Caliper Life Sciences Reports Fourth Quarter and Full Year 20...(er products which are used primari...),Health

are used primarily in kinase screening. Automation instrument revenue

for the quarter was level with the fourth quarter of 2006.

-- Service revenue grew 18% in comparison with the fourth quarter of 2006.

Caliper Discovery and Alliances Services ("CDAS") posted strong 29%

growth reflecting the new EPA ToxCast contract awarded in the second

quarter of 2007, plus expanded in vivo phenotyping business with

pharmaceutical companies. Instrument maintenance and other services

posted high single digit growth.

-- Combined product and service gross margins improved to 42% versus the

fourth quarter of 2006. The gain of over 270 basis points in gross

margins compared to the fourth quarter of 2006 reflected increased

volumes, as well as savings from raw materials sourcing initiatives.

-- Operating expenses (R&D plus SG&A) increased by $1.2 million from the

fourth quarter of 2006. This was primarily due to costs associated with

ongoing litigation.

-- Positive operating cashflow was generated in the quarter, and Caliper

ended the period with $19.0 million in cash and marketable securities.

"In the fourth quarter of 2007, we achieved strong revenue performance in all of our key growth drivers: the IVIS Spectrum imaging instrument, the microfluidics-based EZ Reader instrument and the associated ProfilerPro product line of reagents, the Zephyr desktop liquid handler, and CDAS in vitro and in vivo services. This evidence of market support reinforces our belief that our products and services are well positioned for double digit revenue growth in 2008," said Kevin Hrusovsky, president and CEO of Caliper. "Our bottom line reflects a continuing trend of improvement, particularly in product gross margins which gained over 500 basis points in 2007 compared with 2006. There is room to do more. We have 2008 initiatives in plac
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