Celera Genomics Group Reports Third Quarter Operating Results.

Health/Medical Writers

ROCKVILLE, Md.--(BW HealthWire)--April 26, 2000

Celera Genomics Group (NYSE: CRA), a PE Corporation business, today reported results for its third fiscal quarter ended March 31, 2000. The Group reported revenues of $11.1 million for the third quarter, compared with $1.8 million in the same period last year. The net loss after benefit for taxes was $24.1 million, or $.45 per share, compared with a net loss of $12.8 million, or $.25 per share in last year's third quarter. The increase in revenues resulted principally from recent subscription and related service agreements. Celera significantly increased its investment in research and development activities, as the Group continued to expand its medical and annotation research teams and its bioinformatics staff. R&D expenditures increased to $43.5 million, up from $13.3 million in last year's third quarter.

"Celera has recently demonstrated important achievements," said Tony L. White, PE Corporation's chairman, president and chief executive officer. "Our research investments are beginning to drive growth in our information base. Our integrated research and discovery platform continues to expand. In addition, we have now extended our systems to provide web-based access to academic and biotech customers. We continue to work hard to assemble the competitive capabilities necessary to lead this market."

"Our business continues to focus on building the world's first comprehensive biological reference library, software tools to understand the logic of biology, and a research team to commercialize that knowledge as quickly as possible," noted J. Craig Venter, Ph.D., Celera's president and chief scientific officer. "Celera is committed to developing integrated systems that allow our customers to understand the fundamental causes of disease, the biological and environmental factors that affect the formation and development of disease; and, ultimately, enable patients to receive personalized diagnosis and therapy."

Celera has recently achieved several milestones in the development of its business. These achievements include:

-- New partner relationships

-- Celera entered into an agreement with Takeda Chemical

Industries, Ltd., the largest pharmaceutical company in Japan,

which provides for a five-year comprehensive subscription to

five of Celera's current databases. The agreement also

includes access to Celera's advanced bioinformatics tools and

browsers.

-- Celera entered into a collaboration with the City of Hope, a

premier medical research institution, to investigate

associations of genetic polymorphisms with breast cancer. The

collaboration combines City of Hope's pioneering clinical

genetics approach with Celera's genomic and polymorphism

information databases. Together, the organizations intend to

accelerate the discovery of disease-associated polymorphisms.

-- This week Celera signed a research services agreement that

allows ViaLactia Biosciences New Zealand Ltd. to search for

genetic traits that could improve the quality of dairy

products.

-- Expanded business opportunities

-- In January, Celera acquired a 47.5 percent equity interest in

Shanghai GeneCore BioTechnologies Co., Ltd. This company has

several research collaborations with Chinese government

agencies and research institutes. This acquisition expands the

Group's business globally and provides Celera with access to

new sources of genetic information.

-- In March, the Group signed a definitive agreement to acquire

Paracel, Inc., a leading producer of advanced genomic and text

analysis technologies, subject to customary closing conditions

and regulatory approvals. Celera intends to use this expertise

to provide value-added analytical and data mining tools needed

by its customers, as well as for its internal gene discovery

and annotation work.

-- In late March, the Group introduced web-based access to its

genomic databases and discovery systems. This unique system is

expected to provide Celera with the capability to transition

to phase two of its business development strategy: expansion

of the customer base to small biotechnology companies and

non-profit academic research institutions.

-- Genomic information achievements

-- The Group announced that its scientists, in collaboration with

researchers at the Berkeley Drosophila Genome Project, had

published the assembled and annotated genome of the fruit fly,

Drosophila melanogaster. This genome is considered a model

organism in biological research, because it shares similar DNA

sequences and other characteristics with humans. This is the

most complex genome ever sequenced and assembled. The

successful completion of this project provided an important

test of the Group's shotgun sequencing strategy. Despite the

fact that the fruit fly is one of the most studied organisms

in biology, Celera and a team of scientists were able to

identify thousands of new genes that may be useful in

unlocking secrets of many human diseases.

-- Celera announced that it had completed the sequencing phase of

one human's genome and had begun assembling the sequenced

fragments. The Group believes that, with its new computational

tools, it will be able to assemble the fragments efficiently.

Celera will continue to sequence DNA from other humans in

order to build its polymorphism database.

-- In early April, Celera began the next phase of its information

business, sequencing the mouse genome. The mouse is considered

to be important to biomedical research as a model for studies

of human biology and medicines.

-- Financing and related activities

-- Celera completed a follow-on offering of its common stock. The

registration statement filed in connection with the offering

detailed the Group's business initiatives in functional

genomics. In implementing this strategy, Celera seeks to make

its discovery and information system the fundamental resource

in molecular medicine for acceleration of the development of

new pharmaceuticals and targeted diagnostics. To support these

initiatives, Celera intends to work closely with the PE

Biosystems Group to design proteomics systems with

substantially higher throughput and automation in order to

build a unique production-scale protein research center that

will complement its genomic research capabilities. The

offering raised more than $900 million during the quarter

which will be used primarily to fund this strategic expansion.

