UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549

                                    FORM 10-Q

|X|  Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange
     Act of 1934.

     For the quarterly period ended January 31, 2004; 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: 000-26326

                     PROFESSIONAL VETERINARY PRODUCTS, LTD.
             (Exact name of registrant as specified in its charter)


         Nebraska                      5047                   37-1119387
      (State or other           (Primary Standard            (IRS Employer
      jurisdiction of               Industrial            Identification No.)
     Incorporation or          Classification Code
       organization)                 Number)


                            10077 South 134th Street
                              Omaha, Nebraska 68138
                                 (402) 331-4440
   (Address and telephone number of registrant's principal executive offices)


      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 proceeding 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 registrant is an accelerated filer (as
defined in Rule 12b-2 of the Exchange Act).

      Yes   |_|   No    |X|

      Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practicable date.

      Class                               Outstanding at February 29, 2004
      -----                               --------------------------------
      Common Stock, $1.00 par value                     1,876


<PAGE>

                           PROFESSIONAL VETERINARY PRODUCTS, LTD.
                              INDEX TO 10-Q FOR THE QUARTERLY
                               PERIOD ENDED JANUARY 31, 2004


PART I:    FINANCIAL INFORMATION                                            PAGE

      ITEM 1.     FINANCIAL STATEMENTS

                  Independent Accountant's Report
                                                                               1

                  Consolidated Balance Sheets as of January 31, 2004
                  and July 31, 2003                                            2

                  Consolidated Statements of Income for the three months
                  ended January 31, 2004 and 2003 and the six months
                  ended January 31, 2004 and 2003                              3

                  Consolidated Statements of Cash Flow for the six months
                  ended January 31, 2004 and 2003                              4

                  Notes to Financial Statements                                5

      ITEM 2.     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS               11

      ITEM 3.     QUANTITATIVE AND QUALITATIVE DISCLOSURES
                  ABOUT MARKET RISK                                           23

      ITEM 4:     DISCLOSURE CONTROLS AND PROCEDURES                          24

PART II:    OTHER INFORMATION

      ITEM 1.     LEGAL PROCEEDINGS                                           24

      ITEM 2.     CHANGES IN SECURITIES AND USE OF PROCEEDS                   24

      ITEM 3.     DEFAULTS UPON SENIOR SECURITIES                             24

      ITEM 4.     SUBMISSION OF MATTERS TO A VOTE OF SECURITY                 25
                  HOLDERS

      ITEM 5.     OTHER INFORMATION                                           25

      ITEM 6.     EXHIBITS AND REPORTS ON FORM 8-K                            25


<PAGE>

ITEM 1:           FINANCIAL STATEMENTS

To the Audit Committee
Professional Veterinary Products, Ltd.
Omaha, NE


                         INDEPENDENT ACCOUNTANT'S REPORT

      We have reviewed the accompanying consolidated balance sheet of
Professional Veterinary Products, Ltd. (a Nebraska Corporation) and subsidiaries
as of January 31, 2004, and the related statements of consolidated income for
the three and six month periods ended January 31, 2004 and 2003 and the
consolidated statements of cash flows for the six month periods ended January
31, 2004 and 2003. We conducted our review in accordance with standards
established by the American Institute of Certified Public Accountants. All
information included in these financial statements is the representation of the
management of Professional Veterinary Products, Ltd.

      A review of interim financial information consists principally of
inquiries of Company personnel and analytical procedures applied to financial
data. It is substantially less in scope than an audit in accordance with
generally accepted auditing standards, the objective of which is the expression
of an opinion regarding the financial statements taken as a whole. Accordingly,
we do not express such an opinion.

      Based on our review, we are not aware of any material modifications that
should be made to the accompanying financial statements in order for them to be
in conformity with generally accepted accounting principles.

      The July 31, 2003 balance sheet included in these financial statements was
audited by us. Our audit report dated October 15, 2003 expressed an unqualified
opinion on that balance sheet.


/s/ Quick & McFarlin, P.C.

Quick & McFarlin, P.C.
Omaha, Nebraska
March 6, 2004


                                       1
<PAGE>

             PROFESSIONAL VETERINARY PRODUCTS, LTD. AND SUBSIDIARIES
                           Consolidated Balance Sheets
              As of January 31, 2004 (unaudited) and July 31, 2003
                        (in thousands, except share data)


<TABLE>
<CAPTION>
                                                                                   January 31,                   July 31,
                                                                                      2004                         2003
                                                                               ------------------          ------------------
<S>                                                                                    <C>                          <C>
                                                            ASSETS
 CURRENT ASSETS
    Cash                                                                       $            2,477          $            4,346
    Accounts receivable, trade - net of allowance
      for doubtful accounts $787 and $760, respectively                                    29,616                      22,718
    Accounts receivable, related parties                                                    3,252                       4,133
    Inventory                                                                              57,012                      38,817
    Deferred tax asset                                                                        311                         264
    Other current assets                                                                      426                         489
                                                                               ------------------          ------------------
         Total current assets                                                              93,094                      70,767
                                                                               ------------------          ------------------

NET PROPERTY AND EQUIPMENT                                                                  9,836                      10,298
                                                                               ------------------          ------------------

OTHER ASSETS
    Intangible assets - net of accumulated
      amortization $11 and $10, respectively                                                   14                          15
    Intangible retirement asset                                                             1,125                       1,334
    Investment in unconsolidated affiliates                                                 1,583                       1,583
    Cash value life insurance                                                                 734                         295
    Deposits on property and equipment                                                        686                          31
                                                                               ------------------          ------------------
         Total other assets                                                                 4,142                       3,258
                                                                               ------------------          ------------------

TOTAL ASSETS                                                                   $          107,072          $           84,323
                                                                               ==================          ==================

                                          LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
    Note payable, bank                                                         $           18,993          $            9,765
    Current portion of long-term debt and capital
      lease obligation                                                                      1,407                       1,363
    Accounts payable, trade                                                                57,540                      46,154
    Accounts payable, related parties                                                       2,391                       1,022
    Other current liabilities                                                               3,960                       4,897
                                                                               ------------------          ------------------
         Total current liabilities                                                         84,291                      63,201
                                                                               ------------------          ------------------

LONG-TERM LIABILITIES
    Long-term debt and capital lease obligation,
      less current portion                                                                  7,266                       7,972
    Accrued retirement benefits, less current portion                                       1,125                       1,334
    Deferred  tax liability                                                                   214                         253
    Shares subject to mandatory redemption,
      $1 par value; issued and outstanding 688
      shares and 0 shares, respectively                                                     2,025                        --
                                                                               ------------------          ------------------
         Total long-term liabilities                                                       10,630                       9,559
                                                                               ------------------          ------------------

TOTAL LIABILITIES                                                                          94,921                      72,760
                                                                               ------------------          ------------------

STOCKHOLDERS' EQUITY
    Common stock, $1 par value; authorized 30,000
      shares; issued and outstanding 1,188 shares
      and 1,845 shares, respectively                                                            1                           2
    Paid-in capital                                                                         3,492                       5,344
    Retained earnings                                                                       8,658                       6,217
                                                                               ------------------          ------------------
         Total stockholders' equity                                                        12,151                      11,563
                                                                               ------------------          ------------------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                     $          107,072          $           84,323
                                                                               ==================          ==================
</TABLE>



See notes to the condensed, consolidated financial statements.


                                       2
<PAGE>

             PROFESSIONAL VETERINARY PRODUCTS, LTD. AND SUBSIDIARIES
                        Consolidated Statements of Income
              Three and Six Month Periods January 31, 2004 and 2003
                                   (unaudited)
                      (in thousands, except per share data)


<TABLE>
<CAPTION>
                                                      Three Months Ended                          Six Months Ended
                                                January 31,          January 31,          January 31,           January 31,
                                                    2004                 2003                  2004                 2003
                                               ----------------     ----------------     -----------------     ----------------

<S>                                            <C>                  <C>                  <C>                   <C>
 NET SALES AND OTHER REVENUE                   $        73,446      $        68,025      $        161,889      $       143,261
                                               ----------------     ----------------     -----------------     ----------------

 COST OF SALES                                          63,984               59,918               143,802              128,430
                                               ----------------     ----------------     -----------------     ----------------

 Gross profit                                            9,462                8,107                18,087               14,831

 OPERATING, GENERAL, AND
     ADMINISTRATIVE EXPENSES                             6,647                6,377                13,960               12,800
                                               ----------------     ----------------     -----------------     ----------------

 Operating income                                        2,815                1,730                 4,127                2,031
                                               ----------------     ----------------     -----------------     ----------------

 OTHER INCOME (EXPENSE)
     Interest income                                       100                  174                   243                  302
     Interest expense                                     (287)                (285)                 (492)                (525)
                                               ----------------     ----------------     -----------------     ----------------

       Other expense - net                                (187)                (111)                 (249)                (223)
                                               ----------------     ----------------     -----------------     ----------------

 Income before taxes                                     2,628                1,619                 3,878                1,808

 Income tax expense                                        966                  655                 1,436                  729
                                               ----------------     ----------------     -----------------     ----------------

 Net income                                    $         1,662      $           964      $          2,442      $         1,079
                                               ================     ================     =================     ================

 Net earnings per share of
     common stock                              $      1,403.25      $        560.45      $       2,068.95      $        641.78
                                               ================     ================     =================     ================

 Weighted average common
     shares outstanding                                  1,185                1,721                 1,180                1,681
                                               ================     ================     =================     ================


 SUPPLEMENTAL INFORMATION
     Net sales and other  revenue -
       related parties                          $        7,157      $         4,972      $         15,441      $        10,592
     Purchases - related parties                $        4,803      $         4,499      $          9,980      $         8,617
</TABLE>








See notes to the condensed, consolidated financial statements.


