Alere Reiterates Commitment To Unlock Shareholder Value

           Alere Reiterates Commitment To Unlock Shareholder Value

Files Definitive Proxy Materials with SEC

Urges Stockholders to Vote FOR Alere's New and Independent Director Nominees

PR Newswire

WALTHAM, Mass., June 27, 2013

WALTHAM, Mass., June 27, 2013 /PRNewswire/ -- Alere Inc. (NYSE: ALR) (the
"Company" or "Alere"), a global leader in enabling individuals to take charge
of their health at home through the merger of rapid diagnostics and health
information solutions, today announced that on June 26, 2013 it filed and
commenced mailing of its definitive proxy materials in connection with the
Company's 2013 Annual Meeting of Stockholders, to be held on August 7, 2013,
with the Securities and Exchange Commission ("SEC"). Alere stockholders of
record at the close of business on June 14, 2013 will be entitled to vote at
the 2013 Annual Meeting. The Alere Board of Directors recommends stockholders
vote "FOR" Alere's new independent nominees: Hakan Bjorklund, Stephen
MacMillan, Brian Markison and Sir Thomas McKillop, as well as the other
proposals contained in the definitive proxy materials.

In support of its new independent nominees, Alere issues the following letter
to its valued stockholders:

June 27, 2013

Dear Fellow Alere Stockholder:

As part of our ongoing efforts to build stockholder value, Alere's Board of
Directors is pleased to nominate four outstanding senior executives, Hakan
Bjorklund, Stephen MacMillan, Brian Markison and Sir Thomas McKillop, for
election as directors at our 2013 Annual Meeting of Stockholders on August 7.
The nominees, all of whom we expect to qualify as independent directors under
applicable NYSE rules, would take seats previously filled by three independent
directors and one director who is a senior executive officer of Alere.

All four of your Board's nominees are current or former Chief Executive
Officers of major healthcare companies with significant operating experience.
The nominees were recommended by your Board's Nominating and Corporate
Governance Committee after a lengthy and extensive review process involving
the assistance of a premier executive search firm. We are confident that each
of these nominees will draw upon their experience as chief executives of
diverse and complex global organizations to contribute significantly to your
Board's expertise and oversight of Alere's corporate strategy through the next
stage of our growth and development.


While acquisitions have been a crucial part of our strategy to build our
company to the global scale, product breadth, and market leadership we now
have, this phase of our development is now substantially complete. Our focus
is now on internally improving our organic revenue growth and our operating

In November of last year, Alere's Board and management team presented to our
stockholders a three-point plan to drive higher operating margins and increase
free cash flow and earnings growth.

We believe that our plan has been well-received by investors and the plan is
already gaining traction. Alere's stock price has increased approximately 28%
since November 7, 2012, the last trading day prior to our communicating the
new strategy, as compared to returns during the same period for the S&P 500
index of 15%. We believe that we are poised to unlock significant additional
stockholder value and that our valuation will continue to improve from
significant earnings growth that will come from our focus on organic revenue
growth, improving operating margins and applying excess free cash flow to debt

Our three-point plan to unlock stockholder value consists of:

Deliverable: Re-establish historic organic revenue growth rates through a
combination of growth in existing businesses, new product launches and further
penetration of new geographic markets.

Actions taken or underway:

  oExisting businesses: In the near term, we expect our organic growth rate
    to accelerate as we (i) overcome Triage related manufacturing capacity
    constraints and begin the process of recapturing our customers, (ii)
    expand revenue from our toxicology products as pricing adjustments made in
    early 2012 have been in place for over one year and (iii) expand in
    diabetes sales with our positioning as a low-cost provider.
  oNew product launches: We continue to drive growth through recent and near
    term product introductions such as our (i) CD4 Analyzer, (ii) Alere Q and
    Alere I molecular diagnostic tests for HIV, HCV, TB and flu and other
    infectious diseases and (iii) epoc Blood Analysis System, which provides
    caregivers with wireless communication and real-time lab-quality blood
    gas, electrolyte, and metabolite results at the patient bedside.
  oUnder-penetrated markets: We continue to expand in key markets in Asia,
    Latin America and Africa, where we remain underpenetrated.

