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<SEC-DOCUMENT>0000012208-07-000034.txt : 20071214
<SEC-HEADER>0000012208-07-000034.hdr.sgml : 20071214
<ACCEPTANCE-DATETIME>20071214170931
ACCESSION NUMBER:		0000012208-07-000034
CONFORMED SUBMISSION TYPE:	8-K/A
PUBLIC DOCUMENT COUNT:		4
CONFORMED PERIOD OF REPORT:	20071214
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20071214
DATE AS OF CHANGE:		20071214

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			BIO RAD LABORATORIES INC
		CENTRAL INDEX KEY:			0000012208
		STANDARD INDUSTRIAL CLASSIFICATION:	LABORATORY ANALYTICAL INSTRUMENTS [3826]
		IRS NUMBER:				941381833
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K/A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-07928
		FILM NUMBER:		071308039

	BUSINESS ADDRESS:	
		STREET 1:		1000 ALFRED NOBEL DR
		CITY:			HERCULES
		STATE:			CA
		ZIP:			94547
		BUSINESS PHONE:		5107247000
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K/A
<SEQUENCE>1
<FILENAME>f8ka121407.htm
<TEXT>
<!doctype html public "-//IETF//DTD HTML//EN">
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<HEAD>
<TITLE>UNITED STATES</TITLE>
<META NAME="author" CONTENT="Tom Brida">
<META NAME="date" CONTENT="12/14/2007">
</HEAD>
<BODY style="line-height:12pt; font-family:Times New Roman; font-size:10pt; color:#000000">
<DIV style="width:643.2px"><P style="margin:0px"><BR></P>
<P style="margin:0px; padding-top:4px; border-top:1px solid #7F0000"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=center><B>UNITED STATES</B></P>
<P style="margin:0px" align=center><B>SECURITIES AND EXCHANGE COMMISSION</B></P>
<P style="margin:0px" align=center><B>Washington, D.C. 20549</B></P>
<P style="margin:0px">&nbsp;</P>
<P style="line-height:21.333px; margin:0px; font-size:18.667px" align=center><B>FORM 8-K/A</B></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; padding-top:4px; border-top:1px solid #7F0000"><BR></P>
<P style="line-height:10.667px; margin:0px"><BR></P>
<P style="margin:0px" align=center><B>CURRENT REPORT</B></P>
<P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934</B></P>
<P style="margin:0px">&nbsp;</P>
<P style="line-height:normal; margin:0px" align=center><B>Date of Report: (Date of earliest event reported): December 14, 2007 &nbsp;(October 1, 2007)</B></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px">&nbsp;</P>
<P style="line-height:12px; margin:0px"><BR></P>
<P style="line-height:10.667px; margin:0px; padding-top:4px; border-top:1px solid #7F0000"><BR></P>
<P style="margin:0px"><BR></P>
<P style="line-height:21.333px; margin:0px; font-size:18.667px" align=center><B>BIO-RAD LABORATORIES, INC.</B></P>
<P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>(Exact name of registrant as specified in its charter)</B></P>
<P style="margin:0px">&nbsp;</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; padding-top:4px; border-top:1px solid #7F0000"><BR></P>
<P style="line-height:12px; margin:0px"><BR></P>
<P style="margin:0px" align=center><B>Commission File Number: 1-7928</B></P>
<P style="margin:0px; font-size:10.667px">&nbsp;</P>
<TABLE style="font-size:13.333px" cellspacing=0 align=center><TR><TD width=360></TD><TD width=7.133></TD><TD width=352.8></TD></TR>
<TR><TD width=360><P style="margin:0px; font-size:10.667px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px; font-size:10.667px">&nbsp;</P>
</TD><TD width=352.8><P style="margin:0px; font-size:10.667px">&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=360><P style="margin:0px" align=center><B>Delaware</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px; font-size:10.667px">&nbsp;</P>
</TD><TD valign=top width=352.8><P style="margin:0px" align=center><B>94-1381833</B></P>
</TD></TR>
<TR><TD valign=top width=360><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>(State or other jurisdiction of</B></P>
<P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>incorporation or organization)</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px; font-size:10.667px">&nbsp;</P>
</TD><TD valign=top width=352.8><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>(I.R.S. Employer</B></P>
<P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>Identification No.)</B></P>
</TD></TR>
</TABLE>
<P style="line-height:10.667px; margin:0px"><BR></P>
<P style="line-height:10.667px; margin:0px; font-size:10.667px">&nbsp;</P>
<P style="margin:0px" align=center><B>1000 Alfred Nobel Dr.</B></P>
<P style="margin:0px" align=center><B>Hercules, California 94547</B></P>
<P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>(Address of principal executive offices, including zip code)</B></P>
<P style="margin:0px; font-size:10.667px">&nbsp;</P>
<P style="margin:0px" align=center><B>(510) 724-7000</B></P>
<P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>(Registrant&#146;s telephone number, including area code)</B></P>
<P style="margin:0px; font-size:10.667px">&nbsp;</P>
<P style="line-height:10.667px; margin:0px"><BR></P>
<P style="line-height:10.667px; margin:0px; padding-top:4px; border-top:1px solid #7F0000"><BR></P>
<P style="line-height:10.667px; margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="line-height:13.333px; margin:0px; font-size:10.667px">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:</P>
<P style="margin:0px; font-size:10.667px">&nbsp;</P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=28.8></TD><TD width=562.733></TD></TR>
<TR><TD valign=top width=28.8><P style="line-height:13.333px; margin:0px; font-family:Wingdings; font-size:10.667px"><FONT FACE="Wingdings">&#168;</FONT></P>
</TD><TD valign=top width=562.733><P style="line-height:13.333px; margin:0px; font-size:10.667px"><FONT FACE="Times New Roman">Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</FONT></P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="margin:0px; font-size:10.667px">&nbsp;</P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=28.8></TD><TD width=565.6></TD></TR>
<TR><TD valign=top width=28.8><P style="line-height:13.333px; margin:0px; font-family:Wingdings; font-size:10.667px"><FONT FACE="Wingdings">&#168;</FONT></P>
</TD><TD valign=top width=565.6><P style="line-height:13.333px; margin:0px; font-size:10.667px"><FONT FACE="Times New Roman">Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</FONT></P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="margin:0px; font-size:10.667px">&nbsp;</P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=28.8></TD><TD width=616.267></TD></TR>
<TR><TD valign=top width=28.8><P style="line-height:13.333px; margin:0px; font-family:Wingdings; font-size:10.667px"><FONT FACE="Wingdings">&#168;</FONT></P>
</TD><TD valign=top width=616.267><P style="line-height:13.333px; margin:0px; font-size:10.667px"><FONT FACE="Times New Roman">Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</FONT></P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="margin:0px; font-size:10.667px">&nbsp;</P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=28.8></TD><TD width=615></TD></TR>
<TR><TD valign=top width=28.8><P style="line-height:13.333px; margin:0px; font-family:Wingdings; font-size:10.667px"><FONT FACE="Wingdings">&#168;</FONT></P>
</TD><TD valign=top width=615><P style="line-height:13.333px; margin:0px; font-size:10.667px"><FONT FACE="Times New Roman">Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</FONT></P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR>
<BR></P>
<P style="margin:0px; page-break-before:always"><B>Explanatory Note:</B></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">On October 1, 2007, Bio-Rad Laboratories Inc. completed its acquisition of approximately 77.7% of the registered shares, or 85.96% of the outstanding shares, of DiaMed Holding AG (DiaMed) pursuant to the Share Purchase Agreement dated May 14, 2007 between Bio-Rad and various non-U.S. private individuals and entities. &nbsp;The description of the Share Purchase Agreement does not purport to be complete and is qualified in its entirety by reference to the Share Purchase Agreement, which is filed as Exhibit 2.1 to the Company&#146;s quarterly report on Form 10-Q for the quarter ended June&nbsp;30, 2007 and incorporated by reference herein. &nbsp;DiaMed was a private Swiss company which develops, manufactures and markets a complete line of reagents and instruments used in blood typing and screening. &nbsp;&nbsp;DiaMed operated on a worldwide basis through distributors and subsidiaries except in the U.S., where its technology was licensed to a third party. &nbsp;There were no acquired assets
, employees or operations based in the United States. &nbsp;The information included within this Current Report on Form 8-K/A represents historical information of DiaMed and pro forma information giving effect to the acquisition.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">This Current Report on Form 8-K/A is being filed to set forth the following:</P>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=24></TD><TD width=24></TD><TD width=602.4></TD></TR>
<TR><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=24><P style="margin:0px">&#149;</P>
</TD><TD valign=top width=602.4><P style="margin:0px">The audited consolidated financial statements as of and for the year ended December 31, 2006 and the </P>
</TD></TR>
<TR><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=602.4><P style="margin:0px">unaudited consolidated financial statements as of June 30, 2007 and for the six month periods</P>
</TD></TR>
<TR><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=602.4><P style="margin:0px">ended June 30, 2007 and 2006 of DiaMed Holding AG are included as Exhibit 99.1 herein.</P>
</TD></TR>
<TR><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=602.4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=24><P style="margin:0px">&#149;</P>
</TD><TD valign=top width=602.4><P style="margin:0px">The unaudited pro forma condensed consolidated financial statements of Bio-Rad Laboratories, Inc. as</P>
</TD></TR>
<TR><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=602.4><P style="margin:0px">of June 30, 2007 and for the twelve and six month periods ended December 31, 2006 and June 30, 2007, </P>
</TD></TR>
<TR><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=602.4><P style="margin:0px">respectively, are included as Exhibit 99.2 herein.</P>
</TD></TR>
<TR><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=602.4><P style="font-size:2pt">&nbsp;</P></TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=83.333></TD><TD width=492.667></TD></TR>
<TR><TD valign=top width=83.333><P style="margin:0px"><B>ITEM 9.01</B></P>
</TD><TD valign=top width=492.667><P style="margin:0px"><B>Financial Statements and Exhibits</B></P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=31.533></TD><TD width=618.867></TD></TR>
<TR><TD valign=top width=31.533><P style="margin:0px">(a)</P>
</TD><TD valign=top width=618.867><P style="margin:0px">Financial Statements of Businesses Acquired.</P>
</TD></TR>
<TR><TD valign=top width=31.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=618.867><P style="margin:0px">The audited consolidated financial statements as of and for the year ended December 31, 2006 and the </P>
</TD></TR>
<TR><TD valign=top width=31.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=618.867><P style="margin:0px">unaudited consolidated financial statements as of June 30, 2007 and for the six month periods ended June 30, </P>
</TD></TR>
<TR><TD valign=top width=31.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=618.867><P style="margin:0px">2007 and 2006 of DiaMed Holding AG. </P>
</TD></TR>
<TR><TD valign=top width=31.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=618.867><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=31.533><P style="margin:0px">(b)</P>
</TD><TD valign=top width=618.867><P style="margin:0px">Pro Forma Financial Information</P>
</TD></TR>
<TR><TD valign=top width=31.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=618.867><P style="margin:0px">The unaudited pro forma condensed consolidated financial statements of Bio-Rad Laboratories, Inc. as of</P>
</TD></TR>
<TR><TD valign=top width=31.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=618.867><P style="margin:0px">June 30, 2007 and for the twelve and six month periods ended December 31, 2006 and June 30, 2007, </P>
</TD></TR>
<TR><TD valign=top width=31.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=618.867><P style="margin:0px">respectively.</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=60></TD><TD width=19.2></TD><TD width=568.8></TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=bottom width=60><P style="margin:0px"><B>Exhibit</B></P>
<P style="margin:0px"><B>Number&nbsp;</B></P>
</TD><TD valign=bottom width=19.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=568.8><P style="margin:0px"><BR></P>
<P style="margin:0px"><B>Description</B></P>
</TD></TR>
<TR><TD valign=top width=60><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=19.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=568.8><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=60><P style="margin-top:2.2px; margin-bottom:0px" align=center>23.1</P>
</TD><TD valign=bottom width=19.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=568.8><P style="margin-top:2.2px; margin-bottom:0px">Consent of Deloitte AG</P>
</TD></TR>
<TR><TD valign=top width=60><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=19.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=568.8><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=60><P style="margin-top:2.2px; margin-bottom:0px" align=center>99.1</P>
</TD><TD valign=bottom width=19.2><P style="margin-top:2.2px; margin-bottom:0px">&nbsp;</P>
</TD><TD valign=top width=568.8><P style="margin-top:2.2px; margin-bottom:0px">The audited consolidated financial statements as of and for the year ended December 31, 2006 and the</P>
</TD></TR>
<TR><TD valign=top width=60><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=19.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=568.8><P style="margin-top:2.2px; margin-bottom:0px">unaudited consolidated financial statements as of June 30, 2007 and for the six month periods ended</P>
</TD></TR>
<TR><TD valign=top width=60><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=19.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=568.8><P style="margin-top:2.2px; margin-bottom:0px">June 30, 2007 and 2006 of DiaMed Holding AG.</P>
</TD></TR>
<TR><TD valign=top width=60><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=19.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=568.8><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=60><P style="margin-top:2.2px; margin-bottom:0px" align=center>99.2</P>
</TD><TD valign=bottom width=19.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=568.8><P style="margin-top:2.2px; margin-bottom:0px">The unaudited pro forma condensed consolidated financial statements of Bio-Rad Laboratories, Inc.</P>
</TD></TR>
<TR><TD valign=top width=60><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=19.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=568.8><P style="margin-top:2.2px; margin-bottom:0px">as of June 30, 2007 and for the twelve and six month periods ended December 31, 2006 and </P>
</TD></TR>
<TR><TD valign=top width=60><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=19.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=568.8><P style="margin-top:2.2px; margin-bottom:0px">June 30, 2007, respectively.</P>
</TD></TR>
<TR><TD valign=top width=60><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=19.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=568.8><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=648 colspan=3><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=648 colspan=3><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=648 colspan=3><P style="font-size:2pt">&nbsp;</P></TD></TR>
</TABLE>
<P style="margin:0px"><BR>
<BR></P>
<P style="margin:0px; page-break-before:always"><BR>
<BR>
<BR></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=60></TD><TD width=19.2></TD><TD width=568.8></TD></TR>
<TR><TD valign=top width=648 colspan=3><P style="font-size:2pt">&nbsp;</P></TD></TR>
</TABLE>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px; font-family:Times New Roman Bold" align=center><FONT FACE="Times New Roman Bold"><B>SIGNATURES</B></FONT></P>
<P style="margin:0px"><FONT FACE="Times New Roman">&nbsp;</FONT></P>
<P style="margin:0px">Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</P>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=50.867></TD><TD width=136.333></TD><TD width=29.467></TD><TD width=29.467></TD><TD width=4></TD><TD width=253.867></TD></TR>
<TR><TD valign=top width=50.867><P style="font-size:2pt">&nbsp;</P></TD><TD width=136.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=29.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=29.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=257.867 colspan=2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=50.867><P style="font-size:2pt">&nbsp;</P></TD><TD width=136.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=29.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=29.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=257.867 colspan=2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=50.867><P style="font-size:2pt">&nbsp;</P></TD><TD width=136.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=29.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=287.333 colspan=3><P style="margin:0px">BIO-RAD LABORATORIES, INC.</P>
</TD></TR>
<TR><TD valign=top width=50.867><P style="font-size:2pt">&nbsp;</P></TD><TD width=136.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=29.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=29.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=257.867 colspan=2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=50.867><P style="margin:0px">Date:</P>
</TD><TD style="border-bottom:1px solid #000000" width=136.333><P style="margin:0px">December 14, 2007</P>
</TD><TD valign=top width=29.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=29.467><P style="margin:0px">By:</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=257.867 colspan=2><P style="margin:0px">/s/ Christine A. Tsingos</P>
</TD></TR>
<TR><TD valign=top width=50.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=136.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=29.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=29.467><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=253.867><P style="margin:0px">Christine A. Tsingos<U> </U></P>
</TD></TR>
<TR><TD valign=top width=50.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=136.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=29.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=29.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=253.867><P style="margin:0px">Vice President, Chief Financial Officer</P>
</TD></TR>
<TR><TD valign=top width=50.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=136.333><P style="margin:0px">&nbsp;</P>
</TD><TD valign=top width=29.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=29.467><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=4><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=253.867><P style="font-size:2pt">&nbsp;</P></TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<A NAME="id_11"></A><A NAME="id_12"></A><P style="margin:0px"><BR></P>
<P style="margin:0px; font-family:Times New Roman Bold" align=center><FONT FACE="Times New Roman Bold"><B>EXHIBIT INDEX</B></FONT></P>
<P style="margin:0px"><FONT FACE="Times New Roman">&nbsp;</FONT></P>
<TABLE style="font-size:13.333px" cellspacing=0 align=center><TR><TD width=52.8></TD><TD width=12.067></TD><TD width=556.733></TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=top width=52.8><P style="margin:0px"><B>Exhibit</B></P>
<P style="margin:0px"><B>Number&nbsp;</B></P>
</TD><TD valign=bottom width=12.067><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=556.733><P style="margin:0px"><BR></P>
<P style="margin:0px"><B>Description</B></P>
</TD></TR>
<TR><TD valign=top width=52.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=12.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=556.733><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=52.8><P style="margin:0px" align=center>23.1</P>
</TD><TD valign=bottom width=12.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=556.733><P style="margin:0px">Consent of Deloitte AG</P>
</TD></TR>
<TR><TD valign=top width=52.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=12.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=556.733><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=52.8><P style="margin:0px" align=center>99.1</P>
</TD><TD valign=bottom width=12.067><P style="margin:0px">&nbsp;</P>
</TD><TD valign=top width=556.733><P style="margin:0px">The audited consolidated financial statements as of and for the year ended December 31, 2006 and the </P>
</TD></TR>
<TR><TD valign=top width=52.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=12.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=556.733><P style="margin:0px">unaudited consolidated financial statements as of June 30, 2007 and for the six month periods ended</P>
</TD></TR>
<TR><TD valign=top width=52.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=12.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=556.733><P style="margin:0px">June 30, 2007 and 2006 of DiaMed Holding AG.</P>
</TD></TR>
<TR><TD valign=top width=52.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=12.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=556.733><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=52.8><P style="margin:0px" align=center>99.2</P>
</TD><TD valign=bottom width=12.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=556.733><P style="margin:0px">The unaudited pro forma condensed consolidated financial statements of Bio-Rad Laboratories, Inc.</P>
</TD></TR>
<TR><TD valign=top width=52.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=12.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=556.733><P style="margin:0px">as of June 30, 2007 and for the twelve and six months ended December 31, 2006 and June 30, 2007,</P>
</TD></TR>
<TR><TD valign=top width=52.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=12.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=556.733><P style="margin:0px">respectively.</P>
</TD></TR>
<TR><TD valign=top width=52.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=12.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=556.733><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=621.6 colspan=3><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=621.6 colspan=3><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=621.6 colspan=3><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=621.6 colspan=3><P style="font-size:2pt">&nbsp;</P></TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR>
<BR></P>
</DIV></BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-23
<SEQUENCE>2
<FILENAME>exh231.htm
<TEXT>
<!doctype html public "-//IETF//DTD HTML//EN">
<HTML>
<HEAD>
<TITLE>EXHIBIT 23</TITLE>
<META NAME="author" CONTENT="Colin Hardesty (Open)&#10;">
<META NAME="date" CONTENT="12/14/2007">
</HEAD>
<BODY style="line-height:12pt; font-family:Times New Roman; font-size:10pt; color:#000000">
<DIV style="width:576px"><P style="margin:0px" align=right><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right><B><U>Exhibit 23.1</U></B></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>CONSENT OF INDEPENDENT AUDITORS</B></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">We consent to the incorporation by reference in Registration Statements No. 333-133507, No.&nbsp;333-124187, No. 33-53335, and No. 33-53337, and No.333-144962 on Form S-8 of our report dated December 14, 2007 relating to the consolidated financial statements of DiaMed Holding AG, appearing in this Current Report on Form 8-K/A.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=247.2></TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=top width=247.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">/s/ Deloitte AG</P>
</TD></TR>
<TR><TD valign=top width=247.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">December 14, 2007</P>
</TD></TR>
<TR><TD valign=top width=247.2><P style="font-size:2pt">&nbsp;</P></TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR>
<BR></P>
</DIV></BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>3
<FILENAME>f991.htm
<TEXT>
<!doctype html public "-//IETF//DTD HTML//EN">
<HTML>
<HEAD>
<TITLE>DiaMed Holding Group</TITLE>
<META NAME="author" CONTENT="Authorized User">
<META NAME="date" CONTENT="12/14/2007">
</HEAD>
<BODY style="line-height:12pt; font-family:Times New Roman; font-size:10pt; color:#000000">
<A NAME="OLE_LINK1"></A><A NAME="Company"></A><DIV style="width:633.6px"><P style="line-height:18.667px; margin:0px; font-size:16px" align=right><B><U>Exhibit 99.1</U></B></P>
<P style="margin:0px"><BR></P>
<P style="line-height:34.667px; margin:0px; font-family:Arial; font-size:32px"><FONT FACE="Arial"><B>DiaMed Holding AG</B></FONT></P>
<P style="line-height:21.333px; margin:0px; font-family:Arial; font-size:18.667px"><B>Consolidated Financial Statements</B></P>
<P style="line-height:21.333px; margin:0px; padding-right:-44.133px; font-family:Arial; font-size:18.667px"><B>December&nbsp;31, 2006 and June 30, 2006 and 2007 (unaudited)</B></P>
<P style="margin:0px"><BR></P>
<P style="margin-top:0px; margin-bottom:13.333px"><BR>
<BR></P>
</DIV><DIV style="width:614.4px"><P style="margin-top:0px; margin-bottom:13.333px; page-break-before:always"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=628.8></TD></TR>
<TR><TD valign=top width=628.8><P style="margin-top:0px; margin-bottom:14.667px; font-family:Arial Bold; font-size:14.667px"><FONT FACE="Arial Bold"><B>DiaMed Holding AG</B></FONT></P>
</TD></TR>
<TR><TD valign=top width=628.8><P style="margin-top:0px; margin-bottom:14.667px; font-family:Arial Bold; font-size:14.667px"><B>Index to Consolidated Financial Statements and Notes</B></P>
</TD></TR>
<TR><TD valign=top width=628.8><P style="margin-top:0px; margin-bottom:14.667px; font-family:Arial Bold; font-size:14.667px"><B>December 31, 2006 and unaudited interim periods ended June 30, 2006 and 2007</B></P>
</TD></TR>
</TABLE>
<P style="margin-top:0px; margin-bottom:13.333px"><BR></P>
<P style="margin-top:0px; margin-bottom:13.333px" align=right><BR></P>
<P style="margin-top:0px; margin-bottom:13.333px; font-family:Arial" align=right><FONT FACE="Arial"><B>&nbsp;Page(s)</B></FONT></P>
<P style="margin-top:0px; margin-bottom:-16px; font-family:Arial"><B>Report of Independent Auditors</B></P>
<P style="margin-top:0px; margin-bottom:13.333px; text-indent:617.333px; font-family:Arial">1</P>
<P style="margin-top:0px; margin-bottom:13.333px; font-family:Arial"><B>Consolidated Financial Statements</B></P>
<P style="margin:0px; font-family:Arial">Consolidated Balance Sheets as of December 31, 2006 and unaudited </P>
<P style="margin-top:0px; margin-bottom:-16px; font-family:Arial">interim period as of June 30, 2007</P>
<P style="margin:0px; text-indent:617.333px; font-family:Arial">2</P>
<P style="margin-top:0px; margin-bottom:13.333px"><BR></P>
<P style="margin-top:0px; margin-bottom:-16px; font-family:Arial">Consolidated Statements of Income for the year ended December 31, 2006 and <BR>
unaudited interim periods ended June 30, 2006 and 2007</P>
<P style="margin-top:0px; margin-bottom:13.333px; text-indent:617.333px; font-family:Arial">3</P>
<P style="margin-top:0px; margin-bottom:-16px; font-family:Arial">Consolidated Statements of Shareholders&#146; Equity and Comprehensive Income for the <BR>
year ended December 31, 2006 and unaudited interim period ended June 30, 2007</P>
<P style="margin-top:0px; margin-bottom:13.333px; text-indent:617.333px; font-family:Arial">4</P>
<P style="margin-top:0px; margin-bottom:-16px; font-family:Arial">Consolidated Statements of Cash Flows for the year ended December 31, 2006 and <BR>
unaudited interim periods ended June 30, 2006 and 2007</P>
<P style="margin-top:0px; margin-bottom:13.333px; text-indent:617.333px; font-family:Arial">5</P>
<P style="margin-top:0px; margin-bottom:-16px; font-family:Arial">Notes to Consolidated Financial Statements </P>
<P style="margin-top:0px; margin-bottom:13.333px; text-indent:600.667px; font-family:Arial">6&#150;26</P>
<P style="margin:0px"><BR>
<BR></P>
<P style="margin:0px; page-break-before:always"><BR></P>
<P style="line-height:18.667px; margin-top:6.667px; margin-bottom:6.667px; font-size:16px"><FONT FACE="Times New Roman"><B>INDEPENDENT AUDITORS' REPORT</B></FONT></P>
<P style="line-height:18.667px; margin-top:6.667px; margin-bottom:6.667px; font-size:16px">To the Board of Directors of DiaMed Holding AG<BR>
Fribourg, Switzerland</P>
<P style="line-height:18.667px; margin-top:6.667px; margin-bottom:6.667px; font-size:16px">We have audited the accompanying consolidated balance sheet of DiaMed Holding AG (the &quot;Company&quot;) as of December 31, 2006, and the related consolidated statements of income, shareholders&#146; equity and comprehensive income, and cash flows for the year then ended. These financial statements are the responsibility of the Company's management.&nbsp; Our responsibility is to express an opinion on these financial statements based on our audit.</P>
<P style="line-height:18.667px; margin-top:6.667px; margin-bottom:6.667px; font-size:16px">We conducted our audit in accordance with auditing standards generally accepted in the United States of America.&nbsp; Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.&nbsp; An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting.&nbsp; Accordingly, we express no such opinion.&nbsp; An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.&nbsp; We believ
e that our audit provides a reasonable basis for our opinion.</P>
<P style="line-height:18.667px; margin-top:6.667px; margin-bottom:6.667px; font-size:16px">In our opinion, such consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2006, and the results of its operations and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America.</P>
<P style="margin:6.667px"><BR></P>
<P style="line-height:18.667px; margin-top:6.667px; margin-bottom:6.667px; font-size:16px"><B>DELOITTE AG<BR>
Zurich, Switzerland</B></P>
<P style="margin:6.667px"><BR></P>
<P style="margin:6.667px"><BR></P>
<P style="margin:6.667px"><BR></P>
<P style="line-height:18.667px; margin-top:6.667px; margin-bottom:-18.667px; font-size:16px">/s/James D. Horiguchi</P>
<P style="line-height:18.667px; margin-top:0px; margin-bottom:6.667px; text-indent:240px; font-size:16px">/s/Joshua L. Gunn</P>
<P style="line-height:18.667px; margin-top:6.667px; margin-bottom:6.667px; font-size:16px">December 14, 2007</P>
<P style="margin:0px"><BR></P>
<P style="line-height:19.333px; margin-top:0px; margin-bottom:14.667px"><BR></P>
<P style="margin:0px"><BR>
<BR></P>
</DIV><DIV style="width:633.6px"><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=center><FONT FACE="Arial">1</FONT></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
</DIV><DIV style="width:614.4px"><P style="margin:0px; page-break-before:always"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=643.2></TD></TR>
<TR><TD valign=top width=643.2><P style="line-height:17.333px; margin:0px; font-family:Arial Bold; font-size:14.667px"><FONT FACE="Arial Bold"><B>DiaMed Holding AG</B></FONT></P>
</TD></TR>
<TR><TD valign=top width=643.2><P style="line-height:17.333px; margin:0px; font-family:Arial Bold; font-size:14.667px"><B>Consolidated Balance Sheets</B></P>
</TD></TR>
<TR><TD valign=top width=643.2><P style="line-height:17.333px; margin:0px; font-family:Arial Bold; font-size:14.667px"><B>December 31, 2006 and unaudited interim period as of June 30, 2007 </B></P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=15.733></TD><TD width=15.733></TD><TD width=31.467></TD><TD width=15.733></TD><TD width=379.333></TD><TD width=93.8></TD><TD width=15.733></TD><TD width=78.333></TD></TR>
<TR><TD valign=top width=458 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=93.8><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=center><FONT FACE="Arial"><B>December 31,</B></FONT></P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=78.333><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=center><B>June 30,</B></P>
</TD></TR>
<TR><TD valign=top width=458 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=93.8><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=center><B>2006</B></P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=78.333><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=center><B>2007</B></P>
</TD></TR>
<TR><TD valign=top width=458 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=93.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=78.333><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=center>(unaudited)</P>
</TD></TR>
<TR><TD valign=top width=62.933 colspan=3><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px"><B>Assets</B></P>
</TD><TD valign=top width=395.067 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=93.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=78.333><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=458 colspan=5><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px">Current assets</P>
</TD><TD valign=top width=93.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=78.333><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=442.267 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px">Cash and cash equivalents</P>
</TD><TD valign=top width=93.8><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>15,605&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=78.333><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>26,122&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=442.267 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px">Accounts receivable, net of allowance of 4'307 and</P>
</TD><TD valign=top width=93.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=78.333><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=426.533 colspan=3><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px">4'228 at December 31, 2006 and June 30, 2007, respectively</P>
</TD><TD valign=top width=93.8><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>52,513&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=78.333><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>53,632&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=442.267 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px">Finance lease receivable</P>
</TD><TD valign=top width=93.8><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>7,793&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=78.333><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>8,873&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=442.267 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px">Inventories, net (Note 4)</P>
</TD><TD valign=top width=93.8><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>67,192&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=78.333><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>67,223&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=442.267 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px">Current deferred &nbsp;tax assets (Note 10)</P>
</TD><TD valign=top width=93.8><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>1,043&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=78.333><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>1,475&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=442.267 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px">Tax receivable</P>
</TD><TD valign=top width=93.8><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>2,681&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=78.333><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>2,804&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=442.267 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px">Other short term receivables</P>
</TD><TD valign=top width=93.8><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>4,865&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=78.333><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>5,293&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=442.267 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px">Prepaid expenses and other current assets</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=93.8><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>4,985&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=78.333><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>4,904&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=78.667 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=379.333><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px">Total current assets</P>
</TD><TD valign=top width=93.8><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>156,677&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=78.333><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>170,326&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=458 colspan=5><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px">Property and equipment, net (Note 5)</P>
</TD><TD valign=top width=93.8><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>74,014&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=78.333><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>78,518&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=458 colspan=5><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px">Deferred tax assets (Note 10)</P>
</TD><TD valign=top width=93.8><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>3,271&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=78.333><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>4,288&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=458 colspan=5><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px">Other assets</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=93.8><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>8,352&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=78.333><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>8,183&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=78.667 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=379.333><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px">Total assets</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=93.8><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>242,314&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=78.333><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>261,315&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=458 colspan=5><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px"><B>Liabilities and Shareholders&#146; Equity</B></P>
</TD><TD valign=top width=93.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=78.333><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=458 colspan=5><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px">Current liabilities</P>
</TD><TD valign=top width=93.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=78.333><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=442.267 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px">Bank advances</P>
</TD><TD valign=top width=93.8><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>3,939&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=78.333><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>2,384&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=442.267 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px">Accounts payable</P>
</TD><TD valign=top width=93.8><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>12,982&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=78.333><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>18,693&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=442.267 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px">Accrued expenses and other current liabilities (Note 6)</P>
</TD><TD valign=top width=93.8><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>32,716&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=78.333><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>27,842&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=442.267 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px">Deferred revenue</P>
</TD><TD valign=top width=93.8><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>287&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=78.333><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>747&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=442.267 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px">Capital lease obligations, current maturities (Note 8)</P>
</TD><TD valign=top width=93.8><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>10,072&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=78.333><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>11,216&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=442.267 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px">Current deferred tax liabilities (Note 10)</P>
</TD><TD valign=top width=93.8><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>1,453&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=78.333><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>1,360&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=442.267 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px">Lines of credit</P>
</TD><TD valign=top width=93.8><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>19,443&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=78.333><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>25,211&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=442.267 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px">Related party payables (Note 15)</P>
</TD><TD valign=top width=93.8><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>7,376&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=78.333><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>3,317&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=442.267 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px">Commitments and contingencies (Note 14)</P>
</TD><TD valign=top width=93.8><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>1,400&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=78.333><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>1,400</P>
</TD></TR>
<TR><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=442.267 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px">Other current liabilities</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=93.8><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>1,677&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=78.333><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>1,522&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=78.667 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=379.333><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px">Total current liabilities</P>
</TD><TD valign=top width=93.8><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>91,345&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=78.333><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>93,692&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=458 colspan=5><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px">Capital lease obligations, net of current maturities (Note 8)</P>
</TD><TD valign=top width=93.8><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>20,406&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=78.333><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>18,626&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=458 colspan=5><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px">Deferred revenue, net of current portion</P>
</TD><TD valign=top width=93.8><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>183&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=78.333><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>235&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=458 colspan=5><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px">Deferred tax liabilities (Note 10)</P>
</TD><TD valign=top width=93.8><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>5,289&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=78.333><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>5,515&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=458 colspan=5><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px">Accrued pension liabilities</P>
</TD><TD valign=top width=93.8><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>6,195&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=78.333><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>8,341&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=458 colspan=5><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px">Commitments and contingencies (Note 14)</P>
</TD><TD valign=top width=93.8><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>9,100&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=78.333><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>10,900&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=458 colspan=5><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px">Other long-term liabilities</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=93.8><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>499&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=78.333><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>785&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=78.667 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=379.333><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px">Total liabilities</P>
</TD><TD valign=top width=93.8><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>133,017&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=78.333><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>138,094&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=458 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=93.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=78.333><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=458 colspan=5><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px">Minority interests</P>
</TD><TD valign=top width=93.8><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>12,270&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=78.333><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>13,447&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=458 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=93.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=78.333><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=458 colspan=5><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px">Shareholders&#146; equity</P>
