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October ends on a high note for three IBO stock indices.

During October, the three major US stock indices all rallied nicely, climbing around 10% each. The Dow Jones Industrial Average (DJIA) regained 10.6% from its September close to reach 8,397.03. For the year, the DJIA has lost the least of the three major indices, down 16.2% from its December 2001 value. The S&P 500 index increased 8.6% to 885.76 in October. For the year, the S&P index has shed 22.8%. The NASDAQ gained 13.5% to 1,329.75 for the month, but has fallen 31.8% since its December 2001 close.

All of the major indices recovered nicely in the month of October, as they usually do throughout the fourth quarter. A major indicator of the status of the economy is the gross domestic product, which grew 4.2% in the third quarter of 2002 compared to only 1.8% in the second quarter. However, indications within the last month are that the economy has not improved, and consumer spending and retail sales remain sluggish. In fact, consumer confidence reports were so weak that the Federal Reserve is considering lowering interest rates yet again in the first week of November. Despite warnings by such market giants as Intel and General Electric, investors ignored weak economic forecasts and continued investing. But despite this recent turn-around, the market could come crashing back down as fast as it went up if third and fourth quarter earnings reports don't meet expectations.

After a fairly weak September performance by the four IBO indices, October proved to be a bit of a recovery period. The four indices produced a month return ranging from -3.6% to 7.3%. The Laboratory Instrumentation Index posted an impressive gain of 7.3% for the month closing at 272.76 to lead the group. It remains the biggest loser of the group for 2002, down 43.5% for the year to date. The Process/Metrology/ Motion Instrumentation Stock Index recovered in October, gaining 6.4% to close at 190.49. It remains well below its 2001 closing price, down 35.7% for the year. The Filtration Index made a late charge in the month, gaining a total of 7.0% for the month to close at 129.43, but remains down 32.9% for the year. The Laboratory Equipment Distributor Index was the only index to fall during the month, down 3.6% to 183.89. However, it still remains the best performer for the year to date having lost only 10.0% from its 2001 closing price.

Laboratory Instrumentation Stock Index

The Laboratory Instrumentation Stock Index gained 7.3% for the month to 272.76. The ratio of winners to losers was almost 3 to 1 for the month. Eleven of the index' companies enjoyed double-digit gains, with Biacore and Qiagen leading the way, up 55% and 46%, respectively. Only three of the 26 companies in the index suffered double-digit declines for the month, with Beckman Coulter, Invitrogen and Cell Robotics losing 28%, 18%, and 10%, respectively.

Thirteen companies in the Laboratory Instrumentation Stock Index have lost over 50% of their respective values since the end of 2001, while only three companies remain positive since 2001. Cell Robotics is still the leading gainer for the year, up 164%, while PerkinElmer and Argonaut Technologies have lost the most since 2001, down 80% and 79%, respectively.

During the month, Merrill Lynch downgraded Beckman Coulter from a "Buy" to a "Neutral" rating. SG Cowen also downgraded Beckman Coulter to an "Outperform" rating from "Strong Buy". USB Piper Jaffray downgraded Applied Biosystems to "Underperform" from "Market Perform". USB Poper Jaffray, RBC Capital Markets, and Deutsche Bank Securities downgraded Invitrogen to "Outperform", "Sector Perform", and "Hold", respectively. RBC Capital Markets downgraded shares of Luminex to "Underperform" from "Sector Perform". Salomon Smith Barney initiated coverage on shares of Affymetrix, Applied Biosystems, Invitrogen, PerkinElmer and Waters at "In-line", "Underperform", "Outperform", "Underperform" and "Outperform", respectively. Robert Baird also initiated coverage on shares of Bio-Rad Laboratories at "Outperform".

Waters' CEO filed to sell up to 800,000 shares on October 8th. Bayer Diagnostics finalized its acquisition of Visible Genetics this month for $1.50 per common share and preferred shares at par plus accrued dividends. This event causes the removal of Visible Genetics from the Laboratory Instrumentation Index effective this month.

