Selected Financial Information
<TABLE>
Years ended June 30      1998     1997     1996     1995     1994
(In thousands, except per share amounts)
<S>                  <C>      <C>      <C>      <C>      <C>
Operating information
Net sales            $150,513 $142,053 $133,004 $120,024 $109,526
Cost of sales          47,390   43,458   41,406   38,428   35,152
Gross profit          103,123   98,595   91,598   81,596   74,374
Operating expenses:
  Selling, general 
   and administrative  47,689   47,344   46,290   43,401   39,570
  Research and product
   Development         13,284   12,521   11,527   10,500    9,902
  Write-off of goodwill    -        -        -     2,168       -
Total operating 
 Expenses              60,973   59,865   57,817   56,069   49,472
Operating income       42,150   38,730   33,781   25,527   24,902
Other income               -        -     1,003    4,130       -
Interest income         1,374    1,396    2,034    2,202    1,465
Interest expense         (115)     (85)     (93)    (153)    (249)
Income before taxes 
  on income            43,409   40,041   36,725   31,706   26,118
Taxes on income        14,759   13,814   12,762   11,932    9,076
Net income           $ 28,650 $ 26,227 $ 23,963 $ 19,774 $ 17,042
Basic earnings per
 Share               $   1.25 $   1.09 $    .91 $    .69 $    .56
Diluted earnings per
 Share               $   1.18 $   1.03 $    .87 $    .67 $    .55
Shares used in computing
 per share amounts:
     Basic             22,978   24,103   26,224   28,723   30,252
     Diluted           24,316   25,440   27,439   29,456   30,882	

All share and per share amounts have been restated to reflect the two-for-
one splits of the Company's common stock effective December 29, 1995 and 
June 8, 1998. The Company has paid no cash dividends.

At June 30             1998      1997      1996      1995      1994
(In thousands)
balance sheet information
Working capital    $ 35,745  $ 48,215  $ 47,888  $ 67,249  $ 71,414
Total assets        107,259   118,163   113,186   131,780   133,278
Long-term debt           -         -         -         86       104
Stockholders' equity 70,689    84,163    82,204   103,871   111,139
</TABLE>
24
<PAGE>
Consolidated Balance Sheets
<TABLE>
At June 30                               1998        1997
(In thousands, except share and per share amounts)
    Assets
<S>                                  <C>         <C>
Current assets:
 Cash and equivalents (including 
  invested cash of $5,364
  in 1998 and $16,586 in 1997)       $ 13,184    $ 24,624
 Temporary cash investments             5,850       8,252
 Accounts receivable (net of
  allowance for doubtful accounts of
  $606 in 1998 and $533 in 1997)       31,350      29,226
 Inventories                            9,921       9,479
 Deferred taxes                         7,965       7,136
 Prepaid expenses and other             1,089       1,076
   Total current assets                69,359      79,793
 Property, plant and equipment, net    30,070      30,225
 Other assets                           7,830       8,145
                                     $107,259    $118,163
Liabilities and Stockholders' Equity
Current liabilities:
 Accounts payable                    $  5,681    $  4,442
 Accrued liabilities                   17,394      18,639
 Income taxes payable                   6,526       4,905
 Accrued product warranty               4,013       3,592
   Total current liabilities           33,614      31,578
Deferred taxes and other                2,956       2,422
Commitments (Note 10)
Stockholders' equity:
 Preferred stock (par value $.001
  per share; 1,000,000 shares
  authorized; none outstanding)            -           -
 Common stock (par value $.001 per
  share; 40,000,000 shares authorized;
  shares outstanding: 22,315,910 in
  1998 and 23,694,060 in 1997)         38,926      36,323
 Retained earnings                     32,106      46,622
 Accumulated translation adjustments   (2,242)       (996)
 Net unrealized gain on equity
  securities available for sale         1,899       2,214
   Total stockholders' equity          70,689      84,163
                                     $107,259    $118,163
</TABLE>
See notes to consolidated financial statements
25
<PAGE>
Consolidated Statements of Income
<TABLE>
Years ended June 30            1998     1997     1996
(In thousands, except per share amounts)
<S>                        <C>      <C>      <C>
Net sales                  $150,513 $142,053 $133,004
Cost of sales                47,390   43,458   41,406
Gross profit                103,123   98,595   91,598
Operating expenses:
 Selling, general and
  Administrative             47,689   47,344   46,290
 Research and product
  Development                13,284   12,521   11,527
Total operating expenses     60,973   59,865   57,817
Operating income             42,150   38,730   33,781
Other income                     -        -     1,003
Interest income               1,374    1,396    2,034
Interest expense               (115)     (85)     (93)
Income before taxes on
 Income                      43,409   40,041   36,725
Taxes on income              14,759   13,814   12,762
Net income                 $ 28,650 $ 26,227 $ 23,963
Basic earnings per share   $   1.25 $   1.09 $    .91
Diluted earnings per share $   1.18 $   1.03 $    .87
Shares used in computing
 earnings per share:
	Basic                   22,978   24,103   26,224
	Diluted                 24,316   25,440   27,439

