Beckman Coulter Announces Second Quarter 20...(ytical sample handling processes for mid...)

-- Entered into an agreement with Siemens Healthcare Diagnostics for sublicense of certain U.S. rights relating to testing for the hepatitis C virus (HCV). Under the agreement, Beckman Coulter can develop, manufacture and sell a quantitative viral load HCV blood test for use on the company's molecular diagnostics instrument, which is in development.

First Half Summary

For the first six months of 2008, revenue increased 17.3%, with the recently acquired flow cytometry products contributing 1% to this growth. Revenue growth was 12.8% in constant currency, versus first half 2007. Year-to-date recurring revenue was up 13.1%, or 8.5% in constant currency. Year-to-date gross margin, impacted by mix reflecting high growth levels in cash instrument and international sales, decreased 100 basis points to 46.1% compared to the first six months of 2007. Adjusting for special items, operating income increased by 12.9% to $160.7 million.

Adjusted operating margin decreased 40 basis points due to $5.7 million of dilution for the flow cytometry acquisition and a payment of $4.6 million related to currency swap agreements embedded in the company's facility leases. On an adjusted basis, net earnings increased by 13.7% and adjusted net earnings per fully diluted share increased 12.1% over the same period 2007. In the first six months, EBITDA (on an adjusted basis) increased nearly 16%, from $244 to $283 million.

Full Year Outlook

Garrett continued, "I am pleased that first half operating income grew almost 13% despite pressures from transportation costs and incremental costs associated with the currency swap extension and dilution from the flow cytometry acquisition. Revenue across all major diagnostics product areas was up considerably. Strong growth in diagnostics recurring revenue signals the productivity of recent additions to our installed base.

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