Corporation        105.66    117.19    131.67    178.11    148.76
S&P Midcap 400 Index      114.03    128.83    152.67    141.48    101.83
S&P 400 Biotechnology      93.86     95.63    100.32    130.03    126.35


                                       14


                         ITEM 6.  SELECTED FINANCIAL DATA

                  (dollars in thousands, except share and per share data)

                              2009      2008      2007    2006 (1)    2005
                            --------  --------  --------  --------  --------
Income and Share Data:
 Net sales                  $263,956  $257,420  $223,482  $202,617  $178,652
 Gross margin(2)               79.0%     79.5%     79.1%     77.4%     79.4%
 Selling, general and
  administrative expenses(2)   12.6%     14.3%     13.9%     13.6%     13.7%
 Research and development
  expenses(2)                   8.9%      8.7%      9.0%      9.3%     10.3%
 Operating income(2)           57.1%     56.1%     55.6%     53.6%     54.7%
 Earnings before
  income taxes(2)              58.9%     59.8%     57.7%     54.9%     55.9%
 Net earnings(2)               39.9%     40.2%     38.1%     36.2%     37.0%
 Net earnings               $105,242  $103,558  $ 85,111  $ 73,351  $ 66,132
 Diluted earnings per share $   2.78  $   2.64  $   2.15  $   1.85  $   1.62
 Average common and common
  equivalent shares -
  diluted (in thousands)      37,900    39,247    39,513    39,594    40,920
 Share price:
  High                      $  81.90  $  79.73  $  61.87  $  60.14  $  47.25
  Low                       $  45.64  $  56.20  $  45.63  $  46.40  $  33.11

Balance Sheet Data as
 of June 30:
 Cash, cash equivalents
  and short-term available-
  for-sale investments      $202,887  $206,345  $164,774  $108,846  $ 97,134
 Receivables                  31,153    33,332    30,966    25,078    23,722
 Inventories                  11,269     9,515     8,757     9,024     7,758
 Working capital             239,944   238,194   195,645   131,856   120,965
 Total assets                472,005   507,369   454,844   370,512   295,263
 Long-term debt, less
  current portion                 --        --        --    12,198    13,378

Cash Flow Data:
 Net cash provided by
  operating activities      $111,321  $115,317  $ 90,503  $ 85,589  $ 74,433
 Capital expenditures          6,556    16,365     8,076     4,603    11,410
 Cash dividends declared
  per common share(4)           0.75        --        --        --        --

Financial Ratios:
 Return on average equity      22.3%     22.4%     21.9%     24.1%     23.4%
 Return on average assets      21.5%     21.5%     20.6%     22.0%     21.3%
 Current ratio                  16.5      12.8      12.4       8.3       9.6
 Price to earnings ratio(3)       23        29        27        28        28

Employee Data as of June 30:
 Full-time employees             687       666       628       577       538

(1)  The Company acquired Fortron Bio Science, Inc. and BiosPacific, Inc. on
     July 1, 2005. Fortron Bio Science, Inc. was merged into R&D Systems on
     July 1, 2007.
(2)  As a percent of net sales.
(3)  Common share price at end of fiscal year (June 30) divided by the
     diluted earnings per share for the respective fiscal year.
(4)  The Company's Board of Directors periodically considers the payment of
     cash dividends.



                                      15



        ITEM 7.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS

Overview

TECHNE Corporation and Subsidiaries (the Company) are engaged in the
development, manufacture and sale of biotechnology products and hematology
calibrators and controls. These activities are conducted domestically through
its wholly-owned subsidiaries, Research and Diagnostic Systems, Inc. (R&D
Systems) and BiosPacific, Inc. (BiosPacific). The Company distributes
biotechnology products in Europe through its wholly-owned U.K. subsidiary,
R&D Systems Europe Ltd. (R&D Europe). R&D Europe has a sales subsidiary, R&D
Systems GmbH, in Germany and a sales office in France. The Company
distributes biotechnology products in China through its wholly-owned
subsidiary, R&D Systems China Co. Ltd. (R&D China).

The Company has three reportable operating segments based on the nature of
products and geographic location: biotechnology, R&D Europe and hematology.
The biotechnology segment consists of R&D Systems' Biotechnology Division,
BiosPacific and R&D China, which develop, manufacture and sell biotechnology
research and diagnostic products world-wide. R&D Europe distributes
Biotechnology Division products throughout Europe. The hematology segment
develops and manufactures hematology controls and calibrators for sale world-
wide.

Overall Results

Consolidated net sales and consolidated net earnings increased 2.5% and 1.6%,
respectively, for fiscal 2009 as compared to fiscal 2008. Consolidated net
sales and consolidated net earnings in fiscal 2009 were unfavorably affected
by the strengthening of the U.S. dollar as compared to foreign currencies.
The unfavorable impact on consolidated net sales in fiscal 2009 of the change
from the prior year in exchange rates used to convert sales in foreign
currencies (primarily British pounds sterling and euros) into U.S. dollars
was $8.6 million. The unfavorable impact on consolidated net earnings in
fiscal 2009 of the change from the prior year in exchange rates used to
convert foreign currency financial statements to U. S. dollars was $4.5
million.

Consolidated net sales and consolidated net earnings increased 15.2% and
21.7%, respectively, for fiscal 2008 as compared to fiscal 2007. The
favorable impact on consolidated net sales of the change from the prior year
in exchange rates used to convert sales in foreign currencies into U.S.
dollars was $6.4 million for fiscal 2008. The favorable impact on fiscal 2008
consolidated net earnings, as compared to fiscal 2007, from changes in
exchange rates used to convert foreign currency financial statements to U.S.
dollars was $1.3 million.

Results of Operations

Net sales (in thousands):
                                    Year Ended June 30,
                                  2009     2008     2007
                                -------- -------- --------
Biotechnology                   $173,913 $165,663 $146,614
R&D Europe                        72,541   75,735   61,766
Hematology                        17,502   16,022   15,102
                                -------- -------- --------
                                $263,956 $257,420 $223,482
                                ======== ======== ========

Consolidated net sales for fiscal 2009 were $264.0 million, an increase of
$6.5 million (2.5%) from fiscal 2008. Consolidated net sales were unfavorably
affected by the strength of the U.S. dollar as compared to foreign
currencies. Excluding the effect of changes in foreign currency exchange
rates, consolidated net sales increased 5.9% in fiscal 2009 from fiscal 2008.
Included in consolidated net sales in fiscal 2009 were $3.4 million of sales
of new biotechnology products, which had their first sale in fiscal 2009.

Biotechnology net sales in fiscal 2009 increased $8.3 million (5.0%) from
fiscal 2008. The majority of the biotechnology net sales increase was from
increased sales volume. Biotechnology net sales to international
distributors, pharmaceutical/biotechnology customers and academic customers
increased 6.2%, 4.7% and 3.9%, respectively, in fiscal 2009 from fiscal 2008.
R&D Europe net sales decreased $3.2 million (4.2%) in fiscal 2009. R&D Europe
net sales increased 7.2% for fiscal 2009 when measured at currency rates in
effect in fiscal 2008, mainly as a result of increased sales volume.
Hematology net sales in fiscal 2009 increased $1.5 million (9.2%) mainly due
to increased sales volume.

Consolidated net sales for fiscal 2008 were $257.4 million, an increase of
$33.9 million (15.2%) from fiscal 2007. Consolidated net sales were favorably
affected by the strength of foreign currencies as compared to the U.S. dollar.
Excluding the effect of changes in foreign currency exchange rates,
consolidated net sales increased 12.3% for fiscal 2008.

                                   16


Biotechnology net sales in fiscal 2008 increased $19.0 million (13.0%) from
fiscal 2007. The majority of the biotechnology net sales increase was from
increased sales volume, including shipments to diagnostic customers.
Increased sales to diagnostic customers positively affected biotechnology net
sales in fiscal 2008. Excluding sales to diagnostic customers, biotechnology
net sales increased 12.4% for fiscal 2008 as compared to the prior fiscal
year. Biotechnology net sales to international distributors,
pharmaceutical/biotechnology customers and academic customers increased
14.5%, 10.0% and 7.7%, respectively, in fiscal 2008 from fiscal 2007. R&D
Europe net sales increased $14.0 million (22.6%) in fiscal 2008. R&D Europe
net sales increased 12.2% for fiscal 2008 when measured at currency rates in
effect in fiscal 2007, mainly as a result of increased sales volume.
Hematology net sales in fiscal 2008 increased $920,000 (6.1%) mainly due to
increased sales volume.

Gross margins, as a percentage of net sales, were as follows:

                                    Year Ended June 30,
                                  2009     2008     2007
                                -------- -------- --------
Biotechnology                      79.3%    79.7%    79.9%
R&D Europe                         51.7%    56.5%    52.9%
Hematology                         45.9%    41.0%    43.1%
Consolidated                       79.0%    79.5%    79.1%

The decline in consolidated gross margins for fiscal 2009 was mainly the
result of lower gross margins at R&D Europe due to unfavorable exchange rates
between a stronger U.S. dollar and weaker euro and British pound sterling.
The improvement in consolidated gross margins for fiscal 2008 was the result
of higher gross margins at R&D Europe due to favorable exchange rates between
a weaker U.S. dollar and stronger euro and British pound sterling and the
result of higher sales growth in the Biotechnology Division as compared to
the sales growth in the lower margin Hematology Division.

Selling, general and administrative expenses decreased $3.6 million (9.7%)
and increased $5.8 million (18.6%) in fiscal 2009 and 2008, respectively.
Selling, general and administrative expenses were as follows (in thousands):

                                    Year Ended June 30,
                                  2009     2008     2007
                                -------- -------- --------
Biotechnology                   $ 19,035 $ 20,981 $ 17,460
R&D Europe                         7,967    9,667    8,756
Hematology                         1,463    2,003    1,690
Corporate                          4,699    4,064    3,059
                                -------- -------- --------
                                $ 33,164 $ 36,715 $ 30,965
                                ======== ======== ========

The change from the comparable fiscal year was primarily the result of the
following (in thousands):
                                    Increase/(Decrease)
                                      2009      2008
                                    --------  --------
Profit sharing and bonus expense    $ (3,759) $  1,997
Change in exchange rates to convert
  British pounds to U.S dollars       (2,024)      311
Legal fees                               786       837
Stock-based compensation expense        (249)      151
China selling, general and
  administrative expense                  91       552
Other, including annual wage,
  salary and benefit increases         1,604     1,902
                                    --------  --------
                                    $ (3,551) $  5,750
                                    ========  ========

The increase in legal fees in both fiscal years was due to ongoing patent
interference and infringement litigation. The decrease in stock-based
compensation expense in fiscal 2009 was mainly the result of decreased stock
volatility and interest rates used to calculate the fair value of options
granted. The increase in stock-based compensation expense in fiscal 2008 was
due to an increase in the number of stock options granted in fiscal 2008
compared to fiscal 2007 as a result of expanding the Board of Directors by
one member. Operations in China were established in late fiscal 2007,
resulting in increased expenses in fiscal 2008. The remainder of the change
in selling, general and administrative expenses for both fiscal years was
mainly the result of annual wage, salary and benefit increases.

Research and development expenses increased $1.2 million (5.2%) and $2.3
million (11.5%) in fiscal 2009 and 2008, respectively, as compared to prior-
year periods. The increases were primarily the result of the development of
new cytokines, antibodies and assay kits by R&D Systems' Biotechnology
Division. The Company introduced over 1,400 new biotechnology products in
both fiscal 2009 and 2008, respectively. Research and development expenses
are composed of the following (in thousands):

                                    Year Ended June 30,
                                  2009     2008     2007
                                -------- -------- --------
Biotechnology                   $ 22,792 $ 21,632 $ 19,333
Hematology                           772      762      749
                                -------- -------- --------
                                $ 23,564 $ 22,394 $ 20,082
                                ======== ======== ========

Amortization of intangible assets. Amortization expense was $1.0 million,
$1.1 million and $1.6 million in fiscal 2009, 2008 and 2007, respectively,
related mainly to technologies, trade names and customer relationships
acquired as a result of acquisitions in fiscal 2006. Intangible assets are
being amortized over lives of two to eight years.

