<PAGE>

================================================================================

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-K/A

(Mark One)

|X|  Annual report pursuant to Section 13 or 15(d) of the Securities Exchange
     Act of 1934

     For the fiscal year ended December 31, 1998 or
                               -----------------

|_|  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 0-1052
                            ------

                              MILLIPORE CORPORATION
             (Exact name of registrant as specified in its charter)

     Massachusetts                                     04-2170233
(State or Other Jurisdiction of             (I.R.S. Employer Identification No.)
Incorporation or Organization)

80 Ashby Road, Bedford, MA                                 01730
(Address of principal executive offices)                 (Zip Code)

                                 (781) 533-6000
              (Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

       Title of Class                      Name of Exchange on Which Registered
       --------------                      ------------------------------------
Common Stock, $1.00 Par Value                  New York Stock Exchange, Inc.

Securities registered pursuant to Section 12(g) of the Act: None

     Indicate by check mark whether the registrant: (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.  Yes |X|  No |_|

     Indicate by check mark if disclosure of delinquent filers pursuant to Item
405 of Regulation S-K is not contained herein and will not be contained, to the
best of registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of Form 10-K or any amendment to this Form
10-K.         |_|

     As of February 26, 1999, the aggregate market value of the registrant's
voting stock held by non-affiliates of the registrant was approximately
$1,048,190,000 based on the closing price on that date on the New York Stock
Exchange.

     As of February 26, 1999, 44,074,626 shares of the registrant's Common Stock
were outstanding.

                       DOCUMENTS INCORPORATED BY REFERENCE

                  Document                         Incorporated into Form 10-K/A
                  --------                         -----------------------------
Definitive Proxy Statement, dated March 19, 1999            Part III

================================================================================
<PAGE>

                                     PART I

     Item 1. Business.

The Company

          Millipore Corporation was incorporated under the laws of Massachusetts
     on May 3, 1954. Millipore is a market leader in the field of separations
     technology and develops, manufactures and sells products which are used
     primarily for the analysis, identification, monitoring and purification of
     liquids and gasses. In addition, Millipore sells products to control
     critical aspects of the manufacturing process for integrated circuits
     (semiconductors). Millipore's separations products are based on a variety
     of membrane and other technologies that effect separations through physical
     and chemical methods and are applied primarily to biological and
     environmental laboratory research and testing, to pharmaceutical and food
     and beverage research, manufacturing and quality control and to the
     purification and control of process liquids and gasses for integrated
     circuit ("IC") manufacturing operations. Millipore's IC process control
     products use electro-mechanical, pressure differential and related
     technologies to permit IC manufacturers to monitor and control the flow and
     condition of process gasses used in the IC fabrication process. Millipore
     is an integrated multinational manufacturer of these products. Millipore's
     role as a market leader has been recognized by independent surveys of
     filtration markets. Unless the context otherwise requires, the terms
     "Millipore" or the "Company" mean Millipore Corporation and its
     subsidiaries.

Information About Operating Segments

          Millipore operates in two business segments: Biopharmaceutical &
     Research and Microelectronics. Millipore has traditionally organized its
     business and management structures around the markets and customers which
     it serves. The Biopharmaceutical & Research segment includes products and
     services sold to pharmaceutical companies, biotechnology companies, food
     and beverage companies, university and government laboratories and research
     institutes; the Microelectronics segment includes products and services
     sold to semiconductor fabrication companies as well as OEM and material
     suppliers to those companies. While there is some overlap in the products
     sold to each business segment, the economic environments in which these two
     segments operate are distinct. The Biopharmaceutical and Research business
     segment is characterized by customer needs for reliability and consistency
     of standardized products used in validated production processes and for
     assured continuity and comparability of analytical results; this segment
     has demonstrated relatively stable patterns of revenue growth and
     profitability. While technical innovation is important to the
     Biopharmaceutical and Research business segment, the adoption of new
     technologies and products often requires that a lengthy validation process
     be completed prior to adoption. On the other hand, the Microelectronics
     business segment is characterized by rapid technological change and
     economic cycles with dramatic shifts in revenue growth and decline with
     corresponding impacts on profitability. During 1998 approximately 74% of
     Millipore's net sales were made to customers in the Biopharmaceutical &
     Research segment and approximately 26% to customers in the Microelectronics
     segment. In addition, approximately 60% of Millipore's net sales were made
     to customers outside the United States. Industry and geographic segment
     information is discussed in Note Q to the Millipore Corporation
     Consolidated


                                       2
<PAGE>

     Financial Statements (the "Financial Statements") included in Item 8 below,
     which Note is hereby incorporated herein by reference.

Products, Technologies and Applications

          Millipore sells more than 10,000 products. Most of the Company's
     products are listed in its catalogs and are sold as standard items, systems
     or devices. For special applications, the Company assembles custom
     products, usually based upon standard modules and components. In certain
     instances, the Company also designs and engineers process filtration
     systems and process chromatography systems to meet specific needs of the
     customer. The Company's products also include, in some cases, proprietary
     software designed to operate and/or integrate certain of its other products
     or systems (particularly membrane ultrafiltration and chromatography
     systems and gas monitoring equipment).

Biopharmaceutical & Research Business Segment. The products that the Company
     sells to customers in the Biopharmaceutical & Research business segment
     include disc filters, OEM membranes, filter devices and ancillary equipment
     and supplies, filter-based test kits, laboratory water purification
     systems, cartridge filters and housings of various sizes and
     configurations, process liquid chromatography systems and process
     filtration systems.

          The principal separation technologies utilized by products sold to
     Biopharmaceutical & Research segment customers are based on membrane
     filters and on certain chemistries and resins as well as liquid
     chromatography. Membranes are used to filter either the wanted or the
     unwanted particulate, bacterial, molecular or viral entities from fluids.
     Some of the Company's newer membrane materials also use affinity,
     ion-exchange or electrical charge mechanisms to effect the desired
     separation. Membranes are incorporated into both microfiltration and
     ultrafiltration devices, cartridges and modules of different configurations
     to address a variety of customer fluid separation needs. The Company's
     laboratory water purification products combine membrane, resin and other
     separations technologies to provide ultrapure water for critical
     applications.

          Customers use the Company's products in the Biopharmaceutical &
     Research segment to gain knowledge about a molecule, compound or
     micro-organism by detecting, identifying and quantifying the relevant
     components of a fluid sample. In addition Millipore products are used for
     the purification of small and large volumes of critical fluids. The
     Company's products are also used by pharmaceutical manufacturing and
     research operations to isolate and purify specific components of fluid
     streams for analysis and to concentrate identified compounds for further
     processing. The Company's laboratory water purification products are used
     by customers to provide ultrapure water for critical laboratory analysis
     and for clinical testing.

Microelectronics Business Segment. The products sold to customers in the
     Microelectronics business segment include polymeric cartridge filters and
     housings of various sizes, materials and configurations, metal filters,
     precision liquid dispense filtration pumps, resin based gas purifiers and
     gas monitors as well as mass flow controllers and pressure and vacuum
     control products.

          Membrane products sold to customers in the Microelectronics business
     segment are based on essentially the same membrane technologies described
     above but with membranes and housings


                                       3
<PAGE>

     made from distinct polymers as required by the nature of the liquids being
     purified. Gas purification and monitoring products rely on resin based
     chemistries which react with process gasses to either remove contaminants
     or to monitor the purity of the process gas. In addition, the Company's IC
     process control products use thermal-dynamic, pressure differential and
     electromechanical technologies to create pressurized or vacuum environments
     to precisely measure and control the flow of IC process gases.

          The Company's separations products are used by Microelectronics
     customers in manufacturing operations to remove contaminants in a process
     liquid stream and to purify and precisely dispense process liquids during
     critical IC fabrication operations. The Company's products are also used in
     process gas applications to precisely monitor and control the purity of and
     rate at which process gases are introduced into the IC process chamber, the
     conditions in the chamber during processing and the rate at which the gas
     is evacuated from the IC process chamber.

Customers and Markets

          Within each customer group served by Millipore, the Company focuses
     its sales efforts upon those segments where customers have specific
     requirements which can be satisfied by the Company's products.

Biopharmaceutical & Research Business Segment. Major customer groups served by
     this business segment include pharmaceutical/biotechnology and food and
     beverage companies and government, university and private research and
     testing analytical laboratories. The Company's products are used by the
     pharmaceutical/biotechnology industry in sterilization, including virus
     reduction, and sterility testing of products such as antibiotics, vaccines,
     vitamins and protein solutions; concentration and fractionation of
     biological molecules such as vaccines and blood protein products; cell
     harvesting; isolation and purification of compounds from complex mixtures
     and the purification of water for laboratory use. The Company's membrane
     products also play an important role in the development of new drugs by
     offering customers a continuum of products capable of being scaled-up to
     match customer needs at different stages during the development process
     from laboratory research through full scale drug production. In addition,
     Millipore has developed and is developing products for biopharmaceutical
     applications in order to meet the purification requirements of the
     biotechnology industry. The Company also sells its analytical products,
     filter cartridges and laboratory water purification systems to chemical
     manufacturers and processors.

          The Food and Beverage Industry uses the Company's products for quality
     control and process applications principally to monitor for microbiological
     contamination; and to prevent spoilage by removal of bacteria and yeast
     from products such as wine, beer and bottled juices and water.

