Even a new president-elect could not appease the markets. Increased anxiety over the credit markets and potential bankruptcies by the auto industry and remaining national banks propelled markets on an unrelenting decline. In the two days beginning November 4, the Dow Jones Industrial Average, S&P 500 and NASDAQ fell 9.7%, 10.0% and 9.6%, respectively. However, investors enjoyed some reprieve following the nomination of the new US Treasury secretary, Timothy Geithner, on November 21, and the bailout plan for Citigroup on November 24. Over those two days, the Dow, S&P 500 and NASDAQ jumped 11.8%, 13.2% and 11.8%, respectively. The markets managed to sustain a barrage of abysmal economic news to end the month, including a lower than expected GDP growth rate, which shrank at a 0.5% annual rate for the third quarter, a sharp reduction in consumer spending, a sustained drop in home prices, increased jobless claims and a record federal deficit of $455 billion. Perhaps the only positive news this month was falling oil prices, which declined roughly 65% from their recent highs to end the month at $50.25 a barrel. Investors were also encouraged by news of an additional $800 billion plan announced on November 25 to stimulate the market for consumer debt. For the month of November, the Dow, S&P 500 and NASDAQ fell 5.3%, 7.5% and 10.8%, respectively. Year to date, the Dow, S&P 500 and NASDAQ have lost 33.4%, 39.0% and 42.1, respectively.

All four IBO Stock Indexes finished the month lower. The Process/Metrology/Motion Instrumentation Index declined the most, losing 12.6% of its value, while the Laboratory Instrumentation, Diversified Instrumentation and Lab Consumables/Equipment Stock Indexes fell 8.8%, 6.3% and 1.7%, respectively.

Laboratory Instrumentation Stock Index

For the month, the Laboratory Instrumentation Index fell 8.8% to close at 416.63. Seventeen companies declined, while six companies improved. Luminex led the Index, gaining 18%, while Transgenomic dropped 36%. Year to date, the Index has fallen 36.5%, with 21 companies trading lower and only Luminex and Sequenom in positive territory, up 36% and 75%, respectively.

Very few companies managed to escape the third-quarter earnings period with positive returns. MOCON reported third-quarter EPS of $0.19 compared to $0.17 on November 4, yet shares traded only marginally higher. On November 6, Luminex reported third-quarter EPS of $0.08, $0.07 ahead of consensus, and raised its full-year revenue outlook. Shares jumped 29.2% the following day. On November 10, Caliper Life Sciences reported third-quarter EPS of $0.01 (see page 12), $0.04 better than analysts’ expectations, yet shares traded slightly lower. On November 18, Starlims reported breakeven EPS for the third-quarter in-line with expectations. Shares traded flat.

There was little sympathy for companies that missed analysts’ consensus. On November 5, Harvard Bioscience announced EPS of $0.06 compared to $0.07 last year, and forecasted fourth-quarter EPS of $0.08–$0.09. Shares declined 4.3%. The following day, Bio-Rad Laboratories announced third-quarter EPS of $1.01, $0.05 below expectations and 2.0% lower than last year, leading shares down 11.2% the following day.

In other news, X-Rite received credit rating upgrades from both Moody’s Investors and Standard & Poor’s on November 12. Shares traded marginally higher. During the month, Lerrink Swann and Needham initiated coverage of Cepheid with “Outperform” and “Buy” ratings on November 12 and November 20, respectively. Collins Stewart and UBS initiated coverage of Sequenom with “Hold” and “Neutral” ratings on November 10 and November 12, respectively.

Process/Metrology/Motion Instrumentation Stock Index

The Process/Metrology/Motion Instrumentation Stock Index dropped 12.6% in November to 249.63, with all eight companies trading lower, led by RAE Systems, which fell 30%. FEI Company declined the least, sliding 3%. Year to date, the Index is down 36.9%, with all companies down in double figures.

On November 5, RAE Systems announced third-quarter EPS of $0.02, $0.01 better than expected, but lowered its full-year revenue outlook by approximately 12% to $92–$94 million, leading shares down 21.1% the following day. On November 13, ICx Technologies reported a third-quarter loss of $0.11 (see page 12), $0.03 better than analysts’ consensus, but forecasted cautionary revenue guidance, leading shares down 6.4% the following day. MTS Systems announced fiscal fourth-quarter EPS growth of 21.3% to $0.85 (see page 12) on November 13, beating analysts’ forecasts by $0.19. However, the company did not provide an outlook for 2009. Shares declined 4.4% the following day.

On November 12, DA Davidson downgraded Veeco Instruments to “Neutral“ from ”Buy.” On November 19, Janney Montgomery Scott upgraded shares to “Neutral” from “Sell.”

