##### 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 June 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












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FISHER SCIENTIFIC INTERNATIONAL INC.


FORM 10-Q


For the Quarter Ended June 30, 2005


INDEX


|                                                              |  |   |    |                                                                                                    |  |          |    | 
|------------------------------------------------------------- |  | - | -- | -------------------------------------------------------------------------------------------------- |  | -------- | -- | 
|                                                              |  |   |    |                                                                                                    |  | Page No. |   
|                                                              |  |   |    |                                                                                                    |  |          |   
|Part I                                                        |  |  |    | FINANCIAL INFORMATION:                                                                             |  |          |    | 
|Item 1                                                        |  |  |    | Financial Statements:                                                                              |  |          |    | 
|                                                              |  |   |    | Consolidated Statement of
    Operations  Three and Six Months Ended June 30,
    2005 and 2004   |  |          | 2  | 
|                                                              |  |   |    | Consolidated Balance Sheet 
    June 30, 2005 and December 31, 2004                               |  |          | 3  | 
|                                                              |  |   |    | Consolidated Statement of Cash
    Flows  Six Months Ended June 30, 2005 and
    2004             |  |          | 4  | 
|                                                              |  |   |    | Consolidated Statement of Changes in
    Stockholders Equity  Six Months Ended
    June 30, 2005 |  |          | 5  | 
|                                                              |  |   |    | Notes to Consolidated Financial
    Statements                                                     |  |          | 6  | 
|Item 2                                                        |  |  |    | Managements Discussion and Analysis
    of Financial Condition and Results of Operations          |  |          | 18 | 
|Item 3                                                        |  |  |    | Quantitative and Qualitative Disclosures
    About Market Risk                                     |  |          | 25 | 
|Item 4                                                        |  |  |    | Controls and Procedures                                                                            |  |          | 26 | 
|Part II                                                       |  |  |    | OTHER INFORMATION:                                                                                 |  |          |    | 
|Item 4                                                        |  |  |    | Submission of Matters to Security
    Holders                                                      |  |          | 27 | 
|Item 5                                                        |  |  |    | Other Information                                                                                  |  |          | 27 | 
|Item 6                                                        |  |  |    | Exhibits                                                                                           |  |          | 28 | 
|SIGNATURE                                                     |  |   | 29 |                                                                                                   
|EX-3.01 Restated Certificate of Incorporation                
|Ex-10.01 Form of Indemnification Agreement                   
|Ex-10.02 Amendment to Montrone Employment Agreement          
|Ex-10.03 Amendment to Meister Employment Agreement           
|Ex-10.04 Second Amendment to Della Penta Employment Agreement
|Ex-10.05 Amendment to Roellig Employment Agreement           
|Ex-10.06 Employment Agreement with Kevin P. Clark            
|EX-31.01 Certification pursuant to Section 302    of CEO     
|EX-31.02 Certification pursuant to Section 302 of CFO        
|EX-32.01 Section 906 Certification of CEO                    
|EX-32.02 Section 906 Certification of CFO                    



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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 |         |       | Six Months Ended |  
|                                                                                         |                                     | June 30,           |         |       | June 30,         |  
|                                                                                         |                                     |                    |         |       |                  |  
|                                                                                         |                                     | 2005               |         |       | 2004             |   |         | 2005 |  |   | 2004    |      
|                                                                                         |                                     |                    |         |       |                  |   |         |      |  |   |         |      
|Net sales                                                                                |                                     | $                  | 1,391.3 |       |                  | $ | 1,048.6 |      |  | $ | 2,742.5 |       |  | $ | 2,051.7 |     
|Cost of sales                                                                            |                                     |                    | 911.0   |       |                  |   | 746.3   |      |  |   | 1,812.8 |       |  |   | 1,478.8 |     
|Selling, general and administrative expenses                                             |                                     |                    | 307.7   |       |                  |   | 218.3   |      |  |   | 613.0   |       |  |   | 422.3   |     
|Restructuring expense                                                                    |                                     |                    | 5.0     |       |                  |   |        |      |  |   | 13.3    |       |  |   |        |     
|                                                                                         |                                     |                    |         |       |                  |   |         |      |  |   |         |      
|Operating income                                                                         |                                     |                    | 167.6   |       |                  |   | 84.0    |      |  |   | 303.4   |       |  |   | 150.6   |     
|Interest expense                                                                         |                                     |                    | 27.6    |       |                  |   | 23.0    |      |  |   | 58.2    |       |  |   | 45.0    |     
|Other expense, net                                                                       |                                     |                    | 28.7    |       |                  |   | 0.9     |      |  |   | 27.7    |       |  |   | 0.3     |     
|                                                                                         |                                     |                    |         |       |                  |   |         |      |  |   |         |      
|Income from continuing operations before income taxes                                    |                                     |                    | 111.3   |       |                  |   | 60.1    |      |  |   | 217.5   |       |  |   | 105.3   |     
|Income tax provision                                                                     |                                     |                    | 25.9    |       |                  |   | 16.6    |      |  |   | 56.0    |       |  |   | 29.0    |     
|                                                                                         |                                     |                    |         |       |                  |   |         |      |  |   |         |      
|Income from continuing operations                                                        |                                     |                    | 85.4    |       |                  |   | 43.5    |      |  |   | 161.5   |       |  |   | 76.3    |     
|Income from discontinued operations, including gain on disposal
    of $16.7, net of tax |                                     |                    | 16.0    |       |                  |   | 1.2     |      |  |   | 16.9    |       |  |   | 3.0     |     
|                                                                                         |                                     |                    |         |       |                  |   |         |      |  |   |         |      
|Net income                                                                               |                                     | $                  | 101.4   |       |                  | $ | 44.7    |      |  | $ | 178.4   |       |  | $ | 79.3    |     
|                                                                                         |                                     |                    |         |       |                  |   |         |      |  |   |         |      
|Earnings per share:                                                                      |                                     |                    |         |       |                  |   |         |      |  |   |         |       |  |   |         |     
|Basic net income per common share:                                                       |                                     |                    |         |       |                  |   |         |      |  |   |         |       |  |   |         |     
|                                                                                         | Income from continuing operations   |                    | $       | 0.71  |                  |   | $       | 0.68 |  |   | $       | 1.34  |  |   | $       | 1.19 | 
|                                                                                         | Income from discontinued operations |                    |         | 0.13  |                  |   |         | 0.02 |  |   |         | 0.14  |  |   |         | 0.05 | 
|                                                                                         |                                     |                    |         |       |                  |   |         |      |  |   |         |      
|                                                                                         | Net income                          |                    | $       | 0.84  |                  |   | $       | 0.70 |  |   | $       | 1.48  |  |   | $       | 1.24 | 
|                                                                                         |                                     |                    |         |       |                  |   |         |      |  |   |         |      
|Diluted net income per common share:                                                     |                                     |                    |         |       |                  |   |         |      |  |   |         |       |  |   |         |     
|                                                                                         | Income from continuing operations   |                    | $       | 0.67  |                  |   | $       | 0.62 |  |   | $       | 1.28  |  |   | $       | 1.11 | 
|                                                                                         | Income from discontinued operations |                    |         | 0.13  |                  |   |         | 0.02 |  |   |         | 0.13  |  |   |         | 0.04 | 
|                                                                                         |                                     |                    |         |       |                  |   |         |      |  |   |         |      
|                                                                                         | Net income                          |                    | $       | 0.80  |                  |   | $       | 0.64 |  |   | $       | 1.41  |  |   | $       | 1.15 | 
|                                                                                         |                                     |                    |         |       |                  |   |         |      |  |   |         |      
|Weighted average common stock outstanding:                                               |                                     |                    |         |       |                  |   |         |      |  |   |         |       |  |   |         |     
|                                                                                         | Basic                               |                    |         | 121.0 |                  |   |         | 64.2 |  |   |         | 120.3 |  |   |         | 63.9 | 
|                                                                                         |                                     |                    |         |       |                  |   |         |      |  |   |         |      
|                                                                                         | Diluted                             |                    |         | 127.0 |                  |   |         | 69.9 |  |   |         | 126.5 |  |   |         | 69.2 | 
|                                                                                         |                                     |                    |         |       |                  |   |         |      |  |   |         |      



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FISHER SCIENTIFIC INTERNATIONAL INC.





