value lives -...

Serologicals Corporation

2002 Annual Report

building value,enhancing lives

www.serologicals.com

5655 Spalding Drive

Norcross, GA 30092

678.728.2000

800.842.9099

fax: 678.728.2020

©2003 Serologicals Corporation

Creating a Healthier World®

SROCM-AR-03

Our Business

Serologicals Corporation (the “Company”) is a global provider of biological products

and enabling technologies, which are essential for the research, development and

manufacturing of biologically-based life science products.

Our products and technologies are used in a wide variety of innovative applications

within the areas of oncology, hematology, immunology, cardiology and infectious

diseases, as well as in the study of molecular biology.

Our customers include many of the leading life science companies throughout

the world who use our products to advance their products from research

and development to manufacturing and, ultimately, to improve the health of

people worldwide.

Serologicals conducts research and development to discover new and innovative

products and technologies and delivers them to scientists around the world for

further use and development.

Serologicals, headquartered in Atlanta, Georgia, has approximately 1,000 employees

worldwide, and its shares are traded on the NASDAQ National Stock Market under

the symbol SERO. Serologicals recently completed the acquisition of Chemicon

International, Inc., headquartered in Temecula, California. Following the acquisition,

Chemicon will be operated as a stand-alone division of Serologicals.

This annual report may contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act

of 1995 including, without limitation, statements regarding the execution of the strategic growth plan, the consummation of the Chemicon

acquisition, and the ability to meet future demand for the Company’s plasma products through operations of a reduced number of donor

centers. These forward-looking statements are subject to certain risks, uncertainties and other factors, including the Company’s ability to

service its increased debt following the Chemicon acquisition; the Company's ability to attract and retain qualified donors; the Company’s

ability to comply with various regulatory, customer and other standards; the impact of competition; changes in government and industry

mandated regulations or customer specifications; changes in the market’s or customers’ demand for the Company's products and services;

the existence of opportunities in the marketplace to leverage the Company’s strengths and relationships; and, the ability of the Company

to identify new product opportunities that it can successfully commercialize. Any one or more of these risks, uncertainties or factors could

cause actual results to differ materially from the Company’s expectations. Additional information on factors that could potentially affect the

Company or its financial results may be found in the Company's filings with the Securities and Exchange Commission.

research • development • manufacturing

Corporate InformationSerologicals Corporation

5655 Spalding Drive

Norcross, GA 30092

678-728-2000


General CounselKing & Spalding, LLP

191 Peachtree Street

Atlanta, GA 30303-1763

404-572-4600

www.kslaw.com

Transfer Agent And RegistrarEquiServe

P.O. Box 9187

Canton, MA 02021

Shareholder’s Inquiries:

877-282-1169

www.equiserve.com

Independent AuditorsDeloitte & Touche, LLP



404-220-1500

Annual MeetingThe Annual Meeting of Serologicals Corporation Stockholders will

be held at 8 a.m. (EDT) on Friday, May 16, 2003, at the Renaissance

Atlanta Hotel – Concourse, One Hartsfield Centre Parkway, Atlanta,

Georgia 30354.

Stock Trading InformationThe common shares of Serologicals Corporation trade on the

Nasdaq Stock Market under the symbol “SERO.”

Stock Price Information

Year Ended December 29, 2002quarter Ended high low

March 31 $22.00 $13.71

June 30 21.80 15.08

September 29 20.20 11.00

December 29 13.90 7.32


April 1 $18.75 $9.31

July 1 25.75 12.81

September 30 23.95 12.53

December 30 22.17 15.10

As of March 21, 2003, there were a total of 24,459,746 outstanding

shares of Serologicals common stock. The Company has never paid

cash dividends. In addition, there are limitations on the Company’s

ability to pay cash dividends under the terms of certain indebtedness.

