Welcome to the Hologic Incorporated fourth quarter and fiscal year 2008 earnings conference call. My name is Miranda and I’m your operator for today’s conference. (Operator Instructions) I would now like to introduce Deborah Gordon, Vice President, Investor Relations to begin the call.

Good afternoon and thank you for joining us for Hologic’s fourth quarter and fiscal year 2008 earnings conference call. I encourage everyone to visit Hologic’s Investor Relations page of our website in order to view the power point presentation related to the comments that Glenn Muir, Hologic’s Chief Financial Officer will be making in his opening remarks. The replay of this conference call will be archived at our website. Please also note that a copy of the press release discussing our fourth quarter and fiscal year 2008 results as well as our first quarter and fiscal year 2009 guidance is available in the Investor Relations section of our website under the heading Financial Results. Before we begin, I would like to remind you of our Safe Harbor Statement. Certain statements made by management of Hologic Inc. during the course of this conference call may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause actual results, performance or achievements of Hologic to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, those detailed from time to time in the company’s filings with the Securities and Exchange Commission. We expressly disclaim any obligation or undertaking to publicly release any updates or revisions to any forward-looking statements to reflect any change in our expectations or any change in events, conditions, or circumstances on which any such statements are based. Also, during this call, we will be discussing certain financial measures not prepared in accordance with generally accepted accounting principles for GAAP. A reconciliation of these non-GAAP financial measures to the related GAAP financial measures can be found in Hologic’s fourth quarter 2008 earnings release including the financial tables and the release. Please note that the length of today’s conference call is set at 1 hour, and will consist of 30 minutes of opening remarks from management followed by a 30-minute question-and-answer session. We therefore ask each participant to limit his or her questions to just one with one followup as necessary. I would now like to turn the call over to Mr. Jack Cumming, Chairman and CEO.

Good afternoon everyone and thanks for attending our fourth quarter fiscal 2008 conference call. Joining me today will be Rob Cascella our President and COO and Glenn Muir our Executive VP and CFO. Also joining us today is Tony Kingsley, Senior VP and General Manger of our Surgical Group and Howard Doran, Senior VP and General Manager of our Diagnostics Group who will both be available during the question-and-answer session. We are very pleased, of course, to share with you our fourth quarter and fiscal year financial results for the period ended September 27, 2008. Our agenda for today’s call is as follows: I will discuss where Hologic is today, provide information on our results for fiscal ’08, and very briefly discuss our outlook for fiscal 2009. Glenn will then detail the financial results and provide guidance for the first quarter and fiscal ’09. I will return to talk about our segment results and outlook and provide an operational update. We will then open up the call for questions. As Deb stated, we plan to complete this call in an hour out of respect for everyone’s time. First of all, Hologic posted record fourth quarter fiscal ’08 revenues of $442.5 million, an increase of 118% over the fourth quarter of 2007, which did surpass our guidance of $438 to $439 million. Non-GAAP EPS for the fourth quarter of ’08 were $0.30 in line with our guidance and compared to non-GAAP EPS of $0.30 for the same period last year. Full year revenues of $1.67 billion rose 127% while non-GAAP EPS rose 24% to $1.18 versus $0.95 last year, and also met our initial guidance from a year ago. While we are pleased with today’s results, we acknowledge this year has been very difficult, and we also realize that the decline…