CONSOLIDATED BALANCE SHEET


(In millions, except per share data)


|                                     |                                                                                                                                                                                                                           |                            |                                            |         |              |         |         |         |         |         | 
|------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------- | ------------------------------------------ | ------- | ------------ | ------- | ------- | ------- | ------- | ------- | 
|                                     |                                                                                                                                                                                                                           | June 30,                   |                                            |         | December 31, |        
|                                     |                                                                                                                                                                                                                           | 2005                       |                                            |         | 2004         |        
|                                     |                                                                                                                                                                                                                           |                            |                                            |         |              |        
|                                     |                                                                                                                                                                                                                           | (Unaudited)                |                                            |         |             
|ASSETS                              
|Current assets:                      |                                                                                                                                                                                                                           |                            |                                            |         |              |         |         |        
|                                     | Cash and cash equivalents                                                                                                                                                                                                 |                            | $                                          | 155.2   |              |         | $       | 162.5   |        
|                                     | Accounts receivable, net                                                                                                                                                                                                  |                            |                                            | 691.5   |              |         |         | 632.8   |        
|                                     | Inventories                                                                                                                                                                                                               |                            |                                            | 612.7   |              |         |         | 622.4   |        
|                                     | Other current assets                                                                                                                                                                                                      |                            |                                            | 285.1   |              |         |         | 264.5   |        
|                                     | Assets held for sale                                                                                                                                                                                                      |                            |                                            |        |              |         |         | 94.2    |        
|                                     |                                                                                                                                                                                                                           |                            |                                            |         |              |        
|                                     |                                                                                                                                                                                                                           | Total current assets       |                                            |         | 1,744.5      |         |         |         | 1,776.4 |        
|Property, plant and equipment, net   |                                                                                                                                                                                                                           |                            | 758.6                                      |         |              |         | 785.4   |        
|Goodwill                             |                                                                                                                                                                                                                           |                            | 3,694.9                                    |         |              |         | 3,756.9 |        
|Intangible assets, net               |                                                                                                                                                                                                                           |                            | 1,529.0                                    |         |              |         | 1,565.4 |        
|Other assets                         |                                                                                                                                                                                                                           |                            | 192.6                                      |         |              |         | 206.1   |        
|                                     |                                                                                                                                                                                                                           |                            |                                            |         |              |        
|                                     |                                                                                                                                                                                                                           | Total assets               |                                            | $       | 7,919.6      |         |         | $       | 8,090.2 |        
|                                     |                                                                                                                                                                                                                           |                            |                                            |         |              |        
|                                    
|LIABILITIES AND STOCKHOLDERS EQUITY
|Current liabilities:                 |                                                                                                                                                                                                                           |                            |                                            |         |              |         |         |        
|                                     | Short-term debt                                                                                                                                                                                                           |                            | $                                          | 37.6    |              |         | $       | 39.4    |        
|                                     | Accounts payable                                                                                                                                                                                                          |                            |                                            | 479.7   |              |         |         | 468.5   |        
|                                     | Accrued and other current liabilities                                                                                                                                                                                     |                            |                                            | 415.1   |              |         |         | 452.9   |        
|                                     | Liabilities held for sale                                                                                                                                                                                                 |                            |                                            |        |              |         |         | 8.9     |        
|                                     |                                                                                                                                                                                                                           |                            |                                            |         |              |        
|                                     |                                                                                                                                                                                                                           | Total current liabilities  |                                            |         | 932.4        |         |         |         | 969.7   |        
|Long-term debt                       |                                                                                                                                                                                                                           |                            | 1,984.1                                    |         |              |         | 2,309.2 |        
|Other long-term liabilities          |                                                                                                                                                                                                                           |                            | 936.8                                      |         |              |         | 941.3   |        
|                                     |                                                                                                                                                                                                                           |                            |                                            |         |              |        
|                                     |                                                                                                                                                                                                                           | Total liabilities          |                                            |         | 3,853.3      |         |         |         | 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; 122,024,047 and 118,928,952 shares issued;
    121,769,072 and 118,673,977 shares outstanding at June 30,
    2005 and December 31, 2004, respectively) |                            |                                            | 1.1     |              |         |         | 1.1     |        
|                                     | Capital in excess of par value                                                                                                                                                                                            |                            |                                            | 4,122.7 |              |         |         | 4,006.1 |        
|                                     | Accumulated deficit                                                                                                                                                                                                       |                            |                                            | (81.7   | )            |         |         | (260.1  | )      
|                                     | Accumulated other comprehensive income                                                                                                                                                                                    |                            |                                            | 28.2    |              |         |         | 126.9   |        
|                                     | Treasury stock, at cost (254,975 shares at June 30,
    2005 and December 31, 2004)                                                                                                                                       |                            |                                            | (4.0    | )            |         |         | (4.0    | )      
|                                     |                                                                                                                                                                                                                           |                            |                                            |         |              |        
|                                     |                                                                                                                                                                                                                           | Total stockholders equity |                                            |         | 4,066.3      |         |         |         | 3,870.0 |        
|                                     |                                                                                                                                                                                                                           |                            |                                            |         |              |        
|                                     |                                                                                                                                                                                                                           |                            | Total liabilities and stockholders equity |         | $            | 7,919.6 |         |         | $       | 8,090.2 | 
|                                     |                                                                                                                                                                                                                           |                            |                                            |         |              |        



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FISHER SCIENTIFIC INTERNATIONAL INC.





CONSOLIDATED STATEMENT OF CASH FLOWS


(In millions)


(Unaudited)