Lab Consumables/Equipment Stock Index

In November, the Laboratory Consumables/Equipment Stock Index slipped 1.7% to 364.06, with five companies declining and two companies improving. Techne declined the most, falling 10%, while QIAGEN gained 13%. For the year, the Index is down 27.9%, with all companies trading lower, led by Kewaunee Scientific, which is down 55%.

On November 10, QIAGEN reported EPS growth of 23.5% to $0.21, $0.02 ahead of analysts’ consensus, and increased full-year EPS guidance by $0.01 to $0.79–$0.80, yet shares traded flat.

Diversified Instrumentation Stock Index

The Diversified Instrumentation Stock Index lost 6.3% for the month to close at 74.65, with half of the companies improving and the other half trading lower. Roper Industries led the Index, improving 7%, while Agilent Technologies declined 15%. For the year, the Index is down 37.5%, with all companies in negative territory. Agilent continues to weigh on the Index, losing nearly half of its value.

On November 6, Mettler-Toledo reported third-quarter EPS growth of 27.4% to $1.44 (see page 12), $0.09 ahead of analysts’ expectations, and raised its full-year EPS guidance by approximately 3% to $5.74–$5.76. Shares climbed 3.1% the following day. On November 14, Agilent announced third-quarter EPS growth of 34.2% to $0.62, $0.03 better than analysts’ expectations. However, the company forecasted first-quarter EPS of $0.34–$0.38, roughly $0.05 below analysts’ consensus. Two days later, Needham downgraded Agilent to “Hold” from “Buy,” leading shares down 7.9%.

In other news, on November 18, Roper Industries approved a dividend increase of 13.8% to $0.08, payable January 30, 2009.

International

In November, three Pacific Region companies traded higher, while Shimadzu and Techcomp declined 3% and 13%, respectively. Hitachi High-Technologies improved the most, gaining 14%. For the year, all five companies are trading lower, with Horiba enduring the greatest decline, falling 65%.

This month, the EU officially declared a recession for the 15 countries in the euro-zone. Due to the tight credit markets and lower consumer spending, the euro-zone reported a decline of 0.2% in GDP for both the second and third quarters. Growth in Britain, Germany and Italy each declined 0.5% in the third quarter.

This month, eight European companies improved and six companies declined. Biohit led all companies, improving 66%, while Oxford Instruments fell 32%. For the year, all 14 European companies are in negative territory, led by Cybio, which is down 79%.

On November 7, Biohit reported EPS of €0.04 ($0.06) compared to a loss of €0.08 ($0.11) (see page 12), leading shares up 12.0%. On November 18, Oxford Instruments announced half-year EPS of 2.6 pence ($0.05) compared to 3.0 pence ($0.06) a year ago (see pages 10 and 12), sending shares down 11.1%.

Chart: IBO Instrument Industry Stock Index

Lab Instrument Stock Index S&P 500

Nov-06 535.19 335.81

Dec-06 539.64 340.05

Jan-07 564.40 344.83

Feb-07 537.67 337.29

Mar-07 553.46 340.66

Apr-07 568.74 355.41

May-07 576.11 366.98

Jun-07 573.08 360.44

Jul-07 584.65 348.91

Aug-07 604.22 353.40

Sep-07 648.03 366.05

Oct-07 678.52 371.47

Nov-07 654.48 355.11

Dec-07 656.46 352.05

Jan-08 583.13 330.52

Feb-08 607.77 319.03

Mar-08 600.29 317.13

Apr-08 600.29 332.20

May-08 622.99 335.75

Jun-08 602.24 306.89

Jul-08 639.07 303.86

Aug-08 643.46 307.57

Sep-08 590.45 279.64

Oct-08 456.82 232.26

Nov-08 416.63 214.88

Market Value 52 Week Price Change Change EPS EPS LTD/ FY R&D/

Company: Exchange (US $000s) Low High 11/28/2008 1 Month YTD P/E 12 Month FY Equity ROE Sales

Laboratory Instrumentation

Affymetrix: o $187,915 2.02 24.86 $2.74 -26% -88% 8 0.33 0.17 71% 2% 20%

Applied Biosystems: n $4,842,778 25.85 37.25 $27.81* -10% -18% 15 1.90 1.78 15% 15% 9%

Beckman Coulter: n $2,803,676 38.37 77.14 $43.58 -13% -40% 17 2.50 3.30 91% 15% 10%

Bio-Rad Laboratories: a $2,047,187 60.51 109.99 $74.16 -13% -28% 19 4.00 3.41 52% 10% 10%