Process/Metrology/Motion Instrumentation Stock Index

The Process/Metrology/Motion Instrumentation Stock Index gained 6.4% in October to 190.49, up from its September close of 179.04. October proved to be a good month for the index as seven of eight companies reported positive gains in stock price, with Nanometrics leading the way, rising 46%. Newport was the only company to lose ground during the month, dropping 3%. InVision Technologies remains the only real positive gainer for the year, having gained 11% in October and 19% since the end of 2001. MTS Systems stock price rose 7% in October and joins InVision in the positive for the year, having gained 1% since December. Nanometrics, Zygo and Veeco Instruments remain the biggest losers for the year dropping 80%, 72% and 67%, respectively.

During the month, CSFB upgraded shares of Newport back to "Neutral" from "Underperform" after two consecutive months of downgrading the firm. Salomon Smith Barney, Roth Capital, and RBC Capital Markets downgraded Newport to the same relative rating of "In-line", "Neutral", and "Sector Perform", respectively. Thomas Weisel downgraded shares of Veeco to "Market Perform" from "Attractive".

Regarding MTS Systems' delisting by the Nasdaq (see IBO 9/30/02), a hearing was held on October 17 with the results expected soon. MTS says it has complied with Nasdaq's requests and expects to be re-listed by early January 2003 when its financial restatements are filed with the SEC.

Filtration Stock Index

The IBO Filtration Stock Index also recovered in October, closing at 129.43, up 7.0% from September. Osmonics, Pall, Millipore and CUNO reported gains during the month of 14%, 10%, 7% and 1%, respectively. Ionics was the only decliner for the month, dropping 5%. CUNO remains the only positive gainer over the year, up 2%, while the other four companies in the index have declined between 3% and 44% since 2001, with Millipore suffering the most significant loss in market value.

During the month, Salomon Smith Barney upgraded Millipore to "In-line" from "Underperform". A week later, Goldman Sachs and Banc of America downgraded Millipore to "Market Performer" after Millipore announced third quarter earnings were in line with estimates. Later, Goldman Sachs lowered 2003 earnings estimates for Millipore to $1.91 from $2.04. An analyst from Robert W. Baird & Co. told the Wall Street Transcript that filtration/separation companies have been fairly successful lately thanks to managing costs under tight control. He also mentioned that his firm is planning on upgrading Osmonics and Ionics fairly soon and spoke very highly of CUNO as well.

Laboratory Equipment/Distributor Stock Index

The Laboratory Equipment/Distributor Stock Index was the only IBO index to decline in value in October, losing 3.6% to close at 183.89, down from 190.84 in September. New Brunswick was the only winner for the month with a 32% gain and remains the best performer in 2002, with a year-to-date gain of 33%. The other four companies in the index declined by 0% to 11% in October, with SciQuest taking the hardest fall. For the year so far, Kewaunee Scientific is the only other winner, having gained 11% thus far. With two months left in the year, the Laboratory Equipment/Distributor Stock Index has declined 10.0% but continues to remain the best performer of the four IBO stock indices.

During the month, AG Edwards upgraded Apogent Technologies to a "Buy" from a "Hold". SciQuest announced that the Nasdaq agreed to allow it to transfer its common stock over to the Nasdaq SmallCap Market effective October 11. It did this in order to receive an extended grace period to meet the Nasdaq's minimum $1.00 per share closing bid price requirement.

International Companies

October brought about a nice recovery for most European shares. This month, IBO incorporates eight new companies into the international listings, which now includes 16 European and three Pacific Rim companies. For the Pacific Rim companies, shares of Horiba and JEOL declined 10% and 3%, respectively, for the month, while Shimadzu gained 26%.

October witnessed 10 winners and 9 losers among European shares, with Gretag Imaging gaining 167% as the top winner, and Oxford Instruments losing 19% for thelargest loss among the international companies covered. Overall, for the year, every international company listed is in the negatives except for Shimadzu, which is currently holding a 22% return for the year to date. The listed European companies have fallen between 12% and 80% for the year, with an average loss around 50% of last year's prices.

