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PerkinElmer Acquires China-based Infectious Disease Diagnostics Company



  PerkinElmer Acquires China-based Infectious Disease Diagnostics Company

 Addition of Shanghai Haoyuan Biotech to Complement Screening Capabilities &
Allow PerkinElmer to Enter Growing Chinese Nucleic Acid-based Blood Screening
                                    Market

Business Wire

WALTHAM, Mass. & SHANGHAI -- November 12, 2012

PerkinElmer, Inc. (NYSE: PKI), a global leader focused on the health and
safety of people and the environment, announced today that it has completed
the acquisition of Shanghai Haoyuan Biotech Co., Ltd., a China-based
infectious disease diagnostics company. The acquisition extends PerkinElmer’s
capabilities into nucleic acid blood screening and in the growing molecular
clinical diagnostics market in China, further strengthening the Company’s
position as a diagnostics leader in China as well as across the globe.

Haoyuan, a supplier of molecular infectious disease screening technologies for
blood bank and clinical laboratory settings throughout China, extends
PerkinElmer’s portfolio by adding four infectious disease assays that are
approved by China’s State Food and Drug Administration (SFDA). These
infectious disease diagnostics tools include a qualitative 3-in-1 assay for
the detection of hepatitis B (HBV), hepatitis C (HCV), and human
immunodeficiency virus (HIV), two clinical quantitative assays that screen for
HBV and HCV, and one qualitative assay screen for chlamydia trachomatis and
neisseria gonorrhoeae (CTNG).

“By combining PerkinElmer’s robust disease screening capabilities with
Haoyuan’s proprietary reagents and equipment, the Company will be able to
offer highly sensitive systems and assays for quality detection of blood-borne
infections for the Chinese market,” said Robert Friel, chairman and chief
executive officer of PerkinElmer. “Integrating Haoyuan’s screening products
with PerkinElmer’s diagnostics capabilities will help to further advance the
health of the Chinese people by offering leading technology that ensures
accurate diagnosis of infectious diseases at a low cost.”

Facing an annual 15% increase in the demand for blood, the Chinese government
is now mandating and funding infectious disease screening of donated blood.
The Chinese government’s latest 5-year plan mandates that all blood be tested
using nucleic acid technologies by the end of 2015. Compared to antibody
testing methods, nucleic acid testing reduces the potential for failed
detection of certain infection diseases that exhibit long incubation times
between infection and detection. There are approximately 780,000 people living
with HIV/AIDS in China. The World Health Organization also reports chronic
infection rates of 8% to 10% of the adult population with HBV and 3.2 % of
China’s 1.4 billion population living with HCV.

The Haoyuan acquisition enables PerkinElmer to supply advanced, highly
sensitive diagnostics screenings to these banks, ensuring that HBV, HCV and
HIV are accurately detected prior to transfusion. Simultaneously, this product
integration strengthens the safety of the blood banks in China while creating
an opportunity for future implementation in other countries. In a clinical
setting, the combined capabilities can also reduce time for identifying an
infectious disease, which enables quicker treatment and better outcomes for
patients. The purchase price for the transaction was $38 million in cash and
potential future additional consideration based on the achievement of
revenue-based targets. The acquisition is anticipated to be immaterial to
PerkinElmer’s adjusted earnings for the remainder of 2012 and 2013 and
accretive beginning in 2014.

About PerkinElmer

PerkinElmer, Inc. is a global leader focused on improving the health and
safety of people and the environment. The company reported revenue of
approximately $1.9 billion in 2011, has about 7,000 employees serving
customers in more than 150 countries, and is a component of the S&P 500 Index.
Additional information is available through 1-877-PKI-NYSE, or at
www.perkinelmer.com.

Use of Non-GAAP Financial Measures

In addition to financial measures prepared in accordance with generally
accepted accounting principles (GAAP), we use certain non-GAAP financial
measures including “adjusted earnings.” Adjusted earnings refers to GAAP
earnings, excluding amortization of intangible assets, inventory fair value
adjustments related to business acquisitions, and other costs related to
business acquisitions. We believe that this non-GAAP measure, when taken
together with our GAAP financial measure, allow us and our investors to better
measure the performance of our investments and to evaluate the long-term
profitability trends of our core operations. We exclude amortization of
intangible assets, inventory fair value adjustments related to business
acquisitions, and other costs related to business acquisitions from these
measures because intangibles amortization charges do not represent what we
believe our investors consider to be costs that support our internal operating
structure and could distort the efficiencies of that structure. Adjusted
earnings also provides for easier comparisons of our performance and
profitability with prior and future periods and relative comparisons to our
peers. We believe our investors do not consider the items that we exclude from
adjusted earnings to be costs of producing our products, investments in
technology and production or costs to support our internal operating
structure, and so we present this non-GAAP measure to avoid overstating or
understating to our investors the performance of our operations.

Factors Affecting Future Performance

This press release contains "forward-looking" statements within the meaning of
the Private Securities Litigation Reform Act of 1995, including, but not
limited to, statements relating to estimates and projections of future
earnings per share, cash flow and revenue growth and other financial results,
developments relating to our customers and end-markets, and plans concerning
business development opportunities and divestitures. Words such as "believes,"
"intends," "anticipates," "plans," "expects," "projects," "forecasts," "will"
and similar expressions, and references to guidance, are intended to identify
forward-looking statements. Such statements are based on management's current
assumptions and expectations and no assurances can be given that our
assumptions or expectations will prove to be correct. A number of important
risk factors could cause actual results to differ materially from the results
described, implied or projected in any forward-looking statements. These
factors include, without limitation: (1) markets into which we sell our
products declining or not growing as anticipated; (2) fluctuations in the
global economic and political environments; (3) our failure to introduce new
products in a timely manner; (4) our ability to execute acquisitions and
license technologies, or to successfully integrate acquired businesses and
licensed technologies into our existing business or to make them profitable,
or successfully divest businesses; (5) our failure to adequately protect our
intellectual property; (6) the loss of any of our licenses or licensed rights;
(7) our ability to compete effectively; (8) fluctuation in our quarterly
operating results and our ability to adjust our operations to address
unexpected changes; (9) significant disruption in third-party package delivery
and import/export services or significant increases in prices for those
services; (10) disruptions in the supply of raw materials and supplies; (11)
the manufacture and sale of products exposing us to product liability claims;
(12) our failure to maintain compliance with applicable government
regulations; (13) regulatory changes; (14) our failure to comply with
healthcare industry regulations; (15) economic, political and other risks
associated with foreign operations; (16) our ability to retain key personnel;
(17) significant disruption in our information technology systems; (18) our
ability to obtain future financing; (19) restrictions in our credit
agreements; (20) our ability to realize the full value of our intangible
assets; (21) significant fluctuations in our stock price; (22) reduction or
elimination of dividends on our common stock; and (23) other factors which we
describe under the caption "Risk Factors" in our most recent quarterly report
on Form 10-Q and in our other filings with the Securities and Exchange
Commission. We disclaim any intention or obligation to update any
forward-looking statements as a result of developments occurring after the
date of this press release.

Contact:

Media Contact:
Edelman (On behalf of PerkinElmer, Inc.)
Paul Barren, 404-460-9679
paul.barren@edelman.com
or
PerkinElmer, Inc.
Stephanie Wasco, 781-663-5701
Vice President, Corporate Communications
stephanie.wasco@perkinelmer.com
or
Investor Relations:
PerkinElmer, Inc.
Tommy Thomas, 781-663-5889
Vice President, Investor Relations
tommy.thomas@perkinelmer.com
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