##### Table of Contents









UNITED STATES SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549





Form 10-Q





|           |  |                                                                                             
|---------- |  | --------------------------------------------------------------------------------------------
|(Mark One) |  |                                                                                             
|þ          |  | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
    OF THE SECURITIES EXCHANGE ACT OF 1934 
|           |  | For the quarterly period ended September 30, 2005                                           
|or        
|o          |  | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
    OF THE SECURITIES EXCHANGE ACT OF 1934
|           |  | For the transition period
    from             to            .                              

Commission file number: 01-10920





Fisher Scientific International Inc.


(Exact name of registrant as specified in its charter)


|                                                                            |  |                                         
|--------------------------------------------------------------------------- |  | ----------------------------------------
|Delaware                                                                    |  | 02-0451017                              
|(State or other jurisdiction of
    incorporation or organization)          |  | (I.R.S. Employer
    Identification No.)
|                                                                           
|Liberty Lane, Hampton New Hampshire(Address of principal executive offices) |  | 03842(Zip Code)                         

Registrants telephone number, including area code:


(603) 926-5911





þ o


þ o


o þ












---










FISHER SCIENTIFIC INTERNATIONAL INC.


FORM 10-Q


For the Quarter Ended September 30, 2005


INDEX


|                                                                        |  |   |    |                                                                                                                      |  |          |    | 
|----------------------------------------------------------------------- |  | - | -- | -------------------------------------------------------------------------------------------------------------------- |  | -------- | -- | 
|                                                                        |  |   |    |                                                                                                                      |  | Page No. |   
|                                                                        |  |   |    |                                                                                                                      |  |          |   
|Part I                                                                  |  |  |    | FINANCIAL INFORMATION:                                                                                               |  |          |    | 
|Item 1                                                                  |  |  |    | Financial Statements:                                                                                                |  |          |    | 
|                                                                        |  |   |    | Consolidated Statement of
    Operations  Three and Nine Months Ended
    September 30, 2005 and 2004 (unaudited)   |  |          | 2  | 
|                                                                        |  |   |    | Consolidated Balance Sheet 
    September 30, 2005 (unaudited) and December 31,
    2004                            |  |          | 3  | 
|                                                                        |  |   |    | Consolidated Statement of Cash
    Flows  Nine Months Ended September 30, 2005 and
    2004 (unaudited)             |  |          | 4  | 
|                                                                        |  |   |    | Consolidated Statement of Changes in
    Stockholders Equity  Nine Months Ended
    September 30, 2005 (unaudited) |  |          | 5  | 
|                                                                        |  |   |    | Notes to Consolidated Financial
    Statements                                                                       |  |          | 6  | 
|Item 2                                                                  |  |  |    | Managements Discussion and Analysis
    of Financial Condition and Results of Operations                            |  |          | 22 | 
|Item 3                                                                  |  |  |    | Quantitative and Qualitative Disclosures
    About Market Risk                                                       |  |          | 30 | 
|Item 4                                                                  |  |  |    | Controls and Procedures                                                                                              |  |          | 31 | 
|Part II                                                                 |  |  |    | OTHER INFORMATION:                                                                                                   |  |          |    | 
|Item 4                                                                  |  |  |    | Submission of Matters to Security
    Holders                                                                        |  |          | 32 | 
|Item 6                                                                  |  |  |    | Exhibits                                                                                                             |  |          | 32 | 
|SIGNATURE                                                               |  |   | 33 |                                                                                                                     
|EX-10.01 2005 EQUITY AND INCENTIVE PLAN RESTRICTED STOCK UNIT AGREEMENT
|EX-31.01 SECTION 302 CERTIFICATION OF C.E.O.                           
|EX-31.02 SECTION 302 CERTIFICATION OF C.F.O.                           
|EX-32.01 SECTION 906 CERTIFICATION OF C.E.O.                           
|EX-32.02 SECTION 906 CERTIFICATION OF C.F.O.                           



1



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##### Table of Contents






PART I  FINANCIAL INFORMATION







|         |                     
|-------- | --------------------
|Item 1  | Financial Statements

FISHER SCIENTIFIC INTERNATIONAL INC.





CONSOLIDATED STATEMENT OF OPERATIONS


(In millions, except per share data)


(Unaudited)


|                                                                                                                                                                                  |                                     |                    |         |       |                   |   |         |       |  |   |         |       |  |   |         |      | 
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------- | ------------------ | ------- | ----- | ----------------- | - | ------- | ----- |  | - | ------- | ----- |  | - | ------- | ---- | 
|                                                                                                                                                                                  |                                     | Three Months Ended |         |       | Nine Months Ended |  
|                                                                                                                                                                                  |                                     | September 30,      |         |       | September 30,     |  
|                                                                                                                                                                                  |                                     |                    |         |       |                   |  
|                                                                                                                                                                                  |                                     | 2005               |         |       | 2004              |   |         | 2005  |  |   | 2004    |      
|                                                                                                                                                                                  |                                     |                    |         |       |                   |   |         |       |  |   |         |      
|Net sales                                                                                                                                                                         |                                     | $                  | 1,413.0 |       |                   | $ | 1,254.3 |       |  | $ | 4,155.5 |       |  | $ | 3,306.0 |     
|Cost of sales                                                                                                                                                                     |                                     |                    | 930.0   |       |                   |   | 896.9   |       |  |   | 2,742.8 |       |  |   | 2,375.7 |     
|Selling, general and administrative expenses                                                                                                                                      |                                     |                    | 309.7   |       |                   |   | 264.8   |       |  |   | 922.7   |       |  |   | 687.1   |     
|Restructuring expense                                                                                                                                                             |                                     |                    | 4.3     |       |                   |   | 1.6     |       |  |   | 17.6    |       |  |   | 1.6     |     
|                                                                                                                                                                                  |                                     |                    |         |       |                   |   |         |       |  |   |         |      
|Operating income                                                                                                                                                                  |                                     |                    | 169.0   |       |                   |   | 91.0    |       |  |   | 472.4   |       |  |   | 241.6   |     
|Interest expense                                                                                                                                                                  |                                     |                    | 21.9    |       |                   |   | 28.7    |       |  |   | 80.1    |       |  |   | 73.7    |     
|Other expense, net                                                                                                                                                                |                                     |                    | 36.0    |       |                   |   | 14.9    |       |  |   | 63.7    |       |  |   | 15.2    |     
|                                                                                                                                                                                  |                                     |                    |         |       |                   |   |         |       |  |   |         |      
|Income from continuing operations before income taxes                                                                                                                             |                                     |                    | 111.1   |       |                   |   | 47.4    |       |  |   | 328.6   |       |  |   | 152.7   |     
|Income tax provision                                                                                                                                                              |                                     |                    | 17.9    |       |                   |   | 12.5    |       |  |   | 73.9    |       |  |   | 41.5    |     
|                                                                                                                                                                                  |                                     |                    |         |       |                   |   |         |       |  |   |         |      
|Income from continuing operations                                                                                                                                                 |                                     |                    | 93.2    |       |                   |   | 34.9    |       |  |   | 254.7   |       |  |   | 111.2   |     
|Income from discontinued operations, including gain on disposal
    of $0.3 and $17.0, net of tax for the three and nine-month
    periods ended September 30, 2005, respectively |                                     |                    | 0.3     |       |                   |   | 1.2     |       |  |   | 17.2    |       |  |   | 4.2     |     
|                                                                                                                                                                                  |                                     |                    |         |       |                   |   |         |       |  |   |         |      
|Net income                                                                                                                                                                        |                                     | $                  | 93.5    |       |                   | $ | 36.1    |       |  | $ | 271.9   |       |  | $ | 115.4   |     
|                                                                                                                                                                                  |                                     |                    |         |       |                   |   |         |       |  |   |         |      
|Earnings per share:                                                                                                                                                               |                                     |                    |         |       |                   |   |         |       |  |   |         |       |  |   |         |     
|Basic net income per common share:                                                                                                                                                |                                     |                    |         |       |                   |   |         |       |  |   |         |       |  |   |         |     
|                                                                                                                                                                                  | Income from continuing operations   |                    | $       | 0.77  |                   |   | $       | 0.35  |  |   | $       | 2.11  |  |   | $       | 1.46 | 
|                                                                                                                                                                                  | Income from discontinued operations |                    |         | 0.00  |                   |   |         | 0.01  |  |   |         | 0.14  |  |   |         | 0.06 | 
|                                                                                                                                                                                  |                                     |                    |         |       |                   |   |         |       |  |   |         |      
|                                                                                                                                                                                  | Net income                          |                    | $       | 0.77  |                   |   | $       | 0.36  |  |   | $       | 2.25  |  |   | $       | 1.52 | 
|                                                                                                                                                                                  |                                     |                    |         |       |                   |   |         |       |  |   |         |      
|Diluted net income per common share:                                                                                                                                              |                                     |                    |         |       |                   |   |         |       |  |   |         |       |  |   |         |     
|                                                                                                                                                                                  | Income from continuing operations   |                    | $       | 0.73  |                   |   | $       | 0.33  |  |   | $       | 2.00  |  |   | $       | 1.37 | 
|                                                                                                                                                                                  | Income from discontinued operations |                    |         | 0.00  |                   |   |         | 0.01  |  |   |         | 0.14  |  |   |         | 0.05 | 
|                                                                                                                                                                                  |                                     |                    |         |       |                   |   |         |       |  |   |         |      
|                                                                                                                                                                                  | Net income                          |                    | $       | 0.73  |                   |   | $       | 0.34  |  |   | $       | 2.14  |  |   | $       | 1.42 | 
|                                                                                                                                                                                  |                                     |                    |         |       |                   |   |         |       |  |   |         |      
|Weighted average common shares outstanding:                                                                                                                                       |                                     |                    |         |       |                   |   |         |       |  |   |         |       |  |   |         |     
|                                                                                                                                                                                  | Basic                               |                    |         | 122.2 |                   |   |         | 99.2  |  |   |         | 120.9 |  |   |         | 75.7 | 
|                                                                                                                                                                                  |                                     |                    |         |       |                   |   |         |       |  |   |         |      
|                                                                                                                                                                                  | Diluted                             |                    |         | 128.5 |                   |   |         | 106.3 |  |   |         | 127.2 |  |   |         | 81.5 | 
|                                                                                                                                                                                  |                                     |                    |         |       |                   |   |         |       |  |   |         |      



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FISHER SCIENTIFIC INTERNATIONAL INC.