Bruker: o $779,815 3.07 17.22 $4.70 15% -65% 10 0.46 0.59 93% 17% 11%

Caliper Life Sciences: o $54,667 0.63 5.94 $1.13 -19% -80% N/A -0.58 -0.51 9% N/A 18%

Cepheid: o $781,366 8.52 33.36 $13.58 14% -48% N/A -0.49 -0.50 4% N/A 24%

Combimatrix: n $44,753 4.73 16.38 $7.34 15% -3% N/A -2.38 -2.10 28% N/A 100%

Dionex: o $951,276 42.84 87.54 $51.29 -5% -38% 18 2.88 2.77 16% 27% 8%

Harvard Bioscience: o $64,197 1.70 5.19 $2.03 -35% -56% N/A -0.05 -0.04 3% N/A 4%

Illumina: o $2,635,323 18.82 47.88 $22.01 -29% -26% N/A -2.43 -5.14 2% N/A 20%

Luminex: o $880,444 12.57 27.00 $22.01 18% 36% 63 0.35 -0.08 4% N/A 21%

MOCON: o $44,232 6.70 11.83 $7.76 -7% -32% 11 0.72 0.67 1% 15% 7%

O.I. Corp: o $25,506 8.18 13.95 $9.89 9% -23% 33 0.30 0.20 0% 3% 12%

PerkinElmer: n $2,160,139 14.91 29.99 $18.06 1% -31% 14 1.26 1.11 53% 8% 6%

Sequenom: o $987,812 5.00 29.14 $16.71 -7% 75% N/A -0.73 -0.54 5% N/A 35%

Starlims: a $31,720 3.15 12.37 $3.67 -8% -65% 10 0.35 0.57 11% 10% 12%

Symyx Technologies: o $135,828 3.12 12.58 $4.02 -9% -48% N/A -0.37 0.56 6% 7% 53%

Thermo Fisher Scientific: n $15,645,680 26.65 62.77 $35.68 -12% -38% 16 2.20 1.76 31% 5% 2%

Transgenomic: o $13,281 0.24 0.87 $0.27 -36% -50% N/A -0.08 -0.04 1% N/A 13%

Varian Inc.: o $1,074,832 27.32 72.10 $36.60 -1% -44% 17 2.21 2.21 11% 11% 7%

Waters: n $4,146,336 33.94 81.84 $41.23 -6% -48% 13 3.18 2.62 123% 46% 5%

X-Rite: n $69,692 1.10 12.97 $2.39 -26% -79% N/A -2.79 -0.72 19% N/A 14%

Process/Metrology/Motion Instrumentation

FEI Company: o $758,058 15.87 29.14 $20.32 -3% -18% 25 0.81 1.36 33% 12% 14%

ICx Technologies: n $268,175 3.81 11.68 $7.82 -4% -19% N/A -0.45 -2.85 N/A N/A 15%

MTS Systems: o $445,447 21.12 45.55 $26.01 -20% -39% 9 2.80 2.80 4% 24% 4%

Nanometrics: o $20,989 0.90 10.00 $1.13 -7% -89% N/A -4.38 -0.22 15% N/A 13%

RAE Systems: n $59,162 0.52 2.89 $0.99 -30% -63% N/A -0.10 -0.18 18% N/A 9%

Strategic Diagnostics: o $19,987 0.83 5.64 $0.98 -26% -82% N/A -0.15 0.04 0% 2% 11%

Veeco Instruments: o $186,546 3.53 19.82 $5.93 -23% -64% N/A -0.27 -0.56 45% N/A 15%

Zygo: o $113,441 4.66 13.79 $6.61 -23% -47% 44 0.15 0.07 2% 1% 15%

Lab Consumables/Equipment

Invitrogen: o $2,531,570 20.28 49.58 $26.10 -9% -44% 8 3.17 2.69 71% 8% 9%

Kewaunee Scientific: o $22,745 7.00 20.73 $8.85 -2% -55% 7 1.34 1.23 23% 12% 0%

Millipore: n $2,829,057 43.36 82.35 $50.66 -2% -31% 18 2.84 2.48 94% 12% 7%

Pall: n $3,353,689 21.61 43.19 $27.51 4% -32% 16 1.76 1.76 109% 19% 3%

QIAGEN: o $3,300,198 12.53 23.53 $16.13 13% -23% 42 0.38 0.28 82% 4% 10%

Sigma-Aldrich: o $5,522,391 34.42 63.04 $43.11 -2% -21% 17 2.58 2.34 25% 19% 3%

Techne: o $2,402,701 57.10 82.92 $62.01 -10% -6% 22 2.80 2.64 N/A 21% 9%

Diversified Instrumentation

Agilent Technologies: n $6,816,460 15.78 38.24 $18.83 -15% -49% 10 1.87 1.87 139% 27% 12%

