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Waters Corporation Third Quarter 2000 Sales Up 18% Before Currency Effects, Earnings Per Diluted Share Up 27%

MILFORD, Mass.--(BUSINESS WIRE)--Oct. 19, 2000--Waters Corporation (NYSE/WAT) reported today that third quarter 2000 sales increased by 18% over prior year levels before unfavorable currency effects. After currency effects, reported sales growth was 13%. Earnings per diluted share (E.P.S.) were $0.28 for the quarter, representing a 27% increase over prior year E.P.S. of $0.22. Current year data reflect, and prior year data have been adjusted for, the impact of the Company's two-for-one stock split effected August 25, 2000.

Douglas A. Berthiaume, Chairman and Chief Executive Officer, said: "Third quarter results continued to be very strong and reflected customer demand dynamics consistent with the first half of the year. Overall sales growth was led by demand from life science customers and by sales of mass spectrometry products in particular. Sales of our time-of-flight mass spectrometry product segment grew in excess of 50% once again, with expanding customer needs in proteomics, drug discovery and drug development application areas. From a geographic perspective, sales growth was double-digit across all major areas.

Currency translation effects proved particularly challenging for the quarter. As of quarter-end, the Euro had weakened by 8% just during the quarter. Versus the prior year, overall currency comparisons reduced reported third quarter sales growth rates by 5%. The Company grew earnings by 27% in spite of this dynamic. If unchanged from today's levels, currency rates will continue to present a translation challenge in the fourth quarter of 2000 and in 2001."

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 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           Nine Months
                             Ended September 30    Ended September 30
                               2000        1999       2000       1999

Net sales                   194,073     171,090    569,990    503,732
Cost of sales                70,857      61,903    208,469    186,237
 Gross profit               123,216     109,187    361,521    317,495

Selling, general and
 administrative expenses     59,712      57,075    181,167    167,116
Research and development
 expenses                    10,394       8,634     31,313     26,341
Goodwill and purchased
 technology amortization      1,755       1,999      5,326      6,078
 Operating income            51,355      41,479    143,715    117,960

Interest (income) expense,
 net                           (322)      1,794        722      7,206
 Income before income taxes  51,677      39,685    142,993    110,754

Provision for income taxes   13,435      10,715     37,177     29,904
 Net income                  38,242      28,970    105,816     80,850

Less: preferred stock
 dividend and accretion           0         247          0        736
 Net income available to
  common stockholders        38,242      28,723    105,816     80,114


Net income per basic
 common share                  0.30        0.23       0.83       0.65

Net income per diluted
 common share                  0.28        0.22       0.78       0.60


Weighted average number of
 basic common shares        128,485     123,509    126,984    122,572

Weighted avg. number of
 diluted common shares and
 equivalents                137,430     133,222    136,369    132,446


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

                             September 30, 2000
                                     (Unaudited)   December 31, 1999

Cash and cash equivalents                23,196                3,803
Accounts receivable                     164,889              149,271
Inventories                              86,093               80,363
Other current assets                     18,013               13,893
   Total current assets                 292,191              247,330

Property, plant and
 equipment, net                          99,004               91,841
Other assets                            258,217              245,266
   Total assets                         649,412              584,437


Notes payable                             3,910               14,164
Accounts payable and
 accrued expenses                       198,951              183,677
   Total current
    liabilities                         202,861              197,841

Loans payable                            13,510               81,105
Other liabilities                         5,771               13,329
   Total liabilities                    222,142              292,275

 Total equity                           427,270              292,162
   Total liabilities and
    equity                              649,412              584,437

--30--jr/bos*

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