For further financial or investor relations information, visit

www.serologicals.com/investor_relations/index.shtml

Board Of DirectorsDesmond H. O’Connell Jr., Chairman of the BoardManagement Consultant, Former Group Management Director, The BOC Group

David A. Dodd, PresidentChief Executive Officer and DirectorSerologicals Corporation

Ralph E. Christoffersen, Ph.D., Director Partner, Morganthaler Ventures

Wade Fetzer, III, Advisory DirectorThe Goldman Sachs Group, L.P.

Ronald G. Gelbman, DirectorWorldwide Chairman of the Health Systems and Diagnostics GroupJohnson & Johnson (retired)

Gerard M. Moufflet, DirectorChief Executive Officer and FounderAcceleration International

George M. Shaw, M.D., Ph.D., DirectorInvestigator, Howard Hughes Medical InstituteDirector, Division of Hematology/Oncology, University of Alabama at Birmingham

Lawrence E. Tilton, DirectorPresident, Lederle Consumer Health (retired)

Management TeamDavid A. Dodd, President, Chief Executive Officer and Director

David L. Bellitt, Vice President, Global Commercial Operations

Robert P. Collins, Vice President, Human Resources

Roland Gerritsen van der Hoop, M.D., PhD, Vice President, Global Research & Development and Chief Scientific Officer

Harold W. “Bud” Ingalls, Vice President, Finance and Chief Financial Officer

Joseph T. Kozma, Vice President, Strategic Market Development

James J. Kramer, Ph.D., Vice President, Global ManufacturingOperations

Jeffrey D. Linton, President, Chemicon International, a division of Serologicals Corporation

Samuel R. Schwartz, Corporate Controller and Chief Accounting Officer

Sue Sutton-Jones, Vice President, Global Regulatory Affairs, QualityAssurance, Compliance and Medical Affairs

M. Dwain Wilcox, Vice President, Global Information Services

The Company will provide without charge, at the written request of anyshareholder of record as of the record date, a copy of the Company'sAnnual Report on Form 10-K, including the financial statements andfinancial statement schedules, as filed with the Securities and ExchangeCommission, except exhibits thereto. The Company may impose a reasonable fee for providing such exhibits. Requests should be mailed to:

Investor RelationsCraig BrownDirector of [email protected]

To view an electronic copy of this annual report, visit www.serologicals.com/pdf/2002annualreport.pdf

Serologicals, EX-CYTE® and Creating a Healthier World®

are registered trademarks of Serologicals Royalty Company.

Serologicals Corporation 2002 Annual Report

1

2002 was a year of contrasts for Serologicals. While

many of our accomplishments were impressive,

they were tempered by some shortfalls. We met

our objectives in many areas, but fell short in

others. Going forward, our focus is on consistently

delivering on our commitments.

On the positive side, the Company grew sub-

stantially in the early part of the year, expanding

our product portfolio and adding customers

through the integration of Intergen, which was

acquired in late 2001. Sales reached $145.5 million

in 2002, exceeding the previous year’s sales of

$109.8 million by 33%.

During the second half of the year, we identified

a major growth opportunity, and plans were put

into motion for the 2003 acquisition of Chemicon

International, Inc. With this action, we successfully

accomplished a primary strategic growth goal

for our Company. In addition to these major

achievements, there were many other successes

and highlights, which I would like to share

with you.

Highlights

• Sales of cell culture and molecular biology

products increased significantly, rising 191% for

the year to $55.5 million, with the addition

of the Intergen biological products and a 61%

increase in sales of our cell growth medium

supplement, EX-CYTE®, in response to growing

worldwide demand.

• Sales of diagnostic products, including reagents

and kits, increased 27% to reach $43.8 million

for the year.

• Lawrence, Kansas, was selected as the site

for construction of our new, state-of-the-art

EX-CYTE® production facility, which will

significantly expand manufacturing capacity

when it is completed in early 2004.

• When the U.S. government called for assistance

in preparing for a potential bioterrorist attack

using smallpox, we responded by rapidly ramp-

ing up our vaccinia plasma collection program

to supply the vaccinia immune globulin (VIG),

which may be needed to treat severe side effects

associated with smallpox immunizations.