          Universities, governments and private and corporate research and
     testing laboratories, environmental science laboratories and regulatory
     agencies purchase a wide range of the Company's products. Typical
     applications include: purification of proteins; cell culture, and cell
     structure studies and interactions; concentration of biological molecules;
     fractionation of complex molecular mixtures; and collection of
     microorganisms. The Company's water purification products are used
     extensively by these organizations to prepare high purity water for
     sensitive assays and the preparation of tissue culture media.


                                       4
<PAGE>

          Sales to the Biopharmaceutical & Research Business Segment accounted
     for approximately 74% of Millipore's 1998 consolidated sales and 65% of
     1997 consolidated sales.

Microelectronics Business Segment. Major customer groups served by this business
     segment include IC manufacturers and OEM manufacturers that sell a variety
     of equipment used in the manufacture of ICs to IC manufacturers. IC
     manufacturers use the Company's products to purify (by removing particles
     and unwanted contaminating molecules), deliver, control and monitor the
     liquids and gases used in the manufacturing processes of semiconductors and
     other microelectronics components. The Company's mass flow and pressure
     control products and precision liquid dispense filtration products are sold
     to OEM capital equipment suppliers to semiconductor manufacturers as well
     as directly to manufacturers of ICs. Sales to the Microelectronics business
     segment accounted for approximately 26% of Millipore's 1998 consolidated
     sales as contrasted with 35% of 1997 consolidated sales. As noted above,
     this business segment has experienced historic volatility, and the effect
     of such volatility has, in the past, affected Millipore's sales growth.

          While no single customer is material to the Company taken as a whole,
     the Microelectronics business segment does rely on a relatively narrow
     group of customers, some of whom purchase significant quantities of the
     Company's products.

Sales and Marketing

          The Company sells its products to both business segments within the
     United States primarily to end users through its own direct sales force
     and, in the case of analytical products, to a limited extent through an
     independent distributor. The Company sells its products to both business
     segments in international markets through the sales forces of its
     subsidiaries and branches located in more than 30 major industrialized and
     developing countries as well as through independent distributors in other
     parts of the world. As of December 31, 1998, the Company's marketing, sales
     and service forces consisted of approximately 915 employees worldwide of
     which 819 were employed in the Biopharmaceutical and Research Business
     Segment and 96 were employed in the Microelectronics Business Segment.

          The Company's marketing efforts focus on application development for
     existing products and on new and differentiated products for other
     existing, newly-identified and proposed customer uses. The Company seeks to
     educate customers as to the variety of analytical, purification and process
     control problems which may be addressed by its products and to adapt its
     products and technologies to separations and process control problems
     identified by its customers. The Company believes that its technical
     support services are important to its marketing efforts. These services
     include assisting in defining the customer's needs, evaluating alternative
     solutions, designing a specific system to perform the desired separation;
     training users, and assisting customers in compliance with relevant
     government regulations. In addition, the Company maintains a network of
     service centers located in the United States and in key international
     markets to support its process gas measurement/control products as well as
     its laboratory water products.

Research and Development


                                       5
<PAGE>

          In its role as a pioneer of membrane separations, Millipore has
     traditionally placed heavy emphasis on research and development. This
     emphasis has permitted Millipore to be the first company to introduce a
     number of major new enabling separations membranes and membrane devices
     (examples include: nitrocellulose microfiltration membrane in 1954, compact
     high purity laboratory water systems in 1972, membrane based syringe filter
     devices in 1973, membrane based filters for intravenous drug therapy in
     1975, tangential flow filtration cassette devices in 1975, polyvinylidene
     fluoride membrane in 1978, continuous electro-deionization water
     purification systems in 1988, composite ultrafiltration membranes in 1989,
     composite microfiltration membranes for the removal of viruses from
     solution in 1991, melt-cast PFA membranes in 1990, ultra-high weight
     polythylene membrane in 1993, high flow high efficiency metal membrane for
     gas filtration in 1996 and non-dewetting PTFE membrane in 1997). Research
     and development activities include the extension and enhancement of
     existing separations technologies to respond to new applications, the
     development of new membranes, and the upgrading of membrane based systems
     to afford the user greater purification capabilities. Research and
     development efforts also identify new separations applications to which
     disposable separations devices would be responsive, and develop new
     configurations into which membrane and ion exchange separations media can
     be fabricated to efficiently respond to the applications identified.
     Instruments, hardware, and accessories are also developed to incorporate
     membranes, modules and devices into total separations systems. Research and
     development activities related to the Company's IC process control products
     focuses upon developments which will address the evolving needs of IC
     manufacturers and development of enabling technologies which will
     anticipate those needs. Introduction of new applications frequently
     requires considerable market development prior to the generation of
     revenues. Millipore performs most of its own research and development and
     does not provide material amounts of research services for others.
     Millipore's aggregate research and development expenses in 1998 and 1997
     were $53,578,000 and $55,899,000, respectively. In 1996 Millipore's
     aggregate research and development expenses were $38,429,000 (excluding
     pre-acquisition amounts spent by Amicon and Tylan). For discussions of
     research and development write-offs relating to the Amicon and Tylan
     acquisitions, see Management's Discussion and Analysis of Financial
     Condition and Results of Operations - Acquisitions and Note E to the
     Financial Statements, which discussions are hereby incorporated herein by
     reference.

          In addition, the Company has followed a practice of supplementing its
     internal research and development efforts by licensing newly developed
     technology from unaffiliated third parties and/or acquiring distribution
     rights with respect thereto, when it believes it is in its long term
     interests to do so.

          Millipore has been granted a number of patents and licenses and has
     other patent applications pending both in the United States and abroad.
     While these patents and licenses are viewed as valuable assets, Millipore's
     patent position is not of material importance to its operations. Millipore
     also owns a number of trademarks, the most significant being "Millipore."


                                       6
<PAGE>

Competition

          The Company faces intense competition in all of its markets. The
     Company believes that its principal competitors in the Biopharmaceutical &
     Research business segment include Pall Corporation, Barnstead Thermolyne
     Corporation, Sartorius GmbH and United States Filter Corporation. The
     principal competitors in the Microelectronics business segment are Pall
     Corporation, United States Filter Corporation, Aera and MKS Instruments.
     Certain of the Company's competitors are larger and have greater resources
     than the Company. However, the Company believes that, within the markets it
     serves, it offers a broader line of products, making use of a wider range
     of separations and IC process control technologies and addressing a broader
     range of applications than any single competitor.

          While price is an important factor, the Company competes primarily on
     the basis of technical expertise, product quality and responsiveness to
     customer needs, including service and technical support.

Environmental Matters

          The Company is subject to numerous federal, state and foreign laws and
     regulations that impose strict requirements for the control and abatement
     of air, water and soil pollutants and the manufacturing, storage, handling
     and disposal of hazardous substances and waste. The federal laws and
     regulations include the Comprehensive Environmental Response, Compensation,
     and Liability Act, the Clean Air Act, the Clean Water Act and the Resource
     Conservation and Recovery Act. The Company is in substantial compliance
     with applicable environmental requirements. Because regulatory standards
     under environmental laws and regulations are becoming increasingly
     stringent, however, there can be no assurance that future developments will
     not cause the Company to incur material environmental liabilities or costs.

          Under the Clean Air Act Amendments of 1990 ("CAA"), the U.S.
     Environmental Protection Agency has been directed, among other things, to
     develop standards and permit procedures with respect to certain air
     pollutants. Because many of the implementing regulations have not yet been
     promulgated, the Company cannot make a final assessment of the impact of
     the CAA. Based upon its preliminary review of the CAA, however, the Company
     currently believes that compliance with the CAA will not have a material
     adverse impact on the operations or financial condition of the Company.

Other Information

          Since April of 1988, the Company has had in place a shareholder rights
     plan (the "Rights Plan") pursuant to which Millipore declared a dividend to
     its shareholders of the right to purchase (a "Right"), for each share of
     Millipore Common Stock owned, one additional share of Millipore Common
     Stock at a price of $80 for each share (after giving effect to the 1995 two
     for one stock split). In April of 1998, the Rights Plan was amended and
     restated to, among other things, extend the expiration date until April 30,
     2008, to increase the purchase price on the exercise of a Right to $200, to
     permit the Directors to exchange certain of the Rights for shares of
     Company Common Stock (on a 1 for 1 basis) under certain circumstances and
     to make certain other updating changes. The Rights Plan, as amended and
     restated, is designed to protect Millipore's shareholders from attempts by
     others to acquire Millipore on terms or by using tactics that could


                                       7
<PAGE>

     deny all shareholders the opportunity to realize the full value of their
     investment. The Rights will be exercisable only if a person or group of
     affiliated or associated persons acquires beneficial ownership of 20% or
     more of the outstanding shares of the Company Common Stock or commences a
     tender or exchange offer that would result in a person or group owning 20%
     or more of the outstanding Common Stock. In such event, or in the event
     that Millipore is subsequently acquired in a merger or other business
     combination, each Right will entitle its holder to purchase, at the then
     current exercise price, shares of the common stock of the surviving company
     having a value equal to twice the exercise price.

          Millipore's products are made from a wide variety of raw materials
     which are generally available in quantity from alternate sources of supply;
     as a result, Millipore is not substantially dependent upon any single
     supplier.

          As of December 31, 1998, Millipore employed 4,289 persons worldwide,
     of whom 2,027 were employed in the United States and 2,173 were employed
     overseas.

Executive Officers of Millipore

          The following is a list, as of March 1, 1999, of the Executive
     Officers of Millipore. All of the following individuals were elected to
     serve until the Directors Meeting next following the 1999 Annual
     Stockholders Meeting.