                                 17


Interest income and expense. Interest income for fiscal 2009, 2008 and 2007
was $7.6 million, $12.2 million and $8.4 million, respectively. The decrease
in fiscal 2009 from the prior fiscal year was primarily the result of lower
rates of return on cash and available-for-sale investments. The increase in
fiscal 2008 from the prior year was due to higher cash and investment
balances and increased interest rates. Interest expense in fiscal 2007 was
$1.1 million. Through October 2006, the Company had a floating interest rate
mortgage note outstanding. Fiscal 2007 interest expense included $651,000 of
prepayment penalty and $78,000 of unamortized loan origination fees.

Other non-operating (expense) income consists mainly of foreign currency
transaction gains and losses, rental income, building expenses related to
rental property, the Company's share of losses by equity method investees as
follows (in thousands):

                                    Year Ended June 30,
                                   2009     2008     2007
                                 -------  -------  -------
Foreign currency (losses) gains  $   (34) $   807  $   (82)
Rental income                        481      404      686
Real estate taxes, depreciation
  and utilities                   (2,208)  (2,315)  (2,212)
Losses by equity method investees (1,290)  (1,140)    (966)
Impairment loss on marketable
  equity security                     --     (400)      --
                                 -------  -------  -------
                                 $(3,051) $(2,644) $(2,574)
                                 =======  =======  =======

The Company has two equity method of accounting investments in limited
liability companies, Hemerus Medical, LLC (Hemerus) and Nephromics, LLC
(Nephromics). See Cash flows from investing activities following.

The Company has an investment in the common stock of Immunicon Corporation
(IMMC), a publicly-held company primarily focused on the development and sale
of cancer diagnostic and research products and services. In June 2008, IMMC
filed for relief under Chapter 11 of the U.S. Bankruptcy Code and announced
the sale of substantially all of its assets. The Company determined that the
reduction in market value of its investment in IMMC was other-than-temporary
and wrote off its investment in fiscal 2008.

Income taxes for fiscal 2009, 2008 and 2007 were provided at rates of
approximately 32.3%, 32.7% and 34.0%, respectively, of consolidated earnings
before income taxes. The fiscal 2009 consolidated tax rate was positively
impacted by the renewal of the U.S. research and development credit. The
fiscal 2009 credit included $354,000 of credit for the January to June 2008
period. The fiscal 2008 consolidated tax rate was positively impacted by
changes in state apportionment percentages partially offset by the reduction
of the credit for research and development expenditures as a result of the
delayed renewal of the credit. U.S. federal taxes have been reduced by the
benefit for extraterritorial income through December 2006 and the
manufacturer's deduction provided for under the American Jobs Creation Act of
2004. Foreign income taxes have been provided at rates which approximate the
tax rates in the countries in which R&D Europe and R&D China operate. The
Company expects income tax rates for fiscal 2010 to range from 32% to 33%.


              QUARTERLY FINANCIAL INFORMATION (Unaudited)
                  (in thousands, except per share data)

                        Fiscal 2009                      Fiscal 2008
               First   Second  Third  Fourth   First   Second  Third  Fourth
                Qtr.    Qtr.    Qtr.    Qtr.    Qtr.    Qtr.    Qtr.    Qtr.
              ------- ------- ------- ------- ------- ------- ------- -------
Net sales     $69,324 $61,876 $67,866 $64,890 $57,987 $62,142 $69,522 $67,769
Gross margin   56,238  48,446  53,550  50,234  45,883  49,391  55,376  53,881
Earnings
 before taxes  42,948  34,150  40,841  37,424  34,753  35,581  42,992  40,505
Income taxes   14,355  10,528  13,200  12,038  11,681  11,942  13,402  13,248
Net earnings   28,593  23,622  27,641  25,386  23,072  23,639  29,590  27,257
Basic earnings
 per share       0.74    0.62    0.74    0.68    0.58    0.60    0.76    0.70
Diluted earnings
 per share       0.74    0.62    0.74    0.68    0.58    0.60    0.76    0.70


Liquidity and Capital Resources

Cash, cash equivalents and available-for-sale investments at June 30, 2009
were $264.8 million compared to $293.7 million at June 30, 2008. The Company
has an unsecured line of credit of $750,000 available at June 30, 2009 which
expires on October 31, 2009. The interest rate charged on the line of credit
is a floating rate at the one month London interbank offered rate (Libor)
plus 1.75%. There were no borrowings on the line in the current or prior
fiscal year.

Management of the Company expects to be able to meet its foreseeable future
cash and working capital requirements for operations, facility expansion and
capital additions through currently available funds, cash generated from
operations and maturities of available-for-sale investments.

Cash flows from operating activities

The Company generated cash from operations of $111.3 million, $115.3 million
and $90.5 million in fiscal 2009, 2008 and 2007, respectively. The decrease
in cash generated from operating activities in fiscal 2009 as compared to
fiscal 2008 was mainly the result of changes in operating assets and
liabilities offset by  increased net earnings of $1.7 million. In fiscal
2009, changes in operating assets and liabilities negatively impacted net
cash from operating activities by $4.1 million compared to a positive impact
in fiscal 2008 of $2.2 million as a result of changes in the timing of cash
payments and receipts.

                                 18

The increase in cash generated from operating activities in fiscal 2008 as
compared to fiscal 2007 was mainly the result of increased net earnings of
$18.4 million. In addition, changes in operating assets and liabilities in
fiscal 2008 positively impacted net cash from operating activities by $2.2
million compared to a negative impact in fiscal 2007 of $3.0 million as a
result of changes in the timing of cash payments and receipts.

Cash flows from investing activities

Capital additions consist of the following (in thousands):

                                    Year Ended June 30,
                                  2009     2008     2007
                                -------- -------- --------
Laboratory, manufacturing, and
  computer equipment            $  2,573 $  3,010 $  2,484
Construction/renovation            1,810    5,012    5,592
Property purchases                 2,173    8,343       --
                                -------- -------- --------
                                $  6,556 $ 16,365 $  8,076
                                ======== ======== ========

Included in fiscal 2009, 2008 and 2007 capital additions were approximately
$1.8 million, $4.3 million and $5.6 million, respectively, related to the
construction and renovation of laboratory space at the Company's Minneapolis
facility. The additional construction in fiscal 2008 was for the build out of
rental space for tenants. Construction was financed through available cash.
In fiscal 2009, the Company purchased two parking lots adjacent to its
Minneapolis facility for $2.2 million. In fiscal 2008, the Company purchased
the facility it had been leasing for its R&D Europe operations in Abingdon,
England for $8.3 million. The property purchases were financed through
available cash. Capital additions for laboratory, manufacturing and computer
equipment and space renovations planned for fiscal 2010 are expected to be
approximately $6.1 million and are expected to be financed through currently
available cash and cash generated from operations.

The Company's net (sales) purchases of available-for-sale investments in
fiscal 2009, 2008 and 2007 were ($26.5) million, $8.6 million and $23.8
million, respectively. The Company's investment policy is to place excess
cash in municipal and corporate bonds with the objective of obtaining the
highest possible return while minimizing risk and keeping the funds
accessible.

Additional investments in unconsolidated entities were as follows (in
thousands):

                                    Year Ended June 30,
                                  2009     2008     2007
                                -------- -------- --------
ACTGen, Inc.                    $     -- $  1,423 $     --
Hemerus                               --      300      700
Nephromics                            --       --    7,200
                                -------- -------- --------
                                $     -- $  1,723 $  7,900
                                ======== ======== ========

In fiscal 2008, the Company invested $1.4 million for a 19% interest in
ACTGen, Inc. (ACTGen), a development stage biotechnology company located in
Japan. The Company's net investment in ACTGen at June 30, 2009 and 2008 was
$1.2 million and $1.3 million, respectively.

In fiscal 2004, the Company purchased a 10% interest in Hemerus for $3
million. In fiscal years 2006 through 2008, the Company invested an
additional $1.75 million in Hemerus, increasing its ownership percentage to
19%. In fiscal 2009, as a result of Hemerus repurchasing and retiring a third
party's membership units, the Company's ownership percentage increased to
22%. The Company's net investment in Hemerus at June 30, 2009 and 2008 was
$2.2 million and $2.9 million, respectively. Hemerus' success is dependent on
its ability to market its products and to obtain adequate financing. The
Company has financial exposure to any losses of Hemerus to the extent of its
net investment.

In fiscal 2007, the Company invested $7.2 million for an 18% equity interest
in Nephromics. In fiscal 2008, Nephromics issued additional membership units
which reduced the Company's ownership percentage to 16.8%. In fiscal 2009,
the Company received a $1.3 million distribution from Nephromics. At June 30,
2009 and 2008, the Company's net investment in Nephromics was $4.5 million
and $6.2 million, respectively. The Company has financial exposure to any
losses of Nephromics to the extent of its net investment.

All of the above investments were financed through cash and equivalents on
hand.

Cash flows from financing activities

The Company received $953,000, $3.1 million and $2.7 million for the exercise
of options for 21,000, 86,000 and 78,000 shares of common stock in fiscal
2009, 2008 and 2007, respectively. The Company recognized excess tax benefits
from stock option exercises of $107,000, $524,000 and $534,000 in fiscal
2009, 2008 and 2007, respectively.

                                19


In fiscal 2009, 2008 and 2007, the Company purchased 22,637, 23,641 and
24,400 shares of common stock, respectively, for its employee Stock Bonus
Plans at a cost of $1.7 million, $1.5 million and $1.2 million, respectively.

In fiscal 2008, the Board of Directors authorized the Company to purchase up
to $150 million of its common stock and in fiscal 2009 increased the
authorization by $60 million. In fiscal 2009 and 2008, the Company purchased
and retired 1.4 million and 899,000 shares of common stock at market values
of $90.6 million and $58.7 million, respectively. Approximately $67.5 million
remained available for purchase under these authorizations at June 30, 2009.

In fiscal 2009, the Company paid three quarterly cash dividends of $0.25 per
share per quarter totaling $28.2 million. The Board of Directors plans to
periodically consider the payment of cash dividends.

In fiscal 2007, the Company paid off its mortgage debt. The total payment of
$13.8 million included a prepayment penalty of $651,000 which is included in
interest expense in the consolidated statement of earnings for fiscal 2007.

Contractual Obligations

The following table summarizes the Company's contractual obligations and
commercial commitments as of June 30, 2009 (in thousands):

                                        Payments Due by Period
                                    Less than   1-3    3-5    After
                            Total     1 Year   Years  Years  5 Years
                           -------  ---------  -----  -----  -------
Operating leases           $   867    $   332  $ 344  $ 174   $   17
Minimum royalty payments       166        166     --     --       --
                           -------  ---------  -----  -----  -------
                           $ 1,033    $   498  $ 344  $ 174   $   17
                           =======  =========  =====  =====  =======

The above table does not include any reserves for income taxes under the
Financial Accounting Standards Board (FASB) Interpretation No. 48, Accounting
for Uncertainty in Income Taxes - an interpretation of FASB Statement No.
109, as the Company is unable to reasonably predict the ultimate amount or
timing of settlement of any reserve for income taxes.

Off-balance Sheet Arrangements

The Company is not a party to any off-balance sheet transactions,
arrangements or obligations that have, or are reasonably likely to have, a
current or future material effect on the Company's financial condition,
changes in the financial condition, revenues or expenses, results of
operations, liquidity, capital expenditures or capital resources.

Critical Accounting Policies

Management's discussion and analysis of the Company's financial condition and
results of operations are based upon the Company's consolidated financial
statements, which have been prepared in accordance with accounting principles
generally accepted in the United States of America (U.S. GAAP). The
preparation of these financial statements requires management to make
estimates and judgments that affect the reported amounts of assets,
liabilities, revenues and expenses, and related disclosure of contingent
assets and liabilities. On an ongoing basis, management evaluates its
estimates. Management bases its estimates on historical experience and on
various other assumptions that are believed to be reasonable under the
circumstances, the results of which form the basis for making judgments about
the carrying values of assets and liabilities that are not readily apparent
from other sources. Actual results may differ from these estimates under
different assumptions or conditions.

The Company has identified the policies outlined below as critical to its
business operations and an understanding of results of operations. The
listing is not intended to be a comprehensive list of all accounting
policies.

Valuation of available-for-sale investments. The Company considers all of its
marketable securities available-for-sale and reports them at fair market
value. Fair market values are based on quoted market prices. Unrealized gains
and losses on available-for-sale investments are excluded from income, but
are included, net of taxes, in other comprehensive income. If an "other-than-
temporary" impairment is determined to exist, the difference between the
value of the investment recorded in the financial statements and the
Company's current estimate of fair value is recognized as a charge to
earnings in the period in which the impairment is determined. Net unrealized
gains on available-for-sale investments at June 30, 2009 were $874,000.

