Haemonetics Highlights Revenue Expansion Opportunities At Securities Analyst Meeting.

Business Editors

BRAINTREE, Mass.--(BUSINESS WIRE)--Dec. 13, 2001

At its annual meeting of securities analysts today, executives of Haemonetics Corporation (NYSE:HAE) will provide a review of the growth opportunities for the Company. Highlights will include a review of revenue expansion initiatives underway within each business unit that the Company believes will result in fiscal 2003 double digit revenue growth, including:

-Confirmation of Haemonetics' $30 million fiscal 2003 red blood cell revenue target;

-Opportunities afforded by the acquisition of Fifth Dimension Information Systems Inc., the leading provider of data management software used by plasma collectors; and

-Haemonetics' partnership with Baxter Healthcare Company to provide pathogen inactivation to platelet collection customers.

Concurrent with the analyst meeting, Haemonetics is sponsoring a blood drive at the Seaport Hotel that will feature its double red cell collection technology and provide the American Red Cross with up to 100 units of red cells to be on hand for the holiday season.

"We are enthusiastic about our growth opportunities," said James L. Peterson, President and CEO of Haemonetics. "We have reached an inflection point in our revenue growth and are aggressively pursuing opportunities to expand our market breadth and depth with strategic partnerships and acquisitions. We expect to continue to increase the number of blood donations utilizing Haemonetics technology and to add ever more value to each donation."

RED BLOOD CELL

Haemonetics believes its red blood cell technology is moving out of the "early adopter" phase and into a steady market ramp. Underscoring this belief is the American Red Cross' system-wide roll out of Haemonetics' technology scheduled to be complete by the end of calendar 2002. In addition, the signing of a contract with Blood Centers of America, a buying group that represents 31 independent blood banks in the U.S., will enable BCA members to purchase Haemonetics' technology under already-negotiated terms. The adoption of an in-line leukoreduction filtration system is also expected to contribute to revenue growth.

Haemonetics expects revenues in its red blood cell business unit in the range of $11 million to $12 million for fiscal 2002 and $30 million for fiscal 2003. The events of September 11 impacted red cell revenue by approximately $2 million as many customers delayed implementation or suspended double red cell collection, temporarily returning to manual collection. (However, the events of September 11 accelerated adoption of the Company's blood freezing technology, the ACP(TM) 215, offsetting the loss of red cell revenues.) Revenue growth in fiscal 2002 was also affected by the delay in implementation by the American Red Cross. Double red cell collections are now soundly back on track with pre-September 11 plans. Additionally, the American Red Cross is scheduled to begin a system-wide rollout over the next calendar year, a faster and broader rollout than Haemonetics previously planned. Further, following September 11 the American Red Cross dramatically sped up its strategic frozen blood program, purchasing 30 Haemonetics ACP 215 systems. Haemonetics' fiscal 2003 revenue estimate for its red blood cell division remains at $30 million, growth of 150%.

PLASMA

Haemonetics announced today plans to acquire Fifth Dimension Information Systems Inc., the leading provider of information management products and services for plasma collectors. (See press release dated 12/13/01: "Haemonetics to Acquire Plasma Information Technology Company; Expands Revenue Opportunity for Plasma Business") This acquisition will assist Haemonetics in its goal to provide "one-stop shopping" to its plasma collection customers. Haemonetics now offers a full range of products and services to its plasma collection customers, including collection equipment and disposables, plasma collection containers, additive solutions, and information management solutions. The Company anticipates upper single digit disposables revenue growth for its plasma division in fiscal 2003.

PLATELET

Haemonetics recently announced its partnership with Baxter Healthcare Corporation to facilitate the use and integration of pathogen inactivation by Haemonetics' platelet collection customers. Under the agreement, Haemonetics customers will be able to purchase a collection disposable into which the additive solution necessary for platelet pathogen inactivation is integrated. Haemonetics will earn revenue and margin with each sale of an integrated collection/solution set. This agreement applies to technology for the pathogen inactivation of platelets; Haemonetics' partnership with V.I. Technologies/Pall Corporation for red blood cell pathogen inactivation remains active with that technology expected to enter Phase III clinical trials shortly. While the number of automated platelet collections remains relatively stable, the Company's agreement with Baxter supports its strategy to address the largest number of collections possible and to add value at each step in the transfusion chain. Haemonetics expects lower single digit disposables growth in its platelet business for fiscal 2003.

SURGICAL

Haemonetics continues to expand the market for its surgical products by increasing adoption and utilization of the OrthoPAT(R) system by orthopedic surgeons. Haemonetics also plans to introduce new products to support its base surgical business, which targets emergency and operating rooms. The Company anticipates disposables revenue growth in the low teens for fiscal 2003.

CELL PROCESSING

There continues to be strong interest by the American Red Cross, the U.S. military, and other blood banks in expanding frozen blood reserves to be used in times of blood shortage or emergency and to better manage the blood supply inventory. As announced previously, the American Red Cross and the U.S. military have purchased ACP 215 automated cell processing systems from Haemonetics and are integrating and implementing the technology. The Company believes that the ACP 215 will be a $7 million business in fiscal 2003 that will grow at approximately 20%.

FISCAL 2003 FINANCIAL OUTLOOK

Haemonetics has targeted fiscal 2003 earnings per share in the range of $1.45 to $1.50. Fiscal 2003 operating income is anticipated to increase by 20% to 25% as a result of double digit revenue growth, operating leverage, and the Company's cost savings program. Excluding the effects of currency, operating income is expected to increase by approximately 40%.

Constant currency adjusted EPS growth of 20% to 25% over Haemonetics' fiscal 2002 projection of $1.36(1) is anticipated for fiscal 2003, despite a declining interest rate environment that negatively impacts the company's "other income" line. Foreign exchange is expected to affect EPS negatively by $0.20.

Haemonetics is a global company engaged in the design, manufacture and worldwide marketing of automated blood processing systems. These systems address important medical markets: surgical blood salvage, blood component collections and plasma collections. To learn more about Haemonetics' products and markets, visit the Company's Web site at http://www.haemonetics.com.

This release contains forward looking statements that involve risks and uncertainties, including technological advances in the medical field, product demand, market acceptance, regulatory uncertainties, the effect of economic conditions, the impact of competitive products and pricing, blood product reimbursement policies and practices, foreign currency exchange rates and other risks detailed in the Company's filings with the Securities and Exchange Commission. The forward looking statements are based on estimates and assumptions made by management of the Company and are believed to be reasonable, though are inherently uncertain and difficult to predict. Actual results and experience could differ materially from the forward looking statements.

(1) Excluding a $10 million pre-tax special charge associated with Haemonetics' agreement with Baxter Healthcare Company to integrate Haemonetics' platelet collection systems with Baxter's pathogen inactivation system.