Biosite(R) Incorporated Announces Results for the Third Quarter of 2006

Company Enters Into $100 Million Accelerated Stock Repurchase Agreement 


SAN DIEGO, Oct. 26  /PRNewswire-FirstCall/ -- Biosite(R) Incorporated (NASDAQ:BSTE) today reported financial results for the third quarter of 2006 and discussed preliminary guidance for the fourth quarter of 2006 and preliminary revenue guidance for 2007. The Company also provided an overview of several potential new products for which clinical trials are planned in 2007.  In addition, Biosite has entered into an accelerated stock repurchase agreement to buy back $100 million of its common stock.

  Key Financial Results
  *  Revenues for the third quarter of 2006 totaled $74.6 million, a
     7 percent increase from $69.7 million in the comparable period of 2005.
     Year over year, BNP sales increased 4 percent, while sales of Biosite's
     other cardiovascular products increased 33 percent.  Combined revenue
     from physician office laboratories and international markets grew
     22 percent year over year.

  *  For the third quarter of 2006, GAAP diluted earnings per share was
     $0.49 and Non-GAAP diluted earnings per share was $0.74. By comparison,
     in the third quarter of 2005 the Company's diluted earnings per share
     was $0.68.

     Non-GAAP results exclude the impact of FAS 123R, Share-Based Payment,
     which relates to the expensing of non-cash stock-based compensation,
     such as stock options.  The Company adopted FAS 123R as of
     January 1, 2006 on a modified prospective basis.  See the tables
     included at the end of this release for a reconciliation of Non-GAAP
     financial results to GAAP financial results.  See also, "About Non-GAAP
     Financial Measures" below.

  *  GAAP operating income for the third quarter of 2006 was $14.3 million.
     Non-GAAP operating income for the third quarter of 2006 was
     $20.6 million. In the comparable period of 2005, operating income was
     $19.6 million.

  *  Cash generated from operations was $66.8 million in the first nine
     months of 2006 and $29.2 million in the third quarter of 2006, which
     was a 39 percent increase over the third quarter of 2005.



Following are financial highlights pertaining to revenues and cash flow for the three and nine months ended September 30, 2006 and 2005:

  ($ in 000's)

                        Three months ended            Nine months ended
                    9/30/06    9/30/05   Change   9/30/06   9/30/05  Change
  Triage(R) BNP
   Test sales      $45,531     $43,892     4%    $148,773  $142,721     4%
  Other
   cardiovascular
   product sales    14,279      10,753    33%      39,651    27,961    42%
  Other product
   sales            13,301      14,243    (7%)     39,216    40,600    (3%)
  Total product
   sales            73,111      68,888     6%     227,640   211,282     8%
  Total revenues    74,642      69,668     7%     231,741   215,278     8%

  Cash flow from
   operations      $29,219     $20,947    39%     $66,809   $79,341   (16%)
  Cash used for
   stock
   repurchases          --          --             30,000        --

                    9/30/06    12/31/05   Change
  Cash and
   marketable
   securities
   balance         $159,078   $132,412    20%





"In the third quarter we experienced a slow down in BNP test utilization among our U.S. hospital customers that was lower than our expectations, but appears to be consistent with quarterly fluctuations we have seen in prior years," said Kim Blickenstaff, Biosite's chairman and chief executive officer. "While near term growth prospects in the BNP testing market have declined due to high penetration levels, our latest annual survey of more than 3,000 U.S. hospitals and other recent market surveys lead us to believe we are maintaining our strong franchise. This will be important to our future efforts to launch new products.

"In terms of our prospects for 2007, we expect our other cardiovascular products, U.S. physician office and international markets to be key sources of sales growth next year. However, currently these revenue bases are relatively small so they may have only a limited impact on overall growth in 2007. We continue to believe that the key to restoring our growth rates lies with new products, and therefore we will focus on advancing the most important opportunities in 2007."

Financial Guidance Update

Commenting on expectations for 2006, Biosite management decreased its 2006 total revenue target to $308 million from $316 million. The Company has also updated its Non-GAAP diluted earnings per share target from $3.30 to $3.19. Biosite's GAAP diluted earnings per share target is $2.18. For 2007, Biosite management said its total revenue target is $326 million, a 6 percent increase over 2006.