CONSOLIDATED BALANCE SHEET


(In millions, except share and per share data)


|                                     |                                                                                                                                                                                                                                |                            |                                            |         |              |         |         |         |         |         | 
|------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | -------------------------- | ------------------------------------------ | ------- | ------------ | ------- | ------- | ------- | ------- | ------- | 
|                                     |                                                                                                                                                                                                                                | September 30,              |                                            |         | December 31, |        
|                                     |                                                                                                                                                                                                                                | 2005                       |                                            |         | 2004         |        
|                                     |                                                                                                                                                                                                                                |                            |                                            |         |              |        
|                                     |                                                                                                                                                                                                                                | (Unaudited)                |                                            |         |             
|ASSETS                              
|Current assets:                      |                                                                                                                                                                                                                                |                            |                                            |         |              |         |         |        
|                                     | Cash and cash equivalents                                                                                                                                                                                                      |                            | $                                          | 189.2   |              |         | $       | 162.5   |        
|                                     | Accounts receivable, net                                                                                                                                                                                                       |                            |                                            | 730.8   |              |         |         | 632.8   |        
|                                     | Inventories                                                                                                                                                                                                                    |                            |                                            | 603.2   |              |         |         | 622.4   |        
|                                     | Other current assets                                                                                                                                                                                                           |                            |                                            | 289.5   |              |         |         | 264.5   |        
|                                     | Assets held for sale                                                                                                                                                                                                           |                            |                                            |        |              |         |         | 94.2    |        
|                                     |                                                                                                                                                                                                                                |                            |                                            |         |              |        
|                                     |                                                                                                                                                                                                                                | Total current assets       |                                            |         | 1,812.7      |         |         |         | 1,776.4 |        
|Property, plant and equipment, net   |                                                                                                                                                                                                                                |                            | 820.6                                      |         |              |         | 785.4   |        
|Goodwill                             |                                                                                                                                                                                                                                |                            | 3,767.5                                    |         |              |         | 3,756.9 |        
|Intangible assets, net               |                                                                                                                                                                                                                                |                            | 1,589.4                                    |         |              |         | 1,565.4 |        
|Other assets                         |                                                                                                                                                                                                                                |                            | 184.0                                      |         |              |         | 206.1   |        
|                                     |                                                                                                                                                                                                                                |                            |                                            |         |              |        
|                                     |                                                                                                                                                                                                                                | Total assets               |                                            | $       | 8,174.2      |         |         | $       | 8,090.2 |        
|                                     |                                                                                                                                                                                                                                |                            |                                            |         |              |        
|                                    
|LIABILITIES AND STOCKHOLDERS EQUITY
|Current liabilities:                 |                                                                                                                                                                                                                                |                            |                                            |         |              |         |         |        
|                                     | Short-term debt                                                                                                                                                                                                                |                            | $                                          | 39.5    |              |         | $       | 39.4    |        
|                                     | Accounts payable                                                                                                                                                                                                               |                            |                                            | 476.7   |              |         |         | 468.5   |        
|                                     | Accrued and other current liabilities                                                                                                                                                                                          |                            |                                            | 397.9   |              |         |         | 452.9   |        
|                                     | Liabilities held for sale                                                                                                                                                                                                      |                            |                                            |        |              |         |         | 8.9     |        
|                                     |                                                                                                                                                                                                                                |                            |                                            |         |              |        
|                                     |                                                                                                                                                                                                                                | Total current liabilities  |                                            |         | 914.1        |         |         |         | 969.7   |        
|Long-term debt                       |                                                                                                                                                                                                                                |                            | 2,152.8                                    |         |              |         | 2,309.2 |        
|Other long-term liabilities          |                                                                                                                                                                                                                                |                            | 939.0                                      |         |              |         | 941.3   |        
|                                     |                                                                                                                                                                                                                                |                            |                                            |         |              |        
|                                     |                                                                                                                                                                                                                                | Total liabilities          |                                            |         | 4,005.9      |         |         |         | 4,220.2 |        
|                                     |                                                                                                                                                                                                                                |                            |                                            |         |              |        
|Commitments and contingencies        |                                                                                                                                                                                                                                |                            |                                            |         |              |         |         |        
|Stockholders equity:                |                                                                                                                                                                                                                                |                            |                                            |         |              |         |         |        
|                                     | Preferred stock ($0.01 par value; 15,000,000 shares
    authorized; none outstanding)                                                                                                                                          |                            |                                            |        |              |         |         |        |        
|                                     | Common stock ($0.01 par value; 500,000,000 shares
    authorized; 122,745,669 and 118,928,952 shares issued;
    122,490,694 and 118,673,977 shares outstanding at
    September 30, 2005 and December 31, 2004, respectively) |                            |                                            | 1.1     |              |         |         | 1.1     |        
|                                     | Capital in excess of par value                                                                                                                                                                                                 |                            |                                            | 4,152.1 |              |         |         | 4,006.1 |        
|                                     | Retained earnings (accumulated deficit)                                                                                                                                                                                        |                            |                                            | 11.8    |              |         |         | (260.1  | )      
|                                     | Accumulated other comprehensive income                                                                                                                                                                                         |                            |                                            | 7.3     |              |         |         | 126.9   |        
|                                     | Treasury stock, at cost (254,975 shares at
    September 30, 2005 and December 31, 2004)                                                                                                                                       |                            |                                            | (4.0    | )            |         |         | (4.0    | )      
|                                     |                                                                                                                                                                                                                                |                            |                                            |         |              |        
|                                     |                                                                                                                                                                                                                                | Total stockholders equity |                                            |         | 4,168.3      |         |         |         | 3,870.0 |        
|                                     |                                                                                                                                                                                                                                |                            |                                            |         |              |        
|                                     |                                                                                                                                                                                                                                |                            | Total liabilities and stockholders equity |         | $            | 8,174.2 |         |         | $       | 8,090.2 | 
|                                     |                                                                                                                                                                                                                                |                            |                                            |         |              |        



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FISHER SCIENTIFIC INTERNATIONAL INC.





CONSOLIDATED STATEMENT OF CASH FLOWS


(In millions)


(Unaudited)


