2003 – Clinical Lab “Value Proposition”

`` CF FV HH

Reimbursement $240 $100 $140

Nanogen ASR $ 70 $ 30 $ 45

PCR Royalty $ 36 $ 15 $ 21

SDA Royalty $ 24 $ 10 $ 14

Labor1 $ 1 $ 1 $ 1

Equipment Load1 $ 5 $ 5 $ 5

Lab Gross Profit $128 $ 140 $ 49 $ 54 $ 68 $ 75

Lab Gross Margin 53% 58% 49% 54% 48% 54%

1Assumes 10 tests/day workload for each test