Agilent Sells Healthcare Solutions Group.

Amsterdam, The Netherlands and Palo Alto, CA 11/17/00-Agilent Technologies announced it will sell its Healthcare Solutions Group (HSG) business to Royal Philips Electronics for $1.7 billion. HSG lost $96 million on net revenue of $1.04 billion in fiscal year 2000 (see page 8). The acquisition will expand Philips Medical Systems' product offerings in automatic external defibrillators and home care technology. Agilent stated that it chose not to make the necessary investments in the business in order to concentrate on its communications and life science divisions.

Although Agilent was unsure in its conference call as to when HSG will be listed as a discontinued operation, the cash flow generated by the sale is much needed. HSG has been a drain on Agilent resources and its sale is further indication that Agilent is indeed narrowing its focus. However, the question remains if this focus will continue to include its traditional analytical products, such as GC. Like HSG, the Chemical Analysis Group may be viewed as a drag on the company's growth, although it does include the high profile and oft mentioned life science products that the company is relying on for future growth.