Good afternoon. My name is Stephanie, and I will be your conference operator today. At this time I would like to welcome everyone to Millipore's fourth quarter and full year 2009 earnings conference call. (Operator's Instructions) I would now like to turn the conference over to Joshua Young. Please go ahead.

Thank you very much Stephanie. Good evening, I'd like to welcome everyone to Millipore's fourth quarter and full year 2009 earnings conference call. My name is Joshua Young and I'm the Director of Investor Relations for Millipore. Joining me on today's call are Martin Madaus President Chairman and CEO and Charlie Wagner Chief Financial Officer. In addition to the earnings release we issued earlier today we will also be referencing a slide presentation as part of today's call. This presentation can be viewed by clocking on the web-cast link on the millipore.com homepage or by accessing Millipore's investor relations website. A PDF copy of our slides will be posted to the website after the call. We will also be highlighting non-GAAP financial information. Our reconciliation of our GAAP financials to our non-GAAP financial measures is included in our earnings release and posted on our website. Before we begin I would like to make the usual Safe Harbor Statement that during the course of this conference call we will make forward looking statements regarding future events for the financial performance of the company that will involve risks and uncertainties. The company's actual results may differ materially from the projections described in such statements. Factors that might cause such differences may include but are not limited to those discussed in today's earnings release and in our Form 10-K as well as other subsequent SEC filings. Also note that the following information is related to current business conditions and our outlook as of today, February 02, 2010. Consistent with our prior practice we do not intend to update our projections based on new information, future events or other reasons prior to the release of our first quarter 2010 financial results. Now I'd like to turn the call over to Martin Madaus.

Thank you, Joshua. Good evening everyone and thank you for joining us today on the call. I'm very pleased with the outstanding financial results Millipore generated in 2008 – 2009. Our fourth quarter performance was indicative of many of the same trends we have experienced throughout the year. I would say the key takeaways for 2009 are the following. First, we generated excellent financial performance in the midst of one of the worst global recessions we have seen in the last fifty years. We have met or exceeded our guidance for revenue growth earnings and cash flow. This is a testament to the resilience and strength of our business model. We have percentage of revenues we derived from consumer products and the attractiveness of our core markets makes our business less susceptible to economic downturns. Millipore is one of the most attractive franchises in the life science tools market and our excellent execution in a very challenging market enables us to report strong performance in 2009. Second, our bioprocess division had a great year and rebounded and as we had predicted in our earnings call one year ago the significant amount of exposure that we have to the biotech industry benefited as these customers increased their levels of production for monoclonal antibodies and vaccines. Third our bioscience division outperformed most of its peers during 2009 despite weak demand from large pharmaceutical customers and a challenging environment for laboratory instrumentation sales. For the past few years we have expanded our exposure to academic customers and life science consumable products and this really helped us to be less affected by lower levels of capital spending. Fourth, 2009was a year in which we significantly advanced our innovation strategy. We increased our R&D spending by 12% completed four acquisitions and signed eleven technology agreements.…

Thanks, Martin. Let me provide some additional details on the fourth quarter and the full year results before providing out outlook for 2010. I'll begin with a discussion of our GAAP operating results in the fourth quarter. Total revenues increased 7% from last year's fourth quarter totalling $426 million. Excluding a 5% favorable impact from changes in foreign exchange rates, organic revenue growth was 2% in the fourth quarter. Martin mentioned earlier that our fourth quarter revenue growth was adversely affected by six fewer days in the quarter compared to the fourth quarter of 2008. As a reminder, we had five extra days in Q1 2009, and while the difference in days was inconsequential to our full-year performance, it did affect the comparability of our first and fourth quarters. This slide illustrates the impact on our Q1 and Q4 quarterly growth rates. As you can see, our revenue growth in Q1 and in Q4 was roughly three to four percentage points above and below the average growth we reported for the year. And while we can't precisely quantify the impact of the days, we know that much of the difference in quarterly growth rates was due to the difference in days. Our gross profit margin in the fourth quarter increased 250 basis points on a year-over-year basis to 54.3% from 51.8% in Q4 2008. Our SG&A costs increased 2% on a year over year basis due primarily to higher currency translation and incentive compensation in the quarter while our R&D spending was up 19%. Our GAAP operating margin increased 360 basis points to 15.3% from 11.7% in Q4 2008 and our earnings per share increased 39% to $0.78 from $0.56 in Q4 2008. Our fourth quarter GAAP profitability benefited from roughly $13 million lower of one-time costs compared to the…

Stephanie, if you could please assemble the Q&A roster.