</TD><TD valign=top width=93.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=78.333><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=442.267 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px">Share capital, CHF 100 par value; 17'000 authorized and issued shares and</P>
</TD><TD valign=top width=93.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=78.333><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=31.467 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=426.533 colspan=3><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px">15'361 outstanding shares at December 31, 2006 and June 30, 2007</P>
</TD><TD valign=top width=93.8><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>1,700&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=78.333><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>1,700&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=442.267 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px">Additional paid in capital</P>
</TD><TD valign=top width=93.8><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>850&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=78.333><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>850&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=442.267 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px">Retained earnings</P>
</TD><TD valign=top width=93.8><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>103,420&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=78.333><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>115,410&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=442.267 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px">Treasury shares (Note 9)</P>
</TD><TD valign=top width=93.8><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>(8,334)</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=78.333><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>(8,334)</P>
</TD></TR>
<TR><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=442.267 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px">Accumulated other comprehensive (loss) </P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=93.8><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>(609)</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=78.333><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>148&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=78.667 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=379.333><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px">Total shareholders&#146; equity</P>
</TD><TD valign=top width=93.8><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>97,027&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=78.333><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>109,774&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=78.667 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=379.333><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px">Total liabilities and shareholders&#146; equity</P>
</TD><TD style="border-bottom:2.667px double #000000" valign=top width=93.8><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>242,314&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:2.667px double #000000" valign=top width=78.333><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>261,315&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=78.667 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=379.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=93.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=78.333><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=645.867 colspan=8><P style="margin:0px; font-family:Arial">The accompanying notes are an integral part of these consolidated financial statements.</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR>
<BR></P>
</DIV><DIV style="width:633.6px"><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=center>2</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
</DIV><DIV style="width:614.4px"><P style="margin:0px; page-break-before:always"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=643.2></TD></TR>
<TR><TD valign=top width=643.2><P style="line-height:17.333px; margin:0px; font-family:Arial Bold; font-size:14.667px"><FONT FACE="Arial Bold"><B>DiaMed Holding AG</B></FONT></P>
</TD></TR>
<TR><TD valign=top width=643.2><P style="line-height:17.333px; margin:0px; font-family:Arial Bold; font-size:14.667px"><B>Consolidated Statements of Income</B></P>
</TD></TR>
<TR><TD valign=top width=643.2><P style="line-height:17.333px; margin:0px; font-family:Arial Bold; font-size:14.667px"><B>Year Ended December 31, 2006 and unaudited interim periods ended June 30, 2006 and</B></P>
</TD></TR>
<TR><TD valign=top width=643.2><P style="line-height:17.333px; margin:0px; font-family:Arial Bold; font-size:14.667px"><B>2007 </B></P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=15.733></TD><TD width=15.733></TD><TD width=47.2></TD><TD width=273.667></TD><TD width=104.333></TD><TD width=15.733></TD><TD width=83.467></TD><TD width=15.733></TD><TD width=87.2></TD></TR>
<TR><TD valign=bottom width=352.333 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=104.333><P style="margin:0px; font-family:Arial" align=center><FONT FACE="Arial"><B>Year Ended</B></FONT></P>
</TD><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=186.4 colspan=3><P style="margin:0px; font-family:Arial" align=center><B>Six-month Period Ended</B></P>
</TD></TR>
<TR><TD valign=bottom width=352.333 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=104.333><P style="margin:0px; font-family:Arial" align=center><B>December 31,</B></P>
</TD><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=83.467><P style="margin:0px; font-family:Arial" align=center><B>June 30,</B></P>
</TD><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=87.2><P style="margin:0px; font-family:Arial" align=center><B>June 30,</B></P>
</TD></TR>
<TR><TD valign=bottom width=352.333 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=104.333><P style="margin:0px; font-family:Arial" align=center><B>2006</B></P>
</TD><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=83.467><P style="margin:0px; font-family:Arial" align=center><B>2006</B></P>
</TD><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=87.2><P style="margin:0px; font-family:Arial" align=center><B>2007</B></P>
</TD></TR>
<TR><TD valign=bottom width=352.333 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=104.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=186.4 colspan=3><P style="margin:0px; font-family:Arial" align=center>(unaudited)</P>
</TD></TR>
<TR><TD valign=bottom width=78.667 colspan=3><P style="margin:0px; font-family:Arial">Net sales</P>
</TD><A NAME="RANGE!G5"></A><TD valign=bottom width=273.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=104.333><P style="margin:0px; font-family:Arial" align=right>256,337&nbsp;</P>
</TD><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=83.467><P style="margin:0px; font-family:Arial" align=right>129,007&nbsp;</P>
</TD><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=87.2><P style="margin:0px; font-family:Arial" align=right>133,272&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=352.333 colspan=4><P style="margin:0px; font-family:Arial">Cost of sales</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=104.333><P style="margin:0px; font-family:Arial" align=right>124,425&nbsp;</P>
</TD><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=83.467><P style="margin:0px; font-family:Arial" align=right>58,377&nbsp;</P>
</TD><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=87.2><P style="margin:0px; font-family:Arial" align=right>54,230&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=31.467 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=320.867 colspan=2><P style="margin:0px; font-family:Arial">Gross profit</P>
</TD><TD valign=bottom width=104.333><P style="margin:0px; font-family:Arial" align=right>131,912&nbsp;</P>
</TD><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=83.467><P style="margin:0px; font-family:Arial" align=right>70,630&nbsp;</P>
</TD><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=87.2><P style="margin:0px; font-family:Arial" align=right>79,042&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=352.333 colspan=4><P style="margin:0px; font-family:Arial"><B>Operating expenses</B></P>
</TD><TD valign=bottom width=104.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=83.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=87.2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=352.333 colspan=4><P style="margin:0px; font-family:Arial">Selling, general and administrative expense</P>
</TD><TD valign=bottom width=104.333><P style="margin:0px; font-family:Arial" align=right>86,872&nbsp;</P>
</TD><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=83.467><P style="margin:0px; font-family:Arial" align=right>41,279&nbsp;</P>
</TD><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=87.2><P style="margin:0px; font-family:Arial" align=right>51,298&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=352.333 colspan=4><P style="margin:0px; font-family:Arial">Product research and development</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=104.333><P style="margin:0px; font-family:Arial" align=right>8,970&nbsp;</P>
</TD><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=83.467><P style="margin:0px; font-family:Arial" align=right>5,708&nbsp;</P>
</TD><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=87.2><P style="margin:0px; font-family:Arial" align=right>6,251&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=31.467 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=320.867 colspan=2><P style="margin:0px; font-family:Arial">Total operating expenses</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=104.333><P style="margin:0px; font-family:Arial" align=right>95,842&nbsp;</P>
</TD><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=83.467><P style="margin:0px; font-family:Arial" align=right>46,987&nbsp;</P>
</TD><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=87.2><P style="margin:0px; font-family:Arial" align=right>57,549&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=31.467 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=320.867 colspan=2><P style="margin:0px; font-family:Arial">Income from operations</P>
</TD><TD valign=bottom width=104.333><P style="margin:0px; font-family:Arial" align=right>36,070&nbsp;</P>
</TD><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=83.467><P style="margin:0px; font-family:Arial" align=right>23,643&nbsp;</P>
</TD><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=87.2><P style="margin:0px; font-family:Arial" align=right>21,493&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=352.333 colspan=4><P style="margin:0px; font-family:Arial">Other income (expense)</P>
</TD><TD valign=bottom width=104.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=83.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=87.2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=336.6 colspan=3><P style="margin:0px; font-family:Arial">Interest income</P>
</TD><TD valign=bottom width=104.333><P style="margin:0px; font-family:Arial" align=right>770&nbsp;</P>
</TD><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=83.467><P style="margin:0px; font-family:Arial" align=right>124&nbsp;</P>
</TD><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=87.2><P style="margin:0px; font-family:Arial" align=right>282&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=336.6 colspan=3><P style="margin:0px; font-family:Arial">Interest expense</P>
</TD><TD valign=bottom width=104.333><P style="margin:0px; font-family:Arial" align=right>(2,216)</P>
</TD><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=83.467><P style="margin:0px; font-family:Arial" align=right>(764)</P>
</TD><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=87.2><P style="margin:0px; font-family:Arial" align=right>(990)</P>
</TD></TR>
<TR><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=336.6 colspan=3><P style="margin:0px; font-family:Arial">Other income (expense)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=104.333><P style="margin:0px; font-family:Arial" align=right>988&nbsp;</P>
</TD><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=83.467><P style="margin:0px; font-family:Arial" align=right>(901)</P>
</TD><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=87.2><P style="margin:0px; font-family:Arial" align=right>576&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=31.467 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=320.867 colspan=2><P style="margin:0px; font-family:Arial">Total other income (expense)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=104.333><P style="margin:0px; font-family:Arial" align=right>(458)</P>
</TD><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=83.467><P style="margin:0px; font-family:Arial" align=right>(1,541)</P>
</TD><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=87.2><P style="margin:0px; font-family:Arial" align=right>(132)</P>
</TD></TR>
<TR><TD valign=bottom width=352.333 colspan=4><P style="margin:0px; font-family:Arial">Income before income taxes and minority interests</P>
</TD><TD valign=bottom width=104.333><P style="margin:0px; font-family:Arial" align=right>35,612&nbsp;</P>
</TD><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=83.467><P style="margin:0px; font-family:Arial" align=right>22,102&nbsp;</P>
</TD><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=87.2><P style="margin:0px; font-family:Arial" align=right>21,361&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=352.333 colspan=4><P style="margin:0px; font-family:Arial">Provision for income taxes (Note 10)</P>
</TD><TD valign=bottom width=104.333><P style="margin:0px; font-family:Arial" align=right>9,940&nbsp;</P>
</TD><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=83.467><P style="margin:0px; font-family:Arial" align=right>6,568&nbsp;</P>
</TD><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=87.2><P style="margin:0px; font-family:Arial" align=right>6,736&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=352.333 colspan=4><P style="margin:0px; font-family:Arial">Minority interests in earnings of consolidated subsidiaries</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=104.333><P style="margin:0px; font-family:Arial" align=right>3,127&nbsp;</P>
</TD><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=83.467><P style="margin:0px; font-family:Arial" align=right>1,845&nbsp;</P>
</TD><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=87.2><P style="margin:0px; font-family:Arial" align=right>1,885&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=320.867 colspan=2><P style="margin:0px; font-family:Arial">Net income</P>
</TD><TD style="border-bottom:2.667px double #000000" valign=bottom width=104.333><P style="margin:0px; font-family:Arial" align=right>22,545&nbsp;</P>
</TD><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:2.667px double #000000" valign=bottom width=83.467><P style="margin:0px; font-family:Arial" align=right>13,689&nbsp;</P>
</TD><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:2.667px double #000000" valign=bottom width=87.2><P style="margin:0px; font-family:Arial" align=right>12,740&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=352.333 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=104.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=83.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=87.2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=352.333 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=104.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=83.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=87.2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=658.8 colspan=9><P style="margin:0px; font-family:Arial">The accompanying notes are an integral part of these consolidated financial statements.</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR>
<BR></P>
</DIV><DIV style="width:633.6px"><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=center>3</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
</DIV><DIV style="width:614.4px"><P style="margin:0px; page-break-before:always"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=12></TD><TD width=36></TD><TD width=11.4></TD><TD width=348.6></TD><TD width=36></TD><TD width=15.733></TD><TD width=44.267></TD><TD width=15.733></TD><TD width=44.267></TD><TD width=15.733></TD><TD width=20.267></TD><TD width=24></TD><TD width=36></TD><TD width=12></TD><TD width=12></TD><TD width=24></TD></TR>
<TR><TD valign=bottom width=12><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=696 colspan=15><P style="line-height:17.333px; margin:0px; font-family:Arial Bold; font-size:14.667px"><FONT FACE="Arial Bold">DiaMed Holding AG</FONT></P>
</TD></TR>
<TR><TD valign=top width=12><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=696 colspan=15><P style="line-height:17.333px; margin:0px; font-family:Arial Bold; font-size:14.667px">Consolidated Statements of Shareholders&#146; Equity and Comprehensive Income for the</P>
</TD></TR>
<TR><TD valign=top width=12><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=696 colspan=15><P style="line-height:17.333px; margin:0px; font-family:Arial Bold; font-size:14.667px">Year Ended December 31, 2006 and unaudited interim period ended June 30, 2007 </P>
</TD></TR>
<TR><TD valign=top width=12><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=696 colspan=15><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=12><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=432 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=104.267 colspan=3><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px"><FONT FACE="Arial"><B>&nbsp;December 31, </B></FONT></P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=128.267 colspan=6><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=center><B>&nbsp;June 30, </B></P>
</TD></TR>
<TR><TD valign=top width=12><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=432 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=104.267 colspan=3><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=center><B>2006</B></P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=128.267 colspan=6><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=center><B>&nbsp;2007 </B></P>
</TD></TR>
<TR><TD valign=top width=12><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=432 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=104.267 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=128.267 colspan=6><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=center>&nbsp;(unaudited) </P>
</TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=top width=12><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=432 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=104.267 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=128.267 colspan=6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=12><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=432 colspan=4><P style="margin:0px; font-family:Arial"><B>Share capital, CHF 100 par value</B></P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=104.267 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=128.267 colspan=6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=12><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=47.4 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=384.6 colspan=2><P style="margin:0px; font-family:Arial">Balance at beginning of period</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=104.267 colspan=3><P style="margin:0px; font-family:Arial" align=right>1,700 </P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=128.267 colspan=6><P style="margin:0px; font-family:Arial" align=right>1,700&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=12><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=47.4 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=384.6 colspan=2><P style="margin:0px; font-family:Arial">Issuance of common stock</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=104.267 colspan=3><P style="margin:0px; font-family:Arial" align=right>&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=128.267 colspan=6><P style="margin:0px; font-family:Arial" align=right>&nbsp;-&nbsp;</P>
</TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=top width=12><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=47.4 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=384.6 colspan=2><P style="margin:0px; font-family:Arial"><B>Balance at end of period</B></P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=104.267 colspan=3><P style="margin:0px; font-family:Arial" align=right>1,700 </P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=128.267 colspan=6><P style="margin:0px; font-family:Arial" align=right>1,700&nbsp;</P>
</TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=top width=12><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=47.4 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=384.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=104.267 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=128.267 colspan=6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=12><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=432 colspan=4><P style="margin:0px; font-family:Arial"><B>Additional paid in capital</B></P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=104.267 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=128.267 colspan=6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=12><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=47.4 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=384.6 colspan=2><P style="margin:0px; font-family:Arial">Balance at beginning of period</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=104.267 colspan=3><P style="margin:0px; font-family:Arial" align=right>850 </P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=128.267 colspan=6><P style="margin:0px; font-family:Arial" align=right>850&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=12><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=47.4 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=384.6 colspan=2><P style="margin:0px; font-family:Arial">Issuance of common stock</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=104.267 colspan=3><P style="margin:0px; font-family:Arial" align=right>&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=128.267 colspan=6><P style="margin:0px; font-family:Arial" align=right>&nbsp;-&nbsp;</P>
</TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=top width=12><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=47.4 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=384.6 colspan=2><P style="margin:0px; font-family:Arial"><B>Balance at end of period</B></P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=104.267 colspan=3><P style="margin:0px; font-family:Arial" align=right>850 </P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=128.267 colspan=6><P style="margin:0px; font-family:Arial" align=right>850&nbsp;</P>
</TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=top width=12><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=47.4 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=384.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=104.267 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=128.267 colspan=6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=12><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=432 colspan=4><P style="margin:0px; font-family:Arial"><B>Retained earnings</B></P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=104.267 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=128.267 colspan=6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=12><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=47.4 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=384.6 colspan=2><P style="margin:0px; font-family:Arial">Balance at beginning of period</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=104.267 colspan=3><P style="margin:0px; font-family:Arial" align=right>81,351 </P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=128.267 colspan=6><P style="margin:0px; font-family:Arial" align=right>103,420&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=12><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=47.4 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=384.6 colspan=2><P style="margin:0px; font-family:Arial">Dividends paid</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=104.267 colspan=3><P style="margin:0px; font-family:Arial" align=right>(476)</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=128.267 colspan=6><P style="margin:0px; font-family:Arial" align=right>(750)</P>
</TD></TR>
<TR><TD valign=top width=12><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=47.4 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=384.6 colspan=2><P style="margin:0px; font-family:Arial">Net income</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=104.267 colspan=3><P style="margin:0px; font-family:Arial" align=right>22,545 </P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=128.267 colspan=6><P style="margin:0px; font-family:Arial" align=right>12,740&nbsp;</P>
</TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=top width=12><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=47.4 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=384.6 colspan=2><P style="margin:0px; font-family:Arial"><B>Balance at end of period</B></P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=104.267 colspan=3><P style="margin:0px; font-family:Arial" align=right>103,420 </P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=128.267 colspan=6><P style="margin:0px; font-family:Arial" align=right>115,410&nbsp;</P>
</TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=top width=12><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=47.4 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=384.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=104.267 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=128.267 colspan=6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=12><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=432 colspan=4><P style="margin:0px; font-family:Arial"><B>Treasury Shares</B></P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=104.267 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=128.267 colspan=6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=12><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=47.4 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=384.6 colspan=2><P style="margin:0px; font-family:Arial">Balance at beginning of period</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=104.267 colspan=3><P style="margin:0px; font-family:Arial" align=right>(526)</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=128.267 colspan=6><P style="margin:0px; font-family:Arial" align=right>(8,334)</P>
</TD></TR>
<TR><TD valign=top width=12><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=47.4 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=384.6 colspan=2><P style="margin:0px; font-family:Arial">Purchases or treasury shares</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=104.267 colspan=3><P style="margin:0px; font-family:Arial" align=right>(7,808)</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=128.267 colspan=6><P style="margin:0px; font-family:Arial" align=right>&nbsp;&nbsp;-&nbsp;</P>
</TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=top width=12><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=47.4 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=384.6 colspan=2><P style="margin:0px; font-family:Arial"><B>Balance at end of period</B></P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=104.267 colspan=3><P style="margin:0px; font-family:Arial" align=right>(8,334)</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=128.267 colspan=6><P style="margin:0px; font-family:Arial" align=right>(8,334)</P>
</TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=top width=12><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=47.4 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=384.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=104.267 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=128.267 colspan=6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=12><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=432 colspan=4><P style="margin:0px; font-family:Arial"><B>Accumulated other comprehensive income (loss):</B></P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=104.267 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=128.267 colspan=6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=12><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=47.4 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=384.6 colspan=2><P style="margin:0px; font-family:Arial">Balance at beginning of period</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=104.267 colspan=3><P style="margin:0px; font-family:Arial" align=right>(735)</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=128.267 colspan=6><P style="margin:0px; font-family:Arial" align=right>(609)</P>
</TD></TR>
<TR><TD valign=top width=12><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=47.4 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=384.6 colspan=2><P style="margin:0px; font-family:Arial">Other comprehensive income (loss)</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=104.267 colspan=3><P style="margin:0px; font-family:Arial" align=right>126 </P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=128.267 colspan=6><P style="margin:0px; font-family:Arial" align=right>461&nbsp;</P>
</TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=top width=12><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=47.4 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=384.6 colspan=2><P style="margin:0px; font-family:Arial"><B>Balance at end of period</B></P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=104.267 colspan=3><P style="margin:0px; font-family:Arial" align=right>(609)</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=128.267 colspan=6><P style="margin:0px; font-family:Arial" align=right>148</P>
</TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=top width=12><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=47.4 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=384.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=104.267 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=128.267 colspan=6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=12><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=432 colspan=4><P style="margin:0px; font-family:Arial"><B>Total shareholders' equity</B></P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:2.667px double #000000" valign=top width=104.267 colspan=3><P style="margin:0px; font-family:Arial" align=right>97,027</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:2.667px double #000000" valign=top width=128.267 colspan=6><P style="margin:0px; font-family:Arial" align=right>109,774&nbsp;</P>
</TD></TR>
<TR><TD style="border-bottom:2.667px double #000000" valign=top width=12><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=47.4 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=384.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=104.267 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=128.267 colspan=6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=12><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=432 colspan=4><P style="margin:0px; font-family:Arial"><B>Comprehensive income:</B></P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=104.267 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=128.267 colspan=6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=12><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=47.4 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=384.6 colspan=2><P style="margin:0px; font-family:Arial">Net income</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=104.267 colspan=3><P style="margin:0px; font-family:Arial" align=right>22,545 </P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=128.267 colspan=6><P style="margin:0px; font-family:Arial" align=right>12,740&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=12><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=47.4 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=384.6 colspan=2><P style="margin:0px; font-family:Arial">Unrecognized amounts resulting from defined </P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=104.267 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=128.267 colspan=6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=12><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=47.4 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=384.6 colspan=2><P style="margin:0px; text-indent:9.6px; font-family:Arial">benefit plans (Note 12)</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=104.267 colspan=3><P style="margin:0px; font-family:Arial" align=right>(302)</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=128.267 colspan=6><P style="margin:0px; font-family:Arial" align=right>(1,784)</P>
</TD></TR>
<TR><TD valign=top width=12><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=47.4 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=384.6 colspan=2><P style="margin:0px; font-family:Arial">Currency translation adjustments</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=104.267 colspan=3><P style="margin:0px; font-family:Arial" align=right>176 </P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=128.267 colspan=6><P style="margin:0px; font-family:Arial" align=right>1,323</P>
</TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=top width=12><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=47.4 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=384.6 colspan=2><P style="margin:0px; font-family:Arial"><B>Total comprehensive income</B></P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:2.667px double #000000" valign=top width=104.267 colspan=3><P style="margin:0px; font-family:Arial" align=right>22,419 </P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:2.667px double #000000" valign=top width=128.267 colspan=6><P style="margin:0px; font-family:Arial" align=right>12,279</P>
</TD></TR>
<TR><TD style="border-bottom:2.667px double #000000" valign=top width=12><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=47.4 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=384.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=104.267 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=128.267 colspan=6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=12><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=696 colspan=15><P style="margin:0px; font-family:Arial">Accumulated Other Comprehensive Income balance primarily consists of foreign currency translation</P>
</TD></TR>
<TR><TD valign=top width=12><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=696 colspan=15><P style="margin:0px; font-family:Arial">adjustments which has no tax effect and differences in unrecognized amounts resulting from defined</P>
</TD></TR>
<TR><TD valign=top width=12><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=696 colspan=15><P style="margin:0px; font-family:Arial">benefit plans which has been tax effected above.</P>
</TD></TR>
<TR><TD valign=top width=12><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=696 colspan=15><P style="margin-top:6.667px; margin-bottom:0px; font-family:Arial">The accompanying notes are an integral part of these consolidated financial statements.</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR>
<BR></P>
</DIV><DIV style="width:633.6px"><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=center>4</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
</DIV><DIV style="width:614.4px"><P style="margin:0px; page-break-before:always"><BR>
<BR></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=12></TD><TD width=36></TD><TD width=11.4></TD><TD width=348.6></TD><TD width=36></TD><TD width=15.733></TD><TD width=44.267></TD><TD width=15.733></TD><TD width=44.267></TD><TD width=15.733></TD><TD width=20.267></TD><TD width=24></TD><TD width=36></TD><TD width=12></TD><TD width=12></TD><TD width=24></TD></TR>
<TR><TD valign=top width=708 colspan=16><P style="margin:0px; font-family:Arial Bold"><FONT FACE="Arial Bold">DiaMed Holding AG</FONT></P>
</TD></TR>
<TR><TD valign=top width=708 colspan=16><P style="margin:0px; font-family:Arial Bold">Consolidated Statements of Cash Flows</P>
</TD></TR>
<TR><TD valign=top width=708 colspan=16><P style="margin:0px; font-family:Arial Bold">Year Ended December 31, 2006 and six month periods ended June 30, 2006 and</P>
</TD></TR>
<TR><TD valign=top width=708 colspan=16><P style="margin:0px; font-family:Arial Bold">2007 (unaudited)</P>
</TD></TR>
<TR><TD valign=top width=408 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=96 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=188.267 colspan=8><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=408 colspan=4><P style="margin:0px; font-family:Arial"><FONT FACE="Arial">(</FONT><I>amounts in CHF thousands)</I></P>
</TD><TD valign=top width=96 colspan=3><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=center><B>Year Ended</B></P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=188.267 colspan=8><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=center><B>Six-month Period Ended</B></P>
</TD></TR>
<TR><TD valign=top width=408 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=96 colspan=3><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=center><B>December 31,</B></P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=80.267 colspan=3><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=center><B>June 30,</B></P>
</TD><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=84 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=center><B>June 30,</B></P>
</TD></TR>
<TR><TD valign=top width=408 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=96 colspan=3><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=center><B>2006</B></P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=80.267 colspan=3><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=center><B>2006</B></P>
</TD><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=84 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=center><B>2007</B></P>
</TD></TR>
<TR><TD valign=top width=408 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=96 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=80.267 colspan=3><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=center>(unaudited)</P>
</TD><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=84 colspan=4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=408 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px"><B>Cash flows from operating activities</B></P>
</TD><TD valign=top width=96 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=80.267 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=84 colspan=4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=408 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px">Net Income</P>
</TD><TD valign=top width=96 colspan=3><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>22,545&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=80.267 colspan=3><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>13,689</P>
</TD><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=84 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>12,740&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=708 colspan=16><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=408 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial Bold; font-size:12px"><FONT FACE="Arial Bold"><B>Adjustments to reconcile net income to net cash provided</B></FONT></P>
</TD><TD valign=top width=96 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=80.267 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=84 colspan=4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=408 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial Bold; font-size:12px"><B>by operating activities:</B></P>
</TD><TD valign=top width=96 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=80.267 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=84 colspan=4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=408 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px"><FONT FACE="Arial">Unrealized loss on pensions</FONT></P>
</TD><TD valign=top width=96 colspan=3><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>403&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=80.267 colspan=3><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>381&nbsp;</P>
</TD><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=84 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>2381&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=408 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px">Unrealized loss/(gain) from foreign currency translation adjustments</P>
</TD><TD valign=top width=96 colspan=3><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>7&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=80.267 colspan=3><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>1&nbsp;</P>
</TD><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=84 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>10&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=408 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px">Depreciation and Amortization</P>
</TD><TD valign=top width=96 colspan=3><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>7,202&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=80.267 colspan=3><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>3,087&nbsp;</P>
</TD><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=84 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>5,183&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=408 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px">Minority interests</P>
</TD><TD valign=top width=96 colspan=3><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>3,127&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=80.267 colspan=3><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>1,845&nbsp;</P>
</TD><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=84 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>1,885&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=408 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial Bold; font-size:12px"><FONT FACE="Arial Bold"><B>Changes in operating assets and liabilities</B></FONT></P>
</TD><TD valign=top width=96 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=80.267 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=84 colspan=4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=408 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px"><FONT FACE="Arial">(Increase)Decrease in accounts receivables</FONT></P>
</TD><TD valign=top width=96 colspan=3><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>(7,324)</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=80.267 colspan=3><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>(7,290)</P>
</TD><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=84 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>(3,831)</P>
</TD></TR>
<TR><TD valign=top width=408 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px">(Increase)Decrease in finance lease receivable</P>
</TD><TD valign=top width=96 colspan=3><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>(3,231)</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=80.267 colspan=3><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>(2,983)</P>
</TD><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=84 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>(1,006)</P>
</TD></TR>
<TR><TD valign=top width=408 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px">(Increase)Decrease in other short term receivables</P>
</TD><TD valign=top width=96 colspan=3><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>(1,157)</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=80.267 colspan=3><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>(2,326)</P>
</TD><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=84 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>(462)</P>
</TD></TR>
<TR><TD valign=top width=408 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px">(Increase)Decrease in inventories</P>
</TD><TD valign=top width=96 colspan=3><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>(4,039&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=80.267 colspan=3><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>(3,086)</P>
</TD><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=84 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>627&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=408 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px">(Increase)Decrease in tax receivables</P>
</TD><TD valign=top width=96 colspan=3><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>(2,441)</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=80.267 colspan=3><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>(1,229)</P>
</TD><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=84 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>(105)</P>
</TD></TR>
<TR><TD valign=top width=408 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px">(Increase)Decrease in prepaid expenses and other current assets</P>
</TD><TD valign=top width=96 colspan=3><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>(4,672)</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=80.267 colspan=3><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>(5,895)</P>
</TD><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=84 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>291&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=408 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px">(Increase)Decrease in other assets</P>
</TD><TD valign=top width=96 colspan=3><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>(1,014)</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=80.267 colspan=3><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>1,292&nbsp;</P>
</TD><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=84 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>1,391&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=408 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px">Increase(Decrease) in accounts payable</P>
</TD><TD valign=top width=96 colspan=3><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>(4,613)</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=80.267 colspan=3><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>6,046&nbsp;</P>
</TD><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=84 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>4,900&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=408 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px">Increase(Decrease) in accrued expenses and other current liabilities</P>
