Affymetrix Completes Acquisition of eBioscience Holding Company, Inc.

  Affymetrix Completes Acquisition of eBioscience Holding Company, Inc.

Business Wire

SANTA CLARA, Calif. -- June 25, 2012

Affymetrix Inc., (NASDAQ:AFFX) today announced that the Company has completed
its acquisition of eBioscience Holding Company, Inc., a privately-held company
with an industry-leading position in flow cytometry and immunoassay reagents
for immunology and oncology research and diagnostics. The acquisition enhances
Affymetrix’s product portfolio and expands its addressable markets by more
than $2.5 billion per year

“This transaction is an important strategic step for Affymetrix. Through the
acquisition of eBio we now have a blue-chip portfolio of cell-based assays
that diversify our business and open up important new avenues for growth,”
said Dr. Frank Witney, president and chief executive officer of Affymetrix.
“With eBio’s portfolio of profitable and growing flow cytometry and
immunoassay reagents, the combined Company intends to provide novel molecular
solutions that will allow us to penetrate sizable new markets. ”

“Together we expect to generate enhanced operating leverage and
profitability,” stated Tim Barabe, executive vice president and chief
financial officer. “The combination is expected to be accretive to gross
margins and operating income in fiscal 2012.”

eBioscience will operate as a separate business unit within Affymetrix under
its existing leadership team. “The combination of these two industry-leaders
will extend our global commercial reach and create important cross-selling
opportunities, as well as the opportunity to combine technologies to create
important new products,” said Don Tartre, general manager of eBio. “Together
we can enhance our value to customers while accelerating important scientific
discoveries.”

Under the terms of the agreement, Affymetrix paid approximately $315 million
in cash to acquire eBioscience, funded through a new senior secured credit
facility, an offering of convertible notes and other available cash resources.
As a result of the merger, eBioscience has become a wholly-owned subsidiary of
Affymetrix.

In connection with the acquisition of eBioscience, Affymetrix’s Compensation
Committee approved equity incentive awards to 278 eBioscience employees as
inducement to join Affymetrix. An aggregate 1.32 million shares of Affymetrix
common stock may be issued to these new non-executive employees under the
awards, which include an aggregate 942,000 restricted stock units that vest in
equal installments over two years, subject to performance based criteria,
296,650 restricted stock units that vest in equal installments over four years
and options to purchase up to 80,000 shares of common stock that vest in equal
installments over four years. The stock options have a maximum term of 7
years.

The equity incentive awards were granted as inducements material to the new
employees entering into employment with Affymetrix in accordance with NASDAQ
Listing Rule 5635(c)(4).

About Affymetrix

Affymetrix technology is used by the world's top pharmaceutical, diagnostic,
and biotechnology companies, as well as leading academic, government, and
nonprofit research institutes. More than 2,200 systems have been shipped
around the world and almost 25,000 peer-reviewed papers have been published
using the technology. Affymetrix is headquartered in Santa Clara, California,
and has manufacturing facilities in Cleveland, Ohio, and Singapore.

All statements in this press release that are not historical are
"forward-looking statements" within the meaning of Section 21E of the
Securities Exchange Act as amended, including statements regarding
Affymetrix’s "expectations," "beliefs," "hopes," "intentions," "strategies" or
the like. Such statements are subject to risks and uncertainties that could
cause actual results to differ materially for Affymetrix from those projected,
including, but not limited to: Affymetrix’s ability to timely and successfully
integrate and realize the anticipated strategic benefits and cost savings or
other synergies of the acquisition of eBioscience in a cost-effective manner
while minimizing the disruption to its business; risk that eBioscience’s
future performance may not be consistent with its historical performance;
risks relating to Affymetrix’s ability to make scheduled payments of the
principal of, to pay interest on or to refinance its indebtedness; risk
relating to Affymetrix’s ability to successfully commercialize new products;
risk relating to past and future acquisitions, including the ability of
Affymetrix to successfully integrate such acquisitions into its existing
business; risks of Affymetrix’s ability to achieve and sustain higher levels
of revenue, higher gross margins and reduced operating expenses; uncertainties
relating to technological approaches, risks associated with manufacturing and
product development; personnel retention; uncertainties relating to cost and
pricing of Affymetrix products; dependence on collaborative partners;
uncertainties relating to sole-source suppliers; uncertainties relating to FDA
and other regulatory approvals; competition; risks relating to intellectual
property of others and the uncertainties of patent protection and litigation.
For a detailed discussion of these and other cautionary statements and risk
factors, please refer to Affymetrix’s Form 10-K for the year ended December
31, 2011, Affymetrix’s Form 10-Q for the quarter ended March 31, 2012 and
other SEC reports. Affymetrix expressly disclaims any obligation or
undertaking to release publicly any updates or revisions to any
forward-looking statements contained herein to reflect any change in
Affymetrix’s expectations with regard thereto or any change in events,
conditions or circumstances on which any such statements are based.

PLEASE NOTE:

Affymetrix, the Affymetrix logo and all other trademarks are the property of
Affymetrix, Inc.

Contact:

Affymetrix Inc.
Doug Farrell, 408-731-5285
Vice President, Investor Relations
doug_farrell@affymetrix.com