|                                                             |                                                                                       |                                                                                    |                                       |        |        |       |       |         |        |      |  
|------------------------------------------------------------ | ------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------- | ------------------------------------- | ------ | ------ | ----- | ----- | ------- | ------ | ---- | -
|                                                             |                                                                                       | Nine Months Ended                                                                  |                                      
|                                                             |                                                                                       | September 30,                                                                      |                                      
|                                                             |                                                                                       |                                                                                    |                                      
|                                                             |                                                                                       | 2005                                                                               |                                       |        | 2004   |      
|                                                             |                                                                                       |                                                                                    |                                       |        |        |      
|Cash flows from operating activities:                        |                                                                                       |                                                                                    |                                       |        |        |       |       |        
|                                                             | Net income                                                                            |                                                                                    | $                                     | 271.9  |        |       | $     | 115.4   |       
|                                                             | Adjustments to reconcile net income to net cash provided by
    operating activities: |                                                                                    |                                       |        |        |       |       |         |       
|                                                             |                                                                                       | Depreciation                                                                       |                                       |        | 98.4   |       |       |         | 59.4   |     
|                                                             |                                                                                       | Amortization of intangible assets                                                  |                                       |        | 38.7   |       |       |         | 19.7   |     
|                                                             |                                                                                       | Amortization  other                                                               |                                       |        | 12.4   |       |       |         | 13.1   |     
|                                                             |                                                                                       | Debt redemption premiums and write off of amounts associated
    with debt tenders |                                       |        | 69.4   |       |       |         | 15.6   |     
|                                                             |                                                                                       | Deferred income taxes                                                              |                                       |        | 40.6   |       |       |         | 12.8   |     
|                                                             |                                                                                       | Gain on sale of business and investments                                           |                                       |        | (25.4  | )     |       |         |       |     
|                                                             |                                                                                       | Loss on sale of property and impairment of property, plant and
    equipment       |                                       |        | 9.8    |       |       |         | 1.1    |     
|                                                             |                                                                                       | Changes in working capital
    Accounts receivable, net                            |                                       |        | (91.5  | )     |       |         | (2.3   | )   
|                                                             |                                                                                       |                                                                                    | Inventories                           |        |        | 3.0   |       |         |        | 33.0 |  
|                                                             |                                                                                       |                                                                                    | Other current assets                  |        |        | 10.5  |       |         |        | 10.6 |  
|                                                             |                                                                                       |                                                                                    | Accounts payable                      |        |        | 10.7  |       |         |        | (0.7 | )
|                                                             |                                                                                       |                                                                                    | Accrued and other current liabilities |        |        | (46.7 | )     |         |        | (3.5 | )
|                                                             |                                                                                       | Other assets and liabilities                                                       |                                       |        | (6.0   | )     |       |         | (31.7  | )   
|                                                             |                                                                                       |                                                                                    |                                       |        |        |      
|                                                             |                                                                                       | Cash provided by operating activities                                              |                                       |        | 395.8  |       |       |         | 242.5  |     
|                                                             |                                                                                       |                                                                                    |                                       |        |        |      
|Cash flows from investing activities:                        |                                                                                       |                                                                                    |                                       |        |        |       |       |        
|                                                             | Acquisitions, net of cash acquired                                                    |                                                                                    |                                       | (263.8 | )      |       |       | (326.2  | )     
|                                                             | Capital expenditures                                                                  |                                                                                    |                                       | (100.3 | )      |       |       | (57.1   | )     
|                                                             | Proceeds from sale of a business                                                      |                                                                                    |                                       | 109.5  |        |       |       |        |       
|                                                             | Proceeds from sale of property, plant and equipment                                   |                                                                                    |                                       | 9.0    |        |       |       | 0.2     |       
|                                                             | Other                                                                                 |                                                                                    |                                       | (1.0   | )      |       |       | (2.5    | )     
|                                                             |                                                                                       |                                                                                    |                                       |        |        |      
|                                                             |                                                                                       | Cash used in investing activities                                                  |                                       |        | (246.6 | )     |       |         | (385.6 | )   
|                                                             |                                                                                       |                                                                                    |                                       |        |        |      
|Cash flows from financing activities:                        |                                                                                       |                                                                                    |                                       |        |        |       |       |        
|                                                             | Proceeds from stock options exercised                                                 |                                                                                    |                                       | 119.0  |        |       |       | 92.1    |       
|                                                             | Long-term debt proceeds                                                               |                                                                                    |                                       | 497.3  |        |       |       | 1,016.8 |       
|                                                             | Repayments of long-term debt                                                          |                                                                                    |                                       | (633.8 | )      |       |       | (731.4  | )     
|                                                             | Change in short-term debt, net                                                        |                                                                                    |                                       | (13.6  | )      |       |       | 5.3     |       
|                                                             | Debt redemption premium and other costs                                               |                                                                                    |                                       | (77.4  | )      |       |       | (2.3    | )     
|                                                             | Deferred financing costs                                                              |                                                                                    |                                       | (0.9   | )      |       |       | (24.5   | )     
|                                                             |                                                                                       |                                                                                    |                                       |        |        |      
|                                                             |                                                                                       | Cash (used in) provided by financing activities                                    |                                       |        | (109.4 | )     |       |         | 356.0  |     
|                                                             |                                                                                       |                                                                                    |                                       |        |        |      
|Effect of exchange rate changes on cash and cash equivalents |                                                                                       |                                                                                    | (13.1                                 | )      |        |       | (0.3  | )      
|                                                             |                                                                                       |                                                                                    |                                       |        |        |      
|Net change in cash and cash equivalents                      |                                                                                       |                                                                                    | 26.7                                  |        |        |       | 212.6 |        
|Cash and cash equivalents  beginning of period              |                                                                                       |                                                                                    | 162.5                                 |        |        |       | 83.8  |        
|                                                             |                                                                                       |                                                                                    |                                       |        |        |      
|Cash and cash equivalents  end of period                    |                                                                                       | $                                                                                  | 189.2                                 |        |        | $     | 296.4 |        
|                                                             |                                                                                       |                                                                                    |                                       |        |        |      



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FISHER SCIENTIFIC INTERNATIONAL INC.





CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS
EQUITY


(In millions, except share data)


(Unaudited)


|                              |                                                   |              |             |           |            |   |     |           |  |   |             |       |  |              |       |     |                 |   |      |         |   |   |        |       |  |        |       |        |       |  |         |   |  |   |      |   |  |   |         |        |  
|----------------------------- | ------------------------------------------------- | ------------ | ----------- | --------- | ---------- | - | --- | --------- |  | - | ----------- | ----- |  | ------------ | ----- | --- | --------------- | - | ---- | ------- | - | - | ------ | ----- |  | ------ | ----- | ------ | ----- |  | ------- | - |  | - | ---- | - |  | - | ------- | ------ | -
|                              |                                                   |              |             |           |            |   |     | Shares to |  |   | Retained    |       |  | Accumulated  |       |     | Treasury Stock, |   |      |        
|                              |                                                   | Common Stock |             |           | Capital in |   |     | Shares    |  |   | be          |       |  | Earnings     |       |     | Other           |   |      | at Cost |   |   |       
|                              |                                                   |              |             |           | Excess of  |   |     | Deposited |  |   | Distributed |       |  | (Accumulated |       |     | Comprehensive   |   |      |         |   |   |       
|                              |                                                   | Shares       |             |           | Amount     |   |     | Par Value |  |   | in Trust    |       |  | from Trust   |       |     | Deficit)        |   |      | Income  |   |   | Shares |       |  | Amount |       |        | Total | 
|                              |                                                   |              |             |           |            |   |     |           |  |   |             |       |  |              |       |     |                 |   |      |         |   |   |        |       |  |        |       |        |       | 
|Balance at January 1, 2005    |                                                   |              | 118,928,952 |           |            | $ | 1.1 |           |  | $ | 4,006.1     |       |  | $            | (24.0 | )   |                 | $ | 24.0 |         |   | $ | (260.1 | )     |  | $      | 126.9 |        |       |  | 254,975 |   |  | $ | (4.0 | ) |  | $ | 3,870.0 |       
|                              | Net income                                        |              |             |          |            |   |     |          |  |   |             |      |  |              |       |    |                 |   |      |        |   |   |        | 271.9 |  |        |       |       |       |  |         |  |  |   |      |  |  |   |         | 271.9  |  
|                              | Foreign currency translation adjustment           |              |             |          |            |   |     |          |  |   |             |      |  |              |       |    |                 |   |      |        |   |   |        |      |  |        |       | (118.3 | )     |  |         |  |  |   |      |  |  |   |         | (118.3 | )
|                              | Unrealized investment losses, net of tax          |              |             |          |            |   |     |          |  |   |             |      |  |              |       |    |                 |   |      |        |   |   |        |      |  |        |       | (0.6   | )     |  |         |  |  |   |      |  |  |   |         | (0.6   | )
|                              | Unrealized losses on cash flow hedges, net of tax |              |             |          |            |   |     |          |  |   |             |      |  |              |       |    |                 |   |      |        |   |   |        |      |  |        |       | (0.7   | )     |  |         |  |  |   |      |  |  |   |         | (0.7   | )
|                              | Proceeds from stock options                       |              |             | 3,816,717 |            |   |     |          |  |   |             | 118.3 |  |              |       |    |                 |   |      |        |   |   |        |      |  |        |       |       |       |  |         |  |  |   |      |  |  |   |         | 118.3  |  
|                              | Tax benefit from stock options                    |              |             |          |            |   |     |          |  |   |             | 27.0  |  |              |       |    |                 |   |      |        |   |   |        |      |  |        |       |       |       |  |         |  |  |   |      |  |  |   |         | 27.0   |  
|                              | Compensation expense                              |              |             |          |            |   |     |          |  |   |             | 0.7   |  |              |       |    |                 |   |      |        |   |   |        |      |  |        |       |       |       |  |         |  |  |   |      |  |  |   |         | 0.7    |  
|                              | Trust activity                                    |              |             |          |            |   |     |          |  |   |             |      |  |              |       | 5.8 |                 |   |      | (5.8    | ) |   |        |      |  |        |       |       |       |  |         |  |  |   |      |  |  |   |         |       |  
|                              |                                                   |              |             |           |            |   |     |           |  |   |             |       |  |              |       |     |                 |   |      |         |   |   |        |       |  |        |       |        |       | 
|Balance at September 30, 2005 |                                                   |              | 122,745,669 |           |            | $ | 1.1 |           |  | $ | 4,152.1     |       |  | $            | (18.2 | )   |                 | $ | 18.2 |         |   | $ | 11.8   |       |  | $      | 7.3   |        |       |  | 254,975 |   |  | $ | (4.0 | ) |  | $ | 4,168.3 |       
|                              |                                                   |              |             |           |            |   |     |           |  |   |             |       |  |              |       |     |                 |   |      |         |   |   |        |       |  |        |       |        |       | 



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FISHER SCIENTIFIC INTERNATIONAL INC.





NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


(Unaudited)


Note 1  Nature of Operations






| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 1. Scientific products and services segmentprovides
    products and services primarily to entities conducting
    scientific research, including drug discovery and drug
    development, quality and process control and basic research and
    development. This segment manufactures and distributes a broad
    range of biosciences and bioreagents; organic and inorganic
    chemicals; sera; cell culture media; sterile liquid-handling
    systems; microbiology media and related products; scientific
    consumable products, instruments and equipment; safety and
    personal protection products; and other consumables and
    supplies. Additionally, this segment provides services to
    pharmaceutical and biotechnology companies engaged in clinical
    trials, including specialized packaging, over-encapsulation,
    labeling and distribution for phase III and phase IV
    clinical trials, as well as combinatorial chemistry,
    custom-chemical synthesis, supply-chain management and a number
    of other services.
|
| | 2. Healthcare products and services segmentmanufactures and distributes a wide array of diagnostic kits
    and reagents, equipment, instruments, medical devices and other
    consumable products to hospitals, clinical laboratories,
    reference laboratories, physicians offices and original
    equipment manufacturers located primarily in the United States.
    This segment also provides outsourced manufacturing services for
    diagnostic reagents, calibrators and controls to the healthcare
    and pharmaceutical industries.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|
| | 3. Laboratory workstations segmentmanufactures and
    sells laboratory workstations and fume hoods and provides
    lab-design services for pharmaceutical and biotechnology
    customers, colleges, universities and secondary schools,
    hospitals and reference labs.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                

