Lab Equipment/Distribution Sales excel in second quarter.

Companies within the Laboratory Equipment/Distribution Sales Index continue to show strong signs of sales and operating profit growth despite the overall slowdown in the economy. In the second quarter 2002, sales for the companies in the index rose 11.4% over the second quarter of 2001. Operating

Fisher Scientific International's second quarter sales ending June 30, 2002 rose 14.3% to $809.9 million from $708.8 million in the second quarter of 2001. Sales in Fisher's Domestic Distribution segment rose 16.2% to $699.9 million from $602.4 million in the comparable first quarter a year ago. This marks two consecutive quarters of Domestic Distribution growth of over 16%. International distribution revenues increased 2.6% to $106.5 million. Laboratory Workstation sales increased 5.8% to $47.3 million over the comparable period. E-commerce sales increased to $178.0 million during the second quarter from $123.6 million, up 44.0%. As a percentage of revenue, e-commerce sales for the second quarter of 2002 represented 22.0% as compared to 17.4% of sales in the previous second quarter.

For the first six months of the year, Fisher recorded sales of over $1.5 billion, up 13.6% from the same period last year. E-commerce sales for the six-month period totaled $348.8 million.

Fisher continues to maintain its expectation of a 11% to 12% overall growth rate (excluding foreign exchange effects) for 2002, with expected revenue growth between 13% and 14% for its Domestic Distribution sector and 2.5% and 3.0% growth for its Laboratory Workstations division. The company revised its forecast for International segment sales, raising it from 4% to 4.5%.

VWR International, Merck KGaA's Laboratory Distribution segment, which includes both VWR and Merck Eurolab, reported second quarter sales of 686.9 million [euro] ($630.2 million = 1.09 [euro] = $1) over sales of 710.3 [euro] million ($623.1 million = 1.14 [euro] = $1), a decrease of 3.3% in Euros and an increase of 1.1% in dollars. VWR International stated that the decline in Euros was due to the weaker dollar and the reduction in R&D spending by pharmaceutical and biotechnology customers. Merck Eurolab accounted for 30.1% of VWR International's second quarter sales.

Merck's Analytics and Reagents segment reported sales growth of 4.0% to 129.0 million [euro] ($118.3 million = 1.09 [euro] = $1). Segment sales to Asia grew strongly on demand for high-purity solvents and special test kits for food and the environment. Life Science Product sales grew 1.0% to 101.0 million [euro] ($92.7 million = 1.09 [euro] = $1), with strong growth in Pharmaceutical Bulk Compounds and Custom Synthesis, which both reported double-digit growth. The Bioscience business, however, reported a slowing in the research and development budgets of US pharmaceutical companies.

Apogent Technologies reported sales for the third quarter ended June 30, 2002 of $276.8 million, up 8.5% over the $255.3 million in reported sales for the third quarter of 2001. Third quarter sales of Clinical Diagnostic showed the largest segment increase, rising 10.6% to $132.6 million from $119.9 million a year ago. Labware and Life Sciences sales grew by 9.8% to $113.9 million, while Laboratory Equipment sales fell 4.2% to $30.4 million.

Apogent made three acquisitions during the quarter: Marsh Bio Products, which will be included in the Labware and Life Sciences segment (see IBO 4/30/ 02); TFO, a designer and manufacturer of flexible hydration products and accessories, which will also be included in the Labware and Life Sciences segment; and SMC Manufacturing Company's mirror product line, which will complement Apogent's Naugatuck Glass Company in its Clinical Diagnostics segment.

Kewaunee Scientific's sales for the first quarter ended July 31, 2002 decreased 1.7% to $19.4 million from $19.7 million in the first quarter of 2001. Laboratory product sales for the quarter rose slightly during the first quarter, while sales for Technical products declined 28.0% from the comparable period a year ago due to the slowdown in spending from customers in the high-tech area. For its lab products business, the company also reported a year-over-year increase in earnings and profit margins.

New Brunswick Scientific reported second quarter sales of $16.1 million, an increase of 8.9% from sales of $14.8 million in the same quarter a year ago. On a comparable basis, which does not include second quarter 2001 sales of custom-engineered bioprocess equipment and revenues from DGI BioTechnologies, sales increased 25%.

Sales for the first six months of 2002 were flat at $29.4 million, but on a comparable basis, increased 16%. New Brunswick stated a positive outlook despite the short-term challenges in its industry and that it expects its European operations to benefit from the weakening dollar and new product development which will help sales early next year.

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Laboratory Equipment/Distribution Index, Total

                                1997   1998   1999   2000   2001   2002

Total Annual Revenues ($M)      4031   4348   4897   5137   5734    -2nd
Quarter Revenues ($M)       982    1029   1177   1250   1385   1543
Annual Oper. Profits ($M)       160    205    256    270    312  -Annual
Oper. Profits (%)        4.0    4.7    5.2    5.3    5.4     -2nd
Quarter Oper. Profits
  ($M)                           42     49     70     77     90    102
2nd Quarter Oper. Profits (%)   4.3    4.8    6.0    6.1    6.5    6.6

                                               % change

                                97/98   98/99   99/00   00/01   01/02

Total Annual Revenues ($M)       7.9    12.6     4.9    11.6     -2nd
Quarter Revenues ($M)        4.7    14.5     6.2    10.8    11.4
Annual Oper. Profits ($M)       28.2     25      5.5    15.7     -Annual
Oper. Profits (%)          --      --      --      --      -2nd
Quarter Oper. Profits
  ($M)                          17.0    43.2     9.4    17.2    13.3
2nd Quarter Oper. Profits (%)    --      --      --      --      -
IBO Laboratory Equipment/Distribution Sales Index companies: Apogent
Technologies, Fisher Scientific International, Kewaunee Scientific,
Merck KGaA (VWR International), and New Brunswick Scientific.