"Biosite has reached an important stage in its evolution. Our core business remains stable, and we are generating substantial levels of cash, though growth has temporarily slowed while we work toward the commercialization of new products," said Blickenstaff. "We believe that returning value to stockholders through a stock repurchase program that is accretive to earnings per share, along with funding key product development initiatives that will fuel long term growth are good uses of our cash at this time."

See the Biosite Incorporated Guidance Data table included at the end of this release for additional details regarding the Company's financial guidance data, a reconciliation of Non-GAAP financial guidance to GAAP financial guidance and a description of certain factors that could affect the Company's actual financial results. See also, "About Non-GAAP Financial Measures" below.

Stock Repurchase Program

Biosite today announced that its board of directors approved an increase in the Company's stock repurchase program, raising the amount of stock that the Company is authorized to repurchase over the next 12 months to $100 million from $50 million.  In connection with this stock repurchase program, the Company has entered into a privately negotiated transaction with Goldman, Sachs & Co. to repurchase $100 million of its common stock.  Based on Biosite's closing stock price on October 25, 2006, the $100 million share repurchase authorization represents approximately 12 percent of the Company's total market capitalization.

Biosite will immediately pay Goldman Sachs $100 million and will receive a substantial majority of the shares to be delivered under the agreement within approximately five weeks.  The agreement includes collar provisions that establish the minimum and maximum numbers of shares to be repurchased.  The specific number of shares to be repurchased is generally based on the volume-weighted average share price of the Company's common shares during the six- to nine-month term of the accelerated repurchase agreement, subject to collar limits.  All of the repurchased shares will be retired.

The board of directors may authorize additional amounts for the stock repurchase program depending on prevailing market conditions, available cash resources and other factors. Future repurchases of stock may be made in the open market, in privately negotiated transactions, or through the use of derivative securities or arrangements.

"We are increasingly excited by the number of highly innovative products in our research and development pipeline, which resulted from our Biosite Discovery and licensing activities over the past several years," said Blickenstaff.  "These represent significant advances in diagnostic medicine for a variety of critical disease states and underscore the value of our commitment to research.

"In assessing this potential for our business and pipeline, we believe Biosite shares are substantially undervalued and represent a very attractive investment at current price levels.  Our announced share repurchase program is a tangible demonstration of our confidence in our future potential.  We are pleased that our strong balance sheet and history of free cash flow, which reflect the success of our business model, allow us to make this commitment at this time."

Research and Development

In the area of research and development, Biosite reported that it has continued to advance activities related to its top priority product initiatives: the Triage Sepsis Panel, intended to aid in the diagnosis of sepsis, a test to aid in the diagnosis of acute kidney injury, and next generation products based on the Triage Cardio Profiler(R) Panel, a product currently used to aid in the evaluation of chest pain patients.  Clinical trials intended to support regulatory submissions for these products are expected to commence in 2007.

Also in the third quarter of 2006, Biosite continued development of a protocol for a clinical trial aimed at supporting submission of a filing seeking regulatory approval to market the Triage Stroke Panel in the United States.  Other activities included site selection activities and preparations for a pilot study that is expected to take place in 2007.

"With more than 3,000 hospital customers, we have built an impressive installed base of business in the United States and have a pipeline of promising products," said Ken Buechler, Biosite's president and chief scientific officer.  "We believe our product pipeline has the potential to deliver significant growth in the future, but to make it happen we must focus our resources on a few key opportunities.  We will maintain our development activities on a variety of other programs, but will not raise their priority until we execute on our top priority product initiatives."

About Biosite(R) Incorporated

Biosite Incorporated is a leading bio-medical company commercializing proteomics discoveries for the advancement of medical diagnosis.  The Company's products contribute to improvements in medical care by aiding physicians in the diagnosis of critical diseases and health conditions. Biosite's Triage(R) rapid diagnostics are used in more than 50 percent of U.S. hospitals and in more than 60 international markets.  Information on Biosite can be found at http://www.biosite.com/.

Investor Conference Call

Biosite will host an investor conference call to discuss financial results and research and development progress. The call will take place today, October 26, 2006, at 1:30 p.m. PDT.  A live webcast of the call can be accessed via the Internet at http://www.biosite.com/.  The phone number for U.S. callers is [phone] and international callers is [phone]. The conference call code for the live call is 70356502.  The call will be archived on the Biosite website for at least 21 days.  The phone replay number is [phone]. International callers, please dial [phone]. Please reference the conference call code 34186056.