(Operator's Instructions) Your first question comes from the line of Jon Wood with Jefferies.

Hey, thanks a lot. Charlie, obviously the cash flow off the charts here in '09 and it seems like you billed some additional working capital improvements into your 2010 outlook. DSOs are at an all-time low from my perspective so where is the additional working capital efficiency come from?

Yeah, Jon. We have built in some improvement. The DSO improvement as you point out is very significant so we're not looking for additional improvement there. We'll be working to maintain the levels we have achieved. We do have additional room on inventory in our view and also in payables and some other smaller categories so we think we can continue to drive improvement there.

Okay great. And then it looks like you ended the year with under two times net leverage, I'm not even sure you can pay down any of the longer-term bonds that are in your capital structure right now. So are you open to repurchase and/or cash dividends in the event you don't spend the excess cash on acquisition opportunities?

Yeah, Jon. Obviously we're in a very strong cash position right now. The number one use of free cash flow in 2010 will be to fund the attractive acquisitions. Clearly that's something that we're looking for right now. In the event that those don't materialize we are trying to maintain some financial flexibility. We've got some refinancing of the revolver and the converts to do in 2011 so we're keeping some flexibility there. But as our refinancing plans take shape throughout the year we would consider alternative uses for the cash flow in the event that the M&A doesn't materialize.

Okay. One more, the Indian JV buyout, it looks like it's about $0.04 or so accretive to EPS, is that math right?

Actually, Jon, we're going to have a fair amount of costs associated with that as well so it will be slightly accretive, but some of that earnings will be offset by costs related to the integration.

Okay, thanks a lot.

Your next question comes from the line of Isaac Ro with Leerink Swann.

Hi there, thanks for taking the question. Good afternoon. On the bioprocess business I wanted to just talk briefly on two items. One would be just sort of the extent to which you think Mobius and your product development on that side of the franchise is helping you to gain market share and in fact seeing production. Do you see some of that going on?

Well yeah remember, we came as a second or third entry into the disposable manufacturing market. Through the acquisition we made in 2006 we established kind of a first step in and since then we have increased our product offering and then we came out with the flex-ready product line complete assemblies that really no competitor has in the market. So we're clearly making inroads, clearly outgrowing the market by a huge margin particularly in 2009, and we continue to see that because now we're still the lead in disposable manufacturing. And taking disposable technology and combining it with our state of the art filtration offering is a very good combination so we're clearly gaining market share here.

Great. And then maybe secondarily to that, do you see a change out there in the biotech industry as it relates to how drug companies build and maintain their inventory? Considering some of the issues other major drug companies have had with inventory management I'm wondering how you think that might improve your opportunities to grow the business with the disposables and the flexibility of those going forward?

I think inventory management has become more of a focus so it's becoming, I think, more predictable and we're working with more companies to closely align their demand planning with our production planning so it doesn't create these ups and down and that's been an improvement last year. I don't think there's a particular impact using disposables here on the inventory planning question, but all companies, I think they're making more of an effort to be predictable customers.

Great. And then just very lastly if I could ask on bioscience, you obviously have some opportunities in India through the acquisition of the JV and I'm wondering if you see other opportunities, as Charlie mentioned through acquisitions, to maybe acquire a channel in the emerging markets, or perhaps you prefer to grow through organic build out?

No, we do clearly both and we've made small acquisitions last year and I would not exclude a regional player to become part of our acquisition target list. There are some companies there — our first priority is however on companies with innovative technologies and products that we can sell globally.

Thank you very much.

Your next question comes from the line of Ross Muken with Deutsche Bank.

Good afternoon. So obviously a lot of activity on the new product front and we've seen the increased R&D, have you guys — I guess what kind of statistics or qualitative commentary can you provide in terms of percent of sales coming from products introduced in the last 12 months or anything that could sort of help us think about with some of these really innovative solutions what it's doing to the top line versus what we've seen historically from the company.

Yeah. I know there's demand for these kinds of metrics. I'm reluctant to share it because the comparability between companies is just not there. Everyone defines a new product differently. We will make an effort during this year to break this out in more detail, but I can tell you that internally we're tracking a number of things. One is percent of sales of new products which has increased dramatically, particularly in bioscience. We also track the value of our development pipeline and discounted cash flow model and we track another four or five other R&D metrics and the majority of these metrics are pointing upwards, that means in the right direction. And when we make R&D investment decisions we are now in a position to really make tradeoffs between different types of projects and we have shifted some of our R&D money now into higher value more breakthrough projects over the year. A few years ago we were not able to do it and now we can so there's a much, much higher level of R&D management sophistication going on now. But as I said, I know there's demand for this information and we will come out during the course of this year with a meaningful metric that you can track.