I’d like to now expand on the financial results of the quarter. As Deb stated, these financial results are also detailed in a power point presentation accessed on the IR page of our corporate website at www.hologic.com. My presentation today includes certain non-GAAP financial measures and a reconciliation of these measures to their most directly comparable GAAP counterparts as set forth in the same power point presentation as well as in the press release that was issued after the market closed today. Fourth quarter revenues of $442.5 million increased 118% from last year’s fourth quarter. Revenues increased 3% from the third fiscal quarter of 2008 or June quarter led by the inclusion of Third Wave for 9 weeks. Without Third Wave for a moment, total revenues this quarter were up 12% year-over-year on a pro forma basis including the historical Cytyc businesses. We reported fully diluted non-GAAP EPS this quarter adjusted for acquisition cost of $0.30 versus $0.30 a year ago, which was in line with our guidance on our last earnings call. This EPS figure includes Third Wave which incurred an adjusted pre-tax loss of $13 million comprised in an operating loss of $5 million and interest expense of $8 million, which equates to $0.03 per share after tax loss, also in line with our expectations. Absent Third Wave dilution, our earnings would have achieved a record high. Our no. 1 revenue driver continues to be sales of our Selenia portfolio product and related services. In this quarter we sold a record 452 digital mammography systems eclipsing our guidance of 434 systems. As Jack will discuss later, this includes the shipment of our first Tomosynthesis or 3-D systems, which are called Selenia Dimensions to international customers. This quarter, our full field digital mammography revenues increased 16.2% to $119.3 million,…

Now, I would like to provide more insight into our four reporting segments. First of all, Breast Health, revenue has increased 35% to $861 million, up from $639 in ’07, and that of course is fuelled by sales of digital mammography and the addition of two new product lines relative to last year which are MammoSite and MammoPad breast cushions, and Breast Health represented 50% of fourth quarter sales which has been consistent with the recent trend. The fourth quarter full field digital mammography revenues reached $119.3 million, which is up 16% over last year. Before discussing Selenia unit sales, please note that this is the last quarter we will report the unit number as a standalone matrix. Going forward we will provide an overall revenue figure generated from our entire digital mammography product line. In addition to competitive reasons we are implementing this change largely because our Selenia systems have become a full product line with increasingly more diverse features and functionality, peripheral configuration alternatives, and geographic pricing variations, all causing unit numbers to be more confusing than helpful with respect to interpreting performance. In addition, as we discussed in the past, simple mathematical ASP calculations are not an indication of pricing trends as they are impacted by the system’s alternatives just mentioned which tend to be more driven by product mix, configuration mix, and market mix. All these elements are far more prevalent as we expand our product offerings to be tailored to specific market needs and our geographic reach extends beyond traditional offshore markets. As an added note, the MQSA data which has in the past been a good proxy for system placements in the US will become less and less relevant going forward because the database does not capture the placements for upgrades nor does it…

The question and answer session will be conducted electronically and will last for 30 minutes. (Operator Instructions) Our first question comes from Jason Bedford with Raymond James. Jayson Bedford - Raymond James & Associates: First, just so that I'm clear, when you receive approval for any of the three products, would you expect the products to be immediately accretive to the bottomline, meaning if there’s a forward spend necessary in that quarter and subsequent quarters, the marketing spend will not exceed the revenue you will get from those products?

There will be some incremental investment that will be necessary in order to roll out any of these products, and it will be by way of marketing program and any of the other promotional aspects of it. If it is in fact dilutive upon its initial release, we believe that it would be within that quarter or the near quarter following that it would be accretive. We don’t believe that the dilution would be long term, but we also believe that we will experience up to a quarter of dilution from the release of the new product. Jayson Bedford - Raymond James & Associates: Surgery, if I heard you correctly, will have 17% to 18% growth next year. What gives you confidence in that acceleration?

I think there are really three reasons. The first is that we observed that the endometrial ablation market is large and continues to be underserved. I think what we’ve gained a lot of confidence in in the last 6 to 12 months is the clinical argument that NovaSure should be a procedure that’s used earlier and more frequently for women with menorrhagia relative to medical management. We think we’re winning that battle with physicians. The second is we’re continuing to invest in patient outreach, with both things we are doing at the physician office level to provide outreach and education but also separate targeted and significant investments on the internet to convert people who are searching for solutions, and I think the third is the clinical data continues to be encouraging. Recently there was a paper presented done by the Mayo, so that’s from a reputable institution done independently that among other things specifically identified the use of RF energy, which as you know from the NovaSure procedure, it is a positive predictor of amenorrhea, so we just think you will see a bunch of different fronts things that are very encouraging.

Our next question comes from Tycho Peterson with JP Morgan. Tycho Peterson – JP Morgan: Could you comment a little bit on the instrument development timelines for Third Wave, and how we should think about that with relationship to the Cervista launch?

