QIAGEN Reports Third Quarter 2003 Results VENLO, Netherlands, Oct. 27 /PRNewswire-FirstCall/ -- QIAGEN N.V. (Nasdaq: QGENF; Frankfurt, Prime Standard: QIA) today announced its results of operations for the third quarter and nine-month period ended September 30, 2003. The Company reported that net sales for its third quarter increased 18% to $90.4 million from $76.9 million for the same period in 2002. Reported operating income for the third quarter of 2003 increased 49% to $19.3 million from $12.9 million in the comparable period in 2002, and net income increased 61% to $11.8 million from $7.3 million in 2002. Diluted earnings per share increased 60% to $0.08 (based on 147.7 million average shares and share equivalents outstanding) from $0.05 (based on 146.0 million average shares and share equivalents outstanding) in the comparable period in 2002. The reported consolidated net sales and diluted earnings per share exceeded or met the Company's projections as communicated in the Company's guidance for the third quarter 2003 on August 5, 2003. For the nine-month period ended September 30, 2003, net sales increased 16% to $256.3 million from $220.2 million in the comparable period of 2002. Operating income as reported for the first nine months of 2003 increased 39% to $52.7 million from $38.0 million for the same period in 2002, net income increased 58% to $33.9 million from $21.4 million in 2002. Diluted earnings per share increased 53% to $0.23 (based on 146.9 million average shares and share equivalents outstanding) from $0.15 (based on 145.8 million average shares and share equivalents outstanding). QIAGEN's third quarter at constant currencies: 2003 2003 2002 Q3 Q3 Q3 Growth Rates Constant Constant Reported Currency Reported Reported Currency Total Revenues in USD 90,446,000 85,919,000 76,882,000 18% 12% Consumables 72% 72% 72% 17% 12% Instruments 10% 10% 10% 14% 9% Oligos 11% 11% 13% 2% -1% Other 7% 7% 5% 65% 50% Total Revenues 100% 100% 100% 18% 12% Total Revenues excl QIAGEN Genomics 19% 13% Gross Margin 65% 67% 66% 17% 13% Operating Income 21% 23% 17% 49% 53% Net income 13% 14% 9% 61% 62% EPS 0.08 0.08 0.05 60% 60% "We are very pleased to report these financial results of our successful third quarter," said QIAGEN's Chief Executive Officer Dr. Metin Colpan. "We are seeing positive momentum in many market segments. With an ongoing shift in focus of academic and industrial R&D to functional genomics and clinical research, and with the emergence of new and more complex applications, QIAGEN's core competencies in sample collection, stabilization, purification and selected down-stream applications like Q-PCR and gene silencing are increasingly demanded. Our focus on our core competencies fuels our strength in addressing customer needs with state-of-the-art and proprietary enabling solutions. In addition, the recently observed increases in pharmaceutical and biotech research spending allow us to look optimistically into 2004." QIAGEN's Third Quarter 2003 Highlights: -- QIAGEN and Thermo Electron entered into an alliance in which Thermo Electron will co-promote Thermo's Kingfisher technology for exclusive use with QIAGEN Magnetic Bead consumable technologies for medium to high-throughput nucleic acid-based applications in research and molecular diagnostics. -- Frost & Sullivan recognizes QIAGEN for superior product innovation in the nucleic acid isolation market. A comprehensive end-user study conducted by Frost & Sullivan entitled "U.S. Nucleic Acid Isolation Markets" identified QIAGEN as the market-leading provider of innovative and cost-effective products for the purification of nucleic acids. In an analysis entitled The World Robotics in Biology: Liquid Handling Markets, Frost & Sullivan identified QIAGEN as the undisputed leader in product innovation in this area and highlighted QIAGEN for product innovation in various automation solutions targeting molecular diagnostics and research. -- QIAGEN and Novartis AG finalized the development of a novel algorithm for the selection of highly functional target sequences for RNA interference. In the largest project of its kind to date, 3000 randomly designed synthetic siRNA duplexes, targeting 30 genes were analyzed for functionality. Based on this database an automated target selection algorithm was developed which has demonstrated a significant performance improvement over existing design methods in extensive evaluation. QIAGEN and Novartis are also engaged in a successful supply relationship pursuant to which QIAGEN will supply siRNA products to Novartis. -- QIAGEN sale of technology portfolio to Merial Limited, one of the world's leading animal health companies. The technology portfolio of the Pecura division included the veterinary rights to a novel class of drugs that are based on