See notes to consolidated financial statements.
</TABLE>
26
<PAGE>
 Consolidated Statements of Stockholders' Equity
<TABLE>
                                                           equity adjustments
                                                                      net
                                                         accumulated  unrealized
                                common stock    retained translation  gain on
			                            shares  amount	  earnings adjustments  securities	   total
(Dollars in thousands)
<S>                        <C>        <C>       <C>          <C>        <C>      <C>          
Balance at June 30, 1995   27,427,924 $32,398   $ 70,426     $ 1,047    $    -   $103,871
Common stock issued           513,830   4,255                                       4,255	
Repurchase of common stock (3,202,000) (3,970)   (45,138)                         (49,108)
Equity adjustments                                            (1,013)       236      (777)
Net income                                        23,963                           23,963
Balance at June 30, 1996   24,739,754  32,683     49,251          34        236    82,204
Common stock issued           537,784   5,810                                       5,810
Repurchase of common stock (1,583,478) (2,170)   (28,856)                         (31,026)
Equity adjustments                                            (1,030)     1,978       948
Net income                                        26,227                           26,227
Balance at June 30, 1997   23,694,060  36,323     46,622        (996)     2,214    84,163
Common stock issued           473,310   5,590                                       5,590	
Repurchase of common stock (1,851,460) (2,987)   (43,166)                         (46,153)
Equity adjustments                                            (1,246)      (315)   (1,561)
Net income                                        28,650                           28,650
Balance at June 30, 1998   22,315,910 $38,926   $ 32,106    $ (2,242)   $ 1,899  $ 70,689
</TABLE>

See notes to consolidated financial statements.
27
<PAGE>
Consolidated Statements of Cash Flows
<TABLE>
Years ended June 30                 1998      1997      1996
(In thousands)
<S>                             <C>       <C>       <C> 
Cash and equivalents provided by (used for):
Cash flows from operating activities:
 Net income			                  $ 28,650  $ 26,227  $ 23,963
 Adjustments to reconcile net
  income to net cash provided
  by operating activities:
  Depreciation and amortization    2,543     2,584     2,866
  Deferred taxes                    (811)     (492)   (1,160)	
  Gain on sale of property            -         -     (1,003)
  Changes in assets and liabilities:
   Accounts receivable            (4,062)   (2,417)   (2,937)
   Inventories                      (841)   (1,567)      272
   Prepaid expenses and
    other assets                     (56)      201       (60)
   Accounts payable                1,313       132       763
   Accrued liabilities            (1,100)      467     4,155
   Income taxes payable            1,790     1,413       308
   Accrued product warranty          456       438       492
Net cash provided by operating
 Activities                       27,882    26,986    27,659
Cash flows from investing activities:
 Purchase of temporary cash
  Investments                    (13,500)  (18,852)  (33,601)
 Proceeds from maturities of
  temporary cash investments      15,902    27,151    30,432
 Purchase of property, plant
  and equipment                   (2,502)   (2,622)   (3,008)
 Proceeds from sale of property       -         -      3,812
 Other                                99       (96)      191
Net cash provided by (used for)
 investing activities                 (1)    5,581    (2,174)
Cash flows from financing activities:
 Net change in notes payable
  to banks                            -       (258)   (1,489)
 Sale of common stock              5,590     5,810     4,255
 Repurchase of common stock      (46,153)  (31,026)  (49,108)
 Other                               291        35      (229)
Net cash used for financing
 Activities                      (40,272)  (25,439)  (46,571)
Effect of exchange rate changes
 on cash                             951       510     1,907
Net increase (decrease) in cash
 and equivalents                 (11,440)    7,638   (19,179)
Cash and equivalents, beginning
 of year                          24,624    16,986    36,165
Cash and equivalents, end of
 year                           $ 13,184  $ 24,624  $ 16,986 

See notes to consolidated financial statements.
</TABLE>
Notes to Consolidated Financial Statements
28
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 1: SIGNIFICANT ACCOUNTING POLICIES
Organization. Dionex Corporation  (the "Company") is a leading 
manufacturer and marketer of chromatography systems for chemical 
analysis. The Company's systems are used in environmental 
analysis and by the pharmaceutical, life sciences, chemical, 
petrochemical, power generation and electronics industries in a 
variety of applications.