|                                                             |                                                                                       |                                                                              |                                       |        |        |       |       |        |        |       |  
|------------------------------------------------------------ | ------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------- | ------------------------------------- | ------ | ------ | ----- | ----- | ------ | ------ | ----- | -
|                                                             |                                                                                       | Six Months Ended                                                             |                                      
|                                                             |                                                                                       | June 30,                                                                     |                                      
|                                                             |                                                                                       |                                                                              |                                      
|                                                             |                                                                                       | 2005                                                                         |                                       |        | 2004   |      
|                                                             |                                                                                       |                                                                              |                                       |        |        |      
|Cash flows from operating activities:                        |                                                                                       |                                                                              |                                       |        |        |       |       |       
|                                                             | Net income                                                                            |                                                                              | $                                     | 178.4  |        |       | $     | 79.3   |       
|                                                             | Adjustments to reconcile net income to net cash provided by
    operating activities: |                                                                              |                                       |        |        |       |       |        |       
|                                                             |                                                                                       | Depreciation and amortization                                                |                                       |        | 93.6   |       |       |        | 51.3   |      
|                                                             |                                                                                       | Amortization of debt discount and write off of debt premium                  |                                       |        | (6.0   | )     |       |        |       |      
|                                                             |                                                                                       | Redemption premiums and deferred financing fees                              |                                       |        | 37.3   |       |       |        |       |      
|                                                             |                                                                                       | Deferred income taxes                                                        |                                       |        | 27.6   |       |       |        | 9.5    |      
|                                                             |                                                                                       | Gain on sale of business and investments                                     |                                       |        | (25.5  | )     |       |        |       |      
|                                                             |                                                                                       | Loss on sale of property and impairment of property, plant and
    equipment |                                       |        | 7.1    |       |       |        | 0.6    |      
|                                                             |                                                                                       | Restructuring                                                                |                                       |        | 1.1    |       |       |        |       |      
|                                                             |                                                                                       | Changes in working capital                                                   |                                       |        |        |       |       |        |        |      
|                                                             |                                                                                       |                                                                              | Accounts receivable, net              |        |        | (74.9 | )     |        |        | (22.2 | )
|                                                             |                                                                                       |                                                                              | Inventories                           |        |        | (5.6  | )     |        |        | 6.4   |  
|                                                             |                                                                                       |                                                                              | Other current assets                  |        |        | (5.1  | )     |        |        | (4.9  | )
|                                                             |                                                                                       |                                                                              | Accounts payable                      |        |        | 18.1  |       |        |        | 29.3  |  
|                                                             |                                                                                       |                                                                              | Accrued and other current liabilities |        |        | (24.9 | )     |        |        | (5.5  | )
|                                                             |                                                                                       | Other assets and liabilities                                                 |                                       |        | (3.1   | )     |       |        | (6.9   | )    
|                                                             |                                                                                       |                                                                              |                                       |        |        |      
|                                                             |                                                                                       | Cash provided by operating activities                                        |                                       |        | 218.1  |       |       |        | 136.9  |      
|                                                             |                                                                                       |                                                                              |                                       |        |        |      
|Cash flows from investing activities:                        |                                                                                       |                                                                              |                                       |        |        |       |       |       
|                                                             | Acquisitions, net of cash acquired                                                    |                                                                              |                                       | (5.8   | )      |       |       | (418.3 | )     
|                                                             | Capital expenditures                                                                  |                                                                              |                                       | (72.4  | )      |       |       | (30.9  | )     
|                                                             | Proceeds from sale of a business                                                      |                                                                              |                                       | 109.5  |        |       |       |       |       
|                                                             | Proceeds from sale of property, plant and equipment                                   |                                                                              |                                       | 8.6    |        |       |       |       |       
|                                                             | Other                                                                                 |                                                                              |                                       | (1.0   | )      |       |       | (2.4   | )     
|                                                             |                                                                                       |                                                                              |                                       |        |        |      
|                                                             |                                                                                       | Cash provided by (used in) investing activities                              |                                       |        | 38.9   |       |       |        | (451.6 | )    
|                                                             |                                                                                       |                                                                              |                                       |        |        |      
|Cash flows from financing activities:                        |                                                                                       |                                                                              |                                       |        |        |       |       |       
|                                                             | Proceeds from stock options exercised                                                 |                                                                              |                                       | 98.6   |        |       |       | 27.2   |       
|                                                             | Long-term debt proceeds                                                               |                                                                              |                                       |       |        |       |       | 330.3  |       
|                                                             | Repayments of long-term debt                                                          |                                                                              |                                       | (314.7 | )      |       |       | (80.4  | )     
|                                                             | Change in short-term debt, net                                                        |                                                                              |                                       | (5.0   | )      |       |       | (4.2   | )     
|                                                             | Debt redemption premium and other costs                                               |                                                                              |                                       | (32.6  | )      |       |       |       |       
|                                                             | Deferred financing costs                                                              |                                                                              |                                       | (0.4   | )      |       |       | (8.8   | )     
|                                                             | Proceeds from accounts receivable securitization, net                                 |                                                                              |                                       |       |        |       |       | 20.6   |       
|                                                             |                                                                                       |                                                                              |                                       |        |        |      
|                                                             |                                                                                       | Cash provided by (used in) financing activities                              |                                       |        | (254.1 | )     |       |        | 284.7  |      
|                                                             |                                                                                       |                                                                              |                                       |        |        |      
|Effect of exchange rate changes on cash and cash equivalents |                                                                                       |                                                                              | (10.2                                 | )      |        |       | (1.3  | )     
|                                                             |                                                                                       |                                                                              |                                       |        |        |      
|Decrease in cash and cash equivalents                        |                                                                                       |                                                                              | (7.3                                  | )      |        |       | (31.3 | )     
|Cash and cash equivalents  beginning of period              |                                                                                       |                                                                              | 162.5                                 |        |        |       | 83.8  |       
|                                                             |                                                                                       |                                                                              |                                       |        |        |      
|Cash and cash equivalents  end of period                    |                                                                                       | $                                                                            | 155.2                                 |        |        | $     | 52.5  |       
|                                                             |                                                                                       |                                                                              |                                       |        |        |      



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FISHER SCIENTIFIC INTERNATIONAL INC.





CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS
EQUITY


(In millions, except share data)


(Unaudited)


|                           |                                                 |              |             |            |           |   |     |           |           |   |             |      |  |             |       |       |                 |   |         |        |   |   |        |       |  |        |       |       |       |  |         |   |  |   |      |   |  |   |         |       |  
|-------------------------- | ----------------------------------------------- | ------------ | ----------- | ---------- | --------- | - | --- | --------- | --------- | - | ----------- | ---- |  | ----------- | ----- | ----- | --------------- | - | ------- | ------ | - | - | ------ | ----- |  | ------ | ----- | ----- | ----- |  | ------- | - |  | - | ---- | - |  | - | ------- | ----- | -
|                           |                                                 |              |             | Capital in |           |   |     |           | Shares to |   |             |      |  | Accumulated |       |       | Treasury Stock, |   |         |       
|                           |                                                 | Common Stock |             |            | Excess of |   |     | Shares    |           |   | be          |      |  |             |       | Other |                 |   | at Cost |        |   |  
|                           |                                                 |              |             |            | Par       |   |     | Deposited |           |   | Distributed |      |  | Accumulated |       |       | Comprehensive   |   |         |        |   |   |       
|                           |                                                 | Shares       |             |            | Amount    |   |     | 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                                      |              |             |           |           |   |     |          |           |   |             |     |  |             |       |      |                 |   |         |       |   |   |        | 178.4 |  |        |       |      |       |  |         |  |  |   |      |  |  |   |         | 178.4 |  
|                           | Foreign currency translation adjustment         |              |             |           |           |   |     |          |           |   |             |     |  |             |       |      |                 |   |         |       |   |   |        |      |  |        |       | (98.9 | )     |  |         |  |  |   |      |  |  |   |         | (98.9 | )
|                           | Unrealized investment losses, net of tax        |              |             |           |           |   |     |          |           |   |             |     |  |             |       |      |                 |   |         |       |   |   |        |      |  |        |       | (0.5  | )     |  |         |  |  |   |      |  |  |   |         | (0.5  | )
|                           | Unrealized gain on cash flow hedges, net of tax |              |             |           |           |   |     |          |           |   |             |     |  |             |       |      |                 |   |         |       |   |   |        |      |  |        |       | 0.7   |       |  |         |  |  |   |      |  |  |   |         | 0.7   |  
|                           | Proceeds from stock options                     |              |             | 3,095,095  |           |   |     |          |           |   |             | 97.8 |  |             |       |      |                 |   |         |       |   |   |        |      |  |        |       |      |       |  |         |  |  |   |      |  |  |   |         | 97.8  |  
|                           | Tax benefit from stock options                  |              |             |           |           |   |     |          |           |   |             | 18.1 |  |             |       |      |                 |   |         |       |   |   |        |      |  |        |       |      |       |  |         |  |  |   |      |  |  |   |         | 18.1  |  
|                           | Compensation expense                            |              |             |           |           |   |     |          |           |   |             | 0.7  |  |             |       |      |                 |   |         |       |   |   |        |      |  |        |       |      |       |  |         |  |  |   |      |  |  |   |         | 0.7   |  
|                           | Trust activity                                  |              |             |           |           |   |     |          |           |   |             |     |  |             |       | 5.6   |                 |   |         | (5.6   | ) |   |        |      |  |        |       |      |       |  |         |  |  |   |      |  |  |   |         |      |  
|                           |                                                 |              |             |            |           |   |     |           |           |   |             |      |  |             |       |       |                 |   |         |        |   |   |        |       |  |        |       |       |       | 
|Balance at June 30, 2005   |                                                 |              | 122,024,047 |            |           | $ | 1.1 |           |           | $ | 4,122.7     |      |  | $           | (18.4 | )     |                 | $ | 18.4    |        |   | $ | (81.7  | )     |  | $      | 28.2  |       |       |  | 254,975 |   |  | $ | (4.0 | ) |  | $ | 4,066.3 |      
|                           |                                                 |              |             |            |           |   |     |           |           |   |             |      |  |             |       |       |                 |   |         |        |   |   |        |       |  |        |       |       |       | 