We are continuing to work on some development aspects for a fully automated instrumentation that would actually make sample accessioning directly from the ThinPrep Pap test vial. We are moving ahead with that project. We are encouraged by the results. We would anticipate a submission post approval in the US of Cerrvista to the FDA, and we believe we’ll be within that timeframe. Tycho Peterson – JP Morgan: In your conversations with labs, the interest ahead of having instrument launch, can you just talk as to how integral that’s going to be in terms of driving the consumable demand?

In the conversations that we’ve had, certainly there’s been a lot of interest over the last handful of months to have discussions in regards to potential conversions to the Cervista test, and we think that many of the customers today actually still have limited upfront automation. There is still a lot of manual processing within the market place. We think that we have some efficiencies that will make that easier for certain accounts, and there are other methods for backend automation that are being implemented by many customers today that we think will be appropriate in the short to medium term until we have the other device into the marketplace, so we think that the solution that we will have post FDA approval will meet the market demand, and the feedback from other laboratories have been favorable that we will have the right solution for them. We think it will be operational efficiencies. We think we will have lower Q&S rates which are real hard saving dollars to the account, the ability to do in the future 16 and 18 genotyping, and the fact that you burn less controls, we believe we will have a very economic favorable solution when it comes to cost per billable as opposed to cost per test, and that’s a much different calculation when you’re burning less controls. It becomes less costly for the customer to run the assay, so we think there are a lot of things that play into this. Instrumentation is just one, and we think we have a good stance across the board. Tycho Peterson – JP Morgan: Can you provide an update on configuration trends and pricing and some of the things that you addressed last quarter?

I think, Tycho, what we saw in the quarter was certainly an ongoing shift to more international units, and we certainly had a pretty diverse mix relative to Selenia assays we manufactured as well as our standard Selenias, so when we look at the dollars, what in fact we realized in the quarter was a very similar movement in terms of mix, but again, I think the product mix itself has shifted between the lower priced categories as well as some offshore products.

Our next question comes from David Lewis with Morgan Stanley. David Lewis – Morgan Stanley: On backlog, given the slight decline in total dollar backlog sequentially, maybe you can talk about customer fulfillment initiatives and the effect that had on backlog, and then linking that into this dynamic of trying to be conservative about this year, Jack, maybe walk us through the type of scenarios and analytical work you did to get comfortable with economic weakness that you’re not currently seeing.

I’ll talk about the economic part of it. I think if we read every economic report that’s out, we’d have to first ask were those the same economists who didn’t predict this, which was 90% of the economists out there. The reality is that what did is we did an in-field survey twice in the last thirty days on a global basis with the heads of the radiology departments, mammography departments, in the hospital themselves, on the purchasing side. We surveyed governments because in the international market, so much of product is tied to tenders. Obviously anecdotally you can find softness in a number of places, but we really haven’t seen a formal trend that has developed. We’ve had very good feedback in the US, but I guess the question is has the worst really the US from an economic standpoint, what is going to be the depth of this economic crisis because the news gets worse every day. So, on a today basis, we were conservative. I tried to point out the areas that we’ve looked at certainly which would be where is the dollar today versus other currencies, the tightening of the credit market which will affect hospitals and their ability to buy and certainly will affect governments and their ability to buy, and that’s kind of the way we came about it. Firsthand research we felt was the only way to do this, and consequently, I think that we’ve got a pretty good handle on it, and we’ve set up a good system now on a global basis that we’re receiving this information in real time literally on a daily basis. David Lewis – Morgan Stanley: But all that information you received, Jack, from these two surveys in the last 30 days is still not seeing it and then yet, you still cut numbers by some percentage factor.

