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Cytyc and Quest Diagnostics Announce Multi-Year Agreement



BOXBOROUGH, MA, AND TETERBORO, NJ, JANUARY 6, 2000 — Cytyc Corporation (Nasdaq: CYTC) and Quest Diagnostics Incorporated (NYSE: DGX) today announced a multi-year agreement to market the ThinPrep® Pap Test™ as Quest Diagnostics’ exclusive liquid-based cervical cancer screening methodology. Quest Diagnostics, the nation’s leading provider of anatomic pathology testing services, introduced the ThinPrep Pap Test as a new cervical screening technology in 1997.

Under this agreement, the two companies will combine their marketing resources and expertise to promote the benefits of ThinPrep technology nationwide. The plan calls for the development of a program of cooperative sales activity directed toward payers, physicians and patients. As consideration for the exclusive nature of this relationship, Cytyc has granted Quest Diagnostics a warrant to purchase 150,000 shares of common stock. The companies did not disclose additional terms of the agreement.

"We are very excited about the potential of this program, which is consistent with Quest Diagnostics’ strategy to provide high quality products and services to our patients and customers," said Surya N. Mohapatra, Ph.D.,

"As an early adopter of ThinPrep technology, Quest Diagnostics has had the opportunity to confirm the clinical advantages of the ThinPrep Pap Test."

With the acquisition

"Quest Diagnostics has become the leading provider of Pap testing in the United States as a result of their commitment to excellence and their dedication to deliver high quality, reliable laboratory service," said Patrick J. Sullivan, Cytyc’s president and chief executive officer. "We are excited to have them as our partner to increase awareness of the benefits of the ThinPrep Pap Test and accelerate conversion to this significantly more effective technology."

Cytyc Corporation develops, manufactures, and markets the ThinPrep® System for medical diagnostic applications. The ThinPrep System consists of the ThinPrep® 2000 Processor and related reagents, filters, and other supplies. Since introduction, Cytyc has manufactured more than 1,000 ThinPrep 2000 Processors and 10 million ThinPrep® Pap Tests for cervical cancer screening.

Cytyc® and ThinPrep® are registered trademarks and ThinPrep® Pap Test™ is a trademark of Cytyc Corporation.

Quest Diagnostics is the nation's leading provider of diagnostic testing, information and services to physicians, hospitals, managed care organizations, employers and government agencies with annualized revenues of more than $3 billion. 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, and manufactures and distributes diagnostic test kits and instruments. Quest Diagnostics is one of the leading providers of testing to support clinical trials of new pharmaceuticals worldwide. Quest Informatics collects and analyzes laboratory, pharmaceutical and other data to help large health care customers better manage the health of their patients. QuestNet is an innovative new product offering that provides network management services to large buyers of health care services. Additional company information can be found on the Internet at:

Forward-looking statements in this press release are made pursuant to the provisions of Section 21E of the Securities Exchange Act of 1934. Investors are cautioned that statements in this press release which are not strictly historical statements, including, without limitation, statements regarding management's plans and objectives for future operations, product plans and performance, potential savings to the healthcare system, management's assessment of market factors, as well as statements regarding the strategy and plans of the Company, constitute forward-looking statements which involve risks and uncertainties, including, without limitation, risks associated with the Company's dependence on a single product, uncertainty of market acceptance and additional cost, dependence on timely and adequate levels of third-party reimbursement, CPT code implementation delays and delays in reimbursement, risks associated with potential year 2000 software disruptions involving the products and systems of the Company and certain third party customers, suppliers, and payers, limited marketing and sales experience, and limited number of customers and lengthy sales cycle, as well as risks of downturns in economic conditions generally, and in the healthcare industry specifically, risks associated with competition and competitive pricing pressures, potential liabilities and costs associated with litigation, and other risks detailed in the Company's filings with the Securities and Exchange Commission, including in its 1998 Form 10-K filed with the Commission.

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