Beckman Coulter Announces Net Earnings Growth of More Than 25% in the Second Quarter 2000.

Business Editors

FULLERTON, Calif.--(BUSINESS WIRE)--July 31, 2000

Beckman Coulter, Inc. (NYSE:BEC) announced today second quarter and first half results for the periods ended June 30, 2000.

Second Quarter Results             2000              1999        % Chg
----------------------             ----              ----        -----
  Sales                         $469.4M           $446.2M         5.2%
  Net Earnings                   $32.4M            $25.9M        25.1%
  Per Diluted Share               $1.05             $0.87        20.7%

-- In the second quarter compared to the same period in the prior

year, pretax profit was $47.0 million, or 10.0% of sales, up

23.4% from $38.1 million, or 8.5% of sales.

-- Second quarter sales grew 5.2%. After adjusting for currency,

sales grew 6.7%.

-- Worldwide clinical diagnostics sales grew 3.9% to $367.0

million, while life science research sales grew 10.2% to

$102.4 million.

-- On a geographic basis, sales grew 10.0% in the Americas,

declined 8.8% in Europe and grew 17.4% in Asia. Adjusted for

currency, sales in Europe declined 1.7% and in Asia grew

11.8%.

-- In the quarter, the company reduced debt by $42.0 million.

First Half Results                 2000              1999        % Chg
------------------                 ----              ----        -----
  Sales                         $903.8M           $851.3M         6.2%
  Net Earnings                   $53.4M            $42.9M        24.5%
  Per Diluted Share               $1.75             $1.45        20.7%

-- In the first half compared to the same period in the prior

year, pretax profit was $77.4 million, or 8.6% of sales, up

22.7% from $63.1 million, or 7.4% of sales.

-- First half sales grew 6.2%. After adjusting for currency,

sales grew 7.9%.

-- Worldwide clinical diagnostics sales grew 5.9% to $720.0

million, while life science research sales grew 7.3% to $183.8

million.

-- On a geographic basis, sales grew 10.1% in the Americas,

declined 3.9% in Europe and grew 12.5% in Asia. Adjusted for

currency, sales increased in Europe 4.6% and in Asia 6.3%.

-- In the first half, the company reduced debt by $66.7 million.

Second Quarter Discussion

Within the clinical diagnostics segment, the chemistry business was particularly strong, growing nearly 12% in the quarter. Sales were boosted by growth in placements of coagulation, automation, immunoassay and chemistry systems. The company posted record placements of SYNCHRON LX(R)20 chemistry systems and Power Processor sample preparation workstations.

In the life science research segment, sales grew nearly 40% within the robotic automation / genetic analysis product area. This growth was fueled by continued strong demand for products that simplify and automate genomic research and drug discovery.

The following new product shipments and strategic collaborations were significant in the second quarter:

-- Biomek(R)FX laboratory automation workstation began shipping

for use in nucleic acid preparation, microtiter plate

replication and high-throughput drug screening in genomic and

pharmaceutical research. This system is a quantum leap forward

in liquid handling instrumentation, performing the work of

three or more independent liquid handlers.

-- CEQ(TM) 2000XL DNA analysis system was introduced and shipped

to individual researchers mapping and investigating specific

segments of the genetic code. This next-generation system

provides longer reads and faster run times for DNA sequencing.

-- A distribution and collaboration agreement was signed with

Cellomics, Inc. to offer customers high-content cell screening

technologies paired with Beckman Coulter's automated drug

discovery systems. This alliance positions the two companies

at the forefront of cell-based drug discovery applications.

-- A development agreement with Micronics, Inc. was signed to

collaborate on a CLIA-waived, "lab-on-a-chip" based hematology

system for the point-of-care market.

John P. Wareham, chairman, president and chief executive officer, said, "Our second quarter results are evidence of our successful strategies in both the clinical diagnostics and life science research markets. In the exploding genetic analysis and drug discovery areas, our Biomek workstation, Sagian core system and CEQ DNA sequencer sales have grown faster than any of our other product areas -- 26% over the last twelve months. In the clinical diagnostics market, our progressive automation solutions for chemistry and cellular analysis are driving sales growth by delivering significant productivity enhancements for hospital laboratories. In fact, placements of the Power Processor sample preparation workstation quadrupled in the quarter."

Wareham added, "On the financial front, we continue to improve operating margins and we are on track this year to reduce debt by at least $100 million. For the year, we should deliver net earnings growth in the 13-15% range."

This press release contains forward-looking statements regarding earnings growth and debt reduction during 2000. Actual results could differ from those anticipated by these forward-looking statements as a result of a number of factors. Among other things, these factors include the impact of economic conditions in Europe and Asia, government cost containment initiatives, reduction in potential markets as a result of consolidation among customers, delays in introducing new products, introduction of competitive systems or products, and potential cost and interest rate increases.

