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Gen-Probe Reports Strong Financial Results for Fourth Quarter and Full Year 2007
Date:2/13/2008

ssay during

2008, the Company has not included any US product sales revenue for

this assay in its guidance, based on the time needed to commercialize

the new indication. Non-product revenues in 2008 are expected to

benefit from an approximately $16 million final payment associated

with the successful settlement of Gen-Probe's patent infringement

claims against Bayer HealthCare (now Siemens Healthcare Diagnostics),

and from a $10 million milestone the Company expects to earn from

Novartis if and when the PROCLEIX ULTRIO assay is fully approved on

the TIGRIS system in the United States.

-- Product gross margins approximating 68% to 70% of product sales. This

improvement over 2007 is expected to result primarily from continued

conversion of PACE customers to the APTIMA Combo 2 assay, from

commercial pricing of the PROCLEIX WNV assay on the TIGRIS system, and

from the leverage inherent in rising manufacturing volumes. These

benefits are expected to be partially offset by continued growth of

the PROCLEIX ULTRIO assay in developing markets, where pricing is less

robust.

-- R&D expenses approximating 23% to 24% of total revenues, down slightly

from 2007 as a percentage of revenues. The Company's highest priority

R&D projects for 2008 include the post-marketing HBV yield studies for

the PROCLEIX ULTRIO assay in the United States, development of the

APTIMA human papillomavirus assay, and development of the Panther

instrument platform for low- and mid-volume laboratory customers.

-- Marketing and sales expenses approximating 9% to 10% of total

revenues, similar to 2007 as a percentage of revenues.

-- G&A expenses approximating 11% of total revenues, down slightly

from 2007 as a percentage of revenues.

-- EPS of
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SOURCE Gen-Probe Incorporated
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