PerkinElmer Announces Financial Results for the Third Quarter of 2008

-- Revenue of $505.1 million, up 16%

-- EPS from continuing operations of $0.37; Adjusted EPS of
$0.38, up 15%
WALTHAM, Mass.--(Business Wire)--
PerkinElmer, Inc. (NYSE: PKI), a global leader in Health Sciences
and Photonics, today reported financial results for the third quarter
ended September 28, 2008. The Company reported GAAP earnings per share
from continuing operations of $0.37. On a non-GAAP basis, which
includes the adjustments noted in the attached reconciliation, the
Company announced adjusted earnings per share of $0.38, which is above
the Company's prior guidance of $0.36 to $0.37.

Revenue for the third quarter 2008 was $505.1 million, an increase
of 16% versus the third quarter 2007. Revenue increased 17% in Life
and Analytical Sciences and 13% in Optoelectronics compared to the
same period a year ago. Changes resulting from foreign exchange rates
and acquisitions contributed approximately 2% and 5%, respectively, to
the third quarter 2008 revenue growth.

"PerkinElmer had another excellent quarter of strong growth in
revenue, earnings per share and cash flow, as our businesses continued
to execute well," commented Robert F. Friel, president and chief
executive officer of PerkinElmer. "In addition, we believe we are
strategically well positioned to capitalize on several long term
growth trends, such as early and more predictive diagnostics, greater
levels of testing for consumer and product safety, and environmental
monitoring. Even with the global economic uncertainty, which may
affect our growth rates in the short term, we believe that our strong
financial position will allow us to continue to invest and strengthen
our leadership positions in these attractive markets."

Net income from continuing operations was $43.8 million, up 41% as
compared to $31.1 million for the same period in 2007. GAAP operating
profit from continuing operations for the third quarter 2008 was $45.3
million, compared to $45.8 million for the same period a year ago. On
a non-GAAP basis, which includes the adjustments noted in the attached
reconciliation, adjusted operating profit for the third quarter 2008
was $69.5 million, up 20% as compared to $58.0 million in the third
quarter 2007. For the third quarter of 2008, cash flow from operations
was $32.4, up 39% from the same period a year ago.

Financial Overview by Reporting Segment

Life and Analytical Sciences reported revenue of $373.4 million
for the third quarter 2008, up 17% from revenue of $319.3 million in
the third quarter 2007. The segment's GAAP operating profit for the
third quarter 2008 was $29.6 million, compared to $29.3 million for
the same period a year ago. On a non-GAAP basis, which includes the
adjustments noted in the attached reconciliation, the segment's
adjusted operating profit for the third quarter 2008 was $50.6
million, up 24% as compared to $40.7 million in the third quarter
2007.

Optoelectronics reported revenue of $131.7 million for the third
quarter 2008, up 13% from revenue of $116.3 million in the third
quarter 2007. The segment's GAAP operating profit for the third
quarter 2008 was $25.5 million, compared to $24.6 million for the same
period a year ago. On a non-GAAP basis, which includes the adjustments
noted in the attached reconciliation, the segment's adjusted operating
profit for the third quarter 2008 was $27.5 million, up 13% as
compared to $24.2 million in the third quarter 2007.

Financial Guidance

Given the uncertainty of the macroeconomic conditions and
difficult credit markets, we feel it is prudent to expand the range of
our earnings per share guidance. For the full year 2008, we expect
GAAP earnings per share from continuing operations in the range of
$1.19 to $1.24 and non-GAAP adjusted earnings per share in the range
of $1.48 to $1.53, which is expected to include the adjustments noted
in the attached reconciliation. This would represent a 14% to 18%
increase in adjusted EPS over 2007.

Conference Call Information

The Company will discuss its third quarter results and forecast
for the remainder of the year in a conference call on October 23,
2008, at 5:00 p.m. Eastern Time (ET). To access the call, please dial
(617) 213-8899 prior to the scheduled conference call time and provide
the access code 96939632. A replay of this conference call will be
available approximately two hours after the call. The replay phone
number is (617) 801-6888 and the access code is 74766013.