Principles of Consolidation. The consolidated financial 
statements include the Company and its subsidiaries. 
All significant intercompany transactions and accounts are 
eliminated in consolidation.

Cash Equivalents. Cash equivalents are highly liquid debt 
instruments with a maturity at date of purchase of three months 
or less.

Investments. The Company classifies its debt and equity 
securities as "held to maturity" or "available for sale." 
Securities classified as "held to maturity" are reported at 
amortized cost and "available for sale" securities are reported 
at fair market value, with a corresponding recognition of the 
unrealized gains and losses (net of tax effect) as a separate 
component of stockholders' equity. Temporary cash investments 
consist of short-term debt investments which are classified as 
"held-to-maturity" securities. The Company's investments in 
marketable equity securities have been classified as "available 
for sale" and are included with other noncurrent assets.

Inventories. Inventories are stated at the lower of standard cost 
(which approximates cost on a first-in, first-out basis) or 
market.

Property, Plant and Equipment. Property, plant and equipment are 
stated at cost. Depreciation is computed using the straight-line 
method based on estimated useful lives of 3 to 30 years. 
Leasehold improvements are amortized over the lesser of the 
useful life or the remaining term of the lease.

Revenue Recognition. Revenue related to systems is recognized 
upon shipment. Service contract revenue is deferred and 
recognized on a pro rata basis over the contractual period. 
Installation and product warranty costs are accrued at the time 
revenue is recognized. 

Taxes on Income. The Company accounts for income taxes using the 
asset and liability approach to account for deferred income 
taxes.

Stock-based Compensation Plans. The Company applies Accounting 
Principles Board Opinion (APB) No. 25, "Accounting for Stock 
Issued to Employees" and related interpretations in accounting 
for its stock-based compensation plans (Note 7). Accordingly, no 
accounting recognition is given to stock options granted at fair 
market value until they are exercised. Upon exercise, net 
proceeds, including tax benefits realized, are credited to 
equity.

Stock Split. In June 1998 and December 1995, the Company effected 
two-for-one splits of its common stock. All share and per share 
amounts have been restated to reflect the stock splits for all 
periods presented.

Net Income per Share. In February 1997, the Financial Accounting 
Standards Board issued SFAS No. 128, "Earnings Per Share." The 
Company adopted SFAS No. 128 in the second quarter of fiscal 1998 
and restated earnings per share (EPS) data for prior periods to 
conform with SFAS No. 128.
29
<PAGE>
Basic earnings per share excludes dilution and is computed by 
dividing net income by the weighted average of common shares 
outstanding for the period. Diluted earnings per share reflects 
the potential dilution from securities and other contracts which 
are exercisable or convertible into common stock. Diluted 
earnings per share is computed by dividing net income by the 
weighted average number of common shares that would have been 
outstanding during the period assuming the issuance of common 
shares for all dilutive potential common shares outstanding. The 
difference between the number of shares outstanding for basic and 
diluted earnings per share is due to stock options outstanding 
during the period.

Common Stock Repurchases. The Company repurchases shares in the 
open market under its ongoing stock repurchase program. For each 
share repurchased, the Company reduces the common stock account 
by the average value per share reflected in the account prior to 
the repurchase with the excess allocated to retained earnings. 
The Company currently retires all shares repurchased. 

Translation of Foreign Currency. The Company's foreign operations 
are measured using local currencies as the functional currency. 
Assets and liabilities are translated into U.S. dollars at year-
end rates of exchange, and results of operations are translated 
at average rates for the year.

The Company enters into foreign exchange forward contracts with 
high quality financial institutions to manage its exposure to the 
impact of fluctuations in foreign currency exchange rates on its 
intercompany receivable balances. Gains and losses on these 
contracts are recorded in net income currently. These contracts 
generally have maturities of approximately 30 days and require 
the Company to exchange foreign currencies for U.S. dollars at 
maturity. The Company does not engage in foreign currency 
speculation. The Company's foreign exchange forward hedging 
activities do not subject the Company to significant risk due to 
exchange rate movements because gains and losses on these 
contracts generally offset losses and gains on the underlying 
items being hedged.

