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Waters Corporation First Quarter 2000 Sales Up 15% Before Currency Effects, Earnings Per Diluted Share Up 29%

MILFORD, Mass.--(BUSINESS WIRE)--April 27, 2000--Waters Corporation (NYSE:WAT) reported today that first quarter 2000 sales increased by 15% over prior year levels before unfavorable currency effects. After currency effects, reported sales growth was 13%. Earnings per diluted share (E.P.S.) were $0.45 for the quarter, representing a 29% increase over prior year E.P.S. of $0.35.

Douglas A. Berthiaume, Chairman and Chief Executive Officer, said: "First quarter results were a great start to the year 2000 and reflected continued strong demand, particularly from life science customers. From a technology perspective, our mass spectrometry and high performance liquid chromatography product lines led growth. Time-of-flight mass spectrometry products continued to perform well and sales grew in excess of 50% in the quarter with accelerating demand from customers in both high throughput drug discovery and proteomics applications. Growth was broadbased with double digit increases across all geographies except Europe which grew in the single digits. First quarter financial results continued Waters record of expanding operating margins, strong earnings growth and robust cash flow. We are pleased with our 2000 start, and are enthusiastic about our current product position and upcoming new product introduction plans."

Waters Corporation holds worldwide leading positions in three complementary analytical technologies - high performance liquid chromatography, thermal analysis and mass spectrometry - which account for $3.5 billion in annual revenues of the $16 billion analytical instrument total.

CAUTIONARY STATEMENT

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.

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                  Waters Corporation and Subsidiaries
                 Consolidated Statements of Operations
                 (In thousands, except per share data)
                              (Unaudited)
                                                  Three Months
                                                  Ended March 31
                                                2000         1999

Net sales                                     180,641      160,362
Cost of sales                                  66,413       60,622
   Gross profit                               114,228       99,740

Selling, general and administrative
 expenses                                      60,395       54,504
Research and development expenses              10,362        8,686
Goodwill and purchased technology
 amortization                                   1,811        2,045
  Operating income                             41,660       34,505

Interest expense, net                             701        3,033
   Income before income taxes                  40,959       31,472

Provision for income taxes                     10,640        8,498
   Net income                                  30,319       22,974

Less: preferred stock dividend and
 accretion                                          0          244
   Net income available to common
    stockholders                               30,319       22,730

Net income per basic common share                0.48         0.37

Net income per diluted common share              0.45         0.35

Weighted average number of basic
 common shares                                 62,801       60,894

Weighted avg. number of diluted
 common shares and equivalents                 67,592       65,840




                  Waters Corporation and Subsidiaries
                 Condensed Consolidated Balance Sheets
                            (In Thousands)


                                                   March 31,
                                                     2000    Dec, 31,
                                                 (Unaudited)   1999

Cash and cash equivalents                            2,226     3,803
Accounts receivable                                148,016   149,271
Inventories                                         87,305    80,363
Other current assets                                16,890    13,893
   Total current assets                            254,437   247,330

Property, plant and equipment, net                  93,516    91,841
Other assets                                       244,422   245,266
   Total assets                                    592,375   584,437

Notes payable                                       14,954    14,164
Accounts payable and accrued expenses              193,030   183,677
   Total current liabilities                       207,984   197,841

Loans payable                                       42,300    81,105
Other liabilities                                   11,038    13,329
   Total liabilities                               261,322   292,275

 Total equity                                      331,053   292,162
   Total liabilities and equity                    592,375   584,437

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    CONTACT: Waters Corporation
             Brian Mazar, 508-482-2193