                                       3
<PAGE>

             PROFESSIONAL VETERINARY PRODUCTS, LTD. AND SUBSIDIARIES
                      Consolidated Statements of Cash Flows
                Six Month Periods Ended January 31, 2004 and 2003
                                   (unaudited)
                      (in thousands, except per share data)


<TABLE>
<CAPTION>
                                                                                      January 31,         January 31,
                                                                                          2004               2003
                                                                                    ---------------    ----------------
<S>                                                                                 <C>                <C>
CASH FLOWS FROM OPERATING ACTIVITIES
   Net income                                                                       $        2,442     $         1,079
                                                                                    ---------------    ----------------
   Adjustments to reconcile net income to net cash from
     operating activities:
       Depreciation and amortization                                                           532                 570
         (Increase) decrease in:
           Receivables                                                                      (6,017)             (8,716)
           Inventories                                                                     (18,195)            (22,445)
           Deferred tax asset                                                                  (47)                 --
           Other current assets                                                                 63                (134)
           Cash value life insurance                                                          (439)                 --
         Increase (decrease) in:
           Accounts payable                                                                 12,755              18,966
           Other current liabilities                                                          (937)                350
           Deferred tax liability                                                              (39)                 27
                                                                                    ---------------    ----------------
             Total adjustments                                                             (12,324)            (11,382)
                                                                                    ---------------    ----------------

             Net cash consumed by operating activities                                      (9,882)            (10,303)
                                                                                    ---------------    ----------------

CASH FLOWS FROM INVESTING ACTIVITIES
   Purchase of property and equipment                                                          (69)             (1,390)
   Deposits on property and equipment                                                         (655)               (265)
                                                                                    ---------------    ----------------

             Net cash consumed by investing activities                                        (724)             (1,655)
                                                                                    ---------------    ----------------

CASH FLOWS FROM FINANCING ACTIVITIES
   Net short-term borrowing                                                                  9,229               8,395
   Bank overdraft                                                                               --               2,261
   Payments of long-term debt and capital lease obligation                                    (663)               (237)
   Net payments for redemptions of shares subject to
     mandatory redemption                                                                       32                  --
   Net proceeds from issuance of common stock                                                  139                 532
                                                                                    ---------------    ----------------

             Net cash provided by financing activities                                       8,737              10,951
                                                                                    ---------------    ----------------

Net decrease in cash                                                                        (1,869)             (1,007)
Cash at beginning of period                                                                  4,346               1,324
                                                                                    ---------------    ----------------
Cash at end of period                                                               $        2,477     $           317
                                                                                    ===============    ================

Supplemental disclosure of cash flow information:
   Interest paid                                                                    $          470     $           488
                                                                                    ===============    ================
   Income taxes paid                                                                $        2,481     $           608
                                                                                    ===============    ================
</TABLE>






See notes to the condensed, consolidated financial statements.


                                       4
<PAGE>

             PROFESSIONAL VETERINARY PRODUCTS, LTD. AND SUBSIDIARIES
                      Consolidated Statements of Cash Flows
                Six Month Periods Ended January 31, 2004 and 2003
                                   (unaudited)
                      (in thousands, except per share data)

NOTE 1 - BASIS OF PRESENTATION

   The accompanying condensed, consolidated financial statements of Professional
Veterinary Products, Ltd., and its wholly-owned subsidiaries (the Company) have
been prepared in accordance with accounting principles generally accepted in the
United States for interim financial information and in accordance with the rules
and regulations of the United States Securities and Exchange Commission (the
SEC). Accordingly, these condensed, consolidated financial statements do not
include all of the information and footnotes required by accounting principles
generally accepted in the United States for complete financial statements.

   The information contained in the financial statements is unaudited. The
statements reflect all normal and recurring adjustments which, in the opinion of
management, are necessary for a fair statement of the results for the interim
periods presented. All significant intercompany accounts and transactions have
been eliminated.

   The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.

   These condensed, consolidated financial statements should be read in
conjunction with the Company's consolidated financial statements and notes
thereto included in the Company's Annual Report on Form 10-K for the year ended
July 31, 2003 filed with the SEC. The Company follows the same accounting
policies in preparation of interim financial statements. These policies are
presented in Note 2 to the Consolidated Financial Statements included on Form
10-K referred to above.

   The results of operations and cash flows for the six months ended January 31,
2004 are not necessarily indicative of the results to be expected for the fiscal
year ending July 31, 2004 or any other period. Certain amounts from prior
periods have been reclassified to conform to the current period's presentation.

NOTE 2 - ACCOUNTING CHANGES

   In May 2003, the Financial Accounting Standards Board (FASB) issued Statement
of Financial Accounting Standard (SFAS) No. 150, "Accounting for Certain
Financial Instruments with Characteristics of both Liabilities and Equity". SFAS
No. 150 establishes standards for issuer classification and measurement of
certain financial instruments with characteristics of both liabilities and
equity. Instruments that fall within the scope of SFAS No. 150 must be
classified as a liability. SFAS No. 150 is effective for financial instruments
entered into or modified after May 31, 2003, and otherwise is effective for the
beginning of the first interim period beginning after June 15, 2003, except for
mandatory redeemable financial instruments of non-public entities. Management
adopted SFAS No. 150 during the first quarter of the current fiscal year. The
Company's shares of common stock issued to single member limited liability
companies and sole proprietorships are subject to mandatory redemption upon
death of the shareholder at the price the shareholder paid for the share. These
shares are presented as liabilities under the provision of SFAS No. 150 within
the long-term liability section on the Consolidated Balance Sheets. The adoption
of SFAS No. 150 did not have a material impact on the Company's consolidated
results of operations. However, the adoption of SFAS No. 150 did impact the
Company's consolidated presentation of financial position. Single member limited
liability companies and sole proprietorships comprised 688 shares at January 31,
2004. These shares, including associated additional paid-in capital net of
amounts receivable, were reclassified to long-term liabilities in the amount of
$2,025 (see Note 6).

                                       5
<PAGE>

             PROFESSIONAL VETERINARY PRODUCTS, LTD. AND SUBSIDIARIES
                      Consolidated Statements of Cash Flows
                Six Month Periods Ended January 31, 2004 and 2003
                                   (unaudited)
                      (in thousands, except per share data)


NOTE 3 - RECENT ACCOUNTING PRONOUNCEMENTS

   In December 2003, the FASB revised SFAS No. 132, "Employers' Disclosures
about Pensions and Other Postretirement Benefits" to require additional
disclosures related to pensions and post retirement benefits. While retaining
the existing disclosure requirements for pensions and postretirement benefits,
additional disclosures are required related to pension plan assets, obligations,
contributions and net benefit costs, beginning with fiscal years ending after
December 15, 2003. Additional disclosures pertaining to benefit payments are
required for fiscal years ending after June 30, 2004. The SFAS No. 132 revisions
also include additional disclosure requirements for interim financial reports
beginning after December 15, 2003. Our disclosure in this note reflects the
revised requirements under SFAS No. 132 (revised). This standard does not effect
the Company's financial position, cash flows or results of operation.


NOTE 4 - REVOLVING NOTE PAYABLE

   During the current quarter the Company increased their revolving promissory
note which now provides for borrowings up to $25,000, and matures January 1,
2005. The short-term borrowing amounts outstanding under this credit facility
amounted to $18,993 and $9,765 at January 31, 2004 and 2003, respectively.
Interest is payable at 2.70% over the London Inter Bank Offered Rate (LIBOR).
The weighted average interest rates of borrowings outstanding under the
revolving credit agreement were 3.82% and 4.28% for the six months ended January
31, 2004 and 2003, respectively. The line of credit is secured by substantially
all of the Company's assets. Under terms of the borrowing agreement, the Company
is required to maintain certain net worth and leverage ratios. The Company was
in compliance with covenants at January 31, 2004.

NOTE 5 - EARNINGS PER SHARE

   SFAS No. 128, "Earnings per Share" promulgates accounting standards for the
computation and manner of presentation of the Company's earnings per share data.
Under SFAS No. 128, the Company is required to present basic and diluted
earnings per share. Basic earnings per share is computed by dividing net income
available to common stockholders by the weighted-average number of common shares
outstanding for the period. In accordance with SFAS No. 150, the
weighted-average number of common shares outstanding for the period does not
include the shares subject to mandatory redemption. Diluted earnings per share
reflect the potential dilution that could occur if securities or other contracts
to issue common stock were exercised or converted into common stock. There are
no securities that are convertible to common stock that would cause further
dilution. The weighted average number of common shares outstanding was 1,180 and
1,681 at January 31, 2004 and 2003, respectively.

