Innovation Goes 'Beyond the Box,' Varian, Inc. CEO Says; Users of Scientific Instruments Demanding Total Solutions.

Business Editors/Health & Medical Writers

2000 Pittsurgh Conference on Analytical Chemistry and

Applied Spectroscopy 

NEW ORLEANS--(BW HealthWire)--March 13, 2000

"Innovation in scientific instruments goes well beyond providing customers with a new box, with one size fitting all analytical challenges," said Allen J. Lauer, president and CEO of Varian, Inc. (Nasdaq:VARI).

"Chemists are under tremendous pressure to provide increasingly precise answers to complex analytical puzzles and to do it at lightning speed. Whether they are striving for breakthroughs in drug discovery, environmental monitoring, or genomics research, they need integrated equipment solutions that plug in and give them answers.

"Instrument innovations are still key, but the companies that will grow and prosper in this environment are looking beyond the box," noted Lauer. They are providing innovative breakthroughs in sample preparation, in columns and other consumable laboratory supplies, in software, improved methodologies, and customized worldwide support and service.

"Our strategy is to grow through innovation that impacts the entire analysis process. This is fueling our performance as an independent company, and unlocking considerable productivity for our customers and value for our shareholders," continued Lauer.

Lauer was speaking before journalists and security analysts at the 2000 Pittsburgh Conference on Analytical Chemistry and Applied Spectroscopy, here, March 13-16. This year represents Varian, Inc.'s first at Pittcon as an independent, publicly traded firm, having spun off from Varian Associates, Inc., in April 1999.

"As an independent company, we have a much tighter focus on the scientific instruments business. Earnings are invested directly into developing enhanced instrumentation and consumable laboratory supplies," said Lauer.

"Independence is also enabling us to aggressively evaluate acquisitions that will expand our existing product base and that can be integrated easily into our worldwide distribution infrastructure," said Lauer.

"For our customers worldwide this means that we will be bringing them more product and service innovations more quickly than ever before whether we invent it ourselves or acquire a technology."

According to Lauer, the company's growth through innovation strategy is unlocking shareholder value as well. In its first fiscal quarter of 2000 (December 31, 1999), Varian, Inc. reported substantial growth in orders, sales, and earnings per share as compared to the same period last year.

Sales for the first quarter of 2000 rose 20% to $160 million from fiscal 1999's first-quarter sales of $133 million. Operating profits increased 96% to $14.7 million compared to $7.5 million during the same quarter in 1999.

Bio-Pharmaceuticals and Humane Genome Research

Lauer noted that increased demand from the life sciences segment is a key factor driving Varian, Inc. growth. Such systems are used in areas such as: drug discovery, genetic engineering, and human genome research. The Varian, Inc. executive noted these important new solutions for the life sciences:

-- NMR Spectroscopy -- At Pittcon, Varian, Inc. will debut recent developments in "flow NMR" and will unveil its Infinityplus solid-state NMR spectrometer. NMR gives researchers the ability to determine the structure of many bio-molecules including proteins, nucleic acids (DNA and RNA), and carbohydrates. The technology is used in a variety of laboratories, including those investigating new pharmaceuticals and those engaged in basic research. Flow NMR allows liquid samples to be introduced automatically into the magnet, which makes possible direct injection NMR and liquid chromatography (LC)-NMR, both critical applications for drug discovery. Solid-state NMR spectrometers, usually incorporating wide-bore magnets, are used to characterize solid-state chemical compounds ranging from crystal and polymer materials to membrane protein samples.

-- High-Field NMR Imaging -- Lauer also noted that Varian, Inc. has received record orders for its high-field NMR imaging systems, many of which are used in advanced life science research. These multi-million dollar systems are used for functional MR imaging and in vivo MR spectroscopy. With functional MRI, scientists study the basic function of the brain and other organs. MR spectroscopy is used for determining the structure and functional relationships of chemical compounds in the brain. In addition to fundamental research, functional MRI and MR spectroscopy are being applied to study mental disorders, chemical dependency, and other developing areas of neuroscience.

-- Spectroscopy and Chromatography -- Pittcon, Varian, Inc. is showing for the fist time its recently introduced Cary fluorescence spectrophotometer, the company's first fluorescence molecular spectroscopy instrument. The Cary is the first truly new mid-range fluorescence spectrophotometer to be introduced by any manufacturer in more than 10 years, not simply an upgrade of older technology. Varian will also be showing its ProStar high-performance liquid chromatography series, including the ProStar Helix model for DNA and life science analysis.

Industrial Applications Still Critical

"Varian, Inc. continues to innovate for the industrial laboratory," noted Lauer.

"An excellent example being introduced at Pittcon is our Rapid-MS(TM) technology. Made possible by combining breakthrough capillary column technology, with the rugged and stable high-vacuum systems on the Saturn 2000 Ion trap GC/MS, Rapid-MS provides up to 10 times faster analysis with no compromise in data quality. Rapid-MS carries forth Varian, Inc.'s 10-year record of ion trap GC/MS innovation."

Varian, Inc. is a world leader in scientific instruments and vacuum technologies, serving life science, health care, chemical, environmental, and industrial customers. It is a major supplier of NMR systems, analytical instrument solutions, vacuum products and services, and specialized contract electronics manufacturing.

The company manufactures in 11 locations in North America, Europe, and the Pacific Rim and employs some 3,600 people. Varian, Inc. had 1999 sales of $599 million. Additional information about Varian, Inc. is available at www.varianinc.com.