immunstimulatory cytosine-phosphodiester- guanine (CpG) dinucleotides, presented in synthetic oligodeoxynucleotides (CpG-ODN), which are believed to have promising potential in veterinary applications for livestock and companion animals. While QIAGEN believes that the assets have significant potential as veterinary therapeutics, they were not core to QIAGEN's strategic direction and were therefore not actively being pursued. Detailed information on the Company's business and financial performance will be presented in the Company's conference call on October 28, 2003 at 9:30 a.m. EST. The corresponding presentation slides will be available 60 minutes ahead of the conference call on the Company's website at http://www.qiagen.com/goto/102803. A webcast of the conference call will be available at http://www.videonewswire.com/QIAGEN/102803. QIAGEN also announced today management changes and a new management structure which will take effect January 1, 2004 and are designed to provide continued strong leadership to address QIAGEN's exciting opportunities in the months and years ahead. Dr. Metin Colpan, 48, Managing Director and Chief Executive Officer, will transition his role to Senior Technology Advisor to QIAGEN advising on technology projects. Dr. Colpan, a co-founder, will also join QIAGEN's Supervisory Board. Peer M. Schatz, 38, Managing Director and Chief Financial Officer for the past 11 years, has been nominated as QIAGEN's Chief Executive Officer as well as Chairman of both the Management Board and the newly created Executive Committee. The transition will take place over the coming two-month period to ensure a smooth transfer of responsibilities and continuity in all key areas of the company's operations. As of today, Dr. Metin Colpan and Peer M. Schatz were the sole members of the Managing Board and have jointly led the Company. QIAGEN also created an Executive Committee which will be led by Mr. Schatz. The Executive Committee is comprised of the Company's most senior executives responsible for core functions on a global basis. The Committee will be the management group which continues to chart QIAGEN's strategic and operational direction. Please review the additional press release for further information. An interview with the newly introduced Executive Committee can be found on QIAGEN's webpage under http://www.qiagen.com/. QIAGEN N.V., a Netherlands holding company with subsidiaries in Germany, the United States, Japan, the United Kingdom, Switzerland, France, Italy, Australia, Norway, Austria and Canada, believes it is the world's leading provider of innovative enabling technologies and products for the separation, purification and handling of nucleic acids. The Company has developed a comprehensive portfolio of more than 320 proprietary, consumable products for nucleic acid separation, purification and handling, nucleic acid amplification, as well as automated instrumentation, synthetic nucleic acid products and related services. QIAGEN's products are sold in more than 42 countries throughout the world to academic research markets and to leading pharmaceutical and biotechnology companies. In addition, the Company is positioning its products for sale into developing commercial markets, including DNA sequencing and genomics, nucleic acid-based molecular diagnostics, and genetic vaccination and gene therapy. QIAGEN employs approximately 1,600 people worldwide. Further information on QIAGEN can be found at http://www.qiagen.com/. Certain of the statements contained in this news release may be considered forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. To the extent that any of the statements contained herein relating to QIAGEN's products and markets and operating results are forward-looking, such statements are based on current expectations that involve a number of uncertainties and risks. Such uncertainties and risks include, but are not limited to, risks associated with management of growth and international operations (including the effects of currency fluctuations and risks of dependency on logistics), variability of operating results, the commercial development of the DNA sequencing, genomics and synthetic nucleic acid-related markets, nucleic acid-based molecular diagnostics market, and genetic vaccination and gene therapy markets, competition, rapid or unexpected changes in technologies, fluctuations in demand for QIAGEN's, products (including seasonal fluctuations), difficulties in successfully adapting QIAGEN's products to integrated solutions and producing such products, the ability of QIAGEN to identify and develop new products and to differentiate its products from competitors, and the integration of acquisitions of technologies and businesses. For further information, refer to the discussion in reports that QIAGEN has filed with the U.S. Securities and Exchange Commission (SEC). QIAGEN N.V. