Bio-Rad Reports First Quarter Financial Results HERCULES, Calif., May 5 /PRNewswire-FirstCall/ -- Bio-Rad Laboratories, Inc. (Amex: BIO; BIOb), a multinational manufacturer and distributor of life science research products and clinical diagnostics, announced financial results today for the first quarter ended March 31, 2005. First-quarter net sales from continuing operations were $299.2 million, up 13.9 percent compared to the $262.7 million reported for the first quarter of 2004. On a currency- neutral basis, revenues increased 10.2 percent compared to the first quarter of 2004. This sales growth was the result of gains across a broad array of product areas. Income from continuing operations was $29.5 million compared to $22.6 million in the first quarter last year. Net income for the quarter was $33.5 million. This includes a $4 million gain recorded in discontinued operations related to the sale of the confocal microscopy business. This gain is a result of the resolution of a lease commitment in the UK. First-Quarter Highlights -- Fully diluted earnings were $1.26 per share, compared to $0.83 reported for the first quarter of 2004. -- Life Science segment net sales from continuing operations for the quarter were $144.1 million, up 18.5 percent from the $121.6 million reported last March. On a currency-neutral basis, sales in this area increased by 14.9 percent. -- The Clinical Diagnostics segment reported consistent growth in its core businesses with total net sales of $151.9 million, a 9.4 percent increase over the comparable period last year. On a currency-neutral basis, segment sales increased 5.5 percent over the first quarter of 2004. -- The settlement of the UK lease commitment along with certain other one-time international tax benefits caused the Company's effective tax rate to fall for the quarter to 22.5%. -- In March, the Japanese government overturned an injunction against Bio-Rad, enabling the company to resume sales of its real time PCR instrumentation in that country. Positive sales effects are expected to materialize in the second quarter of 2005. -- Throughout the first quarter, the company's new Experion(TM) Electrophoresis System was well received by customers worldwide. For the Life Science segment, growth in the first quarter was the result of a combination of factors including substantial sales of amplification reagents, process chromatography media and the Bio-Plex(TM) protein assay system. This growth was somewhat tempered, however, by erosion in the average selling price of BSE tests and competition in the real time PCR instrumentation business. Overall, the Clinical Diagnostics segment experienced considerable growth due to increased worldwide sales of its quality control products, continued success in the U.S. with its Aspergillus test, as well as consistent demand in the U.S., Japanese and Asian markets for its blood virus products including the Evolis(TM) System. "While we are still somewhat cautious about 2005, first quarter financial results are a healthy start for the year," said President and Chief Executive Officer Norman Schwartz. "Additionally, the integration of MJ Research is proceeding as planned. Full assimilation of the sales efforts were completed during the first quarter and we have begun to experience some of the operational efficiencies. During the next several quarters, we hope to realize the full potential of the combined businesses." Management will discuss these results in a conference call scheduled for 2:00 p.m. PT (5:00 p.m. ET) today, May 5, 2005. Interested parties can access the call by dialing 800-591-6942 (in the U.S.), or 617-614-4909 (international), access number 51782785. The live web cast can be accessed at http://www.bio-rad.com/ . A replay of the call will be available at 888-286-8010 (in the U.S.), or 617-801-6888 (international), access number 59115610 for seven days following the call and the web cast can be accessed at http://www.bio-rad.com/ for 30 days. Bio-Rad Laboratories, Inc. (http://www.bio-rad.com/) is a multinational manufacturer and distributor of life science research products and clinical diagnostics. It is based in Hercules, California, and serves more than 70,000 research and industry customers worldwide through a network of more than 30 wholly owned subsidiary offices. Various statements made within this press release may constitute "forward- looking statements" for purposes of the Securities and Exchange Commission's "safe harbor" provisions under the Private Securities Litigation Reform Act of 1995 and Rule 3b-6 under the Securities