About Non-GAAP Financial Measures

This press release contains financial results and guidance that excludes the effects of FAS 123R, Share-Based Payment, which relates to stock-based compensation, and is not in accordance with U.S. generally accepted accounting principles (GAAP).  The Company believes that this Non-GAAP financial measure provides meaningful supplemental information to both management and investors that is indicative of the Company's core operating results and facilitates comparison of operating results across reporting periods.  The Company uses this Non-GAAP measure when evaluating its financial results as well as for internal resource management, planning and forecasting purposes.  This Non-GAAP measure should not be viewed in isolation from or as a substitute for the Company's financial results or guidance in accordance with GAAP. Assumptions regarding the valuation of stock-based compensation and the timing of events, such as the issuance of new stock-based compensation awards and the realization of tax benefits, may differ from actual results.  For more information, please see the guidance table included at the end of this release.

Forward Looking Statements

This press release contains forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements.  Examples of forward-looking statements are financial targets and growth objectives and also include but are not limited to statements that are preceded by, followed by, or that include the words "will"; "believes"; "should"; "intend"; "anticipates"; "plans"; "expects"; "estimates"; or similar statements.  Forward-looking statements in this press release include statements regarding the Company's expected financial performance for the 2006 and 2007 fiscal years, such as anticipated revenues and earnings per share, the Company's ability to maintain market share for BNP testing, the Company's plans to complete the development of the Triage Sepsis Panel, an acute kidney injury test and next generation Triage Cardio Profiler products, and commence related clinical trials for these potential products and the Triage Stroke Panel when expected, as well as the Company's ability to launch new products when anticipated.  Risks and uncertainties include risks associated with Biosite's ability to commence and complete clinical trials as currently planned; Biosite's ability to adequately respond to the U.S. Food & Drug Administration's questions regarding the pending 510(k) filing for MPO; Biosite's ability to complete the development of a satisfactory Protein C test; Biosite's ability to obtain regulatory approvals and complete other pre-market activities needed to launch new products as currently planned, including the MPO test, a sepsis panel, a panel for acute kidney injury and a Protein C test; Biosite's ability to effectively promote and market acceptance of any new products; the continued growth of the BNP market generally, including the physician office market; the Company's ability to effectively expand sales activities outside the United States; and other risks associated with changing market conditions and the effect of competition from companies with greater capital and resources, including the impact on market pricing for BNP testing generally.  Other risks that should be considered are detailed in the Company's most recent Annual Report on Forms 10-K and 10-Q and other SEC filings.  The Company disclaims, however, any intent or obligation to update these forward-looking statements.  Copies of the Company's SEC filings are available from the Investor Relations department or from the Company's website.

Biosite(R), Cardio Profiler(R), Triage(R) and New Dimensions in Diagnosis(R) are registered trademarks of Biosite Incorporated.

                             Biosite Incorporated
                  Unaudited Statements of Income Data - GAAP
              (in thousands, except per share data and margins)

                         Three months ended          Nine months ended
                            September 30,              September 30,
                      2006     2005   % Change   2006      2005   % Change

  Total revenues:
    Product sales   $73,111   $68,888     6%   $227,640   $211,282     8%
    Contract
     revenue          1,531       780    96%      4,101      3,996     3%
      Total
       revenues      74,642    69,668     7%    231,741    215,278     8%

  Gross margin on
   product sales        68%       70%               69%        70%

  Operating
   expenses:
    Cost of
     product
     sales           23,694    20,900    13%     70,236     64,155     9%
    Selling,
     general
     and
     administrative  24,107    17,858    35%     72,909     54,930    33%
    Research and
     development     12,512    10,549    19%     39,354     31,509    25%
    License and
     patent disputes     --       788  (100%)     3,142      1,340   134%
      Total operating
       expenses      60,313    50,095    20%    185,641    151,934    22%

  Operating income   14,329    19,573   (27%)    46,100     63,344   (27%)

  Operating income
   as % of total
   revenue              19%       28%               20%        29%

  Interest and
   other income,
   net                1,312     1,095    20%      3,554      1,669   113%

  Income before
   provision for
   income taxes      15,641    20,668   (24%)    49,654     65,013   (24%)

  Provision for
   income taxes      (6,600)   (8,099)  (19%)   (20,134)   (24,680)  (18%)

  Net income         $9,041   $12,569   (28%)   $29,520    $40,333   (27%)

  Diluted earnings
   per share          $0.49     $0.68   (28%)     $1.60      $2.19   (27%)