Note 2  Basis of Presentation










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FISHER SCIENTIFIC INTERNATIONAL INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








|         |                         
|-------- | ------------------------
|Note 3  | Stock-Based Compensation





|                                                                                                                 |         |               |      |      |               |   |      |      |  |   |       |      |  |   |       |      | 
|---------------------------------------------------------------------------------------------------------------- | ------- | ------------- | ---- | ---- | ------------- | - | ---- | ---- |  | - | ----- | ---- |  | - | ----- | ---- | 
|                                                                                                                 |         | Three Months  |      |      | Nine Months   |  
|                                                                                                                 |         | Ended         |      |      | Ended         |  
|                                                                                                                 |         | September 30, |      |      | September 30, |  
|                                                                                                                 |         |               |      |      |               |  
|                                                                                                                 |         | 2005          |      |      | 2004          |   |      | 2005 |  |   | 2004  |     
|                                                                                                                 |         |               |      |      |               |   |      |      |  |   |       |     
|Net income, as reported                                                                                          |         | $             | 93.5 |      |               | $ | 36.1 |      |  | $ | 271.9 |      |  | $ | 115.4 |     
|Add: stock-based employee compensation included in net income,
    net of tax(a)                                 |         |               | 0.3  |      |               |   |     |      |  |   | 2.0   |      |  |   |      |     
|Deduct: stock-based compensation expense determined using fair
    value based method for all awards, net of tax |         |               | (9.4 | )    |               |   | (7.4 | )    |  |   | (21.2 | )    |  |   | (21.9 | )   
|                                                                                                                 |         |               |      |      |               |   |      |      |  |   |       |     
|Net income, pro forma                                                                                            |         | $             | 84.4 |      |               | $ | 28.7 |      |  | $ | 252.7 |      |  | $ | 93.5  |     
|                                                                                                                 |         |               |      |      |               |   |      |      |  |   |       |     
|Net income per common share                                                                                      |         |               |      |      |               |   |      |      |  |   |       |      |  |   |       |     
|As reported:                                                                                                     |         |               |      |      |               |   |      |      |  |   |       |      |  |   |       |     
|                                                                                                                 | Basic   |               | $    | 0.77 |               |   | $    | 0.36 |  |   | $     | 2.25 |  |   | $     | 1.52 | 
|                                                                                                                 |         |               |      |      |               |   |      |      |  |   |       |     
|                                                                                                                 | Diluted |               | $    | 0.73 |               |   | $    | 0.34 |  |   | $     | 2.14 |  |   | $     | 1.42 | 
|                                                                                                                 |         |               |      |      |               |   |      |      |  |   |       |     
|Pro forma:                                                                                                       |         |               |      |      |               |   |      |      |  |   |       |      |  |   |       |     
|                                                                                                                 | Basic   |               | $    | 0.69 |               |   | $    | 0.29 |  |   | $     | 2.09 |  |   | $     | 1.24 | 
|                                                                                                                 |         |               |      |      |               |   |      |      |  |   |       |     
|                                                                                                                 | Diluted |               | $    | 0.66 |               |   | $    | 0.27 |  |   | $     | 1.98 |  |   | $     | 1.15 | 
|                                                                                                                 |         |               |      |      |               |   |      |      |  |   |       |     






|    |                                                                                                                                                                                                                                                                                                      
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | Stock-based compensation expense for the nine month period ended
    September 30, 2005 includes approximately $0.7 million
    of expense associated with the accelerated vesting of
    approximately 42,000 employee options in connection with
    the Companys sale of Atos Medical Holding AB.

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FISHER SCIENTIFIC INTERNATIONAL INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|         |                      
|-------- | ---------------------
|Note 4  | Business Combinations



|                    |                               |                           |       |       |       | 
|------------------- | ----------------------------- | ------------------------- | ----- | ----- | ----- | 
|Assets:             |                               |                           |       |      
|                    | Current assets                |                           | $     | 33.1  |      
|                    | Property, plant and equipment |                           |       | 62.7  |      
|                    | Intangible assets             |                           |       | 76.9  |      
|                    | Goodwill                      |                           |       | 136.6 |      
|                    | Other assets                  |                           |       | 1.0   |      
|                    |                               |                           |      
|                    |                               | Total assets acquired     |       |       | 310.3 | 
|                    |                               |                           |      
|Liabilities:        |                               |                           |       |      
|                    | Current liabilities           |                           | $     | 25.7  |      
|                    | Long-term debt                |                           |       | 2.1   |      
|                    | Other liabilities             |                           |       | 32.9  |      
|                    |                               |                           |      
|                    |                               | Total liabilities assumed |       |       | 60.7  | 
|                    |                               |                           |      
|Net assets acquired |                               | $                         | 249.6 |      
|                    |                               |                           |      









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FISHER SCIENTIFIC INTERNATIONAL INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|                            |         |                    |         |      |                    |   |         |      | 
|--------------------------- | ------- | ------------------ | ------- | ---- | ------------------ | - | ------- | ---- | 
|                            |         | Three Months Ended |         |      | Nine Months Ended  |  
|                            |         | September 30, 2004 |         |      | September 30, 2004 |  
|                            |         |                    |         |      |                    |  
|Net sales                   |         | $                  | 1,347.1 |      |                    | $ | 3,916.2 |     
|Net income                  |         | $                  | 30.3    |      |                    | $ | 115.5   |     
|Net income per common share |         |                    |         |      |                    |   |         |     
|                            | Basic   |                    | $       | 0.26 |                    |   | $       | 1.00 | 
|                            | Diluted |                    | $       | 0.24 |                    |   | $       | 0.94 | 







|         |            
|-------- | -----------
|Note 5  | Inventories



|                  |       |               |       |       |              |   |       |       | 
|----------------- | ----- | ------------- | ----- | ----- | ------------ | - | ----- | ----- | 
|                  |       | September 30, |       |       | December 31, |  
|                  |       | 2005          |       |       | 2004         |  
|                  |       |               |       |       |              |  
|Raw materials     |       | $             | 131.0 |       |              | $ | 136.0 |      
|Work in process   |       |               | 71.3  |       |              |   | 65.3  |      
|Finished products |       |               | 400.9 |       |              |   | 421.1 |      
|                  |       |               |       |       |              |  
|                  | Total |               | $     | 603.2 |              |   | $     | 622.4 | 
|                  |       |               |       |       |              |  

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FISHER SCIENTIFIC INTERNATIONAL INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|         |                                     
|-------- | ------------------------------------
|Note 6  | Goodwill and Other Intangible Assets







|                                 |  |               |         |  |              |   |         | 
|-------------------------------- |  | ------------- | ------- |  | ------------ | - | ------- | 
|                                 |  | September 30, |         |  | December 31, |  
|                                 |  | 2005          |         |  | 2004         |  
|                                 |  |               |         |  |              |  
|Scientific products and services |  | $             | 2,720.0 |  |              | $ | 2,680.2 | 
|Healthcare products and services |  |               | 1,047.5 |  |              |   | 1,076.7 | 
|Laboratory workstations          |  |               |        |  |              |   |        | 
|                                 |  |               |         |  |              |  
|                                 |  | $             | 3,767.5 |  |              | $ | 3,756.9 | 
|                                 |  |               |         |  |              |  



|                                    |                                                       |                    |         |         |                   |   |      |          |  |   |              |         |  |   |      |      | 
|----------------------------------- | ----------------------------------------------------- | ------------------ | ------- | ------- | ----------------- | - | ---- | -------- |  | - | ------------ | ------- |  | - | ---- | ---- | 
|                                    |                                                       | September 30, 2005 |         |         | December 31, 2004 |  
|                                    |                                                       |                    |         |         |                   |  
|                                    |                                                       | Net                |         |         |                   |   | Net  |          |  |  
|                                    |                                                       | Carrying           |         |         | Accumulated       |   |      | Carrying |  |   | Accumulated  |        
|                                    |                                                       | Amount             |         |         | Amortization      |   |      | Amount   |  |   | Amortization |        
|                                    |                                                       |                    |         |         |                   |   |      |          |  |   |              |        
|Customer relationships              |                                                       | $                  | 306.1   |         |                   | $ | 35.0 |          |  | $ | 279.0        |         |  | $ | 20.4 |     
|Non-compete agreements              |                                                       |                    | 2.0     |         |                   |   | 21.9 |          |  |   | 0.5          |         |  |   | 21.5 |     
|Patents and tradenames              |                                                       |                    | 14.2    |         |                   |   | 10.2 |          |  |   | 9.4          |         |  |   | 9.0  |     
|Developed technology                |                                                       |                    | 184.0   |         |                   |   | 32.4 |          |  |   | 192.0        |         |  |   | 15.9 |     
|Supplier arrangements               |                                                       |                    | 17.0    |         |                   |   | 4.1  |          |  |   | 18.3         |         |  |   | 2.8  |     
|Other amortizable intangible assets |                                                       |                    | 30.0    |         |                   |   | 10.7 |          |  |   | 21.8         |         |  |   | 7.6  |     
|                                    |                                                       |                    |         |         |                   |   |      |          |  |   |              |        
|                                    | Total other intangible assets subject to amortization |                    | $       | 553.3   |                   |   | $    | 114.3    |  |   | $            | 521.0   |  |   | $    | 77.2 | 
|                                    |                                                       |                    |         |         |                   |   |      |          |  |   |              |        
|Indefinite-lived intangible assets  |                                                       |                    | 1,036.1 |         |                   |   |      |          |  |   | 1,044.4      |         |  |   |      |     
|                                    |                                                       |                    |         |         |                   |   |      |          |  |   |              |        
|                                    | Total other intangible assets                         |                    | $       | 1,589.4 |                   |   |      |          |  |   | $            | 1,565.4 |  |   |      |      | 
|                                    |                                                       |                    |         |         |                   |   |      |          |  |   |              |        





