Worldwide revenues in 1999 were $3.4 billion, an increase of 10% over 1998, with acquisitions contributing 5%. The impact of foreign currency translation on revenue growth was not significant. Underlying revenue growth, which excludes the effects of foreign currency translation and acquisitions in 1999 and 1998, resulted primarily from volume increases in all segments.

Medical revenues in 1999 increased 12% over 1998 to $1.9 billion with acquisitions contributing 8%. Underlying revenue growth was led by strong sales of prefillable syringes to pharmaceutical companies and increased sales of infusion therapy products, particularly advanced protection devices. Underperformance of home health care products unfavorably affected revenue growth in 1999.

Medical operating income in 1999 was $343 million, an increase of 7% compared to 1998. Excluding the impact in both years of special and other charges, and the incremental impact of acquisitions, including related charges of $30 million recorded in 1998 for purchased in-process research and development, Medical operating income increased 5%. Revenue growth and productivity improvements were partially offset by increased investment in the areas of advanced protection devices and home health care and the impact of cost containment pricing pressures. As discussed above, we decided to exit several product lines in the home health care area during the third quarter of 1999.

Biosciences revenues in 1999 increased 7% over 1998 to $986 million with acquisitions contributing 2%. Underlying revenue growth was led by market share gains in flow cytometry products fueled by the continued introduction of innovative new products. Infectious disease product revenues continue to be adversely affected by cost containment in testing in the United States.

Biosciences operating income in 1999 was $76 million, a decrease of 1% compared to 1998. Excluding the impact in both years of special and other charges, and the incremental impact of acquisitions, including related charges of $49 million recorded in 1999 for purchased in-process research and development, Biosciences operating income increased 8%. This performance reflects an improved sales mix, as well as manufacturing and operational productivity gains. These gains were partially offset by increased research and development spending, particularly in the area of genomic research, and reengineering and other costs relating to Genesis.

Preanalytical revenues in 1999 increased 6% over 1998 to $509 million. Significant volume increases in advanced protection devices were partially offset by cost containment pricing pressures in several markets.

Preanalytical operating income of $124 million in 1999 represented a 7% increase compared to 1998. Excluding the impact in both years of special and other charges, and the incremental impact of acquisitions, Preanalytical operating income increased 9% primarily due to revenue growth. Savings achieved through productivity improvements and expense control programs were partially offset by increased investment for advanced protection programs and cost containment pricing pressures.

On a geographical basis, revenues outside the United States in 1999 increased 17% to $1.7 billion with acquisitions contributing 8%. The impact of foreign currency translation on revenue growth was not significant in 1999. Underlying revenue growth was led by strong sales of prefillable syringes in Europe and FACS brand flow cytometry systems and infectious disease diagnostic products in Japan. Underlying revenue growth in the Asia Pacific region was led by strong increases in sales of hypodermic and infusion therapy products.

Revenues in the United States in 1999 were $1.7 billion, an increase of 3% over 1998. Sales of FACS brand flow cytometry systems, infusion therapy products, and sample collection devices demonstrated good growth. As mentioned above, sales of infectious disease products continued to be negatively affected by cost containment in testing. Underperformance of home health care products also unfavorably affected revenue growth.

Gross profit margin was 49.9% in 1999, compared with 50.6% last year. Excluding the impact of other charges relating to the exited product lines, as discussed above, gross profit margin was 50.7% in 1999.

Selling and administrative expense of $932 million in 1999 was 27.3% of revenues. Excluding reengineering and other charges relating to Genesis, selling and administrative expense in 1999 was 26.8% of revenues. The prior year’s ratio was 27.6%, or 27.0% excluding reengineering charges for Genesis. Savings achieved through spending controls and productivity improvements offset increased investment relating to advanced protection programs and the impact of acquisitions.