Valuation of inventory. Inventories are stated at the lower of cost (first-
in, first-out method) or market. The Company regularly reviews inventory on
hand for slow-moving and obsolete inventory, inventory not meeting quality
control standards and inventory subject to expiration.

                                 20

To meet strict customer quality standards, the Company has established a
highly controlled manufacturing process for proteins and antibodies. New
protein and antibody products require the initial manufacture of multiple
batches to determine if quality standards can be consistently met. In
addition, the Company will produce larger batches of established products
than current sales requirements due to economies of scale. The manufacturing
process for proteins and antibodies, therefore, has and will continue to
produce quantities in excess of forecasted usage. The Company values its
manufactured protein and antibody inventory based on a two-year forecast. The
establishment of a two-year forecast requires considerable judgment. Protein
and antibody quantities in excess of the two-year usage forecast are
considered impaired and not included in the inventory value. The value of
protein and antibody inventory reserved at June 30, 2009 was $17.7 million.

Valuation of goodwill. The Company is required to perform an annual review
for impairment of goodwill in accordance with FASB Statement of Financial
Accounting Standards (SFAS) No. 142, Goodwill and Other Intangible Assets.
Goodwill is considered to be impaired if it is determined that the carrying
amount of the reporting unit exceeds its fair value. Assessing the impairment
of goodwill requires the Company to make judgments regarding the fair value
of the net assets of its reporting units and the allocation of the carrying
amount of shared assets to the reporting units. The Company's annual
assessment included comparison of the carrying amount of the net assets of a
reporting unit, including goodwill, to the fair value of the reporting unit.
A significant change in the Company's market capitalization or in the
carrying amount of net assets of a reporting unit could result in an
impairment charge in future periods. Goodwill at June 30, 2009 was $25.1
million.

Valuation of intangible and other long-lived assets. The Company reviews the
carrying amount of intangible and other long-lived assets for impairment
whenever events or changes in circumstances indicate the carrying amount of
an asset may not be recoverable. This assessment requires the Company to make
assumptions and judgments regarding the fair value of these asset groups.
Asset groups are considered to be impaired if their carrying amount exceeds
the asset groups' ability to continue to generate income from operations and
positive cash flow in future periods. If asset groups are considered
impaired, the amount by which the carrying amount exceeds its fair value
would be expensed as an impairment loss. The net carrying amount of
intangible assets at June 30, 2009 was $3.0 million. The net carrying amount
of property and equipment was $100.1 million at June 30, 2009.

Valuation of investments. The Company has made equity investments in several
start-up and early development stage companies, among them ChemoCentryx, Inc.
(CCX), Hemerus, Nephromics and ACTGen. The accounting treatment of each
investment (cost method or equity method) is dependent upon a number of
factors, including, but not limited to, the Company's share in the equity of
the investee and the Company's ability to exercise significant influence over
the operating and financial policies of the investee. In determining which
accounting treatment to apply, the Company must make judgments based upon the
quantitative and qualitative aspects of the investment.

The Company periodically assesses its equity investments for impairment.
Development stage companies of the type the Company has invested in are
dependent on their ability to raise additional funds to continue research and
development efforts and on receiving patent protection and/or U.S. Food and
Drug Administration (FDA) clearance to market their products. If such funding
were unavailable or inadequate to fund operations or if patent protection or
FDA clearance were not received, the Company would potentially recognize an
impairment loss to the extent of its remaining net investment. The Company's
net investments at June 30, 2009 in CCX, Hemerus, Nephromics and ACTGen were
$14.3 million, $2.2 million, $4.5 million and $1.2 million, respectively.

Recent Accounting Pronouncements

In June 2009, the FASB issued SFAS No. 168, The FASB Accounting Standards
Codification and the Hierarchy of Generally Accepted Accounting Principles.
SFAS No. 168 will become the single source of authoritative nongovernmental
U.S. GAAP, superseding existing FASB and other related accounting literature.
SFAS No. 168 will be effective for the Company for the quarter ending
September 30, 2009. The Company does not expect the adoption of the
Codification to have an impact on the consolidated financial statements.

                               21


In June 2009, the FASB issued SFAS No. 167, Amendments to FASB Interpretation
No. 46(R), which is effective for the Company beginning July 1, 2010. This
Statement amends FIN 46(R), Consolidation of Variable Interest Entities an
interpretation of ARB No. 51, to require revised evaluations of whether
entities represent variable interest entities, ongoing assessments of control
over such entities, and additional disclosures for variable interests. The
Company believes the adoption of this pronouncement will not have an impact
on the Company's consolidated financial statements.

In February 2008, the FASB amended SFAS No. 157, Fair Value Measurements, to
defer the effective date of SFAS No. 157 for all nonfinancial assets and
liabilities that are not remeasured at fair value on a recurring basis. As
disclosed in Note A to the Consolidated Financial Statements following, the
Company partially adopted the provisions of SFAS No. 157 effective in the
first quarter of fiscal 2009. The Company expects to adopt the remaining
provisions of SFAS No. 157 beginning in the first quarter of fiscal 2010. The
adoption of the provisions of SFAS No. 157 related to other nonfinancial
assets and liabilities is not expected to have a material impact on the
Company's consolidated financial statement disclosures.

Market Risk

At the end of fiscal 2009, the Company had an independently managed
investment portfolio of fixed income securities, excluding those classified
as cash and cash equivalents, of $103.8 million (see Note B of Notes to
Consolidated Financial Statements). These securities, like all fixed income
instruments, are subject to interest rate risk and will decline in value if
market interest rates increase. However, because the Company's fixed income
securities are classified as available-for-sale, no gains or losses are
recognized by the Company in its Consolidated Statement of Earnings due to
changes in interest rates unless such securities are sold prior to maturity.
The Company generally holds its fixed income securities until maturity and,
historically, has not recorded any material gains or losses on any sale prior
to maturity.

The Company operates internationally, and thus is subject to potentially
adverse movements in foreign currency rates. Approximately 29% of
consolidated net sales are made in foreign currencies including 15% in euro,
6% in British pound sterling, 2% in Chinese yuan and the remaining 6% in
other European currencies. As a result, the Company is exposed to market risk
mainly from foreign exchange rate fluctuations of the euro, British pound
sterling, and the Chinese yuan as compared to the U.S. dollar as the
financial position and operating results of the Company's foreign operations
are translated into U.S. dollars for consolidation.

Exchange rates between the British pound sterling, euro and Chinese yuan and
the U.S. dollar were as follows based on month-end ratios:

                                    Year Ended June 30,
                                  2009     2008     2007
                                -------- -------- --------
British pound:
High                            $   1.98 $   2.08 $   2.00
Low                                 1.43     1.98     1.87
Average                             1.60     2.01     1.95
Euro:
High                            $   1.56 $   1.58 $   1.36
Low                                 1.27     1.36     1.27
Average                             1.37     1.48     1.31
Chinese yuan:
High                            $   .147 $   .146      N/A
Low                                 .146     .132      N/A
Average                             .146     .138      N/A

The Company's exposure to foreign exchange rate fluctuations also arises from
trade receivables and intercompany payables denominated in one currency in
the financial statements, but receivable or payable in another currency. At
June 30, 2009, the Company had the following trade receivable and
intercompany payables denominated in one currency but receivable or payable
in another currency (in thousands):

                                      Denominated     U.S. Dollar
                                        Currency      Equivalent
                                      -----------     -----------
Accounts receivable in:
Euros                                 641 Br. pound     $ 1,055
Other European currencies             857 Br. pound     $ 1,410

Intercompany payable in:
Euros                                 221 Br. pound     $   364
U.S. dollars                        2,234 Br. pound     $ 3,676
U.S. dollars                        3,483 Ch. Yuan      $   510

All of the above balances are revolving in nature and are not deemed to be
long-term balances.

The Company does not enter into foreign exchange forward contracts to reduce
its exposure to foreign currency rate changes on forecasted intercompany
sales transactions or on intercompany foreign currency denominated balance
sheet positions. Foreign currency transaction gains and losses are included
in "Other non-operating expense" in the Consolidated Statement of Earnings.
The effect of translating net assets of foreign subsidiaries into U.S.
dollars are recorded on the Consolidated Balance Sheet as part of
"Accumulated other comprehensive income."

                                22


The effects of a hypothetical simultaneous 10% appreciation in the U.S.
dollar from June 30, 2009 levels against the euro, British pound sterling and
Chinese yuan are as follows (in thousands):

                                                  Hypothetical Effect
                                                  Increase (Decrease)
                                                  -------------------
Translation of 2009 earnings into U.S. dollars         $ (2,225)
Transaction losses                                          380
Translation of net assets of foreign subsidiaries       (12,165)

Forward-looking Information

This report contains forward-looking statements, which are based on the
Company's current assumptions and expectations. The principal forward-looking
statements in this report include:  the Company's expectations regarding
future tax rates, capital expenditures, future dividend declarations, and
sufficiency of capital resources to meet the Company's foreseeable future
cash and working capital requirements.

All such forward-looking statements are intended to enjoy the protection of
the safe harbor for forward-looking statements contained in the Private
Securities Litigation Reform Act of 1995, as amended. Although the Company
believes there is a reasonable basis for the forward-looking statements, the
Company's actual results could be materially different. The most important
factors which could cause the Company's actual results to differ from
forward-looking statements are set forth in the Company's description of risk
factors in Item 1A to the Company's Annual Report on Form 10-K, which should
be read in conjunction with the forward looking statements in this report,
and include the following:

  -  The Company's revenues are significantly dependent on sales to research
     scientists in the private and public sector, and a decrease in research
     spending could negatively impact the Company's revenues.

  -  The Company operates in rapidly changing and intensely competitive
     industries, and may not be able to keep pace with its competitors.

  -  The Company is significantly dependent on sales made through foreign
     subsidiaries, and revenues and earnings could be negatively impacted by
     changes in exchange rates.

  -  The Company's business is subject to governmental regulation, which may
     have the effect of delaying or impeding the release of certain of its
     products.

  -  The Company is dependent on maintaining its intellectual property rights,
     and cannot guarantee that it will not be subject to intellectual
     property litigation in the future.

  -  The Company's success will be dependent on recruiting and retaining highly
     qualified personnel, the loss of whom could adversely affect its
     operations.

  -  The Company may incur losses as a result of its investments in other
     companies, the success of which is largely out of the Company's control.

  -  The Company may be unsuccessful in expanding into China and establishing
     adequate distribution channels for its products in China.

Forward-looking statements speak only as of the date they are made, and the
Company does not undertake any obligation to update any forward-looking
statements.




           ITEM 7A.  QUANTITATIVE AND QUALITATIVE DISCLOSURES
                             ABOUT MARKET RISK

See discussion under "Market Risk" in Item 7. Management's Discussion and
Analysis of Financial Conditions and Results of Operations.


                                       23



            ITEM 8.  FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA


                   CONSOLIDATED STATEMENTS OF EARNINGS
                   TECHNE Corporation and Subsidiaries
                  (in thousands, except per share data)

                                                Year Ended June 30,
                                              2009      2008      2007
                                            --------  --------  --------
Net sales                                   $263,956  $257,420  $223,482
Cost of sales                                 55,488    52,889    46,667
                                            --------  --------  --------
Gross margin                                 208,468   204,531   176,815
                                            --------  --------  --------
Operating expenses:
 Selling, general and administrative          33,164    36,715    30,965
 Research and development                     23,564    22,394    20,082
 Amortization of intangible assets               960     1,135     1,614
                                            --------  --------  --------
     Total operating expenses                 57,688    60,244    52,661
                                            --------  --------  --------
Operating income                             150,780   144,287   124,154
                                            --------  --------  --------
Other (expense) income:
 Interest expense                                 --        --    (1,083)
 Interest income                               7,634    12,188     8,434
 Other non-operating expense, net             (3,051)   (2,644)   (2,574)
                                            --------  --------  --------
     Total other income                        4,583     9,544     4,777
                                            --------  --------  --------
Earnings before income taxes                 155,363   153,831   128,931
Income taxes                                  50,121    50,273    43,820
                                            --------  --------  --------
Net earnings                                $105,242  $103,558  $ 85,111
                                            ========  ========  ========
Earnings per share:
 Basic                                      $   2.78  $   2.65  $   2.16
 Diluted                                    $   2.78  $   2.64  $   2.15
Cash dividends per common share:            $   0.75        --        --
Weighted average common shares outstanding:
 Basic                                        37,802    39,139    39,406
 Diluted                                      37,900    39,247    39,513

               See Notes to Consolidated Financial Statements.