A live audio webcast of the call will be available on the Investor
section of the Company's Web site, www.perkinelmer.com. Please go to
the site at least 15 minutes prior to the call in order to register,
download, and install any necessary software. An archived version of
the webcast will be posted on the Company's Web site approximately two
hours after the call and will be available through November 23, 2008.

Use of Non-GAAP Financial Measures

In addition to financial measures prepared in accordance with
generally accepted accounting principles (GAAP), this earnings
announcement also contains non-GAAP financial measures. The reasons
that we use these measures, a reconciliation of these measures to the
most directly comparable GAAP measures, and other information relating
to these measures are included below following our GAAP financial
statements.

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. 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) our failure to introduce new products in a timely manner; (2) 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; (3) markets
into which we sell our products decline or do not grow as anticipated;
(4) our failure to adequately protect our intellectual property; (5)
the loss of any of our licenses or licensed rights; (6) our ability to
compete effectively; (7) fluctuation in our quarterly operating
results and our ability to adjust our operations to address unexpected
changes; (8) significant disruption in third-party package delivery
and import/export services or significant increases in prices for
those services; (9) disruptions in the supply of raw materials and
supplies; (10) our ability to produce an adequate quantity of products
to meet our customers' demands; (11) the manufacture and sale of
products may expose us to product liability claims; (12) our failure
to maintain compliance with applicable government regulations; (13)
regulatory changes; (14) our failure to comply with health care
industry regulations; (15) economic, political and other risks
associated with foreign operations; (16) our ability to retain key
personnel; (17) restrictions in our credit agreements; (18) our
ability to realize the full value of our intangible assets; and (19)
other factors which we describe under the caption "Risk Factors" in
our most recent annual report on Form 10-K 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.

PerkinElmer, Inc. is a global technology leader driving growth and
innovation in Health Sciences and Photonics markets to improve the
quality of life. The Company reported revenue of $1.8 billion in 2007,
has approximately 9,100 employees serving customers in more than 150
countries, and is a component of the S&P 500 Index. Additional
information is available through www.perkinelmer.com or
1-877-PKI-NYSE.

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PerkinElmer, Inc. and Subsidiaries
CONSOLIDATED INCOME STATEMENTS

Three Months Ended Nine Months Ended
------------------- -----------------------
(In thousands, except per September September September September
share data) 28, 2008 30, 2007 28, 2008 30, 2007
--------- --------- ----------- -----------

Sales $505,117 $435,668 $1,516,096 $1,275,858

Cost of sales 293,957 256,722 887,719 762,197
Amortization of acquired
inventory revaluation - 445 - 2,492
Research and development
expenses 27,526 27,691 86,534 82,848
In-process research and
development charges - - - 1,502
Selling, general and
administrative expenses 131,118 106,406 406,217 317,528
Gains on settlement of
insurance claim - - - (15,346)
Restructuring and lease
charges (reversals), net 7,214 (1,432) 6,909 7,553
--------- --------- ----------- -----------

Operating income from
continuing operations 45,302 45,836 128,717 117,084

Interest income (1,064) (1,077) (3,249) (3,381)
Interest expense 6,371 4,122 18,435 9,886
Gains on dispositions, net - (161) (1,158) (697)
Other expense, net 743 2,396 2,280 5,668
--------- --------- ----------- -----------

Income from continuing
operations before income
taxes 39,252 40,556 112,409 105,608

(Benefit from) provision
for income taxes (4,506) 9,454 13,482 26,384
--------- --------- ----------- -----------

Net income from continuing
operations 43,758 31,102 98,927 79,224

Loss from discontinued
operations, net of income
taxes - - (4,166) -
Gain (loss) on disposition
of discontinued
operations, net of income
taxes 8,144 (357) 985 (100)
--------- --------- ----------- -----------

Net income $ 51,902 $ 30,745 $ 95,746 $ 79,124
========= ========= =========== ===========