At June 30, 1998, the Company had forward exchange contracts to 
sell foreign currencies totaling $9.9 million dollars, including 
approximately $5.0 million of Japanese yen, $960,000 of Italian 
lire, $780,000 of French francs and the remainder in German 
deutschemarks, Swiss francs, Dutch gilders, British pounds, 
Belgian francs, Austrian shillings and Canadian dollars. At June 
30, 1998 and 1997, the aggregate unrealized gains or losses on 
the forward exchange contracts were not material.

New Accounting Pronouncements. In June, 1997, the Financial 
Accounting Standards Board issued Statement of Financial 
Accounting Standards (SFAS) No. 130, "Reporting Comprehensive 
Income," and SFAS No. 131, "Disclosures about Segments of an 
Enterprise and Related Information." The adoption of both 
standards is required for fiscal years beginning after December 
15, 1997. Under SFAS 130, the Company is required to report 
comprehensive income in the financial statements, in addition to 
net income. For the Company, the primary differences between net 
income and comprehensive income will be from foreign currency 
translation adjustments and net unrealized gains or losses on 
securities available for sale. SFAS 131 requires that the Company 
report separately, in the financial statements, certain financial 
and descriptive information about operating segments. It also 
establishes standards for related disclosures about products and 
services, geographic areas and major customers. Adoption of SFAS 
130 and 131 will not impact the Company's consolidated financial 
position, results of operations or cash flows.

Certain Risks and Uncertainties. The preparation of financial 
statements in conformity with generally accepted accounting 
principles requires management to make estimates and assumptions 
that affect the reported amounts of assets and liabilities and 
disclosure of contingent assets and liabilities at the date of 
the financial statements and the reported amounts of revenues and 
expenses during the reporting period. Actual results could differ 
from those estimates.
30
<PAGE>
Financial instruments which potentially subject the Company to 
concentrations of credit risk consist principally of investments 
and trade receivables. The Company invests in high-grade 
instruments which it places for safekeeping with high quality 
financial institutions. The Company sells its products primarily 
to large organizations in diversified industries worldwide. 
Credit risk is further mitigated by the Company's credit 
evaluation process and the reasonably short collection terms. The 
Company does not require collateral or other security to support 
accounts receivable. While the Company does maintain allowances 
for potential credit losses, actual bad debt losses have not been 
significant.

The Company is subject to certain risks and uncertainties and 
believes that changes in any of the following areas could have a 
material adverse affect on the Company's future financial 
position or results of operations: general economic conditions; 
foreign currency fluctuations; new product development, including 
market receptiveness; competition from other products; worldwide 
demand for analytical instrumentation; existing product 
obsolescence; the ability to manufacture products on an efficient 
and timely basis and at reasonable cost and in sufficient volume; 
the ability to attract and retain talented employees and other 
risks as detailed from time to time in the Company's filings with 
the Securities and Exchange Commission.

Note 2: INVESTMENTS
The carrying value and fair market value of temporary cash 
investments at June 30 classified as "held to maturity" are 
as follows:
                                            gross
                                       unrealized       fair  
                              amortized     gains     market	
                                   cost   (losses)     value
(In thousands)
1998:
 U.S. corporate debt securities  $1,000      $ -      $1,000
 Obligations of state and
  political subdivisions          4,850        -       4,850
                                 $5,850      $ -      $5,850
1997:
 U.S. corporate debt securities  $7,000      $ -      $7,000
 Municipal auction rate
  preferred stock                 1,252        2       1,254
                                 $8,252     $  2      $8,254

All maturities during fiscal 1998 were held-to-maturity 
investments. There were no sales of securities for the years 
ended June 30, 1998, 1997 and 1996. All temporary cash 
investments at June 30, 1998 mature within one year.

