SELECTED FINANCIAL INFORMATION

Years ended June 30            1999     1998     1997     1996     1995
(in thousands, except per share amounts)

Operating information
Net sales                  $172,940 $150,513 $142,053 $133,004 $120,024
Cost of sales                55,216   47,390   43,458   41,406   38,428
Revaluation of acquired
 inventory                    1,952       -        -        -        -
Gross profit                115,772  103,123   98,595   91,598   81,596
Operating expenses:
 Selling, general
  and administrative         53,974   47,689   47,344   46,290   43,401
 Research and
  product development        14,812   13,284   12,521   11,527   10,500
 Write-off of goodwill           -        -        -        -     2,168
 Write-off of in-process research
  and development             4,991       -        -        -        -
  Total operating expenses   73,777   60,973   59,865   57,817   56,069
Operating income             41,995   42,150   38,730   33,781   25,527
Other income                     -       -         -     1,003    4,130
Interest income                 917    1,374    1,396    2,034    2,202
Interest expense               (301)    (115)     (85)     (93)    (153)
Income before
 taxes on income             42,611   43,409   40,041   36,725   31,706
Taxes on income              14,137   14,759   13,814   12,762   11,932
Net income                 $ 28,474 $ 28,650 $ 26,227 $ 23,963 $ 19,774
Basic earnings per share   $   1.28 $   1.25 $   1.09 $    .91 $    .69
Diluted earnings per share $   1.20 $   1.18 $   1.03 $    .87 $    .67
Shares used in computing per share amounts:
 Basic                       22,287   22,978   24,103   26,224   28,723
 Diluted                     23,640   24,316   25,440   27,439   29,456

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
5,1998. The Company has paid no cash dividends.

At June 30                     1999     1998     1997     1996     1995
(in thousands)
Balance sheet information
Working capital            $ 34,755 $ 35,745 $ 48,215 $ 47,888 $ 67,249
Total assets                146,674  107,259  118,163  113,186  131,780
Long-term debt                  990       -        -        -        86
Stockholders' equity         95,738   70,689   84,163   82,204  103,871


<PAGE>
CONSOLIDATED BALANCE SHEETS

At June 30	                             1999        1998
(in thousands, except share and per share amounts)
Assets
Current assets:
 Cash and equivalents (including
  invested cash of $5,987 in 1999
  and $5,364 in 1998)               $ 11,336    $ 13,184
 Temporary cash investments               -        5,850
 Accounts receivable (net of
  allowance for doubtful 	accounts
  of $812 in 1999 and $606 in 1998)   39,996      31,350
 Inventories                          12,702       9,921
 Deferred taxes                       10,361       7,965
 Prepaid expenses and other            1,800       1,089
   Total current assets               76,195      69,359
Property, plant and equipment, net    39,306      30,070
Intangible assets                      9,924          -
Marketable equity securities          14,452       6,167
Other assets                           6,797       1,663
                                    $146,674    $107,259
Liabilities and stockholders' equity
Current liabilities:
 Notes payable to banks             $    796    $     -
 Accounts payable                      6,049       5,681
 Accrued liabilities                  21,361      17,394
 Income taxes payable                  8,533       6,526
 Accrued product warranty              4,701       4,013
   Total current liabilities          41,440      33,614
Deferred taxes and other               8,506       2,956
Long-term debt                           990          -
Commitments (Note 11)
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: 22,314,442 in 1999
  and 22,315,910 in 1998)             46,445      38,926
 Retained earnings                    46,677      32,106
 Accumulated other comprehensive
  income (loss)                        2,616        (343)
   Total stockholders' equity         95,738      70,689
                                    $146,674    $107,259

See notes to consolidated financial statements.


