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November 3, 1999 at 12:00 AM EST

Quidel Reports Second Quarter Fiscal Year 2000 Financial Results

SAN DIEGO, Nov. 3 /PRNewswire/ -- Quidel Corporation (Nasdaq: QDEL) today announced its financial results for the second fiscal quarter ended September 30, 1999. The net loss for the quarter ended September 30, 1999 was $2,418,000, or $.10 per share, compared to a net loss of $716,000, or $.03 per share for the quarter ended September 30, 1998. The net loss for the quarter is primarily the result of the consolidation of Metra Biosystems, Inc., which was acquired in August 1999. Metra had a net loss of $892,000 for the quarter, and $820,000 was written-off for in-process research and development acquired from Metra. Quidel's existing operations resulted in a loss of $706,000 for the quarter primarily related to the conversion by the Company to an enterprise-wide computer operating system.

The net loss for the six months ended September 30, 1999 was $1,933,000, or $.08 per share, compared to a net loss of $698,000, or $.03 per share for the six months ended September 30, 1998.

"This quarter, we took the first step in expanding our product portfolio with the acquisition of Metra Biosystems. The integration is progressing as planned and we expect Metra to break even or be profitable in subsequent quarters," said Andre de Bruin, vice chairman, president and chief executive officer of Quidel Corporation. "In addition, the Company has successfully completed the implementation of a sophisticated computer system that is expected to substantially improve our ability to manage the Company more efficiently in the future."

Quidel Corporation discovers, develops, manufactures and markets point-of-care, rapid diagnostic tests for detection of medical conditions and illnesses. These products provide accurate, rapid and cost-effective diagnostic information for acute and chronic conditions that affect women's health throughout the phases of their lives such as reproductive status, pregnancy management and osteoporosis. Quidel also provides point-of-care diagnostics for infectious diseases, including strep throat, H. pylori infection, chlamydia and infectious mononucleosis. Quidel's products are sold to healthcare professionals for use in physician's offices, clinical laboratories and pharmacies, and to consumers through organizations that provide private label, store brand products. These tests provide diagnostic information to enable rapid treatment and improve health outcomes, lower costs, and increase patient satisfaction.

This press release contains forward-looking statements regarding Quidel, its products and its future activities within the meaning of the federal securities laws. These forward-looking statements involve material risks and uncertainties. Many possible factors could affect the future results and performance of Quidel's products, such that actual results and performance may differ materially. If Quidel's products fail to perform as expected, or if there is lower consumer demand for these products than expected, Quidel's financial condition and operating results may be materially and adversely affected. Quidel's financial condition and operating results may also be materially and adversely affected by a number of other factors, including, without limitation, seasonality, adverse changes in competitive and economic conditions, actions by the Company's distributors, manufacturing and production delays or difficulties and adverse actions or delays in product reviews by the FDA. Please see the discussion of these and other factors in Quidel's annual reports on Form 10-K and subsequent quarterly reports on Form 10-Q. For more information, please visit Quidel's web site at http://www.quidel.com.

                              Quidel Corporation
               Condensed Consolidated Statements of Operations

    (In thousands, except  per share data)

                                     Three months ended    Six months ended
                                      9/30/99   9/30/98    9/30/99   9/30/98
                                         (unaudited)          (unaudited)

    Net sales                         $11,584   $10,344    $22,184   $20,147
    Research contracts, license
     fees and royalties                   619     1,076      1,591     2,144
         Total revenues                12,203    11,420     23,775    22,291

    Operating expenses
     Cost of sales                      6,374     6,074     11,809    11,099
     Sales and marketing                3,685     2,251      6,340     4,473
     General and administrative         1,717     1,798      2,774     2,756
     Research and development           2,373     2,067      3,957     4,114
     Purchased in-process research
      and development                     820        --        820        --
     Write-down and closure of
      European subsidiaries                --        20         --       687

         Total operating expenses      14,969    12,210     25,700    23,129

    Operating loss                     (2,766)     (790)    (1,925)     (838)

    Other income (expense)                 25        74         (8)      140
    Benefit for income taxes              323        --         --        --

    Net loss                          $(2,418)    $(716)   $(1,933)    $(698)

    Basic and diluted earnings
     per share                          $(.10)    $(.03)     $(.08)    $(.03)
    Shares used in basic and
     diluted EPS                       23,840    23,780     23,831    23,767

    Gross profit as a percent
     of net sales                       45.0%     41.3%      46.8%     44.9%
    Sales and marketing as a
     percent of net sales               31.8%     21.8%      28.6%     22.2%
    General and administrative
     as a percent of net sales          14.8%     17.4%      12.5%     13.7%
    Research and development
     as a percent of net sales          20.5%     20.0%      17.8%     20.4%

    Earnings (loss) before interest,
     taxes, depreciation and
     amortization (EBITDA)            $(1,318)     $123       $427    $1,023

    Basic and diluted EBITDA per share  $(.06)     $.01       $.02      $.04

    Balance sheet data:                         9/30/99             3/31/99
       Cash and Cash Equivalents                 $7,132             $6,622
       Working Capital                            8,675             16,547
       Total Assets                              59,207             52,606
       Stockholders' Equity                      42,841             44,706

SOURCE  Quidel Corporation

Charles J. Cashion, Chief Financial Officer of Quidel Corporation, 858-552-7962;
or Angela Hartley of IRPR Strategies,858-451-0772,
for Quidel Corporation