5



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##### Table of Contents



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 biochemicals 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, group-purchasing
    organizations, 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









6



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##### Table of Contents



FISHER SCIENTIFIC INTERNATIONAL INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








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





|                                                                                                                 |         |              |       |      |            |   |      |      |  |   |       |      |  |   |       |      | 
|---------------------------------------------------------------------------------------------------------------- | ------- | ------------ | ----- | ---- | ---------- | - | ---- | ---- |  | - | ----- | ---- |  | - | ----- | ---- | 
|                                                                                                                 |         | Three Months |       |      | Six Months |  
|                                                                                                                 |         | Ended        |       |      | Ended      |  
|                                                                                                                 |         | June 30,     |       |      | June 30,   |  
|                                                                                                                 |         |              |       |      |            |  
|                                                                                                                 |         | 2005         |       |      | 2004       |   |      | 2005 |  |   | 2004  |     
|                                                                                                                 |         |              |       |      |            |   |      |      |  |   |       |     
|Net income, as reported                                                                                          |         | $            | 101.4 |      |            | $ | 44.7 |      |  | $ | 178.4 |      |  | $ | 79.3  |     
|Add: stock-based employee compensation included in net income,
    net of tax(a)                                 |         |              | 1.2   |      |            |   |     |      |  |   | 1.7   |      |  |   |      |     
|Deduct: stock-based compensation expense determined using fair
    value based method for all awards, net of tax |         |              | (6.9  | )    |            |   | (7.2 | )    |  |   | (11.8 | )    |  |   | (14.5 | )   
|                                                                                                                 |         |              |       |      |            |   |      |      |  |   |       |     
|Net income, pro forma                                                                                            |         | $            | 95.7  |      |            | $ | 37.5 |      |  | $ | 168.3 |      |  | $ | 64.8  |     
|                                                                                                                 |         |              |       |      |            |   |      |      |  |   |       |     
|Net income per common share                                                                                      |         |              |       |      |            |   |      |      |  |   |       |      |  |   |       |     
|As reported:                                                                                                     |         |              |       |      |            |   |      |      |  |   |       |      |  |   |       |     
|                                                                                                                 | Basic   |              | $     | 0.84 |            |   | $    | 0.70 |  |   | $     | 1.48 |  |   | $     | 1.24 | 
|                                                                                                                 |         |              |       |      |            |   |      |      |  |   |       |     
|                                                                                                                 | Diluted |              | $     | 0.80 |            |   | $    | 0.64 |  |   | $     | 1.41 |  |   | $     | 1.15 | 
|                                                                                                                 |         |              |       |      |            |   |      |      |  |   |       |     
|Pro forma:                                                                                                       |         |              |       |      |            |   |      |      |  |   |       |      |  |   |       |     
|                                                                                                                 | Basic   |              | $     | 0.79 |            |   | $    | 0.58 |  |   | $     | 1.40 |  |   | $     | 1.01 | 
|                                                                                                                 |         |              |       |      |            |   |      |      |  |   |       |     
|                                                                                                                 | Diluted |              | $     | 0.75 |            |   | $    | 0.54 |  |   | $     | 1.33 |  |   | $     | 0.94 | 
|                                                                                                                 |         |              |       |      |            |   |      |      |  |   |       |     

7



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##### Table of Contents



FISHER SCIENTIFIC INTERNATIONAL INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)







|    |                                                                                                                                                                                                                                                                                                           
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | Stock-based compensation expense for the three and six month
    periods ended June 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.





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







|                            |         |               |         |      |               |   |         |      | 
|--------------------------- | ------- | ------------- | ------- | ---- | ------------- | - | ------- | ---- | 
|                            |         | Three Months  |         |      | Six Months    |  
|                            |         | Ended         |         |      | Ended         |  
|                            |         | June 30, 2004 |         |      | June 30, 2004 |  
|                            |         |               |         |      |               |  
|Net sales                   |         | $             | 1,310.4 |      |               | $ | 2,569.1 |     
|Net income                  |         | $             | 54.7    |      |               | $ | 85.2    |     
|Net income per common share |         |               |         |      |               |   |         |     
|                            | Basic   |               | $       | 0.48 |               |   | $       | 0.74 | 
|                            | Diluted |               | $       | 0.45 |               |   | $       | 0.70 | 



8



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##### Table of Contents



FISHER SCIENTIFIC INTERNATIONAL INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






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



|                  |       |          |       |       |              |   |       |       | 
|----------------- | ----- | -------- | ----- | ----- | ------------ | - | ----- | ----- | 
|                  |       | June 30, |       |       | December 31, |  
|                  |       | 2005     |       |       | 2004         |  
|                  |       |          |       |       |              |  
|Raw materials     |       | $        | 129.2 |       |              | $ | 136.0 |      
|Work in process   |       |          | 65.7  |       |              |   | 65.3  |      
|Finished products |       |          | 417.8 |       |              |   | 421.1 |      
|                  |       |          |       |       |              |  
|                  | Total |          | $     | 612.7 |              |   | $     | 622.4 | 
|                  |       |          |       |       |              |  



|         |     
|-------- | ----
|Note 6  | Debt



|                                                                                                                                                                               |                      |          |       |         |              |   |       |         | 
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | -------------------- | -------- | ----- | ------- | ------------ | - | ----- | ------- | 
|                                                                                                                                                                               |                      | June 30, |       |         | December 31, |  
|                                                                                                                                                                               |                      | 2005     |       |         | 2004         |  
|                                                                                                                                                                               |                      |          |       |         |              |  
|Term Facility                                                                                                                                                                  |                      | $        | 386.0 |         |              | $ | 393.0 |        
|Other debt                                                                                                                                                                     |                      |          | 37.1  |         |              |   | 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 |        
|81/8% Senior
    Subordinated Notes due 2012 (includes $0.3 million and
    $5.9 million of unamortized debt premium at June 30,
    2005 and December 31, 2004, respectively) |                      |          | 14.2  |         |              |   | 309.9 |        
|8% Senior Subordinated Notes due 2013 (includes
    $9.8 million and $10.3 million of unamortized debt
    premium at June 30, 2005 and December 31, 2004,
    respectively)   |                      |          | 309.8 |         |              |   | 310.3 |        
|63/4% Senior
    Subordinated Notes due 2014                                                                                                                                   |                      |          | 300.0 |         |              |   | 300.0 |        
|                                                                                                                                                                               |                      |          |       |         |              |  
|                                                                                                                                                                               | Total debt           |          |       | 2,021.7 |              |   |       | 2,348.6 | 
|Less: short-term portion                                                                                                                                                       |                      |          | (37.6 | )       |              |   | (39.4 | )      
|                                                                                                                                                                               |                      |          |       |         |              |  
|                                                                                                                                                                               | Total long-term debt |          | $     | 1,984.1 |              |   | $     | 2,309.2 | 
|                                                                                                                                                                               |                      |          |       |         |              |  





