Waters Reports Fourth Quarter 2008 Financial Results

Waters Corporation (NYSE/WAT) reported fourth quarter 2008 sales of $418 million, a decrease of 4% from sales of $437 million in the fourth quarter of 2007. In the quarter, the effects of foreign currency translation reduced the sales growth rate 4%. Thus on a currency neutral basis, sales were approximately flat with the prior year’s quarterly sales. On a GAAP basis, earnings per diluted share (E.P.S.) for the fourth quarter were $1.01, compared to $0.96 for the fourth quarter of 2007. On a non-GAAP basis, including the adjustments in the attached reconciliation, E.P.S. grew 9% to $1.07 from $0.98 in the fourth quarter of 2007.

For the full year, sales for the Company were $1.58 billion, an increase of 7% over sales of $1.47 billion in 2007. Foreign currency translation contributed 2% to the reported sales growth rate. On a GAAP basis, E.P.S. for 2008 were $3.21 compared to $2.62 in 2007. On a non-GAAP basis, including adjustments in the attached reconciliation, E.P.S. grew 20% to $3.30 from $2.75 in 2007.

Commenting on the Company’s performance, Douglas Berthiaume, Chairman, President and Chief Executive Officer said, "Overall, 2008 was a very successful year for Waters as non-GAAP E.P.S. were up 20% and cash from operations reached a record high. The challenges that we faced in the fourth quarter reflect the tougher economic environment that we are likely to continue to encounter in 2009. We are confident that we can manage our business effectively through this difficult period and we remain committed to new product research and customer support programs to ensure our long term growth and continued strong market position.”

As communicated in a prior press release, Waters Corporation will webcast its fourth quarter 2008 financial results conference call this morning, January 27, 2009 at 8:30 a.m. eastern time. To listen to the call, connect to www.waters.com, choose "Investor Relations” and click on the "Live Webcast”. A replay will be available through February 3, 2009 at midnight eastern time, similarly by webcast and also by phone at 402-220-6440.

CAUTIONARY STATEMENT

This release may contain "forward-looking” statements regarding future results and events, including statements regarding expected financial results, future growth and customer demand that involve a number of risks and uncertainties. For this purpose, any statements that are not statements of historical fact may be deemed forward-looking statements. Without limiting the foregoing, the words, "believes”, "anticipates”, "plans”, "expects”, "intends”, "appears”, "estimates”, "projects”, "should” and similar expressions are intended to identify forward-looking statements. The Company’s actual future results may differ significantly from the results discussed in the forward-looking statements within this release for a variety of reasons, including and without limitation, the unpredictable impact on demand of the current global economic deterioration and recession, the impact of changes in accounting principles or tax rates including the effect of recently restructuring certain legal entities, the ability to access capital in volatile market conditions, fluctuations in capital expenditures by the Company’s customers, in particular large pharmaceutical companies, regulatory and/or administrative obstacles to the timely completion of purchase order documentation, introduction of competing products by other companies, such as improved research-grade mass spectrometers, and/or higher speed and/or more sensitive liquid chromatographs, pressures on prices from competitors and/or customers, regulatory obstacles to new product introductions, lack of acceptance of new products, other changes in the demands of the Company’s healthcare and pharmaceutical company customers, changes in distribution of the Company’s products, risks associated with lawsuits and other legal actions particularly involving claims for infringement of patents and other intellectual property rights, and foreign exchange rate fluctuations affecting translation of the Company’s future non-U.S. operating results. Such factors and others are discussed more fully in the section entitled "Risk Factors” of the Company’s annual report on Form 10-K for the year ended December 31, 2007 and quarterly report on Form 10-Q for the period ended September 27, 2008 as filed with the Securities and Exchange Commission (the "SEC”), which "Risk Factors” discussion is incorporated by reference in this release. The forward-looking statements included in this release represent the Company’s estimates or views as of the date of this release report and should not be relied upon as representing the Company’s estimates or views as of any date subsequent to the date of this release.