Deliverable: Simplify our corporate structure and improve operational
execution to generate dependable, long-term cash flow.

Actions taken or underway:

  oWe are standardizing key business processes and globalizing shared
    services, in order to aggregate expenses and activities across multiple
    business units to obtain economies of scale.
  oWe are aggressively relocating support functions to lower-cost
    environments such as the Philippines and continuing our ongoing efforts to
    reduce manufacturing costs through automation and relocation to low cost
  oWe recently appointed Namal Nawana, a former 15-year executive at Johnson
    & Johnson, with global operational experience in integrating large,
    complex acquisitions to the newly created position of Chief Operating
    Officer and have given him the mandate to improve on our execution.

Deliverable: Utilize excess cash flow from operations, a reduced acquisition
pace and divestitures of non-core operations to support deleveraging to at
least 4.0x Debt to EBITDA by the end of 2015.

Actions taken or underway:

  oWe are engaged in active and ongoing discussions with multiple parties
    concerning the divestiture of several non-core businesses. Our actions
    are consistent with our historical practice of continually analyzing our
    business to evaluate prudent divestitures of non-core assets. Past
    transactions include our divestiture of our Nutritionals business in 2010
    and the formation of our consumer products joint venture with Procter &
    Gamble in 2007.
  oIn evaluating any future divestitures, our Board believes that a balance
    must be maintained between paying down debt and incurring excessive
    earnings dilution or diminishing our organic growth rate.
  oCash flow generation and earnings growth in our core businesses have
    already improved, and with the pace of acquisitions significantly reduced,
    deleveraging will naturally occur from internally generated cash flow.


Your Board's new independent director nominees are all proven, highly
successful Chief Executive Officers from the healthcare industry, each with a
track record of creating stockholder value through operational excellence, and
who have led large businesses, generating significant growth in revenue and
profits. In addition, each has expertise in successfully integrating
acquisitions, managing complex FDA and regulatory approval processes, and
developing, manufacturing and marketing medical products on a global basis.

By choosing to nominate our four non-incumbent director candidates, your Board
has taken a dramatic step to bring additional independent thinking and fresh
perspective to Alere. Your Board's director nominees have committed to being
actively engaged in overseeing management's execution of Alere's strategy with
each bringing unique operational experience to this critical role.

Dr. Hakan Bjorklund is the former CEO of Nycomed Luxco SA, a global
pharmaceutical company, and has 28 years of operating experience in the
healthcare industry. During Dr. Bjorklund's leadership of Nycomed from 1999
to 2011, Nycomed grew from a small, predominantly Scandinavian business, into
a major global pharmaceutical company with leading market positions in Europe,
Russia/CIS, Brazil and Latin America. In 2006, Dr. Bjorklund led the
integration of Altana Pharmaceutical, a German-based company Nycomed purchased
for $5.4 billion. Under Dr. Bjorklund's leadership, Nycomed's revenue and
EBITDA rose by over 800% and 900%, respectively, from $453 million to $4.2
billion in revenue, and from $96 million to $1 billion in EBITDA from 2001
(when financial information became publicly available for Nycomed) to 2010.
Dr. Bjorklund led the 2011 sale of Nycomed to Takeda Pharmaceuticals for $13.8
billion, which represented nearly double the invested dollars in Nycomed since
2002. Dr. Bjorklund's significant experience in integrating acquisitions and
successes in growing businesses rapidly in emerging markets are particularly
valuable given Alere's significant growth opportunities in many of the rapidly
developing economies of the world. In addition, Dr. Bjorklund's extensive
knowledge of European markets will benefit Alere in managing the ongoing
economic uncertainties in Europe as well as in launching many our new products
first in Europe.