                                       6
<PAGE>

             PROFESSIONAL VETERINARY PRODUCTS, LTD. AND SUBSIDIARIES
                      Consolidated Statements of Cash Flows
                Six Month Periods Ended January 31, 2004 and 2003
                                   (unaudited)
                      (in thousands, except per share data)

NOTE 6 - COMMON STOCK

   The Company is authorized to issue 30,000 shares of common stock with a par
value of $1. Issued and outstanding shares amounted to 1,876 at January 31, 2004
and 1,845 at July 31, 2003. Holders of common stock are entitled to: a) one vote
for each share held on matters submitted to a vote of stockholders, b) a ratable
share of dividends declared and c) in the event of liquidation or dissolution, a
ratable share of monies after liabilities. Shareholders are not permitted to
dispose of their stock except by a sale back to the Company. The shareholder
must give the Company written notice of the proposed sale and the Company must
redeem for cash the share of stock within ninety days of receiving such notice,
at the price the shareholder paid for the share. Shares held by single member
limited liability companies and sole proprietorships are mandatorily redeemable
upon death of the holder at the price the shareholder paid for the share. The
amount to be paid upon death of these shareholders as of January 31, 2004 was
$2,025. An analysis of common stock and shares subject to mandatory redemption
for the six months ended January 31, 2004 is as follows:





<TABLE>
<CAPTION>
                                                                     Shares Subject to
                                                                     Mandatory Redemption
                                           Common Stock (Equity)     (Long-term Liabilities)           Total
                                           --------------------------------------------------------------------
<S>                                                 <C>                     <C>                     <C>
Number of shares - July 31, 2003                         1,845                          --               1,845
  Recognition of liability per FASB 150                   (674)                        674                  --
  Issuance of common stock                                  31                          23                  54
  Redemption of common stock                               (14)                         (9)                (23)
                                                    -----------             ---------------         -----------
Number of shares - January 31, 2004                      1,188                         688               1,876
                                                    ===========             ===============         ===========

<CAPTION>

                                                                     Shares Subject to
                                                                     Mandatory Redemption
                                              APIC (Equity)          (Long-term Liabilities)           Total
                                           --------------------------------------------------------------------
<S>                                                 <C>                     <C>                     <C>
Additional paid-in capital - July 31, 2003             $ 5,344                         $ -             $ 5,344
  Recognition of liability FASB 150                     (1,991)                      1,991                   -
  Issuance of common stock                                  93                          69                 162
  Redemption of common stock                               (40)                        (27)                (67)
  Change in amounts receivable                              86                          (9)                 77
                                                    -----------             ---------------         -----------
Additional paid-in capital - January 31, 2004          $ 3,492                     $ 2,024             $ 5,516
                                                    ===========             ===============         ===========
</TABLE>


                                       7
<PAGE>
             PROFESSIONAL VETERINARY PRODUCTS, LTD. AND SUBSIDIARIES
                      Consolidated Statements of Cash Flows
                Six Month Periods Ended January 31, 2004 and 2003
                                   (unaudited)
                      (in thousands, except per share data)

NOTE 7 - POSTRETIREMENT BENEFITS

   On January 1, 2003, the Company adopted a Supplemental Executive Retirement
Plan ("SERP"). The SERP is a nonqualified defined benefit plan pursuant to which
the Company will pay supplemental pension benefits to certain key employees upon
retirement based upon the employees' years of service and compensation. For the
six months ended January 31, 2004 and 2003, benefits accrued and expensed were
$209 and $33 respectively. The plan is an unfunded supplemental retirement plan
and is not subject to the minimum funding requirements of the Employee
Retirement Income Security Act ("ERISA"). While the SERP is an unfunded plan,
the Company is informally funding the plan through life insurance contracts on
the participants. The life insurance contracts had cash surrender values of $659
and $220 at January 31, 2004 and July 31, 2003, respectively.

   In December 2003, the FASB issued SFAS No. 132 (revised 2003), "Employers'
Disclosures About Pensions and Other Postretirement Benefits." The provisions of
this statement do not change the measurement and recognition provisions of SFAS
No. 87, "Employers' Accounting for Pensions," SFAS No. 88, "Employers'
Accounting for Settlements and Curtailments of Defined Benefit Pension Plans and
for Termination Benefits" and SFAS No. 106, "Employers' Accounting for
Postretirement Benefits Other Than Pensions." Disclosures in this note reflect
the revised requirements under SFAS No. 132 (revised).

      Net periodic benefit costs for the Company's SERP for the six months ended
January 31 included the following components:

                                                        2004           2003
                                                      ------         ------
         Service cost                                 $   76         $   12
         Interest cost                                    65             10
         Amortization of unrecognized
           prior service cost                             68             11
                                                      ------         ------
         Net periodic benefit cost                     $ 209         $   33
                                                      ======         ======

   The weighted average discount rate and rate of increase in compensation
levels used to compute the actuarial present value of projected benefit
obligations were 6.25% and 4.00%, respectively, at July 31, 2003. The Company
expects to recognize $418 of net periodic benefit cost for this postretirement
plan in 2004.

NOTE 8 - SEGMENT INFORMATION

   The Company has three reportable segments: Wholesale Distribution, Logistics
Services, and Direct Customer Services. The Wholesale Distribution segment is a
wholesaler of pharmaceuticals and other veterinary related items. This segment
distributes products primarily to Company shareholders, who are licensed
veterinarians or business entities comprised of licensed veterinarians. The
Logistics Services segment provides logistics and distribution service
operations for vendors of animal health products. The Logistic Services segment
serves its customers by consolidating, packaging and delivering animal health
products closer to the final destination, resulting in reduced freight costs and
improved delivery performance. The Direct Customer Services segment is as a
supplier of animal health products to the producer or consumer. Animal health
products are shipped to locations closer to the final destination. The segment's
trucking operations transport the products directly to the producer or consumer.

                                       8
<PAGE>

             PROFESSIONAL VETERINARY PRODUCTS, LTD. AND SUBSIDIARIES
                      Consolidated Statements of Cash Flows
                Six Month Periods Ended January 31, 2004 and 2003
                                   (unaudited)
                      (in thousands, except per share data)


NOTE 8 - SEGMENT INFORMATION (continued)

   The accounting policies of the segments are the same as those described in
the summary of significant accounting policies as detailed in the Company's
consolidated financial statements and footnotes thereto included in the Annual
Report on form 10-K for the year ended July 31, 2003, filed with the SEC. The
Company evaluates performance based on profit or loss from operations before
income taxes. The Company's reportable segments are strategic business units
that serve different types of customers in the animal health industry. The
separate financial information of each segment is presented consistent with the
way results are regularly evaluated by the chief operating decision maker in
deciding how to allocate resources and in assessing performance.

   The following table summarizes the Company's operations by business segment:


<TABLE>
<CAPTION>
                                                   Wholesale        Logistics         Customer                          Consolidated
                                                  Distribution       Services         Services        Eliminations          Total
                                                  ------------     ------------     ------------      ------------      ------------

<S>                                               <C>              <C>              <C>               <C>               <C>
Three months ended January 31, 2004
    Net sales and other revenue                   $     72,573     $        132     $      8,079      $     (7,338)     $     73,446
    Cost of sales                                       64,071              120            7,134            (7,341)           63,984
    Operating, general and
     administrative expenses                             5,675             --                972              --               6,647
    Operating income                                     2,828               11              (27)                3             2,815
    Income before taxes                                  2,628               11              (14)                3             2,628

Three months ended January 31, 2003
    Net sales and other revenue                         67,550              231            6,866            (6,622)           68,025
    Cost of sales                                       60,254              201            6,003            (6,540)           59,918
    Operating, general and
     administrative expenses                             5,576             --                801              --               6,377
    Operating income                                     1,720               30               61               (81)            1,730
    Income before taxes                                  1,619               30               51               (81)            1,619

Six months ended January 31, 2004
    Net sales and other revenue                   $    161,089     $        245     $     18,318      $    (17,763)     $    161,889
    Cost of sales                                      145,139              232           16,124           (17,693)          143,802
    Operating, general and
     administrative expenses                            11,802             --              2,158              --              13,960
    Operating income                                     4,148               13               36               (70)            4,127
    Income before taxes                                  3,877               13               58               (70)            3,878

Six months ended January 31, 2003
    Net sales and other revenue                        142,223            1,344           13,042           (13,348)          143,261
    Cost of sales                                      129,011            1,281           11,298           (13,160)          128,430
    Operating, general and
     administrative expenses                            11,191             --              1,609              --              12,800
    Operating income                                     2,021               63              136              (189)            2,031
    Income before taxes                                  1,808               63              126              (189)            1,808
</TABLE>




                                       9
<PAGE>

             PROFESSIONAL VETERINARY PRODUCTS, LTD. AND SUBSIDIARIES
                      Consolidated Statements of Cash Flows
                Six Month Periods Ended January 31, 2004 and 2003
                                   (unaudited)
                      (in thousands, except per share data)

NOTE 9 - RECLASSIFICATIONS

   Certain reclassifications have been made to the prior year condensed,
consolidated financial statements to conform to the current year presentation.
Such reclassifications had no impact on results of operation or shareholders'
equity.