• The Plasma Operations division was streamlined

by optimizing collections at key donor centers

enabling closure of seven centers. This allows

us to provide the highest quality products in

the most cost-effective way.

• A new software platform system, SAP, was

successfully implemented, enabling all depart-

ments to operate from a centralized system with

flexibility to expand as our Company grows.

• A new, innovative performance management sys-

tem, Personal Results in Developing Excellence

(PRIDE), was established to reinforce our ability

to attract, develop, promote, reward and evaluate

talented individuals. PRIDE is a performance

management system through which people,

both individually and collectively are evaluated

on results versus objectives.

Dear fellow share owners,

2

Our Company is now serving more customers

than at any time in our history. We are providing a

broader range of biological products, offering more

enabling technologies and doing more business

in the vast research marketplace than ever before.

We believe our products and technologies are

enabling life science companies around the world

to advance their products faster through all phases

of the biomedical pipeline.

These accomplishments are particularly important

because they were achieved in the face of some

very challenging market conditions, including a

lackluster global economy, a depressed securities

market, and missed commitments on our part, all

of which had a negative impact on our Company.

Those conditions plus expenses associated with our

acquisitions resulted in a decline in net income

from $17.1 million in 2001 to $13.9 million in 2002.

We don’t intend to allow obstacles such as these to

continue to impede our progress – we will identify

them, address them and overcome them.

Share Owner Value – Our Corporate Commitment

Moving forward, we believe we now have in

place the infrastructure, capacity, management,

workforce, momentum and tactical plans to meet

our performance objectives and our share owners’

expectations. We have positioned Serologicals to

execute our Strategic Growth Plan, approved by

our Board of Directors in 2001, as a platform on

which to build our success and enhance share

owner value. To be specific, we intend to

achieve these goals by:

• Providing a more consistent business focused

on providing products to life science companies

for use in the biomedical product pipeline;

• Achieving greater growth in the higher margin

markets of cell culture, research, and diagnostic

products;

• Reducing the volatility in earnings that is

characteristic of our historical business;

• Providing a successful employment environment

and opportunity for highly motivated, productive

individuals who desire to consistently exceed

“stretch” goals.

More than ever before, we are taking a leadership

role in the successful research, development and

manufacture of breakthrough medical innovations.

We are focused on performance and delivering

what we promise. We have a commitment to

increasing share owner value and, most important,

we are helping people lead healthier lives – today

and every day.

In closing, I want to express my sincere appreci-

ation to our Board of Directors, the management

team, and the employees for their efforts and

commitment in making Serologicals a strong and

exciting organization. We are prepared to meet

the challenges ahead and to change and adapt to

the evolving healthcare marketplace.

It is my honor and privilege to continue to serve

as Serologicals’ President and Chief Executive

Officer. We are excited about our future, and we

pledge to continue to work very hard to maintain

your confidence. I look forward to reporting to you

next year on your Company’s continuing success.

David A. DoddPRESIDENT AND CHIEF EXECUTIVE OFFICER

Strategic Growth Plan

Increase Shareowner Value:

• Expand our commercial presence

• Invest in innovation

• Pursue selective acquisition andlicensing opportunities


3

98 99 00 01 02

$123.1 $129.7

$147.8

$109.8

$145.5

Consolidated Revenues (actual)

98 99 00 01 02

$63.3 $67.3

$92.8

$109.0

$145.5

Consolidated Revenues (a) (excluding divested operations)

98 99 00 01 02

$20.1

$30.6$33.6 $34.5

$43.8

Segment RevenuesDiagnostic

98 99 00 01 02

$16.3

$(15.5)

$12.9

$17.1

$13.9

Consolidated Net Income (actual)

98 99 00 01 02

$15.1

$4.4

$14.1$16.5

$13.9

Consolidated Net Income (b) (excluding divested operations)

98 99 00 01 02

$43.2

$29.5

$47.4

$55.4

$46.2

Segment Revenues Therapeutics (a)

(excluding divested operations)

98 99 00 01 02

$ -

$7.2

$11.8

$19.1

$55.5

Segment RevenuesBiotechnology

Represents 32% of the Company’s revenuesand provides specialty plasma used to develop life-saving immune globulin

and vaccines.