Stephen MacMillan is the former CEO and COO of Stryker Corporation, a global
medical device company, and has 24 years of healthcare industry operating
experience. Prior to Stryker, Mr. McMillan was senior executive at Pharmacia
Corporation, a global pharmaceutical company, where he oversaw five global
businesses with revenue exceeding $2 billion, including one in diagnostics.
During his tenure as CEO and COO of Stryker from 2003 to 2012, Mr. MacMillan
successfully led Stryker through a series of key strategic acquisitions, the
launch of a number of key products within the orthopedic implants and medical
instrumentation businesses, and delivered strong operating performance, with
revenue and EBITDA growing from 2003 to 2011 by approximately 130% and 150%
respectively, from $3.6 billion to $8.3 billion in revenue and from $907
million to $2.3 billion in EBITDA. During his tenure, Stryker delivered stock
price appreciation of over 62%, compared to appreciation of the S&P 500 index
of approximately 40%. While Mr. MacMillan presided as CEO, Stryker was
selected by Forbes, over multiple consecutive years, as one of the "worlds
most admired companies." Mr. McMillan's deep operational and regulatory
experience in the medical products industry will help Alere in its efforts to
improve operational efficiencies, including effectively integrating recently
acquired businesses.

Brian Markison is the former CEO of both King Pharmaceuticals and Fougera
Pharmaceuticals, and has more than 31 years of healthcare operating
experience. Prior to King Pharmaceuticals and Fougera Pharmaceuticals, Mr.
Markison held various leadership positions over a 22-year career at
Bristol-Myers Squib, most notably serving as President of the
Neuroscience/Infectious Disease and Dermatology divisions. Mr. Markison
joined King in March 2004 and became CEO in July 2004, a position he retained
until Pfizer's acquisition of King in 2011. From 2004 to 2009, the last full
year of reported financials, revenue and EBITDA grew by 36% and 42%,
respectively, from $1.3 billion to $1.8 billion in revenue, and from $360
million to $513 million in EBITDA. While at King, Mr. Markison executed a
successful turn-around of the business, drove expansion into new international
markets and significantly expanded King's product portfolio through a number
of successful acquisitions, including King's $1.9 billion purchase of
Alpharma. Mr. Markison oversaw the sale of King to Pfizer in 2011 for $3.9
billion, and during his tenure, stock price appreciation was over 37% compared
to appreciation of the S&P 500 index of approximately 20%. Mr. Markison's
track record of turning around the performance of King while expanding
internationally, as well as executing and integrating acquisitions, will help
Alere deliver both improved operational performance and accelerated organic
growth while integrating many of its acquired businesses.

Sir Thomas Fulton Wilson McKillop is the former CEO of AstraZeneca, a global
pharmaceutical company, and has over 45 years of healthcare operating
experience. During his tenure as CEO at AstraZeneca and its predecessor,
Zeneca from 1994 to 2005, Dr. McKillop, as the former CEO of Zeneca plc led
the merger of Astra AB and Zeneca to create AstraZeneca plc. While CEO of
AstraZeneca, Dr. McKillop drove significant organic growth through a number of
successful product launches such that by 2005 AstraZeneca had ten separate
products with revenue over $1 billion. Under Dr. McKillop's leadership from
1999 to 2005, annual revenue at AstraZeneca grew over 58%, from approximately
$15 billion to nearly $24 billion, EBITDA grew over 130% from $3.4 billion to
over $7.8 billion, and stock price appreciation from the announcement of the
merger through 2005 was approximately 15.5% compared to appreciation of the
S&P 500 index of 5.7%. Dr. McKillop's experience in delivering significant
organic growth and in successful product launches will benefit Alere in its
efforts to accelerate its organic growth rates. His leadership of AstraZeneca
during the integration of a transformational merger will also benefit Alere as
it focuses on improving operational efficiencies though integration of its
acquired businesses.


Your management team and Board members of Alere beneficially own approximately
9% of Alere's common stock, significantly more than Coppersmith and Scopia's
combined ownership. Our interests are therefore closely aligned with
stockholders in driving the long term value of the company. As Chief
Executive Officer, my family and I beneficially own approximately 5.2% of
Alere's common stock, a larger position than any other individual.