</TD><TD valign=top width=96 colspan=3><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>7,337&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=80.267 colspan=3><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>(2,880)</P>
</TD><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=84 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>(2,046)</P>
</TD></TR>
<TR><TD valign=top width=408 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px">Increase(Decrease) in deferred revenue</P>
</TD><TD valign=top width=96 colspan=3><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>(436)</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=80.267 colspan=3><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>(608)</P>
</TD><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=84 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>478&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=408 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px">Increase(Decrease) in other long term liabilities</P>
</TD><TD valign=top width=96 colspan=3><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>1,274&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=80.267 colspan=3><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>677&nbsp;</P>
</TD><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=84 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>(27)</P>
</TD></TR>
<TR><TD valign=top width=408 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px">Increase(Decrease) in deferred income taxes</P>
</TD><TD valign=top width=96 colspan=3><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>(1,567)</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=80.267 colspan=3><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>(752)</P>
</TD><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=84 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>2,333&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=408 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px">Increase(Decrease) in related party payables</P>
</TD><TD valign=top width=96 colspan=3><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>9,296&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=80.267 colspan=3><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>8,370&nbsp;</P>
</TD><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=84 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>(4,059)</P>
</TD></TR>
<TR><TD valign=top width=408 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px">Increase(Decrease) in other current liabilities</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=96 colspan=3><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>(3,717)</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=80.267 colspan=3><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>(3,685)</P>
</TD><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=84 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>(2,568)</P>
</TD></TR>
<TR><TD valign=top width=408 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px"><B>Net cash provided by operating activities</B></P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=96 colspan=3><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>16,980&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=80.267 colspan=3><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>4,654&nbsp;</P>
</TD><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=84 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>18,115&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=708 colspan=16><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=408 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px"><B>Cash flows from investing activities</B></P>
</TD><TD valign=top width=96 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=80.267 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=84 colspan=4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=408 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px">Cash used for acquisitions, net</P>
</TD><TD valign=top width=96 colspan=3><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>(156)</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=80.267 colspan=3><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>-&nbsp;</P>
</TD><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=84 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>(2,573)</P>
</TD></TR>
<TR><TD valign=top width=408 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px">Purchase of investment securities</P>
</TD><TD valign=top width=96 colspan=3><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>(3)</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=80.267 colspan=3><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>(1,398)</P>
</TD><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=84 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>(70)</P>
</TD></TR>
<TR><TD valign=top width=408 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px">Purchase of property and equipment</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=96 colspan=3><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>(9,407)</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=80.267 colspan=3><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>(6,962)</P>
</TD><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=84 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>(7,381)</P>
</TD></TR>
<TR><TD valign=top width=408 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px"><B>Net cash used in investing activities</B></P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=96 colspan=3><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>(9,566)</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=80.267 colspan=3><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>(8,360)</P>
</TD><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=84 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>(10,024)</P>
</TD></TR>
<TR><TD valign=top width=708 colspan=16><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=408 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px"><B>Cash flows from financing activities</B></P>
</TD><TD valign=top width=96 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=80.267 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=84 colspan=4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=408 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px">Increase(Decrease) in bank advances</P>
</TD><TD valign=top width=96 colspan=3><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>3,224&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=80.267 colspan=3><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>172&nbsp;</P>
</TD><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=84 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>(1,647)</P>
</TD></TR>
<TR><TD valign=top width=408 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px">Borrowings of debt and capital lease obligations</P>
</TD><TD valign=top width=96 colspan=3><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>9,959&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=80.267 colspan=3><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>6,586&nbsp;</P>
</TD><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=84 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>4,168&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=408 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px">Repayment of debt and capital lease obligations</P>
</TD><TD valign=top width=96 colspan=3><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>(8,711)</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=80.267 colspan=3><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>(3,926)</P>
</TD><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=84 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>(5,022)</P>
</TD></TR>
<TR><TD valign=top width=408 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px">Borrowings on lines of credit</P>
</TD><TD valign=top width=96 colspan=3><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>19,041&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=80.267 colspan=3><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>9,140&nbsp;</P>
</TD><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=84 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>24,214&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=408 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px">Payments on lines of credit</P>
</TD><TD valign=top width=96 colspan=3><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>(26,050)</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=80.267 colspan=3><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>(13,700)</P>
</TD><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=84 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>(18,450)</P>
</TD></TR>
<TR><TD valign=top width=408 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px">Repurchase of common stock</P>
</TD><TD valign=top width=96 colspan=3><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>(7,309)</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=80.267 colspan=3><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>--&nbsp;</P>
</TD><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=84 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>-&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=408 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px">Payment of dividends</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=96 colspan=3><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>(933)</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=80.267 colspan=3><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>--&nbsp;</P>
</TD><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=84 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>(1,470)</P>
</TD></TR>
<TR><TD valign=top width=408 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px"><B>Net cash used in financing activities</B></P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=96 colspan=3><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>(10,779)</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=80.267 colspan=3><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>(1,728)</P>
</TD><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=84 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>1,793&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=708 colspan=16><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=408 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px">Effect of exchange rate on cash</P>
</TD><TD valign=top width=96 colspan=3><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>272&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=80.267 colspan=3><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>54&nbsp;</P>
</TD><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=84 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>633&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=708 colspan=16><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=408 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px">Net change in cash and cash equivalents</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=96 colspan=3><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>(3,093)</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=80.267 colspan=3><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>(5,380)</P>
</TD><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=84 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>10,517&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=708 colspan=16><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=408 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px">Cash and cash equivalents at beginning of period</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=96 colspan=3><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>18,698&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=80.267 colspan=3><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>18,698&nbsp;</P>
</TD><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=84 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>15,605&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=408 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px">Cash and cash equivalents at end of period</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=96 colspan=3><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>15,605&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=80.267 colspan=3><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>13,318&nbsp;</P>
</TD><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=84 colspan=4><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=right>26,122&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=708 colspan=16><P style="margin-top:6.667px; margin-bottom:0px; font-family:Arial">The accompanying notes are an integral part of these consolidated financial statements.</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR>
<BR></P>
</DIV><DIV style="width:633.6px"><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=center>5</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
</DIV><DIV style="width:614.4px"><P style="margin:0px; page-break-before:always"><BR>
<BR></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=12></TD><TD width=36></TD><TD width=11.4></TD><TD width=348.6></TD><TD width=36></TD><TD width=15.733></TD><TD width=44.267></TD><TD width=15.733></TD><TD width=44.267></TD><TD width=15.733></TD><TD width=20.267></TD><TD width=24></TD><TD width=36></TD><TD width=12></TD><TD width=12></TD><TD width=24></TD></TR>
<TR><TD valign=top width=12><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=696 colspan=15><P style="line-height:17.333px; margin:0px; font-family:Arial; font-size:14.667px"><B>DiaMed Holding AG</B></P>
<P style="line-height:17.333px; margin:0px; font-family:Arial; font-size:14.667px"><B>Notes to Consolidated Financial Statements</B></P>
<P style="line-height:17.333px; margin:0px; font-family:Arial; font-size:14.667px"><B>Year Ended December 31, 2006 for the unaudited interim periods ended June 30, 2006</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-family:Arial; font-size:14.667px"><B>and June 30, 2007 </B></P>
</TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=top width=12><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=36><P style="margin-top:0px; margin-bottom:13.333px; font-family:Arial"><B>1.</B></P>
</TD><TD valign=top width=660 colspan=14><P style="margin-top:0px; margin-bottom:13.333px; font-family:Arial"><B>Nature of Business</B></P>
</TD></TR>
</TABLE>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:38.4px; font-family:Arial">The DiaMed Holding AG (the &#147;Company&#148;) was founded in 1977 and develops, manufactures, and markets a complete line of reagents and instruments used in blood typing aimed at providing laboratories with ease of use, safety and reliability. &nbsp;The Company has developed liquid and stable enzyme reagents, additive LISS reagents, coagulation reagents in liquid, ready to use form, as well as DiaCent Cellwashers. &nbsp;The Company focuses on medical devices and services related to blood transfusion, ID Micro Typing and gel tests for serology laboratories.</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:38.4px; font-family:Arial">The Company is situated in Cressier sur Morat, near Fribourg, Switzerland. &nbsp;The Company has approximately 800 employees in Switzerland, France, Germany, Brazil, China, Egypt and other locations throughout the world.</P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=36.667></TD><TD width=623.333></TD></TR>
<TR><TD valign=top width=36.667><P style="margin-top:0px; margin-bottom:13.333px; font-family:Arial"><B>2.</B></P>
</TD><TD valign=top width=623.333><P style="margin-top:0px; margin-bottom:13.333px; font-family:Arial"><B>Summary of Significant Accounting Policies</B></P>
</TD></TR>
</TABLE>
<P style="margin-top:0px; margin-bottom:13.333px"><BR></P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:38.4px; font-family:Arial">Significant accounting policies applied by the Company in the preparation of its financial statements, in accordance with accounting principles generally accepted in the United States of America, are as follows:</P>
<P style="margin:0px; padding-left:38.4px; font-family:Arial"><B>Consolidation Policy</B></P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:38.4px; font-family:Arial">The consolidated financial statements include the accounts of the Company, subsidiaries in which a controlling interest is maintained and variable interest entities for which DiaMed is the primary beneficiary after elimination of intercompany balances and transactions. &nbsp;For those consolidated subsidiaries in which the Company&#146;s ownership is less than 100 percent, the outside shareholder&#146;s interests are shown as Minority interests.</P>
<P style="margin:0px; padding-left:38.4px; font-family:Arial"><B>Use of Estimates</B></P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:38.4px; font-family:Arial">The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.</P>
<P style="margin:0px; padding-left:38.4px; font-family:Arial"><B>Concentration of Credit Risk</B></P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:38.4px; font-family:Arial">Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents and trade accounts receivable. &nbsp;The Company places its cash, cash equivalents and short-term investments with high quality financial institutions. &nbsp;Cash and cash equivalents were CHF 15.6 million and CHF 26.1million at December&nbsp;31, 2006 and June 30, 2007.</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:38.4px; font-family:Arial">Concentrations of credit risk with respect to accounts receivable are limited due to the large number of geographically diverse customers which make up the Company&#146;s customer base, thus spreading credit risk. &nbsp;At December&nbsp;31, 2006 and June 30, 2007, no single group or customer represents more than 10% of total accounts receivable. &nbsp;At December&nbsp;31, 2006 and June 30, 2007, the Company&#146;s accounts receivable balance of CHF 52.5 million and CHF 53.6 million was comprised of 54% and 53%, respectively, of foreign origin receivables, predominantly European. &nbsp;Some European countries require longer payment terms as a part of doing business. &nbsp;This may subject the Company to a higher risk of uncollectibility. &nbsp;This risk is evaluated when the allowance </P>
<P style="margin-top:0px; margin-bottom:13.333px"><BR>
<BR></P>
</DIV><DIV style="width:633.6px"><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=center>6</P>
<P style="margin:0px"><BR></P>
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</DIV><DIV style="width:614.4px"><P style="margin-top:0px; margin-bottom:13.333px; padding-left:38.4px; font-family:Arial; page-break-before:always">for doubtful accounts is determined. &nbsp;The Company generally does not require collateral from its customers. &nbsp;No individual customer accounted for more than 10% of sales during any of the periods presented.</P>
<P style="margin:0px; padding-left:38.4px; font-family:Arial"><B>Cash and Cash Equivalents</B></P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:38.4px; font-family:Arial">Cash and cash equivalents consist of cash and highly liquid investments with original maturities of three months or less, which are readily convertible into cash. Cash equivalents are stated at cost, which approximates fair market value.</P>
<P style="margin:0px; padding-left:38.4px; font-family:Arial"><B>Inventories</B></P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:38.4px; font-family:Arial">Inventories include reagents and reagent materials as well as reagent equipment. &nbsp;Inventories are stated at the lower of cost (determined using standard cost which approximates weighted average cost) or market (net realizable value). &nbsp;Cost includes material, labor and manufacturing overhead. &nbsp;The Company monitors inventory on hand and records provisions for obsolete and/or excess inventory based upon technology changes, competition, customer demand, product shelf life and manufacturing quality. &nbsp;In accordance with SAB Topic 5, when inventory is written-down to reflect changes in value at fiscal period end, this creates a new cost basis from which the Company can not subsequently mark-up the value based upon changes in the underlying facts and circumstances.</P>
<P style="margin:0px; padding-left:38.4px; font-family:Arial"><B>Intangible assets</B></P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:38.4px; font-family:Arial">Intangible assets, which are recorded in other assets in the consolidated balance sheets, consist of customer lists and relationships. &nbsp;These customer related intangible assets acquired as part of acquisitions are recognized at estimated fair value and are amortized, on a straight-line basis, over their estimated economic life of 10 years. &nbsp;&nbsp;</P>
<P style="margin:0px; padding-left:38.4px; font-family:Arial"><B>Fair Value of Financial Instruments</B></P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:38.4px; font-family:Arial">The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents, accounts receivable, deferred revenue, accrued expenses, accounts payable and bank advances approximate their fair values. &nbsp;</P>
<P style="margin:0px; padding-left:38.4px; font-family:Arial"><B>Property, Plant and Equipment</B></P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:38.4px; font-family:Arial">Property, plant and equipment, including capital leases, are stated at cost less accumulated depreciation. &nbsp;Expenditures for replacements are capitalized, and the replaced items are retired. &nbsp;Normal maintenance and repairs are charged to the income statement. &nbsp;Major maintenance and repair activities that significantly extend the useful life of the asset are capitalized. &nbsp;When property and equipment are retired, sold, or otherwise disposed of, the asset&#146;s carrying amount and related accumulated depreciation are removed from the accounts and any gain or loss is included in operations. &nbsp;Depreciation is computed using the straight-line method over the estimated lives of the related assets as follows:</P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=280.8></TD><TD width=319.2></TD></TR>
<TR><TD valign=top width=280.8><P style="line-height:18.667px; margin:0px; font-size:16px"><FONT FACE="Times New Roman">Buildings</FONT></P>
</TD><TD valign=top width=319.2><P style="line-height:18.667px; margin:0px; font-size:16px">20-40 years</P>
</TD></TR>
<TR><TD valign=top width=280.8><P style="line-height:18.667px; margin:0px; font-size:16px">Machinery and equipment</P>
</TD><TD valign=top width=319.2><P style="line-height:18.667px; margin:0px; font-size:16px">3-10 years</P>
</TD></TR>
<TR><TD valign=top width=280.8><P style="line-height:18.667px; margin:0px; font-size:16px">Furniture and fixtures</P>
</TD><TD valign=top width=319.2><P style="line-height:18.667px; margin:0px; font-size:16px">6-10 years</P>
</TD></TR>
<TR><TD valign=top width=280.8><P style="line-height:18.667px; margin:0px; font-size:16px">Capital leases and leasehold improvements</P>
</TD><TD valign=top width=319.2><P style="line-height:18.667px; margin:0px; font-size:16px">Over the shorter of the useful life of the asset or the lease term</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="margin:0px; padding-left:38.4px; font-family:Arial"><FONT FACE="Arial"><B>Foreign Currency Translation</B></FONT></P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:38.4px; font-family:Arial">The functional currency of the Company is Swiss Francs. &nbsp;The financial statements of foreign subsidiaries have been translated into Swiss Francs in accordance with SFAS No.&nbsp;52, <I>Foreign Currency Translation</I>. &nbsp;Balance sheet accounts of international subsidiaries are translated at the current exchange rate as of the end of the accounting period. Income statement items are translated at average exchange rates. The resulting translation adjustment is recorded as a separate component of shareholders&#146; equity.</P>
<P style="margin-top:0px; margin-bottom:13.333px"><BR>
<BR></P>
</DIV><DIV style="width:633.6px"><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=center>7</P>
<P style="margin:0px"><BR></P>
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</DIV><DIV style="width:614.4px"><P style="margin-top:0px; margin-bottom:13.333px; padding-left:38.4px; font-family:Arial; page-break-before:always">Foreign currency transaction gains and losses are included in other income (expense) in the consolidated statements of income as part of other income. Transaction gains and losses result primarily from fluctuations in foreign currency exchange rates from transactions denominated in a currency other than the functional currency of the company or subsidiary who is the party to the transaction.</P>
<P style="margin:0px; padding-left:38.4px; font-family:Arial"><B>Revenue Recognition</B></P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:38.4px; font-family:Arial">The Company recognizes revenue in accordance with SEC Staff Accounting Bulletin Topic 13 &#147;Revenue Recognition&#148; &nbsp;&#147;Topic 13,&#148; which requires that the following four basic criteria have been met in order to recognize revenue:&nbsp; (1)&nbsp;persuasive evidence of an arrangement exists; (2)&nbsp;delivery has occurred or services rendered; (3)&nbsp;the fee is fixed or determinable; and (4)&nbsp;collectibility is reasonably assured. &nbsp;Sales discounts, rebates and returns are recorded as a reduction of revenue. &nbsp;Provisions for rebates, product returns and discounts to customers are provided for as reductions to revenue in the same period as the related sales are recorded. &nbsp;The Company monitors and tracks the amount of sales deductions based on historical experience to estimate the amount of reduction to revenue. The Company&#146;s main sources of revenue and the recognition policies are a
s follows:</P>
<P style="margin:0px; padding-left:38.4px; text-indent:28.8px; font-family:Arial"><B><I>Reagent Sales</I></B></P>
<P style="line-height:18.667px; margin:0px; padding-left:67.2px; font-size:16px"><FONT FACE="Times New Roman">Revenue from the sale of reagents to end users is recognized upon delivery to the customers&#146; premises when both title and risk of loss transfer to the customer, unless there are specific contractual terms to the contrary. &nbsp;Reagent Agreements are a diagnostic industry sales method that provides use of an instrument if the customer exclusively purchases the Company&#146;s reagents to use on that instrument. &nbsp;We have evaluated the Reagent Agreements and account for the contracts under the terms of the guidance set forth in EITF 00-21, &#147;</FONT><I>Accounting for Revenue arrangements with Multiple Deliverables</I>&#148;. &nbsp;All revenues that we earn under our Reagent Agreements are recognized when the reagent has been delivered to the customer. &nbsp;Revenue from the sale of reagents to distributors is recognized FOB customs clearance when both title and risk of loss transfer to the 
customer.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; padding-left:38.4px; text-indent:28.8px; font-family:Arial"><FONT FACE="Arial"><B><I>Instrument Sales</I></B></FONT></P>
<P style="margin:0px; padding-left:67.2px; font-family:Arial">Under our Reagent Agreements our customers obtain our instruments under one of the following methods: &nbsp;</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; padding-left:67.2px; text-indent:33.6px; font-family:Arial"><B><I>Cash Sales</I></B></P>
<P style="margin:0px; padding-left:100.8px; font-family:Arial">Revenue from the sale of instruments for cash is generally recognized upon completion of the four basic criteria of Topic 13.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; padding-left:72px; text-indent:28.8px; font-family:Arial"><B><I>Leasing</I></B></P>
<P style="line-height:18.667px; margin:0px; padding-left:100.8px; font-size:16px"><FONT FACE="Times New Roman">EITF 00-21 requires the application of higher-level literature in determining separate units of accounting and allocating arrangement consideration. &nbsp;Revenue from leasing arrangements of the Company&#146;s medical instruments to customers are sales-type leases in accordance with FASB No. 13 </FONT><I>Accounting for Leases </I>and is recognized over the term of the leasing agreement. &nbsp;</P>
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</DIV><DIV style="width:633.6px"><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=center><FONT FACE="Arial">8</FONT></P>
<P style="margin:0px"><BR></P>
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</DIV><DIV style="width:614.4px"><P style="margin:0px; padding-left:72px; text-indent:28.8px; font-family:Arial; page-break-before:always"><B><I>Sale Leaseback Transactions</I></B></P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:100.8px; font-family:Arial">In certain circumstances, the Company enters into a sales leaseback arrangement with a financial institution. &nbsp;The Company classifies these arrangements as capital leases. &nbsp;The Company then sub-leases the equipment to distributors who in-turn sub-leases the equipment to third-party customers. &nbsp;These leases with the financial institution have a term of between two and five years. &nbsp;The sub-leases have a term of one month longer than the lease with the financial institution. &nbsp;In each case, the lessee obtains title to the instrument once the lease term is over. &nbsp;The Company accounts for the sale and leaseback with the financial institution as capital leases. &nbsp;The Company accounts for the sub-leases with distributors as sales-type leases as discussed above. &nbsp;</P>
<P style="margin:0px; padding-left:38.4px; font-family:Arial"><B>Shipping and Handling Charges and Sales Tax</B></P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:38.4px; font-family:Arial">The<I> </I>amounts billed to customers for shipping and handling of orders are classified as revenue and reported in the statements of income as net sales. &nbsp;The cost of handling customer orders and the cost of shipments are reported as cost of sales. &nbsp;Sales taxes invoiced to customers and payable to government agencies are recorded on a net basis.</P>
<P style="margin:0px; padding-left:38.4px; font-family:Arial"><B>Trade Accounts Receivable and Allowance for Doubtful Accounts</B></P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:38.4px; font-family:Arial">Trade receivables at December&nbsp;31, 2006 and June 30, 2007 totaling CHF 52.5 million and CHF 53.6 million, respectively, are net of allowances for doubtful accounts of CHF 4.3 million and CHF 4.2 million, respectively. &nbsp;We maintain an allowance for doubtful accounts for estimated losses resulting from the inability of our customers to make required payments. The amount of the allowance is determined by analyzing known uncollectible accounts, aged receivables, economic conditions in the customers&#146; country or industry, historical losses and our customers&#146; credit-worthiness. </P>
<P style="margin:0px; padding-left:38.4px; font-family:Arial"><B>Research and Development</B></P>
<P style="line-height:18.667px; margin-top:0px; margin-bottom:16px; padding-left:38.4px; font-size:16px"><FONT FACE="Times New Roman">Internal research and development costs are expensed as incurred. Third-party research and development costs are expensed when the contracted work has been performed. Purchased in-process research and development costs are expensed at the time of purchase.</FONT></P>
<P style="margin:0px; padding-left:38.4px; font-family:Arial"><FONT FACE="Arial"><B>Loss Contingencies</B></FONT></P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:38.4px; font-family:Arial">Certain conditions may exist as of the date the financial statements are issued that may result in a loss to the Company, but which will only be resolved when one or more future events occur or fail to occur. &nbsp;The Company&#146;s management and its legal counsel assess such contingent liabilities, and such assessment inherently involves an exercise of judgment. &nbsp;In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company&#146;s legal counsel evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein.</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:38.4px; font-family:Arial">If the assessment of a contingency indicates that it is probable that a loss is likely to occur and the amount of the liability can be reasonably estimated, then the estimated liability is accrued in the Company&#146;s financial statements. &nbsp;If the assessment indicates that a potentially loss contingency is not probable, but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable, is disclosed.</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:38.4px; font-family:Arial">Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the nature of the guarantee would be disclosed. &nbsp;Legal costs relating to loss contingencies are expensed as incurred.</P>
<P style="margin-top:0px; margin-bottom:13.333px"><BR>
<BR></P>
</DIV><DIV style="width:633.6px"><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=center>9</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
</DIV><DIV style="width:614.4px"><P style="margin:0px; padding-left:38.4px; font-family:Arial; page-break-before:always"><B>Warranty </B></P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:38.4px; font-family:Arial">We warrant certain equipment against defects in design, materials and workmanship, generally for a period of one year. Upon shipment of that equipment, we establish, as part of cost of goods sold, a provision for the expected costs of such warranty based on historical experience, specific warranty terms and customer feedback. Warranty expenses were CHF 0.8 million, CHF 0.4 million and CHF 0.8 million for the year ended December&nbsp;31, 2006 and the six month periods ended June 30, 2006 and 2007, respectively.</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:38.4px; font-family:Arial">We also provide warranties on our reagent blood typing cards, however, past experience indicates the actual costs of providing this warranty are inconsequential and are expensed as incurred. &nbsp;During the periods presented such costs were not material.</P>
<P style="margin:0px; padding-left:38.4px; font-family:Arial"><B>Variable Interest Entities (VIEs)</B></P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:38.4px; font-family:Arial">The Company consolidates VIEs where DiaMed is considered the primary beneficiary. &nbsp;At December 31, 2006, the assets, liabilities and operations of these entities are not material to the consolidated financial statements of the Company.</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:38.4px; font-family:Arial">The Company is also involved with other entities that are VIEs for which the Company is not currently the primary beneficiary. &nbsp;Future events may require these VIEs to be consolidated if the Company becomes the primary beneficiary. &nbsp;At December 31, 2006, the assets and liabilities of the other VIEs are immaterial to the consolidated financial statements of the Company.</P>
<P style="margin:0px; padding-left:38.4px; font-family:Arial">The financial statements exclude one potential variable interest entity where the primary beneficiary could not be determined and the financial statements were not made available. The entity is located in Tunisia and is both a supplier to DiaMed and distributor of DiaMed products. The entity is a privately owned business organized under the laws of Tunisia. Under the current agreement, DiaMed has not guaranteed any indebtedness, subsidized any losses or received any residual profit from this entity. DiaMed and the Tunisian supplier have historically not been subject to the reporting requirements of accounting principles generally accepted in the United States of America and the contractual arrangements do not require that DiaMed receive financial information of the entity. &nbsp;Therefore, it is not possible for the Company to determine whether the entity is a variable interest entity or whether the Company is the primary beneficiary despite repea
ted attempts and exhaustive efforts by management to obtain this information. However, as such financial information is not available, we have not accounted for any variable interest relationship in the DiaMed consolidated financial statements. Annually, DiaMed has purchased services and materials in the amount of approximately CHF 3 million. As discussed more fully in Note 14, the Company has committed to purchase at least CHF 3.0 million in product from this entity during 2007. During 2006, the Company purchased services and materials in the amount of approximately CHF 3.0 million.</P>
<P style="margin-top:0px; margin-bottom:13.333px"><BR></P>
<P style="margin:0px; padding-left:38.4px; font-family:Arial"><B>Pension Fund Commitments</B></P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:38.4px; font-family:Arial">The expense and liability relating to the Company&#146;s defined benefit plan are determined on an actuarial basis using the projected unit credit method, which reflects service rendered by employees to the date of valuation and incorporates assumptions concerning employees projected salaries and is calculated and recorded according to FASB Statement No. 158, <I>Employers&#146; Accounting for Defined Benefit Pension and Other Postretirement Plans an amendment of FASB Statements 87, 88, 106 and 132 (R). </I>&nbsp;</P>
<P style="margin:0px; padding-left:38.4px; font-family:Arial"><B>Impairment of Long-Lived Assets</B></P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:38.4px; font-family:Arial">The Company evaluates the carrying value of long-lived assets to be held and used when events or changes in circumstances indicate the carrying value may not be recoverable. &nbsp;The Company performs a recoverability test by comparing the expected undiscounted future cash flows to be derived from an asset or asset group with its carrying amount. &nbsp;If the asset or asset group fails the recoverability test, an impairment loss is calculated as the excess of the carrying amount over the </P>
<P style="margin-top:0px; margin-bottom:13.333px"><BR>
<BR></P>
</DIV><DIV style="width:633.6px"><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=center>10</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
</DIV><DIV style="width:614.4px"><P style="margin-top:0px; margin-bottom:13.333px; padding-left:38.4px; font-family:Arial; page-break-before:always">fair value, which is calculated by reference to the expected discounted cash flows of the asset or asset group.</P>
<P style="margin:0px; padding-left:38.4px; font-family:Arial"><B>License Fees</B></P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:38.4px; font-family:Arial">The Company records revenue earned from licensing arrangements when earned and expense from amounts due to other parties under similar license arrangements when incurred. &nbsp;Revenue from these arrangements is recorded as a component in net sales and expenses are included as part of cost of sales in the accompanying consolidated statements of income.</P>
<P style="margin:0px; padding-left:38.4px; font-family:Arial"><B>Income Taxes</B></P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:38.4px; font-family:Arial">We account for income taxes under the asset and liability method, which recognizes deferred tax assets and liabilities for the expected future tax consequences of temporary differences between carrying amounts and tax basis of assets and liabilities (see Note 10).</P>
<P style="margin:0px; padding-left:38.4px; font-family:Arial"><B>Adoption of New Financial Accounting Standards</B></P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:38.4px; font-family:Arial">The Company adopted the provisions of Financial Accounting Standards Board (FASB) Interpretation No. 48, <I>Accounting for Uncertainty in Income Taxes</I>, on January 1, 2007. &nbsp;</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:38.4px; font-family:Arial">Based on our review to date, no significant uncertain tax positions requiring recognition in our financial statements have come to our attention. &nbsp;The evaluation was performed for the open tax years that remain subject to examination in the major tax jurisdictions as of June 30, 2007 and is still ongoing. &nbsp;</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:38.4px; font-family:Arial">The Company accounts for interest and penalties related to uncertain tax positions as part of its provision for income taxes. &nbsp;The following table summarizes the open tax years for the major tax jurisdictions that are subject to examination by tax authorities as of June 30, 2007:</P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=168></TD><TD width=15.733></TD><TD width=140.267></TD></TR>
<TR><TD valign=top width=168><P style="margin-top:0px; margin-bottom:6.667px; font-family:Arial">Brazil</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=140.267><P style="margin-top:0px; margin-bottom:6.667px; font-family:Arial">2002 &#150; 2006</P>
</TD></TR>
<TR><TD valign=top width=168><P style="margin-top:0px; margin-bottom:6.667px; font-family:Arial">France</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=140.267><P style="margin-top:0px; margin-bottom:6.667px; font-family:Arial">2004 &#150; 2006</P>
</TD></TR>
<TR><TD valign=top width=168><P style="margin-top:0px; margin-bottom:6.667px; font-family:Arial">Germany</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=140.267><P style="margin-top:0px; margin-bottom:6.667px; font-family:Arial">2005 &#150; 2006</P>
</TD></TR>
<TR><TD valign=top width=168><P style="margin-top:0px; margin-bottom:6.667px; font-family:Arial">Switzerland</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=140.267><P style="margin-top:0px; margin-bottom:6.667px; font-family:Arial">2006</P>
</TD></TR>
</TABLE>
<P style="margin-top:0px; margin-bottom:13.333px"><BR></P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:38.4px; font-family:Arial">Based on our evaluation of these major tax jurisdictions, we have not identified any material unrecognized tax benefits that are expected to significantly increase or decrease within 12 months of the reporting date.</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:38.4px; font-family:Arial">In May 2005, the FASB issued FASB Statement No. 154 <I>Accounting changes and error corrections as a replacement of APB Opinion No. 20 Accounting changes</I> and FASB Statement No. 3 <I>Reporting Accounting Changes in Interim Financial Statements</I>, which has to be applied for financial years beginning on or after December 15, 2005. It requires entities to recognize changes in accounting principles retrospectively, instead of including the effect in net income of the period as was prescribed by APB Opinion No. 20. The Company has applied the standard as of January 1, 2006; adoption of this standard had no impact on the Company&#146;s results of operations, cash flows or financial position.</P>
<P style="margin:0px; padding-left:38.4px; font-family:Arial"><B>New Financial Accounting Standards not yet applied</B></P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:38.4px; font-family:Arial">In September 2006, the FASB issued FASB Statement No. 157 (FAS 157), <I>Fair Value Measurements</I>. This statement defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurements. The statement is effective in the fiscal first quarter of 2008 and the Company will adopt the statement at that time. &nbsp;The Company believes that the adoption of FAS 157 will not have a material effect on its results of operations, cash flows or financial position.</P>
<P style="margin-top:0px; margin-bottom:13.333px"><BR>
<BR></P>
</DIV><DIV style="width:633.6px"><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=center>11</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
</DIV><DIV style="width:614.4px"><P style="margin-top:0px; margin-bottom:13.333px; padding-left:38.4px; font-family:Arial; page-break-before:always">In February 2007, the FASB issued FASB Statement No 159 (FAS 159), <I>The Fair Value Option for Financial Assets and Financial Liabilities Including an Amendment of FASB Statement No. 115</I> , which permits entities to account for most financial instruments at fair value rather than under other applicable generally accepted accounting principles. &nbsp;The accounting results in the instrument being marked to fair value every reporting period with the gain/loss from a change in fair value recorded in the income statement. &nbsp;FAS&nbsp;159 is effective as of the beginning of an entity&#146;s first fiscal year that begins after November 15, 2007. &nbsp;We are in the process of evaluating the impact of the adoption of SFAS 159 on the results of our operations and financial condition.</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:38.4px; font-family:Arial">In December 2007, the FASB issued FASB Statement No. 141 (revised 2007), <I>Business Combinations</I><B><I> </I></B>(FAS 141(R)) and No. 160, <I>Noncontrolling Interests in Consolidated Financial Statements, an amendment of ARB No. 51 </I>(FAS 160). &nbsp;FAS 141(R) and FAS 160 are effective for fiscal years beginning on or after December 15, 2008. &nbsp;FAS 141(R) will be applied prospectively. FAS 160 requires retroactive adoption of the presentation and disclosure requirements for existing minority interests. &nbsp;All other requirements of FAS 160 shall be applied prospectively. &nbsp;The Company has not yet evaluated the impact that adoption of FAS 141(R) or FAS 160 will have on the results of operations, cash flows or financial position.</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:38.4px; font-family:Arial">In September 2006, the SEC issued Staff Accounting Bulletin (SAB) 108, <I>Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in the Current Year Financial Statements</I>. SAB 108 puts forward a single quantification framework, the dual approach, to be used by all public companies in the quantification of identified misstatements. The dual approach requires consideration of the impact of misstatements on both the income statement (&#147;the rollover method&#148;) and the balance sheet (&#147;the iron-curtain method&#148;). There was no impact on the Company&#146;s consolidated financial statements as a result of the adoption of SAB 108 as of December 31, 2006.</P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=36.667></TD><TD width=623.333></TD></TR>
<TR><TD valign=top width=36.667><P style="margin-top:0px; margin-bottom:13.333px; font-family:Arial"><B>3.</B></P>