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited) Three months ended September 30, 2003 2002 Net sales $ 90,446,000 $ 76,882,000 Cost of sales 31,389,000 26,453,000 Gross profit 59,057,000 50,429,000 Operating Expenses: Research and development 7,538,000 7,310,000 Sales and marketing 20,784,000 19,003,000 General and administrative 11,425,000 11,171,000 Total operating expenses 39,747,000 37,484,000 Income from operations 19,310,000 12,945,000 Other Income (Expense): Interest income 227,000 171,000 Interest expense (972,000) (577,000) Research and development grants 984,000 133,000 Gain (loss) on foreign currency transactions 8,000 (353,000) Loss from equity method investee (597,000) (267,000) Other miscellaneous expense, net 63,000 (63,000) Total other expense (287,000) (956,000) Income before provision for income taxes 19,023,000 11,989,000 Provision for income taxes 7,258,000 4,700,000 Minority interest - - Net income $ 11,765,000 $ 7,289,000 Weighted average number of diluted common shares 147,706,000 145,976,000 Diluted net income per common share $ 0.08 $ 0.05 QIAGEN N.V. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited) Nine months ended September 30, 2003 2002 Net sales $256,283,000 $220,159,000 Cost of sales 87,097,000 71,853,000 Gross profit 169,186,000 148,306,000 Operating Expenses: Research and development 22,670,000 20,489,000 Sales and marketing 60,609,000 55,849,000 General and administrative 31,619,000 31,111,000 In-process research and development - 1,200,000 Acquisition and related costs - 1,648,000 Closure and related costs 1,567,000 - Total operating expenses 116,465,000 110,297,000 Income from operations 52,721,000 38,009,000 Other Income (Expense): Interest income 667,000 828,000 Interest expense (3,082,000) (1,748,000) Research and development grants 1,681,000 470,000 Gain (loss) on foreign currency transactions 798,000 (1,756,000) Loss from equity method investee (1,264,000) (844,000) Other miscellaneous expense, net 59,000 (83,000) Total other expense (1,141,000) (3,133,000) Income before provision for income taxes 51,580,000 34,876,000 Provision for income taxes 17,717,000 13,512,000 Minority interest - (5,000) Net income $ 33,863,000 $ 21,369,000 Weighted average number of diluted common shares 146,867,000 145,767,000 Diluted net income per common share $ 0.23 $ 0.15 Diluted net income per common share excluding acquisition and closure and related costs $ 0.23 $ 0.16 QIAGEN N.V. CONDENSED CONSOLIDATED BALANCE SHEETS September 30, December 31, 2003 2002 Assets (unaudited) Current Assets: Cash and cash equivalents $ 75,261,000 $ 44,893,000 Marketable securities 11,528,000 11,530,000 Notes receivable 4,285,000 4,337,000 Accounts receivable, net 54,260,000 51,451,000 Income taxes receivable 457,000 1,901,000 Inventories 63,650,000 56,113,000 Deferred income taxes 6,838,000 11,629,000 Prepaid expenses and other 11,709,000 11,188,000 Total current assets 227,988,000 193,042,000 Long-Term Assets: Property, plant and equipment, net 223,620,000 211,913,000 Long-term marketable securities 516,000 735,000 Goodwill 28,678,000 25,569,000 Intangible assets, net 14,192,000 12,750,000 Deferred income taxes 5,296,000 3,026,000 Other assets 11,294,000 7,476,000 Total long-term assets 283,596,000 261,469,000 Total assets $511,584,000 $454,511,000 Liabilities and Shareholders' Equity Current Liabilities: Lines of credit $ - $ 935,000 Current portion of long-term debt 1,489,000 1,340,000 Current portion of capital lease obligations 1,127,000 999,000 Accounts payable 17,047,000 23,661,000 Accrued liabilities 30,576,000 28,031,000 Income taxes payable 23,817,000 20,487,000 Deferred income taxes 8,231,000 6,035,000 Total current liabilities 82,287,000 81,488,000 Long-Term Liabilities: Long-term debt, net of current portion 101,986,000 95,733,000 Capital lease obligations, net of current portion 11,592,000 11,107,000 Other 3,052,000 3,152,000 Total long-term liabilities 116,630,000 109,992,000 Commitments and Contingencies Shareholders' Equity: Common shares, EUR .01 par value: Authorized--260,000,000 shares Issued and outstanding-- 146,118,793 shares in 2003 and 145,533,589 shares in 2002 1,484,000 1,478,000 Additional paid-in-capital 139,392,000 134,547,000 Retained earnings 154,283,000 120,420,000 Accumulated other comprehensive income 17,508,000 6,586,000 Total shareholders' equity 312,667,000 263,031,000 Total liabilities and shareholders' equity $511,584,000 $454,511,000 DATASOURCE: QIAGEN N.V. CONTACT: Peer M. Schatz, Chief Financial Officer, +49-2103-29-11702, , or Dr. Solveigh Mahler, Investor Relations, +49-2103-29-11710, , both of QIAGEN N.V. Web site: http://www.qiagen.com/

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