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FISHER SCIENTIFIC INTERNATIONAL INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                |  |   |       | 
|------------------------------- |  | - | ----- | 
|For the Year Ended December 31, |  |  
|                                |  |  
|2005                            |  | $ | 53.0  | 
|2006                            |  |   | 56.2  | 
|2007                            |  |   | 54.4  | 
|2008                            |  |   | 52.9  | 
|2009                            |  |   | 49.5  | 
|Thereafter                      |  |   | 326.0 | 



|         |     
|-------- | ----
|Note 7  | Debt



|                                                                                                                                                                                  |                      |               |       |         |               |   |       |         | 
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------- | ------------- | ----- | ------- | ------------- | - | ----- | ------- | 
|                                                                                                                                                                                  |                      | September 30, |       |         | December 31,  |  
|                                                                                                                                                                                  |                      | 2005          |       |         | 2004          |  
|                                                                                                                                                                                  |                      |               |       |         |               |  
|                                                                                                                                                                                  |                      | (in millions) |       |         | (in millions) |  
|Term Facility                                                                                                                                                                     |                      | $             | 381.2 |         |               | $ | 393.0 |        
|Other debt                                                                                                                                                                        |                      |               | 37.2  |         |               |   | 60.8  |        
|2.50% Convertible Senior Notes due 2023, convertible at
    $47.46 per share                                                                                                      |                      |               | 300.0 |         |               |   | 300.0 |        
|Floating Rate Convertible Senior Debentures due 2033,
    convertible at $59.09 per share                                                                                         |                      |               | 344.6 |         |               |   | 344.6 |        
|3.25% Convertible Senior Subordinated Notes due 2024,
    convertible at $80.40 per share                                                                                         |                      |               | 330.0 |         |               |   | 330.0 |        
|63/4% Senior
    Subordinated Notes due 2014                                                                                                                                      |                      |               | 300.0 |         |               |   | 300.0 |        
|81/8% Senior
    Subordinated Notes due 2012 (includes $0 million and
    $5.9 million of unamortized debt premium at
    September 30, 2005 and December 31, 2004, respectively) |                      |               | 2.0   |         |               |   | 309.9 |        
|8% Senior Subordinated Notes due 2013 (includes
    $0 million and $10.3 million of unamortized debt
    premium at September 30, 2005 and December 31, 2004,
    respectively)   |                      |               |      |         |               |   | 310.3 |        
|61/8% Senior
    Subordinated Notes due 2015 (includes $2.7 million of
    unamortized debt discount at September 30, 2005)                                                       |                      |               | 497.3 |         |               |   |      |        
|                                                                                                                                                                                  |                      |               |       |         |               |  
|                                                                                                                                                                                  | Total debt           |               |       | 2,192.3 |               |   |       | 2,348.6 | 
|Less: short-term portion                                                                                                                                                          |                      |               | (39.5 | )       |               |   | (39.4 | )      
|                                                                                                                                                                                  |                      |               |       |         |               |  
|                                                                                                                                                                                  | Total long-term debt |               | $     | 2,152.8 |               |   | $     | 2,309.2 | 
|                                                                                                                                                                                  |                      |               |       |         |               |  





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FISHER SCIENTIFIC INTERNATIONAL INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




1 8 1 8 1 8




1 8 1 8




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##### Table of Contents



FISHER SCIENTIFIC INTERNATIONAL INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


1 8










|         |       
|-------- | ------
|Note 8  | Equity





Note 9  Divestiture




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FISHER SCIENTIFIC INTERNATIONAL INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                      |                   |              |      |      |              |   |      |      | 
|------------------------------------- | ----------------- | ------------ | ---- | ---- | ------------ | - | ---- | ---- | 
|                                      |                   | (Divestiture |      |      |             
|                                      |                   | Date)        |      |      |             
|                                      |                   | April 5,     |      |      | December 31, |  
|                                      |                   | 2005         |      |      | 2004         |  
|                                      |                   |              |      |      |              |  
|Accounts receivable, net              |                   | $            | 4.7  |      |              | $ | 3.8  |     
|Inventories                           |                   |              | 3.8  |      |              |   | 3.3  |     
|Other current assets                  |                   |              | 1.8  |      |              |   | 1.7  |     
|Property, plant, and equipment        |                   |              | 3.1  |      |              |   | 3.2  |     
|Goodwill                              |                   |              | 75.8 |      |              |   | 75.8 |     
|Intangible assets                     |                   |              | 6.1  |      |              |   | 6.4  |     
|                                      |                   |              |      |      |              |  
|                                      | Total assets      |              | $    | 95.3 |              |   | $    | 94.2 | 
|                                      |                   |              |      |      |              |  
|Accounts payable                      |                   |              | 1.9  |      |              |   | 1.7  |     
|Accrued and other current liabilities |                   |              | 5.3  |      |              |   | 5.2  |     
|Other liabilities                     |                   |              | 1.9  |      |              |   | 2.0  |     
|                                      |                   |              |      |      |              |  
|                                      | Total liabilities |              | $    | 9.1  |              |   | $    | 8.9  | 
|                                      |                   |              |      |      |              |  



|                                                |  |               |   |      |               |   |      |  |  |      |      |  |  |   |      | 
|----------------------------------------------- |  | ------------- | - | ---- | ------------- | - | ---- |  |  | ---- | ---- |  |  | - | ---- | 
|                                                |  | Three Months  |   |      | Nine Months   |  
|                                                |  | Ended         |   |      | Ended         |  
|                                                |  | September 30, |   |      | September 30, |  
|                                                |  |               |   |      |               |  
|                                                |  | 2005          |   | 2004 |               |   | 2005 |  |  | 2004 |     
|                                                |  |               |   |      |               |   |      |  |  |      |     
|Sales                                           |  | $             |  |      |               | $ | 8.7  |  |  | $    | 10.4 |  |  | $ | 25.6 | 
|Income before taxes                             |  |               |  |      |               |   | 1.2  |  |  |      | 0.4  |  |  |   | 4.4  | 
|Provision for income taxes                      |  |               |  |      |               |   |     |  |  |      | 0.2  |  |  |   | 0.2  | 
|Income from discontinued operations, net of tax |  |               |  |      |               |   | 1.2  |  |  |      | 0.2  |  |  |   | 4.2  | 



|          |                       
|--------- | ----------------------
|Note 10  | Employee Benefit Plans



14



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FISHER SCIENTIFIC INTERNATIONAL INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                                          |                                    |                                  |      |                |          |   |      |      |  |   |      |      |   |   |      |      |  
|--------------------------------------------------------- | ---------------------------------- | -------------------------------- | ---- | -------------- | -------- | - | ---- | ---- |  | - | ---- | ---- | - | - | ---- | ---- | -
|                                                          |                                    | Three Months Ended September 30, |     
|                                                          |                                    |                                  |     
|                                                          |                                    |                                  |      | Other          |         
|                                                          |                                    |                                  |      | Postretirement |         
|                                                          |                                    | Pension Benefits                 |      |                | Benefits |  
|                                                          |                                    |                                  |      |                |          |  
|                                                          |                                    | 2005                             |      |                | 2004     |   |      | 2005 |  |   | 2004 |     
|                                                          |                                    |                                  |      |                |          |   |      |      |  |   |      |     
|Components of net periodic benefit (income) cost          |                                    |                                  |      |                |          |   |      |      |  |   |      |      |   |   |      |     
|Service cost                                              |                                    | $                                | 6.0  |                |          | $ | 4.4  |      |  | $ | 0.1  |      |   | $ | 0.1  |     
|Interest cost                                             |                                    |                                  | 8.3  |                |          |   | 6.3  |      |  |   | 0.4  |      |   |   | 0.5  |     
|Expected return on plan assets                            |                                    |                                  | (9.6 | )              |          |   | (8.0 | )    |  |   |     |      |   |   |     |     
|Amortization of unrecognized net (gain) loss              |                                    |                                  |     |                |          |   | 0.1  |      |  |   |     |      |   |   | (0.4 | )   
|Amortization of unrecognized prior service (benefit) cost |                                    |                                  | 0.2  |                |          |   | 0.3  |      |  |   | (0.4 | )    |   |   | (0.6 | )   
|Recognized net actuarial (gain) loss                      |                                    |                                  | 1.0  |                |          |   | 0.2  |      |  |   | (0.4 | )    |   |   |     |     
|Settlement/curtailment loss                               |                                    |                                  | 0.4  |                |          |   | 0.3  |      |  |   |     |      |   |   |     |     
|                                                          |                                    |                                  |      |                |          |   |      |      |  |   |      |     
|                                                          | Net periodic benefit (income) cost |                                  | $    | 6.3            |          |   | $    | 3.6  |  |   | $    | (0.3 | ) |   | $    | (0.4 | )
|                                                          |                                    |                                  |      |                |          |   |      |      |  |   |      |     