</TD><TD valign=top width=623.333><P style="margin-top:0px; margin-bottom:13.333px; font-family:Arial"><B>Acquisition </B></P>
</TD></TR>
</TABLE>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:38.4px; font-family:Arial">On January 1, 2007, the Company acquired 100% of the outstanding shares of Centro Labs SAS (&#147;CLE&#148;) in exchange for cash consideration of approximately CHF 2.4 million and the assumption of liabilities of CHF 0.2 million. &nbsp;The results of operations are included in the results of operations of the period ended June 30, 2007 for the full six month period as the acquisition closed on January 1, 2007. &nbsp;There were no contingent payment arrangements included as part of the acquisition of CLE.</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:38.4px; font-family:Arial">Prior to the date of acquisition, this entity was owned by a shareholder and employee of the Company. &nbsp;During 2006 purchases from CLE by the Company approximated CHF 7.7 million, the majority of these costs have been included in cost of sales in the consolidated statements of income. &nbsp;As of December 31, 2006 there was approximately CHF 0.9 million included in accounts payable that was due to CLE as of that date.</P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=36.667></TD><TD width=623.333></TD></TR>
<TR><TD valign=top width=36.667><P style="margin-top:0px; margin-bottom:13.333px; font-family:Arial"><B>4.</B></P>
</TD><TD valign=top width=623.333><P style="margin-top:0px; margin-bottom:13.333px; font-family:Arial"><B>Inventory </B></P>
</TD></TR>
</TABLE>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:38.4px; font-family:Arial">Inventories are stated at the lower of cost (determined using standard cost, which approximates weighted average cost) or market (net realizable value):</P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=300></TD><TD width=104.867></TD><TD width=15.733></TD><TD width=96></TD></TR>
<TR><TD valign=top width=300><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=104.867><P style="margin:0px; font-family:Arial" align=center>December 31,</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=96><P style="margin:0px; font-family:Arial" align=center>June 30,</P>
</TD></TR>
<TR><TD valign=top width=300><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=104.867><P style="margin:0px; font-family:Arial" align=center>2006</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=96><P style="margin:0px; font-family:Arial" align=center>2007</P>
</TD></TR>
<TR><TD valign=top width=300><P style="margin:0px; font-family:Arial"><I>(in CHF thousands)</I></P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=104.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=96><P style="margin:0px; font-family:Arial" align=center>(unaudited)</P>
</TD></TR>
<TR><TD valign=top width=300><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=104.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=96><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=300><P style="margin:0px; font-family:Arial">Raw materials and supplies</P>
</TD><TD valign=top width=104.867><P style="margin:0px; font-family:Arial" align=right>25,308&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=96><P style="margin:0px; font-family:Arial" align=right>24,739&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=300><P style="margin:0px; font-family:Arial">Work in process</P>
</TD><TD valign=top width=104.867><P style="margin:0px; font-family:Arial" align=right>22,913&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=96><P style="margin:0px; font-family:Arial" align=right>23,747&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=300><P style="margin:0px; font-family:Arial">Finished goods</P>
</TD><TD valign=top width=104.867><P style="margin:0px; font-family:Arial" align=right>18,971&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=96><P style="margin:0px; font-family:Arial" align=right>18,737&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=300><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:2.667px double #000000" valign=top width=104.867><P style="margin:0px; font-family:Arial" align=right>67,192&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:2.667px double #000000" valign=top width=96><P style="margin:0px; font-family:Arial" align=right>67,223&nbsp;</P>
</TD></TR>
</TABLE>
<P style="margin-top:0px; margin-bottom:13.333px"><BR>
<BR></P>
</DIV><DIV style="width:633.6px"><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=center>12</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
</DIV><DIV style="width:614.4px"><P style="margin-top:0px; margin-bottom:13.333px; page-break-before:always"><BR>
<BR></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=300></TD><TD width=104.867></TD><TD width=15.733></TD><TD width=96></TD></TR>
</TABLE>
<P style="margin-top:0px; margin-bottom:13.333px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=36></TD><TD width=0.667></TD><TD width=299.333></TD><TD width=108></TD><TD width=15.733></TD><TD width=104.267></TD><TD width=96></TD></TR>
<TR><TD valign=top width=36.667 colspan=2><P style="margin-top:0px; margin-bottom:13.333px; font-family:Arial"><B>5.</B></P>
</TD><TD valign=top width=623.333 colspan=5><P style="margin-top:0px; margin-bottom:13.333px; font-family:Arial"><B>Property and Equipment </B></P>
</TD></TR>
<TR><TD valign=top width=36><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=300 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=108><P style="margin:0px; font-family:Arial" align=center>December 31,</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=200.267 colspan=2><P style="margin:0px; font-family:Arial" align=center>June 30,</P>
</TD></TR>
<TR><TD valign=top width=36><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=300 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=108><P style="margin:0px; font-family:Arial" align=center>2006</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=200.267 colspan=2><P style="margin:0px; font-family:Arial" align=center>2007</P>
</TD></TR>
<TR><TD valign=top width=36><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=300 colspan=2><P style="margin:0px; font-family:Arial"><I>(in CHF thousands)</I></P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=108><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=200.267 colspan=2><P style="margin:0px; font-family:Arial" align=center>(unaudited)</P>
</TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=top width=36><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=300 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=108><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=200.267 colspan=2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=36><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=300 colspan=2><P style="margin:0px; font-family:Arial">Land</P>
</TD><TD valign=top width=108><P style="margin:0px; font-family:Arial" align=right>1,336&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=200.267 colspan=2><P style="margin:0px; font-family:Arial" align=right>1,353&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=36><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=300 colspan=2><P style="margin:0px; font-family:Arial">Buildings and improvements</P>
</TD><TD valign=top width=108><P style="margin:0px; font-family:Arial" align=right>56,751&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=200.267 colspan=2><P style="margin:0px; font-family:Arial" align=right>57,404&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=36><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=300 colspan=2><P style="margin:0px; font-family:Arial">Furniture and fixtures</P>
</TD><TD valign=top width=108><P style="margin:0px; font-family:Arial" align=right>7,414&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=200.267 colspan=2><P style="margin:0px; font-family:Arial" align=right>7,931&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=36><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=300 colspan=2><P style="margin:0px; font-family:Arial">Machinery and equipment</P>
</TD><TD valign=top width=108><P style="margin:0px; font-family:Arial" align=right>38,810&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=200.267 colspan=2><P style="margin:0px; font-family:Arial" align=right>45,945&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=36><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=300 colspan=2><P style="margin:0px; font-family:Arial">Vehicles</P>
</TD><TD valign=top width=108><P style="margin:0px; font-family:Arial" align=right>1,216&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=200.267 colspan=2><P style="margin:0px; font-family:Arial" align=right>1,547&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=36><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=300 colspan=2><P style="margin:0px; font-family:Arial">Reagent equipment (Company owned,</P>
</TD><TD valign=top width=108><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=200.267 colspan=2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=36><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=300 colspan=2><P style="margin:0px; text-indent:19.2px; font-family:Arial">at customer locations)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=108><P style="margin:0px; font-family:Arial" align=right>19,539&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=200.267 colspan=2><P style="margin:0px; font-family:Arial" align=right>24,754&nbsp;</P>
</TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=top width=36><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=300 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=108><P style="margin:0px; font-family:Arial" align=right>125,066&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=200.267 colspan=2><P style="margin:0px; font-family:Arial" align=right>138,934&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=36><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=300 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=108><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=200.267 colspan=2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=36><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=300 colspan=2><P style="margin:0px; font-family:Arial">Less: Accumulated depreciation</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=108><P style="margin:0px; font-family:Arial" align=right>(51,052)</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=200.267 colspan=2><P style="margin:0px; font-family:Arial" align=right>(60,416)</P>
</TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=top width=36><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=300 colspan=2><P style="margin:0px; font-family:Arial">Property, plant and equipment, net</P>
</TD><TD style="border-bottom:2.667px double #000000" valign=top width=108><P style="margin:0px; font-family:Arial" align=right>74,014&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:2.667px double #000000" valign=top width=200.267 colspan=2><P style="margin:0px; font-family:Arial" align=right>78,518&nbsp;</P>
</TD></TR>
</TABLE>
<P style="margin-top:0px; margin-bottom:13.333px"><BR></P>
<P style="margin:0px; padding-left:38.4px; font-family:Arial">Depreciation, including depreciation on capital leases, was CHF 7.2 million, CHF 3.1 million and CHF 5.2 million for the year ending December 31, 2006 and the six month periods ended June 30, 2006 and 2007, respectively. Depreciation expenses of CHF 2.3 million, CHF 1.4 million and CHF 2.8 million is included in cost of sales and CHF 4.9 million, CHF 1.7 million and CHF 2.4 million is included in selling, general and administrative expense. &nbsp;</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; padding-left:38.4px; font-family:Arial"><B>Leased assets</B></P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:38.4px; font-family:Arial">A portion of both buildings and improvements and reagent equipment include assets on capital lease. &nbsp;Refer to note 8 for additional information.</P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=36.667></TD><TD width=623.333></TD></TR>
<TR><TD valign=top width=36.667><P style="margin-top:0px; margin-bottom:13.333px; font-family:Arial"><B>6.</B></P>
</TD><TD valign=top width=623.333><P style="margin-top:0px; margin-bottom:13.333px; font-family:Arial"><B>Accrued Expenses and Other Current Liabilities</B></P>
</TD></TR>
</TABLE>
<P style="margin-top:0px; margin-bottom:13.333px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=15.733></TD><TD width=15.733></TD><TD width=15.733></TD><TD width=288.8></TD><TD width=108></TD><TD width=15.733></TD><TD width=92.267></TD></TR>
<TR><TD valign=top width=336 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=108><P style="margin:0px; font-family:Arial" align=center>December 31,</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=92.267><P style="margin:0px; font-family:Arial" align=center>June 30,</P>
</TD></TR>
<TR><TD valign=top width=336 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=108><P style="margin:0px; font-family:Arial" align=center>2006</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=92.267><P style="margin:0px; font-family:Arial" align=center>2007</P>
</TD></TR>
<TR><TD valign=top width=336 colspan=4><P style="margin:0px; font-family:Arial"><I>(in CHF thousands)</I></P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=108><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=92.267><P style="margin:0px; font-family:Arial" align=center>(unaudited)</P>
</TD></TR>
<TR><TD valign=top width=336 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=108><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=92.267><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=336 colspan=4><P style="margin:0px; font-family:Arial">Taxes payables</P>
</TD><TD valign=top width=108><P style="margin:0px; font-family:Arial" align=right>6,088 </P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=92.267><P style="margin:0px; font-family:Arial" align=right>8,256&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=336 colspan=4><P style="margin:0px; font-family:Arial">Accrued royalties</P>
</TD><TD valign=top width=108><P style="margin:0px; font-family:Arial" align=right>2,877 </P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=92.267><P style="margin:0px; font-family:Arial" align=right>3,425&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=336 colspan=4><P style="margin:0px; font-family:Arial">Accrued salaries</P>
</TD><TD valign=top width=108><P style="margin:0px; font-family:Arial" align=right>8,737 </P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=92.267><P style="margin:0px; font-family:Arial" align=right>7,775&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=336 colspan=4><P style="margin:0px; font-family:Arial">Accrued commissions</P>
</TD><TD valign=top width=108><P style="margin:0px; font-family:Arial" align=right>5,066 </P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=92.267><P style="margin:0px; font-family:Arial" align=right>1,517&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=336 colspan=4><P style="margin:0px; font-family:Arial">Accrued warranty</P>
</TD><TD valign=top width=108><P style="margin:0px; font-family:Arial" align=right>595 </P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=92.267><P style="margin:0px; font-family:Arial" align=right>611&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=336 colspan=4><P style="margin:0px; font-family:Arial">Accrued professional fees</P>
</TD><TD valign=top width=108><P style="margin:0px; font-family:Arial" align=right>2,812 </P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=92.267><P style="margin:0px; font-family:Arial" align=right>440&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=336 colspan=4><P style="margin:0px; font-family:Arial">Accrued other expenses</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=108><P style="margin:0px; font-family:Arial" align=right>6,141 </P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=92.267><P style="margin:0px; font-family:Arial" align=right>5,818&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=288.8><P style="margin-top:6.667px; margin-bottom:0px; font-family:Arial">Accrued expenses and other current liabilities</P>
</TD><TD style="border-bottom:2.667px double #000000" valign=top width=108><P style="margin-top:6.667px; margin-bottom:0px; font-family:Arial" align=right>32,316</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:2.667px double #000000" valign=top width=92.267><P style="margin-top:6.667px; margin-bottom:0px; font-family:Arial" align=right>27,842</P>
</TD></TR>
</TABLE>
<P style="margin-top:0px; margin-bottom:13.333px"><BR></P>
<P style="margin-top:0px; margin-bottom:13.333px"><BR>
<BR></P>
</DIV><DIV style="width:633.6px"><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=center>13</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
</DIV><DIV style="width:614.4px"><P style="margin-top:0px; margin-bottom:13.333px; page-break-before:always"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=36></TD><TD width=0.667></TD><TD width=377.467></TD><TD width=110.133></TD><TD width=15.733></TD><TD width=108></TD><TD width=12></TD></TR>
<TR><TD valign=top width=36.667 colspan=2><P style="margin-top:0px; margin-bottom:13.333px; font-family:Arial"><B>7.</B></P>
</TD><TD valign=top width=623.333 colspan=5><P style="margin-top:0px; margin-bottom:13.333px; font-family:Arial"><B>Lines of Credit</B></P>
</TD></TR>
<TR><TD valign=top width=36><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=378.133 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=110.133><P style="margin:0px; font-family:Arial" align=center><B>December 31,</B></P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=120 colspan=2><P style="margin:0px; font-family:Arial" align=center><B>June 30,</B></P>
</TD></TR>
<TR><TD valign=top width=36><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=378.133 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=110.133><P style="margin:0px; font-family:Arial" align=center><B>2006</B></P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=120 colspan=2><P style="margin:0px; font-family:Arial" align=center><B>2007</B></P>
</TD></TR>
<TR><TD valign=top width=36><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=378.133 colspan=2><P style="margin:0px; font-family:Arial"><I>(in CHF thousands)</I></P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=110.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=120 colspan=2><P style="margin:0px; font-family:Arial" align=center>(unaudited)</P>
</TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=top width=36><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=378.133 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=110.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=120 colspan=2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=36><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=378.133 colspan=2><P style="margin:0px; font-family:Arial">Other</P>
</TD><TD valign=top width=110.133><P style="margin:0px; font-family:Arial" align=right>93 </P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=120 colspan=2><P style="margin:0px; font-family:Arial" align=right>61 </P>
</TD></TR>
<TR><TD valign=top width=36><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=378.133 colspan=2><P style="margin:0px; font-family:Arial">Lines of credit</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=110.133><P style="margin:0px; font-family:Arial" align=right>19,350 </P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=120 colspan=2><P style="margin:0px; font-family:Arial" align=right>25,150 </P>
</TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=top width=36><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=378.133 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:2.667px double #000000" valign=top width=110.133><P style="margin:0px; font-family:Arial" align=right>19,443 </P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:2.667px double #000000" valign=top width=120 colspan=2><P style="margin:0px; font-family:Arial" align=right>25,211 </P>
</TD></TR>
</TABLE>
<P style="margin-top:0px; margin-bottom:13.333px"><BR></P>
<P style="margin:0px; padding-left:38.4px; font-family:Arial"><B>Credit line 1 &#150; </B>On January 27, 2004 the Company entered into an arrangement with UBS to obtain a line of credit with a total availability of CHF 18.0 million. &nbsp;Borrowings under this line of credit do not have an expiration date and are due upon demand by the bank. &nbsp;This line of credit includes certain debt covenants which are typical in Switzerland, such as, among other things, providing certain periodic financial information, limitations on entering into additional debt agreements and entering into any financial guarantees. &nbsp;&nbsp;In addition, this particular line of credit includes covenants related to ratios associated with debt, equity, EBITDA and interest expense. &nbsp;The Company is in compliance with all applicable covenants for all periods presented. &nbsp;Interest on this line of credit is variable and is determined based upon current money market conditions in Switzerland. &nbsp;The total availability of the c
redit line is reduced by CHF 2.0 million yearly starting on December 31, 2004. &nbsp;As of December 31, 2006 the total availability was CHF 12.0 million, the interest rate on this line of credit was 2.5% and the outstanding balance was CHF 10.0 million.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; padding-left:38.4px; font-family:Arial">On March 13, 2007 the total availability of this credit line was increased to CHF 15.0 million and reduced again to CHF 12.0 million as of June 30, 2007. &nbsp;The covenants for this line of credit remained unchanged. &nbsp;As of June 30, 2007 the outstanding balance was CHF 7.5 million.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; padding-left:38.4px; font-family:Arial"><B>Credit line 2 - </B>On August 14, 2002 the Company entered into an arrangement with UBS to obtain a line of credit with a total availability of CHF 10.2 million. &nbsp;This line of credit expires on June 30, 2009, is cancellable immediately without any notice period by either party and requires annual payments of CHF 0.8 million on the outstanding principal balance. &nbsp;This line of credit includes certain debt covenants which are typical in Switzerland, such as, among other things, providing certain periodic financial information, limitations on entering into additional debt agreements and entering into any financial guarantees. &nbsp;In addition, this particular line of credit includes covenants related to ratios associated with debt, equity, EBITDA and interest expense. &nbsp;The Company is in compliance with all applicable covenants for all periods presented. &nbsp;&nbsp;Interest on this line of credit is variable and is determined based 
upon current money market conditions in Switzerland. &nbsp;As of December 31, 2006 the interest rate on this line of credit was 2.85% and the outstanding balance was CHF 4.4 million.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; padding-left:38.4px; font-family:Arial">On June 4, 2007 the total availability of this credit line with was reduced to CHF 6.0 million. The debt covenants for this line of credit remained unchanged. &nbsp;As of June 30, 2007, the outstanding balance was CHF 4.4 million.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; padding-left:38.4px; font-family:Arial"><B>Credit line 3 &#150; </B>On December 11, 2001 the Company entered into an arrangement with Credit Suisse to obtain a line of credit with a total availability of CHF 6 million. &nbsp;Borrowings under this line of credit do not have an expiration date and are due upon demand by the bank. &nbsp;This line of credit includes certain debt covenants which are typical in Switzerland, such as, among other things, providing certain periodic financial information, limitations on entering into additional debt agreements and entering into any financial guarantees. &nbsp;Interest on this line of credit is variable </P>
<P style="margin:0px"><BR>
<BR></P>
</DIV><DIV style="width:633.6px"><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=center>14</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
</DIV><DIV style="width:614.4px"><P style="margin:0px; padding-left:38.4px; font-family:Arial; page-break-before:always">and is determined based upon current money market conditions in Switzerland. &nbsp;As of December 31, 2006, the interest rate was 2.8% and the outstanding balance was CHF 4.95 million.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; padding-left:38.4px; font-family:Arial">On February 13, 2007 the total availability of this credit line was increased to CHF 9.0 million. The debt covenants for this line of credit remained unchanged. As of June 30, 2007, the outstanding balance was CHF 7.5 million. &nbsp;&nbsp;</P>
<P style="margin-top:0px; margin-bottom:13.333px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=36></TD><TD width=0.667></TD><TD width=395.933></TD><TD width=104.4></TD><TD width=15.733></TD><TD width=95.267></TD><TD width=12></TD></TR>
<TR><TD valign=top width=36.667 colspan=2><P style="margin-top:0px; margin-bottom:13.333px; font-family:Arial"><B>8.</B></P>
</TD><TD valign=top width=623.333 colspan=5><P style="margin-top:0px; margin-bottom:13.333px; font-family:Arial"><B>Capital Lease Obligations</B></P>
</TD></TR>
<TR><TD valign=top width=36><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=396.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=104.4><P style="margin:0px; font-family:Arial" align=center>December 31,</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=107.267 colspan=2><P style="margin:0px; font-family:Arial" align=center>June 30,</P>
</TD></TR>
<TR><TD valign=top width=36><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=396.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=104.4><P style="margin:0px; font-family:Arial" align=center>2006</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=107.267 colspan=2><P style="margin:0px; font-family:Arial" align=center>2007</P>
</TD></TR>
<TR><TD valign=top width=36><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=396.6 colspan=2><P style="margin:0px; font-family:Arial"><I>(in CHF thousands)</I></P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=104.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=107.267 colspan=2><P style="margin:0px; font-family:Arial" align=center>(unaudited)</P>
</TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=top width=36><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=396.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=104.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=107.267 colspan=2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=36><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=396.6 colspan=2><P style="margin:0px; font-family:Arial"><B>Building lease</B></P>
</TD><TD valign=top width=104.4><P style="margin:0px; font-family:Arial" align=right>13,952&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=107.267 colspan=2><P style="margin:0px; font-family:Arial" align=right>13,135&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=36><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=396.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=104.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=107.267 colspan=2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=36><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=396.6 colspan=2><P style="margin:0px; font-family:Arial"><B>Reagent equipment leases</B></P>
</TD><TD valign=top width=104.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=107.267 colspan=2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=36><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=396.6 colspan=2><P style="margin:0px; font-family:Arial">Bearing interest at an average interest of 6.6% and with</P>
</TD><TD valign=top width=104.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=107.267 colspan=2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=36><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=396.6 colspan=2><P style="margin:0px; font-family:Arial">maturity dates ranging from February 2008 to May 2012</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=104.4><P style="margin:0px; font-family:Arial" align=right>16,526&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=107.267 colspan=2><P style="margin:0px; font-family:Arial" align=right>16,707&nbsp;</P>
</TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=top width=36><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=396.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=104.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=107.267 colspan=2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=36><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=396.6 colspan=2><P style="margin:0px; font-family:Arial"><B>Total</B></P>
</TD><TD valign=top width=104.4><P style="margin:0px; font-family:Arial" align=right>30,478&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=107.267 colspan=2><P style="margin:0px; font-family:Arial" align=right>29,842&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=36><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=396.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=104.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=107.267 colspan=2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=36><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=396.6 colspan=2><P style="margin:0px; font-family:Arial">Less: Current portion</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=104.4><P style="margin:0px; font-family:Arial" align=right>(10,072)</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=107.267 colspan=2><P style="margin:0px; font-family:Arial" align=right>(11,216)</P>
</TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=top width=36><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=396.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:2.667px double #000000" valign=top width=104.4><P style="margin:0px; font-family:Arial" align=right>20,406&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:2.667px double #000000" valign=top width=107.267 colspan=2><P style="margin:0px; font-family:Arial" align=right>18,626&nbsp;</P>
</TD></TR>
</TABLE>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:38.4px; font-family:Arial">The Company leases the production facilities and head office space based in Cressier, Switzerland, from Credit Suisse. &nbsp;In May 2006, the original lease agreement expired and was renewed for an additional 5 year period. &nbsp;At the conclusion of this renewal, the Company has the right to purchase the property for CHF 6 million or extend the lease for another 5 year period.</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:38.4px; font-family:Arial">The Company manufactures and distributes dedicated instruments for blood group serology, coagulation, platelet analysis and evanescence technology. &nbsp;In addition, the Company purchases instruments from third party manufacturers. &nbsp;These instruments are necessary to operate the Company&#146;s other products. &nbsp;&nbsp;To facilitate the sale of products, the Company enters into sale leaseback arrangements with Migrosbank and subsequently sublease arrangements with distributors and other third parties. &nbsp;In all instances, the Company remains the primary obligor to Migrosbank during the duration of the lease. &nbsp;Under the sale leaseback arrangements title to the leased instruments passes to the Company at the end of the lease period and typically onto the distributors and other third parties as part of the sublease arrangements. &nbsp;Amounts receivable from distributors and other third parties are classifi
ed as finance lease receivables on the consolidated balance sheet.</P>
<P style="margin-top:0px; margin-bottom:13.333px"><BR>
<BR></P>
</DIV><DIV style="width:633.6px"><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=center>15</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
</DIV><DIV style="width:614.4px"><P style="margin-top:0px; margin-bottom:13.333px; padding-left:38.4px; font-family:Arial; page-break-before:always">The following is a schedule of approximate future minimum lease payments to be made under capital leases as of December 31, 2006:</P>
<TABLE style="font-size:13.333px" cellspacing=0 align=center><TR><TD width=331.2></TD><TD width=108></TD></TR>
<TR><TD valign=top width=331.2><P style="margin:0px; font-family:Arial"><I>(in CHF thousands)</I></P>
</TD><TD valign=top width=108><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=331.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=108><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=331.2><P style="margin:0px; font-family:Arial">2007</P>
</TD><TD valign=top width=108><P style="margin:0px; font-family:Arial" align=right>10,957&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=331.2><P style="margin:0px; font-family:Arial">2008</P>
</TD><TD valign=top width=108><P style="margin:0px; font-family:Arial" align=right>8,476&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=331.2><P style="margin:0px; font-family:Arial">2009</P>
</TD><TD valign=top width=108><P style="margin:0px; font-family:Arial" align=right>3,652&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=331.2><P style="margin:0px; font-family:Arial">2010</P>
</TD><TD valign=top width=108><P style="margin:0px; font-family:Arial" align=right>2,396&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=331.2><P style="margin:0px; font-family:Arial">2011</P>
</TD><TD valign=top width=108><P style="margin:0px; font-family:Arial" align=right>7,135&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=331.2><P style="margin:0px; font-family:Arial">Thereafter</P>
</TD><TD valign=top width=108><P style="margin:0px; font-family:Arial" align=right><U>92&nbsp;</U></P>
</TD></TR>
<TR><TD valign=top width=331.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=108><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=331.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=108><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=331.2><P style="margin:0px; font-family:Arial">Total minimum payments</P>
</TD><TD valign=top width=108><P style="margin:0px; font-family:Arial" align=right>32,708&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=331.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=108><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=331.2><P style="margin:0px; font-family:Arial">Less: interest portion</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=108><P style="margin:0px; font-family:Arial" align=right>(2,230)</P>
</TD></TR>
<TR><TD valign=top width=331.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=108><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=331.2><P style="margin:0px; font-family:Arial">Net amount due</P>
</TD><TD style="border-bottom:2.667px double #000000" valign=top width=108><P style="margin:0px; font-family:Arial" align=right>30,478&nbsp;</P>
</TD></TR>
</TABLE>
<P style="margin-top:0px; margin-bottom:13.333px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=36.667></TD><TD width=623.333></TD></TR>
<TR><TD valign=top width=36.667><P style="margin-top:0px; margin-bottom:13.333px; font-family:Arial"><B>9.</B></P>
</TD><TD valign=top width=623.333><P style="margin-top:0px; margin-bottom:13.333px; font-family:Arial"><B>Treasury Shares</B></P>
</TD></TR>
</TABLE>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:38.4px; font-family:Arial">There were 1&#146;639 treasury shares held by the Company as of December 31, 2006 and June 30, 2007 with a value of CHF 8.3 million. &nbsp;</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:38.4px; font-family:Arial">During 2006, the Company acquired 1&#146;531 shares, or approximately 9% of the total shares issued from one shareholder for CHF 7.8 million. &nbsp;There were no other treasury share transactions during 2006 or through June 30, 2007.</P>
<P style="margin-top:0px; margin-bottom:13.333px"><BR>
<BR></P>
</DIV><DIV style="width:633.6px"><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=center>16</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
</DIV><DIV style="width:614.4px"><P style="margin-top:0px; margin-bottom:13.333px; page-break-before:always"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=36.667></TD><TD width=623.333></TD></TR>
<TR><TD valign=top width=36.667><P style="margin-top:0px; margin-bottom:13.333px; font-family:Arial"><B>10.</B></P>
</TD><TD valign=top width=623.333><P style="margin-top:0px; margin-bottom:13.333px; font-family:Arial"><B>Income Taxes</B></P>
</TD></TR>
</TABLE>
<P style="margin-top:0px; margin-bottom:13.333px"><BR></P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:38.4px; font-family:Arial">Sources of income as of December 31, 2006 before income taxes are summarized below:</P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=336></TD><TD width=120></TD></TR>
<TR><TD valign=top width=336><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=120><P style="margin:0px; font-family:Arial" align=center>December 31,</P>
</TD></TR>
<TR><TD valign=top width=336><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=120><P style="margin:0px; font-family:Arial" align=center>2006</P>
</TD></TR>
<TR><TD valign=top width=336><P style="margin:0px; font-family:Arial"><I>(in CHF thousands)</I></P>
</TD><TD valign=top width=120><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=336><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=120><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=336><P style="margin:0px; font-family:Arial">Swiss Operations</P>
</TD><TD valign=top width=120><P style="margin:0px; font-family:Arial" align=right>23,621&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=336><P style="margin:0px; font-family:Arial">Foreign Operations</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=120><P style="margin:0px; font-family:Arial" align=right>11,991&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=336><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:2.667px double #000000" valign=top width=120><P style="margin:0px; font-family:Arial" align=right>35,612&nbsp;</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:38.4px; font-family:Arial">The provision for income taxes as of December 31, 2006 is summarized as follows:</P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=336></TD><TD width=108></TD></TR>
<TR><TD valign=top width=336><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=108><P style="margin:0px; font-family:Arial" align=center>December 31</P>
</TD></TR>
<TR><TD valign=top width=336><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=108><P style="margin:0px; font-family:Arial" align=center>2006</P>
</TD></TR>
<TR><TD valign=top width=336><P style="margin:0px; font-family:Arial"><I>(in CHF thousands)</I></P>
</TD><TD valign=top width=108><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=336><P style="margin:0px; font-family:Arial">Current:</P>
</TD><TD valign=top width=108><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=336><P style="margin:0px; text-indent:9.6px; font-family:Arial">Switzerland</P>
</TD><TD valign=top width=108><P style="margin:0px; font-family:Arial" align=right>3,857</P>
</TD></TR>
<TR><TD valign=top width=336><P style="margin:0px; text-indent:9.6px; font-family:Arial">International</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=108><P style="margin:0px; font-family:Arial" align=right>3,984</P>
</TD></TR>
<TR><TD valign=top width=336><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=108><P style="margin:0px; font-family:Arial" align=right>7,841</P>
</TD></TR>
<TR><TD valign=top width=336><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=108><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=336><P style="margin:0px; font-family:Arial">Deferred:</P>
</TD><TD valign=top width=108><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=336><P style="margin:0px; text-indent:9.6px; font-family:Arial">Switzerland</P>
</TD><TD valign=top width=108><P style="margin:0px; font-family:Arial" align=right>948</P>
</TD></TR>
<TR><TD valign=top width=336><P style="margin:0px; text-indent:9.6px; font-family:Arial">International</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=108><P style="margin:0px; font-family:Arial" align=right>1,151</P>
</TD></TR>
<TR><TD valign=top width=336><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=108><P style="margin:0px; font-family:Arial" align=right>2,099</P>
</TD></TR>
<TR><TD valign=top width=336><P style="margin:0px; font-family:Arial">Provision for income taxes</P>
</TD><TD style="border-bottom:2.667px double #000000" valign=top width=108><P style="margin:0px; font-family:Arial" align=right>9,940</P>
</TD></TR>
</TABLE>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:38.4px; font-family:Arial">Deferred income taxes reflect the net tax effects of: (a) temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and income tax purposes; and (b) operating loss carry-forwards. &nbsp;Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be realized. &nbsp;Based on assessments of all available evidence including, but not limited to, the operating history and lack of profitability of certain subsidiaries, management does not believe it is more likely than not that the Company will be able to realize the subsidiaries&#146; net operating loss carry-forwards and tax benefits and, as a result, deferred tax valuation allowances have been recorded against these deferred tax assets as follows: DTS Brazil CHF 4.5 million, DiaInvest AG CHF 1.1 million and DiaMed Holding AG CHF .5 million.</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:38.4px; font-family:Arial">The net operating loss carry-forwards for DTS Brazil for CHF 13.1 million do not expire; other net operating loss carry-forwards of CHF 20.3 million start to expire in 2009.</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:38.4px; font-family:Arial">Settlement of open tax years, as well as tax issues in other countries where we conduct our business, are not expected to have a material effect on the consolidated financial position or</P>
<P style="margin-top:0px; margin-bottom:13.333px"><BR>
<BR></P>
</DIV><DIV style="width:633.6px"><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=center>17</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
</DIV><DIV style="width:614.4px"><P style="margin-top:0px; margin-bottom:13.333px; padding-left:38.4px; font-family:Arial; page-break-before:always">liquidity of the Company and, in the opinion of management, adequate provision has been made for income taxes for all years under examination or subject to future examination. &nbsp;</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:38.4px; font-family:Arial">The tax effects of significant items comprising the Company&#146;s net deferred tax assets at December&nbsp;31, 2006 are as follows:</P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=324></TD><TD width=120></TD></TR>
<TR><TD valign=top width=324><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=120><P style="margin:0px; font-family:Arial" align=center><B>December 31, </B></P>
</TD></TR>
<TR><TD valign=top width=324><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=120><P style="margin:0px; font-family:Arial" align=center><B>2006</B></P>
</TD></TR>
<TR><TD valign=top width=324><P style="margin:0px; font-family:Arial"><I>(in CHF thousands)</I></P>
</TD><TD valign=top width=120><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=324><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=120><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=324><P style="margin:0px; font-family:Arial"><B>Deferred taxes assets</B></P>
</TD><TD valign=top width=120><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=324><P style="margin:0px; font-family:Arial">Bad debt reserve</P>
</TD><TD valign=top width=120><P style="margin:0px; font-family:Arial" align=right>430&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=324><P style="margin:0px; font-family:Arial">Inventory valuation differences</P>
</TD><TD valign=top width=120><P style="margin:0px; font-family:Arial" align=right>711&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=324><P style="margin:0px; font-family:Arial">Other current and noncurrent assets</P>
</TD><TD valign=top width=120><P style="margin:0px; font-family:Arial" align=right>832&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=324><P style="margin:0px; font-family:Arial">Pension provision</P>
</TD><TD valign=top width=120><P style="margin:0px; font-family:Arial" align=right>1,366&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=324><P style="margin:0px; font-family:Arial">Other reserves</P>
</TD><TD valign=top width=120><P style="margin:0px; font-family:Arial" align=right>2,797&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=324><P style="margin:0px; font-family:Arial">Amortization and depreciation</P>
</TD><TD valign=top width=120><P style="margin:0px; font-family:Arial" align=right>4,202&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=324><P style="margin:0px; font-family:Arial">Net operating losses</P>
</TD><TD valign=top width=120><P style="margin:0px; font-family:Arial" align=right>6,043&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=324><P style="margin:0px; font-family:Arial">Valuation allowance</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=120><P style="margin:0px; font-family:Arial" align=right>(10,175)</P>
</TD></TR>
<TR><TD valign=top width=324><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=120><P style="margin:0px; font-family:Arial" align=right>6,206&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=324><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=120><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=324><P style="margin:0px; font-family:Arial"><B>Deferred tax liabilities</B></P>
</TD><TD valign=top width=120><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=324><P style="margin:0px; font-family:Arial">Other current and noncurrent liabilities</P>
</TD><TD valign=top width=120><P style="margin:0px; font-family:Arial" align=right>530&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=324><P style="margin:0px; font-family:Arial">Intangible assets</P>
</TD><TD valign=top width=120><P style="margin:0px; font-family:Arial" align=right>531&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=324><P style="margin:0px; font-family:Arial">Long term liabilities</P>
</TD><TD valign=top width=120><P style="margin:0px; font-family:Arial" align=right>928&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=324><P style="margin:0px; font-family:Arial">Bad debt reserve</P>
