David Green Chane Graziano Bryce Chicoyne President CEO CFO dgreen@harvardbioscience.com cgraziano@harvardbioscience.com bchicoyne@harvardbioscience.com Tel: 508 893 8999 Fax: 508 429 8478

HBIO Reports Record Revenue and EPS

For the Fourth Quarter and Full Year 2007

Holliston, MA, February 28,

2008 / Harvard Bioscience, Inc. (Nasdaq: HBIO), a global developer, manufacturer, and marketer of a broad range of tools to advance life science research, today reported unaudited financial highlights for the quarter and full year ended

Fourth Quarter Reported Results

Revenues from our continuing operations for the three months ended December 31, 2007 were $24.5 million, an increase of 13.1% compared to revenues of $21.7 million for the three months ended December 31,

2006. Income from continuing operations, as measured under U.S. generally accepted accounting principles ( GAAP ), was $2.3 million, or $0.07 per diluted share, for the three months ended December 31, 2007 compared to $2.0 million, or

$0.06 per diluted share, for the same period in 2006. Non-GAAP adjusted income from continuing operations was $3.1 million, or $0.10 per diluted share, for the three months ended December 31, 2007 compared to $2.4 million, or $0.08 per diluted

share, for the same period in 2006. See Exhibits 3 and 4 for reconciliations of GAAP to non-GAAP adjusted income from continuing operations and GAAP earnings per diluted share from continuing operations to non-GAAP adjusted earnings per diluted

share from continuing operations.

Full Year Reported Results

Revenues from our continuing operations for the year ended December 31, 2007 were $83.4 million, an increase of 9.5% compared to revenues of $76.2 million for the year ended December 31, 2006. Income from

continuing operations, as measured under GAAP, was $7.6 million, or $0.24 per diluted share, for the year ended December 31, 2007 compared to $6.6 million, or $0.21 per diluted share, for the same period in 2006. Non-GAAP adjusted income from

continuing operations was $9.7 million, or $0.31 per diluted share, for the year ended December 31, 2007 compared to $8.1 million, or $0.26 per diluted share, for the same period in 2006. See Exhibits 3 and 4 for reconciliations of GAAP to

non-GAAP adjusted income from continuing operations and GAAP earnings per diluted share from continuing operations to non-GAAP adjusted earnings per diluted share from continuing operations.

Overall 2007 was a successful year for Harvard Bioscience, as our continuing operations grew

revenues over 9% and non-GAAP adjusted earnings per diluted share 19%, to record levels of $83.4 million and to $0.31. Major accomplishments included the completion of our acquisition of Panlab, the launch of our micro liter spectrophotometer

through GE Healthcare and the divesture of a significant portion of our Capital Equipment Business segment, said Chane Graziano, CEO of Harvard Bioscience.

Looking forward the Company has outlined five major initiatives that we expect will have a positive impact on our performance in 2008. These initiatives include:

We believe that with these initiatives we will generate revenues between $94.0 million and $96.0 million and adjusted non-GAAP earnings per diluted share

from continuing operations between $0.36 and $0.38 for 2008. For the first quarter of 2008, we expect to report revenues of approximately $23.0 million and adjusted non-GAAP earnings per diluted share from continuing operations of approximately

$0.08. This revenue and non-GAAP earnings per diluted share excludes the impact of any future acquisitions, however, we intend to continue making acquisitions as part of our overall growth strategy.

Mr. Graziano continued, Building on our 2008 initiatives and our renewed focus on our long-term growth through tuck-under acquisitions, the

internal development of new products and the strengthening of our direct marketing, we are raising our outlook on our three to five year growth model for adjusted non-GAAP earnings per diluted share from continuing operations from an average of

15-20% to 20-25% per year.

Our revenue guidance is at December 31, 2007 exchange rates and the non-GAAP adjusted earnings per

diluted share from continuing operations guidance excludes amortization of intangible assets, the impact of future acquisitions in 2008, the impact of any restructuring, the impact of stock-based compensation expense recognized under SFAS

No. 123(R), and the impact of tax benefits associated with filing consolidated tax returns for continuing and discontinued businesses. See the table below for a reconciliation of our estimated non-GAAP adjusted earnings per diluted share from

continuing operations to our estimated GAAP adjusted earnings per diluted share from continuing operations. See Exhibits 3 and 4 for reconciliations of GAAP to non-GAAP adjusted income from continuing operations and GAAP earnings per diluted share

to non-GAAP adjusted earnings per diluted share from continuing operations.

Reconciliation of Guidance for US GAAP Earnings per Diluted Share From Continuing Operations to

Adjusted Non-GAAP Earnings per Diluted Share From Continuing Operations

A - Assumes no additional acquisitions.

