Hologic Announces First Quarter Fiscal 2008 Operati...(ombined company. The Company now has ...)

The Company now has four reporting segments: Breast Health (formerly Mammography/Breast Care), Diagnostics, GYN Surgical and Skeletal Health. The Diagnostics and GYN Surgical reporting segments were previously part of Cytyc. The AEG and MammoSite (formerly a part of Cytyc) operations are now included in Breast Health, and the osteoporosis assessment, mini C-arm and MRI products are included in Skeletal Health.

First quarter financial overview by segment:

-- Breast Health revenues increased 43% to $197.0 million for the first

quarter of fiscal 2008 from $137.6 million for the same period in

fiscal 2007. This increase was primarily due to continued increasing

sales of Selenia together with R2 CAD software and the inclusion of the

recently acquired MammoSite product from Cytyc. Operating income for

this business segment in the first quarter of fiscal 2008 increased to

$42.7 million compared to operating income of $24.6 million in the

first quarter of fiscal 2007. This increase in operating income in the

current quarter was primarily due to the significant increase in

revenues and the higher gross margins on increasing product sales of

Selenia and, to a lesser extent, lower cost of CAD in connection with

our acquisition of R2. The operating income included a $2.5 million

charge to cost of revenues relating to the write-up of inventory to

fair market value in connection with the Cytyc merger. Breast Health

costs and expenses in the first quarters of fiscal 2008 and 2007

included $4.9 million and $1.2 million, respectively, of stock-based

compensation.

-- Diagnostics revenues, which includes the Company's ThinPrep products

and Full Term Fetal Fibronectin test, totaled $100.3 million for the

first fiscal quarter of 2008. The Company recognized no revenues from