                                   24


                          CONSOLIDATED BALANCE SHEETS
                    TECHNE Corporation and Subsidiaries
                    (in thousands, except per share data)

                                                           June 30,
                                                        2009      2008
                                                      --------  --------
Assets
Current assets:
 Cash and cash equivalents                            $160,940  $166,992
 Short-term available-for-sale investments              41,947    39,353
 Trade accounts receivable, less allowance for
  doubtful accounts of $357 and $153, respectively      29,516    31,747
 Other receivables                                       1,637     1,585
 Inventories                                            11,269     9,515
 Deferred income taxes                                   9,345     8,433
 Prepaid expenses                                          813       808
                                                      --------  --------
     Total current assets                              255,467   258,433
Available-for-sale investments                          61,863    87,384
Property and equipment, net                            100,133   101,722
Goodwill                                                25,068    25,068
Intangible assets, net                                   3,004     3,964
Deferred income taxes                                    3,601     5,055
Investments in unconsolidated entities                  22,119    24,749
Other assets                                               750       994
                                                      --------  --------
                                                      $472,005  $507,369
                                                      ========  ========
Liabilities and Stockholders' Equity
Current liabilities:
 Trade accounts payable                               $  5,156  $  4,343
 Salaries, wages and related accruals                    4,010     8,584
 Other accounts payable and accrued expenses             2,311     1,768
 Income taxes payable                                    4,046     5,544
                                                      --------  --------
     Total current liabilities                          15,523    20,239
                                                      --------  --------
Commitments and contingencies (Note H)
Stockholders' equity:
 Undesignated capital stock, no par; authorized
  5,000,000 shares; none issued or outstanding              --        --
 Common stock, par value $.01 a share; authorized
  100,000,000 shares; issued and outstanding
  37,244,029 and 38,643,480 shares, respectively           372       386
 Additional paid-in capital                            117,946   115,408
 Retained earnings                                     345,641   359,208
 Accumulated other comprehensive (loss) income          (7,477)   12,128
                                                      --------  --------
     Total stockholders' equity                        456,482   487,130
                                                      --------  --------
                                                      $472,005  $507,369
                                                      ========  ========

                See Notes to Consolidated Financial Statements.

                                      25


             CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
                    AND COMPREHENSIVE INCOME (LOSS)
                 TECHNE Corporation and Subsidiaries
                               (in thousands)



                                                                                     Accumulated
                                                                                     Other
                                                               Additional            Compre-
                                               Common  Stock   Paid-in     Retained  hensive
                                               Shares  Amount  Capital     Earnings  Income        Total
                                               ------  ------  ----------  --------  ----------- --------
                                                                              
Balances at June 30, 2006                      39,377  $  394  $105,041    $229,228  $   5,685   $340,348
 Comprehensive income:
  Net earnings                                     --      --        --      85,111         --     85,111
  Other comprehensive income, net of tax:
   Foreign currency translation adjustments        --      --        --          --      6,879      6,879
   Unrealized gains on available-for-
    sale investments                               --      --        --          --        360        360
                                                                                                 --------
 Comprehensive income                                                                              92,350
 Common stock issued for exercise of options       81       1     2,850          --         --      2,851
 Surrender and retirement of stock to
  exercise options                                 (2)     (0)     (111)         --         --       (111)
 Stock-based compensation expense                  --      --     1,576          --         --      1,576
 Tax benefit from exercise of stock options        --      --       637          --         --        637
                                               ------  ------  --------    --------  ---------   --------
Balances at June 30, 2007                      39,456     395   109,993     314,339     12,924    437,651
 Comprehensive income:
  Net earnings                                     --      --        --     103,558         --    103,558
  Other comprehensive income:
   Foreign currency translation adjustments        --      --        --          --        333        333
   Unrealized losses on available-for-
    sale investments (net of tax of $935)          --      --        --          --     (1,129)    (1,129)
                                                                                                 --------
 Comprehensive income                                                                             102,762
 Common stock issued for exercise of options       87       0     3,145          --         --      3,145
 Surrender and retirement of stock to
  exercise options                                 (1)     (0)      (68)         ---        --        (68)
 Repurchase and retirement of common stock       (899)     (9)       --      (58,689)       --    (58,698)
 Stock-based compensation expense                  --      --     1,727           --        --      1,727
 Tax benefit from exercise of stock options        --      --       611           --        --        611
                                               ------  ------  --------    --------  ---------   --------
Balances at June 30, 2008                      38,643     386   115,408     359,208     12,128    487,130
 Comprehensive income:
  Net earnings                                     --      --        --     105,242         --    105,242
  Other comprehensive income:
   Foreign currency translation adjustments        --      --        --          --     (21,768)  (21,768)
   Unrealized gains on available-for-
    sale investments (net of tax of $316)          --      --        --          --       2,163     2,163
                                                                                                 --------
 Comprehensive income                                                                              85,637
 Common stock issued for exercise of options       21       0       975          --          --       975
 Surrender and retirement of stock to
  exercise options                                 (0)     (0)      (22)         --          --       (22)
 Repurchase and retirement of common stock     (1,420)    (14)       --     (90,615)         --   (90,629)
 Cash dividends                                    --      --        --     (28,194)         --   (28,194)
 Stock-based compensation expense                  --      --     1,478          --          --     1,478
 Tax benefit from exercise of stock options        --      --       107          --          --       107
                                               ------  ------  --------    --------  ---------   --------
Balances at June 30, 2009                      37,244  $  372  $117,946    $345,641  $  (7,477)  $456,482
                                               ======  ======  ========    ========  =========   ========


               See Notes to Consolidated Financial Statements.

                                     26


                    CONSOLIDATED STATEMENTS OF CASH FLOWS
                     TECHNE Corporation and Subsidiaries
                               (in thousands)

                                                   Year Ended June 30,
                                                 2009      2008      2007
                                               --------  --------  --------
Cash flows from operating activities:
 Net earnings                                  $105,242  $103,558  $ 85,111
 Adjustments to reconcile net earnings to
  net cash provided by operating activities:
  Depreciation and amortization                   7,766     7,259     6,994
  Deferred income taxes                            (730)     (661)     (797)
  Stock-based compensation expense                1,478     1,727     1,576
  Excess tax benefit from stock
   option exercises                                (107)     (524)     (534)
  Impairment loss on available-for-
   sale investment                                   --       400        --
  Losses by equity method investees               1,290     1,140       966
  Other                                             458       208       168
 Change in operating assets and liabilities:
  Trade accounts and other receivables               49    (1,718)   (5,004)
  Inventories                                    (2,123)   (1,062)      205
  Prepaid expenses                                  (42)       96      (117)
  Trade, other accounts payable and
   accrued expenses                               1,394      (930)    1,380
  Salaries, wages and related accruals           (2,803)    4,036     2,055
  Income taxes payable                             (551)    1,788    (1,500)
                                               --------  --------  --------
     Net cash provided by operating activities  111,321   115,317    90,503
                                               --------  --------  --------
Cash flows from investing activities:
 Additions to property and equipment             (6,556)  (16,365)   (8,076)
 Purchase of available-for-sale investments     (49,173)  (77,582)  (49,405)
 Proceeds from maturities of available-for-
  sale investments                               34,315    27,968    17,515
 Proceeds from sale of available-for-
  sale investments                               41,352    41,000     8,074
 Distribution from unconsolidated entity          1,340        --        --
 Increase in investments in
  unconsolidated entities                            --    (1,723)   (7,900)
 Increase in other long-term assets                  --      (808)     (125)
                                               --------  --------  --------
    Net cash provided by (used in)
      investing activities                       21,278   (27,510)  (39,917)
                                               --------  --------  --------
Cash flows from financing activities:
 Issuance of common stock                           953     3,077     2,740
 Excess tax benefit from stock option exercises     107       524       534
 Purchase of common stock for stock bonus plans  (1,681)   (1,494)   (1,222)
 Repurchase of common stock                     (90,629)  (58,698)       --
 Cash dividends                                 (28,194)       --        --
 Payments on long-term debt                          --        --   (13,427)
                                               --------  --------  --------
     Net cash used in financing activities     (119,444)  (56,591)  (11,375)
                                               --------  --------  --------
Effect of exchange rate changes on cash
 and cash equivalents                           (19,207)      291     6,640
                                               --------  --------  --------
Net change in cash and cash equivalents          (6,052)   31,507    45,851
Cash and cash equivalents at beginning of year  166,992   135,485    89,634
                                               --------  --------  --------
Cash and cash equivalents at end of year       $160,940  $166,992  $135,485
                                               ========  ========  ========

              See Notes to Consolidated Financial Statements.

                                     27


                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                      TECHNE Corporation and Subsidiaries

                   Years ended June 30, 2009, 2008 and 2007

A.  Description of business and summary of significant accounting policies:

Description of business: TECHNE Corporation and Subsidiaries (the Company)
are engaged in the development, manufacture and sale of biotechnology
products and hematology calibrators and controls. These activities are
conducted domestically through its wholly-owned subsidiaries, Research and
Diagnostic Systems, Inc. (R&D Systems) and BiosPacific, Inc. (BiosPacific).
The Company distributes biotechnology products in Europe through its wholly-
owned U.K. subsidiary, R&D Systems Europe Ltd. (R&D Europe). R&D Europe has a
sales subsidiary, R&D Systems GmbH, in Germany and a sales office in France.
The Company distributes biotechnology products in China through its wholly-
owned subsidiary R&D Systems China Co. Ltd. (R&D China).

Estimates: The preparation of consolidated financial statements in conformity
with accounting principles generally accepted in the United States of America
requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities, disclosures of contingent assets
and liabilities at the date of the consolidated financial statements, and the
reported amounts of revenues and expenses during the reporting period. These
estimates include the valuation of accounts receivable, inventory, intangible
assets, stock based compensation and income taxes. Actual results could
differ from these estimates.

Risk and uncertainties: There are no concentrations of business transacted
with a particular customer or supplier or concentrations of revenue from a
particular product or geographic area that would severely impact the Company
in the near term.

Principles of consolidation: The consolidated financial statements include
the accounts of the Company and its wholly-owned subsidiaries. All
intercompany accounts and transactions have been eliminated.

Translation of foreign financial statements: Assets and liabilities of the
Company's foreign operations are translated at year-end rates of exchange and
the resulting gains and losses arising from the translation of net assets
located outside the U.S. are recorded as a cumulative translation adjustment,
a component of accumulated other comprehensive income (loss) on the
consolidated balance sheets. Foreign statements of earnings are translated at
the average rate of exchange for the year. Foreign currency transaction gains
and losses are included in other non-operating expense in the consolidated
statement of earnings.

Revenue recognition: The Company recognizes revenue when persuasive evidence
of an arrangement exists, delivery has occurred or services have been
rendered, the price is fixed or determinable and collectability is reasonably
assured. Payment terms for shipments to end-users are generally net 30 days.
Payment terms for distributor shipments may range from 30 to 90 days.
Products are shipped FOB shipping point. Freight charges billed to end-users
are included in net sales and freight costs are included in cost of sales.
Freight charges on shipments to distributors are paid directly by the
distributor. Any claims for credit or return of goods must be made within 10
days of receipt. Revenues are reduced to reflect estimated credits and
returns. Sales, use, value-added and other excise taxes are not included in
revenue.

Research and development: Research and development expenditures are expensed
as incurred. Development activities generally relate to creating new
products, improving or creating variations of existing products, or modifying
existing products to meet new applications.

Advertising costs: Advertising expenses (including production and
communication costs) for fiscal 2009, 2008 and 2007 were $3.0 million, $3.0
million and $2.8 million, respectively. The Company expenses advertising
expenses as incurred.

Share-based compensation: The Company accounts for employee share-based
compensation under Statement of Financial Accounting Standards (SFAS) No. 123
(Revised 2004), Share-Based Payment. The Statement requires a public entity
to measure the cost of employee services received in exchange for the award
of equity instruments based on the fair value of the award at the date of
grant. Compensation cost is recognized using a straight-line method over the
vesting period and is net of estimated forfeitures. Compensation expense
related to stock options for the years ended June 30, 2009, 2008 and 2007 was
$1.5 million, $1.7 million and $1.6 million, respectively.

