PerkinElmer Exceeds Forecast With Record Earnings

Fourth Quarter EPS Up 22%, 1999 EPS Up 27%

--10% Organic Sales Growth --Double Digit Operating Margins In All Businesses --2000 EPS Outlook Raised to $2.05 - $2.10

BOSTON, MA. PerkinElmer, Inc. (NYSE: PKI) announced record 1999 earnings today and raised EPS guidance for 2000. Gregory L. Summe, Chairman and Chief Executive Officer said, "This past year we demonstrated our ability to successfully re-configure our portfolio to drive higher earnings and revenue growth, while continuing to build a world-class operating company. We go into the year with very strong momentum and therefore are raising our 2000 EPS outlook to the range of $2.05 to $2.10 from $1.93 to $1.95."

Highlights of the Company s financial results include:

--Fourth quarter revenue grew 83% to $427 million. Adjusting for acquisitions and divestitures, organic growth was 10%, 12% excluding the impact of foreign exchange. For the year, sales grew to $1.4 billion from $854 million or 60%.

--Operating margin expanded to 11.3% in the quarter reflecting volume growth and the Company s Six Sigma quality and productivity initiatives. Each of the Company s four Strategic Business Units achieved double digit operating margins.

--Quarterly earnings per share increased 22% to $.61 from fourth quarter 1998; and for the year, earnings per share grew 27% to $1.70. Earnings from continuing operations for the fourth quarter and full year increased 69% and 81%, respectively, compared with the prior periods.

Other recent highlights include:

--A global strategic alliance and equity investment with Genomic Solutions, immediately broadening its proteomics and genomics capabilities while increasing its critical mass in the drug discovery market. The alliance is a major step in the aggressive expansion of PerkinElmer s Life Sciences business.

--The Company s acquisition of Vivid Technologies, a leading supplier of advanced explosive detection systems used in airports and high-security facilities around the world.

--A strategic relationship and equity position with SciQuest.com, "The Internet Source for Scientific Products," that allows PerkinElmer to offer its Instruments and Life Sciences products as a featured supplier on the SciQuest Web site.

--A strategic alliance and equity investment with Bragg Photonics, Inc., a leading producer of fiber optic gratings, supplementing the Company s growing fiber optic components business. Telecommunications is a high priority growth area for PerkinElmer, with its Optoelectronics unit providing a broad range of products from receivers, transmitters, pump lasers, photo-detectors, dense wavelength division multiplexing (DWDM) and advanced products for fiber optic communications.

Fourth-quarter financial highlights by business unit include:

--Life Sciences sales grew to $48.1 million or 13% excluding the impact of foreign exchange, while operating income grew 45% to $7.9 million. Operating margin expanded to 16.3%, an increase of 420 basis points over the fourth quarter of 1998. These results reflect strength in the drug discovery and population screening markets and solid market acceptance of new products, such as the Viewlux high throughput screening system.

--Optoelectronics sales increased 46% to $107.8 million, while operating income increased 104% to $13.6 million. Organic growth was 10% over 1998. Operating margin increased 360 basis points to 12.6%. Strong telecom and specialty lighting sales drove the revenue expansion. Margin improvement came primarily from the higher volume and benefits from restructuring and Six Sigma initiatives.

--Instruments sales expanded to $225.6 million for the quarter, an increase of 221% year over year. Organic growth excluding foreign exchange was 11%, due largely to strong growth in both Chemical Analysis and Pharma and Food analytical instrument business.

Operating income was up 81%, but operating margins were down from the prior year due primarily to goodwill charges related to the Analytical Instruments acquisition and royalty income and sales tax refund in fourth quarter 1998. Excluding these items, margins grew 270 basis points.

--Fluid Sciences sales increased to $45.7 million. Excluding the metal fabrication business sold in the fourth quarter, revenue grew 15% and operating margins expanded 310 basis points to 14.9%. Recovery in the semiconductor industry and continued growth in the power generation businesses more than offset weakness in the aerospace markets.

In reflecting on the 1999 results, Mr. Summe said, "This completes the second year in our transformation to becoming a world-class high technology company. We are very pleased with the strength of our organization, the dedication of our employees and our success in integrating acquired businesses while divesting non-core assets. During the past two years, our return to shareholders has been 46% per year and we are well positioned to deliver another year of record results in 2000."

Factors Affecting Future Performance

This press release contains "forward-looking" statements as defined in Section 21E of the Securities Exchange Act of 1934. For this purpose, any statements contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Words such as "believes," "anticipates," "plans," "expects," "will" and similar expressions are intended to identify forward-looking statements. There are a number of important factors that could cause the results of PerkinElmer to differ materially from those indicated by these forward-looking statements, including among others, factors set forth in the Company s filings with the Securities and Exchange Commission, including, without limitation, factors under "Forward-looking Information and Factors Affecting Future Performance" in the Company s Annual Report on Form 10-K for the year ended January 3, 1999 filed with the Securities and Exchange Commission, which factors are expressly incorporated by reference in this press release.

PerkinElmer, Inc. is a $1.6 billion high technology company based in Boston, Massachusetts, operating in four businesses - Life Sciences, Fluid Sciences, Optoelectronics, and Analytical Instruments. The Company has operations in over 100 countries, and is a component of the S&P 500 Index. Additional information is available at www.perkinelmer.com or at 1-877-PKI-NYSE.

Contact:
PerkinElmer, Inc.
Diane J. Basile, (781) 431-4306