Laboratory Corporation of America-Registered Trademark- Holdings
358 South Main Street
Burlington, NC 27215
Telephone: 336-584-5171
FOR IMMEDIATE RELEASE
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Contact: 336-436-4855 Shareholder Direct: 800-LAB-0401
Pamela Sherry www.labcorp.com
LABORATORY CORPORATION OF AMERICA-REGISTERED TRADEMARK- ANNOUNCES
DEFINITIVE AGREEMENT TO ACQUIRE NATIONAL GENETICS INSTITUTE
Burlington, NC, June 20, 2000 - Laboratory Corporation of
America-Registered Trademark- Holdings (LabCorp-Registered
Trademark-) (NYSE: LH) today announced that it has entered into
a definitive agreement with privately-held National Genetics
Institute, Inc. (NGI) to acquire all of the stock of NGI.
Established in 1991, Los Angeles-based NGI is a leading national
provider of hepatitis C (HCV) testing using innovative molecular
diagnostic technology. Its customers include physicians, drug
companies performing clinical trials, and plasma product
companies. Terms of the definitive agreement were not disclosed.
The transaction, which is expected to be completed in July, is
subject to certain, normal closing conditions.
The acquisition of NGI gives LabCorp access to NGI's ultra-
sensitive tools to assess HCV disease progress at levels
previously undetectable, and furthers LabCorp's leadership
position in infectious disease and HCV testing. It also creates
a LabCorp esoteric facility on the West Coast, enhancing
LabCorp's standing as the most comprehensive molecular diagnostic
and specialty testing network in the United States, offering
patients and physicians more rapid test turnaround and
unparalleled access to the latest diagnostic tools.
HCV is one of the most common, chronic viral infections in the
US, and is considered the cause of approximately 25 percent of
all US liver transplants. Historically, HCV has been
underdiagnosed, and few therapies for treatment have been
available. With more than four million persons in the US
infected, and more than 30,000 new cases each year, identifying
and treating HCV has significant health care cost and quality-of-life
implications. With the advent of new therapies and treatment
options, testing to diagnose and monitor the disease is a
critical step in the management of HCV.
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"The acquisition of NGI is an important step in the continued
implementation of our strategy to differentiate LabCorp by
offering critical, state-of-the-art laboratory testing services,"
said Thomas P. Mac Mahon, chairman and chief executive officer of
LabCorp. "We believe infectious disease testing, and
specifically hepatitis C testing employing molecular diagnostics,
will continue to be one of the fastest growing areas of
laboratory testing. NGI's superior management team, which has
recognized scientific expertise in this segment, will be an
excellent addition to LabCorp's established leadership position
in infectious disease. Additionally, the acquisition provides us
with the opportunity to establish a West Coast esoteric facility
and expand LabCorp's current innovative testing methods,
particularly HIV viral load testing through NGI."
The Company noted that each of the above forward-looking
statements is subject to change based on various important
factors, including without limitation, competitive actions in the
marketplace and adverse actions of governmental and other third-
party payors. Further information on potential factors that
could affect the Company's financial results is included in the
Company's Form 10-K for the year ended December 31, 1999 and
subsequent SEC filings.
Laboratory Corporation of America-Registered Trademark- Holdings
(LabCorp-Registered Trademark-) is a national clinical laboratory
with annual revenues of $1.7 billion in 1999. With 18,000
employees and over 100,000 clients nationwide, the company offers
more than 2,000 clinical tests ranging from simple blood analyses
to sophisticated molecular diagnostics. LabCorp leverages its
expertise in innovative clinical testing technology with three
Centers of Excellence. The Center for Molecular Biology and
Pathology, in Research Triangle Park (RTP), North Carolina,
develops applications for polymerase chain reaction (PCR)
technology. Its Center for Occupational Testing in RTP is the
world's largest substance abuse testing facility, and the Center
for Esoteric Testing in Burlington, North Carolina, performs the
largest volume of specialty testing in the network. LabCorp's
clients include physicians, state and federal government, managed
care organizations, hospitals, clinics, pharmaceutical and
Fortune 1000 companies, and other clinical laboratories.
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