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Waters Corporation Second Quarter 1999 Sales Up 15%, Earnings Per Diluted Share Up 43%
    Business/Technology Editors

    MILFORD, Mass.--(BUSINESS WIRE)--July 26, 1999--Waters Corporation (NYSE:WAT) reported today that second quarter 1999 sales increased by 15% over prior year levels. Sales grew by 16% excluding the unfavorable impact of foreign currency exchange rate comparisons. Earnings per diluted share (E.P.S.) were $0.43 for the quarter, representing a 43% increase over prior year E.P.S. of $0.30.

Douglas A. Berthiaume, Chairman and Chief Executive Officer, said: "Second quarter results were again highlighted by strong sales and earnings growth, together with record free cash flow of $37 million, continuing Waters' record of outstanding financial performance. Customer demand for the Company's products remained strong across our three technology platforms and all our major geographies. In addition, we are pleased by initial customer reception to new products introduced so far in 1999 including, in particular, the Alliance HT(tm) high-throughput chromatography system, Quattro Ultima(tm) mass spectrometer, Q-tof II(tm) time-of-flight mass spectrometer and our family of Xterra(tm) chromatography columns."

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.

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.

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


                                   Three Months         Six Months
                                   Ended June 30       Ended June 30
                                  1999      1998      1999       1998

Net sales                        172,280   149,311   332,642   288,036
Cost of sales                     63,712    55,848   124,334   107,768
Revaluation of acquired
 inventory (A)                         0         0         0    16,500
   Gross profit                  108,568    93,463   208,308   163,768

Selling, general and
 administrative expenses          55,537    51,952   110,041   101,940
Research and development
 expenses                          9,021     8,246    17,707    16,618
Goodwill and purchased
 technology amortization           2,034     2,231     4,079     4,506
  Operating income                41,976    31,034    76,481    40,704

Interest expense, net              2,379     4,888     5,412     9,951
   Income from operations
    before income taxes           39,597    26,146    71,069    30,753

Provision for income taxes        10,691     6,033    19,189    10,396
   Net income                     28,906    20,113    51,880    20,357

Less: preferred stock dividend
 and accretion                       245       240       489       479
   Net income available to
    common stockholders           28,661    19,873    51,391    19,878


Net income per basic
 common share                       0.47      0.33      0.84      0.33

Net income per diluted
 common share                       0.43      0.30      0.78      0.30


Weighted average number
 of basic common shares           61,222    59,754    61,060    59,586

Weighted avg. number of
 diluted common shares
 and equivalents                  66,167    67,038    66,014    66,680


(A) Nonrecurring first quarter 1998 charge, no associated tax effects

                  Waters Corporation and Subsidiaries
                 Condensed Consolidated Balance Sheets


                                              June 30,    December 31, 
                                                1999            1998                                        
                                            (Unaudited)           

Cash and cash equivalents                       2,032           5,497
Accounts receivable                           122,502         136,806
Inventories                                    80,179          80,281
Other current assets                           29,824          29,040
   Total current assets                       234,537         251,624

Property, plant and equipment, net             89,074          89,029
Other assets                                  233,691         237,048
   Total assets                               557,302         577,701


Notes payable                                   5,628           4,259
Accounts payable and accrued expenses         174,893         181,314
   Total current liabilities                  180,521         185,573

Loans payable                                 144,391         218,250
Redeemable preferred stock                      9,548           9,058
Other liabilities                               6,391          14,701
   Total liabilities                          340,851         427,582

 Total equity                                 216,451         150,119
   Total liabilities and equity               557,302         577,701


--30--mb/bos*

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

KEYWORD: MASSACHUSETTS
INDUSTRY KEYWORD: COMED COMPUTERS/ELECTRONICS EARNINGS