Your management team, which has built Alere since its formation, has a strong
record of driving operational and stock price performance. While our stock
price has experienced declines from the pre-financial crisis peak in 2008, our
stock price has increased approximately 28% since the November announcement of
our plan to unlock stockholder value. In addition, our core management team
at Alere founded and built Inverness Medical Technology, the company from
which Alere was spun-off. At Inverness, our team delivered a total
stockholder return of 364% after its IPO in 1996 (34% annual return to
stockholders), culminating in the sale of Inverness, near the all-time high in
Inverness' stock, to Johnson & Johnson for $1.3 billion in 2001.


Alere is a global leader in the manufacture and development of point-of-care
products for the diagnosis and management of major chronic diseases. The core
focus of our business is on four large chronic disease categories:
cardiovascular diseases, infectious diseases, addictive diseases (toxicology)
and diabetes.

As a global leader in chronic diseases, we are extremely well positioned to
benefit from the long-term growth trends in the incidence and treatment of
chronic diseases, including:

  oThe prevalence and growth of chronic diseases, which account for more than
    60% of deaths worldwide, and which affect one-third of the world's
  oThe increased worldwide adoption of diagnostics to provide early diagnosis
    and better treatment outcomes for patients with chronic diseases.
  oAdoption of molecular testing, which is expected to improve performance,
    increase reimbursement and expand usage of diagnostic testing.

We are also well positioned to take advantage of the rapid changes in
healthcare, which will drive the demand for more effective diagnosis and
management of chronic disease patients by connecting physicians and patients
with real time diagnostic information.

  oIn the US, these changes include the growing burden of healthcare
    regulations under the Affordable Care Act that has caused the emergence of
    Accountable Care Organizations, which tie reimbursements to providers
    (physicians & hospitals) to achieving healthcare quality goals and patient
  oGlobally, these changes include the growing need to produce better
    outcomes for chronic disease patients while reducing costs.
  oIn response to these changes, healthcare providers are seeking (i)
    real-time access to patient care information that is captured from all
    healthcare settings, (ii) better decision support tools and (iii)
    comprehensive care management programs.

To address these changes, Alere has commercialized an integrated system
comprised of point-of-care diagnostics, health information systems and chronic
care management programs, and is well positioned to leverage our existing
customer relationships and sales and marketing channels to deliver these
solutions both in the US and on a global basis. We believe integrated systems
like ours both address current needs and increasingly will represent the
future of healthcare, providing comprehensive, real-time healthcare
information and programs to facilitate early intervention and management of
chronic conditions, all with the goal of lowering overall healthcare costs and
improving outcomes.


Coppersmith Capital Management has put forth proposals that are focused on
divesting and deleveraging at all costs, without regard for value-creation or
the ability to sustain long-term growth. Their plan includes shutting down
core businesses, or selling them at whatever fire-sale price can be achieved,
and appears to be designed to create a flurry of financial engineering
activity at the expense of building a well-positioned business.

Shutting down or divesting our Health Information Solutions for the express
and sole purpose of creating a tax loss would destroy stockholder value. With
the changing healthcare environment, our Health Information Solutions business
is at the core of our chronic disease strategy by connecting our proprietary
diagnostic devices to physicians, hospitals and accountable care
organizations, allowing for comprehensive care management with better outcomes
and lower costs. Furthermore, while the health management industry has
suffered several years of declines, our Health Information Solutions business
has stabilized and is on a path to sustained profitability. While we have
previously stated publicly that we are looking to divest selected non-core
parts of this business unit, shutting down or selling a profitable and growing
business would destroy value and compromise our growth strategy.

A sale of our Toxicology business would reduce revenue and earnings growth and
makes no strategic or financial sense. Diagnostics for addictive diseases is
one of our core diagnostic pillars in chronic disease, along with our other
key chronic disease verticals in cardiovascular disease, infectious disease
and diabetes. Drug and alcohol addictions are a pervasive and rapidly growing
chronic healthcare problem worldwide, and drug abuse is becoming an increasing
focus of government regulators. Alere has become a market leader in
toxicology diagnostics and testing services, and we are extremely well
positioned to generate attractive growth in this market. Furthermore, our
Toxicology business is one of our strongest revenue and profit growth areas,
and a divestiture would reduce both our revenue and earnings growth and be
massively dilutive to earnings per share.

