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Waters Corporation First Quarter 2001 Sales Up 17% Before Currency Effects, Earnings Per Diluted Share Up 27%

MILFORD, Mass.--(BUSINESS WIRE)--April 27, 2001--Waters Corporation (NYSE:WAT) reported today that first quarter 2001 sales increased by 17% over prior year levels before unfavorable currency effects. After currency effects, reported sales growth was 12%. Earnings per diluted share (E.P.S.) were $0.28 for the quarter, representing a 27% increase over prior year E.P.S. of $0.22 before the cumulative effect of a change in accounting principle.

Douglas A. Berthiaume, Chairman and Chief Executive Officer, said: "First quarter results continued to be strong with sales growth of 17% as measured in local currencies. Consistent with the past several years, growth was led again by life science customer demand and by demand for mass spectrometry products in particular. Sales growth was balanced geographically. We were also pleased with initial customer response to our new products introduced during the quarter at the Pittsburgh Conference trade show and we remain enthusiastic about our business prospects.

Currency translation effects were challenging for the quarter and reduced our reported sales growth by 5% points. The Company nonetheless grew earnings by a robust 27%."

As communicated in a prior press release, Waters Corporation will webcast its first quarter 2001 financial results conference call this morning, April 27, 2001, at 8:00 a.m. eastern time. To listen to the call, connect to www.waters.com and access the investor relations section. A replay of the call will be available from today through May 3, 2001 similarly by webcast, and also by phone at 402-998-1789.

Waters Corporation holds worldwide leading positions in three complementary analytical technologies - high performance liquid chromatography, thermal analysis and mass spectrometry - which account for $4 billion in annual revenues of the $18 billion analytical instrument industry 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 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)
                              (Unaudited)


                                                       Three Months
                                                     Ended March 31
                                                    2001       2000

Net sales                                         201,032    180,202
Cost of sales                                      73,298     66,340
   Gross profit                                   127,734    113,862

Selling, general and administrative expenses       65,907     60,395
Research and development expenses                  11,038     10,362
Goodwill and purchased technology amortization      1,748      1,811
  Operating income                                 49,041     41,294

Interest income (expense), net                      1,486       (701)
   Income before income taxes                      50,527     40,593

Provision for income taxes                         12,127     10,545
   Income before cumulative effect of change
    in accounting principle                        38,400     30,048

Cumulative effect of change in accounting
 principle (A)                                          0    (10,771)
   Net income                                      38,400     19,277


Income (loss) per basic common share:
 Net income before cumulative effect of
  accounting principle change                        0.30       0.24
 Cumulative effect of change in accounting
  principle (A)                                      0.00      (0.09)
     Net income                                      0.30       0.15

Income (loss) per diluted common share:
 Net income before cumulative effect of
  accounting principle change                        0.28       0.22
 Cumulative effect of change in accounting
  principle (A)                                      0.00      (0.08)
    Net income                                       0.28       0.14


Weighted average number of basic common
 shares                                           130,166    125,602

Weighted average number of diluted common
 shares and equivalents                           137,933    135,184



(A) Effect at January 1, 2000 of adopting Securities and Exchange
Commission Staff Accounting Bulletin #101, recorded in first quarter
2000





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



                                 March 31, 2001
                                     (Unaudited)  December 31, 2000

Cash and cash equivalents                89,192              75,509
Accounts receivable                     166,226             167,713
Inventories                              96,210              87,275
Other current assets                     20,363              13,299
   Total current assets                 371,991             343,796

Property, plant and equipment, net      104,700             102,608
Other assets                            241,359             245,941
   Total assets                         718,050             692,345


Notes payable                             2,277               4,879
Accounts payable and accrued expenses   204,617             215,654
   Total current liabilities            206,894             220,533

Other liabilities                        19,015              20,031
   Total liabilities                    225,909             240,564

Total equity                            492,141             451,781
   Total liabilities and equity         718,050             692,345

--30--jb/bos*

CONTACT: Waters Corporation
Brian Mazar
Vice President of Investor Relations
508-482-2193