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If a successful business could distill and measure the essence of intelligent growth and
expansion, what would the result look like? It should come as no surprise that, at Waters, we’re
trying to do just that. After all, we’re experts in helping companies break down matter to its most
primary level. So as you might imagine, we take a relatively scientific approach to our business.
While we invest in many technologies and technology extensions, we employ a disciplined decision- making process based equally on very sound business and scientific principles. For example, we will not invest in a technology, no matter how brilliant, if we cannot identify clear and compelling
commercial applications and if we are not convinced the technology has an extremely good chance
of contributing significantly to our bottom line. Likewise, we will not enter a marketplace, no matter how promising, without technology that we believe is superior and will remain so.

Our philosophy has served both us and our shareholders well this past year. And over the past four decades, it is this kind of thinking that has helped make Waters one of the most respected
names in our industry. Respected by our customers, our employees and, yes, even our competitors.

In 1996 – 1997, we made a number of important strategic decisions that have helped us expand our product offerings and the markets where we have a major presence. molecular structureThese are the first careful steps to help us grow beyond our traditional High Performance Liquid Chromatography (HPLC) technologies. And while our roots are clearly still in HPLC, we are becoming more diverse, playing in a much larger marketplace. By adding mass spectrometry and thermal analysis to our core strength in HPLC, we can offer more comprehensive solutions to analytical laboratories worldwide.

The bottom line is that we are now a more diverse company. And one that is better able to respond to the increasing demands for advances in laboratory productivity.

In 1997, the market for liquid chromatography products
was nearly $2.0 billion. With recent acquisitions,
Waters is now a leader in the thermal analysis and mass spectrometry
arenas, and is participating in a worldwide market estimated at $3.0 billion annually.

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