We would have our heads in the sand if we did not believe that when you look at the economic indicators that are followed today. The one that I have talked about and I talked in the last call about was the economic indicator for unemployment. Unemployment is the one that I feel is going to hurt more than anything else businesses in America and especially healthcare because hospitals as you well know, David, end up with more slow play and more no pay, and that comes down to really tightening their budgets up. The credit markets have really tightened on hospitals today even those that have had reasonably good credit. Everyone is under a lot of stress including the hedge funds about how much cash are they going to need and is more cash going to be available, so we certainly have got to take that into consideration when we formulate these plans, and that’s we did. David Lewis – Morgan Stanley: On leverage, could you just comment on the specific plans next year that can be used to drive better leverage in the business and maybe comment on the impact that FX had as a percentage of growth on the topline versus that 10% and any EPS impact that currency on an adjusted dollar basis?

Let me tackle the leverage first of all. I think there are a couple of pieces to leverage, one is on the gross margin line as we move forward, and as we’ve talked about the biggest driver for us in improving our gross margins will in fact be an acceleration of the revenue side of things. I mean we do have a fairly fixed cost structure when it comes to manufacturing. We will require an acceleration in revenue to get a lot of leverage on the manufacturing side. I don’t believe, and I think it’s evident in our guidance that there is a lot of leverage on the margin side in FY09. I believe that will happen in 2010 as we begin to get traction from the three new PMA products. That’s one side of it. The other side of leverage is on operating expenses, and I think as we’ve tried to indicate and illustrate today, we are seeing continued improvement and even decreased in our overall operating expenses. We do expect to be able to make some continued improvement from a leverage or percent of revenue standpoint as we look at FY09, and I think that’s where we’ll see a little bit of the benefit. With respect to your question on FX for a moment, I just want to remind everybody that when we think about our international sales consolidated, they are less than 20%, so to a certain extent, we don’t have a large exposure, maybe not terribly good, I mean to the extent we don’t have more international sales, but we don’t have as much exposure. The strengthening dollar does impact us though, and it impacts us in a couple of ways. We have two parts of the business. The imaging part, the capital equipment side of…

For Q4? David Lewis – Morgan Stanley: No, for fiscal ’09. As you think about your outlook, do you think currency affected you by more than 100 basis points of growth on the top and more than 2 cents on the bottom?

Yes, probably.

Our next question comes from Amit Bhalla with Citi. Amit Bhalla – Citigroup: In terms of the OUS business, can you talk about what your assumptions are for OUS sales for the three new products, and in this current quarter, what portion of the 114 units were Tomo units in the quarter?

Do you mean what percent they were of the total Selenia units? Amit Bhalla – Citigroup: I was calculating about 114 Selenia systems or units in the quarter that were sold overseas. I’m just trying to get a sense if there was Tomo units in that number or if there was a separate number for Tomo.

As a matter of fact, I’m glad you asked that Amit because I needed to correct myself because earlier in my talk I said 542 instead of 452, so that means Rob will have to make up that extra 100 this quarter somehow. Rob, do you want to go ahead? It was like about a 75:25 split talking about international and…

The first question that you had was what kinds of international volume in our plans and the projections for ’09, and there again we took a relatively conservative view on Tomosynthesis, and the reason being on that was simply it’s primarily going to be in the European market. We don’t think there’s an opportunity at least in the first year for the rest of the world or Asia-Pacific, and we also believe that with the strengthening dollar that that product will be challenged, but we also do believe that we will have some near term successes as we did in this past quarter, so we’re relatively conservative. With respect to both Adiana and Cervista, there are challenges relative to reimbursement, product registration, some of the issues that we discussed earlier, so they are relatively low levels of international sales for those products as well.

To answer one of the questions you did ask when you said is our dimensions in our international number, and the answer is, yes, it is. Amit Bhalla – Citigroup: Can you quantify that for this current quarter, and my followup question would be in fiscal ’09 for the breast business that’s growing 5%, Glenn talked about just service contracts and an increase in Suros as the drivers for growth, should we read from that that you were looking at the US to the Selenia business flattening out? What are the assumptions for Selenia as well as the other portions of the breast business?

When you look at the numbers, we took the position that we’re not going to give out units, nor will we give out units on Tomosynthesis, but your point is very well taken, and that is that there will be in growth in certain areas of our breast health segment. We are forecasting flattening on digital mammography until such time as we in fact introduce Tomosynthesis. We are looking at primary market growth happening in the US market for that over this year following its launch. There will be growth outside the US, but again, I think that what we’ve attempted to do is take into consideration that that growth may be impaired somewhat by us being less competitive with the product as a result of currency exchange. Amit Bhalla – Citigroup: Did Glenn say that backlog in terms of units was flat for Selenia this quarter?