<TABLE>
<CAPTION>
                                                                             First Elected
                                                                       ------------------------
                                                                          An       To Present
Name                  Age           Office                              Officer        Office
----                  ---           ------                              -------        ------

<S>                   <C>    <C>                                         <C>      <C>
C. William Zadel      55     Chairman of the Board,                      1996           1996
                             President and Chief
                             Executive Officer of
                             the Corporation

Michael P. Carroll    48     Vice President of the                        1992          1997
                             Corporation and President                            (As President of
                             of Millipore Asia, Ltd.                      Millipore Asia Ltd.)

<CAPTION>
                                                                             First Elected
                                                                       ------------------------
                                                                          An       To Present
Name                  Age           Office                              Officer        Office
----                  ---           ------                              -------        ------

<S>                   <C>    <C>                                         <C>            <C>
Douglas B. Jacoby     52     Vice President                               1989          1989
                             of the Corporation

John E. Lary          52     Vice President                               1994          1994
                             of the Corporation

Francis J. Lunger     53     Vice President, Treasurer                    1997          1997
                             and Chief Financial Officer
                             of the Corporation

Joanna Nikka          47     Vice President                               1996          1996
                             of the Corporation
</TABLE>


                                       8
<PAGE>

<TABLE>
<S>                   <C>    <C>                                         <C>         <C>
Jeffrey Rudin         47     Vice President                               1996          1996
                             of the Corporation
                             and General Counsel

Hideo Takahashi       58     Vice President of                            1996          1979
                             the Corporation and                                     (As President
                             President of Nihon                                         of Nihon
                             Millipore                                                 Millipore)
</TABLE>

     Mr. Zadel was elected President, Chief Executive Officer and Chairman on
February 20, 1996. Mr. Zadel had been, since 1986, President and Chief Executive
Officer of Ciba Corning Diagnostics Corp., a company that develops, manufactures
and sells medical diagnostic products. Prior to that he was Senior Vice
President of Corning Glass Works' (now Corning Inc.) Americas Operations (1985)
and Vice President of business development (1983). Mr. Zadel currently serves on
the Boards of Directors of Kulicke and Soffa Industries, Inc. and Matritech,
Inc. Mr. Zadel is Chairman of the Board of Directors of the Massachusetts High
Technology Council (February 1999). He has also served as the Chairman of the
Health Industry Manufacturers Association (1994 - 1995).

     Mr. Carroll joined Millipore in 1986 as Vice President/Finance for the
Membrane Products Division following a ten-year career in the general practice
audit division of Coopers and Lybrand. In 1988, Mr. Carroll assumed the position
of Vice President of Information Systems (worldwide) and in December of 1990, he
became the Vice President of Finance for the Company's Waters Chromatography
Division. Mr. Carroll was elected Corporate Vice President, Chief Financial
Officer and Treasurer in February, 1992. In 1997 Mr. Carroll was elected
President of Millipore Asia Ltd.; he remains a Corporate Vice President.

     Mr. Jacoby joined Millipore in 1975. After serving in various sales and
marketing capacities, Mr. Jacoby became Director of Marketing for the Millipore
Membrane Products Division in 1983 and in 1985 he assumed the position of
General Manager of the Membrane Pharmaceutical Division. In 1987, Mr. Jacoby
assumed responsibility for the Company's process membrane business and in 1994
assumed responsibility for the sales, marketing and R&D for all of the Company's
worldwide business. Mr. Jacoby was elected a Corporate officer in December,
1989.

     Mr. Lary was elected a Corporate Vice President in November 1994, and is
responsible for the worldwide operations of the Company. From May of 1993 until
his election as a Corporate Vice President, Mr. Lary served as Senior Vice
President and General Manager of the Americas Operation. For the ten years prior
to that time, he served as Senior Vice President of the Membrane Operations
Division of Millipore.

     Mr. Lunger was elected Vice President, Chief Financial Officer and
Treasurer of Millipore upon joining the Company in June 1997. Mr. Lunger had
been, since 1995, Senior Vice President and Chief Financial Officer of Oak
Industries, Inc., a developer, manufacturer and supplier of components to the
telecommunications industry. From 1994 until 1995, Mr. Lunger had been acting
Chief Executive Officer and Chief Administrative Officer of Nashua Corporation,
a


                                       9
<PAGE>

conglomerate with diverse businesses ranging from office supplies to photo
finishing. During the period 1983-1994, Mr. Lunger served in various business
operations and financial management positions with Raychem Corporation, an
international material science company serving the telecommunication,
automotive, energy and defense markets, including Vice President and Group
General Manager (1992-1994); Vice President and Assistant Sector General Manager
(1991-1992) and Vice President, Finance (1988-1991).

     Ms. Nikka was elected Corporate Vice President for Human Resources in
November 1996. Ms. Nikka was Vice President at Fidelity Investments from 1991 to
November 1996. Prior to joining Fidelity in 1991, Ms. Nikka was Vice President
of Human Resources at Symbolics, Inc.

     Mr. Rudin was elected Corporate Vice President and General Counsel in
December 1996. Prior to joining Millipore, Mr. Rudin served Ciba Corning
Diagnostics Corporation as Senior Vice President and General Counsel (since
1993) and as Vice President and General Counsel (1988 - 1993). Prior to that,
Mr. Rudin was Assistant Division Counsel for the Pharmaceutical Division of
Ciba-Geigy Corporation.

     Mr. Takahashi joined Millipore in 1979 as President and Chief Executive
Officer of its Japanese subsidiary, Nihon Millipore Ltd. Mr. Takahashi was
elected as a Vice President of the Company on February 8, 1996.


                                       10
<PAGE>

Item 2. Properties.

     Millipore operates 19 manufacturing sites located in the United States,
France, Japan, Ireland, United Kingdom, Brazil and China. The following table
identifies the major production sites which are owned by Millipore and describes
the purpose, floor space and land area of each.

<TABLE>
<CAPTION>
                                                                                   Business
                                                   Floor Space       Land Area     Segment
Location                Facility                    Sq. Ft.  Acres     Served
--------                --------                    -------  -----     ------

<S>            <C>                               <C>                     <C>       <C>
Bedford,            Executive Offices, research,       352,000           31        B&R;
MA                  membrane manufacturing                                         Micro.
                    & warehouse

Danvers             Manufacturing and office            65,000           16        B&R
MA

Jaffrey,       Manufacturing, warehouse          177,000                 31        B&R; Micro.
NH                  and office

Cidra,              Manufacturing, warehouse           125,000           29        B&R
Puerto Rico         and office

Molsheim,           Manufacturing, warehouse           148,000           20        B&R
France              and office

Cork,               Manufacturing                       98,000           20        B&R
Ireland

Yonezawa,           Manufacturing and warehouse        169,000            7        B&R;
Japan                                                                              Micro.
</TABLE>

================================================================================
B&R = Biopharmaceutical & Research Business Segment.
Micro. = Microelectronics Business Segment

     Millipore owns a total of approximately 1.25 million square feet of
facilities worldwide which are used for office, research and development,
manufacturing (including the manufacturing facilities listed above) and
warehouse purposes. All of these facilities are owned in fee and are not subject
to any material encumbrances.

     In addition to its owned properties, Millipore currently leases various
manufacturing, sales, warehouse, and administrative facilities throughout the
world. Such leases expire at different times through 2008. The aggregate area of
rented space is approximately 960,000 square feet and cost was approximately
$12,033,000 in 1998. The following leased facilities are the most significant:


                                       11
<PAGE>

     1.   A lease of a 198,000 square foot building located on 13 acres in
          Allen, Texas (Dallas-Fort Worth vicinity). This lease expires in 2008
          and provides for two 5 year extension options. This facility is used
          to support the Microelectronics business segment.

     2.   A lease for premises abutting the Company's Bedford headquarters; this
          lease makes 75,000 square feet of building available to Millipore,
          provides for a term expiring in 2005 and contains rights of first
          refusal and options with respect to the purchase of the premises by
          Millipore and the sale of the premises to Millipore. This building
          supports both business segments.

     3.   A lease of a 134,000 square foot building which is adjacent to the
          leased property referred to in preceding paragraph for a term ending
          in 2006, with renewal options for an aggregate of 20 years, as well as
          a purchase option. This building is used primarily to serve the
          Biopharmaceutical & Research business segment

     4.   A lease of a building of 130,000 square feet located in Burlington,
          Massachusetts, approximately 5 miles from Millipore's Bedford
          headquarters. This lease was amended during 1997 to, among other
          things, extend the initial term until February 2002 and to provide for
          a single 3-year extension option. This building supports both business
          segments.

     With the exception of the Allen lease described above, in the opinion of
Millipore, no single lease is material to the Company's operations.

     Except for the facilities located in Allen, Texas, Cidra, Puerto Rico and
Yonezawa, Japan, which currently operate at approximately 50%, 75% and 70%,
respectively, of capacity, none of the above listed owned and leased major
facilities are materially underutilized.

     Millipore is of the opinion that all the facilities owned or leased by it
are well maintained, appropriately insured, in good operating condition and
suitable for their present uses.

Item 3. Legal Proceedings.