  Diluted shares
   used in
   calculating
   per share
   amounts           18,282    18,596            18,395     18,394

  Share-based compensation expense for stock options and the employee stock
  purchase plan recorded in accordance with FAS 123R for continuing
  operations:

    Cost of
     product
     sales             $867       $--            $1,870        $--
    Selling,
     general and
     administrative   3,674        --            11,523         --
    Research and
     development      1,702        --             5,299         --
      Subtotal       $6,243       $--           $18,692        $--
    Tax benefit      (1,866)       --            (5,283)        --
      Total          $4,377       $--           $13,409        $--



                             Biosite Incorporated
                Unaudited Statements of Income Data - Non-GAAP
              (in thousands, except per share data and margins)

  NOTE: Non-GAAP results exclude the impact of FAS 123R, which relates to
  the expensing of non-cash stock-based compensation

                         Three months ended          Nine months ended
                            September 30,              September 30,
                      2006     2005   % Change   2006      2005   % Change

  Total revenues:
    Product sales   $73,111   $68,888     6%   $227,640   $211,282     8%
    Contract
     revenue          1,531       780    96%      4,101      3,996     3%
      Total
       revenues      74,642    69,668     7%    231,741    215,278     8%

  Gross margin on
   product sales        69%       70%               70%        70%

  Operating
   expenses:
    Cost of
     product
     sales           22,827    20,900     9%     68,366     64,155     7%
    Selling,
     general
     and
     administrative  20,433    17,858    14%     61,386     54,930    12%
    Research and
     development     10,810    10,549     2%     34,055     31,509     8%
    License and
     patent disputes     --       788  (100%)     3,142      1,340   134%
      Total operating
       expenses      54,070    50,095     8%    166,949    151,934    10%

  Operating income   20,572    19,573     5%     64,792     63,344     2%

  Operating income
   as % of total
   revenue              28%       28%               28%        29%

  Interest and
   other income,
   net                1,312     1,095    20%      3,554      1,669   113%

  Income before
   provision for
   income taxes      21,884    20,668     6%     68,346     65,013     5%

  Provision for
   income taxes      (8,466)   (8,099)    5%    (25,417)   (24,680)    3%

  Net income        $13,418   $12,569     7%    $42,929    $40,333     6%

  Diluted earnings
   per share          $0.74     $0.68     9%      $2.36      $2.19     8%

  Diluted shares
   used in
   calculating
   per share
   amounts           18,017    18,596             18,154    18,394



                             Biosite Incorporated
        Unaudited Reconciliation of Consolidated Statements of Income
       Data - Non-GAAP to Consolidated Statements of Income Data - GAAP
              (in thousands, except per share data and margins)

                        Three months ended          Three months ended
                        September 30, 2006          September 30, 2005
                    Non-GAAP    Adjmts    GAAP    Non-GAAP   Adjmts   GAAP

  Total revenues:
    Product
     sales           $73,111      $--    $73,111   $68,888    $--   $68,888
    Contract
     revenue           1,531       --      1,531       780     --       780
      Total
       revenues       74,642       --     74,642    69,668     --    69,668

  Gross margin on
   product sales         69%      (1%)       68%       70%     0%       70%

  Operating
   expenses:
    Cost of
     product
     sales            22,827      867[a]  23,694    20,900     --    20,900
    Selling,
     general and
     administrative   20,433    3,674[a]  24,107    17,858     --    17,858
    Research and
     development      10,810    1,702[a]  12,512    10,549     --    10,549
    License and
     patent disputes      --       --         --       788     --       788
      Total
       operating
       expenses       54,070    6,243     60,313    50,095     --    50,095

  Operating income    20,572   (6,243)    14,329    19,573     --    19,573

  Operating income
   as % of total
   revenue               28%      (9%)       19%       28%     0%       28%

  Interest and
   other income,
   net                 1,312       --      1,312     1,095     --     1,095

  Income before
   provision for
   income taxes       21,884   (6,243)    15,641    20,668     --    20,668

  Provision for
   income taxes       (8,466)   1,866[a]  (6,600)   (8,099)    --    (8,099)

  Net income         $13,418  $(4,377)    $9,041   $12,569    $--   $12,569

  Diluted earnings
   per share           $0.74   $(0.25)     $0.49     $0.68    $--     $0.68

  Diluted shares
   used in
   calculating per
   share amounts      18,017      265     18,282    18,596     --    18,596

  [a] - Adjustments to exclude from Non-GAAP financial measures the impact
        of FAS 123R, which relates to the expensing of non-cash stock-based
        compensation, beginning the first quarter of 2006.