</TD><TD valign=top width=120><P style="margin:0px; font-family:Arial" align=right>967&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=324><P style="margin:0px; font-family:Arial">Amortization and depreciation</P>
</TD><TD valign=top width=120><P style="margin:0px; font-family:Arial" align=right>1,329&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=324><P style="margin:0px; font-family:Arial">Inventory reserve</P>
</TD><TD valign=top width=120><P style="margin:0px; font-family:Arial" align=right>1,353&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=324><P style="margin:0px; font-family:Arial">Legal reserves</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=120><P style="margin:0px; font-family:Arial" align=right>2,996&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=324><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=120><P style="margin:0px; font-family:Arial" align=right>8,634&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=324><P style="margin:0px; text-indent:48px; font-family:Arial">Net deferred tax liabilities</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=120><P style="margin:0px; font-family:Arial" align=right>(2,428)</P>
</TD></TR>
</TABLE>
<P style="margin-top:0px; margin-bottom:13.333px"><BR></P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:38.4px; font-family:Arial">The Company records a valuation allowance as needed to reduce the deferred tax assets to an amount that is more likely than not to be realized. The net change in the valuation allowance in 2006 related to net operating losses incurred and credit carry forwards in jurisdictions where realization of the associated benefits are not expected to be realized as a result of a lack of future projected earnings, expiration or offset against future non-taxable income from holding companies.</P>
<P style="margin-top:0px; margin-bottom:13.333px"><BR></P>
<P style="margin-top:0px; margin-bottom:13.333px"><BR>
<BR></P>
</DIV><DIV style="width:633.6px"><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=center>18</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
</DIV><DIV style="width:614.4px"><P style="margin-top:0px; margin-bottom:13.333px; padding-left:38.4px; font-family:Arial; page-break-before:always">The Company&#146;s effective tax rate differs from the federal statutory rate as follows:</P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=372></TD><TD width=108></TD></TR>
<TR><TD valign=top width=372><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=108><P style="margin:0px; font-family:Arial" align=center>December 31,</P>
</TD></TR>
<TR><TD valign=top width=372><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=108><P style="margin:0px; font-family:Arial" align=center>2006</P>
</TD></TR>
<TR><TD valign=top width=372><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=108><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=372><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=108><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=372><P style="margin:0px; font-family:Arial">Swiss federal statutory tax rate</P>
</TD><TD valign=top width=108><P style="margin:0px; font-family:Arial" align=right>8.5 %</P>
</TD></TR>
<TR><TD valign=top width=372><P style="margin:0px; font-family:Arial">Cantonal income taxes, net of federal tax benefit</P>
</TD><TD valign=top width=108><P style="margin:0px; font-family:Arial" align=right>12.5 %</P>
</TD></TR>
<TR><TD valign=top width=372><P style="margin:0px; font-family:Arial">Foreign income at other than Swiss tax rates</P>
</TD><TD valign=top width=108><P style="margin:0px; font-family:Arial" align=right>3.8 %</P>
</TD></TR>
<TR><TD valign=top width=372><P style="margin:0px; font-family:Arial">Impact of unrealizable net operating losses</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=108><P style="margin:0px; font-family:Arial" align=right>3.1%</P>
</TD></TR>
<TR><TD valign=top width=372><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:2.667px double #000000" valign=top width=108><P style="margin:0px; font-family:Arial" align=right>27.9%</P>
</TD></TR>
</TABLE>
<P style="margin-top:0px; margin-bottom:13.333px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=36.667></TD><TD width=623.333></TD></TR>
<TR><TD valign=top width=36.667><P style="margin-top:0px; margin-bottom:13.333px; font-family:Arial"><B>11.</B></P>
</TD><TD valign=top width=623.333><P style="margin-top:0px; margin-bottom:13.333px; font-family:Arial"><B>Supplemental Cash Flow Information</B></P>
</TD></TR>
</TABLE>
<P style="margin-top:0px; margin-bottom:13.333px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=300></TD><TD width=96></TD><TD width=31.467></TD><TD width=84.8></TD><TD width=15.733></TD><TD width=72></TD></TR>
<TR><TD valign=top width=300><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=96><P style="line-height:15.333px; margin:0px; font-family:Arial; font-size:12.667px" align=center>December 31,</P>
</TD><TD valign=top width=31.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=84.8><P style="line-height:15.333px; margin:0px; font-family:Arial; font-size:12.667px" align=center>June 30</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=72><P style="line-height:15.333px; margin:0px; font-family:Arial; font-size:12.667px" align=center>June 30,</P>
</TD></TR>
<TR><TD valign=top width=300><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=96><P style="line-height:15.333px; margin:0px; font-family:Arial; font-size:12.667px" align=center>2006</P>
</TD><TD valign=top width=31.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=84.8><P style="line-height:15.333px; margin:0px; font-family:Arial; font-size:12.667px" align=center>2006</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=72><P style="line-height:15.333px; margin:0px; font-family:Arial; font-size:12.667px" align=center>2007</P>
</TD></TR>
<TR><TD valign=top width=300><P style="margin:0px; font-family:Arial"><I>(in CHF &nbsp;thousands)</I></P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=96><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=31.467><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=84.8><P style="line-height:15.333px; margin:0px; font-family:Arial; font-size:12.667px" align=center>(unaudited)</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=72><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=300><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=96><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=31.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=84.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=72><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=300><P style="margin:0px; font-family:Arial"><B>Non-cash Investing and Financing Activities</B></P>
</TD><TD valign=top width=96><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=31.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=84.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=72><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=300><P style="margin:0px; font-family:Arial">Capital leases</P>
</TD><TD valign=top width=96><P style="margin:0px; font-family:Arial" align=right>9,526 </P>
</TD><TD valign=top width=31.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=84.8><P style="margin:0px; font-family:Arial" align=right>6,331 </P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=72><P style="margin:0px; font-family:Arial" align=right>4,789</P>
</TD></TR>
<TR><TD valign=top width=300><P style="margin:0px; font-family:Arial">Acquisition liability assumed</P>
</TD><TD valign=top width=96><P style="margin:0px; font-family:Arial" align=right>- </P>
</TD><TD valign=top width=31.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=84.8><P style="margin:0px; font-family:Arial" align=right>- </P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=72><P style="margin:0px; font-family:Arial" align=right>225 </P>
</TD></TR>
<TR><TD valign=top width=300><P style="margin-top:6.667px; margin-bottom:0px; font-family:Arial"><B>Supplemental information</B></P>
</TD><TD valign=top width=96><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=31.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=84.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=72><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=300><P style="margin:0px; font-family:Arial">Taxes paid</P>
</TD><TD valign=top width=96><P style="margin:0px; font-family:Arial" align=right>7,841</P>
</TD><TD valign=top width=31.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=84.8><P style="margin:0px; font-family:Arial" align=right>5,181</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=72><P style="margin:0px; font-family:Arial" align=right>5,314</P>
</TD></TR>
<TR><TD valign=top width=300><P style="margin:0px; font-family:Arial">Interest paid</P>
</TD><TD valign=top width=96><P style="margin:0px; font-family:Arial" align=right>8,416</P>
</TD><TD valign=top width=31.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=84.8><P style="margin:0px; font-family:Arial" align=right>3,711 </P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=72><P style="margin:0px; font-family:Arial" align=right>5,346</P>
</TD></TR>
</TABLE>
<P style="margin-top:0px; margin-bottom:13.333px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=36.667></TD><TD width=623.333></TD></TR>
<TR><TD valign=top width=36.667><P style="margin-top:0px; margin-bottom:13.333px; font-family:Arial"><B>12.</B></P>
</TD><TD valign=top width=623.333><P style="margin-top:0px; margin-bottom:13.333px; font-family:Arial"><B>Pension Plans</B></P>
</TD></TR>
</TABLE>
<P style="margin-top:0px; margin-bottom:13.333px"><BR></P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:38.4px; font-family:Arial">The Company offers certain post-employment benefits in Switzerland and certain other locations in accordance with the laws and regulations of those countries. &nbsp;Employees of the Swiss group companies are primarily affiliated with the DiaMed Holding AG pension plan. This plan is governed by a Board of Trustees comprised of 50% company management and 50% employees and is financed by both employer and employee contributions. &nbsp;In addition, the post-employment benefit plan for the French entities is also accounted for as a defined benefit plan under US GAAP.</P>
<P style="margin-top:0px; margin-bottom:13.333px"><BR>
<BR></P>
</DIV><DIV style="width:633.6px"><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=center>19</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
</DIV><DIV style="width:614.4px"><P style="margin-top:0px; margin-bottom:13.333px; padding-left:38.4px; font-family:Arial; page-break-before:always">Net pension expense under the defined benefit pension plan is composed of the following for the year ended December 31, 2006 and the six month periods ended June 30, 2006 and 2007:</P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=143.8></TD><TD width=83.933></TD><TD width=16.333></TD><TD width=56.2></TD><TD width=15.733></TD><TD width=64.467></TD><TD width=15.733></TD><TD width=83.933></TD><TD width=15.733></TD><TD width=56.2></TD><TD width=15.733></TD><TD width=68.2></TD></TR>
<TR><TD width=143.8><P style="font-size:2pt">&nbsp;</P></TD><TD width=236.667 colspan=5><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=center>Swiss Pension Plans</P>
</TD><TD width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD width=239.8 colspan=5><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=center>French Pension Plans</P>
</TD></TR>
<TR><TD width=143.8><P style="font-size:2pt">&nbsp;</P></TD><TD width=83.933><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=center>Year Ended</P>
</TD><TD width=16.333><P style="font-size:2pt">&nbsp;</P></TD><TD width=136.4 colspan=3><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=center>Six-month Period Ended</P>
</TD><TD width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD width=83.933><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=center>Year Ended</P>
</TD><TD width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" width=140.133 colspan=3><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=center>Six&#150;month Period Ended</P>
</TD></TR>
<TR><TD width=143.8><P style="font-size:2pt">&nbsp;</P></TD><TD width=83.933><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=center>December 31,</P>
</TD><TD width=16.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000" width=56.2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=center>June 30,</P>
</TD><TD style="border-top:1px solid #000000" width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000" width=64.467><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=center>June 30,</P>
</TD><TD width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD width=83.933><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=center>December 31,</P>
</TD><TD width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD width=56.2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=center>June 30,</P>
</TD><TD width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD width=68.2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=center>June 30,</P>
</TD></TR>
<TR><TD width=143.8><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" width=83.933><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=center>2006</P>
</TD><TD width=16.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" width=56.2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=center>2006</P>
</TD><TD width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" width=64.467><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=center>2007</P>
</TD><TD width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" width=83.933><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=center>2006</P>
</TD><TD width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" width=56.2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=center>2006</P>
</TD><TD width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" width=68.2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=center>2007</P>
</TD></TR>
<TR><TD valign=top width=143.8><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px">Service cost - benefits </P>
</TD><TD valign=top width=83.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=56.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=64.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=83.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=56.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=68.2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=143.8><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px">&nbsp;earned during the period</P>
</TD><TD valign=top width=83.933><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>2,416&nbsp;</P>
</TD><TD valign=top width=16.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=56.2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>1,202&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=64.467><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>1,246&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=83.933><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>72&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=56.2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>39&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=68.2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>38&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=143.8><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px">Interest cost on projected </P>
</TD><TD valign=top width=83.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=56.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=64.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=83.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=56.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=68.2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=143.8><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px">benefit obligation</P>
</TD><TD valign=top width=83.933><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>1,003&nbsp;</P>
</TD><TD valign=top width=16.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=56.2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>497&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=64.467><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>557&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=83.933><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>31&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=56.2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>16&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=68.2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>20&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=143.8><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px">Expected return on plan </P>
</TD><TD valign=top width=83.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=56.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=64.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=83.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=56.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=68.2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=143.8><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px">assets</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=83.933><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>(1,475)</P>
</TD><TD valign=top width=16.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=56.2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>(710)</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=64.467><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>(661)</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=83.933><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>(39)</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=56.2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>(8)</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=68.2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>(21)</P>
</TD></TR>
<TR><TD valign=top width=143.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=83.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=56.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=64.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=83.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=56.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=68.2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=143.8><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px">Net periodic pension cost</P>
</TD><TD style="border-bottom:2.667px double #000000" valign=top width=83.933><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>1,944&nbsp;</P>
</TD><TD valign=top width=16.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:2.667px double #000000" valign=top width=56.2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>989&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:2.667px double #000000" valign=top width=64.467><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>1,142&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:2.667px double #000000" valign=top width=83.933><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>65&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:2.667px double #000000" valign=top width=56.2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>47&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:2.667px double #000000" valign=top width=68.2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>36&nbsp;</P>
</TD></TR>
</TABLE>
<P style="margin-top:0px; margin-bottom:13.333px"><BR></P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:38.4px; font-family:Arial">The following table sets forth the change in the benefit obligation, change in plan assets and funded status, which is recognized in the consolidated balance sheet, of the defined benefit pension plan as of December 31, 2006:</P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=264></TD><TD width=144></TD><TD width=15.733></TD><TD width=156></TD></TR>
<TR><TD valign=top width=264><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=144><P style="margin:0px; font-family:Arial">Swiss Pension Plans</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=156><P style="margin:0px; font-family:Arial">French Pension Plans</P>
</TD></TR>
<TR><TD valign=top width=264><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=144><P style="margin:0px; font-family:Arial" align=center>Year Ended</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=156><P style="margin:0px; font-family:Arial" align=center>Year Ended</P>
</TD></TR>
<TR><TD valign=top width=264><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=144><P style="margin:0px; font-family:Arial" align=center>December 31,</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=156><P style="margin:0px; font-family:Arial" align=center>December 31,</P>
</TD></TR>
<TR><TD valign=top width=264><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=144><P style="margin:0px; font-family:Arial" align=center>2006</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=156><P style="margin:0px; font-family:Arial" align=center>2006</P>
</TD></TR>
<TR><TD valign=top width=264><P style="margin:0px; font-family:Arial">Projected benefit obligation, </P>
</TD><TD valign=top width=144><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=156><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=264><P style="margin:0px; font-family:Arial">&nbsp;beginning of year</P>
</TD><TD valign=top width=144><P style="margin:0px; font-family:Arial" align=right>37,425&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=156><P style="margin:0px; font-family:Arial" align=right>769&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=264><P style="margin:0px; font-family:Arial">Service cost</P>
</TD><TD valign=top width=144><P style="margin:0px; font-family:Arial" align=right>2,416&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=156><P style="margin:0px; font-family:Arial" align=right>74&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=264><P style="margin:0px; font-family:Arial">Interest cost</P>
</TD><TD valign=top width=144><P style="margin:0px; font-family:Arial" align=right>1,003&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=156><P style="margin:0px; font-family:Arial" align=right>32&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=264><P style="margin:0px; font-family:Arial">Amendments</P>
</TD><TD valign=top width=144><P style="margin:0px; font-family:Arial" align=right>-&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=156><P style="margin:0px; font-family:Arial" align=right>(23)</P>
</TD></TR>
<TR><TD valign=top width=264><P style="margin:0px; font-family:Arial">Actuarial (gain) loss</P>
</TD><TD valign=top width=144><P style="margin:0px; font-family:Arial" align=right>192&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=156><P style="margin:0px; font-family:Arial" align=right>(47)</P>
</TD></TR>
<TR><TD valign=top width=264><P style="margin:0px; font-family:Arial">Employee contribution</P>
</TD><TD valign=top width=144><P style="margin:0px; font-family:Arial" align=right>1,536&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=156><P style="margin:0px; font-family:Arial" align=right>-&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=264><P style="margin:0px; font-family:Arial">Benefits paid</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=144><P style="margin:0px; font-family:Arial" align=right>(1,877)</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=156><P style="margin:0px; font-family:Arial" align=right>-&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=264><P style="margin:0px; font-family:Arial">Projected benefit obligation, end of year </P>
</TD><TD style="border-bottom:2.667px double #000000" valign=top width=144><P style="margin:0px; font-family:Arial" align=right>40,695&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:2.667px double #000000" valign=top width=156><P style="margin:0px; font-family:Arial" align=right>806&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=264><P style="margin:0px; font-family:Arial">Fair value of plan assets,</P>
</TD><TD valign=top width=144><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=156><P style="margin:0px; font-family:Arial" align=right>0&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=264><P style="margin:0px; font-family:Arial">&nbsp;beginning of year</P>
</TD><TD valign=top width=144><P style="margin:0px; font-family:Arial" align=right>32,074&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=156><P style="margin:0px; font-family:Arial" align=right>182&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=264><P style="margin:0px; font-family:Arial">Actual return on plan assets</P>
</TD><TD valign=top width=144><P style="margin:0px; font-family:Arial" align=right>1,245&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=156><P style="margin:0px; font-family:Arial" align=right>-10&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=264><P style="margin:0px; font-family:Arial">Employer contribution</P>
</TD><TD valign=top width=144><P style="margin:0px; font-family:Arial" align=right>1,754&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=156><P style="margin:0px; font-family:Arial" align=right>402&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=264><P style="margin:0px; font-family:Arial">Employee contribution</P>
</TD><TD valign=top width=144><P style="margin:0px; font-family:Arial" align=right>1,536&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=156><P style="margin:0px; font-family:Arial" align=right>-&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=264><P style="margin:0px; font-family:Arial">Benefits paid</P>
</TD><TD valign=top width=144><P style="margin:0px; font-family:Arial" align=right>(1,877)</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=156><P style="margin:0px; font-family:Arial" align=right>-&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=264><P style="margin:0px; font-family:Arial">Fair value of plan assets, end of year</P>
</TD><TD style="border-bottom:2.667px double #000000" valign=top width=144><P style="margin:0px; font-family:Arial" align=right>34,732&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:2.667px double #000000" valign=top width=156><P style="margin:0px; font-family:Arial" align=right>575&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=264><P style="margin:0px; font-family:Arial">Funded status at end of year</P>
</TD><TD valign=top width=144><P style="margin:0px; font-family:Arial" align=right>5,963&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=156><P style="margin:0px; font-family:Arial" align=right>232&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=264><P style="margin:0px; font-family:Arial">Unrecognized net actuarial loss</P>
</TD><TD valign=top width=144><P style="margin:0px; font-family:Arial" align=right>422&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=156><P style="margin:0px; font-family:Arial" align=right>(19)</P>
</TD></TR>
<TR><TD valign=top width=264><P style="margin:0px; font-family:Arial">Unrecognized prior service cost</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=144><P style="margin:0px; font-family:Arial" align=right>--</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=156><P style="margin:0px; font-family:Arial" align=right>--&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=264><P style="margin:0px; font-family:Arial">Net amount recognized</P>
</TD><TD style="border-bottom:2.667px double #000000" valign=top width=144><P style="margin:0px; font-family:Arial" align=right>5,541&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:2.667px double #000000" valign=top width=156><P style="margin:0px; font-family:Arial" align=right>251&nbsp;</P>
</TD></TR>
</TABLE>
<P style="margin-top:0px; margin-bottom:13.333px"><BR></P>
<P style="margin-top:0px; margin-bottom:13.333px"><BR>
<BR></P>
</DIV><DIV style="width:633.6px"><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=center>20</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
</DIV><DIV style="width:614.4px"><P style="margin-top:0px; margin-bottom:13.333px; padding-left:38.4px; font-family:Arial; page-break-before:always">Amounts recognized in accumulated other comprehensive income are as follows:</P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=132></TD><TD width=87.333></TD><TD width=15.733></TD><TD width=56.267></TD><TD width=15.733></TD><TD width=64.533></TD><TD width=15.733></TD><TD width=84></TD><TD width=15.733></TD><TD width=56.267></TD><TD width=15.733></TD><TD width=68.267></TD></TR>
<TR><TD valign=top width=132><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=239.6 colspan=5><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=center>Swiss Pension Plans</P>
</TD><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=240 colspan=5><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=center>French Pension Plans</P>
</TD></TR>
<TR><TD valign=bottom width=132><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=87.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=center>Year Ended</P>
</TD><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=136.533 colspan=3><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=center>Six-month Period Ended</P>
</TD><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=84><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=center>Year Ended</P>
</TD><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=140.267 colspan=3><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=center>Six-month Period Ended</P>
</TD></TR>
<TR><TD valign=top width=132><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=87.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=center>December 31,</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000" valign=top width=56.267><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=center>June 30,</P>
</TD><TD style="border-top:1px solid #000000" valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000" valign=top width=64.533><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=center>June 30,</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=84><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=center>December 31,</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=56.267><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=center>June 30,</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=68.267><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=center>June 30,</P>
</TD></TR>
<TR><TD width=132><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" width=87.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=center>2006</P>
</TD><TD width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" width=56.267><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=center>2006</P>
</TD><TD width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" width=64.533><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=center>2007</P>
</TD><TD width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" width=84><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=center>2006</P>
</TD><TD width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" width=56.267><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=center>2006</P>
</TD><TD width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" width=68.267><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=center>2007</P>
</TD></TR>
<TR><TD valign=top width=132><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px">Unrecognized prior </P>
</TD><TD valign=top width=87.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=56.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=64.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=84><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=56.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=68.267><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=132><P style="line-height:13.333px; margin:0px; text-indent:9.6px; font-family:Arial; font-size:10.667px">service cost</P>
</TD><TD valign=top width=87.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>--</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=56.267><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>--</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=64.533><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>4,676</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=84><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>--</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=56.267><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>--</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=68.267><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>--</P>
</TD></TR>
<TR><TD valign=top width=132><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px">Unrecognized net (gain)</P>
</TD><TD valign=top width=87.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=56.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=64.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=84><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=56.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=68.267><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=132><P style="line-height:13.333px; margin:0px; text-indent:9.6px; font-family:Arial; font-size:10.667px">loss</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=87.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>422</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=56.267><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>361</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=64.533><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>(1,913)</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=84><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>(19)</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=56.267><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>31</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=68.267><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>20</P>
</TD></TR>
<TR><TD valign=top width=132><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px">Total</P>
</TD><TD style="border-bottom:2.667px double #000000" valign=top width=87.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>422</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:2.667px double #000000" valign=top width=56.267><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>361</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:2.667px double #000000" valign=top width=64.533><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>2,763</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:2.667px double #000000" valign=top width=84><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>(19)</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:2.667px double #000000" valign=top width=56.267><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>31</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:2.667px double #000000" valign=top width=68.267><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>20</P>
</TD></TR>
</TABLE>
<P style="margin-top:0px; margin-bottom:13.333px"><BR></P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:38.4px; font-family:Arial">In 2007 the Company expects to recognize amortization of prior service costs of CHF 323 and amortization of actuarial losses of CHF 0.</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:33.6px; font-family:Arial">Weighted average assumptions used to determine benefit obligations for the year ended December 31, 2006:</P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=278></TD><TD width=86.2></TD><TD width=15.733></TD><TD width=94.533></TD></TR>
<TR><TD valign=top width=278><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=196.467 colspan=3><P style="margin:0px; font-family:Arial Bold" align=center><FONT FACE="Arial Bold"><B>Year Ended</B></FONT></P>
</TD></TR>
<TR><TD valign=top width=278><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=196.467 colspan=3><P style="margin:0px; font-family:Arial Bold" align=center><B>December 31, 2006</B></P>
</TD></TR>
<TR><TD valign=top width=278><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=86.2><P style="margin:0px; font-family:Arial" align=center><FONT FACE="Arial"><B>Swiss Plans</B></FONT></P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=94.533><P style="margin:0px; font-family:Arial" align=center><B>French Plans</B></P>
</TD></TR>
<TR><TD valign=top width=278><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=86.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=94.533><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=278><P style="margin:0px; font-family:Arial">Discount rate</P>
</TD><TD valign=top width=86.2><P style="margin:0px; font-family:Arial" align=right>2.75 %</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=94.533><P style="margin:0px; font-family:Arial" align=right>4.75 %</P>
</TD></TR>
<TR><TD valign=top width=278><P style="margin:0px; font-family:Arial">Expected return on plan assets</P>
</TD><TD valign=top width=86.2><P style="margin:0px; font-family:Arial" align=right>4.50 %</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=94.533><P style="margin:0px; font-family:Arial" align=right>4.25 %</P>
</TD></TR>
<TR><TD valign=top width=278><P style="margin:0px; font-family:Arial">Rate of compensation increase</P>
</TD><TD valign=top width=86.2><P style="margin:0px; font-family:Arial" align=right>2.00 %</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=94.533><P style="margin:0px; font-family:Arial" align=right>2.00 %</P>
</TD></TR>
<TR><TD valign=top width=278><P style="margin:0px; font-family:Arial">Pension indexation</P>
</TD><TD valign=top width=86.2><P style="margin:0px; font-family:Arial" align=right>0.50 %</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=94.533><P style="margin:0px; font-family:Arial" align=right>0.00 %</P>
</TD></TR>
<TR><TD valign=top width=278><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=86.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=94.533><P style="font-size:2pt">&nbsp;</P></TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:38.4px; font-family:Arial">The return on assets was selected from within the reasonable range of rates determined by (a) historical real returns for the assets classes covered by the investment policy, and (b) projections of inflation over the long-term period during which benefits are payable to plan participants.</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:38.4px; font-family:Arial">As of December 31, 2006 the weighted-average asset allocations of the Company&#146;s pension plans were as follows:</P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=278></TD><TD width=86.2></TD><TD width=15.733></TD><TD width=94.533></TD></TR>
<TR><TD valign=top width=278><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=196.467 colspan=3><P style="margin:0px; font-family:Arial Bold" align=center><FONT FACE="Arial Bold"><B>Year Ended</B></FONT></P>
</TD></TR>
<TR><TD valign=top width=278><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=196.467 colspan=3><P style="margin:0px; font-family:Arial Bold" align=center><B>December 31, 2006</B></P>
</TD></TR>
<TR><TD valign=top width=278><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=86.2><P style="margin:0px; font-family:Arial" align=center><FONT FACE="Arial"><B>Swiss Plan</B></FONT></P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=94.533><P style="margin:0px; font-family:Arial" align=center><B>French Plan</B></P>
</TD></TR>
<TR><TD valign=top width=278><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=86.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=94.533><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=278><P style="margin:0px; text-indent:9.6px; font-family:Arial">Qualified insurance policies</P>
</TD><TD valign=top width=86.2><P style="margin:0px; font-family:Arial" align=right>100%</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=94.533><P style="margin:0px; font-family:Arial" align=right>100%</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:38.4px; font-family:Arial">The Company invests all assets for Swiss and French pension plans with qualified insurance companies. &nbsp;</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:38.4px; font-family:Arial">The expected long-term rates of return are determined at each measurement date based on a review of the actual plan assets and the historical returns of the capital markets adjusted for certain interest rates as appropriate.</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:38.4px; font-family:Arial">The Company&#146;s investment policy is to place the plans with qualified insurance companies to reduce future volatility to a minimal level. &nbsp;The asset allocation and the investment policy are reviewed periodically to determine if changes are necessary.</P>
<P style="margin-top:0px; margin-bottom:13.333px"><BR>
<BR></P>
</DIV><DIV style="width:633.6px"><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=center>21</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
</DIV><DIV style="width:614.4px"><P style="margin-top:0px; margin-bottom:13.333px; padding-left:38.4px; font-family:Arial; page-break-before:always">The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid:</P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=180></TD><TD width=96></TD><TD width=15.733></TD><TD width=92.267></TD></TR>
<TR><TD valign=top width=180><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=96><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=92.267><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=180><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=96><P style="margin:0px; font-family:Arial" align=center>Swiss</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=92.267><P style="margin:0px; font-family:Arial" align=center>French</P>
</TD></TR>
<TR><TD valign=top width=180><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=96><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=92.267><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=180><P style="margin:0px; font-family:Arial">2007</P>
</TD><TD valign=top width=96><P style="margin:0px; font-family:Arial" align=right>1,004&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=92.267><P style="margin:0px; font-family:Arial" align=right>37&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=180><P style="margin:0px; font-family:Arial">2008</P>
</TD><TD valign=top width=96><P style="margin:0px; font-family:Arial" align=right>1,103&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=92.267><P style="margin:0px; font-family:Arial" align=right>-&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=180><P style="margin:0px; font-family:Arial">2009</P>
</TD><TD valign=top width=96><P style="margin:0px; font-family:Arial" align=right>1,356&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=92.267><P style="margin:0px; font-family:Arial" align=right>187&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=180><P style="margin:0px; font-family:Arial">2010</P>
</TD><TD valign=top width=96><P style="margin:0px; font-family:Arial" align=right>4,619&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=92.267><P style="margin:0px; font-family:Arial" align=right>14&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=180><P style="margin:0px; font-family:Arial">2011</P>
</TD><TD valign=top width=96><P style="margin:0px; font-family:Arial" align=right>1,545&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=92.267><P style="margin:0px; font-family:Arial" align=right>-&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=180><P style="margin:0px; font-family:Arial">2012-2016</P>
</TD><TD valign=top width=96><P style="margin:0px; font-family:Arial" align=right>11,871&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=92.267><P style="margin:0px; font-family:Arial" align=right>457&nbsp;</P>
</TD></TR>
</TABLE>
<P style="margin-top:0px; margin-bottom:13.333px"><BR></P>
<P style="margin:0px; padding-left:38.4px; font-family:Arial">In 2007, the Company expects to make employer pension contributions of CHF 1.75 million into the pension plans. &nbsp;Through June 30, 2007 the Company has contributed CHF 1.4 million.</P>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=36.667></TD><TD width=623.333></TD></TR>
<TR><TD valign=top width=36.667><P style="margin-top:0px; margin-bottom:13.333px; font-family:Arial"><B>13.</B></P>
</TD><TD valign=top width=623.333><P style="margin-top:0px; margin-bottom:13.333px; font-family:Arial"><B>Patented Technology</B></P>
</TD></TR>
</TABLE>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:38.4px; font-family:Arial">One of the Company&#146;s consolidated entities owns a binding patent, which was internally generated, to market and distribute certain key products of the Company. &nbsp;This patent and the right to utilize the associated technology is sublicensed to subsidiaries of the consolidated group as well as other third parties. &nbsp;During 2006, the Company recognized CHF 8.1 million in license income, included in net sales, as a result of sublicensing this patent to third parties. &nbsp;</P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=36.667></TD><TD width=623.333></TD></TR>
<TR><TD valign=top width=36.667><P style="margin-top:0px; margin-bottom:13.333px; font-family:Arial"><B>14.</B></P>
</TD><TD valign=top width=623.333><P style="margin-top:0px; margin-bottom:13.333px; font-family:Arial"><B>Commitments and Contingencies</B></P>
</TD></TR>
</TABLE>
<P style="margin:0px; padding-left:38.4px; font-family:Arial"><B>Lease Commitments</B></P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:38.4px; font-family:Arial">The Company leases office equipment and vehicles under operating lease agreements. &nbsp;</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:38.4px; font-family:Arial">The following is a schedule of approximate future annual lease payments under all operating leases that have initial or remaining non-cancelable lease terms in excess of one year as of December&nbsp;31, 2006:</P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=312></TD><TD width=108></TD></TR>
<TR><TD valign=top width=312><P style="margin:0px; font-family:Arial"><I>(in CHF thousands)</I></P>
</TD><TD valign=top width=108><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=312><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=108><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=312><P style="margin:0px; font-family:Arial">2007</P>
</TD><TD valign=top width=108><P style="margin:0px; font-family:Arial" align=right>1,063</P>
</TD></TR>
<TR><TD valign=top width=312><P style="margin:0px; font-family:Arial">2008</P>
</TD><TD valign=top width=108><P style="margin:0px; font-family:Arial" align=right>1,220</P>
</TD></TR>
<TR><TD valign=top width=312><P style="margin:0px; font-family:Arial">2009</P>
</TD><TD valign=top width=108><P style="margin:0px; font-family:Arial" align=right>814</P>
</TD></TR>