Diluted earnings (loss)
per share:
Continuing operations $ 0.37 $ 0.26 $ 0.83 $ 0.65

Loss from discontinued
operations, net of income
taxes - - (0.03) -
Gain (loss) on disposition
of discontinued
operations, net of income
taxes 0.07 - 0.01 -
--------- --------- ----------- -----------

Net income $ 0.43 $ 0.26 $ 0.80 $ 0.65
========= ========= =========== ===========

Weighted average diluted
shares of common stock
outstanding 119,609 119,453 119,029 121,135

ABOVE PREPARED IN ACCORDANCE WITH GAAP

Additional Supplemental
Information:
(per share, continuing
operations)

GAAP diluted EPS from
continuing operations $ 0.37 $ 0.26
Amortization of intangible
assets, net of income
taxes 0.08 0.06
Stock options, net of
income taxes 0.01 0.01
Amortization of acquired
inventory revaluation,
net of income taxes - -
Purchase accounting
adjustment - revenue not
recognized, net of income
taxes - -
Tax benefit from audit
settlements (0.12) -
Restructuring and lease
charges (reversals), net
of income taxes 0.04 (0.01)
--------- ---------
Adjusted EPS $ 0.38 $ 0.33
========= =========
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PerkinElmer, Inc. and Subsidiaries
SALES AND OPERATING PROFIT (LOSS)

Three Months Ended Nine Months Ended
------------------- -----------------------
September September September September
(In thousands) 28, 2008 30, 2007 28, 2008 30, 2007
--------- --------- ----------- -----------
Life and Analytical
Sciences
Sales $ 373,418 $319,341 $1,127,082 $ 945,163
OP$ reported 29,610 29,312 88,514 88,781
OP% reported 7.9% 9.2% 7.9% 9.4%
Amortization of
intangibles 13,264 10,099 39,636 29,882
Stock option expense 779 830 2,354 2,296
Amortization of
acquired inventory
revaluation - 445 - 2,492
In-process research and
development charges - - - 1,502
Gains on settlement of
insurance claim - - - (15,346)
Purchase accounting
adj. - revenue not
recognized 482 - 2,771 -
Restructuring and lease
charges 6,495 - 6,573 4,438
OP$ adjusted 50,630 40,686 139,848 114,045
OP% adjusted 13.6% 12.7% 12.4% 12.1%

Optoelectronics
Sales 131,699 116,327 389,014 330,695
OP$ reported 25,547 24,570 72,611 53,832
OP% reported 19.4% 21.1% 18.7% 16.3%
Amortization of
intangibles 807 670 2,377 1,986
Stock option expense 381 388 1,022 1,139
Restructuring and lease
charges (reversals) 719 (1,432) 336 3,115
OP$ adjusted 27,454 24,196 76,346 60,072
OP% adjusted 20.8% 20.8% 19.6% 18.2%

Corporate
OP$ reported (9,855) (8,046) (32,408) (25,529)
Stock option expense 1,316 1,170 2,847 3,280
OP$ adjusted (8,539) (6,876) (29,561) (22,249)

Continuing Operations
Sales $ 505,117 $435,668 $1,516,096 $1,275,858
OP$ reported 45,302 45,836 128,717 117,084
OP% reported 9.0% 10.5% 8.5% 9.2%
Amortization of
intangibles 14,071 10,769 42,013 31,868
Stock option expense 2,476 2,388 6,223 6,715
Amortization of
acquired inventory
revaluation - 445 - 2,492
In-process research and
development charges - - - 1,502
Gains on settlement of
insurance claim - - - (15,346)
Purchase accounting
adj. - revenue not
recognized 482 - 2,771 -
Restructuring and lease
charges (reversals) 7,214 (1,432) 6,909 7,553
--------- -------- ---------- ----------
OP$ adjusted $ 69,545 $ 58,006 $ 186,633 $ 151,868
========= ======== ========== ==========
OP% adjusted 13.8% 13.3% 12.3% 11.9%