9



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##### Table of Contents



FISHER SCIENTIFIC INTERNATIONAL INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




1 8 1 8




1 8




|         |       
|-------- | ------
|Note 7  | Equity





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##### Table of Contents



FISHER SCIENTIFIC INTERNATIONAL INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


Note 8  Divestiture






|                                      |                   |             |      |      |              |   |      |      | 
|------------------------------------- | ----------------- | ----------- | ---- | ---- | ------------ | - | ---- | ---- | 
|                                      |                   | (As of      |      |      |             
|                                      |                   | Divestiture |      |      | December 31, |  
|                                      |                   | Date)       |      |      | 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 |      |   | Six Months |  
|                                                |  | Ended        |      |   | Ended      |  
|                                                |  | June 30,     |      |   | June 30,   |  
|                                                |  |              |      |   |            |  
|                                                |  | 2005         |      |   | 2004       |   |     | 2005 |  |   | 2004 | 
|                                                |  |              |      |   |            |   |     |      |  |   |      | 
|Sales                                           |  | $            |     |   |            | $ | 9.0 |      |  | $ | 10.4 |  |  | $ | 16.9 | 
|Income before taxes                             |  |              | (0.7 | ) |            |   | 1.4 |      |  |   | 0.4  |  |  |   | 3.2  | 
|Provision for income taxes                      |  |              |     |   |            |   | 0.2 |      |  |   | 0.2  |  |  |   | 0.2  | 
|Income from discontinued operations, net of tax |  |              | (0.7 | ) |            |   | 1.2 |      |  |   | 0.2  |  |  |   | 3.0  | 



|         |                       
|-------- | ----------------------
|Note 9  | Employee Benefit Plans



11



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FISHER SCIENTIFIC INTERNATIONAL INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                                          |                                    |                             |      |                |          |   |      |      |  |   |      |      |   |   |      |      |  
|--------------------------------------------------------- | ---------------------------------- | --------------------------- | ---- | -------------- | -------- | - | ---- | ---- |  | - | ---- | ---- | - | - | ---- | ---- | -
|                                                          |                                    | Three Months Ended June 30, |     
|                                                          |                                    |                             |     
|                                                          |                                    |                             |      | Other          |         
|                                                          |                                    |                             |      | Postretirement |         
|                                                          |                                    | Pension Benefits            |      |                | Benefits |  
|                                                          |                                    |                             |      |                |          |  
|                                                          |                                    | 2005                        |      |                | 2004     |   |      | 2005 |  |   | 2004 |     
|                                                          |                                    |                             |      |                |          |   |      |      |  |   |      |     
|Components of net periodic benefit (income) cost          |                                    |                             |      |                |          |   |      |      |  |   |      |      |   |   |      |     
|Service cost                                              |                                    | $                           | 6.0  |                |          | $ | 3.6  |      |  | $ |     |      |   | $ | 0.1  |     
|Interest cost                                             |                                    |                             | 8.6  |                |          |   | 5.4  |      |  |   | 0.4  |      |   |   | 0.4  |     
|Expected return on plan assets                            |                                    |                             | (9.7 | )              |          |   | (7.1 | )    |  |   |     |      |   |   |     |     
|Amortization of unrecognized net (gain) loss              |                                    |                             |     |                |          |   | 0.1  |      |  |   |     |      |   |   | (0.4 | )   
|Amortization of unrecognized prior service (benefit) cost |                                    |                             | 0.2  |                |          |   | 0.3  |      |  |   | (0.3 | )    |   |   | (0.6 | )   
|Recognized net actuarial (gain) loss                      |                                    |                             | 0.8  |                |          |   | 0.2  |      |  |   | (0.5 | )    |   |   |     |     
|Settlement/curtailment loss                               |                                    |                             | 1.1  |                |          |   | 0.4  |      |  |   |     |      |   |   |     |     
|                                                          |                                    |                             |      |                |          |   |      |      |  |   |      |     
|                                                          | Net periodic benefit (income) cost |                             | $    | 7.0            |          |   | $    | 2.9  |  |   | $    | (0.4 | ) |   | $    | (0.5 | )
|                                                          |                                    |                             |      |                |          |   |      |      |  |   |      |     

|                                                          |                                    |                           |       |                |          |   |       |      |  |   |      |      |   |   |      |      |  
|--------------------------------------------------------- | ---------------------------------- | ------------------------- | ----- | -------------- | -------- | - | ----- | ---- |  | - | ---- | ---- | - | - | ---- | ---- | -
|                                                          |                                    | Six Months Ended June 30, |      
|                                                          |                                    |                           |      
|                                                          |                                    |                           |       | Other          |         
|                                                          |                                    |                           |       | Postretirement |         
|                                                          |                                    | Pension Benefits          |       |                | Benefits |  
|                                                          |                                    |                           |       |                |          |  
|                                                          |                                    | 2005                      |       |                | 2004     |   |       | 2005 |  |   | 2004 |     
|                                                          |                                    |                           |       |                |          |   |       |      |  |   |      |     
|Components of net periodic benefit (income) cost          |                                    |                           |       |                |          |   |       |      |  |   |      |      |   |   |      |     
|Service cost                                              |                                    | $                         | 11.9  |                |          | $ | 7.3   |      |  | $ | 0.1  |      |   | $ | 0.2  |     
|Interest cost                                             |                                    |                           | 17.0  |                |          |   | 10.8  |      |  |   | 0.9  |      |   |   | 0.8  |     
|Expected return on plan assets                            |                                    |                           | (19.5 | )              |          |   | (14.3 | )    |  |   |     |      |   |   |     |     
|Amortization of unrecognized net (gain) loss              |                                    |                           |      |                |          |   | 0.2   |      |  |   |     |      |   |   | (0.9 | )   
|Amortization of unrecognized prior service (benefit) cost |                                    |                           | 0.5   |                |          |   | 0.6   |      |  |   | (0.7 | )    |   |   | (1.1 | )   
|Recognized net actuarial (gain) loss                      |                                    |                           | 2.0   |                |          |   | 0.4   |      |  |   | (0.9 | )    |   |   |     |     
|Settlement/curtailment (gain) loss                        |                                    |                           | 1.5   |                |          |   | 0.8   |      |  |   |     |      |   |   |     |     
|                                                          |                                    |                           |       |                |          |   |       |      |  |   |      |     
|                                                          | Net periodic benefit (income) cost |                           | $     | 13.4           |          |   | $     | 5.8  |  |   | $    | (0.6 | ) |   | $    | (1.0 | )
|                                                          |                                    |                           |       |                |          |   |       |      |  |   |      |     





|          |                   
|--------- | ------------------
|Note 10  | Earnings Per Share