                                       10
<PAGE>

ITEM 2:     MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
            RESULTS OF OPERATIONS

Forward-Looking Statements

      The Company and its representatives may from time to time make written or
oral forward-looking statements, including statements made in this report, that
represent the Company's expectations or beliefs concerning future events,
including statements regarding future sales, future profits and other results of
operations, the continuation of historical trends, the sufficiency of cash
balances and cash generated from operating and financing activities for the
Company's future liquidity and capital resource needs, and the effects of any
regulatory changes. Such statements are "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995. The Company
cautions you that any forward-looking statements made by The Company in this
report, in other reports filed by the Company with the Securities and Exchange
Commission or in other announcements by the Company are qualified by certain
risks and other important factors that could cause actual results to differ
materially from those in the forward-looking statements. Such risks and factors
include, but are not limited to, the risk factors set forth in the section below
entitled "Business Trends and Risk Factors That May Affect Future Performance".

Results of Operations

      The following discussion is based on the historical results of operations
for the three month periods ended January 31, 2004 and 2003 and the six month
periods ended January 31, 2004 and 2003.

Summary Consolidated Results of Operations Table

================================================================================
                                Three Months Ended         Six Months Ended
                                    January 31,               January 31,
                                  (in thousands)            (in thousands)
--------------------------------------------------------------------------------
                                 2004        2003         2004          2003
Net sales and other revenue     73,446     $68,025       161,889     $143,261

Cost of sales                   63,984      59,918       143,802     128,430

Gross profit                     9,462       8,107        18,087      14,831

Operating, general
and administrative               6,647       6,377        13,960      12,800
expenses
Operating income                 2,815       1,730         4,127       2,031

Interest expense, net             (187)       (111)         (249)       (223)

Other income                       --           --           --          --
(expense)
Income before taxes              2,628       1,619         3,878       1,808

Income tax expense                 966         655         1,436         729

Net income                       1,662         964         2,442       1,079
================================================================================


Three months ended January 31, 2004 as compared to three months ended
January 31, 2003.

      Net sales and other revenue for the three months ending January 31, 2004
increased $5.4 million to $73.4 million compared to $68.0 million for the same
period the previous year.

      Gross profit for the three months ending January 31, 2004 increased $1.4
million to $9.5 million compared to $8.1 million for the same period the
previous year. This increase is primarily attributable to the increase in net
sales and other revenue. Gross profit as a percentage of net sales and other
revenue was 12.9% compared to 11.9% for the same period the previous year.

      Operating, general and administrative expenses for the three months ending
January 31, 2004 increased $270 thousand to $6.6 million compared to $6.4
million for the same period the previous year. This increase is primarily
attributable to support the increase in net sales and other revenue. These
expenses as a percentage of net sales and other revenue were 9.1% compared to
9.4% for the same period the previous year.

                                       11
<PAGE>

      Operating income for the three months ending January 31, 2004 increased
$1.1 million to $2.8 million compared to $1.7 million for the same period the
previous year. This increase is primarily attributable to the increase in gross
profit of $1.4 million which was partially offset by the increase in operating,
general and administrative expenses of $270 thousand. Interest expense increased
from $111 thousand to $187 thousand. The increase is principally related to a
higher average balance on the revolving line of credit.

Operating Segments

      The Company has three reportable segments: Wholesale Distribution,
Logistics Services, and Direct Customer Services. The Wholesale Distribution
segment is a wholesaler of pharmaceuticals and other veterinary related items.
This segment distributes products primarily to Company shareholders, who are
licensed veterinarians or business entities comprised of licensed veterinarians.

      The Logistics Services segment provides logistics and distribution service
operations for vendors of animal health products. The Logistic Services segment
serves its customers by consolidating, packaging and delivering animal health
products closer to the final destination, resulting in reduced freight costs and
improved delivery performance.

      The Direct Customer Services segment is a supplier of animal health
products to the producer or consumer. Animal health products are shipped to
locations closer to the final destination. The segment's trucking operations
transport the products directly to the producer or consumer.

      The Company's reportable segments are strategic business units that serve
different types of customers in the animal health industry. The separate
financial information of each segment is presented consistent with the way
results are regularly evaluated by the chief operating decision maker in
deciding how to allocate resources and in assessing performance. Previously, the
Company disclosed one reportable segment. The following table summarizes the
Company's operations by business segment:

================================================================================
                                          Three Months Ended January 31
                                                  (in thousands)
                                          -------------------------------
                                            2004                   2003
                                          --------               --------
NET SALES
    Wholesale Distribution                  72,573               $ 67,550
    Logistics Services                         132                    231
    Direct Customer Services                 8,079                  6,866
    Eliminations                            (7,338)                (6,622)
                                          --------               --------
Consolidated Total                          73,446                 68,025

COST OF SALES
    Wholesale Distribution                  64,071                 60,254
    Logistics Services                         120                    201
    Direct Customer Services                 7,134                  6,003
    Eliminations                            (7,341)                (6,540)
                                          --------               --------
Consolidated Total                          63,984                 59,918

OPERATING, GENERAL AND
ADMINISTRATIVE EXPENSES
    Wholesale Distribution                   5,675                  5,576
    Logistics Services                        --                     --
    Direct Customer Services                   972                    801
    Eliminations                              --                     --
                                          --------               --------
Consolidated Total                           6,647                  6,377
================================================================================


                                       12
<PAGE>

Wholesale Distribution

      Net sales and other revenue for the three month period ending January 31,
2004 increased by 7.4% or $5 million. Net sales and other revenue for the three
month period ending January 31, 2004 totaled $72.6 million compared to $67.6
million for the same three month period in the prior fiscal year.

      Gross profit increased by $1.2 million to $8.5 million compared to $7.3
million for the same three month period in fiscal 2003. This increase was
primarily due to the increase in revenue. Gross profit as a percentage of total
revenue was 11.7% for the three month period ending January 31, 2004 compared to
10.8% for the same three month period in fiscal 2003.

      Operating, general and administrative expenses increased by $99 thousand
to $5.7 million for three month period ending January 31, 2004 compared to $5.6
million for the previous year. This increase was primarily due to support the
increase in revenue. Such operating, general and administrative expenses as a
percentage of total revenue for the three month period ending January 31, 2004
were 7.8% compared to 8.3% for the three month period ended January 31, 2003.

      Operating income increased by $1.1 million to $2.8 million for the three
month period ending January 31, 2004 compared to $1.7 million for the previous
year. This increase is primarily attributable to the increase in gross profit.

Logistics Services

      Net sales and other revenue for the three month period ending January 31,
2004 decreased by $99 thousand. Net sales and other revenue for the three month
period ending January 31, 2004 totaled $132 thousand compared to $231 thousand
for the same period in the previous fiscal year.

      Gross profit decreased by $18 thousand to $12 thousand during the three
month period ending January 31, 2004 compared to $30 thousand for the same
period during the previous fiscal year. Gross profit as a percentage of total
revenue was 9% for the three month period ending January 31, 2004 compared to
13% for the three month period ended January 31, 2003.

      Operating, general and administrative expenses did not change for the
three month period ending January 31, 2004 compared to the previous year. Such
operating, general and administrative expenses as a percentage of total revenue
for the three month period ending January 31, 2004 were less than 0.1% and were
also less than 0.1% during the same three month period during fiscal 2003.

      Operating income decreased by $18 thousand to $12 thousand for the three
month period ending January 31, 2004 compared to $30 thousand for the same
period the previous year. This decrease is primarily attributable to the
decrease in gross profit.

Direct Customer Services

      Net sales and other revenue for the three month period ending January 31,
2004 increased by 17.7% or $1.2 million. Net sales and other revenue for the
three month period ending January 31, 2004 totaled $8.1 million compared to $6.9
million for the same period the previous year.

      Gross profit increased by $82 thousand to $945 thousand in the three month
period ending January 31, 2004 compared to $863 thousand for the same period the
previous fiscal year. This increase was primarily due to the increase in
revenue. Gross profit as a percentage of total revenue was 11.7% for the three
month period ending January 31, 2004 compared to 12.6% for the three month
period ended January 31, 2003.

      Operating, general and administrative expenses increased by $171 thousand
to $972 thousand for the three month period ending January 31, 2004 compared to
$801 thousand for the same period the previous year. This increase was primarily
due to support the increase in revenue. Such operating, general and
administrative expenses as a percentage of total revenue for the three month
period ending January 31, 2004 were 12.0% compared to 11.7% for the three month
period ended January 31, 2003.

                                       13
<PAGE>

      Operating income (loss) decreased by $88 thousand to a $27 thousand loss
for the three month period ending January 31, 2004 compared to $61 thousand
income for the same period the previous year.

Six months ended  January 31, 2004 as compared to six months  ended  January 31,
2003.

      Net sales and other revenue for the six months ending January 31, 2004
increased $18.6 million to $161.9 million compared to $143.3 million for the
same period the previous year. The 13% growth was principally attributable to
increased sales to existing customers of $700 thousand and to new customers of
$17.9 million.

      Gross profit for the six months ending January 31, 2004 increased $3.3
million to $18.1 million compared to $14.8 million for the same period the
previous year. This increase is primarily attributable to the increase in net
sales and other revenue. Gross profit as a percentage of net sales and other
revenue was 11.2% compared to 10.4% for the same period the previous year.