In December 1989, the Company invested $3.0 million in the stock 
of Molecular Devices Corporation (MDC).The Company's President 
and a director serve on the Board of Directors of MDC. The 
Company's ownership interest in MDC is approximately 4% has been 
classified as "available for sale" and is included with other 
noncurrent assets. At June 30, 1998 and 1997, the fair value of 
this investment was $6,162,000 and $6,688,000, respectively.
31
<PAGE>
Note 3: INVENTORIES
Inventories at June 30 consist of:	
                                    1998        1997
(In thousands)
Finished goods                    $3,459      $3,720
Work in process                    3,548       2,584
Raw materials and subassemblies    2,914       3,175
                                  $9,921      $9,479

Note 4: PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment at June 30 consist of:	
                                       1998        1997
(In thousands)
Land                               $ 13,337    $ 13,352
Buildings and improvements           16,581      16,652
Machinery, equipment and tooling     12,123      10,843
Furniture and fixtures                4,719       4,661
                                     46,760      45,508
Accumulated depreciation and
 Amortization                       (16,690)    (15,283)
Property, plant and equipment, net $ 30,070    $ 30,225



Note 5: FINANCING ARRANGEMENTS
The Company has unsecured lines of credit with various domestic 
and foreign banks totaling approximately $14.1 million which have 
been used primarily to minimize the Company's exposure to foreign 
currency fluctuations. These lines of credit expire between 
December 31, 1998 and January 31, 2000. Borrowings in each 
country bear interest at the local reference rates which ranged 
from 1.5% to 9.25% at June 30, 1998. At June 30, 1998, the 
Company had no borrowings outstanding on these lines.

Such line of credit agreements impose certain financial 
restrictions relating to cash dividends, working capital and 
tangible net worth. At June 30, 1998, the Company was in 
compliance with such covenants.

One of the Company's foreign subsidiaries discounts trade notes 
receivable with a bank. Total notes receivable discounted were 
approximately $6,400,000 in fiscal 1998 and $6,700,000 in fiscal 
1997. The uncollected balances of notes receivable due the 
discounting bank at June 30, 1998 and 1997 were approximately 
$1,800,000 and $2,500,000, respectively. The Company is 
contingently liable for these unpaid balances.

Total interest paid was $115,000 in 1998, $86,000 in 1997 and 
$95,000 in 1996.
32
<PAGE>
Note 6: ACCRUED LIABILITIES
Accrued liabilities at June 30 consist of:	
                                        1998       1997
(In thousands)
Accrued payroll and related expenses $ 7,923    $ 7,520
Deferred revenues                      3,377      3,264
Accrued stock repurchases                 -       1,945
Other accrued liabilities              6,094      5,910
                                     $17,394    $18,639

Note 7: STOCK OPTION AND PURCHASE PLANS
Stock Option Plans. The Company has two stock option plans (the 
"Option Plans") under which incentive and nonqualified options 
may be granted. Options are granted at the stock's fair market 
value at the grant date. Options generally become exercisable in 
25% increments each year beginning one year from the date of 
grant and expire five or ten years from the grant date.
Activity under the Option Plans for the three-year period ended 
June 30, 1998 is summarized below.
<TABLE>
 
                          1998                1997                1996
                            wtd. avg.           wtd. avg.           wtd. avg.
                             exercise            exercise            exercise
                     shares     price     shares    price     shares    price
<S>                <C>         <C>     <C>         <C>     <C>         <C>    
Options outstanding, 
 beginning of year 3,050,176   $ 9.60  2,893,288   $ 7.42  3,382,868   $ 7.29
Granted              605,100    24.28    728,400    16.37     37,000    13.57
Exercised           (418,072)    5.91   (477,112)    6.38   (429,230)    6.51
Canceled             (34,504)   13.17    (94,400)   11.46    (97,350)    9.23
Options outstanding,
 end of year       3,202,700   $12.82  3,050,176   $ 9.60  2,893,288   $ 7.42
Options exercisable
 at year-end       1,899,100   $ 8.41  1,781,676   $ 6.87  1,860,288   $ 6.24
Weighted average fair
 value of options granted
 during the year               $ 9.37              $ 8.19              $ 6.60
</TABLE>
33
<PAGE>
Additional information regarding options outstanding as of June 
30, 1998 is as follows:
<TABLE>
      
                  options outstanding                    options exercisable
                               weighted 
                                average    weighted                 
                              remaining     average                     weighted
       range of      number contractual    exercise        number        average    
exercise prices outstanding   life (yrs)	     price   exercisable exercise price
<C>             <C>         <C>            <C>          <C>       <C>        
   $ 4.38- 8.19   1,262,174        4.01      $ 6.65     1,262,174         $ 6.65
     8.34-16.31   1,324,426        7.60       13.40       634,926          11.88
    19.75-28.50     616,100        9.54       24.20         2,000          19.75
   $ 4.38-28.50   3,202,700        6.56      $12.82     1,899,100         $ 8.41
</TABLE>
At June 30, 1998, 1,796,758 shares were available for future 
grants under the Option Plans.

