Affymetrix Reports First Quarter 2008 Results.

SANTA CLARA, Calif. -- Affymetrix Inc., (Nasdaq:AFFX) today reported its operating results for the first quarter of 2008. Total revenue for the quarter was $169.6 million, including an intellectual property payment of $90 million, as compared to total revenue of $80.4 million in the first quarter of 2007.

Product revenue was $62.8 million, which consists of array and reagent revenue of $58.8 million and instrument revenue of $4.0 million. Service revenue was $8.4 million, and royalties and other revenue were $98.3 million for the first quarter of 2008. This compares to first quarter 2007 product revenue of $64.5 million. Service revenue was $8.8 million, and royalties and other revenue were $7.2 million for the first quarter of 2007. Affymetrix shipped 17 GeneChip([R]) systems in the quarter, bringing its cumulative systems shipped to 1,739 at the end of the first quarter.

The Company reported net income of approximately $46.3 million or $0.58 per diluted share in the first quarter of 2008, which includes a pretax restructuring charge of $13.9 million or $0.17 per diluted share, as compared to net loss of $4.0 million or $0.06 per diluted share in the first quarter of 2007, which included a pretax restructuring charge of $5.4 million or $0.08 per diluted share.

Cost of product sales was $26.0 million in the first quarter of 2008 compared to $22.1 million in the same period of 2007. Cost of services was $5.7 million compared to $6.4 million in the first quarter of 2007. Product gross margin was 59 percent in the first quarter of 2008 compared to 66 percent in the first quarter of 2007.

Operating expenses were $68.2 million for the first quarter of 2008, which includes restructuring charges of $13.9 million, as compared to $60.5 million in the first quarter of 2007, which includes restructuring charges of $5.4 million.

Financial Outlook for 2008

For fiscal 2008, the Company expects total revenue to be in the range of $490 million to $510 million. Total gross margin is expected to be approximately 69 percent, of which 7 percent is expected to be attributable to the one-time $90 million payment. The Company expects total operating expenses between $235 million to $240 million, including total restructuring of approximately $17 million.

Recent Highlights

DNA Analysis

* The Company signed an agreement with Avesthagen Limited, a leading biotechnology company based in Bangalore, India. Under the terms of the agreement, Affymetrix' microarray technology will be used for The AVESTAGENOME Project[TM], a comprehensive genetic study of more than 60,000 Parsi individuals. The project will explore the genetic basis of longevity and create a genetic, genealogic and medical database of the Parsi-Zoroastrian population.

Copy Number

* Affymetrix announced the full commercial launch of its complete Cytogenetic Solution, which combines the high-density SNP Array 6.0 with a simple assay and intuitive software. The microarray-based solution provides cytogenetic researchers with an efficient and accurate method of detecting chromosomal abnormalities associated with congenital diseases such as autism and learning disabilities.

RNA Analysis

* The Company extended its Collaborations in Cancer Research Program (CCRP) to North America, forming an alliance between Affymetrix and 25 leading cancer researchers. The expansion builds on the success of the European CCRP, launched in April 2007. All of the researchers in the program are using Affymetrix' SNP Array 6.0 and the Human Exon 1.0 ST Array to accelerate research on more than 10 types of cancer.

Drug Metabolism

* Affymetrix and Marshfield Clinic today announced that researchers at Marshfield Clinic used the Affymetrix Drug Metabolizing Enzymes and Transporters (DMET) solution to discover a genetic variation associated with an individual's response to the drug warfarin. The study, "CYP4F2 genetic variant alters required warfarin dose," was published by Blood Online. The results of the study could help reduce much of the serious adverse events caused by incorrect warfarin dosage and enable doctors to treat patients with a more effective, personalized form of medicine.

Corporate

* Affymetrix was named as one of the world's top 50 most innovative companies by Fast Company magazine. Affymetrix was the only life sciences company to be recognized. Published in the March 2008 issue, the Company was commended for its work relating to the discovery of genetic variations and drug metabolism.

Affymetrix' management team will host a conference call on April 24, 2008 at 2:00 p.m. PT to review its operating results for the first quarter of 2008. A live webcast can be accessed by visiting the Investor Relations section of the Company's website at www.affymetrix.com. In addition, investors and other interested parties can listen by dialing domestic: (866) 500-AFFX, international: [phone].

A replay of this call will be available from 5:00 p.m. PT on April 24, 2008 until 8:00 p.m. PT on May 1, 2008 at the following numbers: domestic: [phone], international: [phone]. The passcode for both replays is 43267963. An archived webcast of the conference call will be available under the Investor Relations section of the Company's website at www.affymetrix.com.

About Affymetrix

Affymetrix GeneChip[R] microarray technology is the industry-standard tool for analyzing complex genetic information. After inventing microarray technology in the late 1980s, Affymetrix scientists have been dedicated to developing innovative products that provide researchers with a more complete view of the genome. These products continue to accelerate genetic research and enable scientists to develop diagnostics and tailor treatments for individual patients by identifying and measuring the genetic information associated with complex diseases.

Today, Affymetrix technology is used by the world's top pharmaceutical, diagnostic and biotechnology companies, as well as leading academic, government and not-for-profit research institutes. More than 1,700 systems have been shipped around the world and more than 12,000 peer-reviewed papers have been published using the technology.

Affymetrix is headquartered in Santa Clara, Calif., and has manufacturing facilities in Sacramento, Calif., Cleveland, Ohio and Singapore. The company has about 1,100 employees worldwide and maintains sales and distribution operations across Europe and Asia. For more information about Affymetrix, please visit: www.affymetrix.com.

All statements in this press release that are not historical are "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act as amended, including statements regarding Affymetrix' "expectations," "beliefs," "hopes," "intentions," "strategies" or the like. Such statements are subject to risks and uncertainties that could cause actual results to differ materially for Affymetrix from those projected, including, but not limited to: risk related to past and future acquisitions; risks of the company's ability to achieve and sustain higher levels of revenue, higher gross margins and reduced operating expenses; uncertainties relating to technological approaches, risks associated with manufacturing and product development, including risks relating to the relocation of a substantial portion of our manufacturing to Singapore; personnel retention; uncertainties related to cost and pricing of Affymetrix products; dependence on collaborative partners; uncertainties relating to sole-source suppliers; uncertainties relating to FDA and other regulatory approvals; competition; risks relating to intellectual property of others and the uncertainties of patent protection and litigation. These and other risk factors are discussed in Affymetrix' Form 10-K for the year ended December 31, 2007, and other SEC reports, including its Quarterly Reports on Form 10-Q for subsequent quarterly periods. Affymetrix expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Affymetrix' expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based.

PLEASE NOTE:

Affymetrix, the Affymetrix logo and GeneChip are trademarks owned or used by Affymetrix, Inc.

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