Dade Behring Reports 42 Percent Earnings Per Share Growth on 8 Percent Revenue Growth in Second Quarter 2007

Dade Behring Reports 42 Percent Earnings Per Share Growth on 8 Percent Revenue Growth in Second Quarter 2007

Company repurchases $122 million of common stock

Dade Behring Holdings, Inc. (NASDAQ:DADE) today reported second quarter earnings per share of $0.61, an increase of 18 cents or 42 percent over the same quarter in 2006, and also reported revenue of $481 million, an increase of 8.2 percent. On a constant currency basis1, second quarter 2007 revenue grew 5.2 percent. Earnings per share for the six months ended June 2007 of $1.08 increased $0.27 or 33 percent over the similar period in 2006, and six-month revenue increased 9.3 percent to $940 million, representing 6.1 percent growth on a constant currency basis.

“Our strong financial performance is directly related to our people and their ability to consistently execute our customer excellence business strategy,” said Jim Reid-Anderson, Chairman, President and CEO, Dade Behring. “We are highly focused on providing world-class products and service to our 25,000 clinical laboratory customers around the globe.”

Cash flow from operations, after investing activities and excess tax benefits from stock-based compensation, was $56 million and $106 million for the quarter and six months ended June 30, 2007, respectively. Cash earnings per share2 for the second quarter was $0.97 as compared to $0.68 in the second quarter of 2006, and was $1.83 for the first six months of 2007 as compared to $1.31 for the same period in 2006.

The company’s worldwide installed base of instruments was 41,400 as of June 30, 2007, an increase of 5.5 percent over the period ended June 30, 2006. During the second quarter, the company completed the bi-annual review of its installed base and removed approximately 400 units from the data base, which negatively impacted the second quarter installed base growth rate by approximately 1.0 percent.

During the quarter, the company repurchased $122 million of its common stock, and during the first six months of the year it repurchased $179 million of its shares. Since the inception of its share repurchase plan in the third quarter of 2005, the company has repurchased $583 million or 15 percent of the outstanding shares. As of June 30, 2007, 0.6 million shares remain authorized for repurchase under the current program.

In the second quarter, the company recorded a $3.1 million tax benefit related to a reduction in the company’s reserve for uncertain tax positions, which favorably impacted earnings per share by $0.04.

Operational Highlights
U.S. revenue grew 5.8 percent and 6.9 percent over the second quarter and first six months of 2006, respectively. Revenue outside of the United States grew 4.8 percent and 5.6 percent for the similar periods on a constant currency basis.
Global core-product reagent, service and operating lease revenue grew 3.8 percent in the second quarter and 5.4 percent for the first six months of the year, on a constant currency basis.
Operating income, as a percent of sales, was 16.8 percent and 16.3 percent for the quarter and six months ended June 30, 2007.

Second Quarter 2007 Announcements

During the second quarter, Dade Behring introduced the QCC PowerPak™ Package—a performance enhancement tool for the Dimension® systems that adds new automated features, allowing more “hands-off” time for clinical laboratory personnel.

Dade Behring also announced the signing of a three-year agreement with Novation, the healthcare contracting services company of VHA Inc. and the University HealthSystem Consortium (UHC). The agreement provides Novation’s 2,500 alliance members with continued access to Dade Behring’s entire portfolio of chemistry products.

In addition, Premier Inc. healthcare alliance recognized Dade Behring for the second consecutive year with the prestigious Pinnacle Award for supplier performance that meets and exceeds the expectations of Premier and its members.

Conference Call Cancelled

In light of the announcement today by Dade Behring and Siemens, of the companies’ definitive agreement for Siemens to acquire Dade Behring for $77.00 per share in cash, Dade Behring has cancelled its scheduled earnings conference call.

About Dade Behring

With 2006 revenue of more than $1.7 billion, Dade Behring is the world’s largest company solely dedicated to clinical diagnostics. It offers a wide range of products, systems and services designed to meet the day-to-day needs of clinical laboratories, delivering innovative solutions to customers and enhancing the quality of life for patients. Additional company information is available on the Internet at www.dadebehring.com.

This press release may contain “Forward-Looking Statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward statements include information regarding the intent, belief or current expectation of the company and members of its senior management team, including, without limitation, expectations regarding prospective performance and opportunities and the outlook for the company’s businesses, performance, opportunities and regulatory approval. In addition, the company is in the process of a major new product launch, which involves risks and uncertainties regarding product performance, costs of introduction and support, and customer acceptance. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by the company.