Employee Stock Purchase Plan. Under the Company's Employee Stock 
Purchase Plan, (the Purchase Plan), eligible employees are 
permitted to have salary withholdings to purchase shares of 
common stock at a price equal to 85% of the lower of the market 
value of the stock at the beginning or end of each six-month 
offer period, subject to an annual limitation. Stock issued under 
the plan was 55,238, 60,672 and 84,600 shares in 1998, 1997 and 
1996 at weighted average prices of $18.42, $14.77 and $9.31, 
respectively. The weighted average fair value of the 1998, 1997 
and 1996 awards was $5.41, $5.78 and $5.34, respectively. At June 
30, 1998, 1,297,754 shares were reserved for future issuances 
under the Purchase Plan.

Pro Forma Stock-based Compensation Expense. SFAS No. 123 sets 
forth a fair-value based method of recognizing stock-based 
compensation expense. As permitted by SFAS No. 123, the Company 
has elected to continue to apply APB No. 25 to account for its 
stock-based compensation plans. Had compensation costs for awards 
in 1998, 1997 and 1996 under the Company's stock-based 
compensation plans been determined based on the fair value at the 
grant dates consistent with the method set forth under SFAS No. 
123, the effect on the Company's net income and earnings per 
share would have been as follows:


                              1998       1997       1996
(In thousands, except per share amounts)
Net income:
  As reported              $28,650    $26,227    $23,963	
  Pro forma                 26,860     24,945     23,676		
Basic earnings per share:
  As reported              $  1.25    $  1.09    $   .91	
  Pro forma                   1.18       1.04        .90
Diluted earnings per share	
  As reported              $  1.18    $  1.03    $   .87
  Pro forma                   1.11        .99        .86	

Because the method prescribed by SFAS No. 123 has not been 
applied to options granted prior to July 1, 1995, 
the resulting pro forma compensation expense may not be 
representative of the amount to be expected in future years. Pro 
forma compensation expense for options granted is reflected over 
the vesting period; therefore, future pro forma compensation 
expense may be greater as additional options are granted.
34
<PAGE>
The fair value of each option grant was estimated on the grant 
date using the Black-Scholes option-pricing model with the 
following weighted-average assumptions:
                             1998      1997      1996
Volatility                     30%       45%       45%
Risk-free interest rate      5.67%     6.02%     5.36%
Expected life of options 5.5 years 5.5 years 5.5 years	

The Black-Scholes option-pricing model was developed for use in 
estimating the fair value of traded options which have no vesting 
restrictions and are fully transferable. In addition, option-
pricing models require the input of highly subjective 
assumptions, including expected stock price volatility. Because 
the Company's employee stock options have characteristics 
significantly different from those of traded options, and because 
changes in the subjective input assumptions can materially affect 
the fair value estimate, in management's opinion, the existing 
models do not necessarily provide a reliable single measure of 
the fair value of its employee stock options.

Note 8: EMPLOYEE BENEFIT PLANS
The Company has an employee profit sharing plan covering most 
North American employees. Cash distributions are determined by 
the Board of Directors and were $2,757,000 for 1998, $2,609,000 
for 1997 and $2,534,000 for 1996.

The Company has a 401(k) tax deferred savings plan covering most 
U.S. employees. Participants may contribute up to 10% of their 
compensation and the Company makes matching contributions 
($988,000 in 1998, $918,000 in 1997 and $874,000 in 1996) limited 
to 5% of each participant's compensation. Matching contributions 
vest in 25% increments each year beginning two years after the 
participant's date of employment.