We did say that we had a very strong order quarter for Selenia, and in fact we did, and we’re relatively backlog neutral for the product, so if the question is why aren’t you showing growth and reflecting that trend, again I think that what we’ve tried to project in all of what we’ve talked about today was a level of conservatism because of really the unknown, and I think we’ve taken a position that rather than put forth numbers that in fact may be later impacted by an unfavorable in the global economy or an exchange, we took the position that we would be conservative relative to those business lines.

Our next question comes from Amit Hazan with Oppenheimer Amit Hazan – Oppenheimer: If we think about your unit orders for digital mammo directly, do you expect that worldwide unit orders next year will be up and then will US orders be up next year?

Yes, in both areas. Amit Hazan – Oppenheimer: The second question I have is on the Costa Rica facility. If you can help us out and kind of walk us through how quickly that is going to reach capacity or what is the trend towards reaching capacity, and then how should we think about that relative to gross margin and generally what your gross margin thoughts are long term beyond 2009?

We’ve just completed the transfer of the NovaSure line. We’re tooling up on the Adiana line, and obviously we won’t really start seeing meaningful volume out of Adiana until such time as it gets FDA approval because its primary market focus will be the US market. So there’s certainly a lot of effort that is going in with the additions of people that are being trained to build the product and indirectly who are being trained to manage the building of the product, so until such time as we’re probably through the half of the year, we are not going to see our absorption stabilize there as a result of a lot of both direct and indirect labor being in a training and learning mode and in fact the release of incremental volume to that factory. Once it is up and running, it’s a world-class facility that has substantial capabilities for growth. Our intent would be to move more products there and reap the benefits of a low-cost manufacturing operation. It’s just going to take some time. Amit Hazan – Oppenheimer: What would be your goals for long-term gross margins, if you could just generally comment?

Just in general, or for the products that are being built in Costa Rica? Amit Hazan – Oppenheimer: In general, but I’m thinking kind of to the extent that it helps you with that, but generally speaking, working margins on your business.

There are many elements of our gross margin, but if we look at all of the pieces of the gross margin puzzle, first being Tomosynthesis which is a high-content software product which should theoretically have a very strong gross margin. Secondly, we have a low-cost manufacturing operation for all of our GYN surgical products which should provide a margin benefit to us, and as our interventional breast volume continues to grow, we’ll have better utilization and growth out of that factory as well, so the long-term expectations barring issues of competitive price pressures, we being forced to manage pricing as s result of strengthening dollar, all would be very positive. So we’re very encouraged that in a market where generally we see margins declining, we feel that our margins will improve over time, and they have.

Our next question comes from Eric Lo with Merrill Lynch. Eric Lo – Merrill Lynch: My first question is on Selenia. You mentioned that OUS mix is becoming a bigger part of the overall mix for the products. Can you comment on what it is right now and where do you think it can go within 12 months?

Around 25% right now, and we believe that that will increase to probably a bit north of 30% over the balance of this year. Eric Lo – Merrill Lynch: On the US market specifically, the market itself is about 44% penetrated. Can you help us understand what the penetration is in the high volume and mid volume and low volume centers and what the size of each of those markets might be and what do you think the opportunities are for placements over the next year, and do you think centers within each of these different markets have a specific price point that is acceptable, and what do you think that price point is?