                                28


Income taxes: The Company uses the asset and liability method of accounting
for income taxes. Deferred tax assets and liabilities are recognized to
record the income tax effect of temporary differences between the tax basis
and financial reporting basis of assets and liabilities. Deferred tax assets
and liabilities are measured using enacted tax rates expected to apply to
taxable income in the years in which those temporary differences are expected
to be recovered or settled. The effect on deferred tax assets and liabilities
of a change in tax rates is recognized in income in the period that includes
the enactment date. In June 2006, the Financial Accounting Standards Board
(FASB) issued Interpretation No. 48 (FIN 48), Accounting for Uncertainty in
Income Taxes - an interpretation of FASB Statement No. 109. Effective July 1,
2007, the Company adopted FIN 48. FIN 48 requires that a position taken or
expected to be taken in a tax return be recognized in the financial
statements when it is more likely than not that the position would be
sustained upon examination by tax authorities. A recognized tax position is
then measured at the largest amount of benefit that is greater than fifty
percent likely of being realized upon ultimate settlement.

Financial instruments: The carrying amounts of cash and cash equivalents,
receivables, accounts payable and other current liabilities approximate fair
value due to their short-term nature. Marketable securities are carried at
fair value.

Cash and equivalents: Cash and cash equivalents include cash on hand and
highly-liquid investments with original maturities of three months or less.

Available-for-sale investments: Available-for-sale investments consist
mainly of debt instruments with original maturities of generally three months
to three years and are recorded based on trade-date. The Company considers
all of its marketable securities available-for-sale and reports them at fair
market value. Fair market values are based on quoted market prices.
Unrealized gains and losses on available-for-sale securities are excluded
from income, but are included in other comprehensive income. If an "other-
than-temporary" impairment is determined to exist, the difference between the
value of the investment security recorded in the financial statements and the
Company's current estimate of the fair value is recognized as a charge to
earnings in the period in which the impairment is determined.

Inventories: Inventories are stated at the lower of cost (first-in, first-out
method) or market. The Company regularly reviews inventory on hand for slow-
moving and obsolete inventory, inventory not meeting quality control
standards and inventory subject to expiration.

To meet strict customer quality standards, the Company has established a
highly controlled manufacturing process for proteins and antibodies. New
protein and antibody products require the initial manufacture of multiple
batches to determine if quality standards can be consistently met. In
addition, the Company will produce larger batches of established products
than current sales requirements due to economies of scale. The manufacturing
process for proteins and antibodies, therefore, has and will continue to
produce quantities in excess of forecasted usage. The Company values its
manufactured protein and antibody inventory based on a two-year usage
forecast. Protein and antibody quantities in excess of the two-year usage
forecast are considered impaired and not included in the inventory cost.
Sales of previously impaired protein and antibody inventory for fiscal years
2009, 2008 and 2007 were not material. Manufacturing costs for proteins and
antibodies charged directly to cost of sales were $11.9 million, $11.0
million and $8.4 million for fiscal 2009, 2008 and 2007 respectively.

Depreciation and amortization: Equipment is depreciated using the straight-
line method over an estimated useful life of five years. Buildings, building
improvements and leasehold improvements are amortized over estimated useful
lives of five to forty years.

Goodwill and intangible assets: At June 30, 2009, the Company had recorded
goodwill of $25.1 million. The Company completed its annual impairment
testing of goodwill and concluded that no impairment existed as of June 30,
2009. The Company's annual assessment included comparison of the carrying
amount of a reporting unit, including goodwill, to the fair value of the
reporting unit. Other intangible assets are being amortized over their
estimated useful lives.

Impairment of intangible and other long-lived assets:  The Company reviews
the carrying amount of intangible and other long-lived assets for impairment
whenever events or changes in circumstances indicate the carrying amount of
an asset may not be recoverable. Recoverability of asset groups subject to
impairment analysis requires the Company to make assumptions and judgments
regarding the fair value of these asset groups. Asset groups are considered
to be impaired if their carrying amount exceeds the groups' ability to
continue to generate income from operations and positive cash flow in future
periods. If asset groups are considered impaired, the amount by which the
carrying amount exceeds its fair value would be expensed as an impairment
loss. As of June 30, 2009, the Company has determined that no impairment
exists.

                                  29

Investments in unconsolidated entities: The Company has equity investments in
several start-up and early development stage companies, among them
ChemoCentryx, Inc, (CCX), Hemerus Medical, LLC (Hemerus), Nephromics, LLC
(Nephromics) and ACTGen, Inc. (ACTGen). The accounting treatment of each
investment (cost method or equity method) is dependent upon a number of
factors, including, but not limited to, the Company's share in the equity of
the investee and the Company's ability to exercise significant influence over
the operating and financial policies of the investee.

Subsequent events: The Company has evaluated subsequent events through August
28, 2009, the date these consolidated financial statements were issued.

Recent accounting pronouncements: In May 2009, the FASB issued SFAS No. 165,
Subsequent Events, which provides guidance to establish general standards of
accounting for and disclosures of events that occur after the balance sheet
date but before financial statements are issued or are available to be
issued.  SFAS No. 165 also requires entities to disclose the date through
which subsequent events were evaluated as well as the rationale for why that
date was selected.  The Company has adopted the provisions of SFAS No. 165
for the fiscal year ended June 30, 2009.  The adoption of SFAS No. 165 did
not have an impact on the financial condition, results of operations, and
disclosures of the Company.

In September 2006, the FASB issued SFAS No. 157, Fair Value Measurements.
SFAS No. 157 defines fair value, establishes a framework for measuring fair
value and expands disclosures about fair value measurements. Effective July
1, 2008, the Company adopted the provisions of SFAS No. 157 related to
financial assets and liabilities, as well as other assets and liabilities
carried at fair value on a recurring basis. These provisions, which have been
applied prospectively, did not have a material impact on the Company's
consolidated financial statements. Certain other provisions of SFAS No. 157
related to other nonfinancial assets and liabilities will be effective for
the Company on July 1, 2009, and will be applied prospectively. The adoption
of the provisions of SFAS No. 157 related to other nonfinancial assets and
liabilities is not expected to have a significant impact on the Company's
consolidated financial statement disclosures.

SFAS No. 157 defines three levels of inputs that may be used to measure fair
value and requires that the assets or liabilities carried at fair value be
disclosed by the input level under which they were valued. The input levels
defined under SFAS No. 157 are as follows:

  Level 1: Quoted market prices in active markets for identical assets and
           liabilities.

  Level 2: Observable inputs other than defined in Level 1, such as quoted
           prices for similar assets or liabilities; quoted prices in markets
           that are not active; or other inputs that are observable or can be
           corroborated by observable market data for substantially the full
           term of the assets or liabilities.

  Level 3: Unobservable inputs that are not corroborated by observable market
           data.

The Company's financial assets and liabilities measured at fair value as of
June 30, 2009, were its available-for-sale securities of $103.8 million,
which were valued using Level 1 inputs.


B.  Available-for-sale investments:

At June 30, 2009 and 2008, the amortized cost and market value of the
Company's available-for-sale securities by major security type were as
follows (in thousands):

                                                  June 30,
                                            2009              2008
                                     ----------------- -----------------
                                       Cost    Market    Cost   Market
                                     -------- -------- -------- --------
State and municipal debt securities  $ 99,694 $100,520 $120,155 $120,512
U.S. government securities                785      796       --       --
Auction-rate securities                    --       --    8,675    5,775
Corporate debt securities               2,457    2,494      447      450
                                     -------- -------- -------- --------
                                      102,936  103,810  129,277  126,737
Net unrealized gain (loss)                874       --   (2,540)      --
                                     -------- -------- -------- --------
                                     $103,810 $103,810 $126,737 $126,737
                                     ======== ======== ======== ========

                                    30


Gross unrealized gains and losses on available-for-sale investments were
$942,000 and $68,000, respectively at June 30, 2009. Gross unrealized gains
and losses on available-for-sale investments were $537,000 and $3.1 million,
respectively, at June 30, 2008.

Unrealized gains and losses on the Company's available-for-sale investments
are caused by interest rate changes. Because the Company has the ability and
intent to hold its available-for-sale investments that are in an unrealized
loss position until a recovery of fair value, the Company does not consider
these investments to be other-than-temporarily impaired at June 30, 2009. The
net unrealized gain or loss on available-for-sale investments, net of tax
benefit, is reflected in accumulated other comprehensive income, a component
of stockholders' equity.

At June 30, 2008, the Company held $8.7 million par value of investments in
auction-rate securities which were rated A or above and consisted of
specifically identifiable tax-free municipal revenue bonds where the
underlying credit could be specifically evaluated and rated. At June 30,
2008, the Company determined, based on an internal valuation model, that
several of its investments in auction-rate securities were temporarily
impaired and reduced the value of its auction-rate investments to $5.8
million. In fiscal 2009, the Company sold all of its auction-rate securities
at par value.  The Company classified its auction-rate securities as long-
term available-for-sale investments.

At June 30, 2009, the Company's investments in an unrealized loss position
that have been determined to be temporarily impaired were as follows (in
thousands):

                                    Fair     Unrealized
Period of Unrealized Loss:          Value      Losses
--------------------------         -------   -----------
Less than one year                 $ 7,253     $   30
Greater than one year                6,215         38
                                   -------     ------
                                   $13,468     $   68
                                   =======     ======

Contractual maturities of available-for-sale investments are shown below (in
thousands). Expected maturities may differ from contractual maturities
because borrowers may have the right to recall or prepay obligations with or
without call or prepayment penalties.

Year Ending June 30, 2009:
--------------------------
Due within one year               $ 41,947
Due after one year                  61,863
                                  --------
                                  $103,810
                                  ========

Proceeds from maturities or sales of available-for-sale securities were $75.7
million, $69.0 million and $25.6 million during fiscal 2009, 2008 and 2007,
respectively. There were no material gross realized gains or losses on these
sales. Realized gains and losses are determined on the specific
identification method.


C.  Inventories:

Inventories consist of (in thousands):

                                             June 30,
                                          2009      2008
                                        --------  --------
Raw materials                           $  4,905  $  3,962
Finished goods                             6,222     5,430
Supplies                                     142       123
                                        --------  --------
                                        $ 11,269  $  9,515
                                        ========  ========

At June 30, 2009 and 2008, the Company had $17.7 million and $16.0 million,
respectively, of excess protein and antibody inventory on hand which was
fully reserved.


D.  Property and equipment:

Property and equipment consist of (in thousands):

                                             June 30,
                                          2009      2008
                                        --------  --------
Cost:
 Land                                   $  7,538  $  5,608
 Buildings and improvements              116,662   116,107
 Laboratory equipment                     24,759    22,826
 Office and computer equipment             4,746     4,856
                                        --------  --------
                                         153,705   149,397
Accumulated depreciation
 and amortization                        (53,572)  (47,675)
                                        --------  --------
                                        $100,133  $101,722
                                        ========  ========

E.  Intangible assets:

Intangible assets consist of (in thousands):
                                             June 30,
                        Useful Life       2009      2008
                        -----------     --------  --------
Customer relationships    2-8 years     $  1,966  $  1,966
Technology                  8 years        3,483     3,483
Trade names                 5 years        1,396     1,396
                                        --------  --------
                                           6,845     6,845
Accumulated amortization                  (3,841)   (2,881)
                                        --------  --------
                                        $  3,004  $  3,964
                                        ========  ========

                                   31


The estimated future amortization expense for intangible assets as of June
30, 2009 is as follows (in thousands):

Year Ending June 30:
--------------------
2010                    $    960
2011                         681
2012                         682
2013                         681
                        --------
                        $  3,004
                        ========


F.  Investments in unconsolidated entities:

In fiscal 2008, the Company invested $1.4 million for a 19% interest in
ACTGen, a development stage biotechnology company located in Japan. ACTGen
has intellectual property related to the identification and expression of
molecules. The technology covers techniques to identify cellular molecules
which are destined to be secreted into tissue fluids or shuttled to the cell
membrane. Such molecules represent an ideal target as biomarkers. The
Company's net investment in ACTGen was $1.2 million and $1.3 million at
June 30, 2009 and 2008, respectively.

In fiscal 2007, the Company invested $7.2 million for an 18% equity interest
in Nephromics. Nephromics has licensed technology related to the diagnosis of
preeclampsia and has sublicensed the technology to several major diagnostic
companies for the development of diagnostic assays. In fiscal 2008,
Nephromics issued additional membership units which reduced the Company's
ownership to 16.8%. In fiscal 2009, the Company received a $1.3 million
distribution from Nephromics.  The Company accounts for its investment in
Nephromics under the equity method of accounting as Nephromics is a limited
liability company. The Company's net investment in Nephromics was $4.5
million and $6.2 million at June 30, 2009 and 2008, respectively.