And you know, Martin, you provide a lot of good commentary on some of the struggling end markets for the year. You talked a little bit about Japan, I know that's an important market for you, particularly on the bioscience side, what are we seeing there? And then in small cap biotech land we've seen funding improve, any signs of life in that sort of customer segment?

Yeah. Japan has been hit hardest by the recession and you can see it as for us Japan has a high percentage of non-biotech business, but also the research funds weren't released as quickly as we hoped. Now that has stabilized a bit so it should definitely be better this year, but those were the main drivers there. The small biotech market has recovered. It's too early to say for us whether there's some true demand coming back. We have kind of landed in the middle here. We saw pharma spending and also small research biotech spending down last year which was really unusual for that market, the first time ever. And so we think this will recover somewhat, which includes small biotech, but we're not seeing for this year a full recovery to historic levels. Now that could change because you're right, the funding environment has improved quite a bit so that could change. And if the research markets recover for pharma and biotech that would definitely be an upside, but it's too early to call.

I appreciate it, thank you.

(Operator's Instructions) Your next question comes from the line of Dan Leonard with First Analysis. Dan Leonard – First Analysis: A bit of a similar question. Martin, your qualitative commentary in your prepared remarks on revenue growth prospects was very bullish in both segments yet the guidance assumes organic revenue growth remains constant with 2009 levels. So what are some of the offsets to the positive signs you're seeing in both businesses.

Well first of all, we grew 8% last year (inaudible) process, so the comparisons will be a little bit more difficult there. We do see good trends. They do have to materialize. And just like last year we started out the year factoring in some of the risks. These risks are not materializing, particularly on the bioscience side, and there should certainly be upsides. So we kind of guided in the middle of the different outcomes. Dan Leonard – First Analysis: Okay, thank you. And then a question for Charlie, why would the tax rate increase in 2010?

Dan, it's really primarily driven by geographic mix of profits. We are generating more and more profits in the United States and that's driving the tax rate up slightly. Relative to the outlook we would've probably given last year, we had expected the tax rate to be increasing actually at an even greater rate. We were able to put some tax planning strategies into effect at the very tail end of 2009 that benefited us into 2010 and beyond. So though there is an increase year over year, it's not what we would've expected a year ago. Dan Leonard – First Analysis: Okay, thank you.

Your next question comes from the line of Derik DeBruin with UBS.

Hi, good afternoon. You're guiding to improvement in margins, you mentioned margin expansion in your prepared remarks in 2010, given that you're still investing in R&D probably north of 7% of sales, I guess where are the gains going to come from? Can you talk a little bit more about how you see the SG&A and the gross margins progressing throughout the year?

Yeah. There are certainly two areas where we see continued opportunity for leverage, one is the gross margin area and gross margin is combination of product mix. If you introduce more innovative more state of the art products you do have a favorable product mix effect. There's some pricing involved as well and some manufacturing efficiencies that we'll continue to drive. And we try to be a bit more efficient every year in SG&A and get more sales productivity out of our organization and those two factors contribute to it. Charlie, do you want to expand?

Yeah, Derik, one other thing. This year we pushed the working capital initiative pretty hard. That decreased volumes in some of our plants and also led to some inventory write-offs as we lowered the water level in inventory throughout the year. Though we'll continue to drive inventory levels down next year, the volume and the write-off impact is not as significant.

Okay. And I guess I jumped on the call midway, can you talk about the interest expense outlook? I know you've paid down your revolver, where do you see that number coming in for 2010?

Derik, we didn't guide to that. Obviously it doesn't change too much. The outstanding debt is all fixed at this point and we're obviously not earning very much on our cash balances so if you look at kind of where we exited the year that should be a good indication of the run rate for the year, but we can take a look at it offline.

Yeah that's fine. That's kind of what I assumed. Okay great, I'll get back in the queue. Thank you.