<TR><TD valign=top width=312><P style="margin:0px; font-family:Arial">2010</P>
</TD><TD valign=top width=108><P style="margin:0px; font-family:Arial" align=right>763</P>
</TD></TR>
<TR><TD valign=top width=312><P style="margin:0px; font-family:Arial">2011</P>
</TD><TD valign=top width=108><P style="margin:0px; font-family:Arial" align=right>737</P>
</TD></TR>
<TR><TD valign=top width=312><P style="margin:0px; font-family:Arial">2012</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=108><P style="margin:0px; font-family:Arial" align=right>313</P>
</TD></TR>
<TR><TD valign=top width=312><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=108><P style="margin:0px; font-family:Arial" align=right>4,910</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="margin:0px; padding-left:38.4px; font-family:Arial">The company paid CHF 1.3 million, CHF 0.6 million and CHF 0.6 million under operating lease agreements for the year ended December 31, 2006 and the six month periods ended June 30, 2006 and 2007, respectively.</P>
<P style="margin:0px"><BR>
<BR></P>
</DIV><DIV style="width:633.6px"><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=center>22</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
</DIV><DIV style="width:614.4px"><P style="margin:0px; padding-left:38.4px; font-family:Arial; page-break-before:always"><B>Contingencies</B></P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:38.4px; font-family:Arial">The Company is not currently subject to any material legal proceedings which have not been provided for in the commitments and contingencies accrual for legal claims (CHF 10.5 million at December 31, 2006 and CHF 12.3 million at June 30, 2007) (the &#147;Legal Accrual&#148;). &nbsp;From time to time, the Company may become a party to certain legal proceedings that are either non-material or arise in the ordinary course of business. &nbsp;The following is a list of material pending legal proceedings and disputes of the Company for which an accrual has been recorded and is included in commitments and contingencies on the consolidated balance sheets.</P>
<P style="margin:0px; padding-left:38.4px; text-indent:28.8px; font-family:Arial"><B>Claim 1</B></P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:67.2px; font-family:Arial">Fresenius HemoCare Netherlands BV is seeking compensation from DiaMed AG in connection with a dispute under a supplier agreement. &nbsp;Settlement was reached in October 2007 and the Company paid approximately CHF 1.4 million, which is the amount that has been accrued at December 31, 2006 and June 30, 2007 to fully settle the claim.</P>
<P style="margin:0px; padding-left:38.4px; text-indent:28.8px; font-family:Arial"><B>Claim 2</B></P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:67.2px; font-family:Arial">DiaMed Holding AG and DiaMed AG are engaged in settlement negotiations with DiaMed Diagnostika GmbH, a former third party distributor, to resolve a number of pending disputes, one of which relates to the termination of the distributor relationship. &nbsp;Due to the uncertainty of the outcome of all claims, the negotiations cannot be forecasted finally and the Company has recorded an accrual which represents our best estimate of the contingent liability. </P>
<P style="margin:0px; padding-left:38.4px; text-indent:28.8px; font-family:Arial"><B>Claim 3</B></P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:67.2px; font-family:Arial">DiaMed Latino America S.A. is the defendant in certain pending labor litigation in Brazil. &nbsp;The plaintiff claims the acknowledgment of an employment relationship with DiaMed Latino America S.A. and the payment of certain amounts (including penalties) under the Brazilian Labor Law. &nbsp;Although the ultimate outcome of this lawsuit cannot be forecasted finally, the Company has recorded an accrual which represents our best estimate of the contingent liability.</P>
<P style="margin:0px; padding-left:38.4px; text-indent:28.8px; font-family:Arial"><B>Claim 4</B></P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:67.2px; font-family:Arial">DTS Transfusion Systems S.A. is a defendant in multiple lawsuits in Brazil relating to various labor disputes and is in a dispute with the federal government regarding certain tax-related claims. &nbsp;Although the ultimate outcome of these lawsuits cannot be forecasted finally, the Company has recorded an accrual, which represents our best estimate of the contingent liability.</P>
<P style="margin:0px; padding-left:38.4px; font-family:Arial"><B>Purchase Commitment</B></P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:38.4px; font-family:Arial">The Company has entered into a purchase commitment with a third party supplier which requires the Company to purchase a minimum quantity of goods on an annual basis at pre-determined prices. &nbsp;The purchase commitment requires purchases in the amount of at least CHF 3.0 million during 2007.</P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=36.667></TD><TD width=623.333></TD></TR>
<TR><TD valign=top width=36.667><P style="margin-top:0px; margin-bottom:13.333px; font-family:Arial"><B>15.</B></P>
</TD><TD valign=top width=623.333><P style="margin-top:0px; margin-bottom:13.333px; font-family:Arial"><B>Related Party Transactions</B></P>
</TD></TR>
</TABLE>
<P style="margin:0px; padding-left:38.4px; font-family:Arial"><B>License fees</B></P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:38.4px; font-family:Arial">The Company has entered into agreements with shareholders and employees of the Company to pay licenses fees and royalties related to sales of certain products. &nbsp;The Company expensed approximately CHF 12.9 million for the twelve months ended December 31, 2006 and approximately CHF 6.7 million and CHF 6.1 million for the six month periods ended June 30, 2006</P>
<P style="margin-top:0px; margin-bottom:13.333px"><BR>
<BR></P>
</DIV><DIV style="width:633.6px"><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=center>23</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
</DIV><DIV style="width:614.4px"><P style="margin-top:0px; margin-bottom:13.333px; padding-left:38.4px; font-family:Arial; page-break-before:always">and 2007, respectively, for such arrangements. The Company owed approximately CHF 7.3 million to this shareholder as of December 31, 2006 and CHF 3.3 million as of June 30, 2007. &nbsp;&nbsp;Expenses under this arrangement are included as part of cost of sales and amounts due to this shareholder are included in related party payables.</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:38.4px; font-family:Arial">The Company has an agreement to pay licensing fees to a shareholder of DiaMed France S.A., a consolidated subsidiary of DiaMed Holding AG. The Company expensed approximately CHF 0.6 million for the twelve months ended December 31, 2006 and approximately CHF 0.3 million for the each of the six month periods ended June 30, 2006 and 2007, respectively for such licensing fees. The Company owed approximately CHF 0.6 million to this shareholder as of December 31, 2006 and CHF 0.3 million as of June 30, 2007. &nbsp;&nbsp;Expenses under this arrangement are included as part of cost of sales and amounts due to this shareholder are included in accrued expenses and other current liabilities.</P>
<P style="margin:0px; padding-left:38.4px; font-family:Arial"><B>Commissions</B></P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:38.4px; font-family:Arial">The Company has entered into an agreement with one of its shareholders, who is also an employee, for the payment of commissions for certain product sales. &nbsp;The amount which is paid under this agreement is determined annually by the Board of Directors. Under this agreement the Company expensed approximately CHF 4.0 million for the twelve months ended December 31, 2006, and CHF 2.3 million and CHF 2.0 million for the six month periods ended June 30, 2006 and 2007, respectively. The Company owed approximately CHF 2.0 million to this shareholder as of December 31, 2006, and CHF 1.1 million as of June 30, 2007. &nbsp;Expenses under this arrangement are included as part of selling, general and administrative expense and amounts due to this shareholder are included in accrued expenses and other current liabilities.</P>
<P style="margin:0px; padding-left:38.4px; font-family:Arial"><B>Transportation services</B></P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:38.4px; font-family:Arial">The Company has a consolidated subsidiary operating in Brazil, which obtained transportation services from an entity that was partially owned by members of management. For the year ended December 31, 2006 and the six months ended June 30, 2006, transportation expenses with this company amounted to approximately CHF 0.7 million and are included within cost of sales. There were no transactions with this company during the six month period ended June 30, 2007.</P>
<P style="margin:0px; padding-left:38.4px; font-family:Arial"><B>Building Rental</B></P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:38.4px; font-family:Arial">The Company rents a building from an entity which is owned by a shareholder and employee of the Company. &nbsp;Lease payments made were approximately CHF 0.2 million for the year ended December 31, 2006, and CHF 0.1 million and CHF 0.1 million for the six month periods ended June 30, 2006 and 2007, respectively. &nbsp;Amounts expensed under this arrangement are included in selling, general and administrative expense in the accompanying statements of income. &nbsp;There were no amounts outstanding to this entity as of December 31, 2006.</P>
<P style="margin:0px; padding-left:38.4px; font-family:Arial"><B>Supplier relationship</B></P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:38.4px; font-family:Arial">The Company purchases goods and materials from an entity which is owned by a shareholder and employee of the Company. &nbsp;Purchases from this entity made were approximately CHF 6.3 million, for the year ended December 31, 2006 and costs are included as part of cost of sales. &nbsp;As of December 31, 2006 the Company has accrued CHF 1.2 million included in accounts payable due to this entity. </P>
<P style="margin:0px"><BR>
<BR></P>
</DIV><DIV style="width:633.6px"><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=center>24</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
</DIV><DIV style="width:614.4px"><P style="margin:0px; page-break-before:always"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=36.667></TD><TD width=623.333></TD></TR>
<TR><TD valign=top width=36.667><P style="margin-top:0px; margin-bottom:13.333px; font-family:Arial"><B>16.</B></P>
</TD><TD valign=top width=623.333><P style="margin-top:0px; margin-bottom:13.333px; font-family:Arial"><B>Related Party Transactions</B></P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; text-indent:33.6px; font-family:Arial; font-size:14.667px">The components of the Company&#146;s total comprehensive income are as follows:</P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=15.733></TD><TD width=15.733></TD><TD width=15.733></TD><TD width=15.733></TD><TD width=15.733></TD><TD width=15.733></TD><TD width=219.667></TD><TD width=94.533></TD><TD width=15.733></TD><TD width=76.8></TD><TD width=15.733></TD><TD width=76.8></TD></TR>
<TR><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=219.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=94.533><P style="margin:0px; font-family:Arial" align=center>December 31</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=76.8><P style="margin:0px; font-family:Arial" align=center>June 30</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=76.8><P style="margin:0px; font-family:Arial" align=center>June 30</P>
</TD></TR>
<TR><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=219.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=94.533><P style="margin:0px; font-family:Arial" align=center>2006</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=76.8><P style="margin:0px; font-family:Arial" align=center>2006</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=76.8><P style="margin:0px; font-family:Arial" align=center>2007</P>
</TD></TR>
<TR><TD valign=top width=314.067 colspan=7><P style="margin:0px; font-family:Arial"><I>(in CHF thousands)</I></P>
</TD><TD style="border-bottom:1px solid #000000" width=94.533><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" width=76.8><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=center>(unaudited)</P>
</TD><TD style="border-bottom:1px solid #000000" width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" width=76.8><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=219.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=94.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=76.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=76.8><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=94.4 colspan=6><P style="margin:0px; font-family:Arial">Net income</P>
</TD><TD valign=top width=219.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=94.533><P style="margin:0px; font-family:Arial" align=right>22,545</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=76.8><P style="margin:0px; font-family:Arial" align=right>13,689</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=76.8><P style="margin:0px; font-family:Arial" align=right>12,740</P>
</TD></TR>
<TR><TD valign=top width=314.067 colspan=7><P style="margin:0px; font-family:Arial">Unrecognized amounts resulting from</P>
</TD><TD valign=top width=94.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=76.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=76.8><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=314.067 colspan=7><P style="margin:0px; font-family:Arial">defined benefit plans (Note 12)</P>
</TD><TD valign=top width=94.533><P style="margin:0px; font-family:Arial" align=right>(302)</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=76.8><P style="margin:0px; font-family:Arial" align=right>(285)</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=76.8><P style="margin:0px; font-family:Arial" align=right>(1,784)</P>
</TD></TR>
<TR><TD valign=top width=314.067 colspan=7><P style="margin:0px; font-family:Arial">Foreign currency translation adjustment</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=94.533><P style="margin:0px; font-family:Arial" align=right>176</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=76.8><P style="margin:0px; font-family:Arial" align=right>101</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=76.8><P style="margin:0px; font-family:Arial" align=right>1,323</P>
</TD></TR>
<TR><TD valign=top width=314.067 colspan=7><P style="margin:0px; font-family:Arial">Comprehensive income</P>
</TD><TD style="border-bottom:2.667px double #000000" valign=top width=94.533><P style="margin:0px; font-family:Arial" align=right>22,419</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:2.667px double #000000" valign=top width=76.8><P style="margin:0px; font-family:Arial" align=right>13,505</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:2.667px double #000000" valign=top width=76.8><P style="margin:0px; font-family:Arial" align=right>12,279</P>
</TD></TR>
</TABLE>
<P style="margin-top:0px; margin-bottom:13.333px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=36.667></TD><TD width=623.333></TD></TR>
<TR><TD valign=top width=36.667><P style="margin-top:0px; margin-bottom:13.333px; font-family:Arial"><B>17.</B></P>
</TD><TD valign=top width=623.333><P style="margin-top:0px; margin-bottom:13.333px; font-family:Arial"><B>Other operating expense</B></P>
</TD></TR>
</TABLE>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:38.4px; font-family:Arial">Included in other operating expenses are costs related to maintenance of an airplane owned by a consolidated entity of the Company as well as certain leasing costs. &nbsp;Such costs totaled CHF 6.8 million for the year ended December 31, 2006, and CHF 3.4 million and CHF 2.4 million for the six month periods ended June 30, 2006 and June 30, 2007, respectively. &nbsp;&nbsp;</P>
<TABLE style="font-size:13.333px" cellspacing=0 align=center><TR><TD width=7.2></TD><TD width=36.667></TD><TD width=221.2></TD><TD width=94.533></TD><TD width=16.8></TD><TD width=74.733></TD><TD width=216.067></TD></TR>
<TR><TD valign=top width=7.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=36.667><P style="margin-top:0px; margin-bottom:13.333px; font-family:Arial"><B>18.</B></P>
</TD><TD valign=top width=623.333 colspan=5><P style="margin-top:0px; margin-bottom:13.333px; font-family:Arial"><B>Intangible Assets</B></P>
</TD></TR>
<TR><TD valign=top width=667.2 colspan=7><P style="margin-top:0px; margin-bottom:13.333px; padding-left:38.4px; font-family:Arial" align=justify>Intangible assets consist of the following:</P>
</TD></TR>
<TR><TD valign=top width=265.067 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=94.533><P style="margin:0px; font-family:Arial" align=center><B>December 31</B></P>
</TD><TD valign=top width=16.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=290.8 colspan=2><P style="margin:0px; font-family:Arial" align=center><B>June 30</B></P>
</TD></TR>
<TR><TD valign=top width=265.067 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=94.533><P style="margin:0px; font-family:Arial" align=center><B>2006</B></P>
</TD><TD valign=top width=16.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=290.8 colspan=2><P style="margin:0px; font-family:Arial" align=center><B>2007</B></P>
</TD></TR>
<TR><TD valign=top width=265.067 colspan=3><P style="margin:0px; font-family:Arial"><I>(in CHF thousands)</I></P>
</TD><TD valign=top width=94.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=290.8 colspan=2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=center>(unaudited)</P>
</TD></TR>
<TR><TD valign=top width=265.067 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=94.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=290.8 colspan=2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=265.067 colspan=3><P style="margin:0px; font-family:Arial">Customer related assets</P>
</TD><TD valign=top width=94.533><P style="margin:0px; font-family:Arial" align=right>2,309 </P>
</TD><TD valign=top width=16.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=290.8 colspan=2><P style="margin:0px; font-family:Arial" align=right>2,375 </P>
</TD></TR>
<TR><TD valign=top width=265.067 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=94.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=290.8 colspan=2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=265.067 colspan=3><P style="margin:0px; font-family:Arial">Less: accumulated amortization</P>
</TD><TD valign=top width=94.533><P style="margin:0px; font-family:Arial" align=right>(693)</P>
</TD><TD valign=top width=16.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=290.8 colspan=2><P style="margin:0px; font-family:Arial" align=right>(808)</P>
</TD></TR>
<TR><TD valign=top width=265.067 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=94.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=290.8 colspan=2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=265.067 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-bottom:2px solid #000000" valign=top width=94.533><P style="margin:0px; font-family:Arial" align=right>1,616 </P>
</TD><TD valign=top width=16.8><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-bottom:2px solid #000000" valign=top width=290.8 colspan=2><P style="margin:0px; font-family:Arial" align=right>&nbsp;1,567 </P>
</TD></TR>
</TABLE>
<P style="margin-top:0px; margin-bottom:13.333px"><BR></P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:38.4px; font-family:Arial">Amortization expense was CHF 225 for the year ended December 31, 2006 and CHF 112 and CHF 117 for the six month periods ended June 30, 2006 and June 30, 2007, respectively. &nbsp;Estimated amortization expense for amortized intangible assets for each of the next five years is as follows:</P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=228></TD><TD width=24></TD><TD width=12></TD><TD width=12></TD><TD width=48></TD></TR>
<TR><TD valign=top width=252 colspan=2><P style="margin:0px; font-family:Arial"><I>(in CHF thousands)</I></P>
</TD><TD valign=top width=12><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=12><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=48><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=228><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=12><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=12><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=48><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=228><P style="margin:0px; font-family:Arial">2007</P>
</TD><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=12><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=12><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=48><P style="margin:0px; font-family:Arial" align=right>231 </P>
</TD></TR>
<TR><TD valign=top width=228><P style="margin:0px; font-family:Arial">2008</P>
</TD><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=12><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=12><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=48><P style="margin:0px; font-family:Arial" align=right>231 </P>
</TD></TR>
<TR><TD valign=top width=228><P style="margin:0px; font-family:Arial">2009</P>
</TD><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=12><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=12><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=48><P style="margin:0px; font-family:Arial" align=right>231 </P>
</TD></TR>
<TR><TD valign=top width=228><P style="margin:0px; font-family:Arial">2010</P>
</TD><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=12><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=12><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=48><P style="margin:0px; font-family:Arial" align=right>231 </P>
</TD></TR>
<TR><TD valign=top width=228><P style="margin:0px; font-family:Arial">2011</P>
</TD><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=12><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=12><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=48><P style="margin:0px; font-family:Arial" align=right>231 </P>
</TD></TR>
</TABLE>
<P style="margin-top:0px; margin-bottom:13.333px"><BR></P>
<P style="margin-top:0px; margin-bottom:13.333px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=36.667></TD><TD width=623.333></TD></TR>
<TR><TD valign=top width=36.667><P style="margin-top:0px; margin-bottom:13.333px; font-family:Arial"><B>19.</B></P>
</TD><TD valign=top width=623.333><P style="margin-top:0px; margin-bottom:13.333px; font-family:Arial"><B>Subsequent events</B></P>
</TD></TR>
</TABLE>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:38.4px; font-family:Arial">In May 2007, the Company entered into a definitive agreement with Bio-Rad Laboratories Inc to sell approximately 77.7% of the outstanding shares of the Company. &nbsp;The transaction closed on October 1, 2007. &nbsp;Under the terms of the agreement, Bio-Rad paid CHF 476.9 million in cash to acquire these shares. &nbsp;The Company continues to hold approximately 9.6% of its outstanding shares as treasury shares. &nbsp;&nbsp;</P>
<P style="margin-top:0px; margin-bottom:13.333px"><BR></P>
<P style="margin-top:0px; margin-bottom:13.333px"><BR>
<BR></P>
</DIV><DIV style="width:633.6px"><P style="line-height:14.667px; margin:0px; font-family:Arial; font-size:12px" align=center>25</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
</DIV></BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>4
<FILENAME>exh992.htm
<TEXT>
<!doctype html public "-//IETF//DTD HTML//EN">
<HTML>
<HEAD>
<TITLE>UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION</TITLE>
<META NAME="author" CONTENT="Mary Wolkenhauer">
<META NAME="date" CONTENT="12/13/2007">
</HEAD>
<BODY style="line-height:12pt; font-family:Times New Roman; font-size:10pt; color:#000000">
<DIV style="width:691.2px"><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right><B><U>Exhibit 99.2</U></B></P>
<P style="margin:0px" align=right><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION</P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">The following unaudited pro forma condensed combined financial statements are based on the historical financial statements of Bio-Rad Laboratories, Inc. (Bio-Rad) and DiaMed Holding AG (DiaMed) after giving effect to the acquisition of approximately 77.7% of the registered shares, or 85.96% of the outstanding shares, of DiaMed by Bio-Rad using the purchase method of accounting and applying the assumptions and adjustments described in the accompanying notes.</P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">The unaudited pro forma condensed combined statements of operations for the year ended December 31, 2006 and the six months ended June 30, 2007 are presented as if the acquisition had occurred on January 1, 2006. &nbsp;The unaudited pro forma condensed combined balance sheet is presented as if the acquisition had occurred on June 30, 2007. &nbsp;You should read this information in conjunction with the following:</P>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=24></TD><TD width=588></TD></TR>
<TR><TD valign=top width=24><P style="line-height:17.333px; margin:0px; font-size:14.667px">&#149;</P>
</TD><TD valign=top width=588><P style="line-height:17.333px; margin:0px; font-size:14.667px">Accompanying notes to the unaudited pro forma condensed combined financial statements;</P>
</TD></TR>
<TR><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=588><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=24><P style="line-height:17.333px; margin:0px; font-size:14.667px">&#149;</P>
</TD><TD valign=top width=588><P style="line-height:17.333px; margin:0px; font-size:14.667px">Unaudited historical financial statements of Bio-Rad as of and for the six month period</P>
</TD></TR>
<TR><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=588><P style="line-height:17.333px; margin:0px; font-size:14.667px">ended June 30, 2007 included in our second quarter Form 10-Q;</P>
</TD></TR>
<TR><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=588><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=24><P style="line-height:17.333px; margin:0px; font-size:14.667px">&#149;</P>
</TD><TD valign=top width=588><P style="line-height:17.333px; margin:0px; font-size:14.667px">Historical financial statements of Bio-Rad as of and for the fiscal year ended December 31, 2006</P>
</TD></TR>
<TR><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=588><P style="line-height:17.333px; margin:0px; font-size:14.667px">included in our Form 10-K;</P>
</TD></TR>
<TR><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=588><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=24><P style="line-height:17.333px; margin:0px; font-size:14.667px">&#149;</P>
</TD><TD valign=top width=588><P style="line-height:17.333px; margin:0px; font-size:14.667px">Unaudited historical financial statements of DiaMed as of and for the six month period </P>
</TD></TR>
<TR><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=588><P style="line-height:17.333px; margin:0px; font-size:14.667px">ended June 30, 2007 included elsewhere in this Form 8-K/A;</P>
</TD></TR>
<TR><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=588><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=24><P style="line-height:17.333px; margin:0px; font-size:14.667px">&#149;</P>
</TD><TD valign=top width=588><P style="line-height:17.333px; margin:0px; font-size:14.667px">Historical financial statements of DiaMed as of and for the fiscal year ended </P>
</TD></TR>
<TR><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=588><P style="line-height:17.333px; margin:0px; font-size:14.667px">December&nbsp;31,&nbsp;2006 included elsewhere in this Form 8-K/A.</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">The pro forma information presented is for illustrative purposes only and is not necessarily indicative of the financial position or results of operations that would have been realized if the acquisition had been completed on the dates indicated, nor is it indicative of future operating results or financial position. &nbsp;The pro forma adjustments are based upon available information and certain assumptions that Bio-Rad believes are reasonable. &nbsp;At this time, Bio-Rad has not completed all the asset valuation work and other procedures necessary to record the purchase as required by Statement of Financial Accounting Standard No. 141, (SFAS 141) &#147;<I>Business Combinations</I>.&#148; &nbsp;Pursuant to the purchase method of accounting in accordance with SFAS 141, the total estimated purchase price, calculated as described in Note 1 to these unaudited pro forma condensed combined financial statements, has been preliminarily allocated to ass
ets acquired and liabilities assumed based on their respective estimated fair values. &nbsp;Bio-Rad&#146;s management has estimated the preliminary fair value of the intangible assets and tangible assets acquired and liabilities assumed at the pro forma balance sheet date. &nbsp;Any differences between the fair value of the consideration paid and the fair value of the assets acquired and liabilities assumed will be recorded as goodwill. &nbsp;Because these unaudited pro forma condensed combined financial statements have been prepared based on preliminary estimates of fair values of assets acquired and liabilities assumed, the actual amounts recorded may differ materially from the information presented herein. &nbsp;These allocations are subject to change pending further review of the fair value of the assets acquired and liabilities assumed and related deferred tax assets/liabilities as well as the impact of possible in-process research and development costs and actual transaction costs. &nbsp;Additionally, 
the fair value of assets acquired and liabilities assumed may be materially impacted by the results of DiaMed&#146;s operations up to the closing date of the acquisition.</P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">The unaudited pro forma condensed combined financial statements do not include the effects of restructuring or integration costs associated with the closing of the acquisition. &nbsp;These costs cannot be reasonably estimated as planning for these activities is in the early stages and the financial impact, if any, cannot yet be determined. &nbsp;The statements also do not include synergies that may be achieved, such as the combination of similar operations and functions, closing of redundant facilities, increased manufacturing capacity and utilization, and increased sales penetration to new markets or channels. &nbsp;</P>
<P style="margin:0px"><BR>
<BR></P>
<P style="margin:0px; page-break-before:always"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0 align=center><TR><TD width=225.933></TD><TD width=67.733></TD><TD width=15.4></TD><TD width=60></TD><TD width=17.067></TD><TD width=75.8></TD><TD width=17.067></TD><TD width=59.067></TD><TD width=17.067></TD><TD width=70.867></TD><TD width=17.067></TD><TD width=16.667></TD><TD width=61.133></TD></TR>
<TR><TD valign=top width=720.867 colspan=13><P style="margin:0px" align=center>BIO-RAD LABORATORIES, INC.</P>
</TD></TR>
<TR><TD valign=top width=720.867 colspan=13><P style="margin:0px" align=center>UNAUDITED PRO FORMA</P>
</TD></TR>
<TR><TD valign=top width=720.867 colspan=13><P style="margin:0px" align=center>CONDENSED COMBINED BALANCE SHEET</P>
</TD></TR>
<TR><TD valign=top width=720.867 colspan=13><P style="margin:0px" align=center>(in thousands)</P>
</TD></TR>
<TR><TD valign=top width=720.867 colspan=13><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=225.933><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=494.933 colspan=12><P style="margin:0px" align=center>June 30, 2007</P>
</TD></TR>
<TR><TD valign=top width=225.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=67.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=60><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=75.8><P style="margin:0px; font-size:10.667px" align=center>Carve</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=59.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=70.867><P style="margin:0px; font-size:10.667px" align=center>Preliminary</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.133><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=225.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=67.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=60><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=75.8><P style="margin:0px; font-size:10.667px" align=center>Out</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=59.067><P style="margin:0px; font-size:10.667px">Adjusted</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=70.867><P style="margin:0px; font-size:10.667px" align=center>Pro Forma </P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.133><P style="margin:0px; font-size:10.667px" align=center>Pro Forma</P>
</TD></TR>
<TR><TD valign=top width=225.933><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=67.733><P style="margin:0px; font-size:10.667px" align=center>Bio-Rad</P>
</TD><TD valign=top width=15.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=60><P style="margin:0px; font-size:10.667px" align=center>DiaMed</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=75.8><P style="margin:0px; font-size:10.667px">Adjustment</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=59.067><P style="margin:0px; font-size:10.667px">DiaMed</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=70.867><P style="margin:0px; font-size:10.667px" align=center>Adjustments</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=61.133><P style="margin:0px; font-size:10.667px" align=center>Combined</P>
</TD></TR>
<TR><TD valign=top width=225.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=67.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=60><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=75.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=59.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=70.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.133><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=225.933><P style="margin:0px; font-size:10.667px">ASSETS:</P>
</TD><TD valign=top width=67.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=60><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=75.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=59.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=70.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.133><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=225.933><P style="margin:0px; font-size:10.667px">Cash and cash equivalents</P>
</TD><TD valign=top width=67.733><P style="margin:0px; font-size:10.667px" align=right>$ &nbsp;&nbsp;&nbsp;232,403&nbsp;</P>
</TD><TD valign=top width=15.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=60><P style="margin:0px; font-size:10.667px" align=right>$ &nbsp;&nbsp;21, 387&nbsp;</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=75.8><P style="margin:0px; font-size:10.667px" align=right>$ (560)</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=59.067><P style="margin:0px; font-size:10.667px" align=right>$ 20,827&nbsp;</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=70.867><P style="margin:0px; font-size:10.667px" align=right>$ (198,286)</P>
</TD><TD valign=top width=17.067><P style="margin:0px; font-size:10.667px">a</P>
</TD><TD valign=top width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.133><P style="margin:0px; font-size:10.667px" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;54,944&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=225.933><P style="margin:0px; font-size:10.667px">Short-term investments</P>
</TD><TD valign=top width=67.733><P style="margin:0px; font-size:10.667px" align=right>270,463&nbsp;</P>
</TD><TD valign=top width=15.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=60><P style="margin:0px; font-size:10.667px" align=right>36&nbsp;</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=75.8><P style="margin:0px; font-size:10.667px" align=right>--&nbsp;</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=59.067><P style="margin:0px; font-size:10.667px" align=right>36&nbsp;</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=70.867><P style="margin:0px; font-size:10.667px" align=right>(200,000)</P>
</TD><TD valign=top width=17.067><P style="margin:0px; font-size:10.667px">a</P>
</TD><TD valign=top width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.133><P style="margin:0px; font-size:10.667px" align=right>70,499&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=225.933><P style="margin:0px; font-size:10.667px">Accounts receivable, net</P>
</TD><TD valign=top width=67.733><P style="margin:0px; font-size:10.667px" align=right>303,266&nbsp;</P>
</TD><TD valign=top width=15.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=60><P style="margin:0px; font-size:10.667px" align=right>51,173&nbsp;</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=75.8><P style="margin:0px; font-size:10.667px" align=right>(100)</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=59.067><P style="margin:0px; font-size:10.667px" align=right>51,073&nbsp;</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=70.867><P style="margin:0px; font-size:10.667px" align=right>(786)</P>
</TD><TD valign=top width=17.067><P style="margin:0px; font-size:10.667px">b</P>
</TD><TD valign=top width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.133><P style="margin:0px; font-size:10.667px" align=right>353,553&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=225.933><P style="margin:0px; font-size:10.667px">Inventories, net</P>
</TD><TD valign=top width=67.733><P style="margin:0px; font-size:10.667px" align=right>265,185&nbsp;</P>
</TD><TD valign=top width=15.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=60><P style="margin:0px; font-size:10.667px" align=right>55,034&nbsp;</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=75.8><P style="margin:0px; font-size:10.667px" align=right>(244)</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=59.067><P style="margin:0px; font-size:10.667px" align=right>54,790&nbsp;</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=70.867><P style="margin:0px; font-size:10.667px" align=right>--&nbsp;</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.133><P style="margin:0px; font-size:10.667px" align=right>319,975&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=225.933><P style="margin:0px; font-size:10.667px">Other current assets</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=67.733><P style="margin:0px; font-size:10.667px" align=right>96,422&nbsp;</P>
</TD><TD valign=top width=15.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=60><P style="margin:0px; font-size:10.667px" align=right>15,873&nbsp;</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=75.8><P style="margin:0px; font-size:10.667px" align=right>(336)</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=59.067><P style="margin:0px; font-size:10.667px" align=right>15,537&nbsp;</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=70.867><P style="margin:0px; font-size:10.667px" align=right>--&nbsp;</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=61.133><P style="margin:0px; font-size:10.667px" align=right>111,959&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=225.933><P style="margin:0px; text-indent:19.2px; font-size:10.667px">Total current assets</P>
</TD><TD valign=top width=67.733><P style="margin:0px; font-size:10.667px" align=right>1,167,739&nbsp;</P>
</TD><TD valign=top width=15.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=60><P style="margin:0px; font-size:10.667px" align=right>143,503&nbsp;</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=75.8><P style="margin:0px; font-size:10.667px" align=right>(1,240)</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=59.067><P style="margin:0px; font-size:10.667px" align=right>142,263&nbsp;</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=70.867><P style="margin:0px; font-size:10.667px" align=right>(399,072)</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.133><P style="margin:0px; font-size:10.667px" align=right>910,930&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=225.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=67.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=60><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=75.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=59.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=70.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.133><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=225.933><P style="margin:0px; font-size:10.667px">Net property, plant and equipment</P>
</TD><TD valign=top width=67.733><P style="margin:0px; font-size:10.667px" align=right>191,605&nbsp;</P>
</TD><TD valign=top width=15.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=60><P style="margin:0px; font-size:10.667px" align=right>64,285&nbsp;</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=75.8><P style="margin:0px; font-size:10.667px" align=right>(7,613)</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=59.067><P style="margin:0px; font-size:10.667px" align=right>56,672&nbsp;</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=70.867><P style="margin:0px; font-size:10.667px" align=right>--&nbsp;</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.133><P style="margin:0px; font-size:10.667px" align=right>248,277&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=225.933><P style="margin:0px; font-size:10.667px">Goodwill</P>
</TD><TD valign=top width=67.733><P style="margin:0px; font-size:10.667px" align=right>121,492&nbsp;</P>
</TD><TD valign=top width=15.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=60><P style="margin:0px; font-size:10.667px" align=right>1,246&nbsp;</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=75.8><P style="margin:0px; font-size:10.667px" align=right>--&nbsp;</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=59.067><P style="margin:0px; font-size:10.667px" align=right>1,246&nbsp;</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=70.867><P style="margin:0px; font-size:10.667px" align=right>242,866&nbsp;</P>
</TD><TD valign=top width=17.067><P style="margin:0px; font-size:10.667px">c</P>
</TD><TD valign=top width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.133><P style="margin:0px; font-size:10.667px" align=right>365,604&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=225.933><P style="margin:0px; font-size:10.667px">Purchased intangibles, net</P>
</TD><TD valign=top width=67.733><P style="margin:0px; font-size:10.667px" align=right>44,272&nbsp;</P>
</TD><TD valign=top width=15.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=60><P style="margin:0px; font-size:10.667px" align=right>1,390&nbsp;</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=75.8><P style="margin:0px; font-size:10.667px" align=right>--&nbsp;</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=59.067><P style="margin:0px; font-size:10.667px" align=right>1,390&nbsp;</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=70.867><P style="margin:0px; font-size:10.667px" align=right>127,550&nbsp;</P>
</TD><TD valign=top width=17.067><P style="margin:0px; font-size:10.667px">d</P>
</TD><TD valign=top width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.133><P style="margin:0px; font-size:10.667px" align=right>173,212&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=225.933><P style="margin:0px; font-size:10.667px">Other non-current assets</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=67.733><P style="margin:0px; font-size:10.667px" align=right>129,635&nbsp;</P>
</TD><TD valign=top width=15.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=60><P style="margin:0px; font-size:10.667px" align=right>3,511&nbsp;</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=75.8><P style="margin:0px; font-size:10.667px" align=right>13&nbsp;</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=59.067><P style="margin:0px; font-size:10.667px" align=right>3,524&nbsp;</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=70.867><P style="margin:0px; font-size:10.667px" align=right>(856)&nbsp;</P>
</TD><TD valign=top width=17.067><P style="margin:0px; font-size:10.667px">e</P>
</TD><TD valign=top width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=61.133><P style="margin:0px; font-size:10.667px" align=right>132,303&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=225.933><P style="margin:0px; text-indent:19.2px; font-size:10.667px">Total assets</P>
</TD><TD style="border-bottom:2.667px double #000000" valign=top width=67.733><P style="margin:0px; font-size:10.667px" align=right>$ 1,654,743&nbsp;</P>
</TD><TD valign=top width=15.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:2.667px double #000000" valign=top width=60><P style="margin:0px; font-size:10.667px" align=right>$ &nbsp;213,935&nbsp;</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:2.667px double #000000" valign=top width=75.8><P style="margin:0px; font-size:10.667px" align=right>$(8,840)</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:2.667px double #000000" valign=top width=59.067><P style="margin:0px; font-size:10.667px" align=right>$ 205,095&nbsp;</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:2.667px double #000000" valign=top width=70.867><P style="margin:0px; font-size:10.667px" align=right>$ (29,512)</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:2.667px double #000000" valign=top width=61.133><P style="margin:0px; font-size:10.667px" align=right>$ 1,830,326&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=225.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=67.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=60><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=75.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=59.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=70.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.133><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=293.667 colspan=2><P style="margin:0px; font-size:10.667px">LIABILITIES AND STOCKHOLDERS&#146; EQUITY:</P>
</TD><TD valign=top width=15.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=60><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=75.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=59.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=70.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.133><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=225.933><P style="margin:0px; font-size:10.667px">Accounts payable</P>
</TD><TD valign=top width=67.733><P style="margin:0px; font-size:10.667px" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;67,229&nbsp;</P>