SALES AND REPORTED OPERATING PROFIT PREPARED IN ACCORDANCE WITH GAAP
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PerkinElmer, Inc. and Subsidiaries
CONSOLIDATED BALANCE SHEETS

September December
(In thousands) 28, 2008 30, 2007
----------- -----------

Current assets:
Cash and cash equivalents $ 188,808 $ 203,348
Accounts receivable, net 345,251 337,659
Inventories, net 218,868 202,394
Other current assets 113,599 98,797
Current assets of discontinued operations 664 750
----------- -----------
Total current assets 867,190 842,948
----------- -----------

Property, plant and equipment, net:
At cost 610,034 579,771
Accumulated depreciation (400,919) (378,885)
----------- -----------
Property, plant and equipment, net 209,115 200,886
Marketable securities and investments 4,141 5,919
Intangible assets, net 466,821 479,209
Goodwill 1,417,160 1,355,656
Other assets, net 55,758 59,451
Long-term assets of discontinued operations 1,343 5,268
----------- -----------
Total assets $3,021,528 $2,949,337
=========== ===========

Current liabilities:
Short-term debt $ 40 $ 562
Accounts payable 184,857 186,388
Accrued restructuring and integration costs 13,416 12,821
Accrued expenses 320,258 346,778
Current liabilities of discontinued
operations 5,222 1,049
----------- -----------
Total current liabilities 523,793 547,598
----------- -----------

Long-term debt 544,050 516,078
Long-term liabilities 318,601 310,384
----------- -----------
Total liabilities 1,386,444 1,374,060
----------- -----------

Commitments and contingencies

Total stockholders' equity 1,635,084 1,575,277
----------- -----------
Total liabilities and stockholders'
equity $3,021,528 $2,949,337
=========== ===========

PREPARED IN ACCORDANCE WITH GAAP
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PerkinElmer, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS

Three Months Ended Nine Months Ended
-------------------- ---------------------
September September September September
28, 30, 28, 30,
2008 2007 2008 2007
--------- ---------- ---------- ----------
(In thousands)

Operating activities:
Net income $ 51,902 $ 30,745 $ 95,746 $ 79,124
Add: loss from
discontinued operations,
net of income taxes - - 4,166 -
Add: (gain) loss on
disposition of
discontinued operations,
net of income taxes (8,144) 357 (985) 100
--------- ---------- ---------- ----------
Net income from
continuing operations 43,758 31,102 98,927 79,224
--------- ---------- ---------- ----------
Adjustments to reconcile
net income from continuing
operations to net cash
provided by continuing
operations:
Stock-based
compensation 5,427 3,119 13,758 10,625
Restructuring and lease
charges (reversals),
net 7,214 (1,432) 6,909 7,553
Amortization of
deferred debt issuance
costs 634 73 1,431 221
Depreciation and
amortization 22,935 18,983 67,641 57,144
In-process research and
development charges - - - 1,502
Amortization of
acquired inventory
revaluation - 445 - 2,492
Gains on settlement of
insurance claim - - - (15,346)
Gains on dispositions,
net - (161) (1,158) (697)
Changes in operating assets
and liabilities:
Accounts receivable,
net (8,233) (7,149) (440) 2,308
Inventories, net (3,855) (2,405) (15,284) (8,861)
Accounts payable (5,896) 3,996 (5,003) (1,949)
Accrued expenses and
other (28,355) (22,839) (35,965) (23,743)
--------- ---------- ---------- ----------
Net cash provided by
operating activities of
continuing operations 33,629 23,732 130,816 110,473
--------- ---------- ---------- ----------
Net cash used in operating
activities of discontinued
operations (1,222) (360) (3,547) (114)
--------- ---------- ---------- ----------
Net cash provided by
operating activities 32,407 23,372 127,269 110,359
--------- ---------- ---------- ----------

