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Waters Corporation Second Quarter 2000 Sales Up 15% Before Currency Effects, Earnings Per Diluted Share Up 28%

MILFORD, Mass.--(BUSINESS WIRE)--July 31, 2000--Waters Corporation (NYSE:WAT) reported today that second 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 $0.55 for the quarter, representing a 28% increase over prior year E.P.S. of $0.43.

Douglas A. Berthiaume, Chairman and Chief Executive Officer, said: "Second quarter results continued our strong first quarter start to the year 2000 and reflected high levels of demand in particular from life science customers. Overall sales growth was broadly distributed. From a product point of view, our mass spectrometry products again led our growth with the time-of-flight segment growing in excess of 50%. Demand from customers engaged in proteomics and drug discovery applications continued to be robust. All major geographic areas saw double-digit growth, excluding currency effects, except for Europe which experienced mid single-digit growth consistent with the first quarter of the year.

Financial results for the second quarter represented outstanding performance; with 28% earnings growth, expanded operating margins and strong cash flow."

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 $18 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          Six Months
                                   Ended June 30        Ended June 30
                                   2000      1999      2000      1999

Net sales                       195,276   172,280   375,917   332,642
Cost of sales                    71,199    63,712   137,612   124,334
   Gross profit                 124,077   108,568   238,305   208,308

Selling, general
 and administrative expenses     61,060    55,537   121,455   110,041
Research and
 development expenses            10,557     9,021    20,919    17,707
Goodwill and purchased
 technology amortization          1,760     2,034     3,571     4,079
  Operating income               50,700    41,976    92,360    76,481

Interest expense, net               343     2,379     1,044     5,412
   Income before income taxes    50,357    39,597    91,316    71,069

Provision for income taxes       13,102    10,691    23,742    19,189
   Net income                    37,255    28,906    67,574    51,880

Less: preferred stock
 dividend and accretion               0       245         0       489
   Net income available to
    common stockholders          37,255    28,661    67,574    51,391


Net income per
 basic common share                0.59      0.47      1.07      0.84

Net income per
 diluted common share              0.55      0.43      1.00      0.78


Weighted average number
 of basic common shares          63,457    61,222    63,123    61,060

Weighted avg. number
 of diluted common
 shares and equivalents          68,111    66,167    67,860    66,014

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

                                        June 30,  Dec. 31,
                                           2000      1999
                                    (Unaudited)

Cash and cash equivalents                 2,461     3,803
Accounts receivable                     150,227   149,271
Inventories                              82,978    80,363
Other current assets                     17,607    13,893
   Total current assets                 253,273   247,330

Property, plant and equipment, net       95,249    91,841
Other assets                            242,468   245,266
   Total assets                         590,990   584,437


Notes payable                            10,527    14,164
Accounts payable and accrued expenses   188,919   183,677
   Total current liabilities            199,446   197,841

Loans payable                             2,915    81,105
Other liabilities                        10,601    13,329
   Total liabilities                    212,962   292,275

 Total equity                           378,028   292,162
   Total liabilities and equity         590,990   584,437

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    CONTACT: Waters Corporation
             Brian Mazar
             508-482-2193