Gen-Probe Reports Strong Financial Results for First Quarter 2008, Raises Full-Yea...(Three Months Ended ...)

March 31,

2008 2007

Operating activities:

Net income $31,945 $21,475

Adjustments to reconcile net income to net cash

provided by operating activities:

Depreciation and amortization 8,608 8,273

Amortization of premiums on investments, net of

accretion of discounts 1,735 1,052

Stock-based compensation charges 5,192 5,105

Stock option income tax benefits 369 58

Excess tax benefit from employee stock options (145) (1,284)

Gain on sale of stock holdings of Molecular

Profiling Institute, Inc. (1,600) -

Changes in assets and liabilities:

Accounts receivable 3,842 (2,649)

Inventories (1,796) (39)

Prepaid expenses 3,447 (2,478)

Other current assets (1,161) (1,354)

Other long term assets (743) (598)

Accounts payable 3,181 (1,549)

Accrued salaries and employee benefits (3,069) (891)

Other accrued expenses 965 (25)

Income tax payable 15,663 7,815

Deferred revenue (45) (330)

Deferred income tax 688 106

Deferred rent (10) (28)

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