Represents 30% of the Company’s revenues and provides monoclonal antibodies for use in the manufacture of blood typing reagents

and diagnostic test kits for diseases.

(Research and Cell Culture Products)Represents 38% of the Company’s revenues

and provides the industry with enabling products and technologies that

accelerate the movement of researchfrom the laboratory to the marketplace.

(in millions)

(a) Consolidated revenue (excluding divested operations) and segmentrevenue therapeutics (excluding divested operations) are notmeasures used in generally accepted accounting principles("GAAP"). Consolidated revenue (excluding divested operations)and segment revenue therapeutics (excluding divested operations)are calculated by excluding from consolidated revenue and segmentrevenues therapeutics the following amounts of revenues attributable to divested operations: $0.8 million, $55.0 million,$62.4 million, and $59.8 million in 2001, 2000, 1999 and 1998,respectively. Management believes that the presentation of consolidated revenues and segment revenue therapeutics (excluding divested operations) is meaningful because it providesinvestors with a historical perspective of ongoing operations.

(b) Consolidated net income (excluding divested operations) is not ameasure used in GAAP. Consolidated net income (excluding divested operations) is calculated by excluding from consolidatednet income the following amounts of net income (loss) attributa-ble to divested operations: $0.6 million, $(1.2) million, $(19.9) million and $1.2 million in 2001, 2000, 1999 and 1998. Managementbelieves that the presentation of consolidated net income (excluding divested operations) is meaningful because it providesinvestors with a historical perspective of ongoing operations.

Building Value ThroughFinancial Performance

4

Key Financials (in thousands, except per share amounts)

2002 2001 2000 1999 1998Balance Sheet

Cash and cash equivalents $12,850 $10,780 $22,492 $3,294 $34,940

Accounts receivable, net 35,868 24,652 13,127 29,559 22,072

Inventories 26,305 31,595 21,186 33,361 13,441

Total assets 191,165 175,338 131,495 156,898 147,331

Net working capital 65,468 55,156 56,790 50,172 56,164

Debt and capital lease obligations 424 4,576 13 32,567 5,284

Total liabilities 20,795 22,863 12,788 53,674 18,322

Stockholders’ equity 170,370 152,475 118,707 103,224 129,009

Income Statement

Revenues $145,470 $109,792 $147,760 $129,744 $123,072

Gross margin 68,843 52,165 46,647 35,587 41,830

Operating income (loss) 22,013 26,918 24,574 (16,423) 26,882

Net income (loss) 13,949 17,092 12,917 (15,462) 16,345

Diluted EPS $ 0.56 $ 0.70 $ 0.56 $ (0.65) $ 0.63

performance


5

The results of efforts by Serologicals Corporation touch

millions of people around the world everyday, enhancing

the way they live their lives. In order to touch these

lives and create a healthier world®, Serologicals has a

clear vision. This vision drives the future of the Company

through expansion of Serologicals’ commercial presence,

investments in the right innovative ideas and products

strengthening the Company’s foundation — its products

and technologies — through the right acquisitions

and licensing agreements.

The most recent acquisition, Chemicon International,

fits within the strategic plan of the Company by offering

increased, in-depth product lines, a significant research

and development pipeline and an impressive portfolio

of intellectual property. Chemicon’s existing revenue

drivers, such as its LIF/ESGRO® cell culture supplement

and Arthrogen-CIA® monoclonal antibody mixture

complements Serologicals’ strength in the cell culture,

diagnostics and therapeutic arenas.