      Operating, general and administrative expenses for the six months ending
January 31, 2004 increased $1.2 million to $14.0 million compared to $12.8
million for the same period the previous year. This increase is primarily
attributable to support the increase in net sales and other revenue. These
expenses as a percentage of net sales and other revenue were 8.6% compared to
8.9% for the same period the previous year.

      Operating income for the six months ending January 31, 2004 increased $2.1
million to $4.1 million compared to $2.0 million for the same period the
previous year. This increase is primarily attributable to the increase in gross
profit of $3.3 million which was partially offset by the increase in operating,
general and administrative expenses of $1.2 million. Interest expense decreased
from $525 thousand to $492 thousand. The decrease is principally related to a
lower average balance on the revolving line of credit.

Operating Segments

      The following table summarizes the Company's operations by business
segment:

================================================================================
                                           Six Months Ended January 31
                                                  (in thousands)
                                          -------------------------------
                                            2004                   2003
                                          --------               --------
NET SALES
    Wholesale Distribution                 161,088               $142,223
    Logistics Services                         245                  1,344
    Direct Customer Services                18,318                 13,042
    Eliminations                           (17,693)               (13,348)
                                          --------               --------
Consolidated Total                         161,888                143,261

COST OF SALES
    Wholesale Distribution                 145,138                129,011
    Logistics Services                         232                  1,281
    Direct Customer Services                16,124                 11,298
    Eliminations                           (17,693                (13,159)
                                          --------               --------
Consolidated Total                         143,802                128,430

OPERATING, GENERAL AND
ADMINISTRATIVE EXPENSES
    Wholesale Distribution                  11,801                 11,191
    Logistics Services                        --                     --
    Direct Customer Services                 2,158                  1,609
    Eliminations                              --                     --
                                          --------               --------
Consolidated Total                         143,802                 12,800

================================================================================


                                       14
<PAGE>

Wholesale Distribution

      Net sales and other revenue for the six month period ending January 31,
2004 increased by 13.3% or $18.9 million. Net sales and other revenue for the
six month period ending January 31, 2004 totaled $161.1 million compared to
$142.2 million for the same six month period in the prior fiscal year.

      Gross profit increased by $2.7 million to $15.9 million compared to $13.2
million for the same six month period in fiscal 2003. This increase was
primarily due to the increase in revenue. Gross profit as a percentage of total
revenue was 9.9% for the six month period ending January 31, 2004 compared to
9.3% for the same six month period in fiscal 2003.

      Operating, general and administrative expenses increased by $610 thousand
to $11.8 million for the six month period ending January 31, 2004 compared to
$11.2 million for the previous year. This increase was primarily due to support
the increase in revenue. Such operating, general and administrative expenses as
a percentage of total revenue for the six month period ending January 31, 2004
were 7.3% compared to 7.9% for the six month period ended January 31, 2003.

      Operating income increased by $2.1 million to $4.1 million for the six
month period ending January 31, 2004 compared to $2.0 million for the previous
year. This increase is primarily attributable to the increase in gross profit.

Logistics Services

      Net sales and other revenue for the six month period ending January 31,
2004 decreased by $1.1 million. Net sales and other revenue for the six month
period ending January 31, 2004 totaled $245 thousand compared to $1.3 million
for the same period in the previous fiscal year.

      Gross profit decreased by $50 thousand to $13 thousand during the six
month period ending January 31, 2004 compared to $63 thousand for the same
period during the previous fiscal year. Gross profit as a percentage of total
revenue was 5.3% for the six month period ending January 31, 2004 compared to
4.7% for the six month period ended January 31, 2003.

      Operating, general and administrative expenses did not change for the six
month period ending January 31, 2004 compared to the previous year. Such
operating, general and administrative expenses as a percentage of total revenue
for the six month period ending January 31, 2004 were less than 0.1% and were
also less than 0.1% during the same six month period during fiscal 2003.

      Operating income decreased by $50 thousand to $13 thousand for the six
month period ending January 31, 2004 compared to $63 thousand for the same
period the previous year. This decrease is primarily attributable to the
decrease in gross profit.

Direct Customer Services

      Net sales and other revenue for the six month period ending January 31,
2004 increased by 40.5% or $5.3 million. Net sales and other revenue for the six
month period ending January 31, 2004 totaled $18.3 million compared to $13.0
million for the same period the previous year.

      Gross profit increased by $450 thousand to $2.2 million in the six month
period ending January 31, 2004 compared to $1.7 million for the same period the
previous fiscal year. This increase was primarily due to the increase in
revenue. Gross profit as a percentage of total revenue was 12.0% for the six
month period ending January 31, 2004 compared to 13.4% for the six month period
ended January 31, 2003.

      Operating, general and administrative expenses increased by $549 thousand
to $2.2 million for the six month period ending January 31, 2004 compared to
$1.6 million for the same period the previous year. This increase was primarily
due to support the increase in revenue. Such operating, general and
administrative expenses as a percentage of total revenue for the six month
period ending January 31, 2004 were 11.8% compared to 12.3% for the six month
period ended January 31, 2003.

                                       15
<PAGE>

      Operating income decreased by $100 thousand to $36 thousand for the six
month period ending January 31, 2004 compared to $136 thousand for the same
period the previous year.

Seasonality in Operating Results

      The Company's quarterly sales and operating results have varied
significantly in the past and will likely continue to do so in the future.
Historically, the Company's sales are seasonal with peak sales in the spring and
fall. The cyclical nature is directly tied to the significant amount of business
the Company does in the livestock sector. Product use cycles are directly
related to certain medical procedures performed by veterinarians on livestock
during the spring and fall.

      In the last few years the Company has been selling more companion animal
related products. These products tend to have a different seasonal nature which
minimally overlaps the livestock business cycles. The net result is a reduction
of the cyclical seasonal nature of the business. Minimizing the cyclical nature
of the Company's business has allowed for more efficient utilization of all
resources.

Liquidity and Capital Resources

      The Company expends capital primarily to fund day-to-day operations and
expand those operations to accommodate sales growth. It is necessary for the
Company to expend necessary funds to maintain significant inventory levels in
order to fulfill its commitment to its customers. However between March 2002 and
June 2003, the Company expended significant funds on various capital
expenditures. On March 15, 2002, the Company signed a lease agreement with
Kinsley Equities II Limited Partnership for 70,000 square feet of warehouse
space in York, Pennsylvania. The initial term of the lease is five years. The
Company uses this facility to ship products to its customers in that
geographical area of the United States. In June 2003, the Company exercised an
option to lease additional 17,500 square feet of space in the York facility for
a total of 87,500 square feet of leased space in York, Pennsylvania.

      In October 2002, the Company purchased 10 acres of land adjacent to the
current corporate facility in Omaha, Nebraska for approximately $808,000 in
order to provide the Company with land available for future expansion of its
Omaha facility. In addition to the purchase of the additional 10 acres in Omaha,
Nebraska, the Company made significant capital investments in equipment and
furniture, including the purchase of office furniture, computer software,
warehouse and computer equipment. The Company purchased some of the equipment in
February 2003 by using a capital lease in the amount of $343,075, with interest
at 4.58% and monthly payments of $10,218 through February 2006.

      Historically, the Company has financed its cash requirements primarily
from short term bank borrowings and cash from operations. At the end of the
three month period ended January 31, 2004, there were no additional material
commitments for capital expenditures.

      In May 2003, the Company and U.S. Bank mutually agreed to amend and
restate the Company's Revolving Credit Agreement with U.S. Bank dated December
1, 2001 in its entirety and to establish a revolving line of credit facility and
a term loan facility and to add the Company's subsidiaries, ProConn, LLC and
Exact Logistics, LLC as borrowers. As part of this amendment and restatement,
the Company, ProConn, Exact Logistics and US. Bank entered into an Amended and
Restated Loan Agreement dated May 12, 2003 and the Company converted $4,000,000
of the Company's then current obligations under the original Revolving Credit
Agreement into a term loan. The Company, ProConn, Exact Logistics and U.S. Bank
entered into a Term Promissory Note dated May 12, 2003 in the amount of
$4,000,000 which accrues interest at a fixed rate of 5.77% per annum. The
Company, ProConn and Exact Logistics are jointly and severally liable for the
obligations under the Term Promissory Note. The Term Promissory Note matures
June 1, 2008. The payment terms for the Term Promissory Note provide that the
Company make interest payments of $614.11 per day from May 12, 2003 through May
31, 2003. Thereafter, the Term Promissory Note is payable in 59 installments of
principal and interest in the amount of $76,904.14 which are payable monthly
through May 1, 2008. As of June 1, 2008, all unpaid principal and interest will
be due. The Company may not prepay the Term Promissory Note without the prior
written consent of U.S. Bank and the payment of a prepayment fee based on the
net present value of the amount of principal to be prepaid. As of January 31,
2004, the Company had $3,605,501 outstanding on the Term

                                       16
<PAGE>

Promissory Note.