<PAGE>
CONSOLIDATED STATEMENTS OF INCOME

Years ended June 30                  1999     1998     1997
(in thousands, except per share amounts)
Net sales                        $172,940 $150,510 $142,053
Cost of sales                      55,216   47,390   43,458
Revaluation of acquired inventory   1,952       -       -
Gross profit                      115,772  103,123   98,595
Operating expenses:
 Selling, general and
  Administrative                   53,974   47,689   47,344
 Research and product development  14,812   13,284   12,521
 Write-off of in-process research
  and development                   4,991       -       -
  Total operating expenses         73,777   60,973   59,865
Operating income                   41,995   42,150   38,730
Interest income                       917    1,374    1,396
Interest expense                     (301)    (115)     (85)
Income before taxes on income      42,611   43,409   40,041
Taxes on income                    14,137   14,759   13,814
Net income	                      $ 28,474 $ 28,650 $ 26,227
Basic earnings per share         $   1.28 $   1.25 $   1.09
Diluted earnings per share       $   1.20 $   1.18 $   1.03
Shares used in computing earnings per share:
 Basic                             22,287   22,978   24,103
 Diluted                           23,640   24,316   25,440

See notes to consolidated financial statements.


<PAGE>
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
<TABLE>
                                                                           Other
                                                                         Compre-
                              common stock  retained Comprehensive        ensive
                             shares  amount earnings income (loss)  total income
(dollars in thousands)
<S>                      <C>        <C>     <C>           <C>     <C>    <C>
Balance at June 30, 1996 24,739,754 $32,683 $ 49,251      $   270 $82,204
Comprehensive income,
 net of tax:
 Net income                                   26,227               26,227$26,227
 Foreign currency
  translation adjustments                                  (1,030) (1,030)(1,030)
 Unrealized gain
  on securities                                             1,978   1,978  1,978
 Comprehensive income                         26,227          948        $27,175
Common stock issued under
 employee benefit plans     537,784   5,810                         5,810
Repurchase of common
 stock	                  (1,583,478) (2,170) (28,856)             (31,026)
Balance at June 30, 1997 23,694,060  36,323   46,622        1,218  84,163
Comprehensive income,
 net of tax:
 Net income                                   28,650               28,650$28,650
 Foreign currency
  translation adjustments                                  (1,246) (1,246)(1,246)
 Unrealized loss
  on securities                                              (315)   (315)  (315)
Comprehensive income                          28,650       (1,561)       $27,089
Common stock issued under
 employee benefit plans     473,310   5,590                         5,590
Repurchase of common
 Stock                   (1,851,460) (2,987) (43,166)             (46,153)
Balance at June 30, 1998 22,315,910  38,926   32,106         (343) 70,689
Comprehensive income,
 net of tax:
 Net income	                                  28,474               28,474$28,474
 Foreign currency
  translation adjustments                                  (1,938) (1,938)(1,938)
 Unrealized gain
  on securities                                             4,897   4,897  4,897
Comprehensive income                          28,474        2,959        $31,433
Common stock issued under
 employee benefit plans     436,941   7,082                         7,082
Common stock issued for
 acquisition	                63,091   1,388                         1,388
Repurchase of common
 stock                     (501,500)   (951) (13,903)             (14,854)
Balance at June 30, 1999 22,314,442 $46,445 $ 46,677     $ 2,616  $95,738

See notes to consolidated financial statements.