B - Assumes no additional 2008 stock option grants.

C - Does not include the tax impact of completing the divestiture of our Capital Equipment Business.

Operating Results for Continuing Operations

Three months ended December 31, 2007 compared to three months

ended December 31, 2006:

Revenues increased $2.8 million, or 13.1%, to $24.5 million for the three months ended

December 31, 2007 compared to $21.7 million for the same period in 2006. The increase in revenue is primarily due to revenues of $2.9 million from our recently acquired Panlab subsidiary and to favorable foreign exchange on sales denominated in

foreign currencies of $0.7 million, or 3.1%, during the fourth quarter of 2007. Also contributing to the increase in revenues, our Biochrom subsidiary had organic revenue growth of $0.8 million, or 16.2%, primarily due to sales of our new microliter

spectrophotometer. In addition, our Harvard Apparatus reporting unit grew sales in the U.S. industrial and academic markets a combined 7.1%. This revenue growth was offset by large one-off orders in the fourth quarter of 2006, which were not

repeated in 2007, including a large tender order for our Anthos plate readers from China.

Cost of product revenues increased $1.9 million,

or 17.0%, to $13.0 million for the three months ended December 31, 2007 from $11.1 million for the three months ended December 31, 2006. The increase in cost of product revenues is primarily due to increases of $1.8 million attributable to

our recently acquired Panlab subsidiary and $0.4 million attributable to changes in foreign exchange rates. Gross profit as a percentage of revenues decreased to 47.1% for the three months ended December 31, 2007 compared with 48.9% for the

same period in 2006. The decrease in gross profit as a percentage of revenues was primarily due to sales from our Panlab subsidiary, which sells at lower gross margins than our historical consolidated gross margins due to Panlab s mix of

distributed products compared to manufactured products. The impact of Panlab on gross margin percentage was 1.1%.

expenses increased $0.2 million, or 7.3%, to $2.9 million for the three months ended December 31, 2007 compared to $2.7 million for the three months ended December 31, 2006. This increase was primarily due to expenses from our recently

acquired Panlab subsidiary of $0.2 million and to an increase due to changes in foreign exchange rates of $0.1 million.

General and administrative expenses were $4.4 million for the three months ended December 31, 2007

and 2006. During the quarter, general and administrative expenses increased $0.2 million due to our recent acquisition of Panlab, $0.1 million due to changes in foreign exchange rates and $0.1 million due to increased stock-based compensation. These

increases were offset by decreases in pension related expenses of $0.2 million and in bonus expense of approximately $0.1 million.

Research and development expenses were $1.1 million, an increase of $0.3 million for the three months ended December 31, 2007 compared to $0.8 million for the three months ended December 31, 2006. The increase in research and

development expenses was primarily due to costs associated with recently developed products and to our recent acquisition of Panlab.

December 31, 2007 compared to year ended December 31, 2006:

Revenues increased $7.2 million, or 9.5%, to $83.4 million

for the year ended December 31, 2007 compared to $76.2 million for the same period in 2006. The increase in revenue is primarily due to revenues in 2007 of $2.9 million from our Panlab subsidiary acquired in October 2007 and an increase in

sales of $1.5 million from our Anthos product line acquired in June 2006. In addition, revenues increased by $3.0 million, or 3.9%, during 2007 due to favorable foreign exchange on sales denominated in foreign currencies.

Cost of product revenues increased $5.1 million, or 13.3%, to $43.2 million for the year ended December 31, 2007 from $38.1 million for the year

ended December 31, 2006. The increase in cost of product revenues is mainly due to the increase in revenues resulting from the acquisition of our Panlab subsidiary acquired in October 2007 and our Anthos product line acquired in June 2006. In

addition, cost of product revenues increased by $1.8 million due to an increase in foreign exchange rates. Gross profit as a percentage of revenues decreased to 48.3% for the year ended December 31, 2007 compared with 50.0% for the same period

in 2006. The decrease in gross profit as a percentage of revenues was primarily due to sales from our Panlab subsidiary, which sells at lower gross margins than our historical consolidated gross margins due to Panlab s mix of distributed

products compared to manufactured products, and from sales from our lower margin products and sales channels, primarily from our Anthos product lines.

Sales and marketing expenses increased $0.9 million, or 9.0%, to $10.4 million for the year ended December 31, 2007 compared to $9.5 million for the year ended December 31, 2006. This increase was primarily

due to an increase of $0.3 million due to changes in foreign exchange rates, expenses from our recently acquired Panlab subsidiary of $0.2 million and other employee related costs of $0.4 million.