12



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##### Table of Contents



FISHER SCIENTIFIC INTERNATIONAL INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                                                                                     |                               |              |       |     |            |   |      |      |  |   |       |     |  |   |      |     | 
|---------------------------------------------------------------------------------------------------- | ----------------------------- | ------------ | ----- | --- | ---------- | - | ---- | ---- |  | - | ----- | --- |  | - | ---- | --- | 
|                                                                                                     |                               | Three Months |       |     | Six Months |  
|                                                                                                     |                               | Ended        |       |     | Ended      |  
|                                                                                                     |                               | June 30,     |       |     | June 30,   |  
|                                                                                                     |                               |              |       |     |            |  
|                                                                                                     |                               | 2005         |       |     | 2004       |   |      | 2005 |  |   | 2004  |    
|                                                                                                     |                               |              |       |     |            |   |      |      |  |   |       |    
|Net income available to common shareholders                                                          |                               | $            | 101.4 |     |            | $ | 44.7 |      |  | $ | 178.4 |     |  | $ | 79.3 |    
|                                                                                                     |                               |              |       |     |            |   |      |      |  |   |       |    
|Weighted average common shares outstanding used in computing
    basic net income per common share   |                               |              | 121.0 |     |            |   | 64.2 |      |  |   | 120.3 |     |  |   | 63.9 |    
|Dilutive securities:                                                                                 |                               |              |       |     |            |   |      |      |  |   |       |     |  |   |      |    
|                                                                                                     | Stock options and warrants(a) |              |       | 4.5 |            |   |      | 4.6  |  |   |       | 4.6 |  |   |      | 4.6 | 
|                                                                                                     | Convertible notes             |              |       | 1.5 |            |   |      | 1.1  |  |   |       | 1.6 |  |   |      | 0.7 | 
|                                                                                                     |                               |              |       |     |            |   |      |      |  |   |       |    
|Weighted average common shares outstanding used in computing
    diluted net income per common share |                               |              | 127.0 |     |            |   | 69.9 |      |  |   | 126.5 |     |  |   | 69.2 |    
|                                                                                                     |                               |              |       |     |            |   |      |      |  |   |       |    
|Basic net income per common share                                                                    |                               | $            | 0.84  |     |            | $ | 0.70 |      |  | $ | 1.48  |     |  | $ | 1.24 |    
|                                                                                                     |                               |              |       |     |            |   |      |      |  |   |       |    
|Diluted net income per common share                                                                  |                               | $            | 0.80  |     |            | $ | 0.64 |      |  | $ | 1.41  |     |  | $ | 1.15 |    
|                                                                                                     |                               |              |       |     |            |   |      |      |  |   |       |    






|    |                                                                                                                                                                                                                                                                                                                                                                                                        
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(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 six month
    periods ended June 30, 2005 was 1.3 million and
    1.5 million respectively, and for the three and six month
    periods ended June 30, 2004 was 0.1 million and
    0.5 million, respectively.





|                              |  |                   |       |               |                    |   |                   |                    |  |   |       | 
|----------------------------- |  | ----------------- | ----- | ------------- | ------------------ | - | ----------------- | ------------------ |  | - | ----- | 
|                              |  |                   |       | Floating Rate |                    |   | 3.25% Convertible |                   
|                              |  | 2.50% Convertible |       |               | Convertible Senior |   |                   | Senior             | 
|                              |  | 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 | 

13



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##### Table of Contents



FISHER SCIENTIFIC INTERNATIONAL INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


|                                 |  |                        |     |               |                    |  |                   |                    |  |           |          |  |  |  |     | 
|-------------------------------- |  | ---------------------- | --- | ------------- | ------------------ |  | ----------------- | ------------------ |  | --------- | -------- |  |  |  | --- | 
|                                 |  | Total Potential Shares |    
|                                 |  |                        |    
|                                 |  |                        |     | Floating Rate |                    |  | 3.25% Convertible |                    |  | Potential |         
|                                 |  | 2.50% Convertible      |     |               | Convertible Senior |  |                   | Senior             |  |           | Share    | 
|Future Fisher Common Stock Price |  | Senior 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 11  | Restructuring Plan Activities





|                               |                     |              |     |     |         |   |     |          |  |   |       |       |          |      |      |      |   |   |     |     | 
|------------------------------ | ------------------- | ------------ | --- | --- | ------- | - | --- | -------- |  | - | ----- | ----- | -------- | ---- | ---- | ---- | - | - | --- | --- | 
|                               |                     | December 31, |     |     | 2005    |   |     | 2005     |  |   |       |       | June 30, |     
|                               |                     | 2004         |     |     | Charges |   |     | Payments |  |   | Other |       |          | 2005 |     
|                               |                     |              |     |     |         |   |     |          |  |   |       |       |          |      |     
|2004 Plan termination benefits |                     | $            | 3.3 |     |         | $ | 7.8 |          |  | $ | (6.4  | )     |          | $    | (0.1 | )    |   | $ | 4.6 |    
|2004 Plan other charges        |                     |              | 1.5 |     |         |   | 2.9 |          |  |   | (1.5  | )     |          |      | (1.3 | )    |   |   | 1.6 |    
|                               |                     |              |     |     |         |   |     |          |  |   |       |       |          |      |     
|                               | Total 2004 Plan     |              |     | 4.8 |         |   |     | 10.7     |  |   |       | (7.9  | )        |      |      | (1.4 | ) |   |     | 6.2 | 
|Other plans                    |                     |              | 1.5 |     |         |   | 2.6 |          |  |   | (2.8  | )     |          |      | (0.3 | )    |   |   | 1.0 |    
|                               |                     |              |     |     |         |   |     |          |  |   |       |       |          |      |     
|                               | Total restructuring |              | $   | 6.3 |         |   | $   | 13.3     |  |   | $     | (10.7 | )        |      | $    | (1.7 | ) |   | $   | 7.2 | 
|                               |                     |              |     |     |         |   |     |          |  |   |       |       |          |      |     





|          |                    
|--------- | -------------------
|Note 12  | Segment Information



14



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FISHER SCIENTIFIC INTERNATIONAL INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|           |                                  |                    |   |         |                  |  |   |       |         |  |      |         |         |  |   |         |         | 
|---------- | -------------------------------- | ------------------ | - | ------- | ---------------- |  | - | ----- | ------- |  | ---- | ------- | ------- |  | - | ------- | ------- | 
|           |                                  | Three Months Ended |   |         | Six Months Ended | 
|           |                                  | June 30,           |   |         | June 30,         | 
|           |                                  |                    |   |         |                  | 
|           |                                  | 2005               |   |         | 2004             |  |   | 2005  |         |  | 2004 |        
|           |                                  |                    |   |         |                  |  |   |       |         |  |      |        
|Net Sales: |                                  |                    |   |         |                  |  |   |       |         |  |      |         |         |  |   |        
|           | Scientific products and services |                    | $ | 1,030.4 |                  |  | $ | 790.6 |         |  | $    | 2,014.2 |         |  | $ | 1,532.6 |        
|           | Healthcare products and services |                    |   | 326.2   |                  |  |   | 219.4 |         |  |      | 662.9   |         |  |   | 446.9   |        
|           | Laboratory workstations          |                    |   | 50.5    |                  |  |   | 43.4  |         |  |      | 96.8    |         |  |   | 81.8    |        
|           | Eliminations                     |                    |   | (15.8   | )                |  |   | (4.8  | )       |  |      | (31.4   | )       |  |   | (9.6    | )      
|           |                                  |                    |   |         |                  |  |   |       |         |  |      |        
|           |                                  | Net Sales          |   | $       | 1,391.3          |  |   | $     | 1,048.6 |  |      | $       | 2,742.5 |  |   | $       | 2,051.7 | 
|           |                                  |                    |   |         |                  |  |   |       |         |  |      |        