Note 9: TAXES ON INCOME
The provision for taxes on income consists of:		
Years ended June 30      1998      1997      1996
(In thousands)
Current:
 Federal              $10,747   $ 9,477   $ 9,286
 State                  1,925     2,034     2,030
 Foreign                2,898     2,795     2,606
  Total current        15,570    14,306    13,922
Deferred:
 Federal                 (836)     (407)     (971)
 State                    (52)      (23)     (130)
 Foreign                   77       (62)      (59)
  Total deferred         (811)     (492)   (1,160)
                      $14,759   $13,814   $12,762
35
<PAGE>
Domestic and foreign income before taxes on income is as follows:
		
Years ended June 30      1998      1997      1996
(In thousands)
Domestic              $36,407   $34,006   $30,871	
Foreign                 7,002     6,035     5,854
                      $43,409   $40,041   $36,725

Deferred income taxes reflect the net tax effects of temporary 
differences between the carrying amounts of assets and 
liabilities for financial reporting purposes and the amounts used 
for income tax purposes. The components of the current and 
noncurrent deferred tax assets and liabilities are as follows:

Yyears ended June 30               1998      1997
(In thousands)
Current deferred tax assets:
 Accounting accruals deductible
  in different periods for tax
  purposes                       $7,407    $6,520
 State income tax                   413       468
 Other                              145       148
  Total deferred tax assets       7,965     7,136
Noncurrent deferred tax liabilities:
 Accelerated depreciation           890       872
 Net unrealized gain on available
  for sale securities             1,267     1,477
 Other                               73        73
  Total deferred tax liabilities  2,230     2,422
Net deferred tax assets          $5,735    $4,714

Total income tax expense differs from the amount computed by 
applying the statutory Federal income tax rate to income before 
taxes as follows:
Years ended June 30                 1998      1997      1996
Statutory Federal income tax rate   35.0%     35.0%     35.0%
State income taxes, net of Federal
 income tax effect                   2.9       3.3       3.6
FSC income not taxed                (3.1)     (3.5)     (3.7)
Foreign taxes at differing rates     1.1       1.5       1.2
Other                               (1.9)     (1.8)     (1.3)
                                    34.0%     34.5%     34.8%

Income taxes paid were $11,706,000 in 1998, $11,003,000 in 1997 
and $13,380,000 in 1996.

The Company has not provided for Federal income taxes on 
approximately $20.0 million of undistributed earnings of foreign 
subsidiaries, which have been permanently reinvested in 
subsidiary operations. If these earnings were distributed to the 
parent company, foreign tax credits available under current law 
would substantially eliminate the resulting Federal income tax 
liability.
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Note 10: COMMITMENTS
Certain facilities and equipment are leased under noncancelable 
operating leases. The Company generally pays taxes, insurance and 
maintenance costs on leased facilities and equipment. Minimum 
annual rental commitments under these noncancelable operating 
leases are $1,818,000 for 1999, $1,211,000 for 2000, $992,000 for 
2001, $602,000 for 2002, $395,000 for 2003 and $1,241,000 
thereafter.

Total rental expense for all operating leases was $2,940,000 in 
1998, $2,855,000 in 1997 and $2,763,000 in 1996.

Note 11: BUSINESS SEGMENT INFORMATION
The Company develops, manufactures, markets and services 
analytical instrumentation and related accessories in its one 
industry segment.

The Company's products are manufactured in the United States and 
are sold worldwide. The Company markets and 
distributes internationally through both exports and foreign-
based sales operations.

The following table presents a summary of operations by 
geographic region. Research and development and general 
corporate expenses are reflected in operating income from North 
American operations.
                                  1998      1997      1996
(In thousands)
Net sales to unaffiliated customers:
 North America                $ 80,145  $ 73,456  $ 67,033
 Europe                         46,907    45,165    44,332
 Far East                       23,461    23,432    21,639
 Consolidated net sales to
  unaffiliated customers      $150,513  $142,053  $133,004
Operating income:
 North America                $ 35,687  $ 33,010  $ 28,873
 Europe                          4,222     3,993     4,111
 Far East                        2,401     2,126     1,617
 Eliminations                     (160)     (399)     (820)
 Consolidated operating income$ 42,150  $ 38,730  $ 33,781
Identifiable assets:
 North America                $ 71,837  $ 70,542  $ 62,543
 Europe                         20,237    19,160    20,088
 Far East                       12,244    12,100    12,169
 General corporate assets
  (cash investments)            11,214    24,838    26,795
 Eliminations                   (8,273)   (8,477)   (8,409)
 Consolidated assets          $107,259  $118,163  $113,186
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Interarea transfers, which have been eliminated in consolidation 
and are not included in the above table, represent transfers from 
domestic operations to international subsidiaries and are based 
on prices that approximate selling prices to foreign 
distributors. Interarea transfers from the United States to 
international subsidiaries were $41,846,000, $40,075,000 and 
$38,457,000 in 1998, 1997 and 1996, respectively. North American 
sales to unaffiliated customers include export sales of 
$15,679,000, $17,459,000 and $14,753,000, respectively, for 1998, 
1997 and 1996.