</TABLE>
<PAGE>
CONSOLIDATED STATEMENTS OF CASH FLOWS

Years ended June 30                  1999     1998     1997
(in thousands)
Cash and equivalents provided by (used for):
Cash flows from operating activities:
 Net income                      $ 28,474 $ 28,650 $ 26,227
 Adjustments to reconcile net
  income to net cash provided
  by operating activities:
  Write-off of in-process research
   and development                  4,991       -       -
  Depreciation and amortization     3,731    2,543    2,584
  Deferred taxes                   (2,434)    (811)    (492)
  Changes in assets and liabilities:
   Accounts receivable             (5,945)  (4,062)  (2,417)
   Inventories                        907     (841)  (1,567)
   Prepaid expenses and other
    Assets                         (3,851)     (56)     201
   Accounts payable                  (210)   1,313      132
   Accrued liabilities              2,900   (1,100)     467
   Income taxes payable             1,996    1,790    1,413
   Accrued product warranty           565      456      438
Net cash provided by
     operating activities          31,124   27,882   26,986
Cash flows from investing activities:
 Purchase of temporary cash
  Investments                      (3,500) (13,500) (18,852)
 Proceeds from maturities of
  temporary cash investments        9,350   15,902   27,151
 Purchase of property, plant
  and equipment                    (7,460)  (2,502)  (2,622)
 Acquisition, net of cash acquired(22,906)      -       -
 Other                                 61       99      (96)
Net cash provided by (used for)
 investing activities             (24,455)      (1)   5,581
Cash flows from financing activities:
 Net change in notes payable
  to banks                             19       -      (258)
 Sale of common stock               7,082    5,590    5,810
 Repurchase of common stock       (14,854) (46,153) (31,026)
 Other                               (405)     291       35
Net cash used for financing
 Activities                        (8,158) (40,272) (25,439)
Effect of exchange rate changes
 on cash                             (359)     951      510
Net increase (decrease) in cash
 and equivalents                   (1,848) (11,440)   7,638
Cash and equivalents, beginning
 of year                           13,184   24,624   16,986
Cash and equivalents, end of year$ 11,336 $ 13,184 $ 24,624

Noncash investing activities:
Common stock issued in connection with acquisition
 of Softron GmbH                 $  1,388 $     -	 $     -

See notes to consolidated financial statements.


<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.

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.

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 effect 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; year 2000 compliance issues; the ability to attract
and retain talented employees and other risks as detailed
from time to time in the Company's ?lings with the
Securities and Exchange Commission.

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."

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.

PURCHASED TECHNOLOGY AND GOODWILL. Purchased technology
amounts are recorded at their fair market value as of the
date of acquisition and amortized over their estimated
useful lives of up to seven years. Goodwill is amortized on
a straight-line basis over its useful life of 20 years.
Accumulated amortization on purchased technology amounts and
goodwill totaled $655,000 at June 30, 1999.

VALUATION OF LONG-LIVED ASSETS. The carrying value of the
Company's long-lived assets is reviewed for impairment
whenever events or changes in circumstances indicate that an
asset may not be recoverable. The Company looks to current
and future profitability, as well as current and future
undiscounted cash flows, as primary indicators of
recoverability. If impairment is determined to exist, any
related impairment loss is calculated based on fair value.

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 8). 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.
earnings per share. Basic earnings per share is computed
based upon the weighted average number of shares of common
stock outstanding and the net income attributable to common
shareholders. Diluted earnings per share is computed by
dividing net income by the weighted average number of common
shares for all dilutive potential common shares outstanding.
Shares used in the calculation of diluted earnings per share
during fiscal 1999, 1998 and 1997 include 1,353,000,
1,338,000 and 1,337,000, respectively, of common equivalent
shares related to stock options.

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, 1999, the Company had forward exchange contracts
to sell foreign currencies totaling $16.1 million dollars,
including approximately $8.9 million in Japanese yen, $5.3
million in Euros, $1 million in British pounds and the
remainder in Swiss francs and Canadian dollars. At June 30,
1999 and 1998, the aggregate unrealized gains or losses on
the forward exchange contracts were not material.

COMPREHENSIVE INCOME. 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 are
foreign currency translation adjustments and net unrealized
gains or losses on securities available for sale.

BUSINESS SEGMENTS. For the fiscal year ended June 30, 1999,
the Company adopted SFAS 131, "Disclosures about Segments
of an Enterprise and Related Information." See Note 12 for
the related disclosure for this Standard.

NEW ACCOUNTING PRONOUNCEMENTS. In June 1998, the Financial
Accounting Standards Board issued SFAS No. 133, "Accounting
for Derivative Instruments and Hedging Activities," which
is currently effective for Dionex in the first quarter of
fiscal year 2001. Earlier application is permitted. The
statement establishes accounting and reporting standards for
derivative instruments, including certain derivative
instruments embedded in other contracts and for hedging
activities. It requires that an entity recognize all
derivatives as either assets or liabilities in the statement
of financial position and measure those instruments at fair
value. Management does not believe that this standard will
have a material impact on the Company's results of
operations or financial position.