Your next question comes from the line of Tycho Peterson with JPMorgan. Tycho Peterson – JPMorgan: Hey, good afternoon. Maybe just starting off with a question on R&D. If you can talk a little bit — I mean, you had kind of telegraphed increase in the back half of 2009 and as we think about kind of the level for 2010 can you talk a little bit maybe about how you're prioritizing between the two divisions and whether the bar's been bumped up for our run rate going forward here a little bit?

Well we are close to 7% so we are in the range of a little bit over 7% is probably a good run rate assumption for this year. In terms of prioritization between the two divisions, it's really driven by the competition of the best proposals. It really to me doesn't matter where. I mean, we have certain plans for each division, each business unit has their plans for innovation, and as we look at ideas we look at it across the board now and we fund the most promising ideas. We do separate out between what we call breakthrough innovation and sustaining innovation and that's an expression of balancing the risk a little bit here between a really risk project and a more safe bet so we want to do both. But it's really both. The market opportunity for bioscience is larger for Millipore just because the market is a $30 billion market and we have a good business for this and there's much more to go. But there are also good opportunities in bioprocess to innovate. I mean, this is by far, for us, a most attractive business today and we'll continue to invest into it. Tycho Peterson – JPMorgan: And in your comments you mentioned clinical diagnostics in the context of the Lab Water business, can you talk a little bit about how you view that opportunity overall? Is there more cross selling that you can bring into that market and then are there other emerging opportunities, either implied markets or other areas, that are getting more interesting?

I mean, we (inaudible) diagnostic market today throughout OEM units so we see a lot of that business. We sell Lab Water and it is a good market. We haven't yet decided to move into that market, but as you can imagine we see the market, we see the end markets, we have asset capabilities, but we don't have a compelling platform or sales force today so it would be a major move for us, but today not what we have. I wouldn't include it, I wouldn't exclude it. Tycho Peterson – JPMorgan: Okay. And then one last one on Lab Water, can you talk a little bit about how you think about instruments going forward? You've talked about the replacement cycle I think being pushed out in the past, do you have visibility on where that market kind of starts to see some inflection and is that closely tied to new lab space being built out or how do you look at that?

Yeah it is. So that's why Lab Water instruments were tough last year because many of these pharma changes meant expansion for labs which did not happen really. We did benefit from expansions in Asia and very soon some of these countries, particularly China, will be the largest market for Lab Water. That is good so we're expanding there and we're expanding also with products. I would say that the trends are, I would say cautiously optimistic coming into Q1 2010. There's definitely improvement in the sales pipeline in Lab Water. That's why I think it's going to be a much better year this year for Lab Water. And then in development we have actually a number of projects that are very substantial improvements over what we have today. Maybe in some cases they could be game changing in how Lab Water is (inaudible) today. That's in development today. Tycho Peterson – JPMorgan: Okay, thank you very much.

Your next question comes from the line of Marshall Urist with Morgan Stanley. Marshall Urist – Morgan Stanley: Yeah hey, guys. Good afternoon. So I wanted to just get a little bit more detail on how you're thinking about bioprocess for 2010, particularly I mean I understand comps are more difficult, but could you give us just a little bit more color on how you're thinking about or what's sort of baked in for new approvals in 2010 and as well as some of the other, the applied markets and the small molecule pharma business?

Yeah. We never bake in approvals that aren't approved, so we basically say if there's a new approval coming in great. And I know there are a number of products that have a high change to be approved and in fact it could turn out that 2010 is a great year for new product approvals when you look at what we're seeing from Amgen and HGS, Pfizer certainly got approval and maybe AstraZeneca. But it's not wise for us to bake these in because we've seen these being delayed. When they come in and get approved there is upside certainly, but it's never good to count on it just like with a virus epidemic, we don't count on that. It's an upside, and at the same time you also have sometimes downside so drugs are not performing as planned. But it could be a strong year for biotech. I mean, it looks like it right now. Marshall Urist – Morgan Stanley: Okay great, thanks. And then just one last one, I know you mentioned that SG&A could be a source of leverage this year. I guess it would be helpful if you just explained to us what are the areas that you're planning on investing in this year relative to 2009?

In SG&A? Marshall Urist – Morgan Stanley: Yeah.

Okay yeah, continued expansion of our e-commerce channel. That will continue as that's our fastest growing channel, and that's more of a capability play. Continued expansion in certain Asian markets we have in China, Singapore, India, and in the I would say more established market is driving up productivity improvements which we always do so sales per person trend upwards. That's kind of the profile.

