DP Diagnostic Products

Diagnostic Products Corporation (NYSE:DP) today reported third quarter sales of $116.3 million, a 7% increase over the third quarter of 2004. Sales for the nine months ending September 30, 2005 were $354.7 million, an increase of 9% over the same period in 2004. Earnings for the quarter were $17.1 million, or $.56 per diluted share, up from $16.5 million or $.55 reported for the third quarter of 2004. Earnings for the nine months were $54.1 million or $1.79 per diluted share versus $50.6 million or $1.69 per diluted share in the same period in 2004. In the third quarter of 2005, the Brazilian real strengthened relative to the dollar while the euro weakened slightly, and the net effect of foreign currency movements was a 2% increase in sales. In the first nine months of 2005 both the real and the euro strengthened relative to the dollar and the effect of currency movements was an increase in sales of 3%. In the third quarter, domestic sales increased 15% to $37.1 million while international sales grew at 3%. For the nine months, domestic sales increased 13% to $106.3 million while international sales grew at 7%. Sales of IMMULITE products grew 8% over the third quarter of 2004. IMMULITE product line sales reached $107.7 million for the quarter. IMMULITE reagent sales increased 7% this quarter over the third quarter of 2004 to $91.9 million, and IMMULITE instrument and service revenue increased by 16% to $15.8 million. Sales of RIA products were $5.3 million, a 9% decline from last year's third quarter. Sales of other products were $3.3 million, versus $3.5 million in the same period last year. "We were disappointed in the reagent flow this quarter which is a reflection of the limited number of tests released over the last year," said Michael Ziering, CEO of DPC. "However, we have released three new tests on the 2500 for international markets in the last three months and are on track to release proBNP internationally in November." The Company shipped a total of 226 IMMULITE instruments in the third quarter including 146 IMMULITE 2000s and 2500s. The total number of IMMULITEs shipped is now over 10,600. Diagnostic Products Corporation, founded in 1971, is a global leader dedicated to immunodiagnostics. DPC's product menu includes over 75 immunoassays and more than 375 specific allergens and allergy panels. In addition, DPC addresses the chemistry and laboratory automation testing needs of its customers through partnerships with manufacturers of chemistry systems and reagents. The combined chemistry and immunoassay menu is one of the largest and most diversified available, covering most laboratory tests requested. DPC also designs and manufactures automated laboratory instrumentation, which provides fast, accurate results while reducing labor and reagent costs. DPC sells its products to hospitals, clinics and laboratories in more than 100 countries. Additional Company information can be found on DPC's website at www.dpcweb.com. Except for the historical information contained herein, this press release contains forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially. These factors include governmental or other action relating to the Company's Chinese affiliate; the rate of customer demand for the Company's products; the Company's ability to successfully market new and existing products; its dependence on certain suppliers; domestic and foreign government regulation; its ability to keep abreast of technological innovations and to translate them into new products; competition; political and economic instability in certain markets including the movements of foreign currencies relative to the dollar; and other risks and uncertainties disclosed from time to time in the Company's SEC reports and filings. -0- *T DIAGNOSTIC PRODUCTS CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (unaudited) (Amounts in Thousands, Except Per Share Data) Three Months Ended Nine Months Ended September 30, September 30, ------------------- ------------------- 2005 2004 2005 2004 --------- --------- --------- --------- SALES: Non-Affiliated Customers $111,105 $100,742 $337,944 $300,465 Unconsolidated Affiliates 5,225 8,221 16,756 25,049 --------- --------- --------- --------- Total Sales 116,330 108,963 354,700 325,514 COST OF SALES 50,499 46,432 149,422 137,270 --------- --------- --------- --------- Gross Profit 65,831 62,531 205,278 188,244 OPERATING EXPENSES: Selling 20,215 19,126 61,907 57,235 Research and Development 12,524 11,188 37,642 33,637 General and Administrative 11,977 11,752 38,120 32,475 Gain on Sale of Product Line (343) (343) Equity in Income of Affiliates (1,752) (1,705) (7,887) (6,535) --------- --------- --------- --------- OPERATING EXPENSES-NET 42,621 40,361 129,439 116,812 --------- --------- --------- --------- OPERATING INCOME 23,210 22,170 75,839 71,432 Interest/Other Income (Expense)-Net 1,084 1,334 2,270 781 --------- --------- --------- --------- INCOME BEFORE INCOME TAXES AND MINORITY INTEREST 24,294 23,504 78,109 72,213 PROVISION FOR INCOME TAXES 6,655 6,573 22,316 21,186 MINORITY INTEREST 587 414 1,724 434 --------- --------- --------- --------- NET INCOME $17,052 $16,517 $54,069 $50,593 ========= ========= ========= ========= EARNINGS PER SHARE: BASIC $0.58 $0.57 $1.84 $1.74 DILUTED $0.56 $0.55 $1.79 $1.69 WEIGHTED AVERAGE SHARES OUTSTANDING: BASIC 29,395 29,120 29,329 29,049 DILUTED 30,212 29,853 30,133 29,880 *T