Investing activities:
Capital expenditures (14,017) (10,471) (33,418) (37,988)
Proceeds from
dispositions of
property, plant and
equipment, net - - - 10,787
Proceeds from surrender
of life insurance
policies - 274 - 1,601
Changes in restricted
cash balances 334 - 334 -
Payments for business
development activity (12) (46) (160) (1,140)
Proceeds from disposition
of businesses and
investments, net - 449 1,158 1,029
Payments for acquisitions
and investments, net of
cash and cash
equivalents acquired (894) (1,091) (87,252) (44,016)
--------- ---------- ---------- ----------
Net cash used in investing
activities of continuing
operations (14,589) (10,885) (119,338) (69,727)
--------- ---------- ---------- ----------
Net cash (used in) provided
by investing activities of
discontinued operations - - (68) 800
--------- ---------- ---------- ----------
Net cash used in investing
activities (14,589) (10,885) (119,406) (68,927)
--------- ---------- ---------- ----------

Financing Activities:
Payments on debt (21,000) (132,737) (531,500) (182,431)
Proceeds from borrowings 44,000 142,000 409,500 271,462
Proceeds from the sale of
senior subordinated debt - - 150,000 -
Payments for debt
issuance costs (128) (415) (1,969) (415)
Settlement of cash flow
hedges - - (11,702) -
Decrease in other credit
facilities (12) (37) (511) (861)
Tax benefit from exercise
of common stock options 251 4,552 359 5,987
Proceeds from issuance of
common stock under stock
plans 25,067 17,442 43,435 30,223
Purchases of common stock (56,731) (28,926) (57,139) (176,031)
Dividends paid (8,318) (8,287) (24,805) (25,410)
--------- ---------- ---------- ----------
Net cash used in financing
activities (16,871) (6,408) (24,332) (77,476)
--------- ---------- ---------- ----------

Effect of exchange rate
changes on cash and cash
equivalents (5,590) 4,782 1,929 5,886
--------- ---------- ---------- ----------

Net (decrease) increase in
cash and cash equivalents (4,643) 10,861 (14,540) (30,158)
Cash and cash equivalents
at beginning of period 193,451 150,040 203,348 191,059
--------- ---------- ---------- ----------
Cash and cash equivalents
at end of period $188,808 $ 160,901 $ 188,808 $ 160,901
========= ========== ========== ==========

PREPARED IN ACCORDANCE WITH GAAP
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PerkinElmer, Inc. and Subsidiaries
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

----------------------------------
PKI
(In millions, except per share
data) Q308 Q307
------------------- -------------
Adjusted gross margin:
GAAP gross margin $ 211.2 41.8% $178.5 41.0%
Amortization of intangibles 9.5 1.9% 8.5 2.0%
Stock option expense 0.4 0.1% 0.4 0.1%
Purchase accounting adjustment -
revenue not recognized 0.5 0.1% - 0.0%
Amortization of acquired inventory
revaluation - 0.0% 0.4 0.1%
----------------------------------
Adjusted gross margin $ 221.5 43.8% $187.8 43.1%
==================================

Adjusted SG&A:
GAAP SG&A $ 131.1 26.0% $106.4 24.4%
Amortization of intangibles (4.1) -0.8% (1.8) -0.4%
Stock option expense (2.1) -0.4% (1.9) -0.4%
----------------------------------
Adjusted SG&A $ 124.9 24.7% $102.7 23.6%
==================================

Adjusted R&D:
GAAP R&D $ 27.5 5.4% $ 27.7 6.4%
Amortization of intangibles (0.5) -0.1% (0.4) -0.1%
Stock option expense - 0.0% (0.1) 0.0%
----------------------------------
Adjusted R&D $ 27.0 5.3% $ 27.1 6.2%
==================================

Adjusted operating profit:
GAAP operating profit $ 45.3 9.0% $ 45.8 10.5%
Amortization of intangibles 14.1 2.8% 10.8 2.5%
Stock option expense 2.5 0.5% 2.4 0.5%
Purchase accounting adjustment -
revenue not recognized 0.5 0.1% - 0.0%
Amortization of acquired inventory
revaluation - 0.0% 0.4 0.1%
Restructuring and lease charges
(reversals) 7.2 1.4% (1.4) -0.3%
----------------------------------
Adjusted operating profit $ 69.5 13.8% $ 58.0 13.3%
==================================

