CORNING, NY, January 2, 1997 – Corning Incorporated (NYSE: GLW)
announced today that it effected by delivery (Harris Trust and Savings Bank as
Distribution Agent), the distribution of approximately 28,040,000 shares of the Common
Stock of Quest Diagnostics Incorporated (NYSE: DGX) and approximately 56,080,000 shares of
the Common Stock of Covance Inc. (NYSE: CVD) to Corning Incorporated shareholders of
record on December 31, 1996 (11:59 p.m.). This distribution of the Common Stock of Quest
Diagnostics (formerly known as Corning Clinical Laboratories Inc.) and Covance (formerly
known as Corning Pharmaceutical Services) is the final step in the spin-off of these
former Corning Incorporated subsidiaries as independent publicly traded companies.
As previously announced, one share of Quest Diagnostics Common Stock was distributed
for every eight shares of Corning Common Stock, and one share of Covance Common Stock for
every four shares of Corning Common Stock held on December 31, 1996. The distribution is
based on the approximately 224,300,000 shares of Corning Common Stock outstanding on
December 31, 1996, and participating in the distribution.
On November 20, 1996, the Board of Directors of Corning Incorporated approved the final
terms of a strategic plan to distribute to Corning shareholders the clinical laboratory
business being conducted by its wholly owned subsidiary, Quest Diagnostics, and the
contract research business being conducted by Quest Diagnostics' wholly owned
subsidiary, Covance.
Corning shareholders will receive stock certificates for whole shares and cash payments
for fractional share interests in mid-January, 1997.
Corning Chairman and Chief Executive Officer Roger G. Ackerman said, "The new
Corning is fully positioned to concentrate on its core communications and technologies
businesses, where the company can leverage its materials and process technology, and
achieve and sustain competitive advantages and superior financial returns and growth over
time.
"We believe this dramatic strategic move also has positioned Covance and Quest
Diagnostics to be more competitive and successful, as each company's management team
will be able to focus resources and capabilities on the demands of their particular
businesses," concluded Mr. Ackerman.
Quest Diagnostics, with headquarters in Teterboro, NJ, is one of the largest clinical
laboratories in the country. It performs its tests in 17 regional labs and 14 smaller
branch labs across the US and in a branch lab in Mexico City. The tests it performs on
human tissue and fluids help doctors and hospitals diagnose, treat and monitor diseases
from AIDS to cancer. Quest Diagnostics' 18,700 employees process and provide data on
more than 60 million specimens annually. Its center for research and development, Nichols
Institute, develops and uses specialty tests using advanced technology in such fields as
endocrinology, oncology and genetic testing. In addition, Quest Diagnostics operates 850
patient service centers around the country to collect the specimens.
Covance, with headquarters in Princeton, NJ, is one of the world's largest and
most comprehensive biopharmaceutical development service companies, with annual revenues
in 1995 of more than $400 million, operations in 15 countries, and currently over 5,000
employees worldwide. Covance is dedicated to providing preclinical services, health
economics and outcomes research, central laboratory services, biotechnology manufacturing,
pharmaceutical packaging services, clinical and periapproval services and research
products to the world's pharmaceutical, biotechnology, and medical device companies.
Established in 1851, Corning Incorporated creates leading-edge technologies for the
fastest growing segments of the world's economy. Corning manufactures optical fiber,
cable and components, high-performance glass and components for televisions, and other
electronic displays for communications and communications-related industries; advanced
materials for the scientific, life sciences and environmental markets; and consumer
products. Corning's total revenues from continuing operations in 1995 were $3.3
billion.