     On November 26, 2003, the Company, ProConn, Exact Logistics and U.S. Bank
entered into an Extension Agreement to extend the maturity of the revolving line
of credit by two months in order to negotiate an increase to such line of
credit. On December 29, 2003, the Company, ProConn, Exact Logistics and U.S.
Bank entered into a First Amendment to the Amended and Restated Loan Agreement
whereby U.S. Bank agreed to increase the Company's revolving line of credit to
$25,000,000 and the Company agreed to amend certain of its financial covenants
under the Amended and Restated Loan Agreement. The increased revolving line of
credit is evidenced by a Revolving Promissory Note dated December 29, 2003 for
$25,000,000 between U.S. Bank, the Company, ProConn and Exact Logistics. The
Company, ProConn and Exact Logistics are jointly and severally liable for the
obligations under the Revolving Promissory Note. The Revolving Promissory Note
matures on January 1, 2005. The maximum amount which can be borrowed thereunder
is $25,000,000. The actual principal amount outstanding varies as the Company
borrows and repays its obligations throughout the term of the loan. Advances
made under the Revolving Promissory Note accrue interest at a variable rate
equal to the U.S. Bank reference rate plus 2.70% (the LIBOR Rate). As of January
31, 2004, the variable interest rate at which the Revolving Promissory Note
accrued interest was 3.80% and the Company had $18,993,384 outstanding
thereunder.

      Both the Term Promissory Note and the Revolving Promissory Note are
secured by a first and second mortgage held by US Bank on the Company's Omaha
facility as well as a first security interest on all accounts receivable,
inventory, chattel paper, equipment, instruments, investment property, deposit
accounts, documents, letter of credit rights, fixtures, all personal property
and general intangibles. The Amended and Restated Loan Agreement as amended by
the First Amendment imposes a number of conditions which must be met by the
Company, ProConn and Exact Logistics on an on-going basis prior to the U.S.
Bank's disbursement of loan funds under the Revolving Promissory Note,
including, without limitation providing the Bank with annual audited financial
statements and monthly interim financial statements. Failure to comply with
these conditions will result in a default under the Amended and Restated Loan
Agreement, Revolving Promissory Note and Term Promissory Note which permits U.S.
Bank to accelerate the payment of the outstanding principal and accrued interest
under both notes.

      As in previous years, the Company's capital expenditures were made to
finance day-to-day operations and to expand its operations to accommodate the
growth in the number of customers and corresponding growth in sales. Inventory
needs and expenses associated therewith continue to grow. Capital requirements
have been funded primarily from short-term bank borrowings and cash derived from
its operations.

      Operating Activities. Net cash consumed by operating activities of $10.3
million for the six months ending January 31, 2003 was primarily attributable to
an increase of $8.7 million in receivables and an increase of $22.4 million in
inventories. These were partially offset by an increase of $19.0 million in
accounts payable. Net cash consumed by operating activities of $9.9 million for
the six months ending January 31, 2004 was primarily attributable to an increase
of $6.0 million in receivables and an increase of $18.2 million in inventories.
These were partially offset by an increase of $12.8 million in accounts payable.

      Investing Activities. Net cash consumed by investing activities of $1.7
million for the six months ending January 31, 2003 was primarily attributable to
the purchase of 10 acres of land adjoining the current corporate headquarters in
Omaha, Nebraska for $808 thousand plus investments in equipment, including the
purchase of office, warehouse and computer equipment. Net cash consumed by
investing activities of $724 thousand for period ending January 31, 2004 was
primarily attributable to investments in equipment and furniture, including the
purchase of office furniture, computer software, warehouse and computer
equipment.

      Financing Activities. Net cash provided by financing activities of $11.0
million for period ending January 31, 2003 was primarily attributable to net
loan proceeds of $8.4 million. Net cash provided by financing activities of $8.7
million for period ending January 31, 2004 was primarily attributable to net
loan proceeds of $9.2 million.


                                       17
<PAGE>

Off-Balance Sheet Arrangements

      At January 31, 2004, the Company did not have any off-balance sheet
arrangements.

Related Party Transactions

      In the normal course of business the Company sells to its affiliate, board
of directors and key employees under normal terms and conditions. See Note 2 to
the Company's consolidated financial statements and notes thereto included in
the Company's Annual Report on Form 10-K for the year ended July 31, 2003 filed
with the SEC.

Critical Accounting Policies

      The Securities and Exchange Commission ("SEC" or the "Commission")
recently issued disclosure guidance for "critical accounting policies". The SEC
defines "critical accounting policies" as those that require application of
management's most difficult, subjective or complex judgments, often as a result
of the need to make estimates about the effect of matters that are inherently
uncertain and may change in subsequent periods.

      The Company's significant accounting policies are described in Note 2 to
the Company's consolidated financial statements and notes thereto included in
the Company's Annual Report on Form 10-K for the year ended July 31, 2003 filed
with the SEC. Not all of these significant accounting policies require
management to make difficult, subjective or complex judgments or estimates.
However, management of the Company is required to make certain estimates and
assumptions during the preparation of consolidated financial statements in
accordance with accounting principles generally accepted in the United States of
America. These estimates and assumptions impact the reported amount of assets
and liabilities and disclosures of contingent assets and liabilities as of the
date of the consolidated financial statements. Estimates and assumptions are
reviewed periodically and the effects of revisions are reflected in the period
they are determined to be necessary. Actual results could differ from those
estimates. Following are some of the Company's critical accounting policies
impacted by judgments, assumptions and estimates.

Use of Estimates

      The preparation of 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 and disclosure of contingent assets and liabilities at
the date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual amounts could differ from those
estimates.

Revenue Recognition

      The Company derives its revenue primarily from the sale of products,
consignment sales and agency agreements. Revenues are recognized as product is
shipped and related services are performed in accordance with all applicable
revenue recognition criteria. For these transactions, the Company applies the
provisions of SEC Staff Accounting Bulletin No. 101, "Revenue Recognition." The
Company recognizes revenue when there is persuasive evidence of an arrangement,
title and risk of loss have passed, delivery has occurred or the contractual
obligations are met, the sales price is fixed or determinable and collection of
the related receivable is reasonably assured.

Inventories

      Inventories consist substantially of finished goods held for resale and
are valued at the lower of cost or market, not in excess of net realizable
value. Cost is determined primarily by the weighted average cost method.


                                       18
<PAGE>

Major Customer, Major Suppliers and Credit Concentrations

      Other financial instruments, which potentially subject the Company to
concentrations of credit risk, are trade accounts receivable and trade payables.
One customer comprised a significant individual receivable consisting of 10.7%
of the Company's receivables at January 31, 2004. One customer comprised a
significant individual receivable consisting of 9.7% of the Company's
receivables at January 31, 2003. One vendor comprised 30.1% of all purchases for
the six month period ended January 31, 2004.

Income Taxes

      The Company provides for income taxes using the asset and liability method
under which deferred income taxes are recognized for the estimated future tax
effects attributable to temporary differences and carry-forwards that result
from events that have been recognized either in the financial statements or the
income tax returns, but not both. The measurement of current and deferred income
tax liabilities and assets is based on provisions of enacted laws. Valuation
allowances are recognized if, based on the weight of available evidence, it is
more likely than not that some portion of the deferred tax assets will not be
realized.

Goodwill and Other Intangible Assets

      Annually, the Company subjects goodwill and other identifiable intangible
assets with indefinite lives to an impairment test, in accordance with
accounting procedures generally accepted in the United States. Other intangible
assets continue to be amortized over their useful lives

      Other identifiable intangible assets consist of the Company trademark and
loan origination fees. Trademarks have an indefinite life and therefore are not
amortized. Loan origination fees constitute the Company's identifiable
intangible asset subject to amortization. Amortization of the loan origination
fees is computed on a straight-line basis over the term of the related note.
Amortization expense is included in interest expense on the Consolidated
Statements of Income.

New Accounting Pronouncements

      In May 2003, the Financial Accounting Standards Board (FASB) issued
Statement of Financial Accounting Standard (SFAS) No. 150, "Accounting for
Certain Financial Instruments with Characteristics of both Liabilities and
Equity". SFAS No. 150 establishes standards for issuer classification and
measurement of certain financial instruments with characteristics of both
liabilities and equity. Instruments that fall within the scope of SFAS No. 150
must be classified as a liability. SFAS No. 150 is effective for financial
instruments entered into or modified after May 31, 2003, and otherwise is
effective for the beginning of the first interim period beginning after June 15,
2003, except for mandatory redeemable financial instruments of non-public
entities. Management adopted SFAS No. 150 in the first quarter of the fiscal
year ending July 31, 2004. The Company's shares of common stock issued to single
member limited liability companies and sole proprietorships are subject to
mandatory redemption upon death of the shareholder. They are required to be
presented as liabilities under the provision of SFAS No. 150 within the
long-term liability section on the Consolidated Balance Sheets. The adoption of
SFAS No. 150 did not have a material impact on the Company's consolidated
results of operations. However, the adoption of SFAS No. 150 did impact the
Company's consolidated presentation of financial position. Shares issued to
single member limited liability companies and sole proprietorships are
mandatorily redeemable upon death of the holder at the price the shareholder
paid for the share. Single member limited liability companies and sole
proprietorships comprised 688 shares at January 31, 2004. These shares,
including associated additional paid-in capital net of amounts receivable, were
reclassified to long-term liabilities in the amount of $2,024,625 (see Note 6 to
the Condensed, Consolidated Financial Statements).


