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Waters Corporation First Quarter 1999 Sales Up 16%, Earnings Per Diluted Share Up 38% Excluding Nonrecurring Prior Year Charge

MILFORD, Mass.--(BUSINESS WIRE)--April 26, 1999--Waters Corporation (NYSE:WAT) reported today that first quarter 1999 sales increased by 16% over prior year levels, including the 1% favorable impact of foreign exchange rate comparisons. Earnings per diluted share (E.P.S.) were $0.69 for the quarter, representing a 38% increase over prior year E.P.S. of $0.50 excluding a nonrecurring charge in that period.

Douglas A. Berthiaume, Chairman and Chief Executive Officer, said: ``First quarter performance was strong across all operating and financial fronts. Reported sales and earnings growth continued Waters' record of accelerating financial performance. The financial results were highlighted by a very strong $32 million of free cash flow for the quarter. Customer demand for the Company's products generally remained strong. In addition, sales in Japan and the Pacific Rim showed good growth this quarter, after a difficult period in 1998. Finally, over the past several months, the Company has introduced a variety of exciting new products across its technology platforms which position us well for the future.''

Waters Corporation holds worldwide leading positions in three complementary analytical technologies--high performance liquid chromatography, thermal analysis and mass spectrometry--which account for $3 billion in annual revenues of the $14 billion analytical instrument industry total.


Certain statements contained herein are forward looking. Many factors could cause actual results to differ from these statements, including loss of market share through competition, introduction of competing products by other companies, pressures on prices from competitors and/or customers, regulatory obstacles to new product introductions, lack of acceptance of new products, changes in the healthcare market and the pharmaceutical industry, changes in distribution of the Company's products, and interest rate and foreign exchange fluctuations. Such factors are discussed in detail in the Company's filings with the Securities and Exchange Commission.


                  Waters Corporation and Subsidiaries
                 Consolidated Statements of Operations
                 (In thousands, except per share data)

                                                       Three Months
                                                      Ended March 31
                                                      1999      1998

Net sales                                            160,362   138,725
Cost of sales                                         60,622    51,920
Revaluation of acquired inventory (A)                      0    16,500
   Gross profit                                       99,740    70,305

Selling, general and administrative expenses          54,504    49,988
Research and development expenses                      8,686     8,372
Goodwill and purchased technology amortization         2,045     2,275
  Operating income                                    34,505     9,670

Interest expense, net                                  3,033     5,063
   Income from operations before income taxes         31,472     4,607

Provision for income taxes                             8,498     4,363
   Net income                                         22,974       244

Less: preferred stock dividend and accretion             244       239
   Net income available to common stockholders        22,730         5

Net income per basic common share                       0.75      0.00

Net income per diluted common share                     0.69      0.00

Weighted average number of basic common shares        30,447    29,708

Weighted average number of diluted common shares
 and equivalents                                      32,920    33,161

(A)  Nonrecurring 1998 charge, no tax effect

                  Waters Corporation and Subsidiaries
                 Condensed Consolidated Balance Sheets

                                               March 31,  December 31,
                                                 1999        1998

Cash and cash equivalents                         1,757       5,497
Accounts receivable                             123,716     136,806
Inventories                                      77,492      80,281
Other current assets                             29,424      29,040
   Total current assets                         232,389     251,624

Property, plant and equipment, net               88,596      89,029
Other assets                                    234,949     237,048
   Total assets                                 555,934     577,701

Notes payable                                     6,014       4,259
Accounts payable and accrued expenses           173,517     181,314
   Total current liabilities                    179,531     185,573

Loans payable                                   180,580     218,250
Redeemable preferred stock                        9,302       9,058
Other liabilities                                 9,097      14,701
   Total liabilities                            378,510     427,582

 Total equity                                   177,424     150,119
   Total liabilities and equity                 555,934     577,701

     Waters Corporation
     Brian Mazar, Vice President of Investor Relations