What Coppersmith has mistakenly ignored, is that divesting profitable
businesses and using the net proceeds to pay down low-cost debt is dilutive to
earnings, unless the sale price is at exceedingly high multiples of cash
flow. In addition, selling businesses with strong growth that are core to
Alere's strategy severely compromises our competitive advantage and dilutes
our revenue growth. Our Board is absolutely committed to achieving the
deleveraging goals we announced in November 2012 – in a manner that creates
value for stockholders. Debt financing has been an attractive source of
capital for our historical acquisition strategy, and Alere currently has a
weighted average cost of debt of approximately 5%. Our current debt trading
levels and well-received bond offerings reflect very favorable views of Alere
from the debt markets.

In conclusion, your Board does not support the Coppersmith nominees or the
value destructive actions they are proposing because we believe they would be
detrimental to the creation of sustainable long-term value for our
stockholders. You should carefully review Alere's definitive proxy statement
which has been sent to you, vote the WHITE proxy card which accompanies the
proxy statement to elect Alere's four new independent director nominees and
discard any proxy materials you may receive from Coppersmith.

We appreciate and look forward to your continued support.


/s/ Ron Zwanziger

Ron Zwanziger
Chairman, Chief Executive Officer and

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of
the federal securities laws, including statements regarding anticipated growth
in revenues, operating margins, earnings and free cash flow, the anticipated
effect of our strategy, anticipated increases in valuation, planned product
launches, growth in new markets, anticipated economies of scale and reductions
in costs, deleveraging, potential divestitures, trends in the healthcare
industry, the timing of the Annual Meeting, the nominees for election as
director and the anticipated independence of the nominees. These statements
reflect our current views with respect to future events and are based on
management's current assumptions and information currently available. Actual
results may differ materially due to numerous factors including, without
limitation, risks associated with global market and economic conditions and
our ability to execute on our strategy, unanticipated effects of the
Affordable Care Act, disruptions in the capital markets, fluctuations in
currency exchange rates, changes in laws and regulations, dependence on
suppliers, potential product liability litigation, regulatory compliance
costs, unanticipated cost increases, competition, unanticipated delays or
difficulties in research and product development and changes in demand for our
products, as well as the other risks described in the "Risk Factors" section
of our Annual Report on Form 10-K filed with the SEC on March 1, 2013, as
amended. We undertake no obligation to update any forward-looking statements
contained herein.

Important Additional Information

In connection with its 2013 Annual Meeting of Stockholders, we have filed a
definitive proxy statement with the SEC and caused it to be mailed, together
with an annual report and proxy card, to each of our stockholders. The proxy
statement and a copy of the other materials that we file with the SEC from
time to time, including our Annual Report on Form 10-K, as amended, for the
year ended December 31, 2012, may be obtained free of charge via the Internet
at and through the Investor Relations page of our corporate
website, In addition, investors and security holders may
obtain free copies of the proxy statement, the annual report and other proxy
materials by directing a written request to Alere Inc., Investor Relations
Department, 51 Sawyer Road, Suite 200, Waltham, MA 02453-3448, Attention: Doug
Guarino or by telephone at (781) 647-3900.

The proxy statement and other relevant materials we have made or will make
available contain important information about the director nominees and the
other matters to be voted upon by stockholders at the 2013 Annual Meeting. We
urge stockholders to read the proxy statement, and any other relevant
materials we make available, before making any decision with respect to the
matters to be voted upon at the 2013 Annual Meeting, including the election of

Alere, our directors, director nominees and certain of our executive officers
and employees may be deemed to be participants in the solicitation of proxies
from our stockholders in connection with the 2013 Annual Meeting. Information
about the participants in the solicitation, their ownership of our common
stock and their direct and indirect interests in the matters to be voted upon
at the 2013 Annual Meeting, which may, in some cases, be different from the
interests of our stockholders generally, is set forth in the proxy statement.

SOURCE Alere Inc.

Contact: Kelly Sullivan / Annabelle Rinehart / Dan Moore, Joele Frank,
Wilkinson Brimmer Katcher, 212-355-4449
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