                                       19
<PAGE>

Recent Accounting Pronouncements

      In January 2003, FASB issued FASB Interpretation Number 46, "Consolidation
of Variable Interest Entities," (FIN 46). This interpretation of Accounting
Research Bulletin No. 51, "Consolidated Financial Statements," addresses
consolidation by business enterprises of variable interest entities. Under
current practice, two enterprises generally have been included in consolidated
financial statements because one enterprise controls the other through voting
interests. FIN 46 defines the concept of "variable interests" and requires
existing unconsolidated variable interest entities to be consolidated by their
primary beneficiaries if the entities do not effectively disperse risks among
the parties involved. This interpretation applies immediately to variable
interest entities created after January 31, 2003. Initially, FIN 46 was to apply
in the first fiscal year or interim period beginning after June 15, 2003, to
variable interest entities in which an enterprise holds a variable interest that
it acquired before February 1, 2003. At its October 8, 2003 meeting, FASB agreed
to defer the effective date of FIN 46 for variable interests held by public
companies in all entities that were acquired prior to February 1, 2003. The
deferral will require that public companies adopt the provisions of FIN 46 at
the end of periods ending after December 15, 2003. The interpretation may be
applied prospectively with a cumulative-effect adjustment as of the beginning of
the first year restated. We adopted FIN 46 beginning in the second quarter of
fiscal 2004 and it did not have a material impact on our financial position,
cash flows, or results of operation.

      In April 2003, the FASB issued SFAS 149 "Amendment of Statement 133 on
Derivative Instruments and Hedging Activities". SFAS 149 amends SFAS 133
"Accounting for Derivative Instruments and Hedging Activities", to require more
consistent reporting of contracts as either derivatives or hybrid instruments.
SFAS 149 is effective for contracts entered into or modified after June 30,
2003. We adopted SFAS 149 beginning in the first quarter of fiscal 2004 and it
did not have a material impact on our financial position, cash flows or results
of operations

Business Trends And Risk Factors That May Affect Future Results

      The risks and uncertainties described below are not the only risks and
uncertainties the Company faces. Additional risks and uncertainties not
presently known to the Company or that are currently deemed immaterial may also
impair its business operations. If any of the following risks actually occur,
the Company's business, financial condition or results of operations may suffer.

Fluctuation of Future Results Due to Factors Outside of Management's
Control

      The Company's quarterly operating results may significantly fluctuate and
you should not rely on them as an indication of its future results. The
Company's future revenues and results of operations may significantly fluctuate
due to a combination of factors, many of which are outside of management's
control. The most important of these factors include:

      o     seasonality;
      o     the impact of economic factors on the national veterinary practices;
      o     the timing and effectiveness of marketing programs;
      o     the timing of the introduction of new products and services;
      o     the timing and effectiveness of capital expenditures; and
      o     competition.

The Company may be unable to reduce operating expenses quickly enough to offset
any unexpected revenue shortfall. If the Company has a shortfall in revenue
without a corresponding reduction to its expenses, operating results may suffer.
The Company's operating results for any particular quarter may not be indicative
of future operating results. You should not rely on quarter-to-quarter
comparisons of results of operations as an indication of the Company's future
performance.

Failure to Manage Growth Could Impair Business

      The Company's business has grown rapidly. The Company's revenues increased
from $63.5 million in fiscal 1995 to $299 million in fiscal 2003. During that
same period the Company has significantly expanded its operations in the United
States. The number of employees increased by


                                       20
<PAGE>

approximately 205 individuals during this period.

      It is difficult to manage this rapid growth, and future success depends on
the Company's ability to implement and/or maintain:

      o     sales and marketing programs;
      o     customer support programs;
      o     current product and service lines;
      o     technological support which equals or exceeds our competitors;
      o     recruitment and training of new personnel; and
      o     operational and financial control systems.

      The Company's ability to successfully offer products and services and
implement its business plan in a rapidly evolving market requires an effective
planning and management process. Management expects that the Company will need
to continue to improve its financial and managerial controls, reporting systems
and procedures and to expand the training of its work force.

      If the Company is not able to manage the rapid growth, there is a risk its
customer service quality could deteriorate, which may in turn lead to decreased
sales. This could impact shareholders in two ways - the ability to obtain
products from the Company could be negatively affected and the Company's profits
could decrease.

Loss of Key Personnel Could Hurt Business

      The Company's future success depends to a significant extent on the
skills, experience and efforts of Company President and Chief Executive Officer,
Dr. Lionel Reilly, and key members of his staff. The loss of any or all of these
individuals could damage business. The Company has purchased two life insurance
policies on the life of Dr. Reilly. Both policies are flexible premium
adjustable life insurance policies for $500,000. The Company is the beneficiary
of one of the policies and the Lionel Reilly Trust is the beneficiary of the
other policy.

      In addition, the Company's products and services are specialized in
nature. In general, only highly qualified and trained individuals have the
necessary skills to market our products and provide Company services. The
Company faces intense competition for the hiring of these professionals. Any
failure on the Company's part to hire, train and retain a sufficient number of
qualified professionals would damage business. The Company does not generally
enter into employment agreements requiring these employees to continue in
employment for any period of time.

The Company Relies on Strategic Relationships to Generate Revenue

      To be successful, the Company must establish and maintain strategic
relationships with leaders in the manufacturing industry. This is critical to
its success because management believes that these relationships will enable us
to (1) extend the reach of the Company's distribution and services to the
various participants in the veterinary industry; (2) obtain specialized
expertise; and (3) generate revenue.

      Entering into strategic relationships is complicated because some of the
Company's current and future manufacturers are potential strategic partners and
these manufacturers may decide to compete with us in the future. In addition,
the Company may not be able to establish relationships with key participants in
the veterinary distribution industry if it has established relationships with
competitors of these key participants. Consequently, it is important that the
Company is perceived as independent of any particular customer or partner.

      Most of the Company's agreements with manufacturers run for one year. The
Company may not be able to renew its existing agreements on favorable terms, or
at all. If the Company loses the right to distribute products under such
agreements, the Company may lose access to certain of its products and lose a
competitive advantage. Potential competitors could sell products from
manufacturers that it fails to continue with and erode the Company's market
share.


                                       21
<PAGE>

Performance or Security Problems With Systems Could Damage Business

      The Company's customer satisfaction and its business could be harmed if
the Company or its suppliers experience any system delays, failures or loss of
data. The Company currently process all of its customer transactions and data at
its facilities in Omaha, Nebraska. Although the Company has safeguards for
emergencies, including, without limitation, sophisticated back-up systems, the
occurrence of a major catastrophic event or other system failure at either of
its distribution facilities could interrupt data processing or result in the
loss of stored data. Only some of the Company's systems are fully redundant and
although the Company carries business interruption insurance, it may not be
sufficient to compensate us for losses that may occur as a result of system
failures.

The Company Faces Significant Competition

      The market for veterinary distribution services is intensely competitive,
rapidly evolving and subject to rapid technological change. Some of the
Company's competitors have comparable product lines, technical experience and
financial resources. These organizations may be better known and have more
customers than us. The Company may be unable to compete successfully against
these organizations.

      Many of the Company's competitors have distribution strategies that
directly compete with us. The Company has many competitors including:

      o     Walco International, Inc.;
      o     Lextron Animal Health, Inc.;
      o     J. A. Webster, Inc. d/b/a Webster Veterinary Supply;
      o     The Butler Company; and
      o     MWI  Veterinary Supply Co.

      In addition, management expects that companies and others specializing in
the veterinary products industry will offer competitive products. Some of the
Company's large manufacturers/suppliers may also compete with us through direct
marketing and sales of their products. Increased competition could result in:

      o     price reductions, decreased revenue and lower profit margins;
      o     loss of market share; and
      o     increased marketing expenditures.

These and other competitive factors could materially and adversely affect the
Company's results of operations.

Changes in the Veterinary Distribution Industry Could Adversely Affect
Business

      The veterinary distribution industry is subject to changing political,
economic and regulatory influences. Both state and federal government agencies
regulate the distribution of certain animal health products and the Company is
subject to regulation, either directly or indirectly, by the US Department of
Agriculture, the Food and Drug Administration (FDA) and the Drug Enforcement
Administration (DEA). To the extent the political party in power changes,
whether in the executive or legislative branch, the regulatory stance these
agencies take could change. The Company's suppliers are subject to regulation by
the Department of Agriculture, the FDA and the Environmental Protection Agency,
and material changes to the applicable regulations could affect the suppliers
ability to manufacture certain products which could adversely impact the
Company's product supply. In addition, some of the Company's customers may rely,
in part, on farm and agricultural subsidy programs. Changes in the regulatory
positions that impact the availability of funding for such programs could have
an adverse impact on the Company's customers' financial positions which could
lead to decreased sales.

      These factors affect the Company's purchasing practices and operation of
its business. Some of the Company's competitors are consolidating to create
integrated delivery systems with greater market presence. These competitors may
try to use their market power to negotiate price reductions with the


                                       22
<PAGE>

manufacturers. If the Company were forced to reduce its prices, the Company's
operating results would suffer. As the veterinary distribution industry
consolidates, competition for customers will become more intense.

ITEM 3:    QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

      The Company is exposed to market risks primarily from changes in U.S.
interest rates. The Company does not engage in financial transactions for
trading or speculative purposes.