|                  |                                   |                           |   |       |                  |  |   |      |      |  |      |       |       |  |   |       |       | 
|----------------- | --------------------------------- | ------------------------- | - | ----- | ---------------- |  | - | ---- | ---- |  | ---- | ----- | ----- |  | - | ----- | ----- | 
|                  |                                   | Three Months Ended        |   |       | Six Months Ended | 
|                  |                                   | June 30,                  |   |       | June 30,         | 
|                  |                                   |                           |   |       |                  | 
|                  |                                   | 2005                      |   |       | 2004             |  |   | 2005 |      |  | 2004 |      
|                  |                                   |                           |   |       |                  |  |   |      |      |  |      |      
|Operating income: |                                   |                           |   |       |                  |  |   |      |      |  |      |       |       |  |   |      
|                  | Scientific products and services  |                           | $ | 142.2 |                  |  | $ | 76.2 |      |  | $    | 271.6 |       |  | $ | 142.8 |      
|                  | Healthcare products and services  |                           |   | 41.6  |                  |  |   | 13.7 |      |  |      | 84.6  |       |  |   | 24.1  |      
|                  | Laboratory workstations           |                           |   | 0.1   |                  |  |   | 1.3  |      |  |      | 0.3   |       |  |   | 1.1   |      
|                  | Eliminations                      |                           |   | (0.2  | )                |  |   |     |      |  |      | (0.2  | )     |  |   |      |      
|                  |                                   |                           |   |       |                  |  |   |      |      |  |      |      
|                  |                                   | Segment sub-total         |   |       | 183.7            |  |   |      | 91.2 |  |      |       | 356.3 |  |   |       | 168.0 | 
|                 
|                  | Other charges:                    |                           |   |       |                  |  |   |      |      |  |      |       |       |  |   |       |      
|                  | Restructuring expense             |                           |   | (5.0  | )                |  |   |     |      |  |      | (13.3 | )     |  |   |      |      
|                  | Acquisition and integration costs |                           |   | (8.1  | )                |  |   | (1.5 | )    |  |      | (19.5 | )     |  |   | (1.5  | )    
|                  | Inventory step-up                 |                           |   | (3.0  | )                |  |   | (5.7 | )    |  |      | (20.1 | )     |  |   | (15.9 | )    
|                  |                                   |                           |   |       |                  |  |   |      |      |  |      |      
|                  |                                   | Adjusted operating income |   | $     | 167.6            |  |   | $    | 84.0 |  |      | $     | 303.4 |  |   | $     | 150.6 | 
|                  |                                   |                           |   |       |                  |  |   |      |      |  |      |      





|          |                                 
|--------- | --------------------------------
|Note 13  | Recent Accounting Pronouncements




15



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FISHER SCIENTIFIC INTERNATIONAL INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




Accounting for Income Taxes






16



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##### Table of Contents



FISHER SCIENTIFIC INTERNATIONAL INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








|          |                  
|--------- | -----------------
|Note 14  | Subsequent Events

1 8








17



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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 June 30, |        
|                                 |       |                             |        
|                                 |       | 2005                        |         |         | 2004   | 
|                                 |       |                             |         |         |        | 
|                                 |       | Net                         |         |         | Sales  |  |      | Net   |   |   | Sales  |        
|                                 |       | Sales                       |         |         | Growth |  |      | Sales |   |   | Growth |        
|                                 |       |                             |         |         |        |  |      |       |   |   |        |        
|Scientific products and services |       | $                           | 1,030.4 |         |        |  | 30.3 | %     |   | $ | 790.6  |         |  |  | 31.9  | %   
|Healthcare products and services |       |                             | 326.2   |         |        |  | 48.7 | %     |   |   | 219.4  |         |  |  | 2.7   | %   
|Laboratory workstations          |       |                             | 50.5    |         |        |  | 16.4 | %     |   |   | 43.4   |         |  |  | (22.2 | )%  
|Eliminations                     |       |                             | (15.8   | )       |        |  |      |       |   |   | (4.8   | )       |  |  |       |     
|                                 |       |                             |         |         |        |  |      |       |   |   |        |        
|                                 | Total |                             | $       | 1,391.3 |        |  |      | 32.7  | % |   | $      | 1,048.6 |  |  |       | 21.3 | %
|                                 |       |                             |         |         |        |  |      |       |   |   |        |        

|                                 |       |                           |         |         |        |  |      |       |   |   |         |         |  |  |       |      |  
|-------------------------------- | ----- | ------------------------- | ------- | ------- | ------ |  | ---- | ----- | - | - | ------- | ------- |  |  | ----- | ---- | -
|                                 |       | Six Months Ended June 30, |        
|                                 |       |                           |        
|                                 |       | 2005                      |         |         | 2004   | 
|                                 |       |                           |         |         |        | 
|                                 |       | Net                       |         |         | Sales  |  |      | Net   |   |   | Sales   |        
|                                 |       | Sales                     |         |         | Growth |  |      | Sales |   |   | Growth  |        
|                                 |       |                           |         |         |        |  |      |       |   |   |         |        
|Scientific products and services |       | $                         | 2,014.2 |         |        |  | 31.4 | %     |   | $ | 1,532.6 |         |  |  | 30.8  | %   
|Healthcare products and services |       |                           | 662.9   |         |        |  | 48.3 | %     |   |   | 446.9   |         |  |  | 4.0   | %   
|Laboratory workstations          |       |                           | 96.8    |         |        |  | 18.3 | %     |   |   | 81.8    |         |  |  | (22.6 | )%  
|Eliminations                     |       |                           | (31.4   | )       |        |  |      |       |   |   | (9.6    | )       |  |  |       |     
|                                 |       |                           |         |         |        |  |      |       |   |   |         |        
|                                 | Total |                           | $       | 2,742.5 |        |  |      | 33.7  | % |   | $       | 2,051.7 |  |  |       | 20.8 | %
|                                 |       |                           |         |         |        |  |      |       |   |   |         |        

Consolidated.


18



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Scientific Products and Services.


Healthcare Products and Services.


Laboratory Workstations.




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



|                                  |                           |                             |       |              |              |   |      |      |  |  |      |      |   |  |     |     |  
|--------------------------------- | ------------------------- | --------------------------- | ----- | ------------ | ------------ | - | ---- | ---- |  |  | ---- | ---- | - |  | --- | --- | -
|                                  |                           | Three Months Ended June 30, |      
|                                  |                           |                             |      
|                                  |                           |                             |       | Operating    |             
|                                  |                           |                             |       | Income as    |             
|                                  |                           |                             |       | a Percentage |             
|                                  |                           | Operating Income            |       |              | of Net Sales |  
|                                  |                           |                             |       |              |              |  
|                                  |                           | 2005                        |       |              | 2004         |   |      | 2005 |  |  | 2004 |     
|                                  |                           |                             |       |              |              |   |      |      |  |  |      |     
|Scientific products and services  |                           | $                           | 142.2 |              |              | $ | 76.2 |      |  |  | 13.8 | %    |   |  | 9.6 | %  
|Healthcare products and services  |                           |                             | 41.6  |              |              |   | 13.7 |      |  |  | 12.8 | %    |   |  | 6.2 | %  
|Laboratory workstations           |                           |                             | 0.1   |              |              |   | 1.3  |      |  |  | 0.2  | %    |   |  | 3.0 | %  
|Eliminations                      |                           |                             | (0.2  | )            |              |   |     |      |  |  |      |      |   |  |     |    
|                                  |                           |                             |       |              |              |   |      |      |  |  |      |     
|                                  | Segment subtotal          |                             |       | 183.7        |              |   |      | 91.2 |  |  |      | 13.2 | % |  |     | 8.7 | %
|Other charges:                    |                           |                             |       |              |              |   |      |      |  |  |      |      |   |  |     |    
|Restructuring expense             |                           |                             | (5.0  | )            |              |   |     |      |  |  |      |      |   |  |     |    
|Acquisition and integration costs |                           |                             | (8.1  | )            |              |   | (1.5 | )    |  |  |      |      |   |  |     |    
|Inventory step-up                 |                           |                             | (3.0  | )            |              |   | (5.7 | )    |  |  |      |      |   |  |     |    
|                                  |                           |                             |       |              |              |   |      |      |  |  |      |     
|                                  | Adjusted operating income |                             | $     | 167.6        |              |   | $    | 84.0 |  |  |      | 12.0 | % |  |     | 8.0 | %
|                                  |                           |                             |       |              |              |   |      |      |  |  |      |     