     The Company currently is not a party to any material legal proceeding and
the Company knows of no material legal proceeding contemplated by any
governmental authority. However, as has been previously disclosed, Millipore
has, in the past, been named as a potentially responsible party ("PRP") under
the Comprehensive Environmental Response Compensation and Liability Act of 1980,
as amended by the Superfund Amendments and Reauthorization Act of 1986 ("CERCLA"
or "Superfund") by the U.S. Environmental Protection Agency ("EPA") with respect
to a "release" (as defined in Section 101 of CERCLA), at twelve sites to which
chemical wastes generated by the manufacturing operations of Millipore or one of
its divisions may have been sent. The Company has settled its liability pursuant
to consent decrees releasing Millipore from further liability with respect to
certain covered matters related to all of the Superfund sites at which the
Company has been named a PRP. However, as is typical with consent decrees in
such Superfund proceedings, EPA and the relevant state agencies reserved the
right to maintain actions against the settling parties, including the Company,
in the event certain actions occur or do not occur.


                                       12
<PAGE>

     In 1991 the Company brought suit against The Travelers Indemnity Company,
Hartford Accident and Indemnity Company and Insurance Company of North America
in U.S. District Court for the District of Massachusetts with respect to four of
the Superfund sites and one other site at which the Company had been named a
PRP, seeking recovery of the full costs of defending the actions at such sites,
indemnification for its liability and damages for unfair and deceptive insurance
practices. The case against Hartford Accident and Indemnity Company has been
settled. The case against Insurance Company of North America is awaiting action
on remand by the District Court after a successful appeal by the Company of a
dismissal of the case. The appeal of the dismissal of the case against The
Travelers Indemnity Company was unsuccessful.

Item 4. Submission of Matters to a Vote of Security Holders.

     This item is not applicable.

                                     PART II

Item 5. Market for Millipore's Common Stock, and Related Stockholder Matters.

     Millipore's Common Stock, $1.00 par value, is listed on the New York Stock
Exchange and is traded under the symbol "MIL". The following table sets forth,
for the indicated fiscal periods, the high and low sales prices of Millipore's
Common Stock (as reported on the New York Stock Exchange Composite Tape) and the
dividends declared (on a per share basis). As of February 26, 1999 there were
approximately 3,230 shareholders of record.

<TABLE>
<CAPTION>
                                      Range of Stock Prices                     Dividends Declared
                           --------------------------------------------         ------------------
                                   1998                    1997                 1998          1997
                           -------------------      -------------------         ----          ----
                            High         Low          High         Low              (Per Share)
                            ----         ---          ----         ---
<S>                        <C>          <C>         <C>          <C>            <C>          <C>
First Quarter              $38.44       $30.00      $45.63       $38.88         $0.10        $0.09
Second Quarter             $36.94       $26.82      $44.88       $37.25         $0.11        $0.10
Third Quarter              $27.50       $17.50      $51.88       $41.06         $0.11        $0.10
Fourth Quarter             $29.88       $17.25      $52.00       $33.50         $0.11        $0.10
</TABLE>

Item 6. Selected Financial Data.

     The following selected consolidated financial data for Millipore are
derived from the Company's Financial Statements and related notes thereto. The
following selected consolidated financial data should be read in connection with
and is qualified in its entirety by Millipore's Financial Statements and related
notes thereto and other financial information included elsewhere in this Form
10-K/A report.


                                       13
<PAGE>

Millipore Corporation -- Five-year Summary of Operations

<TABLE>
<CAPTION>
 (In thousands, except per share data)                    1998           1997(2)        1996           1995         1994
------------------------------------------------------------------------------------------------------------------------------
<S>                                                     <C>             <C>          <C>             <C>          <C>
Net sales                                               $ 699,307       $ 758,919    $ 618,735       $ 594,466    $ 497,252
Cost of sales                                             364,467         342,237      249,443         243,849      212,675
                                                       -----------------------------------------------------------------------
     Gross profit                                         334,840         416,682      369,292         350,617      284,577
Selling, general and administrative expenses              236,521         245,585      202,140         195,026      159,591
Research and development expenses                          53,578          55,899       38,429          36,515       34,327
Purchased research & development expense                       --         114,091       68,311(2)           --           --
Settlement of litigation                                   11,766(1)           --           --              --           --
Restructuring charge                                       33,641(1)           --           --              --           --
                                                       -----------------------------------------------------------------------
     Operating (loss) income                                 (666)          1,107       60,412         119,076       90,659
Gain on sale of equity securities                          35,594(1)        8,330        5,329              --           --
Other income (expense), net                                    --              --           --              --      (10,800)(3)
Interest income                                             3,090           2,937        2,780           1,682        4,091
Interest expense                                          (29,474)        (30,484)     (11,498)        (10,623)      (7,035)
                                                       -----------------------------------------------------------------------
     Income (loss) from continuing operations before
     income taxes                                           8,544         (18,110)      57,023         110,135       76,915
(Benefit) provision for income taxes                       (1,320)         20,674       13,401          24,781       17,306
                                                       -----------------------------------------------------------------------
     Income (loss) from continuing operations               9,864         (38,784)      43,622          85,354       59,609
Loss on disposal of discontinued operations                    --              --        2,036(4)           --        7,211(4)
                                                       -----------------------------------------------------------------------

Net Income (loss)                                       $   9,864       $ (38,784)   $  41,586       $  85,354    $  52,398
                                                       =======================================================================

Basic net income (loss) per share:
     Income (loss) from continuing operations           $    0.22       $   (0.89)   $    1.00       $    1.90    $    1.09
     Net income (loss) per share                        $    0.22       $   (0.89)   $    0.95       $    1.90    $    0.96
Diluted net income (loss) per share:
     Income (loss) from continuing operations           $    0.22       $   (0.89)   $    0.98       $    1.86    $    1.07
     Net income (loss) per share                        $    0.22       $   (0.89)   $    0.94       $    1.86    $    0.94
Cash dividends declared per share                       $    0.43       $    0.39    $    0.35       $   0.315    $   0.295
Weighted average shares outstanding:
     Basic                                                 43,864          43,527       43,602          44,985       54,726
     Diluted                                               44,289          43,527       44,457          45,887       55,644
Financial Data
   Working capital                                      $   6,071       $  36,169    $  90,708       $  88,160    $  98,472
   Total assets                                           762,440         772,301      682,387         529,849      535,884
   Long-term debt                                         299,110         286,844      224,359         105,272      109,327
   Shareholders' equity                                 $ 136,908       $ 143,147    $ 211,758       $ 222,664    $ 217,466
==============================================================================================================================
</TABLE>

1.   See Note B on page F-9 below, Note C on page F-10 below, Note D on page
     F-11 below and Note M on page F-19 below of the Notes to the Financial
     Statements.
2.   See Note E on page F-12 below of the Notes to the Financial Statements.
3.   The $10,800 reflects a litigation settlement which arose from the Company's
     sales of its Process Water Division in 1989.
4.   Represents a loss on the disposal of discontinued operations related to the
     sale of its Waters Chromatography Division and certain assets of its
     non-membrane bioscience business. See Note B on page F-9 below and Note D
     on page F-11 below of the Notes to the Financial Statements.


                                       14
<PAGE>

     Item 7. Management's Discussion and Analysis of Financial Condition and
     Results of Operations.

     The following Management's Discussion and Analysis of Financial Condition
     and Results of Operations should be read in connection with Millipore's
     Consolidated Financial Statements and related notes thereto and other
     financial information included elsewhere in this Form 10-K report.

                                  ACQUISITIONS

AMICON

          On December 31, 1996, the Company acquired the net assets of the
     Amicon Separation Science Business of W.R. Grace & Co. ("Amicon") for a
     price of $129.3 million in cash, including transaction costs. The Amicon
     acquisition was accounted for as a purchase and resulted in a write-off for
     purchased in-process research and development ("IPR&D") of $68.3 million in
     the fourth quarter of 1996. Since this transaction was completed on the
     last business day of 1996, the accompanying 1996 consolidated statement of
     income excludes all 1996 business activity conducted by Amicon.

          The major IPR&D project acquired as a part of Amicon which was
     included in the IPR&D write-off related to the development of a novel
     sample preparation platform and had an estimated fair value of $48.3
     million. If proven to be technologically feasible, the valuable element of
     this project was that the technology represented a new approach to micro
     sample handling, which was intended to address the shift in trends in the
     analytical laboratory market toward smaller quantities of highly specific
     samples. As of the acquisition date, the expected cost required to complete
     this project was $0.5 million, the estimated time required to complete this
     project was approximately four man years of technical and engineering time
     (generally, the Company regards 2,000 hours as comprising one "man year")
     and this project was expected to generate significant revenues over the
     estimated life of the resulting products.

          This project was written off because, as of December 31, 1996, the
     project had not achieved technological feasibility and there were a large
     number of obstacles facing the successful completion of the project
     described above, including the fact that there existed a wide variety of
     manufacturability, product cost, technology and application issues. Also
     the technology underlying this project had no alternative future uses not
     included in its estimated fair value within the markets served by the
     Company. In addition, there was significant uncertainty as to whether the
     production processes could be scaled up to a full scale commercial level of
     manufacturing and as to whether these products could be made to conform to
     laboratory standards for small sample sizes.

          The first products derived from the novel sample preparation platform
     were introduced in late 1998, approximately one year later than planned.
     Although development is continuing, the estimated cost and time required to
     achieve technological feasibility increased from $0.5 million and four man
     years to $1.0 million and eight man years while the anticipated revenues
     from this technology are now expected to be significantly less than
     originally estimated. The actual costs


                                       15
<PAGE>

     incurred through December 31, 1998 were approximately $1.0 million. The
     reduction in anticipated revenues is primarily a result of strategic
     marketing decisions made after the acquisition of Amicon to focus this
     technology on a limited number of served and strategically important
     markets which eliminated potential revenue from the broader range of
     applications originally envisioned.