[GRAPHIC OMITTED]
 Mkt. Value 52 week Price Chg.
Company: Exchange (000s) high/low 10/31/02 1 mo.

Laboratory Instrumentation

Affymetrix: o $1,505,526 13.80-41.95 $26.10 25%
Applied Biosystems: n $4,374,070 13.00-40.42 $20.23 11%
Argonaut Tech: o $17,140 0.51-4.49 $0.89 22%
Beckman Coulter:n $1,698,906 25.20-53.00 $27.85 -28%
Biacore: o $184,205 11.95-32.75 $18.50 55%
Bioanlytical Systems: o $15,026 2.62-9.52 $3.25 5%
Bio-Rad Laboratories: a $1,261,256 27.45-51.00 $42.61 13%
Bruker Daltonics: o $303,952 2.95-24.60 $5.50 8%
Bruker AXS: o $113,420 1.02-7.24 $2.12 1%
Cell Robotics:o $5,619 0.19-1.44 $0.66 -10%
Ciphergen: o $78,231 2.35-8.25 $2.93 -2%
Dionex: o $690,668 21.25-31.80 $30.81 21%
Genomic Solutions: o $13,984 0.37-2.80 $0.55 2%
Harvard Bioscience: o $80,739 2.11-11.20 $3.00 -1%
Illumina: o $123,122 2.87-12.65 $4.08 19%
Invitrogen: o $1,475,911 25.23-69.50 $27.88 -18%
Isco: o $47,992 7.05-10.95 $8.57 1%
Luminex: o $186,765 4.26-18.45 $6.51 -8%
Molecular Devices: o $210,097 9.95-23.65 $13.46 8%
O.I. Analytical: o $9,341 2.91-9.50 $3.35 -5%
PerkinElmer: n $810,694 4.28-36.30 $6.96 28%
Qiagen: o 972,076 4.19-21.36 $6.70 46%
Rheometric Scientific: o $11,841 0.45-3.03 $0.84 11%
Thermo Electron: n $3,714,982 14.33-24.60 $18.39 14%
Varian Inc.: o $1,016,704 22.98-39.60 $29.41 7%
Waters Corporation: o $3,457,189 17.89-40.95 $25.18 4%

Process/Metrology/Motion Instrumentation

InVision Technologies: o $580,724 11.69-49.76 $35.41 11%
MTS Systems: o $217,658 8.30-13.20 $10.17 7%
Nanometrics: o $45,836 1.82-27.65 $3.89 46%
Newport: o $414,600 8.96-27.47 $10.96 -3%
Strategic Diagnostics: o $68,386 2.46-10.00 $3.91 7%
Veeco Instruments: o $350,679 9.14-40.12 $11.98 11%
X-Rite: o $168,981 5.01-10.00 $7.92 2%
Zygo: o $65,992 3.55-19.85 $4.43 4%

Filtration

CUNO: o $522,011 25.85-38.35 $31.08 1%
Ionics: n $370,499 18.90-33.90 $22.73 -5%
Millipore: n $1,649,043 27.25-63.36 $34.01 7%
Osmonics: n $201,838 10.00-17.50 $13.60 14%
Pall: n $2,143,597 14.68-25.00 $17.37 10%

Laboratory Equipment/Distributors

Apogent Technologies: n $1,980,693 16.70-26.52 $18.18 -3%
Fisher Scientific: n $1,641,640 22.85-33.43 $28.60 -6%
Kewaunee Scientific: o $23,206 7.81-11.05 $9.38 0%
New Brunswick: o $49,489 4.25-10.62 $7.25 32%
SciQuest.com: o $18,068 0.37-2.20 $0.55 -11%