|                                                          |                                    |                                 |       |                |          |   |       |      |  |   |      |      |   |   |      |      |  
|--------------------------------------------------------- | ---------------------------------- | ------------------------------- | ----- | -------------- | -------- | - | ----- | ---- |  | - | ---- | ---- | - | - | ---- | ---- | -
|                                                          |                                    | Nine Months Ended September 30, |      
|                                                          |                                    |                                 |      
|                                                          |                                    |                                 |       | Other          |         
|                                                          |                                    |                                 |       | Postretirement |         
|                                                          |                                    | Pension Benefits                |       |                | Benefits |  
|                                                          |                                    |                                 |       |                |          |  
|                                                          |                                    | 2005                            |       |                | 2004     |   |       | 2005 |  |   | 2004 |     
|                                                          |                                    |                                 |       |                |          |   |       |      |  |   |      |     
|Components of net periodic benefit (income) cost          |                                    |                                 |       |                |          |   |       |      |  |   |      |      |   |   |      |     
|Service cost                                              |                                    | $                               | 17.9  |                |          | $ | 11.7  |      |  | $ | 0.2  |      |   | $ | 0.3  |     
|Interest cost                                             |                                    |                                 | 25.3  |                |          |   | 17.1  |      |  |   | 1.3  |      |   |   | 1.3  |     
|Expected return on plan assets                            |                                    |                                 | (29.1 | )              |          |   | (22.3 | )    |  |   |     |      |   |   |     |     
|Amortization of unrecognized net (gain) loss              |                                    |                                 |      |                |          |   | 0.3   |      |  |   |     |      |   |   | (1.3 | )   
|Amortization of unrecognized prior service (benefit) cost |                                    |                                 | 0.7   |                |          |   | 0.9   |      |  |   | (1.1 | )    |   |   | (1.7 | )   
|Recognized net actuarial (gain) loss                      |                                    |                                 | 3.0   |                |          |   | 0.6   |      |  |   | (1.3 | )    |   |   |     |     
|Settlement/curtailment loss                               |                                    |                                 | 1.9   |                |          |   | 1.1   |      |  |   |     |      |   |   |     |     
|                                                          |                                    |                                 |       |                |          |   |       |      |  |   |      |     
|                                                          | Net periodic benefit (income) cost |                                 | $     | 19.7           |          |   | $     | 9.4  |  |   | $    | (0.9 | ) |   | $    | (1.4 | )
|                                                          |                                    |                                 |       |                |          |   |       |      |  |   |      |     





|          |                   
|--------- | ------------------
|Note 11  | Earnings Per Share



15



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##### Table of Contents



FISHER SCIENTIFIC INTERNATIONAL INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                                                                                     |                               |               |       |     |               |   |       |      |  |   |       |     |  |   |       |     | 
|---------------------------------------------------------------------------------------------------- | ----------------------------- | ------------- | ----- | --- | ------------- | - | ----- | ---- |  | - | ----- | --- |  | - | ----- | --- | 
|                                                                                                     |                               | Three Months  |       |     | Nine Months   |  
|                                                                                                     |                               | Ended         |       |     | Ended         |  
|                                                                                                     |                               | September 30, |       |     | September 30, |  
|                                                                                                     |                               |               |       |     |               |  
|                                                                                                     |                               | 2005          |       |     | 2004          |   |       | 2005 |  |   | 2004  |    
|                                                                                                     |                               |               |       |     |               |   |       |      |  |   |       |    
|Net income available to common shareholders                                                          |                               | $             | 93.5  |     |               | $ | 36.1  |      |  | $ | 271.9 |     |  | $ | 115.4 |    
|                                                                                                     |                               |               |       |     |               |   |       |      |  |   |       |    
|Weighted average common shares outstanding used in computing
    basic net income per common share   |                               |               | 122.2 |     |               |   | 99.2  |      |  |   | 120.9 |     |  |   | 75.7  |    
|Dilutive securities:                                                                                 |                               |               |       |     |               |   |       |      |  |   |       |     |  |   |       |    
|                                                                                                     | Stock options and warrants(a) |               |       | 4.3 |               |   |       | 5.7  |  |   |       | 4.6 |  |   |       | 4.9 | 
|                                                                                                     | Convertible notes             |               |       | 2.0 |               |   |       | 1.4  |  |   |       | 1.7 |  |   |       | 0.9 | 
|                                                                                                     |                               |               |       |     |               |   |       |      |  |   |       |    
|Weighted average common shares outstanding used in computing
    diluted net income per common share |                               |               | 128.5 |     |               |   | 106.3 |      |  |   | 127.2 |     |  |   | 81.5  |    
|                                                                                                     |                               |               |       |     |               |   |       |      |  |   |       |    
|Basic net income per common share                                                                    |                               | $             | 0.77  |     |               | $ | 0.36  |      |  | $ | 2.25  |     |  | $ | 1.52  |    
|                                                                                                     |                               |               |       |     |               |   |       |      |  |   |       |    
|Diluted net income per common share                                                                  |                               | $             | 0.73  |     |               | $ | 0.34  |      |  | $ | 2.14  |     |  | $ | 1.42  |    
|                                                                                                     |                               |               |       |     |               |   |       |      |  |   |       |    






|    |                                                                                                                                                                                                                                                                                                                                                                                                                     
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | The weighted average amount of outstanding antidilutive common
    stock options and warrants excluded from the computation of
    diluted net income per common share for the three and nine month
    periods ended September 30, 2005 was 1.9 million and
    2.0 million, respectively, and for the three and nine month
    periods ended September 30, 2004 was 0.4 million and
    0.8 million, respectively.





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FISHER SCIENTIFIC INTERNATIONAL INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                              |  |                    |       |  |                    |   |       |                    |  |   |       | 
|----------------------------- |  | ------------------ | ----- |  | ------------------ | - | ----- | ------------------ |  | - | ----- | 
|                              |  | 2.50%              |       |  | Floating Rate      |   |       | 3.25%              | 
|                              |  | Convertible Senior |       |  | Convertible Senior |   |       | Convertible Senior | 
|                              |  | Notes              |       |  | Debentures         |   |       | Subordinated Notes | 
|                              |  |                    |       |  |                    |   |       |                    | 
|Issuance amount (in millions) |  | $                  | 300.0 |  |                    | $ | 344.6 |                    |  | $ | 330.0 | 
|Conversion price per share    |  | $                  | 47.46 |  |                    | $ | 59.09 |                    |  | $ | 80.40 | 
|Trigger price                 |  | $                  | 56.96 |  |                    | $ | 76.82 |                    |  | $ | 96.48 | 

|                                 |  |                        |     |  |                    |  |     |                    |  |  |           |  |  |  |     | 
|-------------------------------- |  | ---------------------- | --- |  | ------------------ |  | --- | ------------------ |  |  | --------- |  |  |  | --- | 
|                                 |  | Total Potential Shares |    
|                                 |  |                        |    
|                                 |  | 2.50%                  |     |  | Floating Rate      |  |     | 3.25%              |  |  | Potential | 
|                                 |  | Convertible Senior     |     |  | Convertible Senior |  |     | Convertible Senior |  |  | Share     | 
|Future Fisher Common Stock Price |  | Notes                  |     |  | Debentures         |  |     | Subordinated Notes |  |  | Increase  | 
|                                 |  |                        |     |  |                    |  |     |                    |  |  |           | 
|$47.46                           |  |                        |    |  |                    |  |    |                    |  |  |          |  |  |  |    | 
|$48.46                           |  |                        | 0.1 |  |                    |  |    |                    |  |  |          |  |  |  | 0.1 | 
|$59.09                           |  |                        | 1.2 |  |                    |  |    |                    |  |  |          |  |  |  | 1.2 | 
|$60.09                           |  |                        | 1.3 |  |                    |  | 0.1 |                    |  |  |          |  |  |  | 1.4 | 
|$80.40                           |  |                        | 2.6 |  |                    |  | 1.5 |                    |  |  |          |  |  |  | 4.1 | 
|$81.40                           |  |                        | 2.6 |  |                    |  | 1.6 |                    |  |  | 0.1       |  |  |  | 4.3 | 
|$90.00                           |  |                        | 3.0 |  |                    |  | 2.0 |                    |  |  | 0.4       |  |  |  | 5.4 | 



|          |                              
|--------- | -----------------------------
|Note 12  | Restructuring Plan Activities





|                               |                     |              |     |     |         |   |      |          |  |   |       |       |               |      |      |      |   |   |     |     | 
|------------------------------ | ------------------- | ------------ | --- | --- | ------- | - | ---- | -------- |  | - | ----- | ----- | ------------- | ---- | ---- | ---- | - | - | --- | --- | 
|                               |                     | December 31, |     |     | 2005    |   |      | 2005     |  |   |       |       | September 30, |     
|                               |                     | 2004         |     |     | Charges |   |      | Payments |  |   | Other |       |               | 2005 |     
|                               |                     |              |     |     |         |   |      |          |  |   |       |       |               |      |     
|2004 Plan termination benefits |                     | $            | 3.3 |     |         | $ | 11.5 |          |  | $ | (11.2 | )     |               | $    | (0.3 | )    |   | $ | 3.3 |    
|2004 Plan other charges        |                     |              | 1.5 |     |         |   | 3.2  |          |  |   | (1.5  | )     |               |      | (1.3 | )    |   |   | 1.9 |    
|                               |                     |              |     |     |         |   |      |          |  |   |       |       |               |      |     
|                               | Total 2004 Plan     |              |     | 4.8 |         |   |      | 14.7     |  |   |       | (12.7 | )             |      |      | (1.6 | ) |   |     | 5.2 | 
|Other plans                    |                     |              | 1.5 |     |         |   | 2.9  |          |  |   | (2.9  | )     |               |      | (0.3 | )    |   |   | 1.2 |    
|                               |                     |              |     |     |         |   |      |          |  |   |       |       |               |      |     
|                               | Total restructuring |              | $   | 6.3 |         |   | $    | 17.6     |  |   | $     | (15.6 | )             |      | $    | (1.9 | ) |   | $   | 6.4 | 
|                               |                     |              |     |     |         |   |      |          |  |   |       |       |               |      |     





|          |                              
|--------- | -----------------------------
|Note 13  | Commitments and Contingencies