          In addition, the Amicon acquisition included ten other IPR&D projects,
     with an aggregate value of $20 million, not considered to be individually
     significant. These minor projects were expected to cost an aggregate of
     $1.2 million and an aggregate of twelve and one-half man years to complete.
     These projects were written off because technological feasibility had not
     been demonstrated as of December 31, 1996. As of December 31, 1998, three
     of these ten projects have been completed, three have been cancelled, three
     are ongoing and one has been suspended. As of December 31, 1998, an
     aggregate of $1.3 million had been invested on these individually
     insignificant IPR&D projects and it was estimated that an additional $0.5
     million would be required to achieve technological feasibility for the
     three ongoing projects.

          In order to integrate Amicon's business operations with those of
     Millipore, a plan was adopted pursuant to which management undertook the
     following activities: replacement of Amicon's business systems with the
     Company's common business information systems, elimination of redundant
     executive and administrative personnel, realignment of product distribution
     channels to achieve compatibility with those of Millipore, termination of
     supply agreements, resolution of redundant and overlapping product lines
     and streamlining and consolidation of facilities. This plan provided for
     the termination of 160 Amicon employees; this reduction in force was
     implemented without alteration. As of December 31, 1998 the integration of
     the Amicon business into Millipore was substantially completed except for
     the relocation of certain manufacturing operations, which has been delayed
     pending the construction of a facility to receive those operations, and the
     resolution of a supply agreement termination dispute both of which the
     Company expects to be completed during 2000.

TYLAN GENERAL, INC.

          On January 22, 1997, the Company completed its cash tender offer for
     all of the outstanding common shares of Tylan General, Inc. ("Tylan") for
     $16.00 per share. Tylan became a wholly owned subsidiary of the Company on
     January 27, 1997. The aggregate purchase price was $133.0 million, plus the
     assumption of Tylan's outstanding debt, net of cash, totaling $23.6
     million. This acquisition was accounted for as a purchase and resulted in a
     write-off for IPR&D of $114.1 million in the first quarter of 1997.

          Included in the IPR&D write-off were two major IPR&D projects acquired
     as a part of Tylan. The first of these was a project to develop intracavity
     laser spectroscopy technologies for application in semiconductor and
     related industries. This project had an estimated fair value of $53.5
     million, was expected to require the investment of an additional $3.2
     million and twenty-two man years to complete. If proven to be
     technologically feasible, it was expected that this project would yield a
     break-through enabling technology and would become a major revenue source
     for the Company. The products expected to result from this project were to
     be used in


                                       16
<PAGE>

     monitoring moisture and other contaminant levels within vacuum deposition
     chambers for semiconductor manufacturing. The valuable element of this
     project was that the expected future products would be differentiated from
     Tylan's current products, would offer enhanced sensitivity and the ability
     to monitor corrosive gas streams and would also have applications for
     different target gases and sample environments. While Tylan retained
     management direction over this project, development was performed by a
     third party pursuant to a development and license agreement.

          Under the development and license agreement Tylan directed the
     research with the objective of developing intracavity laser spectroscopy
     technologies for application in semiconductor, flat panel, and fiber optic
     manufacturing industries. According to this agreement, Tylan was to have
     the rights and responsibilities to utilize the technology, were it to be
     successfully developed, and to manufacture products for sale to the above
     industries. This agreement provided for aggregate development fees of $8.0
     million, payable $0.3 million at signing and the balance in equal quarterly
     installments thereafter over the five year term of the agreement. The
     agreement was terminable at will by Tylan but required the payment of a
     termination fee equal to six quarters of development fees ($2.4 million).
     Development fees were charged against research and development expense.

          This project was written off because, at the time of the Tylan
     acquisition, it was very early in the development process and had not
     achieved technological feasibility. There was also significant uncertainty
     as to the precise configuration and market requirements of the expected
     products based on the intracavity laser spectroscopy technology. In
     addition, there was considerable uncertainty as to how long it would take
     to develop a commercializable product from this technology. Further,
     technological feasibility for potential alternative future uses of this
     technology had not been achieved.

          As a result of the prolonged downturn in the microelectronics
     industry, the Company has reprioritized research and development programs
     and further development of this project was suspended in late 1997. This
     resulted in a decision to terminate the third party development and license
     agreement in December 1997 and the termination fee was charged to the
     acquisition reserve. The Company retains certain post-termination residual
     rights to this technology and is currently re-evaluating the future of this
     project.

          The second significant IPR&D project acquired with Tylan which has
     been written off was the development of a new more versatile, sensitive and
     easily manufactured transducer based on thin film technology. This project
     had an estimated fair value of $15.0 million, was expected to require the
     investment of an additional $1.2 million and ten man years to complete and
     was anticipated to generate significant revenues over the estimated life of
     the resulting products. If proven technologically feasible, the valuable
     element of this project was that it was expected to generate a transducer
     which was superior to current transducers in that it could operate in both
     high and low pressure environments with enhanced sensitivity and would be
     easier and less expensive to manufacture.


                                       17
<PAGE>

          This project was written off because, as of the date of the Tylan
     acquisition, it was unknown whether or not the thin film transducer
     technology could be manufactured successfully on a large scale. Significant
     issues relating to manufacturability and whether product physical
     dimensions and other product criteria could be achieved remained to be
     resolved. In addition, there was uncertainty concerning customer acceptance
     of this product. Further, the technology underlying this project had no
     alternative future uses not included in its estimated fair value within the
     markets served by the Company.

          This project has successfully achieved technological feasibility and
     has yielded one commercializable product which is expected to be launched
     during 1999. However, the objective of ease and cost effectiveness to
     manufacture continues to be a challenge. Accordingly, the current revenue
     projection for the resulting products is approximately one-third of the
     original estimate. The estimated cost to complete this project is currently
     expected to be less than one-half of the original estimate.

          In addition, to the foregoing IPR&D projects, the Tylan acquisition
     included eight other IPR&D projects with an aggregate value of $45.6
     million, not considered to be individually significant and which were
     expected to cost an aggregate of $2.5 million and twenty-nine man years to
     complete. These projects were written off because technological feasibility
     had not been demonstrated as of the date of the acquisition of Tylan. As of
     December 31, 1998, three of these eight projects have been completed, two
     have been cancelled, one is ongoing, one has had a major change in its
     scope and has been integrated into a post acquisition project and one has
     been suspended. As of December 31, 1998, an aggregate of $4.9 million had
     been invested on these individually insignificant Tylan IPR&D projects and
     it was estimated that an additional $0.5 million would be required to
     achieve technological feasibility for the one ongoing project. The reasons
     for the aggregate increase in investment in these insignificant IPR&D
     projects included the change in the direction of three of these IPR&D
     projects to adapt to the evolving needs of the target customer base, the
     unanticipated technical complexity in adapting promising miniaturization
     technologies from other industries to Tylan product applications and the
     expansion of the scope of certain of these projects since the date of the
     Tylan acquisition.

          In order to integrate Tylan's business operations with those of
     Millipore, a plan was adopted pursuant to which management undertook the
     following activities: replacement of Tylan's business systems with the
     Company's common business information systems, elimination of redundant
     executive and administrative personnel, realignment of product distribution
     channels to achieve compatibility with those of Millipore, termination of
     supply agreements, divestiture of non-strategic product lines and
     consolidation of manufacturing plants in the U.S. and Japan. This
     integration plan provided for the termination of 300 Tylan employees and
     was extended to include additional U.S. manufacturing plants in the
     consolidation. This extended integration plan was implemented with no major
     change. As of December 31, 1998, the redundant Tylan facilities in the U.S.
     had been closed and their operations consolidated into the Allen, Texas
     facility. The integration activities for this acquisition are complete with
     final cash payments for contractual agreements continuing through 2000.


                                       18
<PAGE>

                              RESULTS OF OPERATIONS

     The Company reported a profit of $0.22 per share for 1998 compared to a
loss of $0.89 per share for 1997 and a profit of $0.94 per share for 1996.
Excluding restructuring charges and unusual items, the Company would have
reported diluted earnings per share from continuing operations of $0.60, $1.65
and $2.06 for 1998, 1997 and 1996, respectively.

Restructuring Charges and Unusual Items

     In the second quarter of 1998, the Company announced a restructuring
program to improve the competitive position of the Company by streamlining
worldwide operations and reducing the overall cost structure. The restructuring
program was initiated to bring operating costs in line with lower revenues
resulting from the financial difficulties in Asian economies, the strong U.S.
dollar and the continuation of the semiconductor industry slump.

     Key initiatives include:

          1. Discontinue non-strategic product lines and rationalize product
     offerings to improve product line focus. The non-strategic product lines
     consisted of high pressure liquid chromatography equipment, semiconductor
     fab monitoring and control software and various filtration devices. The
     rationalization of product offerings is a result of management's review
     which identified specific products with limited profitability or products
     which were inconsistent with current strategic marketing plans, such as
     non-standard products. These actions to improve product line focus were
     completed by September 30, 1998.

          2. Consolidate certain manufacturing operations to eliminate duplicate
     manufacturing processes. Identified manufacturing operations in Ireland and
     the U.S. will be consolidated into existing facilities within the Company,
     resulting in similar production activities occurring at the same locations.
     The consolidation of manufacturing operations will be completed in 2000.

