Beckman Coulter Signs $30 Million, Sole-Source Agreement with Quest Diagnostics to Provide Hematology Instruments and Supplies.

Business Editors/Health and Medical Writers

FULLERTON, Calif.--(BUSINESS WIRE)--Nov. 14, 2000

Beckman Coulter, Inc. (NYSE:BEC) announced on Tuesday it has signed an agreement valued at $30 million with Quest Diagnostics Incorporated (NYSE:DGX), the nation's leading provider of diagnostic testing, information and services.

Under the terms of the five-year agreement, Beckman Coulter is named the sole-source provider of hematology instrument systems and related reagents for Quest Diagnostics' U.S. laboratory network. In addition to the new agreement for hematology solutions, Beckman Coulter has separate agreements with Quest Diagnostics covering certain chemistry, hemostasis, flow cytometry and other biomedical instrument systems and supplies.

The contract covers instruments such as the high-volume COULTER(R) GenoS(TM) and STKS(TM) hematology flow cytometers as well as the mid-range HmX and MAXM(TM) hematology flow cytometry systems. These instruments perform routine tests such as a complete blood count (CBC), a common screening test ordered by physicians to diagnose or manage the treatment of many diseases.

"Quest Diagnostics is the largest commercial laboratory in the country, performing over 20 million CBC's per year," said Albert Ziegler, Senior Vice President of Diagnostics Commercial Operations for Beckman Coulter. "We're pleased that Quest Diagnostics recognizes the value that our laboratory solutions offer, including improved laboratory processes for lower overall testing costs."

According to Raymond Clarke, Vice President, Materials and Services Management for Quest Diagnostics, Beckman Coulter hematology systems will contribute to the laboratory network's integration efforts. These efforts involve implementing consistent standards in Quest Diagnostics core laboratories and patient service centers, including the former SmithKline Beecham Clinical Laboratories Inc. (SBCL) facilities. SBCL was acquired by Quest Diagnostics in August 1999.

"This new contract with Beckman Coulter supports Quest Diagnostics' standardization and integration initiatives," said Clarke. "The company's hematology solutions meet our requirements for overall quality, technical performance, reliability and cost."

Beckman Coulter, headquartered in Fullerton, Calif., 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. More information on the company is available at www.beckmancoulter.com.

Quest Diagnostics, based in Teterboro, N.J., is the nation's leading provider of diagnostic testing, information and services with annualized revenues of more than $3 billion. The testing performed on human specimens helps doctors diagnose, treat and monitor disease; enables employers to detect workplace drug abuse; and supports pharmaceutical and biotechnology companies in clinical trials of new therapeutics worldwide. Quest Informatics analyzes laboratory and other medical data to help healthcare providers improve the care of patients. Additional company information can be found on the Internet at www.questdiagnostics.com.