AMETEK: n $3,757,665 27.48 53.12 $34.93 5% -25% 14 2.46 2.12 87% 18% 5%

Danaher: n $18,769,264 48.90 89.22 $55.64 -6% -37% 16 3.53 3.72 44% 15% 5%

Mettler-Toledo Int’l: n $2,856,362 60.26 119.84 $82.25 7% -28% 15 5.65 4.70 149% 31% 5%

Roper Industries: n $4,313,868 34.85 70.48 $45.77 1% -27% 15 3.05 2.68 103% 14% 3%

Teledyne Technologies: n $1,490,754 33.90 66.21 $40.62 -11% -24% 13 3.23 2.72 74% 19% 4%

Laboratory Instrumentation Stock Index 416.63 -8.8% -36.5% 16 37% 7% 7%

Process/Metrology/Motion Instrumentation 249.63 -12.6% -36.9% 15 36% 7% 8%

Lab Consumables/Equipment Stock Index 364.06 -1.7% -27.9% 16 67% 10% 3%

Diversified Instrumentation Stock Index 74.65 -6.3% -37.5% 14 72% 18% 7%

Dow Jones Industrial Average 8829.04 -5.3% -33.4%

S&P 500 896.24 -7.5% -39.0%

NASDAQ Composite 1535.57 -10.8% -42.1%

Price

Region Market Value Market Value 11/28/2008 Change Change EPS EPS LTD/ FY R&D/

Company (US $000s) (Local 000s) (Local) 1 Month YTD P/E 12 Month FY Equity ROE Sales

Pacific Shares

Hitachi High-Technologies: t $2,584,224 ¥246,690,065 ¥1791 14% -27% 12 ¥152.87 ¥195.80 11% 11% 2%

Horiba: t $640,710 ¥61,162,203 ¥1440 1% -65% 8 ¥190.64 ¥204.39 20% 11% 7%

JEOL: t $234,295 ¥22,365,813 ¥282 3% -41% 8 ¥35.50 ¥35.50 73% 9% 6%

Shimadzu: t $1,973,532 ¥188,393,387 ¥637 -3% -37% 17 ¥37.53 ¥37.53 26% 9% 3%

Techcomp: si $29,363 SGD 19,469 $0.21 -13% -56% 5 $0.04 $0.04 4% 17% 1%

European Shares

Genetix: l $471 £30,656 £0.43 26% -17% 12 £0.03 £0.03 7% 6% 8%

Millbrook Scientific Instruments: l $14 £937 £0.01 30% -39% N/A £0.00 £0.00 0% 0% 12%

Oxford Instruments: l $949 £61,849 £1.27 -32% -36% 25 £0.05 £0.06 94% 4% 7%

Renishaw: l $5,921 £385,779 £5.30 0% -15% 11 £0.48 £0.48 16% 21% 18%

Robotic Technology Systems: l $29 £1,870 £0.03 -14% -69% N/A -£0.06 -£0.06 9% N/A N/A

Spectris: l $8,118 £528,897 £4.26 -15% -37% 7 £0.61 £0.71 46% 28% 9%

Alpha MOS: c $11,234 € 8,850 € 3.38 9% -15% N/A -€ 0.14 -€ 0.14 11% N/A N/A

Analytik Jena: g $32,783 € 25,827 € 5.50 8% -18% 12 € 0.47 € 0.40 47% 6% 8%

Biohit: h $24,798 € 19,536 € 1.51 66% -4% N/A -€ 0.03 -€ 0.12 74% N/A 6%

Cybio: g $5,426 € 4,275 € 0.85 -6% -79% N/A -€ 0.91 -€ 0.91 12% N/A 7%

Sartorius: g $214,008 € 168,596 € 9.89 5% -63% 7 € 1.47 € 1.78 52% 9% 7%

Tecan: s $429,543 CHF 522,540 CHF 44.9 -14% -34% 10 CHF 4.37 CHF 4.54 30% 26% 10%

Biotage: st $680 SEK 5,519 SEK 6.2 3% -28% 7 SEK 0.87 SEK 1.12 1% 12% 12%

Exiqon: no $91,023 DKK 534,039 DKK 22.0 -4% -41% N/A -DKK 3.95 -DKK 3.35 1% N/A 59%

Note: Losses are excluded from P/E ratio calculation of each index group.

* Ending price for Applied Biosystems was on 11/24/08 prior to the merger with Invitrogen