Note 12: OTHER INCOME
During the third quarter of fiscal 1996, the Company sold a 
parcel of undeveloped land. The Company received proceeds of $3.9 
million, net of selling expenses, from the sale. The proceeds 
consisted of cash and the assumption by the buyer of an 
industrial revenue bond associated with the property. The Company 
recorded a pretax gain of $1.0 million on the sale of the 
property.

Note 13: QUARTERLY RESULTS OF OPERATIONS (unaudited)
The following is a summary of the unaudited quarterly results of 
operations for the years ended June 30, 1998 and 1997.	
                                       Quarter
                         First     Second      Third     Fourth
(In thousands, except per share amounts)
Fiscal 1998:
 Net sales             $33,933    $39,420    $38,404    $38,756
 Gross profit           23,166     27,067     26,270     26,620	
 Net income              5,809      7,776      7,518      7,547
 Basic earnings per
  Share                $   .25    $   .34    $   .33    $   .33
 Diluted earnings per
  Share                $   .23    $   .32    $   .31    $   .32
Fiscal 1997:
 Net sales             $31,508    $36,600    $36,646    $37,299
 Gross profit           21,854     25,516     25,602     25,623	
 Net income              5,201      6,848      7,016      7,162
 Basic earnings per
  Share                $   .21    $   .28    $   .30    $   .30
 Diluted earnings per
  Share                $   .20    $   .27    $   .28    $   .28

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Independent Auditors' Report


The Board of Directors and Stockholders, Dionex Corporation:
We have audited the accompanying consolidated balance sheets of 
Dionex Corporation and its subsidiaries as of June 30, 1998 and 
1997, and the related consolidated statements of income, 
stockholders' equity and cash flows for each of the three years 
in the period ended June 30, 1998. These financial statements are 
the responsibility of the Company's management. Our 
responsibility is to express an opinion on these financial 
statements based on our audits.

We conducted our audits in accordance with generally accepted 
auditing standards. Those standards require that we plan and 
perform the audit to obtain reasonable assurance about whether 
the financial statements are free of material misstatement. An 
audit includes examining, on a test basis, evidence supporting 
the amounts and disclosures in the financial statements. An audit 
also includes assessing the accounting principles used and 
significant estimates made by management, as well as evaluating 
the overall financial statement presentation. We believe that our 
audits provide a reasonable basis for our opinion.

In our opinion, such consolidated financial statements present 
fairly, in all material respects, the financial position of 
Dionex Corporation and its subsidiaries at June 30, 1998 and 
1997, and the results of their operations and their cash flows 
for each of the three years in the period ended June 30, 1998 in 
conformity with generally accepted accounting principles.


DELOITTE & TOUCHE LLP

San Jose, California
July 20, 1998
39
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Supplemental Stockholder Information

Market Price of Common Stock
The Company's common stock is traded in the over-the-counter 
market through the Nasdaq national market system under the symbol 
DNEX. The following table sets forth, for the periods indicated, 
the high and low sales prices as reported by Nasdaq.
                Fiscal 1998          Fiscal 1997
Quarter       high        low       high       low
First     $27 1/4    $22 5/16   $19 1/2    $15 5/8
Second     27 1/2     22 1/4     20 3/16    15 3/4
Third      30         23 7/8     23 3/4     17 3/8
Fourth     28 5/16    23 3/8     27 3/8     22 1/4

As of June 30, 1998 there were 1,577 holders of record of the 
Company's common stock as shown on the records 
of its transfer agent.

Dividends
The Company has paid no cash dividends on its common stock and 
anticipates that for the foreseeable future it will continue to 
retain its earnings for use in its business.

Transfer Agent and Registrar
Boston EquiServe 
P.O. Box 644
Boston, Massachusetts  02102-0644

Annual Meeting
The Annual Meeting of Stockholders of Dionex Corporation will be 
held at 501 Mercury Drive, Sunnyvale, California on Thursday, 
October 22, 1998 at 9 a.m.

Form 10-K
The Company's annual report to the Securities and Exchange 
Commission on Form 10-K may be obtained without charge by writing 
to:
Investor Relations
Dionex Corporation
1228 Titan Way
P.O. Box 3603
Sunnyvale, California  94088-3603