Note 2:  BUSINESS COMBINATION

On October 20, 1998, the Company, through a wholly owned
subsidiary, purchased all of the issued and outstanding
shares of Softron GmbH, a limited liability company
organized under the laws of Germany (Softron), for total
consideration, including acquisition costs, of approximately
$24.7 million comprised of $23.3 million in cash and 63,091
shares of Dionex common stock.

The acquisition of Softron was accounted for by the purchase
method and its results of operations have been included in
the Company's results of operations since the date of
acquisition.

The final purchase price allocation among the tangible and
intangible assets and liabilities acquired (including
acquired in-process research and development) is summarized
as follows: developed and core technology, $4.4 million;
assembled workforce, $830,000; goodwill, $6.9 million; in-
process research and development, $5.0 million and net
tangible assets of $7.6 million.

In connection with the acquisition the Company recorded a
nonrecurring charge of $5.0 million for the write-off of in-
process research and development acquired. In addition, cost
of sales in fiscal 1999 included $2.0 million related to the
sale of inventory acquired which had been revalued as part
of the purchase accounting.

The write-off of in-process research and development related
to three projects that were in development, had not reached
technological feasibility, had no alternative future use and
for which successful development was uncertain.

The following unaudited pro forma results of operations for
the years ended June 30, 1999 and 1998 give effect to the
acquisition as if it had occurred at the beginning of fiscal
1998. The pro forma results of operations exclude the $7.0
million nonrecurring pre-tax charges that were recorded in
conjunction with the acquisition.

Years ended June 30                      1999      1998
(in thousands, except per share amounts)
Net sales                            $176,716  $160,760
Income from continuing operations    $ 48,686  $ 43,077
Net income                           $ 32,516  $ 28,431
Basic earnings per share             $   1.45  $   1.23
Diluted earnings per share           $   1.37  $   1.17

Softron, which markets its products primarily in Europe,
specializes in high performance liquid chromatography
systems used by scientific, pharmaceutical and industrial
laboratories to analyze the chemical components of
compounds.

Note 3:  INVESTMENTS

The carrying value and fair market value of temporary cash
investments at June 30, 1998 classified as "held to
maturity" are as follows:
                                           gross
                                      unrealized     fair
                             amortized     gains   market
                                  cost   (losses)   value
(in thousands)
U.S. corporate debt securities  $1,000      $ -   $1,000
Obligations of state and
 political subdivisions          4,850        -    4,850
                                $5,850      $ -   $5,850
The Company had no temporary cash investments at June 30,
1999.

All maturities during fiscal 1999 were held-to-maturity
investments. There were no sales of securities for the years
ended June 30, 1999, 1998 and 1997.

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% and has been classified as "available for
sale" and is included in marketable equity securities. At
June 30, 1999 and 1998, the fair value of this investment
was $14,331,000 and $6,162,000, respectively.

Note 4:  INVENTORIES

Inventories at June 30 consist of:
                                  1999     1998
(in thousands)
Finished goods                 $ 5,035   $3,459
Work in process                  2,426    3,548
Raw materials and subassemblies  5,241    2,914
                               $12,702   $9,921

Note 5:  PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment at June 30 consist of:
                                           1999     1998
(in thousands)
Land                                   $ 19,220 $ 13,337
Buildings and improvements               18,394   16,581
Machinery, equipment and tooling         15,426   12,123
Furniture and fixtures                    4,953    4,719
                                         57,993   46,760
Accumulated depreciation and
 Amortization                           (18,687) (16,690)
Property, plant and equipment, net     $ 39,306 $ 30,070

Note 6:  FINANCING ARRANGEMENTS
The Company has unsecured lines of credit with various
domestic and foreign banks totaling approximately $35.5
million which have been used primarily to minimize the
Company's exposure to foreign currency fluctuations and to
fund the Softron acquisition (Note 2). These lines of credit
expire between December 31, 1999 and December 31, 2000.
Borrowings in each country bear interest at the local
reference rates which ranged from 1.0% to 8.5% at June 30,
1999. At June 30, 1999, the Company had $579,000 outstanding
under these lines.

Such line of credit agreements impose certain financial
restrictions relating to cash dividends, working capital and
tangible net worth. At June 30, 1999, the Company was in
compliance with such covenants.