----------------------------------
PKI
Q308 Q307
------------- -------

Adjusted EPS:
GAAP EPS $ 0.43 $ 0.26
Discontinued operations (0.07) -
----------------------------------
GAAP EPS from continuing
operations 0.37 0.26
Amortization of intangibles, net
of income taxes 0.08 0.06
Stock option expense, net of
income taxes 0.01 0.01
Tax benefit from audit settlements (0.12) -
Purchase accounting adjustment -
revenue not recognized, net of
income taxes - -
Amortization of acquired inventory
revaluation, net of income taxes - -
Restructuring and lease charges
(reversals), net of income taxes 0.04 (0.01)
----------------------------------
Adjusted EPS $ 0.38 $ 0.33
==================================

----------------------------------
PKI
FY08 FY07
------------- -------

Adjusted EPS: Projected
GAAP EPS $1.16 - 1.21 $ 1.09
Discontinued operations (0.03) 0.02
----------------------------------
GAAP EPS from continuing
operations 1.19 - 1.24 1.11
Amortization of intangibles, net
of income taxes 0.31 0.24
Restructuring and lease charges
(reversals), net of income taxes 0.04 0.09
Stock option expense, net of
income taxes 0.05 0.05
Amortization of acquired inventory
revaluation, net of income taxes - 0.02
In-process research & development,
net of income taxes - 0.01
Legal settlements, net of income
taxes - 0.01
Purchase accounting adjustment -
revenue not recognized, net of
income taxes 0.01 0.01
Gains on settlement of insurance
claim, net of income taxes - (0.08)
Tax benefit from audit settlements (0.12) (0.15)
----------------------------------
Adjusted EPS $1.48 - 1.53 $ 1.30
==================================

----------------------------------
LAS
Q308 Q307
------------- -------
Adjusted operating profit:
GAAP operating profit $ 29.6 7.9% $ 29.3 9.2%
Amortization of intangibles 13.3 3.6% 10.1 3.2%
Stock option expense 0.8 0.2% 0.8 0.3%
Purchase accounting adjustment -
revenue not recognized 0.5 0.1% - 0.0%
Amortization of acquired inventory
revaluation - 0.0% 0.4 0.1%
Restructuring and lease charges 6.5 1.7% - 0.0%
----------------------------------
Adjusted operating profit $ 50.6 13.6% $ 40.7 12.7%
==================================

----------------------------------
OPTO
Q308 Q307
------------- -------
Adjusted operating profit:
GAAP operating profit $ 25.5 19.4% $ 24.6 21.1%
Amortization of intangibles 0.8 0.6% 0.7 0.6%
Stock option expense 0.4 0.3% 0.4 0.3%
Restructuring and lease charges
(reversals) 0.7 0.5% (1.4) -1.2%
----------------------------------
Adjusted operating profit $ 27.5 20.8% $ 24.2 20.8%
==================================
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Adjusted Gross Margin and Adjusted Gross Margin Percentage

We use the term "adjusted gross margin" to refer to GAAP gross
margin, excluding amortization of intangible assets, inventory fair
value adjustments related to business acquisitions, and stock option
expense, and including estimated revenue from contracts acquired in
the acquisition of ViaCell, Inc., or ViaCell, that will not be fully
recognized due to business combination accounting rules. We use the
related term "adjusted gross margin percentage" to refer to adjusted
gross margin as a percentage of GAAP revenue. We believe that these
non-GAAP measures, when taken together with our GAAP financial
measures, allow us and our investors to better measure the performance
of our investments in technology, to evaluate the long-term
profitability trends and to assess our ability to invest in the
business. We exclude amortization of intangible assets from these
measures because intangibles amortization charges do not represent
what our management and what we believe our investors consider to be
costs of producing our products and could distort the additional value
generated over the cost of producing those products. Inventory fair
value adjustments related to business acquisitions also do not
represent what our management and what we believe our investors
consider to be costs used in producing our products. In addition, we
exclude stock option expense from these measures because stock-based
compensation plans and the critical assumptions used to calculate the
expense vary dramatically between us and our peers, which we believe
makes comparisons of long-term operating performance trends difficult
for management and investors, and could result in overstating or
understating to our investors the costs used in producing our
products. We include estimated revenue from contracts acquired in the
ViaCell acquisition that will not be fully recognized because our GAAP
revenue for the periods subsequent to our acquisition do not reflect
the full amount of storage revenue on these contracts that would have
otherwise been recorded by ViaCell. The non-GAAP adjustment is
intended to reflect the full amount of such revenue. Our management
and we believe our investors will use this adjustment as a measure of
the ongoing performance of the ViaCell business because customers have
historically renewed these contracts, although there can be no
assurance that customers will do so in the future.