</TD><TD valign=top width=15.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=60><P style="margin:0px; font-size:10.667px" align=right>$ &nbsp;15,302&nbsp;</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=75.8><P style="margin:0px; font-size:10.667px" align=right>$ &nbsp;(10)</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=59.067><P style="margin:0px; font-size:10.667px" align=right>$ &nbsp;15,292&nbsp;</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=70.867><P style="margin:0px; font-size:10.667px" align=right>$ &nbsp;(786)</P>
</TD><TD valign=top width=17.067><P style="margin:0px; font-size:10.667px">b</P>
</TD><TD valign=top width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.133><P style="margin:0px; font-size:10.667px" align=right>$ 81,735&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=225.933><P style="margin:0px; font-size:10.667px">Accrued payroll and employee benefits</P>
</TD><TD valign=top width=67.733><P style="margin:0px; font-size:10.667px" align=right>82,436&nbsp;</P>
</TD><TD valign=top width=15.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=60><P style="margin:0px; font-size:10.667px" align=right>--&nbsp;</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=75.8><P style="margin:0px; font-size:10.667px" align=right>--&nbsp;</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=59.067><P style="margin:0px; font-size:10.667px" align=right>--&nbsp;</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=70.867><P style="margin:0px; font-size:10.667px" align=right>--&nbsp;</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.133><P style="margin:0px; font-size:10.667px" align=right>82,436&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=225.933><P style="margin:0px; font-size:10.667px">Notes payable and current portion of </P>
</TD><TD valign=top width=67.733><P style="margin:0px; font-size:10.667px" align=right>&nbsp;</P>
</TD><TD valign=top width=15.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=60><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=75.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=59.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=70.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.133><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=225.933><P style="margin:0px; text-indent:9.6px; font-size:10.667px">long-term debt</P>
</TD><TD valign=top width=67.733><P style="margin:0px; font-size:10.667px" align=right>4,604&nbsp;</P>
</TD><TD valign=top width=15.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=60><P style="margin:0px; font-size:10.667px" align=right>20,640&nbsp;</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=75.8><P style="margin:0px; font-size:10.667px" align=right>--&nbsp;</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=59.067><P style="margin:0px; font-size:10.667px" align=right>20,640&nbsp;</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=70.867><P style="margin:0px; font-size:10.667px" align=right>--&nbsp;</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.133><P style="margin:0px; font-size:10.667px" align=right>25,244&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=225.933><P style="margin:0px; font-size:10.667px">Accrued royalties</P>
</TD><TD valign=top width=67.733><P style="margin:0px; font-size:10.667px" align=right>31,705&nbsp;</P>
</TD><TD valign=top width=15.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=60><P style="margin:0px; font-size:10.667px" align=right>--&nbsp;</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=75.8><P style="margin:0px; font-size:10.667px" align=right>--&nbsp;</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=59.067><P style="margin:0px; font-size:10.667px" align=right>--&nbsp;</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=70.867><P style="margin:0px; font-size:10.667px" align=right>--&nbsp;</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.133><P style="margin:0px; font-size:10.667px" align=right>31,705&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=225.933><P style="margin:0px; font-size:10.667px">Accrued liabilities</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=67.733><P style="margin:0px; font-size:10.667px" align=right>95,875&nbsp;</P>
</TD><TD valign=top width=15.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=60><P style="margin:0px; font-size:10.667px" align=right>40,503&nbsp;</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=75.8><P style="margin:0px; font-size:10.667px" align=right>(1,716)</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=59.067><P style="margin:0px; font-size:10.667px" align=right>38,787&nbsp;</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=70.867><P style="margin:0px; font-size:10.667px" align=right>5,986&nbsp;</P>
</TD><TD valign=top width=17.067><P style="margin:0px; font-size:10.667px">e</P>
</TD><TD valign=top width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=61.133><P style="margin:0px; font-size:10.667px" align=right>140,648&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=225.933><P style="margin:0px; text-indent:19.2px; font-size:10.667px">Total current liabilities</P>
</TD><TD valign=top width=67.733><P style="margin:0px; font-size:10.667px" align=right>281,849&nbsp;</P>
</TD><TD valign=top width=15.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=60><P style="margin:0px; font-size:10.667px" align=right>76,445&nbsp;</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=75.8><P style="margin:0px; font-size:10.667px" align=right>(1,726)</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=59.067><P style="margin:0px; font-size:10.667px" align=right>74,719&nbsp;</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=70.867><P style="margin:0px; font-size:10.667px" align=right>5,200&nbsp;</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.133><P style="margin:0px; font-size:10.667px" align=right>361,768&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=225.933><P style="margin:0px; font-size:10.667px">Long term debt</P>
</TD><TD valign=top width=67.733><P style="margin:0px; font-size:10.667px" align=right>426,165&nbsp;</P>
</TD><TD valign=top width=15.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=60><P style="margin:0px; font-size:10.667px" align=right>24,431&nbsp;</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=75.8><P style="margin:0px; font-size:10.667px" align=right>--&nbsp;</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=59.067><P style="margin:0px; font-size:10.667px" align=right>24,431&nbsp;</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=70.867><P style="margin:0px; font-size:10.667px" align=right>--&nbsp;</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.133><P style="margin:0px; font-size:10.667px" align=right>450,596&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=225.933><P style="margin:0px; font-size:10.667px">Other long-term liabilities</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=67.733><P style="margin:0px; font-size:10.667px" align=right>49,930&nbsp;</P>
</TD><TD valign=top width=15.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=60><P style="margin:0px; font-size:10.667px" align=right>12,178&nbsp;</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=75.8><P style="margin:0px; font-size:10.667px" align=right>(607)</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=59.067><P style="margin:0px; font-size:10.667px" align=right>11,571&nbsp;</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=70.867><P style="margin:0px; font-size:10.667px" align=right>36,949&nbsp;</P>
</TD><TD valign=top width=17.067><P style="margin:0px; font-size:10.667px">f</P>
</TD><TD valign=top width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=61.133><P style="margin:0px; font-size:10.667px" align=right>98,450&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=225.933><P style="margin:0px; text-indent:19.2px; font-size:10.667px">Total liabilities</P>
</TD><TD valign=top width=67.733><P style="margin:0px; font-size:10.667px" align=right>757,944&nbsp;</P>
</TD><TD valign=top width=15.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=60><P style="margin:0px; font-size:10.667px" align=right>113,054&nbsp;</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=75.8><P style="margin:0px; font-size:10.667px" align=right>(2,333)</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=59.067><P style="margin:0px; font-size:10.667px" align=right>110,721&nbsp;</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=70.867><P style="margin:0px; font-size:10.667px" align=right>42,149&nbsp;</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.133><P style="margin:0px; font-size:10.667px" align=right>910,814&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=225.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=67.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=60><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=75.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=59.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=70.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.133><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=225.933><P style="margin:0px; font-size:10.667px">Minority interest</P>
</TD><TD valign=top width=67.733><P style="margin:0px; font-size:10.667px" align=right>--&nbsp;</P>
</TD><TD valign=top width=15.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=60><P style="margin:0px; font-size:10.667px" align=right>11,009&nbsp;</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=75.8><P style="margin:0px; font-size:10.667px" align=right>--&nbsp;</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=59.067><P style="margin:0px; font-size:10.667px" align=right>11,009&nbsp;</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=70.867><P style="margin:0px; font-size:10.667px" align=right>11,704&nbsp;</P>
</TD><TD valign=top width=17.067><P style="margin:0px; font-size:10.667px">g</P>
</TD><TD valign=top width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.133><P style="margin:0px; font-size:10.667px" align=right>22,713&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=225.933><P style="margin:0px; font-size:10.667px">Stockholders&#146; equity</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=67.733><P style="margin:0px; font-size:10.667px" align=right>896,799&nbsp;</P>
</TD><TD valign=top width=15.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=60><P style="margin:0px; font-size:10.667px" align=right>89,872&nbsp;</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=75.8><P style="margin:0px; font-size:10.667px" align=right>(6,507)</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=59.067><P style="margin:0px; font-size:10.667px" align=right>83,365&nbsp;</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=70.867><P style="margin:0px; font-size:10.667px" align=right>(83,365)</P>
</TD><TD valign=top width=17.067><P style="margin:0px; font-size:10.667px">h</P>
</TD><TD valign=top width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=61.133><P style="margin:0px; font-size:10.667px" align=right>896,799&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=225.933><P style="margin:0px; text-indent:28.8px; font-size:10.667px">Total liabilities, minority interests and</P>
</TD><TD valign=top width=67.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=60><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=75.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=59.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=70.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.133><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=225.933><P style="margin:0px; text-indent:38.4px; font-size:10.667px">stockholders&#146; equity</P>
</TD><TD style="border-bottom:2.667px double #000000" valign=top width=67.733><P style="margin:0px; font-size:10.667px" align=right>$ 1,654,743&nbsp;</P>
</TD><TD valign=top width=15.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:2.667px double #000000" valign=top width=60><P style="margin:0px; font-size:10.667px" align=right>$ 213,935&nbsp;</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:2.667px double #000000" valign=top width=75.8><P style="margin:0px; font-size:10.667px" align=right>$( 8,840)</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:2.667px double #000000" valign=top width=59.067><P style="margin:0px; font-size:10.667px" align=right>$ 205,095&nbsp;</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:2.667px double #000000" valign=top width=70.867><P style="margin:0px; font-size:10.667px" align=right>$ (29,512)</P>
</TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:2.667px double #000000" valign=top width=61.133><P style="margin:0px; font-size:10.667px" align=right>$ 1,830,326&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=225.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=67.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=60><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=75.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=59.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=70.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.133><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=225.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=67.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=60><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=75.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=59.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=70.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=17.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.133><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=720.867 colspan=13><P style="margin:0px; font-size:12px">The accompanying notes are an integral part of these unaudited pro forma condensed combined financial statements.</P>
</TD></TR>
</TABLE>
<P style="line-height:14.667px; margin:0px; font-size:12px">.</P>
<P style="margin:0px"><BR>
<BR></P>
<P style="margin:0px" align=center>2</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; page-break-before:always"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=223.8></TD><TD width=69.733></TD><TD width=12></TD><TD width=60.2></TD><TD width=5.333></TD><TD width=66.4></TD><TD width=7.6></TD><TD width=60.2></TD><TD width=13.933></TD><TD width=71.733></TD><TD width=12></TD><TD width=5.333></TD><TD width=72.533></TD></TR>
<TR><TD width=680.8 colspan=13><P style="margin:0px" align=center>BIO-RAD LABORATORIES, INC.</P>
</TD></TR>
<TR><TD width=680.8 colspan=13><P style="margin:0px" align=center>UNAUDITED PRO FORMA CONDENSED</P>
</TD></TR>
<TR><TD width=680.8 colspan=13><P style="margin:0px" align=center>COMBINED STATEMENT OF OPERATIONS</P>
</TD></TR>
<TR><TD width=680.8 colspan=13><P style="margin:0px" align=center>(in thousands except per share amounts)</P>
</TD></TR>
<TR><TD width=223.8><P style="font-size:2pt">&nbsp;</P></TD><TD width=457 colspan=12><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>Year Ended December 31, 2006</P>
</TD></TR>
<TR><TD width=223.8><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000" width=69.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000" width=12><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000" width=60.2><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000" width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000" valign=top width=66.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>Carve</P>
</TD><TD style="border-top:1px solid #000000" valign=top width=7.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000" valign=top width=60.2><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000" valign=top width=13.933><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000" width=71.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>Preliminary</P>
</TD><TD style="border-top:1px solid #000000" width=12><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000" valign=top width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000" width=72.533><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD width=223.8><P style="font-size:2pt">&nbsp;</P></TD><TD width=69.733><P style="font-size:2pt">&nbsp;</P></TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="font-size:2pt">&nbsp;</P></TD><TD width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=66.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>Out</P>
</TD><TD valign=top width=7.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=60.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>Adjusted</P>
</TD><TD valign=top width=13.933><P style="font-size:2pt">&nbsp;</P></TD><TD width=71.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>Pro Forma</P>
</TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD width=72.533><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>Pro Forma</P>
</TD></TR>
<TR><TD width=223.8><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" width=69.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>Bio-Rad</P>
</TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" width=60.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>DiaMed</P>
</TD><TD width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=66.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>Adjustment</P>
</TD><TD valign=top width=7.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=60.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>DiaMed</P>
</TD><TD valign=top width=13.933><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" width=71.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>Adjustments</P>
</TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" width=72.533><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>Combined</P>
</TD></TR>
<TR><TD width=223.8><P style="font-size:2pt">&nbsp;</P></TD><TD width=69.733><P style="font-size:2pt">&nbsp;</P></TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="font-size:2pt">&nbsp;</P></TD><TD width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=66.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=7.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=60.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=13.933><P style="font-size:2pt">&nbsp;</P></TD><TD width=71.733><P style="font-size:2pt">&nbsp;</P></TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD width=72.533><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD width=223.8><P style="line-height:14.667px; margin:0px; font-size:12px">Net sales</P>
</TD><TD width=69.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$ 1,273,930&nbsp;</P>
</TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$ &nbsp;204,659&nbsp;</P>
</TD><TD width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD width=66.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$ &nbsp;&nbsp;&nbsp;(816)</P>
</TD><TD width=7.6><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$ 203,843&nbsp;</P>
</TD><TD width=13.933><P style="font-size:2pt">&nbsp;</P></TD><TD width=71.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$ &nbsp;&nbsp;(1,533)</P>
</TD><TD width=12><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>i</P>
</TD><TD width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD width=72.533><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$ 1,476,240&nbsp;</P>
</TD></TR>
<TR><TD width=223.8><P style="line-height:14.667px; margin:0px; text-indent:19.2px; font-size:12px">Cost of goods sold</P>
</TD><TD style="border-bottom:1px solid #000000" width=69.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>561,394&nbsp;</P>
</TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" width=60.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>99,337&nbsp;</P>
</TD><TD width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" width=66.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>--&nbsp;</P>
</TD><TD width=7.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" width=60.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>99,337&nbsp;</P>
</TD><TD width=13.933><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" width=71.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>12,650&nbsp;</P>
</TD><TD width=12><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>j</P>
</TD><TD width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" width=72.533><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>673,381&nbsp;</P>
</TD></TR>
<TR><TD width=223.8><P style="line-height:14.667px; margin:0px; font-size:12px">Gross profit</P>
</TD><TD width=69.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>712,536&nbsp;</P>
</TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>105,322&nbsp;</P>
</TD><TD width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD width=66.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(816)</P>
</TD><TD width=7.6><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>104,506&nbsp;</P>
</TD><TD width=13.933><P style="font-size:2pt">&nbsp;</P></TD><TD width=71.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(14,183)</P>
</TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD width=72.533><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>802,859&nbsp;</P>
</TD></TR>
<TR><TD width=223.8><P style="line-height:14.667px; margin:0px; font-size:12px">Selling, general and administrative expense</P>
</TD><TD width=69.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>438,949&nbsp;</P>
</TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>69,358&nbsp;</P>
</TD><TD width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD width=66.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(4,477)</P>
</TD><TD width=7.6><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>64,881&nbsp;</P>
</TD><TD width=13.933><P style="font-size:2pt">&nbsp;</P></TD><TD width=71.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>12,464&nbsp;</P>
</TD><TD width=12><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>k</P>
</TD><TD width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD width=72.533><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>516,294&nbsp;</P>
</TD></TR>
<TR><TD width=223.8><P style="line-height:14.667px; margin:0px; font-size:12px">Product research and development expense</P>
</TD><TD width=69.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>123,376&nbsp;</P>
</TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>7,162&nbsp;</P>
</TD><TD width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD width=66.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>--&nbsp;</P>
</TD><TD width=7.6><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>7,162&nbsp;</P>
</TD><TD width=13.933><P style="font-size:2pt">&nbsp;</P></TD><TD width=71.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>--&nbsp;</P>
</TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD width=72.533><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>130,538&nbsp;</P>
</TD></TR>
<TR><TD width=223.8><P style="line-height:14.667px; margin:0px; font-size:12px">Purchased in-process research and </P>
</TD><TD width=69.733><P style="font-size:2pt">&nbsp;</P></TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="font-size:2pt">&nbsp;</P></TD><TD width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD width=66.4><P style="font-size:2pt">&nbsp;</P></TD><TD width=7.6><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="font-size:2pt">&nbsp;</P></TD><TD width=13.933><P style="font-size:2pt">&nbsp;</P></TD><TD width=71.733><P style="font-size:2pt">&nbsp;</P></TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD width=72.533><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD width=223.8><P style="line-height:14.667px; margin:0px; text-indent:9.6px; font-size:12px">development expense</P>
</TD><TD width=69.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>4,100&nbsp;</P>
</TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>--&nbsp;</P>
</TD><TD width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD width=66.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>--&nbsp;</P>
</TD><TD width=7.6><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>--&nbsp;</P>
</TD><TD width=13.933><P style="font-size:2pt">&nbsp;</P></TD><TD width=71.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>--&nbsp;</P>
</TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD width=72.533><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>4,100&nbsp;</P>
</TD></TR>
<TR><TD width=223.8><P style="line-height:14.667px; margin:0px; font-size:12px">Interest expense</P>
</TD><TD width=69.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>32,022&nbsp;</P>
</TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>1,767&nbsp;</P>
</TD><TD width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD width=66.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>76&nbsp;</P>
</TD><TD width=7.6><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>1,843&nbsp;</P>
</TD><TD width=13.933><P style="font-size:2pt">&nbsp;</P></TD><TD width=71.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>--&nbsp;</P>
</TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD width=72.533><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>33,865&nbsp;</P>
</TD></TR>
<TR><TD width=223.8><P style="line-height:14.667px; margin:0px; font-size:12px">Other (income) expense, net</P>
</TD><TD style="border-bottom:1px solid #000000" width=69.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(27,938)</P>
</TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" width=60.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(1,407)</P>
</TD><TD width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" width=66.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>1,290&nbsp;</P>
</TD><TD width=7.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" width=60.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(117)</P>
</TD><TD width=13.933><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" width=71.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>18,370 &nbsp;</P>
</TD><TD width=12><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>l</P>
</TD><TD width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" width=72.533><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(9,685)</P>
</TD></TR>
<TR><TD width=223.8><P style="line-height:14.667px; margin:0px; font-size:12px">Income before income taxes and</P>
</TD><TD width=69.733><P style="margin:0px; font-size:12px" align=right>&nbsp;</P>
</TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="font-size:2pt">&nbsp;</P></TD><TD width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD width=66.4><P style="margin:0px; font-size:12px" align=right>&nbsp;</P>
</TD><TD width=7.6><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="font-size:2pt">&nbsp;</P></TD><TD width=13.933><P style="font-size:2pt">&nbsp;</P></TD><TD width=71.733><P style="font-size:2pt">&nbsp;</P></TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD width=72.533><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD width=223.8><P style="line-height:14.667px; margin:0px; text-indent:9.6px; font-size:12px">minority interests</P>
</TD><TD width=69.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>142,027</P>
</TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>28,442&nbsp;</P>
</TD><TD width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD width=66.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>2,295</P>
</TD><TD width=7.6><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>30,737&nbsp;</P>
</TD><TD width=13.933><P style="font-size:2pt">&nbsp;</P></TD><TD width=71.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(45,017)</P>
</TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD width=72.533><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>127,747&nbsp;</P>
</TD></TR>
<TR><TD width=223.8><P style="line-height:14.667px; margin:0px; text-indent:19.2px; font-size:12px">Provision for income taxes</P>
</TD><TD width=69.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>38,764&nbsp;</P>
</TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>7,938&nbsp;</P>
</TD><TD width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD width=66.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(15)</P>
</TD><TD width=7.6><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>7,923&nbsp;</P>
</TD><TD width=13.933><P style="font-size:2pt">&nbsp;</P></TD><TD width=71.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(14,453)</P>
</TD><TD width=12><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>m</P>
</TD><TD width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD width=72.533><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>32,234&nbsp;</P>
</TD></TR>
<TR><TD width=223.8><P style="line-height:14.667px; margin:0px; text-indent:19.2px; font-size:12px">Minority interests</P>
</TD><TD style="border-bottom:1px solid #000000" width=69.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>--</P>
</TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" width=60.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>2,497&nbsp;</P>
</TD><TD width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" width=66.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>--</P>
</TD><TD width=7.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" width=60.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>2,497&nbsp;</P>
</TD><TD width=13.933><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" width=71.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>2,853&nbsp;</P>
</TD><TD width=12><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>n</P>
</TD><TD width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" width=72.533><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>5,350&nbsp;</P>
</TD></TR>
<TR><TD width=223.8><P style="line-height:14.667px; margin:0px; font-size:12px">Net income</P>
</TD><TD style="border-bottom:2.667px double #000000" width=69.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$ &nbsp;&nbsp;103,263&nbsp;</P>
</TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:2.667px double #000000" width=60.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$ &nbsp;&nbsp;&nbsp;18,007&nbsp;</P>
</TD><TD width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:2.667px double #000000" width=66.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$ &nbsp;&nbsp;2,310&nbsp;</P>
</TD><TD width=7.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:2.667px double #000000" width=60.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$ &nbsp;20,317&nbsp;</P>
</TD><TD width=13.933><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:2.667px double #000000" width=71.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$ &nbsp;(33,417)</P>
</TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:2.667px double #000000" width=72.533><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$ &nbsp;&nbsp;&nbsp;90,163&nbsp;</P>
</TD></TR>
<TR><TD width=223.8><P style="font-size:2pt">&nbsp;</P></TD><TD width=69.733><P style="font-size:2pt">&nbsp;</P></TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="font-size:2pt">&nbsp;</P></TD><TD width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD width=66.4><P style="font-size:2pt">&nbsp;</P></TD><TD width=7.6><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="font-size:2pt">&nbsp;</P></TD><TD width=13.933><P style="font-size:2pt">&nbsp;</P></TD><TD width=71.733><P style="font-size:2pt">&nbsp;</P></TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD width=72.533><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD width=223.8><P style="line-height:14.667px; margin:0px; font-size:12px">Basic earnings per share:</P>
</TD><TD width=69.733><P style="font-size:2pt">&nbsp;</P></TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="font-size:2pt">&nbsp;</P></TD><TD width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD width=66.4><P style="font-size:2pt">&nbsp;</P></TD><TD width=7.6><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="font-size:2pt">&nbsp;</P></TD><TD width=13.933><P style="font-size:2pt">&nbsp;</P></TD><TD width=71.733><P style="font-size:2pt">&nbsp;</P></TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD width=72.533><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD width=223.8><P style="line-height:14.667px; margin:0px; text-indent:19.2px; font-size:12px">Net income</P>
</TD><TD style="border-bottom:2.667px double #000000" width=69.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.92&nbsp;</P>
</TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="font-size:2pt">&nbsp;</P></TD><TD width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD width=66.4><P style="font-size:2pt">&nbsp;</P></TD><TD width=7.6><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="font-size:2pt">&nbsp;</P></TD><TD width=13.933><P style="font-size:2pt">&nbsp;</P></TD><TD width=71.733><P style="font-size:2pt">&nbsp;</P></TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:2.667px double #000000" width=72.533><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$ &nbsp;&nbsp;3.42&nbsp;</P>
</TD></TR>
<TR><TD width=223.8><P style="line-height:14.667px; margin:0px; text-indent:19.2px; font-size:12px">Weighted average common shares</P>
</TD><TD style="border-bottom:2.667px double #000000" width=69.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>26,376&nbsp;</P>
</TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="font-size:2pt">&nbsp;</P></TD><TD width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD width=66.4><P style="font-size:2pt">&nbsp;</P></TD><TD width=7.6><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="font-size:2pt">&nbsp;</P></TD><TD width=13.933><P style="font-size:2pt">&nbsp;</P></TD><TD width=71.733><P style="font-size:2pt">&nbsp;</P></TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:2.667px double #000000" width=72.533><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>26,376&nbsp;</P>
</TD></TR>
<TR><TD width=223.8><P style="font-size:2pt">&nbsp;</P></TD><TD width=69.733><P style="font-size:2pt">&nbsp;</P></TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="font-size:2pt">&nbsp;</P></TD><TD width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD width=66.4><P style="font-size:2pt">&nbsp;</P></TD><TD width=7.6><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="font-size:2pt">&nbsp;</P></TD><TD width=13.933><P style="font-size:2pt">&nbsp;</P></TD><TD width=71.733><P style="font-size:2pt">&nbsp;</P></TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD width=72.533><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD width=223.8><P style="line-height:14.667px; margin:0px; font-size:12px">Diluted earnings per share:</P>
</TD><TD width=69.733><P style="font-size:2pt">&nbsp;</P></TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="font-size:2pt">&nbsp;</P></TD><TD width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD width=66.4><P style="font-size:2pt">&nbsp;</P></TD><TD width=7.6><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="font-size:2pt">&nbsp;</P></TD><TD width=13.933><P style="font-size:2pt">&nbsp;</P></TD><TD width=71.733><P style="font-size:2pt">&nbsp;</P></TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD width=72.533><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD width=223.8><P style="line-height:14.667px; margin:0px; text-indent:19.2px; font-size:12px">Net income</P>
</TD><TD style="border-bottom:2.667px double #000000" width=69.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.83&nbsp;</P>
</TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="font-size:2pt">&nbsp;</P></TD><TD width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD width=66.4><P style="font-size:2pt">&nbsp;</P></TD><TD width=7.6><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="font-size:2pt">&nbsp;</P></TD><TD width=13.933><P style="font-size:2pt">&nbsp;</P></TD><TD width=71.733><P style="font-size:2pt">&nbsp;</P></TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:2.667px double #000000" width=72.533><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$ &nbsp;3.35&nbsp;</P>
</TD></TR>
<TR><TD width=223.8><P style="line-height:14.667px; margin:0px; text-indent:19.2px; font-size:12px">Weighted average common shares</P>
</TD><TD style="border-bottom:2.667px double #000000" width=69.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>26,949&nbsp;</P>
</TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="font-size:2pt">&nbsp;</P></TD><TD width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD width=66.4><P style="font-size:2pt">&nbsp;</P></TD><TD width=7.6><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="font-size:2pt">&nbsp;</P></TD><TD width=13.933><P style="font-size:2pt">&nbsp;</P></TD><TD width=71.733><P style="font-size:2pt">&nbsp;</P></TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:2.667px double #000000" width=72.533><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>26,949&nbsp;</P>
</TD></TR>
<TR><TD width=223.8><P style="font-size:2pt">&nbsp;</P></TD><TD width=69.733><P style="font-size:2pt">&nbsp;</P></TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="font-size:2pt">&nbsp;</P></TD><TD width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD width=66.4><P style="font-size:2pt">&nbsp;</P></TD><TD width=7.6><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="font-size:2pt">&nbsp;</P></TD><TD width=13.933><P style="font-size:2pt">&nbsp;</P></TD><TD width=71.733><P style="font-size:2pt">&nbsp;</P></TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD width=72.533><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD width=223.8><P style="font-size:2pt">&nbsp;</P></TD><TD width=69.733><P style="font-size:2pt">&nbsp;</P></TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="font-size:2pt">&nbsp;</P></TD><TD width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD width=66.4><P style="font-size:2pt">&nbsp;</P></TD><TD width=7.6><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="font-size:2pt">&nbsp;</P></TD><TD width=13.933><P style="font-size:2pt">&nbsp;</P></TD><TD width=71.733><P style="font-size:2pt">&nbsp;</P></TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD width=72.533><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD width=223.8><P style="font-size:2pt">&nbsp;</P></TD><TD width=69.733><P style="font-size:2pt">&nbsp;</P></TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="font-size:2pt">&nbsp;</P></TD><TD width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD width=66.4><P style="font-size:2pt">&nbsp;</P></TD><TD width=7.6><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="font-size:2pt">&nbsp;</P></TD><TD width=13.933><P style="font-size:2pt">&nbsp;</P></TD><TD width=71.733><P style="font-size:2pt">&nbsp;</P></TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD width=72.533><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD width=223.8><P style="font-size:2pt">&nbsp;</P></TD><TD width=69.733><P style="font-size:2pt">&nbsp;</P></TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="font-size:2pt">&nbsp;</P></TD><TD width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD width=66.4><P style="font-size:2pt">&nbsp;</P></TD><TD width=7.6><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="font-size:2pt">&nbsp;</P></TD><TD width=13.933><P style="font-size:2pt">&nbsp;</P></TD><TD width=71.733><P style="font-size:2pt">&nbsp;</P></TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD width=72.533><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD width=680.8 colspan=13><P style="line-height:14.667px; margin:0px; font-size:12px">The accompanying notes are an integral part of these unaudited pro forma condensed combined financial statements.</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR>
<BR></P>
<P style="margin:0px" align=center>3</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; page-break-before:always"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=223.8></TD><TD width=69.667></TD><TD width=12></TD><TD width=60.2></TD><TD width=5.333></TD><TD width=66.4></TD><TD width=7.6></TD><TD width=60.2></TD><TD width=13.933></TD><TD width=71.733></TD><TD width=12></TD><TD width=17.933></TD><TD width=72></TD></TR>
<TR><TD width=692.8 colspan=13><P style="margin:0px" align=center>BIO-RAD LABORATORIES, INC.</P>
</TD></TR>
<TR><TD width=692.8 colspan=13><P style="margin:0px" align=center>UNAUDITED PRO FORMA CONDENSED</P>
</TD></TR>
<TR><TD width=692.8 colspan=13><P style="margin:0px" align=center>COMBINED STATEMENT OF OPERATIONS</P>
</TD></TR>
<TR><TD width=692.8 colspan=13><P style="margin:0px" align=center>(in thousands except per share amounts)</P>
</TD></TR>
<TR><TD width=692.8 colspan=13><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD width=223.8><P style="font-size:2pt">&nbsp;</P></TD><TD width=469 colspan=12><P style="margin:0px" align=center>Six Months Ended June 30, 2007</P>
</TD></TR>
<TR><TD width=223.8><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000" width=69.667><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000" width=12><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000" width=60.2><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000" width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000" width=66.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>Carve</P>
</TD><TD style="border-top:1px solid #000000" width=7.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000" width=60.2><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000" width=13.933><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000" width=71.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>Preliminary</P>
</TD><TD style="border-top:1px solid #000000" width=12><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000" width=17.933><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000" width=72><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD width=223.8><P style="font-size:2pt">&nbsp;</P></TD><TD width=69.667><P style="font-size:2pt">&nbsp;</P></TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="font-size:2pt">&nbsp;</P></TD><TD width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD width=66.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>Out</P>
</TD><TD width=7.6><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>Adjusted</P>
</TD><TD width=13.933><P style="font-size:2pt">&nbsp;</P></TD><TD width=71.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>Pro Forma</P>
</TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=17.933><P style="font-size:2pt">&nbsp;</P></TD><TD width=72><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>Pro Forma</P>
</TD></TR>
<TR><TD width=223.8><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" width=69.667><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>Bio-Rad</P>
</TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" width=60.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>DiaMed</P>
</TD><TD width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" width=66.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>Adjustment</P>
</TD><TD width=7.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" width=60.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>DiaMed</P>
</TD><TD width=13.933><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" width=71.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>Adjustments</P>
</TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=17.933><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" width=72><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>Combined</P>
</TD></TR>
<TR><TD width=223.8><P style="font-size:2pt">&nbsp;</P></TD><TD width=69.667><P style="font-size:2pt">&nbsp;</P></TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="font-size:2pt">&nbsp;</P></TD><TD width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=66.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=7.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=60.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=13.933><P style="font-size:2pt">&nbsp;</P></TD><TD width=71.733><P style="font-size:2pt">&nbsp;</P></TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=17.933><P style="font-size:2pt">&nbsp;</P></TD><TD width=72><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD width=223.8><P style="line-height:14.667px; margin:0px; font-size:12px">Net sales</P>
</TD><TD width=69.667><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$ &nbsp;661,622&nbsp;</P>
</TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$ &nbsp;109,109&nbsp;</P>
</TD><TD width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD width=66.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$ &nbsp;&nbsp;&nbsp;(81)</P>
</TD><TD width=7.6><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$ 109,028&nbsp;</P>
</TD><TD width=13.933><P style="font-size:2pt">&nbsp;</P></TD><TD width=71.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$ &nbsp;&nbsp;(803)</P>
</TD><TD width=12><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>i</P>
</TD><TD width=17.933><P style="font-size:2pt">&nbsp;</P></TD><TD width=72><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$ &nbsp;&nbsp;769,847&nbsp;</P>
</TD></TR>
<TR><TD width=223.8><P style="line-height:14.667px; margin:0px; text-indent:19.2px; font-size:12px">Cost of goods sold</P>
</TD><TD style="border-bottom:1px solid #000000" width=69.667><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>292,250&nbsp;</P>
</TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" width=60.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>44,397&nbsp;</P>
</TD><TD width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" width=66.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>--&nbsp;</P>
</TD><TD width=7.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" width=60.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>44,397&nbsp;</P>
</TD><TD width=13.933><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" width=71.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>6,289&nbsp;</P>
</TD><TD width=12><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>j</P>
</TD><TD width=17.933><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" width=72><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>342,936&nbsp;</P>
</TD></TR>
<TR><TD width=223.8><P style="line-height:14.667px; margin:0px; font-size:12px">Gross profit</P>
</TD><TD width=69.667><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>369,372&nbsp;</P>
</TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>64,712&nbsp;</P>
</TD><TD width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD width=66.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(81)</P>
</TD><TD width=7.6><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>64,631&nbsp;</P>
</TD><TD width=13.933><P style="font-size:2pt">&nbsp;</P></TD><TD width=71.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(7,092)</P>
</TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=17.933><P style="font-size:2pt">&nbsp;</P></TD><TD width=72><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>426,911&nbsp;</P>
</TD></TR>
<TR><TD width=223.8><P style="line-height:14.667px; margin:0px; font-size:12px">Selling, general and administrative expense</P>