In fiscal 2004, the Company purchased a 10% interest in Hemerus for $3.0
million. In fiscal years 2006 through 2008, the Company invested an
additional $1.8 million in Hemerus, increasing its ownership percentage to
19%. In fiscal 2009, as a result of Hemerus repurchasing and retiring a third
party's membership units, the Company's ownership percentage increased to
22%.  Hemerus was formed in March 2001 and has acquired and is developing
technology for the separation of leukocytes from blood and blood components.
Hemerus owns two patents and has several patent applications pending and has
received FDA clearance to market its products in the U.S. In parallel with
this investment, R&D Systems entered into a Joint Research Agreement with
Hemerus. The research involves joint projects to explore the use of Hemerus's
filter technology in applications within R&D Systems' Hematology and
Biotechnology Divisions. Such applications, if any, may have commercial
potential in other laboratory environments. The Company accounts for its
investment in Hemerus under the equity method of accounting as Hemerus is a
limited liability company. The Company's net investment in Hemerus was $2.2
million and $2.9 million at June 30, 2009 and 2008, respectively.

The Company has invested in the preferred stock of CCX, a technology and drug
development company.  The Company holds a 16.8% ownership percentage in CCX.
The Company has evaluated the cost versus equity method of accounting for its
investment in CCX and determined that it does not have the ability to
exercise significant influence over the operating and financial policies of
CCX and therefore, accounts for its investment on a cost basis. The Company's
net investment in CCX at both June 30, 2009 and 2008 was $14.3 million. In
accordance with SFAS No. 107, Disclosures about Fair Value of Financial
Instruments, the Company has determined that because CCX is privately held,
it is not practicable to estimate the fair value of its investment in CCX.
The Company has not identified any events or changes in circumstances that
may have had a significant adverse effect on the fair value of the
investment.

The Company does not provide loans, guarantees or other financial assistance
to Nephromics, Hemerus, CCX or ACTGen and has no obligation to provide
additional funding.


G.  Debt:

The Company's short-term line of credit facility consists of an unsecured
line of credit of $750,000 at June 30, 2009. The line of credit expires on
October 31, 2009. The interest rate charged on the line of credit is a
floating rate at the one-month London interbank offered rate (Libor) plus
1.75%. There were no borrowings on the line outstanding as of June 30, 2009
and 2008.

                                 32

On October 31, 2006, the Company repaid its mortgage debt. The total payment
of $13.8 million included the mortgage principal balance, accrued interest
and a 5% prepayment penalty of $651,000. The prepayment penalty and $78,000
of unamortized loan origination fees are included in interest expense for
fiscal 2007.


H.  Commitments and contingencies:

The Company leases office and warehouse space, vehicles and various office
equipment under operating leases. These leases provide for renewal or
purchase options during or at the end of the lease periods. At June 30, 2009,
aggregate net minimum rental commitments under non-cancelable leases having
an initial or remaining term of more than one year are payable as follows (in
thousands):

Year Ending June 30:
--------------------
2010                     $    332
2011                          249
2012                           95
2013                           87
2014                           87
Thereafter                     17
                         --------
                         $    867
                         ========

Total rent expense was approximately $393,000, $583,000 and $762,000 for the
years ended June 30, 2009, 2008 and 2007, respectively.

The Company is routinely subject to claims and involved in legal actions
which are incidental to the business of the Company. Although it is difficult
to predict the ultimate outcome of these matters, management believes that
any ultimate liability will not materially affect the consolidated financial
position or results of operations of the Company.


I.  Stockholders' equity:

Stock option plans: The Company has stock option plans (the Plans) which
provide for the granting of stock options to employees (the TECHNE
Corporation 1997 Incentive Stock Option Plan) and to employees, officers,
directors and consultants (the TECHNE Corporation 1998 Nonqualified Stock
Option Plan). The Plans are administered by the Board of Directors and its
Compensation Committee, which determine the persons who are to receive awards
under the Plans, the number of shares subject to each award and the term and
exercise price of each option. The maximum term of options granted under all
Plans is ten years. The number of shares of common stock authorized to be
issued and available for grant at June 30, 2009 are as follows (in
thousands):
                                                Available
                                    Authorized  for Grant
                                    ----------  ---------
1997 Incentive Stock Option Plan         3,200      2,349
1998 Nonqualified Stock Option Plan      1,600        842

Stock option activity, under the Plans for the three years ended June 30,
2009, consists of the following (shares in thousands):

                                      Weighted
                                      Average  Weighted Avg.  Aggregate
                                      Exercise Contractual    Intrinsic
                              Shares  Price    Life (Yrs.)    Value
                              ------  -------  -------------  -----------
Outstanding at June 30, 2006     421  $ 38.89
 Granted                          84    58.01
 Forfeited or expired             (1)   65.00
 Exercised                       (81)   35.32
                              ------
Outstanding at June 30, 2007     423    43.29
 Granted                          37    65.88
 Forfeited or expired             (1)   36.50
 Exercised                       (87)   35.84
                              ------
Outstanding at June 30, 2008     372    47.36
 Granted                          47    65.07
 Forfeited or expired             --       --
 Exercised                       (21)   46.43
                              ------
Outstanding at June 30, 2009     398  $ 49.49      4.8        $5.9 million
                              ======
Exercisable at June 30:
 2007                            365  $ 41.23
 2008                            343    46.33
 2009                            379    48.96      4.8        $5.8 million


                                    33


The fair values of options granted under the Plans were estimated on the date
of grant using the Black-Scholes option-pricing model with the following
assumptions used:

                                                   Year Ended June 30,
                                                 2009      2008      2007
                                               --------  --------  --------
Dividend yield                                     1.6%        --        --
Expected volatility                             24%-37%   24%-46%   25%-47%
Risk-free interest rates                      2.9%-3.5% 4.2%-4.6% 4.5%-5.1%
Expected lives                                  7 years   7 years   6 years

The Company declared and paid its first dividend during the quarter ended
December 31, 2008.  As the Company had not established a practice of paying
dividends prior to the grant of options in the first half of fiscal 2009, an
expected dividend yield of zero was used to estimate the fair value of
options granted during the first two quarters of fiscal 2009. The Company
continued to pay dividends in the third and fourth quarter of fiscal 2009,
therefore a dividend yield of 1.6% was used in estimating the fair value of
options granted in the second half of fiscal 2009. The expected annualized
volatility is based on the Company's historical stock price over a period
equivalent to the expected life of the option granted. The risk-free interest
rate is based on U.S. Treasury constant maturity interest rate with a term
consistent with the expected life of the options granted. Separate groups of
employees that have similar historical exercise behavior with regard to
option exercise timing and forfeiture rates are considered separately in
determining option fair value.

The weighted average fair value of options granted during fiscal 2009, 2008
and 2007 was $28.21, $35.75 and $24.18, respectively. The total intrinsic
value of options exercised during fiscal 2009, 2008 and 2007 were $648,000,
$2.5 million and $1.9 million, respectively. Stock option exercises are
satisfied through the issuance of new shares. The total fair value of options
vested during fiscal 2009, 2008 and 2007 were $1.5 million, $2.0 million and
$1.8 million, respectively.

Stock-based compensation cost of $1.5 million, $1.7 million and $1.6 million
was included in selling, general and administrative expense in fiscal 2009,
2008 and 2007, respectively. As of June 30, 2009, there was $279,000 of total
unrecognized compensation cost related to non-vested stock options which will
be expensed in fiscal 2010.

Stock repurchase: In fiscal 2009 and 2008, the Company repurchased
approximately 1.4 million shares and 899,000 shares of its common stock at a
market value of $90.6 million and $58.7 million, respectively, pursuant to
stock purchase plans authorized by the Board of Directors.
Cash dividends:  In fiscal 2009, the Company paid three quarterly cash
dividends of $0.25 per share per quarter totaling $28.2 million.


J.  Income taxes:

The provisions for income taxes consist of the following (in thousands):

                                                   Year Ended June 30,
                                                 2009      2008      2007
                                               --------  --------  --------
Earnings before income taxes consist of:
 Domestic                                      $121,585  $113,310  $101,154
 Foreign                                         33,778    40,521    27,777
                                               --------  --------  --------
                                               $155,363  $153,831  $128,931
                                               ========  ========  ========
Taxes on income consist of:
 Currently payable:
  Federal                                      $ 38,621  $ 36,602  $ 32,244
  State                                           2,308     2,186     3,741
  Foreign                                         9,920    12,146     8,632
 Net deferred:
  Federal                                          (721)     (719)     (594)
  State                                               9        40      (217)
  Foreign                                           (16)       18        14
                                               --------  --------  --------
                                               $ 50,121  $ 50,273  $ 43,820
                                               ========  ========  ========

The following is a reconciliation of the federal tax calculated at the
statutory rate of 35% to the actual income taxes provided (in thousands):

                                                   Year Ended June 30,
                                                 2009      2008      2007
                                               --------  --------  --------
Computed expected federal income tax expense   $ 54,377  $ 53,841  $ 45,126
State income taxes, net of federal benefit        1,805     1,298     2,380
Qualified production activity deduction          (2,397)   (2,260)   (1,029)
Research and development tax credit              (1,192)     (310)     (265)
Tax-exempt interest                              (1,424)   (1,687)   (1,270)
Decrease in deferred tax valuation allowance       (235)     (171)     (109)
Extraterritorial income tax benefit                  --        --      (454)
Other                                              (813)     (438)     (559)
                                               --------  --------  --------
                                               $ 50,121  $ 50,273  $ 43,820
                                               ========  ========  ========


                                   34

Temporary differences comprising deferred taxes on the consolidated balance
sheets are as follows (in thousands):
                                                     June 30,
                                                  2009      2008
                                               --------  --------
Inventory reserves                             $  6,389  $  5,954
Inventory costs capitalized                       1,787     1,558
Unrealized profit on intercompany sales             878       761
Intangible asset amortization                       891     2,300
Depreciation                                      1,825     1,998
Excess tax basis in equity investments            3,758     3,091
Foreign tax credit carryforward                     154        56
Deferred compensation                             1,795     1,493
Unrealized losses on available-for-
 sale investments                                    --       935
Other                                               520       501
Valuation allowance                              (2,912)   (3,147)
                                               --------  --------
     Net deferred tax assets                     15,085    15,500
Intangible asset amortization                      (900)   (1,038)
Unrealized gains on available-for-
 sale investments                                  (316)       --
Other                                              (923)     (974)
     Deferred tax liabilities                    (2,139)   (2,012)
                                               --------  --------
     Net deferred tax assets                   $ 12,946  $ 13,488
                                               ========  ========

A deferred tax valuation allowance is required when it is more likely than
not that all or a portion of deferred tax assets will not be realized. The
Company has provided a valuation allowance for potential capital loss
carryovers resulting from excess tax basis in certain of its equity
investments. The Company believes that it is more likely than not that the
recorded deferred tax asset, net of valuation allowance, will be realized.

Undistributed earnings of the Company's foreign subsidiaries amounted to
approximately $137.5 million as of June 30, 2009. Deferred taxes have not
been provided on such undistributed earnings, as the Company has either paid
U.S. taxes on the undistributed earnings or intends to indefinitely reinvest
the undistributed earnings in the foreign operations.

The Company adopted FIN 48 on July 1, 2007. The total amount of gross
unrecognized tax benefits as of the date of adoption was $143,000 of which
$47,000, if recognized, would affect the Company's effective tax rate. A
reconciliation of unrecognized tax benefits is as follows (in thousands):

Gross unrecognized tax benefits as of July 1, 2007     $  143
Gross increases:
 Current year tax positions                                20
Gross decreases:
 Prior year tax positions (tax paid)                      (64)
 Statute of limitation lapses                              (7)
                                                       ------
Gross unrecognized tax benefits as of June 30, 2008        92
Gross increases:
 Current year tax positions                                 7
Gross decreases:
 Statute of limitation lapses                              (8)
                                                       ------
Gross unrecognized tax benefits as of June 30, 2009    $   91
                                                       ======

The gross unrecognized tax benefit balance as of June 30, 2009 of $91,000
includes $6,000 of unrecognized taxes benefits that, if recognized, would
affect the effective tax rate.  The gross unrecognized tax benefit balance as
of June 30, 2008 of $92,000 includes $7,000 of unrecognized tax benefits
that, if recognized, would affect the effective tax rate. Accrued interest
and penalties were not material at June 30, 2009 and 2008.

