QUEST DIAGNOSTICS ANNOUNCES ITS
HEADQUARTERS
WILL REMAIN IN NORTHERN NEW JERSEY
TETERBORO, N.J., JUNE 11, 1999Quest Diagnostics Incorporated
(NYSE: DGX), a leading provider of diagnostic testing, information and services, announced
that its corporate headquarters will remain in Northern New Jersey following the
completion of its pending acquisition of the clinical laboratory operations of SmithKline
Beecham plc (NYSE: SBH). The transaction, which requires shareholder approval, is expected
to be completed July 2, 1999. SmithKline Beecham Clinical Laboratories is headquartered in
Collegeville, Pa., outside Philadelphia.
"In joining together our two companies, we looked at New York City and
Philadelphia and everything in between," said Kenneth W. Freeman, Chairman and Chief
Executive Officer of Quest Diagnostics. "As a public corporation requiring constant
interaction with the investment and financial community, it makes sense to locate our
corporate functions at a site with easy access to Manhattan, as well as to Teterboro and
Collegeville, which will remain important administrative centers."
Another reason Quest Diagnostics gave for remaining in New Jersey was its eligibility
under New Jerseys Business Employment Incentive Program. The program, which
encourages job creation in New Jersey, will provide Quest Diagnostics an incentive grant
of 50% of the state withholding tax for each new employee over a minimum threshold of 75
new jobs. The grant lasts for 10 years. "In the end, New Jerseys Business
Employment Incentive Program helped us make a sound decision," said Mr. Freeman.
"We are proud that Quest Diagnostics is staying in New Jersey," said Chief
Executive Officer and Secretary Gualberto "Gil" Medina of the New Jersey
Commerce and Economic Growth Commission. "Our state has a variety of incentive and
financing programs that makes New Jersey a prime location for companies, which create jobs
and opportunities for our citizens."
The specific location of the headquarters will be announced at a later date. Quest
Diagnostics currently employs approximately 2,000 people in New Jersey, with a
company-wide total of approximately 15,000 employees. Following the completion of the
transaction, Quest Diagnostics will employ approximately 25,000 people, including 2,100 in
New Jersey.
Quest Diagnostics is one of the nations leading providers of diagnostic
testing, information and services to physicians, hospitals, managed care organizations,
employers and government agencies. The wide variety of tests performed on human tissue and
fluids help doctors and hospitals diagnose, treat and monitor disease. Its Nichols
Institute unit conducts research, specializes in esoteric testing using genetic screening
and other advanced technologies, performs clinical studies testing, and manufactures and
distributes diagnostic test kits and instruments. Quest Informatics collects and analyzes
laboratory, pharmaceutical and other data to help large health care customers identify and
monitor patients who are at-risk for certain diseases. QuestNet is an innovative new
product offering that provides network management services to large buyers of health care
services.
The statements in this press release which are not historical
facts or information may be forward-looking statements. These forward-looking statements
involve risks and uncertainties that could cause the outcome to be materially different.
Certain of these risks and uncertainties are listed in the Quest Diagnostics Incorporated
1998 Form 10-K and subsequent filings.
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