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QUIDEL AND JOHN HANCOCK CONVERT QUIDEL DEBT TO EQUITY

 SAN DIEGO, July 2 /PRNewswire/ -- QUIDEL Corp. (NASDAQ: QDEL), a leading developer and marketer of rapid diagnostic tests, today announced the conversion of long-term debt into common stock in a transaction that will save the company $480,000 per year in interest expense.
 The company issued 975,609 shares of common stock to retire its $4,000,000, 12 percent unsecured debt. The company incurred this debt in January 1991 in connection with the merger between QUIDEL and Monoclonal Antibodies Inc. The exchange price was calculated to approximate the current market price of the company's common stock as of June 29, 1993 ($4.50) less a discount of 8.9 percent equal to the estimated transaction costs which would otherwise have been incurred if QUIDEL had sought outside equity financing. This conversion increases stockholders equity by approximately 40 percent over the March 31, 1993, level. The new shares were issued to the John Hancock Capital Growth Funds who now hold an aggregate total of 1,642,274 shares, and who represent the largest shareholder of the company's common stock.
 "The elimination of this debt and particularly the 12 percent annual rate of interest it carries will have a favorable impact on our earnings and cash flow going forward," said Scott L. Glenn, chairman and chief executive officer at QUIDEL. "Several years ago, at the time we signed this agreement, a 12 percent note on unsecured debt was attractive for the company, but now it is very expensive compared to current interest rates. We are very pleased that John Hancock has agreed to this transaction and we appreciate their continued confidence in the company represented by this stock for debt exchange."
 QUIDEL Corp. develops, manufactures and markets rapid immunodiagnostic products for family planning and family care. These products, which provide simple, accurate and cost-effective diagnoses in the areas of human fertility, infectious diseases, allergy and autoimmune disorders, are designed for use in the physician's office, clinical laboratory and home testing markets.
 -0- 7/2/93
 /CONTACT: Scott L. Glenn, chairman and CEO, 619-552-7900, or Mark Francois, manager of investor relations, 619-552-7931, both of QUIDEL/
 (QDEL)


CO: QUIDEL Corp.; John Hancock ST: California IN: MTC SU:

MF-JL -- SD002 -- 8044 07/02/93 08:00 EDT
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Publication:PR Newswire
Date:Jul 2, 1993
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