Laboratory Instrumentation 272.76 7.3%
 Stock Index
Process/Metrology/Motion 190.49 6.4%
 Instrumentation
Filtration Stock Index 129.43 7.0%
Laboratory Equipment
 Distributor Stock Index 183.89 -3.6%
Dow Jones Industrial 8397.03 10.6%
 Average
S&P 500 885.76 8.6%
NASDAQ Composite 1329.75 13.5%

 Chg. EPS EPS LTD/
Company: Exchange YTD P/E 12 mo. FY Equity

Laboratory Instrumentation

Affymetrix: o -31% N/A -0.32 -0.58 N/A
Applied Biosystems: n -48% 26 0.78 0.78 N/A
Argonaut Tech: o -79% N/A -0.72 -0.78 20%
Beckman Coulter:n -37% 13 2.12 2.03 98%
Biacore: o -42% 35 0.54 0.49 15%
Bioanlytical Systems: o -54% 10 0.32 0.38 18%
Bio-Rad Laboratories: a 35% 10 4.16 3.58 93%
Bruker Daltonics: o -66% N/A -0.03 0.07 10%
Bruker AXS: o -68% N/A -0.13 -0.19 10%
Cell Robotics:o 164% N/A -0.21 -0.27 N/A
Ciphergen: o -63% N/A -0.96 -0.97 2%
Dionex: o 21% 24 1.29 1.24 1%
Genomic Solutions: o -77% N/A -1.06 -1.17 0%
Harvard Bioscience: o -70% N/A -0.19 -0.20 4%
Illumina: o -65% N/A -1.33 -0.83 46%
Invitrogen: o -55% 65 0.43 -2.81 1%
Isco: o -15% 20 0.42 0.50 2%
Luminex: o -62% N/A -0.69 -0.55 0%
Molecular Devices: o -36% 34 0.40 -0.32 N/A
O.I. Analytical: o -48% 9 0.38 0.74 N/A
PerkinElmer: n -80% 30 0.23 1.09 59%
Qiagen: o -64% 74 0.09 0.08 40%
Rheometric Scientific: o -51% N/A -0.20 -0.21 138%
Thermo Electron: n -23% 25 0.75 0.58 60%
Varian Inc.: o -9% 20 1.48 1.48 10%
Waters Corporation: o -35% 21 1.21 1.23 4%

Process/Metrology/Motion Instrumentation

InVision Technologies: o 19% 15 2.33 0.52 0%
MTS Systems: o 1% 31 0.33 0.61 33%
Nanometrics: o -80% N/A -0.57 0.08 3%
Newport: o -43% N/A -0.93 -0.17 0%
Strategic Diagnostics: o -45% N/A -0.09 0.06 4%
Veeco Instruments: o -67% N/A -0.84 0.39 58%
X-Rite: o -7% N/A -0.39 0.09 N/A
Zygo: o -72% N/A -1.21 -0.67 10%

Filtration

CUNO: o -2% 23 1.34 1.20 1%
Ionics: n -24% 9 2.42 2.61 3%
Millipore: n -44% 20 1.70 0.65 133%
Osmonics: n -3% 24 0.57 0.42 13%
Pall: n -28% 29 0.59 0.59 76%

Laboratory Equipment/Distributors

Apogent Technologies: n -30% 17 1.06 1.02 70%
Fisher Scientific: n -2% 21 1.36 0.31 1446%
Kewaunee Scientific: o 11% 12 0.78 0.77 6%
New Brunswick: o 33% 15 0.48 0.33 22%
SciQuest.com: o -67% N/A -1.16 -2.50 2%

Laboratory Instrumentation -43.5% 73 40%
 Stock Index
Process/Metrology/Motion
 Instrumentation -35.7% 80 19%
Filtration Stock Index -32.9% 25 42%
Laboratory Equipment -10.0% 30 151%
 Distributor Stock Index
Dow Jones Industrial -16.2%
 Average
S&P 500 -22.8%
NASDAQ Composite -31.8%