At June 30, 1999, the Company had a foreign denominated
mortgage note payable totaling $1.2 million, bearing
interest at a rate of 5.75%. Principal payments are due in
semi-annual payments of $99,000 until June 30, 2005 with the
current portion totaling $198,000.

One of the Company's foreign subsidiaries discounts trade
notes receivable with a bank. Total notes receivable
discounted were approximately $11.4 million in fiscal 1999
and $6.4 million in fiscal 1998. The uncollected balances of
notes receivable due the discounting bank at June 30, 1999
and 1998 were approximately $2.9 million and $1.8 million,
respectively. The Company is contingently liable for these
unpaid balances.

Total interest paid was $258,000 in 1999, $115,000 in 1998
and $86,000 in 1997.

Note 7:  ACCRUED LIABILITIES

Accrued liabilities at June 30 consist of:
                                         1999      1998
(in thousands)
Accrued payroll and related expenses  $ 9,525   $ 7,923
Deferred revenues                       3,475     3,377
Accrued stock repurchases               2,262        -
Other accrued liabilities               6,099     6,094
                                      $21,361   $17,394

Note 8:  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, 1999 is summarized below.

                           1999              1998              1997
                             wtd. avg.         wtd. avg.         wtd. avg.
                             exercise          exercise          exercise
                      shares    price    shares	  price    shares   price
Options outstanding,
 beginning of year 3,202,700   $12.82 3,050,176  $ 9.60 2,893,288  $ 7.42
Granted               53,200    32.53   605,100   24.28   728,400   16.37
Exercised           (377,119)    7.27  (418,072)   5.91  (477,112)   6.38
Canceled              (9,750)   21.42   (34,504)  13.17   (94,400)  11.46
Options outstanding,
 end of year       2,869,031   $13.88 3,202,700  $12.82 3,050,176  $ 9.60
Options exercisable
 at year-end       2,016,907   $10.66 1,899,100  $ 8.41 1,781,676  $ 6.87
Weighted average fair value
 of options granted
 during the year               $12.97            $ 9.37            $ 8.19

Additional information regarding options outstanding as of
June 30, 1999 is as follows:
                    options outstanding             options exercisable
                      weighted average weighted                   weighted
    range of                 remaining  average                    average
    exercise      number   contractual exercise       number      exercise
      prices outstanding     life (yrs)   price  exercisable         price
$ 4.38- 6.56     547,350          2.42   $ 5.89	     547,350        $ 5.89
  7.94- 9.25     458,420          4.16     8.20	     458,420          8.20
 10.44-12.94     535,186          5.83    10.48	     532,186         10.47
 13.88-19.75     679,750          7.36    16.27	     332,700         16.22
 24.13-34.88     648,325          8.63    24.96	     146,251         24.28
$ 4.38-34.88   2,869,031          5.91   $13.88	   2,016,907        $10.66

At June 30, 1999, 1,753,308 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 annual limitation. Stock
issued under the plan was 59,822, 55,238 and 60,672 shares
in 1999, 1998 and 1997 at weighted average prices of $19.02,
$18.42 and $14.77, respectively. The weighted average fair
value of the 1999, 1998 and 1997 awards was $6.08, $5.41 and
$5.78, respectively.

At June 30, 1998, 1,237,932 shares were reserved for future
issuances under the Purchase Plan.

PRO FORMA STOCK-BASED COMPENSATION EXPENSE. SFAS No. 123,
"Accounting for Stock-Based Compensation," 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
1999, 1998 and 1997 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:
                            1999      1998      1997
(in thousands, except per share amounts)
Net income:
 As reported             $28,474   $28,650   $26,227
 Pro forma                25,547    26,860    24,945
Basic earnings per share:
 As reported             $  1.28   $  1.25   $  1.09
 Pro forma                  1.16      1.18      1.04
Diluted earnings per share
 As reported             $  1.20   $  1.18   $  1.03
 Pro forma                  1.09      1.11       .99

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.