The Company does not believe it is reasonably possible that the total amounts
of unrecognized tax benefits will significantly increase or decrease in the
next twelve months. The Company recognizes interest and penalties related to
unrecognized tax benefits in income tax expense. The Company files income tax
returns in the U.S federal tax jurisdiction, the states of Minnesota,
Massachusetts and California, and several jurisdictions outside the U.S. U.S.
tax returns for 2006 and subsequent years remain open to examination by the
tax authorities. The Company's major non-U.S. tax jurisdictions are the
United Kingdom, France and Germany, which have tax years open to examination
for 2005 and subsequent years, and China which has calendar year 2009 open to
examination.

                                  35



K.  Earnings per share:

The number of shares used to calculate earnings per share are as follows (in
thousands, except per share data):

                                                   Year Ended June 30,
                                                 2009      2008      2007
                                               --------  --------  --------
Net earnings used for basic and diluted
 earnings per share                            $105,242  $103,558  $ 85,111
                                               ========  ========  ========
Weighted average shares used in
 basic computation                               37,802    39,139    39,406
Dilutive stock options and warrants                  98       108       107
                                               --------  --------  --------
Weighted average shares used in
 diluted computation                             37,900    39,247    39,513
                                               ========  ========  ========

Basic EPS                                      $   2.78  $   2.65  $   2.16
Diluted EPS                                    $   2.78  $   2.64  $   2.15

The dilutive effect of stock options and warrants in the above table excludes
all options for which the aggregate exercise proceeds exceeded the average
market price for the period. The number of potentially dilutive option shares
excluded from the calculation was 26,000, 39,000 and 13,000 at June 30, 2009,
2008 and 2007, respectively.


L.  Segment information:

The Company has three reportable operating segments based on the nature of
products and geographic location: biotechnology, R&D Europe and hematology.
The biotechnology segment consists of R&D Systems' Biotechnology Division,
BiosPacific and R&D China, which develop, manufacture and sell biotechnology
research and diagnostic products world-wide. R&D Europe distributes
Biotechnology Division products throughout Europe. The hematology segment
develops and manufactures hematology controls and calibrators for sale world-
wide. No customer accounted for more than 10% of the Company's net sales for
the years ended June 30, 2009, 2008 and 2007.

The accounting policies of the segments are the same as those described in
Note A. In evaluating segment performance, management focuses on sales and
earnings before taxes.

Following is financial information relating to the operating segments (in
thousands):

                                                   Year Ended June 30,
                                                 2009      2008      2007
                                               --------  --------  --------
External sales
 Biotechnology                                 $173,913  $165,663  $146,614
 R&D Europe                                      72,541    75,735    61,766
 Hematology                                      17,502    16,022    15,102
                                               --------  --------  --------
Consolidated net sales                         $263,956  $257,420  $223,482
                                               ========  ========  ========
Earnings before taxes
 Biotechnology                                 $123,794  $115,856  $102,398
 R&D Europe                                      32,245    39,893    27,792
 Hematology                                       6,143     4,258     4,498
                                               --------  --------  --------
 Segment earnings before taxes                  162,182   160,007   134,688
 Other                                           (6,819)   (6,176)   (5,757)
                                               --------  --------  --------
Consolidated earnings before taxes             $155,363  $153,831  $128,931
                                               ========  ========  ========
Assets
 Biotechnology                                 $222,534  $244,659  $216,282
 R&D Europe                                     139,302   139,871   108,110
 Hematology                                      15,804    18,989    23,189
 Intersegment eliminations                       (6,391)   (5,462)   (3,000)
                                               --------  --------  --------
 Segment assets                                 371,249   398,057   344,581
 Other                                          100,756   109,312   110,263
                                               --------  --------  --------
Consolidated assets                            $472,005  $507,369  $454,844
                                               ========  ========  ========
Depreciation and amortization
 Biotechnology                                 $  4,085  $  3,713  $  3,702
 R&D Europe                                         417       329       261
 Hematology                                         229       231       267
                                               --------  --------  --------
 Segment depreciation and amortization            4,731     4,273     4,230
 Other                                            3,035     2,986     2,764
                                               --------  --------  --------
Consolidated depreciation and amortization     $  7,766  $  7,259  $  6,994
                                               ========  ========  ========
Capital purchases
 Biotechnology                                 $  3,305  $  5,563  $  5,644
 R&D Europe                                         196     8,517       247
 Hematology                                          94        76       207
                                               --------  --------  --------
 Segment capital purchases                        3,595    14,156     6,098
 Other                                            2,961     2,209     1,978
                                               --------  --------  --------
Consolidated capital purchases                 $  6,556  $ 16,365  $  8,076
                                               ========  ========  ========

The other reconciling items include the results of unallocated corporate
expenses and assets, and the Company's share of losses from its equity method
investees.

                                       36


Following is financial information relating to geographic areas (in
thousands):

                                                   Year Ended June 30,
                                                 2009      2008      2007
                                               --------  --------  --------
External sales
 United States                                 $147,271  $141,443  $127,695
 Europe                                          79,381    81,628    66,492
 Other areas                                     37,304    34,349    29,295
                                               --------  --------  --------
Total external sales                           $263,956  $257,420  $223,482
                                               ========  ========  ========
Long-lived assets
 United States                                 $ 93,571  $ 93,612  $ 90,965
 Europe                                           7,214     8,992       867
 Other areas                                         98       112        47
                                               --------  --------  --------
Total long-lived assets                        $100,883  $102,716  $ 91,879
                                               ========  ========  ========

External sales are attributed to countries based on the location of the
customer/distributor. Long-lived assets are comprised of land, buildings and
improvements, equipment, and other assets, net of accumulated depreciation
and amortization.


M.  Benefit plans:

Profit sharing plans: The Company has Profit Sharing and Savings Plans for
non-union U.S. employees, which conform to IRS provisions for 401(k) plans.
The Company may make profit sharing contributions at the discretion of the
Board of Directors. Operations have been charged for contributions to the
plans of $617,000, $1.6 million and $1.4 million for the years ended June 30,
2009, 2008 and 2007, respectively. The Company operates a defined
contribution pension plan for employees of R&D Europe. Operations have been
charged for contributions to the plan of $154,000, $174,000 and $153,000 for
the years ended June 30, 2009, 2008 and 2007, respectively.

Stock bonus plans: The Company also has Stock Bonus Plans covering non-union
employees. The Company may make contributions to the plans in the form of
common stock, cash or other property at the discretion of the Board of
Directors. The Company purchases its common stock at market value for
contribution to the plans. For the years ended June 30, 2009, 2008 and 2007
operations have been charged for contributions to the plan of $647,000, $1.7
million and $1.5 million, respectively.

Performance incentive program: Under certain employment agreements with
executive officers, the Company recorded bonuses of $76,000, $87,000 and
$130,000 for the years ended June 30, 2009, 2008 and 2007, respectively. In
addition, options for 981, 2,217 and 2,505 shares of common stock were
granted to the executive officers during fiscal 2009, 2008 and 2007,
respectively.


N.  Supplemental disclosures of cash flow information and noncash investing
and financing activities:

The Company paid cash for the following items (in thousands):

                                                   Year Ended June 30,
                                                 2009      2008      2007
                                               --------  --------  --------
Income taxes paid                              $ 50,875  $ 49,098  $ 46,192
Interest paid                                        --        --     1,090

In fiscal 2009, stock options for 785 shares of common stock were exercised
by the surrender of 348 shares of common stock at fair market value of
$22,000. In fiscal 2008, stock options for 1,948 shares of common stock were
exercised by the surrender of 1,101 shares of common stock at fair market
value of $68,000. In fiscal 2007, stock options for 3,000 shares of common
stock were exercised by the surrender of 1,810 shares of common stock at fair
market value of $111,000.


O.  Accumulated other comprehensive income:

Accumulated other comprehensive (loss) income consists of (in thousands):

                                                   Year Ended June 30,
                                                 2009      2008      2007
                                               --------  --------  --------
Foreign currency translation adjustments       $ (8,035) $ 13,733  $ 13,400
Net unrealized gain (loss) on available-
 for-sale investments                               558    (1,605)     (476)
                                               --------  --------  --------
                                               $ (7,477) $ 12,128  $ 12,924
                                               ========  ========  ========


                                   37


          REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Board of Directors and Stockholders
TECHNE Corporation:

We have audited the accompanying consolidated balance sheets of TECHNE
Corporation and subsidiaries (the Company) as of June 30, 2009 and 2008, and
the related consolidated statements of earnings, stockholders' equity and
comprehensive income (loss), and cash flows for each of the years in the
three-year period ended June 30, 2009. We also have audited TECHNE
Corporation's internal control over financial reporting as of June 30, 2009,
based on criteria established in Internal Control - Integrated Framework
issued by the Committee of Sponsoring Organizations of the Treadway
Commission (COSO). TECHNE Corporation's management is responsible for these
consolidated financial statements, for maintaining effective internal control
over financial reporting, and for its assessment of the effectiveness of
internal control over financial reporting, included in Management's Annual
Report on Internal Control over Financial Reporting. Our responsibility is to
express an opinion on these consolidated financial statements and an opinion
on the Company's internal control over financial reporting based on our
audits.

We conducted our audits in accordance with the standards of the Public
Company Accounting Oversight Board (United States). Those standards require
that we plan and perform the audits to obtain reasonable assurance about
whether the financial statements are free of material misstatement and
whether effective internal control over financial reporting was maintained in
all material respects. Our audits of the consolidated financial statements
included examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. Our audit of internal control over
financial reporting included obtaining an understanding of internal control
over financial reporting, assessing the risk that a material weakness exists,
and testing and evaluating the design and operating effectiveness of internal
control based on the assessed risk. Our audits also included performing such
other procedures as we considered necessary in the circumstances. We believe
that our audits provide a reasonable basis for our opinions.

A company's internal control over financial reporting is a process designed
to provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external purposes
in accordance with generally accepted accounting principles. A company's
internal control over financial reporting includes those policies and
procedures that (1) pertain to the maintenance of records that, in reasonable
detail, accurately and fairly reflect the transactions and dispositions of
the assets of the company; (2) provide reasonable assurance that transactions
are recorded as necessary to permit preparation of financial statements in
accordance with generally accepted accounting principles, and that receipts
and expenditures of the company are being made only in accordance with
authorizations of management and directors of the company; and (3) provide
reasonable assurance regarding prevention or timely detection of unauthorized
acquisition, use, or disposition of the company's assets that could have a
material effect on the consolidated financial statements.

Because of its inherent limitations, internal control over financial
reporting may not prevent or detect misstatements. Also, projections of any
evaluation of effectiveness to future periods are subject to the risk that
controls may become inadequate because of changes in conditions, or that the
degree of compliance with the policies or procedures may deteriorate.

In our opinion, the consolidated financial statements referred to above
present fairly, in all material respects, the financial position of TECHNE
Corporation and subsidiaries as of June 30, 2009 and 2008, and the results of
their operations and their cash flows for each of the years in the three-year
period ended June 30, 2009, in conformity with U.S. generally accepted
accounting principles. Also in our opinion, TECHNE Corporation maintained, in
all material respects, effective internal control over financial reporting as
of June 30, 2009, based on criteria established in Internal Control -
Integrated Framework issued by the Committee of Sponsoring Organizations of
the Treadway Commission.

/s/ KPMG LLP

Minneapolis, Minnesota
August 28, 2009



                                      38



        ITEM 9.  CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
                     ACCOUNTING AND FINANCIAL DISCLOSURE

None.


                      ITEM 9A.  CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

As of the end of the period covered by this report, the Company conducted an
evaluation, under the supervision and with the participation of the principal
executive officer and principal financial officer, of the Company's
disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-
15(e) under the Securities Exchange Act of 1934 (the "Exchange Act")).  Based
on this evaluation, the principal executive officer and principal financial
officer concluded that the Company's disclosure controls and procedures are
effective to ensure that information required to be disclosed by the Company
in reports that it files or submits under the Exchange Act is recorded,
processed, summarized and reported within the time periods specified in
Securities and Exchange Commission rules and forms.

Changes in Internal Controls

There was no change in the Company's internal control over financial
reporting during the Company's most recently completed fiscal quarter that
has materially affected, or is reasonably likely to materially affect, the
Company's internal control over financial reporting.