 FY R&D/
Company: Exchange ROE Sales

Laboratory Instrumentation

Affymetrix: o N/A 30%
Applied Biosystems: n 8% 14%
Argonaut Tech: o N/A 42%
Beckman Coulter:n 27% 10%
Biacore: o 9% 19%
Bioanlytical Systems: o 10% 6%
Bio-Rad Laboratories: a 16% 9%
Bruker Daltonics: o 3% 20%
Bruker AXS: o N/A 14%
Cell Robotics:o N/A 42%
Ciphergen: o N/A 73%
Dionex: o 21% 8%
Genomic Solutions: o N/A 40%
Harvard Bioscience: o N/A 8%
Illumina: o N/A 834%
Invitrogen: o N/A 6%
Isco: o 6% 9%
Luminex: o N/A 40%
Molecular Devices: o N/A 16%
O.I. Analytical: o 13% 8%
PerkinElmer: n 111% 6%
Qiagen: o 16% 10%
Rheometric Scientific: o N/A 0%
Thermo Electron: n 5% 8%
Varian Inc.: o 14% 5%
Waters Corporation: o 26% 5%

Process/Metrology/Motion Instrumentation

InVision Technologies: o 12% 11%
MTS Systems: o 8% 6%
Nanometrics: o 1% 23%
Newport: o N/A 10%
Strategic Diagnostics: o 4% 10%
Veeco Instruments: o 2% 5%
X-Rite: o 2% 17%
Zygo: o N/A 25%

Filtration

CUNO: o 14% 6%
Ionics: n 11% 1%
Millipore: n 8% 7%
Osmonics: n 5% 4%
Pall: n 9% 4%

Laboratory Equipment/Distributors

Apogent Technologies: n 11% 2%
Fisher Scientific: n 70% 0%
Kewaunee Scientific: o 7% 0%
New Brunswick: o 8% 5%
SciQuest.com: o N/A 47%

Laboratory Instrumentation 6% 10%
 Stock Index
Process/Metrology/Motion
 Instrumentation 1% 9%
Filtration Stock Index 9% 4%
Laboratory Equipment 3% 1%
 Distributor Stock Index
Dow Jones Industrial -16.2%
 Average
S&P 500 -22.8%
NASDAQ Composite -31.8%

 Price
Region Mkt Value MktValue 10/31/02 Chg
Company (U.S. $000s) (Local, mil.) (Local) 1 mo.

Pacific Rim Shares

Horiba: t $222,740 [yen] 27,647 [yen] 800 -10%
JEOL: t $301,207 [yen] 37,386 [yen] 557 -3%
Shimadzu: t $602,526 [yen] 74,785 [yen] 353 26%

European Shares

Gentix: l $4,614,645 2,986 [pounds 39 [pounds -5%
 sterling] sterling]
Oxford $11,570,228 7,486 [pounds 156 [pounds -19%
 Instruments: l sterling] sterling]
Renishaw: l $41,738,934 27,005 [pounds 371 [pounds -1%
 sterling] sterling]
Robotic Technology $4,422,085 2,861 [pounds 50 [pounds 27%
 System: l sterling] sterling]
Spectris: l $44,797,759 28,984 [pounds 259 [pounds -9%
 sterling] sterling]
Whatman: $15,956,414 10,324 [pounds 82 [pounds -4%
 sterling] sterling]
Alpha M.O.S.: c $4,250 Euro 4 Euro 1.7 1%
Analytik Jena: g $21,389 Euro 22 Euro 6.4 57%
Chemunex: e $8,305 Euro 9 Euro 0.3 12%
Genescan Europe $6,080 Euro 6 Euro 0.9 74%
 AG: g
Lion bioscience $54,068 Euro 56 Euro 2.8 -3%
 AG: g
MWG Biotech AG: g $17,324 Euro 18 Euro 0.6 -14%
Sartorius: g $101,074 Euro 104 Euro 6.1 5%
Gretag Imaging: s $333 CHF 1 CHF 2 167%
Tecan: s $391,808 CHF 592 CHF 46 20%
Pyrosequencing $29,012 SEK 271 SEK 8 66%
 AB: st