</TD><TD width=69.667><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>227,301&nbsp;</P>
</TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>41,996&nbsp;</P>
</TD><TD width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD width=66.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(2,723)</P>
</TD><TD width=7.6><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>39,273&nbsp;</P>
</TD><TD width=13.933><P style="font-size:2pt">&nbsp;</P></TD><TD width=71.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>6,232&nbsp;</P>
</TD><TD width=12><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>k</P>
</TD><TD width=17.933><P style="font-size:2pt">&nbsp;</P></TD><TD width=72><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>272,806&nbsp;</P>
</TD></TR>
<TR><TD width=223.8><P style="line-height:14.667px; margin:0px; font-size:12px">Product research and development expense</P>
</TD><TD width=69.667><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>67,535&nbsp;</P>
</TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>5,119&nbsp;</P>
</TD><TD width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD width=66.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>--&nbsp;</P>
</TD><TD width=7.6><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>5,119&nbsp;</P>
</TD><TD width=13.933><P style="font-size:2pt">&nbsp;</P></TD><TD width=71.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>--&nbsp;</P>
</TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=17.933><P style="font-size:2pt">&nbsp;</P></TD><TD width=72><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>72,654&nbsp;</P>
</TD></TR>
<TR><TD width=223.8><P style="line-height:14.667px; margin:0px; font-size:12px">Purchased in-process research and </P>
</TD><TD width=69.667><P style="font-size:2pt">&nbsp;</P></TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="font-size:2pt">&nbsp;</P></TD><TD width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD width=66.4><P style="font-size:2pt">&nbsp;</P></TD><TD width=7.6><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="font-size:2pt">&nbsp;</P></TD><TD width=13.933><P style="font-size:2pt">&nbsp;</P></TD><TD width=71.733><P style="font-size:2pt">&nbsp;</P></TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=17.933><P style="font-size:2pt">&nbsp;</P></TD><TD width=72><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD width=223.8><P style="line-height:14.667px; margin:0px; text-indent:9.6px; font-size:12px">development expense</P>
</TD><TD width=69.667><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>--&nbsp;</P>
</TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>--&nbsp;</P>
</TD><TD width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD width=66.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>--&nbsp;</P>
</TD><TD width=7.6><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>--&nbsp;</P>
</TD><TD width=13.933><P style="font-size:2pt">&nbsp;</P></TD><TD width=71.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>--&nbsp;</P>
</TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=17.933><P style="font-size:2pt">&nbsp;</P></TD><TD width=72><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>--&nbsp;</P>
</TD></TR>
<TR><TD width=223.8><P style="line-height:14.667px; margin:0px; font-size:12px">Interest expense</P>
</TD><TD width=69.667><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>15,736&nbsp;</P>
</TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>810&nbsp;</P>
</TD><TD width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD width=66.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>50&nbsp;</P>
</TD><TD width=7.6><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>860&nbsp;</P>
</TD><TD width=13.933><P style="font-size:2pt">&nbsp;</P></TD><TD width=71.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>--&nbsp;</P>
</TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=17.933><P style="font-size:2pt">&nbsp;</P></TD><TD width=72><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>16,596&nbsp;</P>
</TD></TR>
<TR><TD width=223.8><P style="line-height:14.667px; margin:0px; font-size:12px">Other (income) expense, net</P>
</TD><TD style="border-bottom:1px solid #000000" width=69.667><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(14,351)</P>
</TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" width=60.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(709)</P>
</TD><TD width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" width=66.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>4,763&nbsp;</P>
</TD><TD width=7.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" width=60.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>4,054&nbsp;</P>
</TD><TD width=13.933><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" width=71.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>9,777&nbsp;</P>
</TD><TD width=12><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>l</P>
</TD><TD width=17.933><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" width=72><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(520)</P>
</TD></TR>
<TR><TD width=223.8><P style="line-height:14.667px; margin:0px; font-size:12px">Income before income taxes and</P>
</TD><TD width=69.667><P style="font-size:2pt">&nbsp;</P></TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="font-size:2pt">&nbsp;</P></TD><TD width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD width=66.4><P style="font-size:2pt">&nbsp;</P></TD><TD width=7.6><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="font-size:2pt">&nbsp;</P></TD><TD width=13.933><P style="font-size:2pt">&nbsp;</P></TD><TD width=71.733><P style="font-size:2pt">&nbsp;</P></TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=17.933><P style="font-size:2pt">&nbsp;</P></TD><TD width=72><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD width=223.8><P style="line-height:14.667px; margin:0px; text-indent:9.6px; font-size:12px">minority interests</P>
</TD><TD width=69.667><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>73,151&nbsp;</P>
</TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>17,496&nbsp;</P>
</TD><TD width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD width=66.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(2,171)</P>
</TD><TD width=7.6><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>15,325&nbsp;</P>
</TD><TD width=13.933><P style="font-size:2pt">&nbsp;</P></TD><TD width=71.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(23,101)</P>
</TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=17.933><P style="font-size:2pt">&nbsp;</P></TD><TD width=72><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>65,375&nbsp;</P>
</TD></TR>
<TR><TD width=223.8><P style="line-height:14.667px; margin:0px; text-indent:19.2px; font-size:12px">Provision for income taxes</P>
</TD><TD width=69.667><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>20,483&nbsp;</P>
</TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>5,513&nbsp;</P>
</TD><TD width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD width=66.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(1,477)</P>
</TD><TD width=7.6><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>4,036&nbsp;</P>
</TD><TD width=13.933><P style="font-size:2pt">&nbsp;</P></TD><TD width=71.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(7,443)</P>
</TD><TD width=12><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>m</P>
</TD><TD width=17.933><P style="font-size:2pt">&nbsp;</P></TD><TD width=72><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>17,076&nbsp;</P>
</TD></TR>
<TR><TD width=223.8><P style="line-height:14.667px; margin:0px; text-indent:19.2px; font-size:12px">Minority interests</P>
</TD><TD style="border-bottom:1px solid #000000" width=69.667><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>--&nbsp;</P>
</TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" width=60.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>1,542&nbsp;</P>
</TD><TD width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" width=66.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>--&nbsp;</P>
</TD><TD width=7.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" width=60.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>1,542&nbsp;</P>
</TD><TD width=13.933><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" width=71.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>1,368&nbsp;</P>
</TD><TD width=12><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>n</P>
</TD><TD width=17.933><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" width=72><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>2,910&nbsp;</P>
</TD></TR>
<TR><TD width=223.8><P style="line-height:14.667px; margin:0px; font-size:12px">Net income</P>
</TD><TD style="border-bottom:2.667px double #000000" width=69.667><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$ &nbsp;52,668&nbsp;</P>
</TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:2.667px double #000000" width=60.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$ &nbsp;&nbsp;10,441&nbsp;</P>
</TD><TD width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:2.667px double #000000" width=66.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$ &nbsp;&nbsp;(694)</P>
</TD><TD width=7.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:2.667px double #000000" width=60.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$ &nbsp;9,747&nbsp;</P>
</TD><TD width=13.933><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:2.667px double #000000" width=71.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$(17,026)</P>
</TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000" width=17.933><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:2.667px double #000000" width=72><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$ &nbsp;&nbsp;&nbsp;45,389&nbsp;</P>
</TD></TR>
<TR><TD width=223.8><P style="font-size:2pt">&nbsp;</P></TD><TD width=69.667><P style="font-size:2pt">&nbsp;</P></TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="font-size:2pt">&nbsp;</P></TD><TD width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD width=66.4><P style="font-size:2pt">&nbsp;</P></TD><TD width=7.6><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="font-size:2pt">&nbsp;</P></TD><TD width=13.933><P style="font-size:2pt">&nbsp;</P></TD><TD width=71.733><P style="font-size:2pt">&nbsp;</P></TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=17.933><P style="font-size:2pt">&nbsp;</P></TD><TD width=72><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD width=223.8><P style="line-height:14.667px; margin:0px; font-size:12px">Basic earnings per share:</P>
</TD><TD width=69.667><P style="font-size:2pt">&nbsp;</P></TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="font-size:2pt">&nbsp;</P></TD><TD width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD width=66.4><P style="font-size:2pt">&nbsp;</P></TD><TD width=7.6><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="font-size:2pt">&nbsp;</P></TD><TD width=13.933><P style="font-size:2pt">&nbsp;</P></TD><TD width=71.733><P style="font-size:2pt">&nbsp;</P></TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=17.933><P style="font-size:2pt">&nbsp;</P></TD><TD width=72><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD width=223.8><P style="line-height:14.667px; margin:0px; text-indent:19.2px; font-size:12px">Net income</P>
</TD><TD style="border-bottom:2.667px double #000000" width=69.667><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$ &nbsp;1.98&nbsp;</P>
</TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="font-size:2pt">&nbsp;</P></TD><TD width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD width=66.4><P style="font-size:2pt">&nbsp;</P></TD><TD width=7.6><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="font-size:2pt">&nbsp;</P></TD><TD width=13.933><P style="font-size:2pt">&nbsp;</P></TD><TD width=71.733><P style="font-size:2pt">&nbsp;</P></TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=17.933><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:2.667px double #000000" width=72><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$ &nbsp;1.71&nbsp;</P>
</TD></TR>
<TR><TD width=223.8><P style="line-height:14.667px; margin:0px; text-indent:19.2px; font-size:12px">Weighted average common shares</P>
</TD><TD style="border-bottom:2.667px double #000000" width=69.667><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>26,619&nbsp;</P>
</TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="font-size:2pt">&nbsp;</P></TD><TD width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD width=66.4><P style="font-size:2pt">&nbsp;</P></TD><TD width=7.6><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="font-size:2pt">&nbsp;</P></TD><TD width=13.933><P style="font-size:2pt">&nbsp;</P></TD><TD width=71.733><P style="font-size:2pt">&nbsp;</P></TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=17.933><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:2.667px double #000000" width=72><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>26,619&nbsp;</P>
</TD></TR>
<TR><TD width=223.8><P style="font-size:2pt">&nbsp;</P></TD><TD width=69.667><P style="font-size:2pt">&nbsp;</P></TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="font-size:2pt">&nbsp;</P></TD><TD width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD width=66.4><P style="font-size:2pt">&nbsp;</P></TD><TD width=7.6><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="font-size:2pt">&nbsp;</P></TD><TD width=13.933><P style="font-size:2pt">&nbsp;</P></TD><TD width=71.733><P style="font-size:2pt">&nbsp;</P></TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=17.933><P style="font-size:2pt">&nbsp;</P></TD><TD width=72><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD width=223.8><P style="line-height:14.667px; margin:0px; font-size:12px">Diluted earnings per share:</P>
</TD><TD width=69.667><P style="font-size:2pt">&nbsp;</P></TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="font-size:2pt">&nbsp;</P></TD><TD width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD width=66.4><P style="font-size:2pt">&nbsp;</P></TD><TD width=7.6><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="font-size:2pt">&nbsp;</P></TD><TD width=13.933><P style="font-size:2pt">&nbsp;</P></TD><TD width=71.733><P style="font-size:2pt">&nbsp;</P></TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=17.933><P style="font-size:2pt">&nbsp;</P></TD><TD width=72><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD width=223.8><P style="line-height:14.667px; margin:0px; text-indent:19.2px; font-size:12px">Net income</P>
</TD><TD style="border-bottom:2.667px double #000000" width=69.667><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$ &nbsp;1.94&nbsp;</P>
</TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="font-size:2pt">&nbsp;</P></TD><TD width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD width=66.4><P style="font-size:2pt">&nbsp;</P></TD><TD width=7.6><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="font-size:2pt">&nbsp;</P></TD><TD width=13.933><P style="font-size:2pt">&nbsp;</P></TD><TD width=71.733><P style="font-size:2pt">&nbsp;</P></TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=17.933><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:2.667px double #000000" width=72><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$ &nbsp;1.67&nbsp;</P>
</TD></TR>
<TR><TD width=223.8><P style="line-height:14.667px; margin:0px; text-indent:19.2px; font-size:12px">Weighted average common shares</P>
</TD><TD style="border-bottom:2.667px double #000000" width=69.667><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>27,160&nbsp;</P>
</TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="font-size:2pt">&nbsp;</P></TD><TD width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD width=66.4><P style="font-size:2pt">&nbsp;</P></TD><TD width=7.6><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="font-size:2pt">&nbsp;</P></TD><TD width=13.933><P style="font-size:2pt">&nbsp;</P></TD><TD width=71.733><P style="font-size:2pt">&nbsp;</P></TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=17.933><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:2.667px double #000000" width=72><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>27,160&nbsp;</P>
</TD></TR>
<TR><TD width=223.8><P style="font-size:2pt">&nbsp;</P></TD><TD width=69.667><P style="font-size:2pt">&nbsp;</P></TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="font-size:2pt">&nbsp;</P></TD><TD width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD width=66.4><P style="font-size:2pt">&nbsp;</P></TD><TD width=7.6><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="font-size:2pt">&nbsp;</P></TD><TD width=13.933><P style="font-size:2pt">&nbsp;</P></TD><TD width=71.733><P style="font-size:2pt">&nbsp;</P></TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=17.933><P style="font-size:2pt">&nbsp;</P></TD><TD width=72><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD width=223.8><P style="font-size:2pt">&nbsp;</P></TD><TD width=69.667><P style="font-size:2pt">&nbsp;</P></TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="font-size:2pt">&nbsp;</P></TD><TD width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD width=66.4><P style="font-size:2pt">&nbsp;</P></TD><TD width=7.6><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="font-size:2pt">&nbsp;</P></TD><TD width=13.933><P style="font-size:2pt">&nbsp;</P></TD><TD width=71.733><P style="font-size:2pt">&nbsp;</P></TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=17.933><P style="font-size:2pt">&nbsp;</P></TD><TD width=72><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD width=223.8><P style="font-size:2pt">&nbsp;</P></TD><TD width=69.667><P style="font-size:2pt">&nbsp;</P></TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="font-size:2pt">&nbsp;</P></TD><TD width=5.333><P style="font-size:2pt">&nbsp;</P></TD><TD width=66.4><P style="font-size:2pt">&nbsp;</P></TD><TD width=7.6><P style="font-size:2pt">&nbsp;</P></TD><TD width=60.2><P style="font-size:2pt">&nbsp;</P></TD><TD width=13.933><P style="font-size:2pt">&nbsp;</P></TD><TD width=71.733><P style="font-size:2pt">&nbsp;</P></TD><TD width=12><P style="font-size:2pt">&nbsp;</P></TD><TD width=17.933><P style="font-size:2pt">&nbsp;</P></TD><TD width=72><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD width=692.8 colspan=13><P style="line-height:14.667px; margin:0px; font-size:12px">The accompanying notes are an integral part of these unaudited pro forma condensed combined financial statements.</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR>
<BR></P>
<P style="margin:0px" align=center>4</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; page-break-before:always"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=36></TD><TD width=228.333></TD></TR>
<TR><TD valign=top width=36><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=justify>1.</P>
</TD><TD valign=top width=228.333><P style="line-height:17.333px; margin:0px; font-size:14.667px">Basis of Presentation</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">On October 1, 2007 Bio-Rad completed the purchase of DiaMed. &nbsp;The acquisition transaction will be accounted for using the purchase method of accounting.</P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><B><I>DiaMed Financial Information</I></B></P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">The historical financial information for DiaMed is based on the historical audited consolidated financial statements of DiaMed as of and for the year ended December 31, 2006 and the unaudited financial statements for the six month period ended June 30, 2007 translated to U.S. dollars. &nbsp;The exchange rates used for the statements of operations is the simple average of the month end exchange rates for Swiss Francs to US Dollar as published in the Wall Street Journal. &nbsp;These rates were 0.7984 for the year ended December 31, 2006 and 0.8187 for the six month period ended June 30, 2007. &nbsp;The June 30, 2007 balance sheet was translated at the June 30, 2007 rate of 0.8187. </P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><B><I>Carve Out Adjustments</I></B></P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">The DiaMed historical consolidated financial statements include certain subsidiaries that will not be part of Bio-Rad&#146;s operations going forward. &nbsp;These include three wholly owned subsidiaries that were operated by DiaMed to develop, produce and market blood bags for the transfusion market. &nbsp;Under the terms of the Share Purchase Agreement entered into by Bio-Rad to purchase a controlling interest in DiaMed, Bio-Rad purchased these subsidiaries as part of the consolidated company but simultaneous with the closing of the agreement they were sold back to the seller as a condition precedent to the closing. &nbsp;There was no gain or loss on this transaction.</P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">Also included in the historical consolidated financial statements of DiaMed are two variable interest entities for which DiaMed was deemed to be the primary benefactor. &nbsp;They are a business that provided air charter services to DiaMed and a non-profit organization for the promotion and financing of research and development of diagnostic as well as medical products and technologies. &nbsp;Upon acquisition by Bio-Rad, these entities will no longer be consolidated into DiaMed because the contract to supply charter services ceased at the acquisition date and the contractual nature of the relationship between DiaMed and the non-profit organization has been renegotiated.</P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><B><I>Estimated Purchase Price</I></B></P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">The total estimated purchase price of approximately $399.3 million consists of (in millions of dollars):</P>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=380.267></TD><TD width=15.733></TD><TD width=72></TD></TR>
<TR><TD valign=top width=380.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=72><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=380.267><P style="line-height:17.333px; margin:0px; font-size:14.667px">Net payment required by Share Purchase Agreement</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=72><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>$ &nbsp;398.3&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=380.267><P style="line-height:17.333px; margin:0px; font-size:14.667px">Estimated transaction costs</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=72><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>1.0&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=380.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:2.667px double #000000" valign=top width=72><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>$ &nbsp;399.3&nbsp;</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-family:Times New Roman Bold; font-size:14.667px"><FONT FACE="Times New Roman Bold"><B><I>Preliminary Estimated Purchase Price </I></B></FONT><FONT FACE="Times New Roman"><B><I>Allocation</I></B></FONT></P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><FONT FACE="Times New Roman">The preliminary allocation of the purchase price to DiaMed&#146;s tangible and identifiable intangible assets acquired and liabilities assumed was based on their estimated fair values. &nbsp;The valuation of these tangible and identifiable intangible assets and liabilities is subject to further management review and may change materially. &nbsp;Further adjustments to these estimates may be included in the final allocation of the purchase price of DiaMed if the adjustment is determined within the purchase price allocation period. &nbsp;The allocation period ends when the acquiring entity is no longer waiting for information that it has arranged to obtain and that is known to be available or obtainable. &nbsp;The excess of the purchase price over the tangible and identifiable intangible assets acquired and liabilities assumed has been allocated to goodwill. &nbsp;The allocation of purchase price does not include the ef
fect of anticipated restructuring activities.</FONT></P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">The estimated purchase price has been allocated on a preliminary basis as follows (in millions of dollars):</P>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=240></TD><TD width=24></TD><TD width=60></TD></TR>
<TR><TD valign=top width=240><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=60><P style="font-size:2pt">&nbsp;</P></TD></TR>
</TABLE>
<P style="margin:0px"><BR>
<BR></P>
<P style="margin:0px" align=center>5</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; page-break-before:always"><BR>
<BR></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=240></TD><TD width=24></TD><TD width=60></TD></TR>
<TR><TD valign=top width=240><P style="line-height:17.333px; margin:0px; font-size:14.667px">Cash and cash equivalents</P>
</TD><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=60><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>$ &nbsp;&nbsp;20.9&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=240><P style="line-height:17.333px; margin:0px; font-size:14.667px">Accounts receivable, net</P>
</TD><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=60><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>50.3&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=240><P style="line-height:17.333px; margin:0px; font-size:14.667px">Inventories</P>
</TD><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=60><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>54.8&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=240><P style="line-height:17.333px; margin:0px; font-size:14.667px">Other current assets</P>
</TD><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=60><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>15.5&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=240><P style="line-height:17.333px; margin:0px; font-size:14.667px">Fixed assets</P>
</TD><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=60><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>56.7&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=240><P style="line-height:17.333px; margin:0px; font-size:14.667px">Goodwill</P>
</TD><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=60><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>244.1&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=240><P style="line-height:17.333px; margin:0px; font-size:14.667px">Purchased intangibles</P>
</TD><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=60><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>128.9&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=240><P style="line-height:17.333px; margin:0px; font-size:14.667px">Other non-current assets</P>
</TD><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=60><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>3.5&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=240><P style="line-height:17.333px; margin:0px; font-size:14.667px">Current liabilities</P>
</TD><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=60><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>(59.2)</P>
</TD></TR>
<TR><TD valign=top width=240><P style="line-height:17.333px; margin:0px; font-size:14.667px">Debt assumed</P>
</TD><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=60><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>(45.0)</P>
</TD></TR>
<TR><TD valign=top width=240><P style="line-height:17.333px; margin:0px; font-size:14.667px">Other liabilities</P>
</TD><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=60><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>(48.5)</P>
</TD></TR>
<TR><TD valign=top width=240><P style="line-height:17.333px; margin:0px; font-size:14.667px">Minority interest</P>
</TD><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=60><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>(22.7)</P>
</TD></TR>
<TR><TD valign=top width=240><P style="line-height:17.333px; margin:0px; text-indent:19.2px; font-size:14.667px">Total estimated purchase price</P>
</TD><TD valign=top width=24><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:2.667px double #000000" valign=top width=60><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>$ &nbsp;399.3&nbsp;</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-family:Times New Roman Bold; font-size:14.667px"><FONT FACE="Times New Roman Bold"><B><I>Tangible Assets Acquired and Liabilities Assumed</I></B></FONT></P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><FONT FACE="Times New Roman">Bio-Rad has estimated the fair value of tangible assets acquired and liabilities assumed using June 30, 2007 book values for the tangible assets of DiaMed because more current information was not available.</FONT></P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><B><I>Purchased Intangible Aassets</I></B></P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">Bio-Rad has estimated the fair value of the purchased intangible assets which are subject to amortization. &nbsp;These amounts represent preliminary management estimates prior to completion of a formal asset valuation. &nbsp;The following table sets forth the preliminary management estimate for the components of these intangible assets and their estimated useful lives (in millions of dollars):</P>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=300></TD><TD width=20.6></TD><TD width=83.667></TD><TD width=15.733></TD><TD width=96></TD></TR>
<TR><TD valign=top width=300><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=20.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=83.667><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>Preliminary</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=96><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>Useful Life</P>
</TD></TR>
<TR><TD valign=top width=300><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=20.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=83.667><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>Fair Value</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=96><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>(in years)</P>
</TD></TR>
<TR><TD valign=top width=300><P style="line-height:17.333px; margin:0px; font-size:14.667px">Customer relationships</P>
</TD><TD valign=top width=20.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=83.667><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;51.6&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=96><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>3 - 7&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=300><P style="line-height:17.333px; margin:0px; font-size:14.667px">Technological know how</P>
</TD><TD valign=top width=20.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=83.667><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>19.3&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=96><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>5 - 7&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=300><P style="line-height:17.333px; margin:0px; font-size:14.667px">Marketing related</P>
</TD><TD valign=top width=20.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=83.667><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>51.6&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=96><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>3 - 5&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=300><P style="line-height:17.333px; margin:0px; font-size:14.667px">Non-compete agreement</P>
</TD><TD valign=top width=20.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=83.667><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>6.4&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=96><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>3&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=300><P style="line-height:17.333px; margin:0px; text-indent:19.2px; font-size:14.667px">Total acquired identifiable intangible assets</P>
</TD><TD valign=top width=20.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:2.667px double #000000" valign=top width=83.667><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>$ &nbsp;&nbsp;128.9&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=96><P style="font-size:2pt">&nbsp;</P></TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">For purposes of estimating amortization expense we have assumed an average useful life of five years for the customer relationships, technological know how and marketing related intangibles assets and three years for the non-compete agreement.</P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">We have not included any amounts for in-process research and development expense as our valuation work is too preliminary to estimate an amount.</P>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=36></TD><TD width=228.333></TD></TR>
<TR><TD valign=top width=36><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=justify>2.</P>
</TD><TD valign=top width=228.333><P style="line-height:17.333px; margin:0px; font-size:14.667px">Pro Forma Adjustments</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">The following pro forma adjustments are included in the unaudited pro forma condensed combined statements of operations and the unaudited pro forma condensed combined balance sheet:</P>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=29.533></TD><TD width=9.133></TD><TD width=645.333></TD></TR>
<TR><TD valign=top width=29.533><P style="line-height:17.333px; margin:0px; font-size:14.667px">a.</P>
</TD><TD valign=top width=654.467 colspan=2><P style="line-height:17.333px; margin:0px; font-size:14.667px">The reduction to cash and cash equivalents and short-term investments represents the net cash paid out for </P>
</TD></TR>
<TR><TD valign=top width=29.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=654.467 colspan=2><P style="line-height:17.333px; margin:0px; font-size:14.667px">the DiaMed acquisition.</P>
</TD></TR>
<TR><TD valign=top width=29.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=654.467 colspan=2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=29.533><P style="line-height:17.333px; margin:0px; font-size:14.667px">b.</P>
</TD><TD valign=top width=654.467 colspan=2><P style="line-height:17.333px; margin:0px; font-size:14.667px">The reduction to accounts receivable and accounts payable represent the elimination of intercompany</P>
</TD></TR>
<TR><TD valign=top width=29.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=654.467 colspan=2><P style="line-height:17.333px; margin:0px; font-size:14.667px">amounts between Bio-Rad and DiaMed as of June 30, 2007 as Bio-Rad was a customer of DiaMed prior to</P>
</TD></TR>
<TR><TD valign=top width=29.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=654.467 colspan=2><P style="line-height:17.333px; margin:0px; font-size:14.667px">the acquisition.</P>
</TD></TR>
<TR><TD valign=top width=29.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=654.467 colspan=2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=29.533><P style="line-height:17.333px; margin:0px; font-size:14.667px">c.</P>
</TD><TD valign=top width=654.467 colspan=2><P style="line-height:17.333px; margin:0px; font-size:14.667px">The change to goodwill represents the elimination of DiaMed&#146;s historical goodwill of $1.2 million as of</P>
</TD></TR>
<TR><TD valign=top width=29.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=654.467 colspan=2><P style="line-height:17.333px; margin:0px; font-size:14.667px">June 30, 2007 and the recording of estimated goodwill of $244.1 million relating to the acquisition of</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR>
<BR></P>
<P style="margin:0px" align=center>6</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; page-break-before:always"><BR>
<BR></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=29.533></TD><TD width=9.133></TD><TD width=645.333></TD></TR>
<TR><TD valign=top width=29.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=654.467 colspan=2><P style="line-height:17.333px; margin:0px; font-size:14.667px">DiaMed.</P>
</TD></TR>
<TR><TD valign=top width=29.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=654.467 colspan=2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=29.533><P style="line-height:17.333px; margin:0px; font-size:14.667px">d.</P>
</TD><TD valign=top width=654.467 colspan=2><P style="line-height:17.333px; margin:0px; font-size:14.667px">The change to purchased intangibles represents the elimination of DiaMed&#146;s historical net purchased </P>
</TD></TR>
<TR><TD valign=top width=29.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=654.467 colspan=2><P style="line-height:17.333px; margin:0px; font-size:14.667px">intangibles of $1.4 million as of June 30, 2007 and the recording of estimated purchased intangibles </P>
</TD></TR>
<TR><TD valign=top width=29.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=654.467 colspan=2><P style="line-height:17.333px; margin:0px; font-size:14.667px">$128.9 million relating to the acquisition of DiaMed.</P>
</TD></TR>
<TR><TD valign=top width=29.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=654.467 colspan=2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=29.533><P style="line-height:17.333px; margin:0px; font-size:14.667px">e.</P>
</TD><TD valign=top width=654.467 colspan=2><P style="line-height:17.333px; margin:0px; font-size:14.667px">The increase in current liabilities represents estimated accruals for severance and other acquisition related </P>
</TD></TR>
<TR><TD valign=top width=29.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=654.467 colspan=2><P style="line-height:17.333px; margin:0px; font-size:14.667px">expenses associated with the DiaMed acquisition. &nbsp;The decrease in other long-term assets represents</P>
</TD></TR>
<TR><TD valign=top width=29.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=654.467 colspan=2><P style="line-height:17.333px; margin:0px; font-size:14.667px">prepaid acquisition costs previously recorded by Bio-Rad.</P>
</TD></TR>
<TR><TD valign=top width=29.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=654.467 colspan=2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=29.533><P style="line-height:17.333px; margin:0px; font-size:14.667px">f.</P>
</TD><TD valign=top width=654.467 colspan=2><P style="line-height:17.333px; margin:0px; font-size:14.667px">The adjustment to other long-term liabilities represents the deferred tax liability associated with acquired.</P>
</TD></TR>
<TR><TD valign=top width=29.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=654.467 colspan=2><P style="line-height:17.333px; margin:0px; font-size:14.667px">estimated purchased intangibles.</P>
</TD></TR>
<TR><TD valign=top width=29.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=654.467 colspan=2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=29.533><P style="line-height:17.333px; margin:0px; font-size:14.667px">g.</P>
</TD><TD valign=top width=654.467 colspan=2><P style="line-height:17.333px; margin:0px; font-size:14.667px">The adjustment to minority interest represents the 14.04% ownership of DiaMed not acquired by Bio-Rad.</P>
</TD></TR>
<TR><TD valign=top width=29.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=654.467 colspan=2><P style="line-height:17.333px; margin:0px; font-size:14.667px">Under the provisions of SFAS 141, the minority interest is not stepped up to fair value in purchase </P>
</TD></TR>
<TR><TD valign=top width=29.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=654.467 colspan=2><P style="line-height:17.333px; margin:0px; font-size:14.667px">accounting but rather has been recorded based on the historical cost basis of DiaMed at June 30, 2007.</P>
</TD></TR>
<TR><TD valign=top width=29.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=654.467 colspan=2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=29.533><P style="line-height:17.333px; margin:0px; font-size:14.667px">h.</P>
</TD><TD valign=top width=654.467 colspan=2><P style="line-height:17.333px; margin:0px; font-size:14.667px">The reduction to stockholders&#146; equity reflects the elimination of the historical equity of DiaMed as of</P>
</TD></TR>
<TR><TD valign=top width=29.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=654.467 colspan=2><P style="line-height:17.333px; margin:0px; font-size:14.667px">June 30, 2007.</P>
</TD></TR>
<TR><TD valign=top width=29.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=654.467 colspan=2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=29.533><P style="line-height:17.333px; margin:0px; font-size:14.667px">i.</P>
</TD><TD valign=top width=654.467 colspan=2><P style="line-height:17.333px; margin:0px; font-size:14.667px">Adjustments to net sales reflect the elimination of DiaMed sales to Bio-Rad and DiaMed royalty revenue</P>
</TD></TR>
<TR><TD valign=top width=29.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=654.467 colspan=2><P style="line-height:17.333px; margin:0px; font-size:14.667px">recognized from Bio-Rad of $1.5 million for the twelve months ended December 31, 2006 and $0.8 million</P>
</TD></TR>
<TR><TD valign=top width=29.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=654.467 colspan=2><P style="line-height:17.333px; margin:0px; font-size:14.667px">for the six months ended June 30, 2007.</P>
</TD></TR>
<TR><TD valign=top width=29.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=654.467 colspan=2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=29.533><P style="line-height:17.333px; margin:0px; font-size:14.667px">j.</P>
</TD><TD valign=top width=654.467 colspan=2><P style="line-height:17.333px; margin:0px; font-size:14.667px">Adjustments to cost of sales reflect the elimination of Bio-Rad purchases from DiaMed and DiaMed </P>
</TD></TR>
<TR><TD valign=top width=29.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=654.467 colspan=2><P style="line-height:17.333px; margin:0px; font-size:14.667px">royalty expense recognized from Bio-Rad of $1.5 million for the twelve months ended December 31, 2006 &nbsp;</P>
</TD></TR>
<TR><TD valign=top width=29.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=654.467 colspan=2><P style="line-height:17.333px; margin:0px; font-size:14.667px">and $0.8 million for the six months ended June 30, 2007. &nbsp;Additionally, amortization expense of $14.2</P>
</TD></TR>
<TR><TD valign=top width=29.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=654.467 colspan=2><P style="line-height:17.333px; margin:0px; font-size:14.667px">million for the twelve months ended December 31, 2006 and $7.1 million for the six months ended </P>
</TD></TR>
<TR><TD valign=top width=29.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=654.467 colspan=2><P style="line-height:17.333px; margin:0px; font-size:14.667px">June 30, 2007 is included. &nbsp;This is the amortization of the technological know how and marketing related </P>
</TD></TR>
<TR><TD valign=top width=29.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=654.467 colspan=2><P style="line-height:17.333px; margin:0px; font-size:14.667px">purchased intangibles.</P>
</TD></TR>
<TR><TD valign=top width=29.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=654.467 colspan=2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=29.533><P style="line-height:17.333px; margin:0px; font-size:14.667px">k.</P>
</TD><TD valign=top width=654.467 colspan=2><P style="line-height:17.333px; margin:0px; font-size:14.667px">Adjustments to selling, general and administrative expense reflect the amortization expense related to</P>
</TD></TR>
<TR><TD valign=top width=29.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=654.467 colspan=2><P style="line-height:17.333px; margin:0px; font-size:14.667px">customer related and non-competitive purchased intangibles.</P>
</TD></TR>
<TR><TD valign=top width=29.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=654.467 colspan=2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=29.533><P style="line-height:17.333px; margin:0px; font-size:14.667px">l.</P>
</TD><TD valign=top width=654.467 colspan=2><P style="line-height:17.333px; margin:0px; font-size:14.667px">Adjustment to Other (income) expense, net reflects the reduced investment income, primarily interest </P>
</TD></TR>
<TR><TD valign=top width=29.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=654.467 colspan=2><P style="line-height:17.333px; margin:0px; font-size:14.667px">income that was earned on Bio-Rad&#146;s cash and cash equivalents and short term investments which were </P>
</TD></TR>
<TR><TD valign=top width=29.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=654.467 colspan=2><P style="line-height:17.333px; margin:0px; font-size:14.667px">used to purchase a controlling interest in DiaMed. &nbsp;The adjustment was estimated using an annual rate of</P>
</TD></TR>
<TR><TD valign=top width=29.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=654.467 colspan=2><P style="line-height:17.333px; margin:0px; font-size:14.667px">return of 4.61% for the year ended December 31, 2006 and 4.91% for six months ended June 30, 2007.</P>
</TD></TR>
<TR><TD valign=top width=29.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=654.467 colspan=2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=29.533><P style="line-height:17.333px; margin:0px; font-size:14.667px">m.</P>
</TD><TD valign=top width=654.467 colspan=2><P style="line-height:17.333px; margin:0px; font-size:14.667px">The adjustment to the provision for income taxes reflects the estimated net tax impact of the pro forma </P>
</TD></TR>
<TR><TD valign=top width=29.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=654.467 colspan=2><P style="line-height:17.333px; margin:0px; font-size:14.667px">adjustments calculated using the applicable tax rate in the jurisdiction of the adjustment.</P>
</TD></TR>
<TR><TD valign=top width=29.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=654.467 colspan=2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=29.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=654.467 colspan=2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=29.533><P style="line-height:17.333px; margin:0px; font-size:14.667px">n.</P>
</TD><TD valign=top width=654.467 colspan=2><P style="line-height:17.333px; margin:0px; font-size:14.667px">The adjustment to minority interests represents the 14.04% share of DiaMed&#146;s adjusted net income.</P>
</TD></TR>
<TR><TD valign=top width=38.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=645.333><P style="font-size:2pt">&nbsp;</P></TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR>
<BR></P>
<P style="margin:0px" align=center>7</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
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