Beckman to acquire immunochemistry product business for diagnostic testing.

FULLERTON, Calif.--(BW HealthWire)--March 25, 1997--Beckman Instruments, Inc. (NYSE:BEC) announced today that it will significantly expand its product portfolio in clinical laboratory testing with the purchase of the Access(r) immunochemistry product business from Sanofi Diagnostics Pasteur (SDP), the diagnostic division of the French health care company Sanofi. This acquisition, which is expected to close about April 30, 1997, is part of a new alliance in immunochemistry between Beckman and SDP.

Access(r) is an integrated diagnostic system consisting of an automated instrument and 32 high-sensitivity test kits. As part of the alliance SDP, which has a continuing collaboration with Institute Pasteur, and Beckman will develop more than 40 additional Access(r) kits for infectious disease, cancer, and protein testing. Additionally, SDP will distribute Access(r) in France and certain other markets.

Included in the acquisition will be Access(r) research, development and manufacturing operations located in Chaska, Minnesota, together with a protein diagnostic line also produced there. Total sales of the acquired products were about $80 million in 1996. -0-

    The following are important benefits flowing from this
acquisition:
  -- Beckman will now have one of the broadest test menus available
     from a single supplier for hospitals and commercial
     laboratories, leveraged by the company's worldwide sales and
     distribution infrastructure.

  -- Access(r) will complement the 1996 acquisition of Hybritech,
     Incorporated, by providing an automated platform for Hybritech
     developed assays.

  -- The Access(r) chemiluminescent technology has the sensitivity
     necessary for the next generation of low concentration
     analytes.

Louis T. Rosso, chairman and chief executive officer, said "We are strengthening the Company's strategic position with acquisitions that broaden our product portfolio while leveraging our worldwide infrastructure. The Access(r) product line, together with the earlier Hybritech acquisition and Beckman's own immunochemistry/protein products, creates a major presence in immunochemistry.

"Integration will begin immediately following closing and Beckman expects to realize significant synergies in both operations and administration. As a result, the acquisition will be moderately accretive in 1998 and strongly accretive thereafter. Start-up costs and interest on cash to fund integration programs, working capital requirements and payments to SDP will dilute Beckman's projected 1997 earnings per share by $.12 to $.15.

"Significant value is created in this transaction when combined with Beckman's leading position in clinical chemistry and the Company's AccelNet(tm) concept for diagnostic testing. Our Synchron(r) family of automated clinical chemistry analyzers has been number one in placements for six consecutive years. Now, with Access(r) and our SDP alliance, we are solidly positioned to become a leader in automating clinical laboratory processes."

This release contains forward-looking statements concerning the impact of this transaction on the Company's future performance, including statements regarding a negative effect on earnings per share in 1997 and a positive effect on earnings per share thereafter. These statements involve risks and uncertainties that could cause an impact on the Company's business that differs materially from that expressed in any of these forward-looking statements, including the following: difficulties, delays or failures to effectively integrate product lines, or to complete the development phase of certain products, or to transfer certain of the Company's diagnostics tests to automated platforms; delays in securing regulatory approval; and changes in government medical reimbursement policies or programs.

Beckman Instruments, Inc. is a registered ISO 9000 Quality Systems Company which develops, manufactures and markets automated systems and supplies used for biological analysis in laboratories for research, product development and clinical diagnostics. Beckman operates in more than 120 countries.

CONTACT: Beckman Instruments Inc.

Michael J. Whelan, 714/773-7620