Region Chg. EPS EPS LTD/
Company YTD P/E 12 mo. FY Equity

Pacific Rim Shares

Horiba: t -15% N/A ([yen] 34.5) ([yen] 34.5) 65%
JEOL: t -10% 35 [yen] 15.8 [yen] 15.8 27%
Shimadzu: t 22% N/A ([yen] 30.4) ([yen] 30.4) 92%

European Shares

Gentix: l -43% 51 0.8 [pounds 1.9 [pounds 1%
 sterling] sterling]
Oxford -23% 8 19.9 [pounds 19.9 [pounds 1%
 Instruments: l sterling] sterling]
Renishaw: l -12% 11 34.0 [pounds 34.0 [pounds 3%
 sterling] sterling]
Robotic Technology -42% N/A -15.1 [pounds 0.0 [pounds 8%
 System: l sterling] sterling]
Spectris: l -44% 8 31.7 [pounds 37.5 [pounds 25%
 sterling] sterling]
Whatman: -24% N/A -1.7 [pounds -0.9 [pounds 14%
 sterling] sterling]
Alpha M.O.S.: c -56% N/A -Euro 0.2 -Euro 0.4 N/A
Analytik Jena: g -50% 24 Euro 0.3 Euro 0.4 16%
Chemunex: e -51% N/A -Euro 0.2 -Euro 0.2 -30%
Genescan Europe -77% N/A -Euro 3.4 -Euro 2.6 9%
 AG: g
Lion bioscience -80% N/A -Euro 2.9 -Euro 2.9 1%
 AG: g
MWG Biotech AG: g -64% N/A -Euro 1.1 -Euro 1.0 14%
Sartorius: g -36% N/A -Euro 0.2 -Euro 0.2 N/A
Gretag Imaging: s -60% N/A -CHF 1.6 -CHF 1.5 4%
Tecan: s -59% 14 CHF 3.1 CHF 3.5 5%
Pyrosequencing -76% N/A -SEK 4.7 -SEK 4.0 1%
 AB: st

Region FY R&D/
Company ROE Sales

Pacific Rim Shares

Horiba: t N/A 7%
JEOL: t 6% 6%
Shimadzu: t N/A 4%

European Shares

Gentix: l 5% 9%

Oxford 10% 6%
 Instruments: l
Renishaw: l 14% 19%

Robotic Technology N/A N/A
 System: l
Spectris: l 28% 6%

Whatman: N/A 7%

Alpha M.O.S.: c N/A N/A
Analytik Jena: g 5% 3%
Chemunex: e N/A 59%
Genescan Europe N/A 67%
 AG: g
Lion bioscience N/A 0%
 AG: g
MWG Biotech AG: g N/A 14%
Sartorius: g 3% 5%
Gretag Imaging: s N/A 13%
Tecan: s 25% 12%
Pyrosequencing N/A 108%
 AB: st

The IBO composite stock indices are weighted by market capitalization.
Index averages for the various financial ratios presented are also
weighted statistically to reflect the relative sizes of the
constituent companies. Lab Instrumentation Index: 12/31/91=100;
Process/Metrology/Motion Instrumentation, Filtration and Lab Equipment/
Distributors Indices: 12/31/93=100. Nonrecuring charges excluded from
composite P/E ratios. Exchanges: n=NYSE; a=AMEX; o=NASDAQ; t=Tokyo;
l=London; s=Switzerland; g-NEUER; e=EASDAQ; c=Continuous Market
dd: Indicates loss in the most recent four quarters: cc: P/E ratio is
100 or more n/an: not applicable: n/a: data not available ar press time.
Return on equity calculated using most recent year-end data.
COPYRIGHT 2002 Strategic Directions International Inc. (SDI)
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2002 Gale, Cengage Learning. All rights reserved.

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Title Annotation:Dow Jones, Standard & Poor's, NASDAQ
Publication:Instrument Business Outlook
Date:Oct 31, 2002
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