          3. Realign European country organizational structure to focus on
     operating business units and establish a regional transaction service
     center, resulting in the consolidation of financial and administrative
     activities into a single location. The Company plans to complete the
     transition to the service center by the end of 1999.

          4. Reduce administrative and management infrastructure costs in Asia.
     These cost reductions will result in a lower overhead structure for
     administrative and management infrastructure in Asia and will be achieved
     through reduced facility costs and administrative positions as offices in
     the region were consolidated during 1998.

          5. Renegotiate marketing, research and development and supply
     agreements. These agreements were amended to eliminate the cost of
     maintaining certain exclusivity rights and to reduce purchasing commitments
     for non-strategic products. These actions will be completed by the end of
     1999.


                                       19
<PAGE>

          6. Streamline the supply chain management function through the
     centralization of worldwide procurement functions and the consolidation of
     vendors to significantly reduce the aggregate number of vendors, resulting
     in cost savings and shorter cycle time within the procurement function as
     well as materials cost reductions. These actions will be completed during
     1999.

     In the third quarter of 1998, the Company recorded an expense associated
with these activities of $42.8 million ($29.1 million after tax) including a
restructuring charge of $33.6 million and a $6.2 million charge for inventory
and $3.0 million of fixed asset write-offs against cost of sales. The $33.6
million restructuring charge included $18.3 million of employee severance costs,
$9.5 million write-off of real and intangible assets associated with
discontinued product lines and with the termination of certain rights under two
technology development collaborations, $3.8 million of lease cancellation costs
and $2.0 million of contract termination costs. During 1998, approximately $5.6
million of restructuring costs, consisting primarily of severance, were paid and
$18.5 million remains accrued and will be substantially paid in 1999 and with
the remainder in future years.

     The restructuring initiatives combined with the consolidation of the
Company's Microelectronics plants will result in the elimination of 620
positions worldwide. Notification to employees was completed in the third
quarter of 1998, however a small number of these employees will continue in
their existing positions through 2000 with their related salary costs charged to
operations as incurred. Under the terms of the severance agreements, the Company
expects to pay severance and associated benefits through the early part of 2000.

     When fully implemented the combination of the restructuring programs and
the Microelectronics consolidation are expected to yield annual savings of $38.0
million. The savings will result in reduced wages, facility related costs,
depreciation and amortization and will be primarily reflected as reductions in
cost of sales. The savings began in 1998 but will not be fully realized until
1999.

     The Company also recorded an incremental provision for excess and obsolete
inventory of $6.0 million during the third quarter of 1998 in response to
adverse changes in demand attributable to declining business conditions in Asia
and the slowdown in the semiconductor industry.

     See the discussion of Gross Margins, Gain on Sale of Equity Securities, Net
Loss on Disposal of Discontinued Operations and Legal Proceedings below for
additional information related to the other items on the following schedule.


                                       20
<PAGE>

The summary of restructuring charges and unusual items is as follows:

<TABLE>
<CAPTION>
      Summary of Restructuring Charges and Unusual Items:                               Year Ended
      (In millions, except per share data)                                             December 31,
                                                                             1998          1997          1996
                                                                            -----------------------------------
      <S>                                                                   <C>           <C>           <C>
      Cost of sales
          Write-off of inventory and manufacturing equipment                $   9.2       $    --       $    --
          Provision for excess and obsolete inventory                           6.0                          --
          Purchase accounting adjustment                                         --           5.0            --
                                                                            -----------------------------------
      Impact on gross margin                                                  (15.2)         (5.0)           --

      Operating expenses
          Purchased research and development expenses                            --         114.1          68.3
          Restructuring charges                                                33.6            --            --
          Litigation settlements                                               11.8            --            --
                                                                            -----------------------------------
      Loss from continuing operations before income taxes                     (60.6)       (119.1)        (68.3)
      Gain on sale of equity securities                                        35.6           8.3           5.3
                                                                            -----------------------------------
      Impact on loss from continuing operations before income taxes           (25.0)       (110.8)        (63.0)
      Tax impact of restructuring charges and unusual items                    (8.4)          1.2         (14.8)
                                                                            -----------------------------------
      Net loss from continuing operations                                     (16.6)       (112.0)        (48.2)
       Net loss on disposal of discontinued operations ($2.6 pre-tax)            --            --          (2.0)
                                                                            -----------------------------------
      Net loss from restructuring charges and unusual items                 $ (16.6)      $(112.0)      $ (50.2)
                                                                            ===================================
      Net loss per share from restructuring charges and unusual items       $ (0.37)      $ (2.54)      $ (1.13)
                                                                            ===================================
</TABLE>

Local Currency Results

     The following discussion of Net Sales, Gross Profit Margins and Operating
Expenses includes reference to revenue, margins and expenses in "local
currencies". For comparability of financial results, the foreign currency
balances, in all periods presented, are translated at Millipore's 1998 budgeted
exchange rates which differ from actual rates of exchange. This provides a
clearer presentation of underlying trends in the Company's business, before the
impact of foreign currency translation.

Net Sales

     Consolidated net sales, measured in U.S. dollars, decreased 8 percent in
1998, compared to an increase of 23 percent in 1997, and an increase of 4
percent in 1996. The net sales decrease in 1998 compared to 1997 was primarily
due to the continued downturn in the semiconductor industry, the ongoing
economic difficulties in Asian markets and negative currency effects. The higher
sales growth rate in 1997 compared to 1996 was primarily attributable to the
acquisitions of Amicon and Tylan. Without these acquisitions, sales in 1997
declined by 1 percent from 1996 levels. Sales growth in 1997 was adversely
impacted by a cyclical downturn in the semiconductor industry, unfavorable
foreign currency exchange rate comparisons and certain other factors discussed
below.

     During 1998 and 1997 the U.S. dollar strengthened against most of the
European and Asian currencies in which the Company transacts business. The net
effect of this currency movement in 1998 was to increase the rate of the sales
decline by 3 percentage points. In 1997 the stronger


                                       21
<PAGE>

dollar decreased reported sales growth and sales growth excluding acquisitions
by 9 percentage points and 7 percentage points, respectively. The U.S. dollar
increased in value against the Japanese yen in 1996 with the net result of
decreasing the reported sales growth by 5 percentage points (approximately 22%
of Millipore's net sales are to customers in Japan). As a general matter, a
stronger U.S. dollar will adversely affect the sales growth of both business
segments. However, since the Microelectronics segment has a higher percentage of
sales in Asia, strengthening of the dollar against Asian currencies will have a
somewhat larger impact on that segment. Price changes have not significantly
affected the comparability of sales during the past three years.

Sales growth by business segment and geography, measured in local currencies and
U.S. dollars, is summarized in the table below.

<TABLE>
<CAPTION>
                                Sales Growth in Local      Sales Growth in U.S. Dollars
                                ---------------------      ----------------------------
                                     Currencies
                                     ----------
                                 With          Without         With          Without
                                 ----          -------         ----          -------
                             Acquisitions   Acquisitions   Acquisitions    Acquisitions
                             ------------   ------------   ------------    ------------
                             1998    1997   1997    1996   1998    1997    1997    1996
                             ----    ----   ----    ----   ----    ----    ----    ----
    <S>                      <C>      <C>     <C>     <C>  <C>      <C>     <C>      <C>
    Biopharmaceutical &
       Research ...........    7%     19%     7%     10%     5%     12%     (0)%     6%
    Microelectronics ......  (28)%    64%     4%      7%   (32)%    50%     (4)%     0%
                             ---     ---    ---     ---    ---     ---     ---     ---
       Consolidated .......   (5)%    32%     6%      9%    (8)%    23%     (1)%     4%
                             ---     ---    ---     ---    ---     ---     ---     ---

    Americas ..............   (9)%    48%     7%      7%    (9)%    48%      6%      7%
    Europe ................    8%     28%     8%      6%     7%     15%     (3)%     4%
    Asia/Pacific ..........  (13)%    15%     3%     14%   (21)%     3%     (8)%     2%
                             ---     ---    ---     ---    ---     ---     ---     ---
       Consolidated .......   (5)%    32%     6%      9%    (8)%    23%     (1)%     4%
                             ---     ---    ---     ---    ---     ---     ---     ---
</TABLE>

     Biopharmaceutical & Research sales, measured in local currencies, increased
7 percent in 1998 compared to 19 percent in 1997. The growth of the
Biopharmaceutical & Research segment in 1998 reflects the combination of
increased demand for consumable products and process equipment used in the
production of sterile drugs and analytical and water filtration devices used in
research laboratories. The growth in the Americas and Europe for this segment is
attributable to an increase in the number of new drugs developed through
synthetic and natural methods ("New Chemical Entities") approved and in
production. This segment was adversely affected in Asia by a decrease in demand
as a result of region-wide recessionary pressures.

     Excluding the impact of the Amicon acquisition, sales to the
Biopharmaceutical & Research business segment grew 7 percent in 1997 in local
currencies compared to growth of 10 percent in 1996. Sales of large protein
processing systems in 1997 to biotechnology customers were level with those in
1996. In addition, sales to a beer-manufacturing customer in Japan were lower in
1997 as compared to 1996. These two factors, which were significant in boosting
the 1996 overall segment growth rate, combined to depress the sales growth rate
in 1997. New product introductions in 1997 and 1996, particularly for laboratory
water and applied microbiology products, and new distribution alliances launched
late in 1996 in the United States have enhanced sales growth in this market.
Sales growth in 1997 was strongest in Europe and the Americas.