17



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FISHER SCIENTIFIC INTERNATIONAL INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)










|          |                    
|--------- | -------------------
|Note 14  | Segment Information





|           |                                  |                    |   |         |                   |  |   |       |         |  |      |         |         |  |   |         |         | 
|---------- | -------------------------------- | ------------------ | - | ------- | ----------------- |  | - | ----- | ------- |  | ---- | ------- | ------- |  | - | ------- | ------- | 
|           |                                  | Three Months Ended |   |         | Nine Months Ended | 
|           |                                  | September 30,      |   |         | September 30,     | 
|           |                                  |                    |   |         |                   | 
|           |                                  | 2005               |   |         | 2004              |  |   | 2005  |         |  | 2004 |        
|           |                                  |                    |   |         |                   |  |   |       |         |  |      |        
|Net Sales: |                                  |                    |   |         |                   |  |   |       |         |  |      |         |         |  |   |        
|           | Scientific products and services |                    | $ | 1,060.1 |                   |  | $ | 945.9 |         |  | $    | 3,074.3 |         |  | $ | 2,478.5 |        
|           | Healthcare products and services |                    |   | 317.5   |                   |  |   | 275.0 |         |  |      | 980.4   |         |  |   | 721.9   |        
|           | Laboratory workstations          |                    |   | 53.3    |                   |  |   | 44.5  |         |  |      | 150.1   |         |  |   | 126.3   |        
|           | Eliminations                     |                    |   | (17.9   | )                 |  |   | (11.1 | )       |  |      | (49.3   | )       |  |   | (20.7   | )      
|           |                                  |                    |   |         |                   |  |   |       |         |  |      |        
|           |                                  | Net Sales          |   | $       | 1,413.0           |  |   | $     | 1,254.3 |  |      | $       | 4,155.5 |  |   | $       | 3,306.0 | 
|           |                                  |                    |   |         |                   |  |   |       |         |  |      |        

18



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FISHER SCIENTIFIC INTERNATIONAL INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


|                  |                                   |                    |   |       |                   |  |   |       |       |  |      |       |       |  |   |       |       | 
|----------------- | --------------------------------- | ------------------ | - | ----- | ----------------- |  | - | ----- | ----- |  | ---- | ----- | ----- |  | - | ----- | ----- | 
|                  |                                   | Three Months Ended |   |       | Nine Months Ended | 
|                  |                                   | September 30,      |   |       | September 30,     | 
|                  |                                   |                    |   |       |                   | 
|                  |                                   | 2005               |   |       | 2004              |  |   | 2005  |       |  | 2004 |      
|                  |                                   |                    |   |       |                   |  |   |       |       |  |      |      
|Operating income: |                                   |                    |   |       |                   |  |   |       |       |  |      |       |       |  |   |      
|                  | Scientific products and services  |                    | $ | 144.9 |                   |  | $ | 112.3 |       |  | $    | 416.5 |       |  | $ | 255.1 |      
|                  | Healthcare products and services  |                    |   | 41.7  |                   |  |   | 32.4  |       |  |      | 126.3 |       |  |   | 56.5  |      
|                  | Laboratory workstations           |                    |   | (0.3  | )                 |  |   | 0.8   |       |  |      | 0.0   |       |  |   | 1.9   |      
|                  | Eliminations                      |                    |   | 0.1   |                   |  |   | (0.3  | )     |  |      | (0.1  | )     |  |   | (0.3  | )    
|                  |                                   |                    |   |       |                   |  |   |       |       |  |      |      
|                  |                                   | Segment sub-total  |   |       | 186.4             |  |   |       | 145.2 |  |      |       | 542.7 |  |   |       | 313.2 | 
|                  | Other charges:                    |                    |   |       |                   |  |   |       |       |  |      |       |       |  |   |       |      
|                  | Restructuring expense             |                    |   | (4.3  | )                 |  |   | (1.6  | )     |  |      | (17.6 | )     |  |   | (1.6  | )    
|                  | Acquisition and integration costs |                    |   | (12.5 | )                 |  |   | (8.2  | )     |  |      | (32.0 | )     |  |   | (9.7  | )    
|                  | Inventory step-up                 |                    |   | (0.6  | )                 |  |   | (44.4 | )     |  |      | (20.7 | )     |  |   | (60.3 | )    
|                  |                                   |                    |   |       |                   |  |   |       |       |  |      |      
|                  |                                   | Operating income   |   | $     | 169.0             |  |   | $     | 91.0  |  |      | $     | 472.4 |  |   | $     | 241.6 | 
|                  |                                   |                    |   |       |                   |  |   |       |       |  |      |      





|          |           
|--------- | ----------
|Note 15  | Income Tax



|                                                                       |                      |                   |       |      |      |   |       |      | 
|---------------------------------------------------------------------- | -------------------- | ----------------- | ----- | ---- | ---- | - | ----- | ---- | 
|                                                                       |                      | Nine Months Ended |      
|                                                                       |                      | September 30,     |      
|                                                                       |                      |                   |      
|                                                                       |                      | 2005              |       |      | 2004 |  
|                                                                       |                      |                   |       |      |      |  
|Taxes computed at statutory rate                                       |                      | $                 | 115.0 |      |      | $ | 53.4  |     
|Foreign tax rate differential and foreign losses not tax
    benefited |                      |                   | (31.6 | )    |      |   | (13.0 | )   
|State income taxes, net of federal benefit                             |                      |                   | 4.8   |      |      |   | 0.9   |     
|Export sales benefit                                                   |                      |                   | (4.1  | )    |      |   | (0.6  | )   
|Nondeductible permanent items, net                                     |                      |                   | 0.8   |      |      |   | 0.1   |     
|Tax audits settled                                                     |                      |                   | (6.8  | )    |      |   |      |     
|Foreign tax credits benefited                                          |                      |                   | (0.8  | )    |      |   | (1.1  | )   
|Other                                                                  |                      |                   | (3.4  | )    |      |   | 1.8   |     
|                                                                       |                      |                   |       |      |      |  
|                                                                       | Income tax provision |                   | $     | 73.9 |      |   | $     | 41.5 | 
|                                                                       |                      |                   |       |      |      |  

19



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FISHER SCIENTIFIC INTERNATIONAL INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|          |                                 
|--------- | --------------------------------
|Note 16  | Recent Accounting Pronouncements





Accounting for Income Taxes,




20



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FISHER SCIENTIFIC INTERNATIONAL INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








21



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|         |                                                                                          
|-------- | -----------------------------------------------------------------------------------------
|Item 2  | Managements Discussion and Analysis of Financial
    Condition and Results of Operations



Results of Operations




| |                   
| | ------------------
| | Executive Overview







| |          
| | ---------
| | Net Sales



|                                 |       |                                  |         |         |        |  |      |       |   |   |        |         |  |  |       |      |  
|-------------------------------- | ----- | -------------------------------- | ------- | ------- | ------ |  | ---- | ----- | - | - | ------ | ------- |  |  | ----- | ---- | -
|                                 |       | Three Months Ended September 30, |        
|                                 |       |                                  |        
|                                 |       | 2005                             |         |         | 2004   | 
|                                 |       |                                  |         |         |        | 
|                                 |       | Net                              |         |         | Sales  |  |      | Net   |   |   | Sales  |        
|                                 |       | Sales                            |         |         | Growth |  |      | Sales |   |   | Growth |        
|                                 |       |                                  |         |         |        |  |      |       |   |   |        |        
|Scientific products and services |       | $                                | 1,060.1 |         |        |  | 12.1 | %     |   | $ | 945.9  |         |  |  | 49.5  | %   
|Healthcare products and services |       |                                  | 317.5   |         |        |  | 15.5 | %     |   |   | 275.0  |         |  |  | 30.6  | %   
|Laboratory workstations          |       |                                  | 53.3    |         |        |  | 19.8 | %     |   |   | 44.5   |         |  |  | (11.7 | )%  
|Eliminations                     |       |                                  | (17.9   | )       |        |  |      |       |   |   | (11.1  | )       |  |  |       |     
|                                 |       |                                  |         |         |        |  |      |       |   |   |        |        
|                                 | Total |                                  | $       | 1,413.0 |        |  |      | 12.7  | % |   | $      | 1,254.3 |  |  |       | 41.3 | %
|                                 |       |                                  |         |         |        |  |      |       |   |   |        |        

22



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|                                 |       |                                 |         |         |        |  |      |       |   |   |         |         |  |  |       |      |  
|-------------------------------- | ----- | ------------------------------- | ------- | ------- | ------ |  | ---- | ----- | - | - | ------- | ------- |  |  | ----- | ---- | -
|                                 |       | Nine Months Ended September 30, |        
|                                 |       |                                 |        
|                                 |       | 2005                            |         |         | 2004   | 
|                                 |       |                                 |         |         |        | 
|                                 |       | Net                             |         |         | Sales  |  |      | Net   |   |   | Sales   |        
|                                 |       | Sales                           |         |         | Growth |  |      | Sales |   |   | Growth  |        
|                                 |       |                                 |         |         |        |  |      |       |   |   |         |        
|Scientific products and services |       | $                               | 3,074.3 |         |        |  | 24.0 | %     |   | $ | 2,478.5 |         |  |  | 37.4  | %   
|Healthcare products and services |       |                                 | 980.4   |         |        |  | 35.8 | %     |   |   | 721.9   |         |  |  | 12.8  | %   
|Laboratory workstations          |       |                                 | 150.1   |         |        |  | 18.8 | %     |   |   | 126.3   |         |  |  | (19.1 | )%  
|Eliminations                     |       |                                 | (49.3   | )       |        |  |      |       |   |   | (20.7   | )       |  |  |       |     
|                                 |       |                                 |         |         |        |  |      |       |   |   |         |        
|                                 | Total |                                 | $       | 4,155.5 |        |  |      | 25.7  | % |   | $       | 3,306.0 |  |  |       | 27.8 | %
|                                 |       |                                 |         |         |        |  |      |       |   |   |         |        

Consolidated.


