Luminex Corporation Completes a Portion of its Purchase Price Allocation

AUSTIN, Texas, Aug. 9  /PRNewswire-FirstCall/ -- Luminex Corporation (NASDAQ:LMNX) today announced in connection with its filing of quarterly report 10-Q, an allocation of a portion of its goodwill balance to intangible assets associated with the purchase price analysis related to the acquisition of Tm Bioscience completed on March 1, 2007.

As previously disclosed, Luminex recorded $65.4 million of goodwill related to the Tm Bioscience acquisition.  The initial goodwill asset was subject to adjustment upon recording of final transaction related costs and allocation of the purchase price based on the Company's final determination of the fair market value of the acquired operation's assets and liabilities. Luminex has completed a portion of its valuation analysis, and, as a result, a portion of the goodwill balance has been allocated to the identified intangible assets and in-process research and development.  Accordingly, financial statements for the second quarter and six months ended June 30, 2007, previously released on July 25, 2007, have been revised to reflect the purchase price adjustment and write off of in-process research and development.

This modification consists of a $23.3 million allocation from goodwill to intangible assets, with $859,000 of amortization associated with those assets taken in the period ended June 30, 2007, and an $8.0 million allocation from goodwill to in-process research and development, with the $8.0 million expensed in the period ended June 30, 2007.  The identified intangible assets which constitute this modification have estimated useful lives of between one and 15 years and will result in approximately $850,000 per quarter of amortization expense on a go forward basis.  The Company anticipates that the remaining purchase price analysis and allocation will be completed during the current third quarter period.

ABOUT LUMINEX CORPORATION

Luminex develops, manufactures and markets proprietary biological testing technologies with applications throughout the life sciences industry.  The Company's xMAP(R) system is an open-architecture, multi-analyte technology platform that delivers fast, accurate and cost-effective bioassay results to markets as diverse as pharmaceutical drug discovery, clinical diagnostics and biomedical research, including the genomics and proteomics research markets. The Company's xMAP(R) technology is sold worldwide and is in use in leading research laboratories as well as major pharmaceutical, diagnostic and biotechnology companies.  Further information on Luminex or xMAP(R) can be obtained on the Internet at http://www.luminexcorp.com/.

Statements made in this release that express Luminex's or management's intentions, plans, beliefs, expectations or predictions of future events are forward-looking statements. The words "believe," "expect," "intend," "estimate," "anticipate," "will," "could," "should" and similar expressions are intended to further identify such forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995.  It is important to note that the Company's actual results or performance could differ materially from those anticipated or projected in such forward-looking statements. Factors that could cause Luminex's actual results or performance to differ materially include risks and uncertainties relating to, among others, market demand and acceptance of Luminex's products, the Company's dependence on strategic partners for development, commercialization and distribution of products, concentration of the Company's revenue in a limited number of strategic partners, fluctuations in quarterly results due to a lengthy and unpredictable sales cycle and bulk purchases of consumables, Luminex's ability to scale manufacturing operations and manage operating expenses, gross margins and inventory levels, potential shortages of components, competition, the timing of regulatory approvals, the implementation, including any modification, of the Company's strategic operating plans, risks and uncertainties associated with implementing our acquisition strategy and the ability to integrate acquired companies, including Tm Bioscience Corporation, or selected assets into our consolidated business operations, including the ability to recognize the benefits of our acquisitions, as well as the risks discussed under the heading "Risk Factors" in Luminex's Reports on Forms 10-K and 10-Q, as filed with the Securities and Exchange Commission.  The forward- looking statements contained herein represent the judgment of Luminex as of the date of this press release, and Luminex expressly disclaims any intent, obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in Luminex's expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based.

  Contact:   Harriss T. Currie
             Vice President, Finance and Chief Financial Officer
             512-219-8020
             



                             LUMINEX CORPORATION
                    CONDENSED CONSOLIDATED BALANCE SHEETS
                               (in thousands)

                                             June 30,       December 31,
                                               2007             2006
                                           -----------     --------------
                                           (unaudited)
                                   ASSETS
  Current assets:
      Cash and cash equivalents                   $11,836          $27,414
      Short-term investments                        3,314           10,956
      Accounts receivable, net                     11,614            8,237
      Inventory, net                                7,100            4,571
      Other                                         1,874            1,917
                                                   ------           ------

      Total current assets                         35,738           53,095

  Property and equipment, net                      10,189            4,985
  Intangible assets, net                           24,583                -
  Long-term investments                             5,311            7,346
  Goodwill                                         34,132                -
  Other                                             1,705            1,270
                                                   ------           ------

  Total assets                                   $111,658          $66,696
                                                 ========          =======

                         LIABILITIES AND STOCKHOLDERS' EQUITY
  Current liabilities:
      Accounts payable                             $3,687           $3,255
      Accrued liabilities                           8,219            2,905
      Deferred revenue and other                    3,073            2,756
                                                   ------           ------

      Total current liabilities                    14,979            8,916
  Long-term debt                                    3,825                -
  Deferred revenue and other                        3,814            3,621
                                                   ------           ------
  Total liabilities                                22,618           12,537
                                                   ------           ------

  Stockholders' equity:
      Common stock                                     35               32
      Additional paid-in capital                  186,059          139,116
      Accumulated other comprehensive
       gain                                           (80)              65
      Accumulated deficit                         (96,974)         (85,054)
                                                   -------          -------

