<PAGE>
VISIBLE GENETICS INC.
CONSOLIDATED BALANCE SHEETS
( UNITED STATES DOLLARS)
<TABLE>
<CAPTION>
SEPTEMBER 30 DECEMBER 31
2000 1999
------------- -------------
<S> <C> <C>
ASSETS
Current assets
Cash and cash equivalents $ 1,984,810 $ 2,792,985
Short-term investments 86,722,840 39,894,978
Trade receivables, net of allowance for doubtful accounts 3,470,473 5,657,822
Other receivables 457,271 668,748
Prepaid and deposits 976,664 729,307
Inventory 3,052,775 2,600,007
------------- -------------
Total current assets 96,664,833 52,343,847
------------- -------------
Fixed assets 8,239,877 4,173,335
Patents and licenses 12,984,233 2,122,367
------------- -------------
$ 117,888,943 $ 58,639,549
============= =============
LIABILITIES
Current liabilities
Accounts payable $ 3,780,943 $ 3,110,442
Accrued liabilities 3,940,161 3,622,110
------------- -------------
Total current liabilities 7,721,104 6,732,552
------------- -------------
Mandatorily redeemable convertible preferred shares 23,547,177 27,555,652
------------- -------------
SHAREHOLDERS' EQUITY
Share capital 169,494,099 75,422,070
Other equity (35,224) 8,987,328
Cumulative translation adjustment (1,190,311) (619,911)
Deficit (81,647,902) (59,438,142)
------------- -------------
86,620,662 24,351,345
------------- -------------
$ 117,888,943 $ 58,639,549
============= =============
</TABLE>
<PAGE>
VISIBLE GENETICS INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNITED STATES DOLLARS)
<TABLE>
<CAPTION>
THREE MONTHS ENDED SEPTEMBER 30 NINE MONTHS ENDED SEPTEMBER 30
2000 1999 2000 1999
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
SALES
Products $ 2,934,278 $ 3,175,577 $ 9,675,155 $ 7,820,349
Services 74,188 310,900 384,854 852,114
------------ ------------ ------------ ------------
3,008,466 3,486,477 10,060,009 8,672,463
------------ ------------ ------------ ------------
COST OF SALES
Products 2,804,305 2,061,324 7,264,251 5,794,770
Services 92,915 193,509 299,706 523,882
------------ ------------ ------------ ------------
2,897,220 2,254,833 7,563,957 6,318,652
------------ ------------ ------------ ------------
GROSS MARGIN 111,246 1,231,644 2,496,052 2,353,811
EXPENSES
Sales, general and administrative 7,423,619 5,675,071 20,141,522 13,408,613
Research and development 2,835,718 2,112,131 7,859,436 5,986,419
------------ ------------ ------------ ------------
10,259,337 7,787,202 28,000,958 19,395,032
------------ ------------ ------------ ------------
LOSS FROM OPERATIONS BEFORE INTEREST (10,148,091) (6,555,558) (25,504,906) (17,041,221)
Interest income 1,305,460 209,032 3,304,269 351,253
Interest and financing expense (1,530) (683,018) (9,123) (1,783,472)
------------ ------------ ------------ ------------
NET LOSS FOR THE PERIOD (8,844,161) (7,029,544) (22,209,760) (18,473,440)
Cumulative preferred dividends and accretion
of discount attributable to preferred stock (868,985) -- (2,806,134) --
NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS $ (9,713,146) $ (7,029,544) $(25,015,894) $(18,473,440)
------------ ------------ ------------ ------------
Weighted average number of common
shares outstanding 15,512,249 9,600,049 14,125,983 9,508,358
BASIC AND FULLY DILUTED LOSS PER SHARE $ (0.63) $ (0.82) $ (1.77) $ (2.03)
------------ ------------ ------------ ------------
</TABLE>
<PAGE>
VISIBLE GENETICS INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNITED STATES DOLLARS)
<TABLE>
<CAPTION>
NINE MONTHS ENDED SEPTEMBER 30
2000 1999
----------------------- ---------------------
<S> <C> <C>
CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES
Net Loss for the period $ (22,209,760) $ (18,473,440)
Add: Items not involving cash -
Depreciation 1,837,871 1,177,973
Amortization 1,464,708 291,988
Non cash financing expense related to warrants granted - 1,285,376
Foreign exchange (113,844) (11,276)
Increase ( decrease ) from changes in -
Trade receivables 2,161,046 (1,574,279)
Other receivables 372,816 696,617
Prepaid and deposits (265,667) (275,338)
Inventory (620,367) 505,598
Accounts payable 761,890 (793,094)
Accured liabilities 318,051 (57,261)
----------------------- ---------------------
(16,293,256) (17,227,136)
======================= =====================
Investing activities
Purchase of fixed assets (5,970,824) (1,446,084)
Licenses and patents acquired (12,326,574) (440,031)
Purchase of short-term investments (86,722,840) (9,167,234)
Redemption of short-term investments 39,894,978 5,108,254
----------------------- ---------------------
(65,125,260) (5,945,095)
======================= =====================
Financing activities
Common shares issued, net of expenses 80,584,446 1,927,377
Convertible preferred stock issued, net of expenses 29,176,857
Repayment of loan (4,100,000)
Other equity - 11,438
----------------------- ---------------------
80,584,446 27,015,672
======================= =====================
Effect of exchange rate fluctuations on cash balances 25,895 (220,573)
----------------------- ---------------------
Increase (decrease) in cash during the year (808,175) 3,622,868
CASH, BEGINNING OF PERIOD 2,792,985 6,165,924
----------------------- ---------------------
CASH, END OF PERIOD $ 1,984,810 $ 9,788,792
======================= =====================
</TABLE>
<PAGE>
VISIBLE GENETICS INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(UNITED STATES DOLLARS)
<TABLE>
<CAPTION>
NINE MONTHS ENDED SEPTEMBER 30
2000 1999
--------------------- ---------------------
<S> <C> <C>
Net loss for the period $ (22,209,760) $ (18,473,440)
Other comprehensive income:
Foreign currency translation adjustments (585,175) (489,326)
--------------------- ---------------------
Comprehensive loss for the period $ (22,794,935) $ (18,962,766)
--------------------- ---------------------
</TABLE>
VISIBLE GENETICS INC.
Consolidated Statements of Deficit
(UNITED STATES DOLLARS)
<TABLE>
<CAPTION>
NINE MONTHS ENDED SEPTEMBER 30
2000 1999
--------------------- ---------------------
<S> <C> <C>
Deficit, beginning of year $ (59,438,142) $ (34,151,257)
Net loss for the period (22,209,760) (18,473,440)
--------------------- ---------------------
Deficit, end of the period $ (81,647,902) $ (52,624,697)
--------------------- ---------------------
</TABLE>