Exchange Act of 1934. The forward- looking statements contained herein involve risks and uncertainties that could cause results to differ materially from the Company's expectations. Bio-Rad Laboratories, Inc. First Quarter 2005 Condensed Consolidated Statements of Income (In thousands, except per share data) (UNAUDITED) Three Months Ended March 31, 2005 2004 Net sales $299,171 $262,749 Cost of goods sold 132,765 113,485 Gross profit 166,406 149,264 Selling, general and administrative expense 99,498 87,057 Product research and development expense 26,823 24,333 Purchased in-process research and development expense -- 900 Interest expense 8,117 5,050 Foreign exchange (gains) losses, net (277) 202 Other (income) expense, net (5,838) 216 Income from continuing operations before taxes 38,083 31,506 Provision for income taxes 8,563 8,886 Income from continuing operations 29,520 22,620 Loss from discontinued operations Discontinued operations, net of tax -- (642) Gain on divestiture net of tax 3,974 -- Net income $33,494 $21,978 Basic earnings per share Continuing operations $1.14 $0.88 Discontinued operations 0.15 (0.02) Net income $1.29 $0.86 Weighted average common shares 25,909 25,624 Diluted earnings per share Continuing operations $1.11 $0.85 Discontinued operations 0.15 (0.02) Net income $1.26 $0.83 Weighted average common shares 26,555 26,444 Certain items have been reclassified to conform to the current year presentation. Bio-Rad Laboratories, Inc. Summary Condensed Consolidated Balance Sheets (In thousands, except per share data) (UNAUDITED) At March 31, At December 31, 2005 2004 Current Assets: Cash and cash equivalents $317,898 $195,734 Short-term investments 65,907 165,899 Accounts receivable, net 250,968 261,243 Inventories, net 208,920 205,512 Prepaid expenses, taxes and other current assets 77,362 80,072 Total current assets 921,055 908,460 Net property, plant and equipment 197,303 202,324 Goodwill, net 113,276 113,276 Other assets 167,280 167,942 Total assets $1,398,914 $1,392,002 Current liabilities: Notes payable and current maturities of long-term debt $9,658 $9,457 Accounts payable 67,145 71,194 Accrued payroll and employee benefits 67,615 79,061 Sales, income and other taxes payable 15,369 15,835 Other current liabilities 138,693 139,828 Total current liabilities 298,480 315,375 Long-term debt, net of current maturities 425,807 425,979 Deferred tax liabilities 26,588 24,772 Other long-term liabilities 23,753 28,988 Stockholders' equity 624,286 596,888 Total liabilities and stockholders' equity $1,398,914 $1,392,002 Certain items have been reclassified to conform to the current year presentation. Bio-Rad Laboratories, Inc. Summary Condensed Consolidated Statement of Cash Flows (In thousands, except per share data) (UNAUDITED) Three Months Ended March 31 2005 2004 Cash flows from operating activities: Cash received from customers $296,648 $266,784 Cash paid to suppliers and employees (259,242) (221,836) Interest paid (8,973) (9,360) Income tax payments (6,532) (9,682) Miscellaneous receipts 4,309 2,211 Discontinued operations (1,327) (811) Net cash provided by operating activities 24,883 27,306 Cash flows from investing activities: Capital expenditures, net (9,774) (13,417) Other investing activities (principally short-term investments) 103,659 (37,405) Net cash used in investing activities 93,885 (50,822) Cash flows from financing activities: Payments on long-term debt (121) (117) Other financing activities 2,916 93 Net cash provided by (used in) financing activities 2,795 (24) Effect of exchange rate changes on cash 601 293 Net increase (decrease) in cash and cash equivalents 122,164 (23,247) Cash and cash equivalents at beginning of period 195,734 65,395 Cash and cash equivalents at end of period $317,898 $42,148 Reconciliation of income from continuing operations to net cash provided by operating activities: Income from continuing operations $29,520 $22,620 Adjustments to reconcile net income to net cash provided by operating activities (net of effects of acquisitions): Depreciation and amortization 15,171 10,500 Changes in working capital (6,905) (2,014) Other (16,877) (3,158) Discontinued operations 3,974 (642) Net cash provided by operating activities $24,883 $27,306 Certain items have been reclassified to conform to the current year presentation. DATASOURCE: Bio-Rad Laboratories, Inc. CONTACT: Christine Tsingos, Chief Financial Officer, or Ron Hutton, Treasurer, both of Bio-Rad Laboratories, Inc., +1-510-724-7000, or Web site: http://www.bio-rad.com/

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