Adjusted Selling, General and Administrative (SG&A) Expense and
Adjusted SG&A Percentage

We use the term "adjusted SG&A expense" to refer to GAAP SG&A
expense, excluding amortization of intangible assets, and stock option
expense. We use the related term "adjusted SG&A percentage" to refer
to adjusted SG&A expense as a percentage of GAAP revenue. We believe
that these non-GAAP measures, when taken together with our GAAP
financial measures, allow us and our investors to better measure the
cost of the internal operating structure, our ability to leverage that
structure and the level of investment required to grow our business.
We exclude amortization of intangible assets from these measures
because intangibles amortization charges do not represent what our
management and what we believe our investors consider to be costs that
support our internal operating structure and could distort the
efficiencies of that structure. We also exclude stock option expense
from these measures because stock-based compensation plans and the
critical assumptions used to calculate the expense vary dramatically
between us and our peers, which we believe makes comparisons of
long-term operating performance trends difficult for management and
investors, and could result in overstating or understating to our
investors the costs to support our internal operating structure.

Adjusted Research and Development (R&D) Expense and Adjusted R&D
Percentage

We use the term "adjusted R&D expense" to refer to GAAP R&D
expense, excluding amortization of intangible assets, and stock option
expense. We use the related term "adjusted R&D percentage" to refer to
adjusted R&D expense as a percentage of GAAP revenue. We believe that
these non-GAAP measures, when taken together with our GAAP financial
measures, allow us and our investors to better understand and evaluate
our internal technology investments. We exclude amortization of
intangible assets from these measures because intangibles amortization
charges do not represent what our management and what we believe our
investors consider to be internal investments in R&D activities and
could distort our R&D investment level. In addition, we exclude stock
option expense from these measures because stock-based compensation
plans and the critical assumptions used to calculate the expense vary
dramatically between us and our peers, which we believe makes
comparisons of long-term operating performance trends difficult for
management and investors, and could result in overstating or
understating to our investors the amount of our internal investments
in R&D activities.

Adjusted Operating Profit and Adjusted Operating Profit Margin

We use the term "adjusted operating profit" to refer to GAAP
operating profit, excluding amortization of intangible assets,
inventory fair value adjustments related to business acquisitions,
restructuring and lease charges (reversals), and stock option expense,
and including estimated revenue from contracts acquired in the ViaCell
acquisition that will not be fully recognized due to business
combination accounting rules. Adjusted operating profit is calculated
by subtracting adjusted R&D expense, adjusted SG&A expense and
restructuring and lease charges from adjusted gross margin. We use the
related term "adjusted operating profit margin" to refer to adjusted
operating profit as a percentage of GAAP revenue. We believe that
these non-GAAP measures, when taken together with our GAAP financial
measures, allow us and our investors to analyze the costs of the
different components of producing and selling our products, to better
measure the performance of our internal investments in technology and
to evaluate the long-term profitability trends of our core operations.
Adjusted operating profit 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 operating profit to
be costs of producing our products, investments in technology and
production, and 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. We
exclude restructuring and lease charges (reversals) because they tend
to occur due to an acquisition, divestiture, repositioning of the
business or other unusual event that could distort the performance
measures of our internal investments and costs to support our internal
operating structure. We include estimated revenue from contracts
acquired in the ViaCell acquisition that will not be fully recognized
because our GAAP revenue for the periods subsequent to our acquisition
do not reflect the full amount of storage revenue on these contracts
that would have otherwise been recorded by ViaCell. The non-GAAP
adjustment is intended to reflect the full amount of such revenue. Our
management and we believe our investors will use this adjustment as a
measure of the ongoing performance of the ViaCell business because
customers have historically renewed these contracts, although there
can be no assurance that customers will do so in the future.