Scientific Products and Services.


Healthcare Products and Services.


Laboratory Workstations.


23



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| |                 
| | ----------------
| | Operating Income



|                                  |                   |                                  |       |                       |           |   |       |       |  |  |      |      |   |  |      |      |  
|--------------------------------- | ----------------- | -------------------------------- | ----- | --------------------- | --------- | - | ----- | ----- |  |  | ---- | ---- | - |  | ---- | ---- | -
|                                  |                   | Three Months Ended September 30, |      
|                                  |                   |                                  |      
|                                  |                   |                                  |       | Operating Income as a |          
|                                  |                   |                                  |       | Percentage of         |          
|                                  |                   | Operating Income                 |       |                       | Net Sales |  
|                                  |                   |                                  |       |                       |           |  
|                                  |                   | 2005                             |       |                       | 2004      |   |       | 2005  |  |  | 2004 |     
|                                  |                   |                                  |       |                       |           |   |       |       |  |  |      |     
|Scientific products and services  |                   | $                                | 144.9 |                       |           | $ | 112.3 |       |  |  | 13.7 | %    |   |  | 11.9 | %   
|Healthcare products and services  |                   |                                  | 41.7  |                       |           |   | 32.4  |       |  |  | 13.1 | %    |   |  | 11.8 | %   
|Laboratory workstations           |                   |                                  | (0.3  | )                     |           |   | 0.8   |       |  |  | (0.6 | )%   |   |  | 1.8  | %   
|Eliminations                      |                   |                                  | 0.1   |                       |           |   | (0.3  | )     |  |  |      |      |   |  |      |     
|                                  |                   |                                  |       |                       |           |   |       |       |  |  |      |     
|                                  | Segment sub-total |                                  |       | 186.4                 |           |   |       | 145.2 |  |  |      | 13.2 | % |  |      | 11.6 | %
|Other charges:                    |                   |                                  |       |                       |           |   |       |       |  |  |      |      |   |  |      |     
|Restructuring expense             |                   |                                  | (4.3  | )                     |           |   | (1.6  | )     |  |  |      |      |   |  |      |     
|Acquisition and integration costs |                   |                                  | (12.5 | )                     |           |   | (8.2  | )     |  |  |      |      |   |  |      |     
|Inventory step-up                 |                   |                                  | (0.6  | )                     |           |   | (44.4 | )     |  |  |      |      |   |  |      |     
|                                  |                   |                                  |       |                       |           |   |       |       |  |  |      |     
|                                  | Operating income  |                                  | $     | 169.0                 |           |   | $     | 91.0  |  |  |      | 12.0 | % |  |      | 7.3  | %
|                                  |                   |                                  |       |                       |           |   |       |       |  |  |      |     

|                                  |                   |                                 |       |                     |           |   |       |       |  |  |      |      |   |  |      |     |  
|--------------------------------- | ----------------- | ------------------------------- | ----- | ------------------- | --------- | - | ----- | ----- |  |  | ---- | ---- | - |  | ---- | --- | -
|                                  |                   | Nine Months Ended September 30, |      
|                                  |                   |                                 |      
|                                  |                   |                                 |       | Operating Income as |          
|                                  |                   |                                 |       | a Percentage of     |          
|                                  |                   | Operating Income                |       |                     | Net Sales |  
|                                  |                   |                                 |       |                     |           |  
|                                  |                   | 2005                            |       |                     | 2004      |   |       | 2005  |  |  | 2004 |     
|                                  |                   |                                 |       |                     |           |   |       |       |  |  |      |     
|Scientific products and services  |                   | $                               | 416.5 |                     |           | $ | 255.1 |       |  |  | 13.5 | %    |   |  | 10.3 | %  
|Healthcare products and services  |                   |                                 | 126.3 |                     |           |   | 56.5  |       |  |  | 12.9 | %    |   |  | 7.8  | %  
|Laboratory workstations           |                   |                                 | 0.0   |                     |           |   | 1.9   |       |  |  | 0.0  | %    |   |  | 1.5  | %  
|Eliminations                      |                   |                                 | (0.1  | )                   |           |   | (0.3  | )     |  |  |      |      |   |  |      |    
|                                  |                   |                                 |       |                     |           |   |       |       |  |  |      |     
|                                  | Segment sub-total |                                 |       | 542.7               |           |   |       | 313.2 |  |  |      | 13.1 | % |  |      | 9.5 | %
|Other charges:                    |                   |                                 |       |                     |           |   |       |       |  |  |      |      |   |  |      |    
|Restructuring expense             |                   |                                 | (17.6 | )                   |           |   | (1.6  | )     |  |  |      |      |   |  |      |    
|Acquisition and integration costs |                   |                                 | (32.0 | )                   |           |   | (9.7  | )     |  |  |      |      |   |  |      |    
|Inventory step-up                 |                   |                                 | (20.7 | )                   |           |   | (60.3 | )     |  |  |      |      |   |  |      |    
|                                  |                   |                                 |       |                     |           |   |       |       |  |  |      |     
|                                  | Operating income  |                                 | $     | 472.4               |           |   | $     | 241.6 |  |  |      | 11.4 | % |  |      | 7.3 | %
|                                  |                   |                                 |       |                     |           |   |       |       |  |  |      |     

Consolidated.


Scientific Products and Services.


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Healthcare Products and Services.


Laboratory Workstations.


Restructuring Plan Activities






|                               |                     |              |     |     |         |   |      |          |  |   |       |       |               |      |      |      |   |   |     |     | 
|------------------------------ | ------------------- | ------------ | --- | --- | ------- | - | ---- | -------- |  | - | ----- | ----- | ------------- | ---- | ---- | ---- | - | - | --- | --- | 
|                               |                     | December 31, |     |     | 2005    |   |      | 2005     |  |   |       |       | September 30, |     
|                               |                     | 2004         |     |     | Charges |   |      | Payments |  |   | Other |       |               | 2005 |     
|                               |                     |              |     |     |         |   |      |          |  |   |       |       |               |      |     
|2004 Plan termination benefits |                     | $            | 3.3 |     |         | $ | 11.5 |          |  | $ | (11.2 | )     |               | $    | (0.3 | )    |   | $ | 3.3 |    
|2004 Plan other charges        |                     |              | 1.5 |     |         |   | 3.2  |          |  |   | (1.5  | )     |               |      | (1.3 | )    |   |   | 1.9 |    
|                               |                     |              |     |     |         |   |      |          |  |   |       |       |               |      |     
|                               | Total 2004 Plan     |              |     | 4.8 |         |   |      | 14.7     |  |   |       | (12.7 | )             |      |      | (1.6 | ) |   |     | 5.2 | 
|Other plans                    |                     |              | 1.5 |     |         |   | 2.9  |          |  |   | (2.9  | )     |               |      | (0.3 | )    |   |   | 1.2 |    
|                               |                     |              |     |     |         |   |      |          |  |   |       |       |               |      |     
|                               | Total restructuring |              | $   | 6.3 |         |   | $    | 17.6     |  |   | $     | (15.6 | )             |      | $    | (1.9 | ) |   | $   | 6.4 | 
|                               |                     |              |     |     |         |   |      |          |  |   |       |       |               |      |     



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Discontinued Operations




Interest Expense


1 8 1 8 1 8 1 8


Other Expense, net


1 8


Income Tax Provision




26



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Liquidity and Capital Resources






1 8 1 8 3 4 1 2




27



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##### Table of Contents





1 8






Critical Accounting Policies/ Estimates




28



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Recent Accounting Pronouncements






Accounting for Income Taxes




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|         |                                                               
|-------- | --------------------------------------------------------------
|Item 3  | Quantitative and Qualitative Disclosures About Market
    Risk









| |                              
| | -----------------------------
| | Interest Rate Risk Management



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| |                         
| | ------------------------
| | Currency Risk Management







| |                          
| | -------------------------
| | Commodity Risk Management










|         |                        
|-------- | -----------------------
|Item 4  | Controls and Procedures



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PART II  OTHER INFORMATION







|         |                                          
|-------- | -----------------------------------------
|Item 4  | Submission of Matters to Security Holders








|         |         
|-------- | --------
|Item 6  | Exhibits



| |                |                                                                                                                                
| | -------------- | -------------------------------------------------------------------------------------------------------------------------------
| | Exhibit 10.01: | Fisher Scientific International Inc. 2005 Equity and Incentive
    Plan Restricted Stock Unit Agreement.                       
|
| | Exhibit 31.01: | Certification pursuant to Section 302 of the Sarbanes-Oxley
    Act of 2002.                                                   
|
| | Exhibit 31.02: | Certification pursuant to Section 302 of the Sarbanes-Oxley
    Act of 2002.                                                   
|
| | Exhibit 32.01: | Certification pursuant to 18 U.S.C. Section 1350, as
    adopted pursuant to Section 906 of the Sarbanes-Oxley Act
    of 2002.
|
| | Exhibit 32.02: | Certification pursuant to 18 U.S.C. Section 1350, as
    adopted pursuant to Section 906 of the Sarbanes-Oxley Act
    of 2002.

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SIGNATURE






| |                                             
| | --------------------------------------------
| | Fisher Scientific
    International Inc.    
|
| | /s/ Kevin P. Clark                          
| |                                             
| | Kevin P. Clark                              
| | Vice President and Chief Financial Officer  
| | (Principal Financial and Accounting Officer)



33