To Our Shareholders: Page 4 of 4

During 2009 we introduced several new services, including Care360 Mobile, which enables doctors to check test results and prescribe drugs electronically from their Apple® iPhone or iPod touch®. Over the course of the year, subscriptions to our ePrescribing solution more than doubled. As we exited the year, physicians were ordering prescriptions at a rate of more than 12 million drugs a year, nearly triple the rate at the end of 2008.

Small physician practices provide the vast majority of healthcare in the U.S. We are uniquely positioned to help small physician practices embrace the benefits of electronic connectivity. Care360 is modular, designed with the needs of small-practice physicians in mind. Whether they are considering ePrescribing, mobility or our recently launched Care360 EHR (electronic health record), physicians can adopt features at their own pace, without a large up-front capital cost or having to worry about changing their office work flow.

Empowering patients to manage their health

We are also using our expertise in healthcare IT to empower patients to take control of their health and manage their personal health information. We are working with leading patient-based web sites, including Keas, Google Health, and Microsoft® HealthVault, to enable people to manage their lab results and other health information in their personal health record.

For more than five years, we have encouraged our own employees to take control of their health through our HealthyQuest employee wellness program, which provides our Blueprint for Wellness health risk assessment and incentives to adopt healthier lifestyles. We are proud that this and other initiatives have enabled us to receive the National Business Group on Health’s “Best Employers for Healthy Lifestyles” Platinum recognition and the CEO Roundtable on Cancer’s CEO Gold Standard accreditation.

Positioned for future growth

As we go to press, Congress has just passed healthcare reform. This will expand access to quality healthcare to millions and help Americans to focus more on wellness and prevention. We believe these changes are positive for the diagnostic testing industry.

We are the leader in our industry. This is a responsibility we take very seriously. Our 43,000 employees are focused on serving patients and finding new ways to improve health outcomes. Their commitment, dedication and creativity are the reasons I am confident about our future.

Our employees are also the reason we were recognized for the third straight year by Fortune Magazine as one of the World’s Most Admired Companies.

Thank you for your continued support and confidence in Quest Diagnostics.

Take care,

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Surya N. Mohapatra, Ph.D.
Chairman, Chief Executive Officer and President
Quest Diagnostics Incorporated