Applied Biosystems forms four new business divisions and cuts jobs.

Foster City, CA 7/14/04--Applied Biosystems disclosed in a filing with the US Securities and Exchange Commission that it has restructured. It has formed four new business divisions to replace its current functionally based structure. Unlike the former structure, each new business division is headed by a division president and will include sales and dedicated product development/advanced manufacturing resources as well as product line and marketing management. The Molecular Biology division encompasses DNA Sequencing, Real-Time PCR (previously referred to as Sequence Detection Systems), microarrays, core PCR and DNA Systems, and is being lead on an interim basis by Executive Vice President Catherine Burzik. The Proteomics and Small Molecules division encompasses mass spectrometry, protein sequencing, peptide synthesis, biochromatography and proteomics reagent products (ICAT chemistries) and continues to be led by Laura Lauman. The Applied Markets division includes products for forensics, biosecurity, food/agriculture and environmental applications and is led by Mark Stevenson, previously vice president and general manager of Applied Biosystems Japan. The Service division includes LIMS products and continues to be led by Mike Schneider, who joined the company in February. Announced to employees on July 13, the changes are expected to be substantially completed by the end of September. Other organization changes include: more closely aligning global operations with the new divisions; establishing a Shared Commercial Operations organization to develop sales and marketing tools; and creating a group to drive integrated science product suites for systems biology. During fiscal 2004, the company also created an Advanced Research and Technology (ART) unit, which seeks out new technologies, and expanded its Strategy and Planning function to add additional strategic focus on market opportunities and cross-division initiatives and to manage strategic planning. Starting with the new fiscal year, the company formed a new unit to commercialize new technologies from the ART unit and from the company. As part of the reorganization, the company has eliminated 145 positions, or approximately 3.5% of its work force, with a majority of positions eliminated in R&D and at the Foster City headquarters.

The reorganization began with the start of the new fiscal year 2005 in July. The restructuring is the result of Applied Biosystems" recent operational review (see IBO 12/15/03), which also discussed possible product line divestments. The new divisional structure reflects tighter management practices and revised product line priorities.