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:
                              1999      1998        1997
Volatility                      36%       30%         45%
Risk-free interest rate       4.67%      5.67%      6.02%
Expected life of options 5.3 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 9:  EMPLOYEE 401(K) PLAN

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 ($1,085,000 in 1999, $988,000 in 1998 and
$918,000 in 1997) 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 10:  TAXES ON INCOME

The provision for taxes on income consists of:

Years ended June 30          1999     1998     1997
(in thousands)
Current:
 Federal                  $ 9,531  $10,747  $ 9,477
 State                      1,983    1,925    2,034
 Foreign                    5,057    2,898    2,795
  Total current            16,571   15,570   14,306
Deferred:
 Federal                   (1,986)    (836)    (407)
 State                       (289)     (52)     (23)
 Foreign                     (159)      77      (62)
  Total deferred           (2,434)    (811)    (492)
                          $14,137  $14,759  $13,814

Domestic and foreign income before taxes on income is as
follows:
Years ended June 30          1999     1998     1997
(in thousands)
Domestic                  $32,079  $36,407  $34,006
Foreign                    10,532    7,002    6,035
                          $42,611  $43,409  $40,041

Deferred income taxes reflect the net tax effects of
temporary differences between the carrying amounts of assets
and liabilities for nancial 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:

Years ended June 30                      1999        1998
(in thousands)
Current deferred tax assets:
 Accounting accruals deductible in
  different periods for tax purposes $  9,809      $7,407
 State income tax                         407         413
 Other                                    145         145
   Total current deferred tax assets   10,361       7,965
Noncurrent deferred tax asset-
 Difference in tax basis from
  Acquisition                           2,636          -
Noncurrent deferred tax liabilities:
 Accelerated depreciation                 906         890
 Net unrealized gain on available for
  sale securities                       4,531       1,267
 Excess tax basis from acquisition      2,636          -
 Other                                     65          73
   Total deferred tax liabilities       8,138       2,230
Net deferred tax assets              $  4,859      $5,735

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                 1999     1998     1997
Statutory Federal income tax rate   35.0%    35.0%    35.0%
State income taxes, net of
 Federal income tax effect           3.0      2.9      3.3
FSC income not taxed                (3.3)    (3.1)    (3.5)
Taxes on foreign income             (3.2)    (1.5)    (1.5)
Other                                1.6       .7      1.2
                                    33.2%    34.0%    34.5%

Income taxes paid were $11,494,000 in 1999, $11,706,000 in
1998 and $11,003,000 in 1997.

The Company has not provided for Federal income taxes on
approximately $26.9 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.

Note 11:  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 $2,064,000 for 2000,
$1,544,000 for 2001, $1,220,000 for 2002, $892,000 for 2003,
$697,000 for 2004 and $4,758,000 thereafter.

Total rental expense for all operating leases was $3,240,000
in 1999, $2,940,000 in 1998 and $2,855,000 in 1997.

Note 12:  BUSINESS SEGMENT INFORMATION

SFAS No. 131 establishes standards for reporting information
about operating segments in annual financial statements of
public business enterprises. It also establishes standards
for related disclosures about products and service,
geographic areas and major customers. The Company evaluated
its business activities that are regularly reviewed by the
Company's senior management and has determined that it has
one reporting segment.
Geographic information is presented below:
                                 1999      1998      1997
(in thousands)
Net sales to unaffiliated customers:
 United States               $ 60,191  $ 60,059  $ 52,556
 Europe                        63,320    46,907    45,165
 Japan                         32,086    23,461    23,432
 Other International           17,343    20,086    20,900
Consolidated net sales to
 unaffiliated customers      $172,940  $150,513  $142,053

Long-lived assets:
 United States               $ 92,132  $ 52,415  $ 53,912
 Europe                        24,229     2,659     2,599
 Japan                          4,678       781       168
 Eliminations                 (50,560)  (17,955)  (18,309)
Consolidated assets          $ 70,479  $ 37,900  $ 38,370

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, 1999 and
1998.
							quarter
                            first   second   third   fourth
(in thousands, except per share amounts)
Fiscal 1999:
 Net sales                $34,845  $44,505 $47,072  $46,518
 Gross profit              23,814   28,213  31,694   32,051
 Net income                 6,049    4,033   9,117    9,275
 Basic earnings per share $   .27  $   .18 $   .41  $   .41
 Diluted earnings per
  Share                   $   .26  $   .17 $   .38  $   .39

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



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,
1999 and 1998, and the related consolidated statements of
income, stockholders' equity and cash flows for each of the
three years in the period ended June 30, 1999. 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, 1999 and 1998, and the results of their operations and
their cash flows for each of the three years in the period
ended June 30, 1999 in conformity with generally accepted
accounting principles.