                             Biosite Incorporated
        Unaudited Reconciliation of Consolidated Statements of Income
       Data - Non-GAAP to Consolidated Statements of Income Data - GAAP
              (in thousands, except per share data and margins)

                      Nine months ended             Nine months ended
                      September 30, 2006            September 30, 2005
                  Non-GAAP     Adjmts     GAAP    Non-GAAP   Adjmts   GAAP

  Total revenues:
    Product
     sales        $227,640       $--   $227,640   $211,282    $--  $211,282
    Contract
     revenue         4,101        --      4,101      3,996     --     3,996
      Total
       revenues    231,741        --    231,741    215,278     --   215,278

  Gross margin on
   product sales       70%       (1%)       69%        70%     0%       70%

  Operating
   expenses:
    Cost of
     product
     sales          68,366     1,870[a]  70,236     64,155     --    64,155
    Selling,
     general and
     administrative 61,386    11,523[a]  72,909     54,930     --    54,930
    Research and
     development    34,055     5,299[a]  39,354     31,509     --    31,509
    License and
     patent disputes 3,142        --      3,142      1,340     --     1,340
      Total
       operating
       expenses    166,949    18,692    185,641    151,934     --   151,934

  Operating income  64,792   (18,692)    46,100     63,344     --    63,344

  Operating income
   as % of total
   revenue             28%       (8%)       20%        29%     0%       29%

  Interest and
   other income,
   net               3,554        --      3,554      1,669     --     1,669

  Income before
   provision for
   income taxes     68,346   (18,692)    49,654     65,013     --    65,013

  Provision for
   income taxes    (25,417)    5,283[a] (20,134)   (24,680)    --   (24,680)

  Net income       $42,929  $(13,409)   $29,520    $40,333    $--   $40,333

  Diluted earnings
   per share         $2.36    $(0.76)     $1.60      $2.19    $--     $2.19

  Diluted shares
   used in
   calculating per
   share amounts    18,154       241     18,395     18,394     --    18,394

  [a] - Adjustments to exclude from Non-GAAP financial measures the impact
      of FAS 123R, which relates to the expensing of non-cash stock-based
      compensation, beginning the first quarter of 2006.



                           Biosite Incorporated
                           Selected Product Data
                  (in thousands, except margins and %'s)

  Sales by
   Product:
              Q1 2005  Q2 2005  Q3 2005  Q4 2005  Q1 2006  Q2 2006  Q3 2006
  Triage(R)
   Drugs of
   Abuse
   Products   $10,283  $11,341  $12,408  $11,018  $11,547  $10,464  $11,444
  Triage
   Cardiac
   Panel        5,985    6,439    7,142    6,629    6,616    7,188    6,902
  Triage
   BNP Tests   49,771   49,058   43,892   46,893   52,564   50,678   45,531
  Triage
   Profiler
   Products     1,946    2,226    2,852    3,465    4,036    4,598    5,735
  Triage
   D-Dimer
   Test           131      481      757    1,489    1,417    1,450    1,616
  Triage
   Parasite
   Panel          255      283      355      269      286      337      377
  Triage C.
   difficile
   Panel        1,349    1,377      942      988    1,029    1,088    1,022
  Triage
   Meters         776      693      538      724      625      539      458
  Triage
   Stroke
   Panel (EU)      --       --        2       15       37       30       26

    Total
     Product
     Sales    $70,496  $71,898  $68,888  $71,490  $78,157  $76,372  $73,111


  Inter-
   national
   Sales:
              Q1 2005  Q2 2005  Q3 2005  Q4 2005  Q1 2006  Q2 2006  Q3 2006
  Inter-
   national
   Sales as
   % of
   Product
   Sales          13%      12%      12%      13%      14%      15%      14%
  BNP
   Inter-
   national
   Sales as
   % of BNP
   Total
   Sales          10%       9%       9%      10%      11%      11%      10%


  Margin by
   Product
   Type
   (a), (b):
              Q1 2005  Q2 2005  Q3 2005  Q4 2005  Q1 2006  Q2 2006  Q3 2006
  Triage
   Drugs of
   Abuse
   Product
   Line           82%      78%      82%      81%      79%      77%      73%
  Triage
   Cardio-
   vascular
   Product
   Line
   (incl. BNP)    72%      69%      69%      70%      71%      70%      68%

  (a) These margins do not include all products.  The Triage Meters, Triage
      Micro Product Line and Triage Stroke Panel are not included.
  (b) Includes the impact of FAS 123R, which relates to the expensing of
      non-cash stock-based compensation, beginning the first quarter of
      2006.



