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Quest Diagnostics to Speak at the Bank of America Merrill Lynch 2011 Healthcare Conference

05/11/11

MADISON, N.J., May 11, 2011 /PRNewswire via COMTEX/ --

Quest Diagnostics Incorporated (NYSE: DGX), the world's leading provider of diagnostic testing, information and services, announced that it is scheduled to speak at the Bank of America Merrill Lynch 2011 Healthcare Conference in Las Vegas. The presentation is scheduled for Thursday, May 12, 2011 at 12:50 p.m. Eastern Time.

During the conference, the company will reaffirm its adjusted 2011 outlook before future special items. The company expects revenues to grow approximately 2%, and, on an adjusted basis, operating income as a percentage of revenues to be between 17.5% and 18%, and diluted earnings per share from continuing operations to be between $4.25 and $4.45. The outlook on an adjusted basis excludes the first quarter impact of the Medi-Cal charge, the estimated impact of severe weather, charges for workforce reductions, and costs associated with the Athena Diagnostics and Celera transactions. For a reconciliation of the outlook, on an adjusted basis, to the reported outlook, please refer to the footnote below.

The presentation will be webcast live during the conference and will be available to registered investors on the following site:

https://www.veracast.com/webcasts/baml/healthcare2011/id45591700.cfmand to the public on www.QuestDiagnostics.com/investor. In addition, the archived webcast will be available within 2 hours after the conclusion of the live event and will remain available until May 27, 2011.

Quest Diagnostics is the world's leading provider of diagnostic testing, information and services that patients and doctors need to make better healthcare decisions. The company offers the broadest access to diagnostic testing services through its network of laboratories and patient service centers, and provides interpretive consultation through its extensive medical and scientific staff. Quest Diagnostics is a pioneer in developing innovative diagnostic tests and advanced healthcare information technology solutions that help improve patient care. Additional company information is available at www.QuestDiagnostics.com.

The statements in this press release which are not historical facts may be forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date that they are made and which reflect management's current estimates, projections, expectations or beliefs and which involve risks and uncertainties that could cause actual results and outcomes to be materially different. Risks and uncertainties that may affect the future results of the company include, but are not limited to, adverse results from pending or future government investigations, lawsuits or private actions, the competitive environment, changes in government regulations, changing relationships with customers, payers, suppliers and strategic partners and other factors discussed in "Business," "Risk Factors," "Cautionary Factors that May Affect Future Results," "Legal Proceedings," "Management's Discussion and Analysis of Financial Condition and Results of Operations," and "Quantitative and Qualitative Disclosures About Market Risk" in the company's 2010 Annual Report on Form 10-K and "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Quantitative and Qualitative Disclosures About Market Risk" in the company's 2011 Quarterly Report on Form 10-Q and other items throughout the Form 10-K and the company's Quarterly Report on Form 10-Q and Current Reports on Form 8-K.

Footnote: Reconciliation of Adjusted Outlook to Reported Outlook:

The outlook for adjusted diluted earnings per common share, adjusted operating income as a percentage of net revenues and adjusted cash from operations represent management's estimates of diluted earnings per common share, operating income as a percentage of net revenues and cash from operations for the full year 2011 before the impact of the Medi-Cal charge, the estimated impact of severe weather, restructuring charges, and transaction costs related to the acquisitions of Athena Diagnostics and Celera Corporation. These measures are presented because management believes they are useful adjuncts to the corresponding amounts determined under accounting principles generally accepted in the United States since they are meaningful to evaluate the Company's ongoing operating performance and are on a basis consistent with previous estimates of diluted earnings per common share, operating income as a percentage of net revenues and cash from operations. Adjusted diluted earnings per common share, adjusted operating income as a percentage of net revenues and adjusted cash from operations are not measures of financial performance under accounting principles generally accepted in the United States and should not be considered as an alternative to the corresponding amounts determined under accounting principles generally accepted in the United States.

The following table reconciles our 2011 outlook, on an adjusted basis, to the corresponding amounts determined under accounting principles generally accepted in the United States. The outlook, on an adjusted basis, excludes the first quarter impact of the Medi-Cal charge, the estimated impact of severe weather, restructuring charges and costs associated with the Athena and Celera transactions.



Outlook for 2011 Before Future Special Items





As

Reported

Medi-Cal

Charge

(a)


Severe

Weather

(b)


Restructuring

Charges

(c)


Transaction

Costs

(d)



As

Adjusted


Diluted earnings per common share

$2.92- $3.12

$1.19

$0.07

$0.05

$0.02

$4.25-$4.45


Operating income as a % of net revenues

14.0%-14.5%

3.0%

0.3%

0.2%

%

17.5%-18.0%


Cash from operations

~$900

$195

(e)

(e)

(e)

~$1,100










(a) Represents the first quarter pre-tax charge of $236 million associated with the agreement in principle related to Medi-Cal.

(b) Represents an estimate of the impact of severe weather.

(c) Represents first quarter pre-tax restructuring charges of $13.3 million principally associated with workforce reductions.

(d) Represents first quarter pre-tax transaction costs of $4.7 million associated with the acquisitions of Athena Diagnostics and Celera Corporation. Of these costs, $2.3 million, primarily related to professional and filing fees, was recorded in selling, general, and administrative expenses and $2.4 million of financing related costs were recorded in interest expense, net.

(e) Not significant to the outlook for cash flows from operations.

Contacts:
Kathleen Valentine (Investors): 973-520-2900
Wendy Bost (Media): 973-520-2800

SOURCE Quest Diagnostics

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