DELOITTE & TOUCHE

San Jose, California
July 20, 1999



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 1999          fiscal 1998
QUARTER           high        low      high         low
First          $27 1/8    $20 5/16  $27 1/4     $22 5/16
Second          39 5/8     18 3/4    27 1/2      22 1/4
Third           43 1/2     32        30          23 7/8
Fourth          51         36 7/8    28 5/16     23 3/8
As of June 30, 1999 there were 1,552 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
Wednesday, October 27, 1999 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



DIRECTORS

David L. Anderson
Managing Director
Sutter Hill Ventures

James F. Battey
Independent Investor

A. Blaine Bowman
President and
Chief Executive Officer

B. J. Moore
Independent Management Consultant

Riccardo Pigliucci
Chairman and Chief Executive Officer
Discovery Partners International

OFFICERS

A. Blaine Bowman
President and
Chief Executive Officer

Barton Evans, Jr.
Senior Vice President

Nebojsa Avdalovic
Vice President

Bruce L. Barton
Vice President

Michael A. Merion
Vice President

Brent J. Middleton
Vice President

Christopher Pohl
Vice President

Michael W. Pope
Vice President and
Chief Financial Officer

James C. Gaither
Secretary
Partner, Cooley Godward LLP

INDEPENDENT AUDITORS

Deloitte & Touche LLP
San Jose, California
general counsel
Cooley Godward LLP
San Francisco, California

Locations
CORPORATE HEADQUARTERS

Dionex Corporation
1228 Titan Way
P.O. Box 3603
Sunnyvale, California
94088-3603
(408) 737-0700

REGIONAL SALES AND SERVICE

Atlanta, Georgia
(770) 432-8100
Westmont, Illinois
(630) 789-3660
Marlton, New Jersey
(609) 596-0600
Houston, Texas
(281) 847-5652
Sunnyvale, California
(408) 737-8522

SALT LAKE CITY
TECHNICAL CENTER

1515 West 2200 South
Suite A
Salt Lake City, Utah
84119
(801) 972-9292

INTERNATIONAL
SUBSIDIARIES

Dionex (U.K.) Ltd.
4 Albany Court
Camberley, Surrey
GU15 2XA, England
(01276) 691722

Dionex GmbH
Am Woetzgarten 10
D65510 Idstein
Germany
(06126) 991-0

Dionex Softron GmbH
Dornierstrasse 4
D-82110 Germering
Germany
(08989) 468-0

Dionex S.r.l.
Via della Maglianella, 65R
00166 Roma
Italy
(06) 66030052

Dionex S.A.
98, rue Albert Calmette
78354 Jouy en Josas Cedex
France
01 39 46 08 40

Dionex B.V.
Lange Bunder 5
4854 MB Bavel
The Netherlands
(0161) 434303

Dionex N.V.
Wayenborgstraat 14
Omega Business Park
B-2800 Mechelen
Belgium
(015) 203800

Dionex (Switzerland) AG
Solothurnerstr. 259
4600 Olten
Switzerland
(062) 205 99 66

Dionex Austria GmbH
Laxenburger Strasse 220
A-1230 Wien, Austria
(01) 616 51 25

Nippon Dionex K.K.
Shin-Osaka GH Building
Suite #205
9-20, Nishi-Nakajima
6-chome,
Yodogawa-ku, Osaka
532 Japan
(06) 885-1213

Dionex Canada Ltd.
586 Argus Road, Suite 4
Oakville, Ontario
L6J 3J3 Canada
(905) 844-9650