At the end of March, the Group had cash and equivalents worth

approximately $1 billion.

-- Also this quarter, the Board of Directors of PE Corporation

announced a two-for-one split of Celera Genomics Group common

stock, which was effective in February 2000. Per share results

in this press release reflect the split, which was effective

in February 2000.

For the nine months ended March 31, 2000, Celera reported revenues of $27.7 million and a net loss after benefit for taxes of $67.8 million, or $1.29 per share. For the comparable period in fiscal 1999, Celera's revenues were $7.4 million with a net loss after benefit for taxes of $25.0 million, or $.50 per share.

PE Corporation currently comprises two operating groups. The Celera Genomics Group, headquartered in Rockville, MD, intends to become the definitive source of genomic and related medical information. The PE Biosystems Group (NYSE: PEB), with sales of $1.2 billion during fiscal 1999, develops and markets instrument-based systems, reagents, software and contract services to the life science industry and research community. PE Biosystems is headquartered in Foster City, CA. Information about the Company, including reports and other information filed by the Company with the Securities and Exchange Commission, is available on the worldwide web at www.pecorporation.com or by phoning 800.762.6923.

Certain statements in this press release are forward-looking. These may be identified by the use of forward-looking words or phrases such as "believe," "expect," "anticipate," "should," "planned," "estimated," and "potential," among others. These forward-looking statements are based on PE Corporation's current expectations. The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for such forward-looking statements. In order to comply with the terms of the safe harbor, PE Corporation notes that a variety of factors could cause actual results and experience to differ materially from the anticipated results or other expectations expressed in such forward-looking statements. The risks and uncertainties that may affect the operations, performance, development, and results of Celera Genomics' businesses include but are not limited to (1) operating losses to date; (2) a unique and developing business plan; (3) dependence on the timely completion of the sequencing and assembly of the human genome; (4) uncertainty of revenue growth; (5) unproven use of genomics information to develop products; (6) intense competition in the evolving genomics industry; (7) dependence on customers in and subject to the risks of the pharmaceutical and biotechnology industries; (8) heavy reliance on strategic relationship with the PE Biosystems group; (9) potential product liability claims; (10) liabilities related to use of hazardous materials; (11) lengthy sales cycle; (12) dependence on the unique expertise of its scientific and management staff; (13) uncertainty of patent, copyright and intellectual property protection; (14) dependence on computer hardware, software, and internet applications; (15) access to biological materials; (16) legal, ethical and social issues affecting demand for products; (17) disruptions caused by rapid growth of the business; (18) government regulation of its products and services; (19) risks of future acquisitions; and (20) other factors that might be described from time to time in PE Corporation's filings with the Securities and Exchange Commission.

Copyright (c) 2000. PE Corporation. All Rights Reserved. Celera, Celera Genomics, and PE Biosystems are trademarks of PE Corporation.

PE CORPORATION
CELERA GENOMICS GROUP
COMBINED STATEMENTS OF OPERATIONS
(Dollar amounts in millions except per share amounts)
(Unaudited)
                      Three months ended      Nine months ended
                           March 31,               March 31,
                      2000        1999        2000            1999
                   --------     -------      ------         ------

Net revenues         $ 11.1       $ 1.8      $ 27.7          $ 7.4

Costs and expenses

Research
 and development       43.5        13.3       113.8           26.2

Selling, general and
 administrative        10.5         7.0        28.4           17.6

Special charges           -         0.8           -            1.4
                   --------     -------      ------         ------
Operating loss        (42.9)      (19.3)     (114.5)         (37.8)

Interest
 income, net            5.8         0.1        10.2            0.1
                   --------     -------      ------         ------
Loss before income
  taxes               (37.1)      (19.2)     (104.3)         (37.7)

Benefit for
 income taxes          13.0         6.4        36.5           12.7
                   --------     -------     -------        -------
Net loss             $(24.1)     $(12.8)    $ (67.8)       $ (25.0)
                   ========     =======     =======        =======

Net loss per share
 Basic and diluted  $ (0.45)     $(0.25)     $(1.29)       $ (0.50)

Average common
 shares
 outstanding
Basic and
 diluted         53,884,000  50,508,000  52,430,000     49,928,000

The recapitalization of the company on May 6, 1999, resulted in the issuance of two new classes of common stock called PE Corporation-Celera Genomics Group Common Stock and PE Corporation- PE Biosystems Group Common Stock. Therefore, earnings per share and shares outstanding for the three and nine months ended March 31, 1999 are presented on a pro forma basis.