                                       22
<PAGE>

     Microelectronics segment sales growth measured in local currency declined
28 percent in 1998 compared to an increase of 64 percent for 1997. Sales growth
for 1997 excluding the acquisition of Tylan was 4 percent. The decrease in 1998
sales was directly attributable to the continuation of the semiconductor
industry slump, which began in the middle of 1996. The reduction in
Microelectronics segment revenues generated from the sale of equipment was
adversely impacted in Asia and the Americas by a significant reduction in
semiconductor plant construction. Sales of consumable gas and liquid
purification devices declined to a lesser extent, consistent with lower
worldwide semiconductor plant capacity utilization. The moderate segment growth
of 4 percent before acquisitions in 1997 reflects the impact of the
aforementioned semiconductor downturn coupled with the Asian financial
difficulties which began late in that year.

Gross Profit Margins

     Gross profit margins in local currencies were 48.0 percent in 1998, 53.1
percent in 1997, and 57.1 percent in 1996. Gross profit margins in 1998 were
50.1 percent excluding the effect of the $9.2 million charge for the write-off
of inventory and manufacturing equipment associated with product line
rationalization activities and a provision of $6.0 million for excess and
obsolete inventory. Local currency gross profit margins in 1997 were 53.8
percent excluding the effect of an inventory write-up to net realizable value of
$5.0 million related to acquisition accounting which in turn resulted in very
low margins when this inventory was sold. Gross profit margin percentages,
excluding these charges, were lower in 1998 than those in 1997 reflecting the
impact of significantly reduced volumes in the Company's manufacturing plants
serving the Microelectronics segment combined with duplicative manufacturing
costs resulting from concurrent operations at three existing plants located in
California and Texas and operations at the new manufacturing facility in Allen,
Texas. The redundant facilities were closed in September 1998 and their
operations consolidated into the Allen, Texas facility. The lower gross profit
margin in 1997 is primarily a result of the impact from the acquired companies.
The gross margin percentages of the acquired businesses, particularly Tylan,
were less than those of the pre-existing Company's businesses.

Operating Expenses

     Selling, general and administrative ("S,G&A") expenses in local currencies
decreased 1 percent in 1998, and increased 29 percent in 1997. The decrease in
1998 is due to cost containment programs initiated as part of the restructuring
activities. The increase in 1997 is due to incremental expenses associated with
the acquired businesses. Despite the decrease in spending in 1998, the Company
continued to invest in sales, service and marketing resources focused on
maintaining or improving customer services, supporting the launch of new
products and development of future sales initiatives aimed at improving the
Company's competitive positions.

     Research and development expenses in local currencies decreased 4 percent
in 1998, and increased 49 percent in 1997. The decrease in 1998 was primarily
due to the elimination of research and development expenses for non-strategic
product lines in the Microelectronics segment. The significant increase in 1997
was due to the addition of the acquired businesses.


                                       23
<PAGE>

     Litigation settlements totaling $11.8 million were recorded in the first
quarter of 1998 and are described in "Legal Proceedings" below.

Gain on Sale of Equity Securities

     Gain on sale of equity securities in 1998 primarily reflects the sale of
the Company's holdings in PerSeptive Biosystems common shares. As of December
31, 1997, the Company held 2.2 million shares of PerSeptive Biosystems common
stock and 1,000 shares of PerSeptive Biosystems preferred stock. On January 22,
1998, PerSeptive merged with The Perkin-Elmer Corporation. Pursuant to the
merger, all of the Company's holdings of common and preferred shares in
PerSeptive were converted into an aggregate of 587,000 shares of Perkin-Elmer
common stock. In the first quarter of 1998, the Company sold all of its shares
of Perkin-Elmer stock for approximately $32.5 million in cash. The Company also
sold all of its common shares of Glyko Biomedical Ltd. in the first quarter of
1998 and recognized a gain of $3.1 million.

     Gain on sale of equity securities in 1997 reflected the sale of a portion
of the Company's holdings in PerSeptive Biosystems common shares.

     Gain on sale of equity securities in 1996 reflected the sale of a
significant portion of the Company's stock holdings in a Japanese company. The
Company sold these securities to fund a new headquarters and research and
development facility in Japan. The cost of moving to this new facility was $2.0
million and was recorded in S,G&A expense.

Net Interest Expense

     Net interest expense in 1998 was $1.2 million less than 1997, primarily as
a result of a yen debt swap agreement entered into during December 1997. Net
interest expense in 1997 was significantly higher than net interest expense in
1996 due to increased borrowings, which were used to acquire both Amicon and
Tylan.

Provision for Income Taxes

     The effective income tax rate in 1998, including the restructuring program,
was a benefit of 15.4 percent. Excluding the effect of the restructuring
program, the effective income tax rate was 21.0 percent. The Company's effective
income tax rate in 1997, excluding the non-tax deductible write-off of purchased
research and development associated with the Tylan acquisition, was 21.0 percent
compared to 23.5 percent in 1996. The lower effective tax rate in 1997 as
compared to 1996 reflected a higher proportion of income generated by low tax
rate manufacturing sites.

Net Loss on Disposal of Discontinued Operations

     In 1994 the Company sold it's Waters Chromatography Division and, in a
separate transaction, sold certain assets of its non-membrane bioscience
business. During the third quarter of 1998, the Company completed a
comprehensive review of its accounting for these divestitures and recorded a
$5.8 million (after tax) net loss on the disposal of these businesses. As a
result of correspondence with the staff of the Securities and Exchange
Commission, the financial statements for all periods affected have been restated
to reflect a net loss on the disposal of


                                       24
<PAGE>

discontinued operations, net of taxes, of $0 in 1998, $2.0 million in 1996 and
$3.8 million in 1994. This change reflects the corrected accounting of the
remaining assets and liabilities associated with these divested operations.

Earnings Per Share

     Earnings per share in 1998 were impacted by restructuring charges and
several unusual items. Both 1997 and 1996 earnings per share included
significant write-offs of purchased research and development associated with the
Company's acquisition of Amicon and Tylan. Earnings per share in 1996 were also
impacted by the charge to discontinued operations discussed above. The impact of
these items is reflected in the above schedule of Restructuring Charges and
Unusual Items.

     Additionally, earnings per share were adversely impacted by the
comparatively stronger U.S. dollar, reducing earnings by $0.33 per share in 1998
as compared to 1997 and $0.26 per share in 1997 as compared to 1996.

                                   MARKET RISK

     The Company is exposed to market risks, which include changes in interest
rates and changes in foreign currency exchange rates as measured both against
the U.S. dollar and each other. The Company manages these market risks through
its normal financing and operating activities and, when appropriate, through the
use of derivative financial instruments. The Company does not invest in
derivative financial instruments for speculative purposes.

Foreign Exchange

     The Company derives approximately 60 percent of its revenues from customers
outside of the United States. This business is transacted through the Company's
network of international subsidiaries generally in the local currency. This
exposes the Company to risks associated with changes in foreign currency that
can impact revenues, net income and cash flow. Sourcing of product from
international subsidiary plants and active management of cross border currency
flows partially mitigates the impact of changes in foreign currency. However,
the Company has significant exposure to changes in the Japanese yen that can not
be mitigated through normal financing or operating activities. Accordingly, this
risk is managed through the use of derivative financial instruments. The income
and cash flow exposure is managed through the use of option contracts and the
net equity exposure is hedged through the use of debt swap agreements.


                                       25
<PAGE>

     The Company enters into foreign currency option contracts to sell yen on a
continuing basis in amounts and timing consistent with the underlying currency
transactions. The gains on these transactions, if any, partially offset the
realized foreign exchange losses on the underlying exposure. Gains, net of
premium costs, of $2.2 million in 1998, $4.4 million in 1997 and $2.7 million in
1996 were realized from these contracts and were recorded in cost of sales. At
December 31, 1998, the Company had open option contracts to sell yen aggregating
$47.3 million. All open options expire within 15 months. Premiums to purchase
foreign currency option contracts are amortized over the life of the contract.
Unamortized premiums of $1.4 million were included in other current assets as of
December 31, 1998.

     The Company's net equity exposure to the Japanese yen has been effectively
hedged through debt swap agreements covering both principal and interest.
Pursuant to these agreements $110,000 of debt with a weighted average fixed
interest rate of 6.7 percent was swapped for an equivalent value of yen at a
weighted average exchange rate of 114.6 yen to the dollar and a weighted average
fixed interest rate of 3.6 percent. The swap agreements mature in 2003 and 2004.

     Although the Company mitigates its foreign currency exchange risk through
the above activities, when the U.S. dollar strengthens against currencies in
which the Company transacts its business, sales and net income will be adversely
impacted.

Credit Risk

     The Company is exposed to concentrations of credit risk in cash and cash
equivalents, trade receivables and derivative financial instruments.

     Cash and cash equivalents are placed with major financial institutions with
high quality credit ratings. The amount placed with any one institution is
limited by policy.

     Trade receivables credit risk exposure is limited due to the large number
of customers and their dispersion across different industries and geographies.

     The Company is exposed to credit related risks associated with the
potential nonperformance by counterparties to the debt swap agreements. The
counterparties to these contracts are major financial institutions. The Company
continually monitors its positions and the credit ratings of its counterparties
and limits the amount of contracts it enters into with any one party.

