TAFT APPLAUDS LABONE, INC. FOR OHIO EXPANSION
Medical Lab Expansion Means New Jobs for Cincinnati

FOR IMMEDIATE RELEASE
April 15, 2004

Columbus, OH -- Governor Bob Taft today applauded LabOne, Inc. of Lenexa Kansas for choosing Cincinnati for an expansion of its medical laboratory testing operations. The $21 million project is expected to create 400 jobs and retain 562 positions.

“I’d like to welcome LabOne to Ohio and applaud their decision to bring so many high-paying jobs to Cincinnati,” said Taft. “Our qualified workforce and easy access to the company’s East coast marketplace are the perfect competitive combination.”

“We are excited to announce the selection of Cincinnati Ohio for the construction of our new laboratory facility,” said W. Thomas Grant II, chairman and CEO of LabOne. “We appreciate the efforts of Governor Taft, members of the Ohio Department of Development, Mayor Luken and the members of the Cincinnati Department of Economic Development for the construction of an incentive package based on anticipated growth of testing services provided from this new facility. We look forward to the announcement of a site and groundbreaking in the near future.”

In early 2004, LabOne purchased Health Alliance Laboratory of Cincinnati, creating LabAlliance, Inc., a wholly owned subsidiary of LabOne. Since that time, Ohio has been in competition with Kentucky for the expansion project. LabOne, Inc. provides laboratory and related information services to various users, including: risk assessment information services to life insurance companies; diagnostic laboratory healthcare services to HMOs, health insurance providers, and physicians and patients; and drug testing services and related products to employers. Construction of a new facility is expected in the near future and the expansion of jobs is expected to take place over a three year period ending in 2008. The average hourly employee salary is expected to be $16 plus benefits.

According to State Development Director Bruce Johnson, the Ohio Department of Development put together an aggressive incentive package to encourage the expansion project. “We continue to be aggressive in pursuing companies like LabOne, that are critical to securing Ohio’s place in the knowledge economy.”

The incentive package offered by Development includes:

• A 75 percent Job Creation Tax Credit for 10 years (valued at up to $3.3 million)
  A $400,000 training grant
  A Business Development Grant for $500,000

  
  

• Financing of up to $9.4 million through the Direct Loan and Enterprise Zone Bond programs

In addition, if LabOne decides to locate research and development operations at the LabAlliance facility, they would be eligible for a Research & Development tax credit and sales tax exemption for any R&D equipment purchased.