19



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|                                  |                           |                           |       |              |              |   |       |       |  |  |      |      |   |  |     |     |  
|--------------------------------- | ------------------------- | ------------------------- | ----- | ------------ | ------------ | - | ----- | ----- |  |  | ---- | ---- | - |  | --- | --- | -
|                                  |                           | Six Months Ended June 30, |      
|                                  |                           |                           |      
|                                  |                           |                           |       | Operating    |             
|                                  |                           |                           |       | Income as    |             
|                                  |                           |                           |       | a Percentage |             
|                                  |                           | Operating Income          |       |              | of Net Sales |  
|                                  |                           |                           |       |              |              |  
|                                  |                           | 2005                      |       |              | 2004         |   |       | 2005  |  |  | 2004 |     
|                                  |                           |                           |       |              |              |   |       |       |  |  |      |     
|Scientific products and services  |                           | $                         | 271.6 |              |              | $ | 142.8 |       |  |  | 13.5 | %    |   |  | 9.3 | %  
|Healthcare products and services  |                           |                           | 84.6  |              |              |   | 24.1  |       |  |  | 12.8 | %    |   |  | 5.4 | %  
|Laboratory workstations           |                           |                           | 0.3   |              |              |   | 1.1   |       |  |  | 0.3  | %    |   |  | 1.3 | %  
|Eliminations                      |                           |                           | (0.2  | )            |              |   |      |       |  |  |      |      |   |  |     |    
|                                  |                           |                           |       |              |              |   |       |       |  |  |      |     
|                                  | Segment subtotal          |                           |       | 356.3        |              |   |       | 168.0 |  |  |      | 13.0 | % |  |     | 8.2 | %
|Other charges:                    |                           |                           |       |              |              |   |       |       |  |  |      |      |   |  |     |    
|Restructuring expense             |                           |                           | (13.3 | )            |              |   |      |       |  |  |      |      |   |  |     |    
|Acquisition and integration costs |                           |                           | (19.5 | )            |              |   | (1.5  | )     |  |  |      |      |   |  |     |    
|Inventory step-up                 |                           |                           | (20.1 | )            |              |   | (15.9 | )     |  |  |      |      |   |  |     |    
|                                  |                           |                           |       |              |              |   |       |       |  |  |      |     
|                                  | Adjusted operating income |                           | $     | 303.4        |              |   | $     | 150.6 |  |  |      | 11.1 | % |  |     | 7.3 | %
|                                  |                           |                           |       |              |              |   |       |       |  |  |      |     

Consolidated.


Scientific Products and Services.


Healthcare Products and Services.


Laboratory Workstations.


20



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##### Table of Contents



Restructuring Plan Activities






|                               |                     |              |     |     |         |   |     |          |  |   |       |       |          |      |      |      |   |   |     |     | 
|------------------------------ | ------------------- | ------------ | --- | --- | ------- | - | --- | -------- |  | - | ----- | ----- | -------- | ---- | ---- | ---- | - | - | --- | --- | 
|                               |                     | December 31, |     |     | 2005    |   |     | 2005     |  |   |       |       | June 30, |     
|                               |                     | 2004         |     |     | Charges |   |     | Payments |  |   | Other |       |          | 2005 |     
|                               |                     |              |     |     |         |   |     |          |  |   |       |       |          |      |     
|2004 Plan termination benefits |                     | $            | 3.3 |     |         | $ | 7.8 |          |  | $ | (6.4  | )     |          | $    | (0.1 | )    |   | $ | 4.6 |    
|2004 Plan other charges        |                     |              | 1.5 |     |         |   | 2.9 |          |  |   | (1.5  | )     |          |      | (1.3 | )    |   |   | 1.6 |    
|                               |                     |              |     |     |         |   |     |          |  |   |       |       |          |      |     
|                               | Total 2004 Plan     |              |     | 4.8 |         |   |     | 10.7     |  |   |       | (7.9  | )        |      |      | (1.4 | ) |   |     | 6.2 | 
|Other plans                    |                     |              | 1.5 |     |         |   | 2.6 |          |  |   | (2.8  | )     |          |      | (0.3 | )    |   |   | 1.0 |    
|                               |                     |              |     |     |         |   |     |          |  |   |       |       |          |      |     
|                               | Total restructuring |              | $   | 6.3 |         |   | $   | 13.3     |  |   | $     | (10.7 | )        |      | $    | (1.7 | ) |   | $   | 7.2 | 
|                               |                     |              |     |     |         |   |     |          |  |   |       |       |          |      |     



Discontinued Operations




Interest Expense


1 8


Other Expense, net


1 8


Income Tax Provision




21



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##### Table of Contents







| |                                
| | -------------------------------
| | Liquidity and Capital Resources





1 8






22



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##### Table of Contents



1 8




Critical Accounting Policies/ Estimates




Recent Accounting Pronouncements







23



---



##### Table of Contents





Accounting for Income Taxes








24



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









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





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







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



25



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##### Table of Contents












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



26



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##### Table of Contents






PART II  OTHER INFORMATION







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








Item 5  Other Information






27



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



| |                |                                                                                                                                                     
| | -------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------
| | Exhibit 3.01:  | Restated Certificate of Incorporation of Fisher Scientific
    International Inc.                                                                   
|
| | Exhibit 10.01: | Form of Indemnification Agreement.                                                                                                                  
|
| | Exhibit 10.02: | Amendment to Employment Agreement, dated as of August 2,
    2005, between Fisher Scientific International Inc. and Paul M.
    Montrone.           
|
| | Exhibit 10.03: | Amendment to Employment Agreement, dated as of August 2,
    2005, between Fisher Scientific International Inc. and Paul M.
    Meister.            
|
| | Exhibit 10.04: | Second Amendment to Employment Agreement, dated as of
    August 2, 2005, between Fisher Scientific International
    Inc. and David T. Della Penta.
|
| | Exhibit 10.05: | Amendment to Employment Agreement, dated as of August 2,
    2005, between Fisher Scientific International Inc. and Mark D.
    Roellig.            
|
| | Exhibit 10.06: | Employment Agreement, dated as of August 2, 2005, between
    Fisher Scientific International Inc. and Kevin P. Clark.                              
|
| | 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.                                                                        

28



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| |                |                                                                                                                                
| | -------------- | -------------------------------------------------------------------------------------------------------------------------------
| | 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.

29



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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)



30