Serologicals Corporation… Building Value, Enhancing Lives

Serologicals’ enabling products

and technologies impact

every stage of the process

from early-stage research to

final-stage manufacturing

6


7

Building Value Through a GrowingBiomedical Product Pipeline

Serologicals continues to build value through its

focus on the biomedical product pipeline — from the

biopharmaceutical researcher who uses EX-CYTE® as

a growth enhancing supplement in cell culture to

produce a newly discovered drug, to the nurse who is

testing a patient’s HIV status with a diagnostic kit that

uses Serologicals’ antibodies as controls, to the Anti-D

immune globulin given to an expectant Rh-negative

mother whose baby is Rh-positive in order to protect

the baby from life-threatening Rh-incompatibility prob-

lems. Serologicals products and technologies impact

every stage of the process from early-stage research

to final-stage manufacturing.

As Serologicals enhances lives, it seeks to build

value. At Serologicals, that value is built through

its people, products and productivity. Through the

employees that work with the plasma donors in

Mobile, Alabama, to the high-quality bovine serum

albumin (BSA) products delivered to labs across

the world, to the continued revenue growth from our

ongoing operations, Serologicals delivers value.

Above all, Serologicals realizes that its products

and technologies are used everyday by businesses,

physicians, scientists and researchers. At Serologicals,

we've earned our customers' confidence by adhering

to strict regulations and quality standards for all of

our products.

From locations worldwide, products such as EX-CYTE®,

BSA, Amplifluor™, and vaccinia immune globulin (VIG) —

the only product that can be used to treat complications

from the smallpox vaccine — monoclonal antibodies,

blood typing reagents and specialty immune globulins

are sent to enable a new test, a new discovery, a

new life. Every product undergoes rigorous testing to

ensure the consistent quality we and our customers

expect. Above all, our global customers, their customers

and you continue to rely on our quality products to

enhance lives.


9

At the earliest stage of medical science lies the

dedication and drive of committed individuals with

vision and hope. The work of these researchers,

using Serologicals’ products and technologies enables

premature babies to live, cancer sufferers to become

survivors and personalized medicine to become a

reality. For more than 30 years, Serologicals has

understood the need for better, faster, high-quality

research enhancers that enable the completion of

key research.

With the addition of the Chemicon division to

Serologicals, research products now comprise nearly

25 percent of the company’s portfolio, including nearly

20 different products to help speed drug discovery.

Our broad platform of research products includes

apoptosis detection kits, molecular biology reagents,

detection systems and reagents, numerous research

tools and Amplifluor™, a patented technology that helps

measure the genetic basis of disease.

Chemicon also brings market-leading expertise in

neuroscience research including antibodies, proteins

and kits that facilitate research for Alzheimer’s disease,

Parkinson’s disease, Huntington’s disease and stroke.

Additionally, with Chemicon’s successful R&D program,

which produces hundreds of new products per year,

we believe that research products will continue to

build value for the Company.

Enabling Discovery at Every Stage of Research

A researcher huddles over his workbench closely analyzing cells through a

microscope. He knows that changes in cell morphology can reveal important

information about cell growth or possibly indicate early stages of disease.

Serologicals’ apoptosis detection kits allow him to identify changes to DNA,

membranes and detect other cellular events. His critical work is a step towards

finding a cure for cancer and other diseases.

research

Building Value Through Research


11

More than 150 approved biotechnology medicines and

vaccines on the market today use recombinant proteins

or monoclonal antibodies as active ingredients. Several

hundred additional products are in development.

In order to develop and market these medicines,

many life science companies depend on Serologicals

to supply key products which provide critical nutrients

and promote cell growth and productivity. Products

like albumin, insulin, lipoprotein fraction, transferrin,

aprotinin and enzymes are used during cell culture

research and industrial-scale cell bioproduction.

development

EX-CYTE®

Serologicals has created a novel medium from bovine

plasma, called EX-CYTE®. EX-CYTE® is a lipoprotein cell

culture supplement that enhances cell productivity by

supplying cells with a combination of essential nutrients

and growth factors. Life sciences companies rely on

EX-CYTE® for optimal production of biotechnology

medicines. Today, EX-CYTE® is being used in the

production of pre-clinical trial material, Phase II and III

material, and FDA and European-approved products.