General and administrative expenses were $14.8 million, a decrease of $0.2 million, or 1.4%, for the year

ended December 31, 2007 compared to $15.0 million for the year ended December 31, 2006. The decrease in general and administrative expenses was primarily due to decreases in bonus expense of $0.7 million, professional fees of $0.3 million

and pension expense of $0.2 million. This decrease was partially offset by expenses from our recently acquired Panlab subsidiary of $0.2 million and increases of $0.3 million due to changes in foreign exchange rates and $0.4 million due to increased

stock-based compensation.

Research and development expenses were $3.7 million, an increase of $0.6 million, or 17.6%, for

the year ended December 31, 2007 compared to $3.2 million for the year ended December 31, 2006. The increase in research and development expenses was primarily due to consulting and other costs associated with recently developed products

of $0.2 million, an increase of $0.1 million due to our recent acquisition of Panlab and an increase of $0.1 million due to changes in foreign exchange rates.

We ended the fourth quarter of 2007 with cash and cash equivalents of $18.2

million compared to cash and cash equivalents of $9.8 million at December 31, 2006. As of December 31, 2007, $17.9 million was held by our continuing operations and $0.3 million was held by our discontinued operations. As of

December 31, 2007, we had $5.5 million outstanding on our revolving credit facility compared to $3.0 million at December 31, 2006. In addition, at December 31, 2007 we had $2.3 million in debt we assumed in our acquisition of Panlab.

Trade receivables were $14.8 million and inventories were $15.0 million as of December 31, 2007. Outstanding days of sales were 57

days for the three months ended December 31, 2007 and 2006. Inventory turns were 3.6 times for the three months ended December 31, 2007 compared to 4.1 times for the same period of 2006. Inventory turns are down primarily due to the

building of inventories in anticipation of certain new product launches. In addition, both our accounts receivable and inventory balances increased due to the acquisition of Panlab.

Discontinued Operations

During the quarter ended September 30, 2005, the Company

announced plans to divest its Capital Equipment Business segment. The decision to divest this business segment was based on the fact that market conditions for the Capital Equipment Business had been such that this business did not meet the

Company s expectations and the decision to focus Company resources on the Apparatus and Instrumentation Business segment. As a result, we began reporting the Capital Equipment Business segment as a discontinued operation in the third quarter of

In November 2007, the Company completed the sale of the assets of its Genomic Solutions Division and the

stock of its Belgian subsidiary, MAIA Scientific, both of which were part of its Capital Equipment Business Segment, to Digilab, Inc. The purchase price paid by Digilab under the terms of the Asset Purchase Agreement consists of $1,000,000 in cash

plus additional consideration in the form of an earn-out based on 20% of the revenue generated by the acquired business as it is conducted by Digilab over a three-year period post-transaction. Any earn-out amounts will be evidenced by interest

bearing promissory notes due on November 30, 2012. During the fourth quarter, we recorded a loss on sale of $3.1 million. There was no value ascribed to the contingent consideration from the earn-out agreement, as realization is uncertain.

The loss from discontinued operations, net of tax, was approximately $0.5 million for the three months ended December 31, 2007

compared to a loss of $4.3 million for the same period in 2006. The loss from discontinued operations, net of tax, was approximately $5.9 million for the year ended December 31, 2007 compared to a loss of $9.0 million for the same period in

2006. The loss from discontinued operations, net of tax includes the operating results from our former Genomic Solutions Division and MAIA Scientific subsidiary, and our current Union Biometrica US and German subsidiaries.

Conference Call Details

announced, management will host a conference call to discuss fourth quarter 2007 results and business highlights and outlook, which will be simultaneously broadcast over the Internet and can be accessed through the Harvard Bioscience, Inc. web site.

In addition, management may answer one or more questions concerning business and financial developments and trends and other business and financial matters affecting the Company, some of the responses to which may contain information that has not

been previously disclosed. The conference call will begin at 5:30 p.m. Boston time on Thursday, February 28, 2008. To listen to the conference call, log on to our website at: www.harvardbioscience.com and click on the Earnings Call icon.

The live conference call is also accessible by dialing 800-901-5259 and referencing the pass code of 53502044. A replay of this conference call will be available from 7:30 p.m. on February 28, 2008 through March 6, 2008 and

will be accessible by dialing 888-286-8010 and referencing the pass code of "72436524 . This earnings release, as well as any material financial and other statistical information presented on the call which is not included in this earnings

release, is available on our website by clicking on the Press Releases icon. If you are unable to listen to the live conference call, the call, this press release and any related financial or statistical information will be archived on our web site

under the Press Releases icon or Earnings Call icon, as appropriate.