Letter to Shareholders (cont.)

In December, we announced the acquisition of the pharmaceutical packaging business of Covance Inc., now called Fisher Clinical Services Inc. Completed in February 2001, the acquisition enhances our positions in the healthcare and life-science markets. Fisher Clinical Services also complements our manufacturing-outsourcing business by adding to our operations a leading worldwide provider of contract-packaging services for clinical trials to major pharmaceutical and biotechnology companies. Fisher now participates more fully in the rapidly growing market for the outsourcing of pharmaceutical services. We plan to continue to identify and acquire businesses that will enable us to better serve existing markets and expand our product and service offerings.

We also continued to make key investments in our existing facilities in 2000, building on our strong global manufacturing capabilities. We began production at our new KiloLab in the United Kingdom, which complements our organic chemical businesses and enhances our strengths in custom synthesis and contract manufacturing. Its full name –- cGMP KiloLab – acknowledges compliance with good manufacturing practices and the training, validation and equipment required to maintain cGMP status.

The company also broke ground to expand its Geel, Belgium, facility. The investment will provide additional capacity to meet increasing demand for Fisher's Acros Organics line of research chemicals.

E-commerce Leadership Fisher further increased its Internet sales on fishersci.com, one of the fastest growing e-commerce businesses and the world's most comprehensive virtual marketplace for scientific supplies. In 2000, Fisher achieved tremendous growth in its various e-commerce channels, with sales climbing to $367 million from $194 million in 1998. Last year's volume represented 14.0% of all sales compared with only 8.5% of total sales in 1998.