To meet the significant market demand, Serologicals

has started construction of a new production facility

(Lawrence, Kansas) which is expected to become

operational in the first half of 2004. The new state-of-

the-art facility will be capable of producing multiple

batches simultaneously, with an output of more than

100,000 liters per year.

Bovine Serum Albumin

Serologicals’ cell culture supplement line also includes

bovine serum albumin, a protein necessary for the

successful cultivation of cell growth outside of its

normal setting. Serologicals is the world's leading

manufacturer of bovine albumin products offering

a complete selection of high-quality powders and

sterile-filtered solutions for a variety of cell culture

and diagnostic applications. Serologicals has decades

of expertise in manufacturing both cold ethanol and

heat shock albumins.

LIF/ESGRO®

Chemicon’s LIF and ESGRO®, which have historically

provided revenue growth of 20–25 percent per year,

will join Serologicals’ current offerings in cell culture

supplements. Chemicon is the exclusive manufacturer

of recombinant murine (mLIF) and human Leukemia

Inhibitory Factor (hLIF). LIF is a recombinant growth

factor for maintaining and/or expanding stem cells.

ESGRO® is a LIF containing media supplement used in

stem cell biology for transgenic animal development.

The use of ESGRO® eliminates the need for feeder

cells when culturing embryonic stem cells.

Building Value Through Drug Development…Cell Culture Supplements


13

At emergency rooms across the country, thousands of

patients arrive annually unconscious and in dire need

of care. For these patients, rapid, accurate blood typing

is a matter of life and death.

Serologicals’ monoclonal antibodies used in diagnostic

kits allow emergency and clinical laboratory personnel

to rapidly establish a patient’s blood type. These tests

provide accurate results, enabling nurses and physicians

to ensure that the best care is given. As the world’s

largest supplier of monoclonal antibodies for blood

typing, Serologicals provides pure and single-target-

specific monoclonal antibodies suitable for use in

the further manufacturing of blood typing reagents.

Our antibodies also serve as positive and negative

controls in test kits to diagnose specific diseases and

infections such as hepatitis, HIV, rheumatoid arthritis

and toxoplasmosis.

Serologicals also provides bulk processed and

disease-state plasma that can be customized for use

as diagnostic controls in clinical lab tests. Some of

the disease-state plasma offered includes retroviruses,

hepatitis, herpes, HIV, ToRCH, autoimmune, infectious

diseases and negative plasma. Serologicals also offers

bovine serum albumin for use in diagnostic systems,

allowing customers to optimize performance of their

diagnostic assays.

Enhancing Lives Through Diagnostic Products


15

Serologicals’ specialty plasma collection centers have

long been a major source of the collection of high-

quality Anti-D immune globulin, Anti-Hepatitis B immune

globulin, Anti-Rabies immune globulin and Anti-Vaccinia

immune globulin. In fact, today Serologicals is one

of only two American-owned, high-quality producers

of specialty plasma in the world.

Additionally, Serologicals’ Anti-Hepatitis B immune

globulin plays a significant role in the health and well

being of healthcare professionals. Hepatitis B is the

most common serious liver infection, caused by a

virus (HBV) that attacks the liver. HBV is transmitted

through blood and bodily fluids that contain blood.

Therefore, healthcare professionals are at risk daily.

In fact, approximately two health care workers are

infected each day with HBV.

To further aid in enhancing lives, Serologicals collects

hundreds of thousands of liters of specialty hyper-

immune plasma each year, supplying industry leaders

such as Aventis, Cangene, Bayer and Biotest.

Our agreement with Cangene Corporation provides

hyperimmune plasma for use in the manufacturing of

vaccinia immune globulin (VIG), the only product that

can be used to treat complications from the smallpox

vaccine.

As the need for new vaccines emerges, Serologicals

believes that it is prepared to meet the demand for

specialty immune globulin products.

Gail Rebok ...Dedicating Her Life to Saving Babies

For more than 17 years, Gail Rebok has driven more than 80 miles commuting to and from the Serologicals

donor center at least once a week to donate antibodies that contain the Anti-D immune globulin. Why?