      Total stockholders' equity                   89,040           54,159
                                                   ------           ------

  Total liabilities and stockholders' equity     $111,658          $66,696
                                                 ========          =======



                             LUMINEX CORPORATION
               CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                   (in thousands, except per share amounts)


                                      Three Months Ended  Six Months Ended
                                           June 30,           June 30,
                                      ------------------  ----------------
                                         2007     2006      2007     2006
                                      --------  --------  -------  -------
                                          (unaudited)        (unaudited)

  Revenue                               $17,548  $13,268   $34,155  $26,265

  Cost of revenue                         7,211    5,608    13,388   10,346
                                         ------   ------   -------  -------
     Gross profit                        10,337    7,660    20,767   15,919

  Operating expenses:

     Research and development             3,865    1,790     6,571    3,987

     Selling, general and
      administrative                     10,716    6,137    18,812   12,086

     In-process research and
      development expense                 8,000        -     8,000        -
                                         ------   ------   -------  -------
     Total operating expenses            22,581    7,927    33,383   16,073
                                         ------   ------   -------  -------
  Loss from operations                  (12,244)    (267)  (12,616)    (154)

     Interest expense from long-term
      debt                                 (334)       -      (419)       -

     Other income, net                      421      551     1,028      967

     Income taxes                           101      (13)       87      (16)
                                         ------   -------  -------  --------
  Net income (loss)                    $(12,056)    $271  $(11,920)    $797
                                       =========  ======= =========   ======

  Net income (loss) per share, basic     $(0.34)   $0.01    $(0.36)   $0.03
                                       =========  =======  ========   ======

  Shares used in computing net income
   (loss)
      per share, basic                   35,006   31,386    33,504   31,288

  Net income (loss) per share, diluted   $(0.34)   $0.01    $(0.36)   $0.02
                                       =========  =======  ========   ======

  Shares used in computing net income
   (loss)
      per share, diluted                 35,006   32,876    33,504   32,606



                           LUMINEX CORPORATION
             CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                              (in thousands)

                                      Three Months Ended  Six Months Ended
                                           June 30,           June 30,
                                      ------------------  ----------------
                                         2007     2006      2007     2006
                                      --------  --------  -------  -------
                                          (unaudited)        (unaudited)
  Operating activities:
     Net income (loss)                 $(12,056)    $271  $(11,920)    $797
     Adjustments to reconcile net
      income (loss)  to
        net cash provided by operating
         activities:
        Depreciation and amortization     1,837      384     2,377      748
        In-process research and
         development expense              8,000        -     8,000        -
        Stock-based compensation and
         other                            1,593    1,259     3,100    2,424
        (Gain) loss on disposal of
         assets                              34       (2)       88       25
        Other                                 4       (7)        4       (9)
     Changes in operating assets and
      liabilities:
        Accounts receivable,
         net                               (580)  (3,136)   (1,657)  (1,476)
        Inventory, net                     (689)     460      (721)     138
        Prepaids and other                 (460)    (399)     (120)      29
        Accounts payable                 (2,263)    (254)   (3,817)  (1,506)
        Accrued liabilities                 772      335    (2,353)    (835)
        Deferred revenue                   (217)       5       143     (225)
                                         -------  -------   -------  -------

  Net cash provided by (used in)
   operating activities                  (4,025)  (1,084)   (6,876)     110
                                         -------  -------   -------  -------

  Investing activities:
     Net purchases of held-to-maturity
      investments                         2,185      955     9,710   (1,045)
     Purchase of property and
      equipment                          (1,724)    (643)   (3,329)  (1,528)
     Acquisition of business, net of
      cash acquired                        (744)       -    (2,735)       -
     Acquired technology rights            (265)       -      (265)       -
     Proceeds from sale of assets            30        2        30        7
                                         ------   ------    ------   ------
  Net cash provided by (used in)
   investing activities                    (518)     314     3,411   (2,566)
                                         -------  ------   -------   -------
  Financing activities:
     Payments on debt                      (117)       -   (12,345)       -
     Proceeds from issuance of common
      stock                                 159      358       174    1,434
     Other                                    7        -         7        -
                                         ------   ------    ------   ------
  Net cash provided by (used in)
   financing activities                      49      358   (12,164)   1,434
                                         ------   ------    -------  ------
  Effect of foreign currency exchange
   rate on cash                             135       16        51       22
  Change in cash and cash equivalents    (4,359)    (396)  (15,578)  (1,000)
  Cash and cash equivalents, beginning
   of period                             16,195   24,602    27,414   25,206
                                         ------  -------   -------  -------
  Cash and cash equivalents, end of
   period                               $11,836  $24,206   $11,836  $24,206
                                        =======  =======  ========  =======
  Supplemental disclosure of cashflow
   information:
    Interest and penalties paid            $254       $-    $1,335       $-

  Supplemental disclosure of non-cash
   effect of acquisitions:
     Purchase price                       $(744)      $-  $(47,745)      $-
     Common stock issued                      -        -    41,755        -
     Conversion of Tm options and
      warrants                                -        -     2,315        -
     Cash acquired                            -        -       940        -
                                         -------  -------   -------  -------
     Acquisition, net of cash acquired    $(744)      $-   $(2,735)      $-
                                         =======  =======  ========  =======


DATASOURCE: Luminex Corporation



CONTACT:  Harriss T. Currie, Vice President, Finance and Chief Financial

Officer, of Luminex Corporation, [phone], 



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

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