Yeah. We've recently launched a couple of initiatives taking some of the learnings and techniques from our success in the manufacturing environment with Lean 6 Sigma, applying those to G&A functions and looking to more systematically drive — we've been able to drive productivity improvements through careful management, we're now looking to drive those productivity improvements more systematically through programs and perhaps we'll update on that later in the year. Marshall Urist – Morgan Stanley: Okay awesome. Thanks, guys.

Your next question comes from the line of Eric Kriskola (ph) with Thomas Weisel.

Good afternoon, just filling in for Peter tonight. So first question, since a lot of the large bio pharma like Pfizer-Wyeth have been largely consolidated, have you seen specific changes from those accounts being that they've done their restructuring and they've done all their cost cutting? Have those accounts changed in either way three to six months looking back and looking forward?

Yeah. They have changed in a way and we saw that change in 2009. They're basically putting a lot of projects on hold, not really cancellations. Or you had changes in people you talk to for sales organization in key account groups. And then recently we saw more activity in the form of RFT (ph), so for certain activities that were on hold or things that they would like us to consider for outsourcing, and that's where we see a bit of a change now in these large accounts. It varies a little bit by account so in some of these mergers we haven't seen much of a change, but others have been, I would say, more aggressive on cost reduction and there you saw obviously bigger changes.

And on the flu business, we've seen stories of governments like the UK trying to come back and trying to cancel orders that they've made around the H1N1 virus and I guess stockpiling issues there and less demand. Has that affected you in any meaningful way?

No it hasn't, not at all. I mean, we are counting on a wave of H1N1 production, but as I said there will be the resumption of regular flu which will be good and then some other vaccines coming in so it's not going to be a huge headwind for us at all.

Great, thanks a lot.

(Operator's Instructions) Your next question comes from the line of Jon Groberg with Macquarie Capital. Jon Groberg – Macquarie Capital: Hey, congratulations particularly on the cash flow of specific emphasis for you this year so congratulations. Just I guess a lot of questions have been asked, maybe just a couple of data points I might be able to get. Did you say what in terms of pricing on a net basis you realized for both division in 2009 and do you have any expectations in 2010?

Pricing for us hasn't changed in the last year and there's always a slight positive variance, about 1%, maybe a little bit more per year net-net for both divisions. That's what you should factor in. Jon Groberg – Macquarie Capital: Okay. And then you mentioned e-commerce, are you willing to give any metrics in terms of on the biosciences side what percent of your sales are coming from your e-commerce channel at this point?

Yeah. It is our fastest growing channel. We haven't published that. Overall for the company, e-business revenues are north of a quarter billion dollars, but we haven't broken it out specifically for the division. We may look at doing that over the course of this year.

Yeah if that's helpful we should probably do it because it's a major channel now and what's particularly encouraging is that we can connect so we are a bigger player, and particularly in research, we can connect with large systems now directly which is very good. So have a strong B2B connection plus the web store is very good to have transactions directly with our customers. Jon Groberg – Macquarie Capital: Sorry, Charlie, did you give a number for the overall total business that you said that you were doing through that channel?

Yes, about $250 million. Jon Groberg – Macquarie Capital: And does the bioprocess, do those customers buy through the Internet as well? I would think that maybe they would do a little bit less of it.

Yes, but the majority is bioscience, but some bioprocess as well. Jon Groberg – Macquarie Capital: Okay. And then just last question as we think about the year, and I guess I might have written something down wrong, but I thought you had five fewer days in the fourth quarter, but I think you said you had six fewer days. It could've just been my mistake, but in 2010 are there any days issues in terms of the quarters that we're looking at as you go throughout the year?

No. I am very happy to report that in 2010 there will be no issues. I think Q1 will be a day shorter and Q4 will be a day longer, both of which are completely immaterial differences. Jon Groberg – Macquarie Capital: Okay great. Thanks a million.

Your next question comes from the line of Derik DeBruin with UBS.

Actually I was going to ask the days question so I'll get back, thanks.

Thanks.

At this time there are no further questions in queue. (Operator's Instructions).

Okay, operator. We are ready for our closing remarks.

Thank you. We have reached the allotted time for questions. I would now like to turn the call over to Martin Madaus for closing remarks.

Thank you for joining us this evening. 2009 was a successful year and we enter 2010 with great momentum and confidence. We hope to see many of you at the Barclay's Investor Conference in March and we invite you to visit us here at our offices in Billerica, Massachusetts. Thank you for your attention this evening and good night.

Thank you. This concludes today's conference call. You may now disconnect.