Because she understands the importance of giving back first hand. Gail knows that the reason her children

are alive and healthy today is because of dedicated donors like her. More than 23 years ago, she received

the Anti-D immune globulin that allowed her children to be born healthy. This is a gift that keeps Gail

returning to the donor center each week.

At age 26 and pregnant with her first children – twin girls – Gail learned that she was Rh-negative and her

babies were Rh-positive. This Rh-incompatibility could cause life-threatening problems for her babies. After

receiving the Anti-D immune globulin and having another healthy baby two years later – a boy – Gail

realized that the only way other women could receive the life saving treatment was from donors who had been

given the treatment during pregnancy, like herself. Today, when asked how many babies she has helped save,

she shyly answers that she has no idea. We know Gail has helped more families than can easily be counted.

therapeutics

Enhancing Lives One Family at a Time

16

Serologicals is a company focused on building value

for our investors, customers and employees. With

the addition of Chemicon, Serologicals gains an even

stronger position within the life science industry.

Chemicon’s experience in research products complements

Serologicals’ heritage in manufacturing products used

in the development of pharmaceuticals, diagnostics

and vaccines.

Chemicon’s addition as a division of Serologicals is

a direct result of the strategic plan established in 2001.

By providing a more consistent business focused on

supplying products to life science companies for use

in the biomedical product pipeline; achieving greater

growth in the higher-margin markets of cell culture

products, research products and diagnostic products;

reducing the volatility in earnings that is characteristic

of our historical business; providing a successful

employment environment and opportunity for highly-

motivated, productive individuals who desire to

consistently exceed “stretch” goals, Serologicals

Corporation is poised to build value today and

in the future.

Serologicals’ ability to provide products and tech-

nologies across the entire biomedical product pipeline

will be strengthened through the successful expansion

of commercial operations, continued investments in

development, and an unrelenting focus on quality

systems and results.

Building Value for the Future of Serologicals Corporation

Our Business

Serologicals Corporation (the “Company”) is a global provider of biological products

and enabling technologies, which are essential for the research, development and

manufacturing of biologically-based life science products.

Our products and technologies are used in a wide variety of innovative applications

within the areas of oncology, hematology, immunology, cardiology and infectious

diseases, as well as in the study of molecular biology.

Our customers include many of the leading life science companies throughout

the world who use our products to advance their products from research

and development to manufacturing and, ultimately, to improve the health of

people worldwide.

Serologicals conducts research and development to discover new and innovative

products and technologies and delivers them to scientists around the world for

further use and development.

Serologicals, headquartered in Atlanta, Georgia, has approximately 1,000 employees

worldwide, and its shares are traded on the NASDAQ National Stock Market under

the symbol SERO. Serologicals recently completed the acquisition of Chemicon

International, Inc., headquartered in Temecula, California. Following the acquisition,

Chemicon will be operated as a stand-alone division of Serologicals.

This annual report may contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act

of 1995 including, without limitation, statements regarding the execution of the strategic growth plan, the consummation of the Chemicon

acquisition, and the ability to meet future demand for the Company’s plasma products through operations of a reduced number of donor

centers. These forward-looking statements are subject to certain risks, uncertainties and other factors, including the Company’s ability to

service its increased debt following the Chemicon acquisition; the Company's ability to attract and retain qualified donors; the Company’s

ability to comply with various regulatory, customer and other standards; the impact of competition; changes in government and industry

mandated regulations or customer specifications; changes in the market’s or customers’ demand for the Company's products and services;

the existence of opportunities in the marketplace to leverage the Company’s strengths and relationships; and, the ability of the Company

to identify new product opportunities that it can successfully commercialize. Any one or more of these risks, uncertainties or factors could

cause actual results to differ materially from the Company’s expectations. Additional information on factors that could potentially affect the

Company or its financial results may be found in the Company's filings with the Securities and Exchange Commission.

research • development • manufacturing

Corporate InformationSerologicals Corporation

5655 Spalding Drive

Norcross, GA 30092

678-728-2000


General CounselKing & Spalding, LLP



404-572-4600

www.kslaw.com

Transfer Agent And RegistrarEquiServe

P.O. Box 9187

Canton, MA 02021

Shareholder’s Inquiries:

877-282-1169

www.equiserve.com

Independent AuditorsDeloitte & Touche, LLP



404-220-1500

Annual MeetingThe Annual Meeting of Serologicals Corporation Stockholders will

be held at 8 a.m. (EDT) on Friday, May 16, 2003, at the Renaissance

Atlanta Hotel – Concourse, One Hartsfield Centre Parkway, Atlanta,

Georgia 30354.