      The interest payable on the Company's revolving line of credit is based on
variable interest rates and is therefore affected by changes in market interest
rates. If interest rates on variable rate debt increased by 0.38 percentage
points (a 10% change from the interest rate as of January 31, 2004), assuming no
change in the Company's outstanding balance under the line of credit
(approximately $19.0 million as of January 31, 2004), the Company's annualized
income before taxes and cash flows from operating activities would decline by
approximately $72 thousand.

      In May 2003, the Company and U.S. Bank mutually agreed to amend and
restate the Company's Revolving Credit Agreement with U.S. Bank dated December
1, 2001 in its entirety and to establish a revolving line of credit facility and
a term loan facility and to add the Company's subsidiaries, ProConn, LLC and
Exact Logistics, LLC as borrowers. As part of this amendment and restatement,
the Company, ProConn, Exact Logistics and US. Bank entered into an Amended and
Restated Loan Agreement dated May 12, 2003 and the Company converted $4,000,000
of the Company's then current obligations under the original Revolving Credit
Agreement into a term loan. The Company, ProConn, Exact Logistics and U.S. Bank
entered into a Term Promissory Note dated May 12, 2003 in the amount of
$4,000,000 which accrues interest at a fixed rate of 5.77% per annum. The
Company, ProConn and Exact Logistics are jointly and severally liable for the
obligations under the Term Promissory Note. The Term Promissory Note matures
June 1, 2008. The payment terms for the Term Promissory Note provide that the
Company make interest payments of $614 per day from May 12, 2003 through May 31,
2003. Thereafter, the Term Promissory Note is payable in 59 installments of
principal and interest in the amount of $76,904 which are payable monthly
through May 1, 2008. As of June 1, 2008, all unpaid principal and interest will
be due. The Company may not prepay the Term Promissory Note without the prior
written consent of U.S. Bank and the payment of a prepayment fee based on the
net present value of the amount of principal to be prepaid. As of January 31,
2004, the Company had $3,605,601 outstanding on the Term Promissory Note.

     On November 26, 2003, the Company, ProConn, Exact Logistics and U.S. Bank
entered into an Extension Agreement to extend the maturity of the revolving line
of credit by two months in order to negotiate an increase to such line of
credit. On December 29, 2003, the Company, ProConn, Exact Logistics and U.S.
Bank entered into a First Amendment to the Amended and Restated Loan Agreement
whereby U.S. Bank agreed to increase the Company's revolving line of credit to
$25,000,000 and the Company agreed to amend certain of its financial covenants
under the Amended and Restated Loan Agreement. The increased revolving line of
credit is evidenced by a Revolving Promissory Note dated December 29, 2003 for
$25,000,000 between U.S. Bank, the Company, ProConn and Exact Logistics. The
Company, ProConn and Exact Logistics are jointly and severally liable for the
obligations under the Revolving Promissory Note. The Revolving Promissory Note
matures on January 1, 2005. The maximum amount which can be borrowed thereunder
is $25,000,000. The actual principal amount outstanding varies as the Company
borrows and repays its obligations throughout the term of the loan. Advances
made under the Revolving Promissory Note accrue interest at a variable rate
equal to the U.S. Bank reference rate plus 2.70% (the LIBOR Rate). As of January
31, 2004, the variable interest rate at which the Revolving Promissory Note
accrued interest was 3.80% and the Company had $18,993,384 outstanding
thereunder.

      Both the Term Promissory Note and the Revolving Promissory Note are
secured by a first and second mortgage held by U.S. Bank on the Company's Omaha
facility as well as a first security interest on all accounts receivable,
inventory, chattel paper, equipment, instruments, investment property, deposit
accounts, documents, letter of credit rights, fixtures, all personal property
and general intangibles.

      In December 1999, U.S. Bank loaned the Company $1,400,000 to finance the
Company's purchase of warehouse equipment and office furniture used to furnish
the Omaha facility. The loan is


                                       23
<PAGE>

evidenced by a Promissory Note dated December 15, 1999. The note matures January
1, 2005 and accrues interest at a fixed rate of 8.66% per annum The payment
terms provide that the Company pay the loan in 60 monthly payments of
$29,032.29. As of January 31, 2004, the Company had $331,411 outstanding under
this note.

ITEM 4:    DISCLOSURE CONTROLS AND PROCEDURES

      (a) Evaluation of Disclosure Controls and Procedures: The Company's Chief
Executive Officer and Chief Financial Officer have evaluated the effectiveness
of the Company's disclosure controls and procedures (as such term is defined in
Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as
amended (the "Exchange Act")) as of the end of the period covered by this
quarterly report on Form 10-Q (the "Evaluation Date"). Based on such evaluation,
such officers have concluded that, as of the Evaluation Date, the Company's
disclosure controls and procedures are effective in alerting them on a timely
basis to material information relating to the Company (including its
consolidated subsidiaries) required to be included in the Company's periodic
filings under the Exchange Act.

      (b) Changes in Internal Controls: Since the Evaluation Date, there have
not been any significant changes in the Company's internal controls or in other
factors that have materially affected, or are reasonably likely to materially
affect, the Company's internal controls over financial reporting.


                                     PART II
                                OTHER INFORMATION

ITEM 1:    LEGAL PROCEEDINGS

      The Company has not been informed of any legal matters that would have a
material adverse effect on its financial condition, results of operation or cash
flow.

ITEM 2:    CHANGES IN SECURITIES AND USE OF PROCEEDS

      (d) Use of Proceeds:

            On October 19, 1999 the registration statement (Registration No.
333-86629) for the initial public offering of our common stock became effective.
The Company registered 500 shares of common stock with an aggregate offering
price of $1,500,000 pursuant to this registration statement. On November 8,
2001, the Company filed another registration statement (Registration No.
333-72962) for the public offering of an additional 500 shares of common stock,
in addition to the 114 shares previously registered under Registration No.
333-86629 that remain unsold. The Company's current combined offering is for 614
shares of common stock for an aggregate offering price of $1,842,000. Through
January 31, 2004, 392 shares of common stock have been sold for an aggregate
offering price of $1,176,000.

      The amount of expenses incurred in connection with the issuance and
distribution of our common stock increased by approximately $91,000 to $217,792,
including the additional SEC registration fee, Blue Sky filing fees and
expenses, printing expenses, legal fees, and miscellaneous expenses. None of
these expenses represented a direct or indirect payment to directors, officers,
persons owning 10% or more of any class of our common stock.

      The net offering proceeds to the Company after deducting the total
expenses are $958,208 as of January 31, 2004.

ITEM 3:     DEFAULTS UPON SENIOR SECURITIES

            None.


                                       24
<PAGE>

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

            (a) The Company held its Annual Shareholders' Meeting on December
12, 2003.

      (b)   The shareholders voted to elect the following two (2) Class I
            Directors to serve until the 2006 Annual Meeting of shareholders and
            until their successors are elected.

            Name                     Votes For    Votes Against    Abstentions
            ----                     ---------    -------------    -----------
            Chester L. Rawson              956          1               27
            Amy Lynne Hinton               956          1               27

ITEM 5:    OTHER INFORMATION

           None.

ITEM 6:    EXHIBITS AND REPORTS ON FORM 8-K

      (a) EXHIBITS REQUIRED TO BE FILED BY ITEM 601 OF REGULATION S-K

            10.1 Extension Agreement dated November 26, 2003 between
Professional Veterinary Products, Ltd., ProConn, LLC, Exact Logistics, LLC and
U.S. Bank, N.A.

            10.2 First Amendment to Amended and Restated Loan Agreement dated
December 29, 2003 between Professional Veterinary Products, Ltd., ProConn, LLC,
Exact Logistics, LLC and U.S. Bank, N.A.

            10.3 Revolving Promissory Note dated December 29, 2003 between
Professional Veterinary Products, Ltd., ProConn, LLC, Exact Logistics, LLC and
U.S. Bank, N.A.

            31.1 Certifications Pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002.

            32.1 Section 1350 Certifications.

      (b) REPORTS ON FORM 8-K

            The Company filed no current reports on Form 8-K during the quarter
            ended January 31, 2004.



                                       25
<PAGE>


                                   SIGNATURES

      Pursuant to the requirements of the Securities and Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.



Date: March 16, 2004                 /s/ Dr. Lionel L. Reilly
                                     -------------------------------------------
                                     Dr. Lionel L. Reilly, President and
                                       Chief Executive Officer



Date: March 16, 2004                 /s/ Neal B. Soderquist
                                     -------------------------------------------
                                     Neal B. Soderquist, Chief Financial Officer


<PAGE>

                                Index to Exhibits

Exhibit No.                       Description

   10.1        Extension Agreement dated November 26, 2003 between  Professional
               Veterinary  Products,  Ltd., ProConn,  LLC, Exact Logistics,  LLC
               and U.S. Bank, N.A.

   10.2        First  Amendment to Amended and  Restated  Loan  Agreement  dated
               December  29,  2003  between  Professional  Veterinary  Products,
               Ltd., ProConn, LLC, Exact Logistics, LLC and U.S. Bank, N.A.

   10.3        Revolving   Promissory  Note  dated  December  29,  2003  between
               Professional  Veterinary  Products,  Ltd.,  ProConn,  LLC,  Exact
               Logistics, LLC and U.S. Bank, N.A.

   31.1        Certifications  Pursuant to Section 302 of the Sarbanes-Oxley Act
               of 2002.

   32.1        Section 1350 Certifications.