                             Biosite Incorporated
                     Unaudited Balance Sheet Data - GAAP
                                (in thousands)

                                               September 30,    December 31,
                                                   2006             2005
                                                Unaudited
  Assets
    Cash, cash equivalents & marketable
     securities                                  $159,078         $132,412
    Accounts receivable                            30,997           30,303
    Inventories                                    31,871           32,627
    Other current assets                            8,908            9,422
       Total current assets                       230,854          204,764

    Property, equipment and leasehold
     improvements, net                            158,218          151,018
    Patents and license rights, net                 9,828            4,764
    Other assets                                   12,958            7,380
       Total assets                              $411,858         $367,926

  Liabilities and Stockholders' Equity
    Current liabilities                           $50,902          $39,104
    Long-term liabilities                           9,152           13,457
    Stockholders' equity                          351,804          315,365
       Total liabilities and stockholders'
        equity                                   $411,858         $367,926



                             Biosite Incorporated
                                Guidance Data
            (in thousands, except per share data, margins and %'s)

  The financial guidance provided below is an estimate based on information
  available as of October 26, 2006.  The Company's future performance and
  financial results are subject to risks and uncertainties, and actual
  results could differ materially from the guidance set forth below.  Some
  of the factors that could affect the Company's actual financial results
  are stated above in the section entitled "Forward Looking Statements" and
  in the Company's filings with the SEC.  The Company assumes no obligation
  to update the guidance set forth below.

                                Three months ended December 31, 2006
                        Non-GAAP Estimate    Adjustments (a)   GAAP Estimate

  Triage(R) BNP product
   sales                      $48,000               --             $48,000
  Total product sales         $75,500               --             $75,500

  Total revenues              $76,500               --             $76,500

  International product
   sales % of Total
   product sales                16.0%               --               16.0%

  Gross margin on
   product sales                69.5%            (1.0%)(b)           68.5%

  Operating expenses
   (excl. Cost of sales)
   % of Revenue                 40.0%              7.0%(b)           47.0%

  Operating income as
   % of total revenues          29.5%             (8.0%)(b)          21.5%

  Diluted earnings per share    $0.83            $(0.25)(b)          $0.58

  Income tax rate               38.5%              3.0%(b)           41.5%

  Cash flow from operations   $15,000               --            $15,000


                                    Year ended December 31, 2006
                        Non-GAAP Estimate    Adjustments (a)   GAAP Estimate

  Triage BNP product
   sales                     $196,500               --           $196,500
  Total product sales        $303,000               --           $303,000

  Total revenues             $308,000               --           $308,000

  International sales
   % of total sales             15.0%               --              15.0%

  Gross margin on
   product sales                70.0%            (1.0%)(b)          69.0%

  Operating expenses
   (excl. Cost of sales)
   % of revenues                42.0%              7.0%(b)          49.0%

  Operating income as
   % of total revenues          28.5%            (8.0%)(b)          20.5%

  Diluted earnings per share    $3.19           $(1.01)(b)          $2.18

  Income tax rate               37.5%              3.5%(b)          41.0%

  Cash flow from operations   $80,000               --            $80,000


                                    Year ended December 31, 2007
                        Non-GAAP Estimate    Adjustments (a)   GAAP Estimate

  Total revenues             $326,000               --           $326,000

  (a) These adjustments reconcile the Company's non-GAAP financial guidance
      to its GAAP financial guidance for the next quarter and full year
      2006 and the full year 2007.  See the section entitled "About Non-GAAP
      Financial Measures" above.

  (b) Reflects the estimated non-cash compensation expense attributable to
      stock-based compensation awards including stock options and employee
      stock purchase plan shares and their estimated impact on income taxes
      and diluted shares used in calculating EPS.  This amount reflects the
      total estimated expense from the application of FAS 123R, which the
      Company adopted in the first quarter of 2006.


DATASOURCE: Biosite Incorporated



CONTACT:  Nadine Padilla, VP, Corporate & Investor Relations of Biosite

Incorporated, [phone], 



Web site:  http://www.biosite.com/ 



Company News On-Call:  http://www.prnewswire.com/comp/116737.html 

Copyright