Stock Trading InformationThe common shares of Serologicals Corporation trade on the

Nasdaq Stock Market under the symbol “SERO.”

Stock Price Information


March 31 $22.00 $13.71

June 30 21.80 15.08

September 29 20.20 11.00

December 29 13.90 7.32


April 1 $18.75 $9.31

July 1 25.75 12.81

September 30 23.95 12.53

December 30 22.17 15.10

As of March 21, 2003, there were a total of 24,459,746 outstanding

shares of Serologicals common stock. The Company has never paid

cash dividends. In addition, there are limitations on the Company’s

ability to pay cash dividends under the terms of certain indebtedness.

For further financial or investor relations information, visit

www.serologicals.com/investor_relations/index.shtml

Board Of DirectorsDesmond H. O’Connell Jr., Chairman of the BoardManagement Consultant, Former Group Management Director, The BOC Group

David A. Dodd, PresidentChief Executive Officer and DirectorSerologicals Corporation

Ralph E. Christoffersen, Ph.D., Director Partner, Morganthaler Ventures

Wade Fetzer, III, Advisory DirectorThe Goldman Sachs Group, L.P.

Ronald G. Gelbman, DirectorWorldwide Chairman of the Health Systems and Diagnostics GroupJohnson & Johnson (retired)

Gerard M. Moufflet, DirectorChief Executive Officer and FounderAcceleration International

George M. Shaw, M.D., Ph.D., DirectorInvestigator, Howard Hughes Medical InstituteDirector, Division of Hematology/Oncology, University of Alabama at Birmingham

Lawrence E. Tilton, DirectorPresident, Lederle Consumer Health (retired)

Management TeamDavid A. Dodd, President, Chief Executive Officer and Director

David L. Bellitt, Vice President, Global Commercial Operations

Robert P. Collins, Vice President, Human Resources

Roland Gerritsen van der Hoop, M.D., PhD, Vice President, Global Research & Development and Chief Scientific Officer

Harold W. “Bud” Ingalls, Vice President, Finance and Chief Financial Officer

Joseph T. Kozma, Vice President, Strategic Market Development

James J. Kramer, Ph.D., Vice President, Global ManufacturingOperations

Jeffrey D. Linton, President, Chemicon International, a division of Serologicals Corporation

Samuel R. Schwartz, Corporate Controller and Chief Accounting Officer

Sue Sutton-Jones, Vice President, Global Regulatory Affairs, QualityAssurance, Compliance and Medical Affairs

M. Dwain Wilcox, Vice President, Global Information Services

The Company will provide without charge, at the written request of anyshareholder of record as of the record date, a copy of the Company'sAnnual Report on Form 10-K, including the financial statements andfinancial statement schedules, as filed with the Securities and ExchangeCommission, except exhibits thereto. The Company may impose a reasonable fee for providing such exhibits. Requests should be mailed to:

Investor RelationsCraig BrownDirector of [email protected]

To view an electronic copy of this annual report, visit www.serologicals.com/pdf/2002annualreport.pdf

Serologicals, EX-CYTE® and Creating a Healthier World®

are registered trademarks of Serologicals Royalty Company.

Serologicals Corporation

2002 Annual Report

building value,enhancing lives


5655 Spalding Drive

Norcross, GA 30092

678.728.2000

800.842.9099

fax: 678.728.2020

©2003 Serologicals Corporation

Creating a Healthier World®

SROCM-AR-03

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