There’s a lot in that question, and let me see if I can answer it. Clearly, when you look at the US market, of the 8000 or 9000 sites that are available, it is doubtful that 9000 sites are going to convert to digital mammography. As we’ve always said we believe that there’ll be ongoing consolidation. Through this current year, as consolidation is occurring, what we’re going to find in that market is that it will be low-level buyers. It will be those who are making decisions on a choice of either not converting to digital or finding the lowest cost alternative to converting to digital and may in fact be a CR user at some point in the future. That’s one element of the target buying group today, and we are offering products that can in fact compete at that level. In addition to that through consolidation, we are going to see some of our consolidator type buyers buying a lot of small practices and wanting to standardize across that market with a standard type Selenia at more traditional pricing, so if you look at specifics, we’re talking about a product that ranges somewhere between $180,000 to $250,000 depending on what profile of buyer we’re considering. If you looked at the number of accounts that is relevant to that, I think what we’re findings is that the market is going to become segmented, and it is going to be the high-end market which is going to be in a replacement mode over this year where they are replacing their units, their older competitive units, their older Hologic units, and will continue to buy Selenia or Selenia Dimensions, and then the remaining portion of the market is the lower tier, and that lower tier will be split up between those practices that are still attempting to go standalone which will be the ultra low end or those that have become acquisition targets or consolidated and they will go back to the mid-tier market because in fact they are being acquired by the very people that are now standard Selenia users. Eric Lo – Merrill Lynch: Last question is on NovaSure. Can you comment on what the in-office penetration is right now and have you guys seen physicians becoming more focused on in-office procedures trying to drive incremental income for their practices?

We have continued to see growth in the office business. It is now I think approaching 14%, so it continues to grow on a quarter on quarter basis, and we are continuing to see, I guess I would say, increasing enthusiasm about office-based physicians among other reasons when you talked about which is some of the economic incentives, so we are comfortable that we are both seeing growth in offices that we have already opened where we are working with people to expand their volume and also continuing to use existing happy NovaSure users from the hospitals and into the office.

We’ll take our next question from Isaac Ro with Leerink Swann.

On Tomo, what feedback on pricing can you share with us from Europe, and are you charging the listed price, and if so, do you think that pricing will hold in US?

To try to be clear, on international, we sell through dealers, so there is a dealer discount that is applied to the sale of a Tomo unit, so if you assume for a moment that a standard Tomo unit in the US might sell for $500,000, and I’m just throwing out a number, there is going to be roughly a 20% discount off of that for the dealer, so today when we look at a full configured Tomo system, we are obviously going to be below the US pricing threshold, but in fact the prices that we have established for Tomo on those sales that have been executed on an international basis have all held without erosion. Now, it’s very early on, but the pricing expectation has been fulfilled, which I think is an important aspect of the product, meaning that the prices that we had earlier suggested, and let’s assume that a fully loaded Tomo with a workstation is going to sell for somewhere in the area of $450,000 to $500,000 on a US basis that that price modifies for a dealer transfer have held with the dealers and the end-customers that have purchased it thus far.

For Cervista, about the data, should we expect to see some head-to-head results versus Invader?

I don’t think so at all. I think the summary data that we are going to provide is going to certainly validate the credibility of the technology, and it will be very summary data, but again I think it will certainly demonstrate the creditability our specific testing. To just to answer that further, the clinical data that is being presented is being presented as compared to the old trial and that is effectively the former HPV test.

Ladies and gentlemen, that is all the time we have for questions today. At this time, I’ll turn the conference back over to Jack Cumming for any additional or closing remarks.

In times of economic stress, it is important to go back to the basics. Our conservative financial practices have positioned us with a strong balance sheet to withstand these turbulent conditions, and we remain focused on executing our business strategies to further advance our position as a market leader in women’s healthcare. Our investors, you, can be confident we are closely following the impact of the global slowdown on the industry sectors we serve and are taking steps to manage or mitigate the potential effects on our business. In closing, for fiscal 2009 and beyond, I remain confident in Hologic’s strength and in our ability to execute our long-term strategy and deliver on our commitments. We have an excellent product portfolio and R&D pipeline which will serve as our gateway for future growth. Going forward, we expect great things. I look forward to keeping you informed of our progress, and as in the past, I would like to take a moment to sincerely thank Hologic team members worldwide for their continued dedication and hard work, and together we are one. We look forward to speaking with everyone again in early February to discuss first quarter results, and I would like to end by wishing everyone a very happy, healthy and peaceful New Year, and maybe we will give peace a chance this time. Thank you.