Beckman Coulter, Inc. is a leading provider of instrument systems and complementary products that simplify and automate processes in life science and clinical laboratories. The company's products are used throughout the world in all phases of the battle against disease, from pioneering medical research and drug discovery to diagnostic testing that aids in patient treatment. Annual sales for the company totaled $1.8 billion in 1999, with approximately half of this amount generated outside the United States. For more information visit www.beckmancoulter.com.

                         BECKMAN COULTER, INC.
                         SECOND QUARTER REPORT
            CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
            (Amounts in Millions, Except Amounts Per Share)
                               Unaudited

                           Three Months Ended       Six Months Ended
                                June 30,                June 30,
                           2000          1999        2000       1999
                           ----          ----        ----       ----

Sales                    $469.4        $446.2      $903.8     $851.3

Cost of sales             245.8         234.1       477.3      445.4

Gross profit              223.6         212.1       426.5      405.9

Operating costs and
expenses:
 Selling, general and
  administrative          117.4         115.5       232.6      227.3
 Research and
  development              45.8          42.5        86.7       81.2
    Total operating
    cost and expenses     163.2         158.0       319.3      308.5

Operating income           60.4          54.1       107.2       97.4

Nonoperating (income)
 and expense:
 Interest income           (2.1)         (1.8)       (3.5)      (3.8)
 Interest expense          17.9          18.9        36.5       37.1
 Other, net                (2.4)         (1.1)       (3.2)       1.0
 Total nonoperating
  expense                  13.4          16.0        29.8       34.3

Earnings before
 income taxes              47.0          38.1        77.4       63.1
Income taxes               14.6          12.2        24.0       20.2

Net earnings             $ 32.4        $ 25.9      $ 53.4     $ 42.9

Basic earnings
 per share               $ 1.10        $ 0.91      $ 1.83     $ 1.51

Weighted average
 number of shares
 outstanding
 (in thousands)          29,376        28,584      29,236     28,525

Diluted earnings
 per share               $ 1.05        $ 0.87      $ 1.75     $ 1.45

Weighted average
 number of shares and
 dilutive shares
 outstanding
(in thousands)           30,761        29,611      30,487     29,588

Dividends declared
 per share               $ 0.16        $ 0.16      $ 0.32     $ 0.32

                         BECKMAN COULTER, INC.
                 CONDENSED CONSOLIDATED BALANCE SHEETS
            (Amounts in Millions, Except Amounts per Share)

                                           June 30,       December 31,
                                              2000               1999
                                         Unaudited

Assets
Current assets:
 Cash and equivalents                    $    21.9        $      34.4
 Trade and other receivables                 499.8              566.4
 Inventories                                 349.4              313.1
 Other current assets                         53.2               52.5
   Total current assets                      924.3              966.4

Property, plant and equipment, net           282.9              305.9
Goodwill, less accumulated amortization
 of $31.8 and $26.3 at June 30, 2000
 and December 31, 1999, respectively         345.5              344.7
Other intangibles, less accumulated
 amortization of $56.5 and $46.8 at
 June 30, 2000 and December 31,
 1999, respectively                          390.2              399.9
Other assets                                  67.1               93.9
  Total assets                          $  2,010.0        $   2,110.8

Liabilities and Stockholders' Equity

Current liabilities:
 Notes payable and current
  maturities of long-term debt          $     28.6        $      50.0
 Accounts payable, accrued expenses
  and other liabilities                      379.0              474.1
 Income taxes                                 65.5               51.8
  Total current liabilities                  473.1              575.9

Long-term debt, less current maturities      935.4              980.7
Other liabilities                            336.6              326.3
  Total liabilities                        1,745.1            1,882.9

Stockholders' equity:
  Preferred stock, $0.10 par value;
   authorized 10.0 shares; none issued          --                 --
  Common stock, $0.10 par value;
   authorized 150.0 shares; shares
   issued 29.5 and 29.1 at June 30, 2000
   and December 31, 1999, respectively;
   shares outstanding 29.5 and 29.0 at
   June 30, 2000 and December 31, 1999,
   respectively                                3.0                2.9
  Additional paid-in capital                 145.3              134.5
  Retained earnings                          167.0              123.0
  Accumulated other comprehensive loss:
   Cumulative foreign currency
   translation adjustment                    (50.4)             (24.3)
  Treasury stock, at cost                       --               (8.2)
   Total stockholders' equity                264.9              227.9
   Total liabilities and stockholders'
    equity                              $  2,010.0        $   2,110.8