Adjusted Earnings per Share

We use the term "adjusted earnings per share," or "adjusted EPS,"
to refer to GAAP earnings per share, excluding discontinued
operations, amortization of intangible assets, inventory fair value
adjustments related to business acquisitions, restructuring and lease
charges (reversals), stock option expense, and income from significant
tax audit settlements, and including estimated revenue from contracts
acquired in the ViaCell acquisition that will not be fully recognized
due to business combination accounting rules. Adjusted earnings per
share is calculated by subtracting adjusted R&D expense, adjusted SG&A
expense, restructuring and lease charges, other income/expense and
provision for taxes from adjusted gross margin. We believe that this
non-GAAP measure, when taken together with our GAAP financial
measures, allows us and our investors to analyze the costs of
producing and selling our products and the performance of our internal
investments in technology and our internal operating structure, to
evaluate the long-term profitability trends of our core operations and
to calculate the underlying value of the core business on a dilutive
share basis, which is a key measure of the value of the Company used
by our management and we believe used by investors as well. Adjusted
earnings per share also facilitates the overall analysis of the value
of the Company and the core measure of the success of our operating
business model as compared to prior and future periods and relative
comparisons to our peers. We exclude discontinued operations,
amortization of intangible assets, inventory fair value adjustments
related to business acquisitions, restructuring and lease charges
(reversals), stock option expense, and income from significant tax
audit settlements as these items do not represent what our management
and what we believe our investors consider to be costs of producing
our products, investments in technology and production, and costs to
support our internal operating structure, which could result in
overstating or understating to our investors the performance of our
operations. We include estimated revenue from contracts acquired in
the ViaCell acquisition that will not be fully recognized because our
GAAP revenue for the periods subsequent to our acquisition do not
reflect the full amount of storage revenue on these contracts that
would have otherwise been recorded by ViaCell. The non-GAAP adjustment
is intended to reflect the full amount of such revenue. Our management
and we believe our investors will use this adjustment as a measure of
the ongoing performance of the ViaCell business because customers have
historically renewed these contracts, although there can be no
assurance that customers will do so in the future.

---

The non-GAAP financial measures described above are not meant to
be considered superior to, or a substitute for, our financial
statements prepared in accordance with GAAP. There are material
limitations associated with non-GAAP financial measures because they
exclude charges that have an effect on our reported results and,
therefore, should not be relied upon as the sole financial measures to
evaluate our financial results. Management compensates and believes
that investors should compensate for these limitations by viewing the
non-GAAP financial measures in conjunction with the GAAP financial
measures. In addition, the non-GAAP financial measures included in
this earnings announcement may be different from, and therefore may
not be comparable to, similar measures used by other companies.

Each of the non-GAAP financial measures listed above are also used
by our management to evaluate our operating performance, communicate
our financial results to our Board of Directors, benchmark our results
against our historical performance and the performance of our peers,
evaluate investment opportunities including acquisitions and
discontinued operations, and determine the bonus payments for senior
management and employees.

Investor Relations:
PerkinElmer, Inc.
Michael A. Lawless, 781-663-5659
or
Media Contact:
PerkinElmer, Inc.
Stephanie R. Wasco, 781-663-5701
stephanie.wasco@perkinelmer.com
or
Additional Media Contact:
Porter Novelli
Lynne H. Brum, 617-897-8258
Lbrum@pnlifesciences.com

Copyright Business Wire 2008