Management's Annual Report on Internal Control over Financial Reporting

The management of the Company is responsible for establishing and maintaining
adequate internal control over financial reporting, as such term is defined
in Exchange Act Rule 13a-15(f). As of June 30, 2009, management, under the
supervision of the chief executive officer and chief financial officer,
assessed the effectiveness of the Company's internal control over financial
reporting based on the criteria for effective internal control over financial
reporting established in "Internal Control - Integrated Framework," issued by
the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Based on the assessment, management determined that the Company maintained
effective internal control over financial reporting as of June 30, 2009.

KPMG LLP, our independent registered public accounting firm, has issued an
attestation report on the effectiveness of the Company's internal control
over financial reporting.


                       ITEM 9B.  OTHER INFORMATION

None.




                                 PART III


     ITEM 10.  DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

Other than "Executive Officers of the Company" which is set forth at the end
of Part I of this Annual Report on Form 10-K, the information required by
Item 10 is incorporated herein by reference to the sections entitled
"Election of Directors", "Corporate Governance" and "Compliance With Section
16(a) of the Securities Exchange Act" in the Company's Proxy Statement for
its 2009 Annual Meeting of Shareholders which will be filed with the
Securities and Exchange Commission pursuant to Regulation 14A within 120 days
after the close of the fiscal year for which this report is filed.


                    ITEM 11.  EXECUTIVE COMPENSATION

The information required by Item 11 is incorporated herein by reference to
the section entitled "Corporate Governance" and "Executive Compensation
Discussion and Analysis" in the Company's Proxy Statement for its 2009 Annual
Meeting of Shareholders which will be filed with the Securities and Exchange
Commission pursuant to Regulation 14A within 120 days after the close of the
fiscal year for which this report is filed.


                                    39


             ITEM 12.  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL
           OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

Information about the Company's equity compensation plans at June 30, 2009 is
as follows (shares in thousands):

                                                            Number of
                           Number of         Weighted-      Securities
                           Securities to be  Average        Remaining
                           Issued Upon       Exercise Price Available for
                           Exercise of       of Outstanding Future Issuance
                           Outstanding       Options        Under Equity
                           Options, Warrants Warrants and   Compensation
Plan Category              and Rights        Rights         Plans
-------------------------- ----------------- -------------- ----------------
Equity compensation plans
 approved by
 Stockholders (1)                398            $49.49          3,191
Equity compensation plans
 not approved
 by Stockholders                  --                --             --

(1)	Includes the Company's 1997 Incentive Stock Option Plan and 1998
Nonqualified Stock Option Plan.

The remaining information required by Item 12 is incorporated by reference to
the sections entitled "Principal Shareholders" and "Management Shareholdings"
in the Company's Proxy Statement for its 2009 Annual Meeting of Shareholders
which will be filed with the Securities and Exchange Commission pursuant to
Regulation 14A within 120 days after the close of the fiscal year for which
this report is filed.


    ITEM 13.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR
                             INDEPENDENCE

The information required by Item 13 is incorporated by reference to the
sections entitled "Corporate Governance" in the Company's Proxy Statement for
its 2009 Annual Meeting of Shareholders which will be filed with the
Securities and Exchange Commission pursuant to Regulation 14A within 120 days
after the close of the fiscal year for which this report is filed.


            ITEM 14.  PRINCIPAL ACCOUNTING FEES AND SERVICES

The information required by Item 14 is incorporated herein by reference to
the section entitled "Audit Matters" in the Company's Proxy Statement for its
2009 Annual Meeting of Shareholders which will be filed with the Securities
and Exchange Commission pursuant to Regulation 14A within 120 days after the
close of the fiscal year for which this report is filed.



                                 PART IV

       ITEM 15.  EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

A. (1)  List of Financial Statements.

     The following Consolidated Financial Statements are filed as part of
     This Annual Report on Form 10-K:

     Consolidated Statements of Earnings for the Years Ended
          June 30, 2009, 2008 and 2007

     Consolidated Balance Sheets as of June 30, 2009 and 2008

     Consolidated Statements of Stockholders' Equity and Comprehensive
          Income for the Years Ended June 30, 2009, 2008 and 2007

     Consolidated Statements of Cash Flows for the Years Ended
          June 30, 2009, 2008 and 2007

     Notes to Consolidated Financial Statements for the Years
          Ended June 30, 2009, 2008 and 2007

     Report of Independent Registered Public Accounting Firm


A. (2)  Financial Statement Schedules.

     All financial statement schedules are omitted because they are not
     applicable, not material or the required information is shown in the
     financial statements or notes thereto.

A. (3)  Exhibits.

     See "Exhibit Index" immediately following signature page.

                                    40


                                SIGNATURES

Pursuant to the requirements of Section 13 or 15 (d) of the Securities
Exchange Act of 1934, the Registrant has duly caused this Report to be signed
on its behalf by the undersigned, thereunto duly authorized.

                                          TECHNE CORPORATION

Date:  August 28, 2009                    /s/ Thomas E. Oland
                                          --------------------------------
                                          By:  Thomas E. Oland
                                          Its:   President


Pursuant to the requirements of the Securities Exchange Act of 1934, this
Report has been signed by the following persons on behalf of the Registrant
and in the capacities and on the dates indicated.

Date                                      Signature and Title
----                                      --------------------------------
August 28, 2009                           /s/ Thomas E. Oland
                                          --------------------------------
                                          Thomas E. Oland
                                          Chairman of the Board, President,
                                          Treasurer, Chief Executive Officer
                                          and Director
                                          (principal executive officer)

August 28, 2009                           /s/ Roger C. Lucas, Ph.D.
                                          --------------------------------
                                          Dr. Roger C. Lucas
                                          Vice Chairman and Director

August 28, 2009                           /s/ Howard V. O'Connell
                                          --------------------------------
                                          Howard V. O'Connell, Director

August 28, 2009                           /s/ G. Arthur Herbert
                                          --------------------------------
                                          G. Arthur Herbert, Director

August 28, 2009                           /s/ Randolph C. Steer, Ph.D., M.D.
                                          --------------------------------
                                          Dr. Randolph C. Steer, Director

August 28, 2009                           /s/ Robert V. Baumgartner
                                          --------------------------------
                                          Robert V. Baumgartner, Director

August 28, 2009                           /s/ Charles A. Dinarello, M.D.
                                          --------------------------------
                                          Dr. Charles A. Dinarello, Director

August 28, 2009                           /s/ Karen A. Holbrook, Ph.D.
                                          --------------------------------
                                          Dr. Karen A. Holbrook, Director

August 28, 2009                           /s/ John L. Higgins
                                          --------------------------------
                                          John L. Higgins, Director

August 28, 2009                           /s/ Gregory J. Melsen
                                          --------------------------------
                                          Gregory J. Melsen,
                                          Chief Financial Officer
                                          (principal financial officer)

August 28, 2009                           /s/ Kathleen M. Backes
                                          --------------------------------
                                          Kathleen M. Backes, Controller
                                    41


                              EXHIBIT INDEX
                  for Form 10-K for the 2009 Fiscal Year
Exhibit
Number  Description
------- -----------------
3.1     Restated Articles of Incorporation of Company, as amended to date
        --incorporated by reference to Exhibit 3.1 of the Company's Form
        10-Q for the quarter ended September 30, 2000*

3.2     Restated Bylaws of the Company, as amended to date--incorporated by
        reference to Exhibit 3.1 of the Company's Form 8-K, dated November
        14, 2007*

10.1**  Employee Agreement with Respect to Inventions, Proprietary
        Information, and Unfair Competition with Thomas E. Oland--
        incorporated by reference to Exhibit 10.2 of the Company's Form 10,
        dated October 27, 1988*

10.2**  Company's Profit Sharing Plan--incorporated by reference to Exhibit
        10.6 of the Company's Form 10, dated October 27, 1988*

10.3**  Company's Stock Bonus Plan--incorporated by reference to Exhibit 10.7
        of the Company's Form 10, dated October 27, 1988*

10.4**  1997 Incentive Stock Option Plan--incorporated by reference to
        Exhibit 10.24 of the Company's Form 10-K for the year ended June 30,
        1997*

10.5**  Form of Stock Option Agreement for 1997 Incentive Stock Option Plan--
        incorporated by reference to Exhibit 10.25 of the Company's Form 10-K
        for the year ended June 30, 1997*

10.6    Investment Agreement between ChemoCentryx, Inc. and Techne
        Corporation dated November 18, 1997--incorporated by reference to
        Exhibit 10.1 of the Company's Form 10-Q for the quarter ended
        December 31, 1997*

10.7**  1998 Nonqualified Stock Option Plan--incorporated by reference to
        Exhibit 10.1 of the Company's Form 10-Q for the quarter ended
        September 30, 1998*

10.8**  Form of Stock Option Agreement for 1998 Nonqualified Stock Option
        Plan--incorporated by reference to Exhibit 10.2 of the Company's Form
        10-Q for the quarter ended September 30, 1998*

10.9    Investment Agreement between the Company and Discovery Genomics, Inc.
        dated August 2, 2001--incorporated by reference to Exhibit 10.30 of
        the Company's for 10-K for the year ended June 30, 2001.*

10.10   Research and License Agreement between R&D Systems and Discovery
        Genomics, Inc. dated August 2, 2001--incorporated by reference to
        Exhibit 10.31 of the Company's 10-K for the year ended June 30, 2001.*

10.11   Investors Rights Agreement dated February 2, 2001 among ChemoCentryx,
        Inc., the Company and certain investors amending the Investment
        Agreement between ChemoCentryx, Inc. and the Company dated November
        18, 1997--incorporated by reference to Exhibit 10.32 of the Company's
        10-K for the year ended June 30, 2001.*

10.12   Letter Agreement dated February 2, 2001 between ChemoCentryx, Inc. and
        the Company amending the terms of warrants held by the Company--
        incorporated by reference to Exhibit 10.33 of the Company's 10-K for
        the year ended June 30, 2001.*

------------
*Incorporated by reference; SEC File No. 000-17272
**Management contract or compensatory plan or arrangement

                                  42

Exhibit
Number  Description
------- -----------------
10.13   Correction/Amendment to Investment Agreement dated April 23, 2002,
        between Techne Corporation, Discovery Genomics, Inc. and Roger
        Lucas--incorporated by reference to Exhibit 10.39 of the Company's
        10-K for the year ended June 30, 2002.*

10.14** Form of Indemnification Agreement entered into with each director and
        executive officer of the Company--incorporated by reference to
        Exhibit 10.1 of the Company's 10-Q for the quarter ended December 31,
        2002.*

10.15** Employment Agreement, dated December 17, 2004, with Gregory J.
        Melsen--incorporated by reference to Exhibit 10.1 of the Company's
        8-K dated December 20, 2004.*

10.16** Description of Executive Officer's Incentive Bonus Plan--incorporated
        by reference to Exhibit 10.30 of the Company's 10-K for the year
        ended June 30, 2005.*

10.17   Amended and Restated Investors Rights Agreement dated June 13, 2006
        among ChemoCentryx, Inc and the Company and certain investors--
        incorporated by reference to Exhibit 10.31 of the Company's 10-K for
        the year ended June 30, 2006.*

10.18** Employment Agreement, dated January 30, 2008, with Marcel Veronneau--
        incorporated by reference to Exhibit 10.1 of the Company's 10-Q dated
        December 31, 2007.*


21      Subsidiaries of the Company:

                                                State/Country of
        Name                                    Incorporation
        ----                                    -----------------
        Research and Diagnostic Systems, Inc.
          (R&D Systems)                            Minnesota
        BiosPacific, Inc.	                        Minnesota
        R&D Systems Europe Ltd.                    United Kingdom
        R&D Systems GmbH                           Germany
	     R&D Systems China Co. Ltd.		       China

23	Consent of KPMG LLP, Independent Registered Public Accounting Firm

31.1	Certification of Chief Executive Officer pursuant to Section 302 of the
        Sarbanes-Oxley Act of 2002.

31.2	Certification of Chief Financial Officer pursuant to Section 302 of the
        Sarbanes-Oxley Act of 2002.

32.1    Certification of Chief Executive Officer pursuant to Section 906 of the
        Sarbanes-Oxley Act of 2002.

32.2	Certification of Chief Financial Officer pursuant to Section 906 of the
        Sarbanes-Oxley Act of 2002.


-------------
*Incorporated by reference; SEC File No. 000-17272
**Management contract or compensatory plan or arrangement

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