Independent Auditors' Report

The Board of Directors and Stockholders
Medtox Laboratories, Inc.:

We have audited the accompanying consolidated balance sheet of Medtox 
Laboratories, Inc. and subsidiary as of December 31, 1994, and the related 
consolidated statements of operations, stockholders' equity and cash flows 
for each of the years in the two-year period ended December 31, 1994. These 
consolidated financial statements are the responsibility of the Company's 
management. Our responsibility is to express an opinion on these consolidated 
financial statements based on our audits.

We conducted our audits in accordance with generally accepted auditing 
standards. Those standards require that we plan and perform the audit to 
obtain reasonable assurance about whether the financial statements are free 
of material misstatement. An audit includes examining, on a test basis, 
evidence supporting the amounts and disclosures in the financial statements. 
An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial 
statement presentation. We believe that our audits provide a reasonable basis 
for our opinion.

In our opinion, the consolidated financial statements referred to above present
fairly, in all material respects, the financial position of Medtox Laboratories,
Inc. and subsidiary as of December 31, 1994 and the results of their operations
and their cash flows for each of the years in the two-year period ended 
December 31, 1994 in conformity with generally accepted accounting principles.

                                               KPMG Peat Marwick LLP

Minneapolis, Minnesota
January 31, 1995