                         CAPITAL RESOURCES AND LIQUIDITY

     Cash flow provided from operations was $51.5 million in 1998, $54.0 million
in 1997 and $102.2 million in 1996. Reported cash flow from operations was
reduced by $28.1 million in 1998 and $23.3 million in 1997 for costs associated
with the 1998 restructuring activities and the integration of the Amicon and
Tylan acquisitions. Excluding the restructuring and acquisition related
expenditures, cash flow from operations was $79.6 million in 1998 and $77.3
million in 1997.

     The improvement in 1998 cash flow from operations over 1997, excluding the
restructuring and acquisition related expenditures, is the result of a decrease
in working capital offset by a significant decline in operating income before
restructuring charges and unusual items. The favorable working capital
comparisons were a combination of a decrease in accounts receivable balances,
lower inventory levels and a reduction in other current assets. The improvement
in receivables reflects the impact of the lower sales volume and improved
collection experience. The improvement in inventory utilization was attributable
to asset management initiatives launched in


                                       26
<PAGE>

1998 and reserve actions taken as part of the 1998 restructuring program. The
reduction in other current assets reflects the sale of equity securities in
1998. The decline in operating income resulted from the downturn in the
semiconductor industry, the financial difficulties in Asia and the strength of
the U.S. dollar.

     The decrease in cash flow in 1997, excluding the expenditures related to
the Amicon and Tylan acquisitions, compared to that of 1996 is attributable to
higher levels of working capital and an increase in interest cost. Operating
income before these acquisition related charges in 1997 was slightly less than
that of 1996. The increase in working capital comparisons were a combination of
increases in both accounts receivable balances and inventory levels as a result
of the Tylan acquisition in January 1997 and an increase in other current
assets. The increase in accounts receivable was attributable to significantly
higher revenues in the fourth quarter of 1997 versus the comparable period of
the prior year. The increase in fourth quarter 1997 revenues was principally
attributable to the acquisition of Tylan in the first quarter of 1997. Inventory
balances increased in anticipation of future demand from customers in the
semiconductor market which failed to materialize. The increase in other current
assets reflects the pending sale of equity securities in the first quarter of
1998. These securities had previously been recorded in other assets. The
increase in interest expense in 1997 is directly related to borrowings used for
the acquisition of Amicon and Tylan.

     During 1999 the Company expects to spend approximately $17.0 million in
cash for costs accrued in connection with the restructuring program and for
costs to complete the integration of Amicon and Tylan. This will be funded by
cash flow from operating activities.

     Cash generated by the Company during 1998 was used to invest in property,
plant and equipment, and to pay dividends. Property, plant and equipment
expenditures for 1998 exceeded 1997 expenditures by $18.7 million primarily due
to $10.0 million spent for the expansion of the Biopharmaceutical membrane
manufacturing facility in Cork, Ireland and $24.4 million spent for the
construction of the new Microelectronics manufacturing facility in Allen, Texas.
The total cost of the Allen facility will be approximately $28.0 million. The
Company expects capital expenditures for 1999 to be in the range of $40.0 to
$45.0 million. Depreciation expense in 1999 is expected to be slightly higher
than in 1998 as a result of the increased capital expenditures in 1998. The
Company has no significant commitments for capital expenditures at December 31,
1998.

     In 1997, cash generated from operating activities, along with increased
borrowings, was used for the acquisition of Tylan, the purchase of certain
assets and technology of FAStar Ltd. and FAS Holding Company, and capital
expenditures. In 1996 the Company used $58.4 million of cash from operations to
purchase shares of its outstanding common stock. During 1997 and 1996 the
Company continued to invest in capacity expansions and the upgrade of
manufacturing facilities and in information technology systems and equipment.

     The net cash outflow of $2.2 million and $3.5 million in 1998 and 1997,
respectively, for operations discontinued in 1994 were in line with the
Company's expectations. At December 31,


                                       27
<PAGE>

1998, the Company had no significant remaining obligations related to these
discontinued operations.

     In May 1998, the Company reduced the maximum funds available under its
unsecured Revolving Credit Agreement, dated January 22, 1997 (the "Credit
Agreement") from $350 million to $250 million.

     The Company's financial results for the quarter ended September 30, 1998
made it necessary for the Company to renegotiate certain financial covenants
relating to operating cash flow and interest coverage under the Credit
Agreement, and under the $100 million 6.88 percent note due in 2004 (the "2004
note"). Pursuant to this renegotiation, the lenders involved waived defaults
under those covenants and accepted less restrictive operating cash flow and
interest coverage covenants for 1999 and a portion of 2000. The Company agreed
to an additional minimum earnings covenant, the payment of amendment fees
totaling approximately $0.6 million, and to increases in both the interest rate
and the facility fees thereunder. Interest is payable under the Credit Agreement
at a floating U.S. dollar deposit rate, defined as LIBOR, plus a margin. The
Company agreed to an increase in this margin from a range of 0.18 to 0.65
percent to a range of 0.23 to 1.125 percent. The Company also agreed to an
increase in the facility fee under the Credit Agreement from a rate ranging from
0.10 to 0.25 percent to a rate ranging from 0.125 to 0.375 percent. The interest
rate under the 2004 note also increased from 6.88 percent to 7.23 percent as of
November 2, 1998.

     In November 1998 Moody's Investor Services downgraded the Company's debt
rating to Ba2 from Baa3; a rating which Moody's characterizes as below
"investment grade". Standard & Poors Corporation also downgraded the Company's
debt rating from BBB- to BB+. The Company expects that this development may make
it more difficult for the Company to access money markets should it become
necessary to do so.

     The use of debt to finance the acquisitions of Amicon and Tylan
substantially increased the Company's debt to equity ratio. In the first quarter
of 1997, the Company successfully completed a public debt offering. Proceeds
from the offering of $197.9 million were used to repay borrowings outstanding
under the Credit Agreement.

     At December 31, 1998, the Company had additional borrowing capacity of
$80.0 million under its Credit Agreement.

         The Company believes that its balances of cash and cash equivalents,
funds available under the Credit Agreement and cash flows expected to be
generated by future operating activities will be sufficient to meet its cash
requirements over the next twelve to twenty-four months. However, given the
Company's current debt ratings, if the Company should need to obtain additional
borrowings, there can be no assurance that such borrowings could be obtained at
favorable rates.

                                    DIVIDENDS


                                       28
<PAGE>

     The quarterly dividend was increased in the second quarter of 1998 from
$0.10 to $0.11 per share. Dividends paid in 1998 were $18.4 million.

                                      EURO

     On January 1, 1999, several member countries of the European Union
established fixed conversion rates between their existing sovereign "legacy"
currencies, and adopted the Euro as their new common legal currency. As of that
date, the Euro began trading on currency exchanges and the legacy currencies
will remain legal tender in the participating countries for a transition period
between January 1, 1999 and January 1, 2002.

     The Euro conversion may affect cross-border competition by creating greater
cross-border price transparency. The Company is assessing its pricing/marketing
strategy in order to ensure that it remains competitive in a broader European
market. The Company has assessed its information technology systems to allow for
transactions to take place in both the legacy currencies and the Euro and the
eventual elimination of the legacy currencies, and is reviewing whether certain
existing customer pricing and vendor contracts will need to be modified. The
currency risk and risk management for operations in participating countries may
be reduced as the legacy currencies are converted to the Euro. Final accounting,
tax and governmental legal and regulatory guidance are not available. The
Company is evaluating issues involving introduction of the Euro. The Company
began processing customer orders and invoicing in Euro during the first week of
January 1999. Based on current information and current assessments, the Company
does not expect that the Euro conversion will have a material adverse effect on
its business or financial condition.

                                    YEAR 2000

     The Company is aware of the "Year 2000" issue that will affect certain
products and systems that were not designed to properly handle the transition
between the twentieth and twenty-first centuries. The Company has recognized the
need to ensure that its business operations will not be adversely impacted by
the Year 2000. Accordingly, the Company has authorized an internal team to
assess the Company's Year 2000 readiness and to determine the steps necessary to
address its Year 2000 issues. Among the areas that have been or are being
assessed are the Company's internal information systems, its manufacturing
equipment, its facilities and its products. In addition, the team has begun the
assessment of the Year 2000 readiness of the Company's key suppliers and
financial institutions.

     As part of the assessment of its Year 2000 readiness, the Company has
identified and substantially completed testing of its key internal information
systems (which includes order entry, manufacturing and financial systems) as
well as its facilities, manufacturing and other key systems for Year 2000
compliance. The testing to date has identified no significant issues. By
mid-1999, the Company expects to complete implementation of all modifications or
replacements necessary to make all key systems Year 2000 compliant.


                                       29
<PAGE>

     The Company has nearly completed its testing of the Year 2000 compliance of
its products. A large majority of the Company's products do not present Year
2000 compliance issues, and for those products that do present issues the
Company has communicated with its customers regarding appropriate solutions.

     In addition to testing of the Company's internal systems and its products,
the Company has begun implementing its plan of communication with its suppliers
and financial institutions regarding their Year 2000 readiness and the Year 2000
compliance of the products and services that they provide to the Company. As of
December 31, 1998 the Company has not identified any important Year 2000
readiness issues of its key supply-chain partners. The Company expects to
substantially complete its risk analysis and to develop contingency plans where
reasonably possible for dealing with any risks raised by such non-readiness
before July 1999.

     The Company currently estimates that the total costs that will be incurred
in its Year 2000 assessment and remediation program will be in the range of $1.0
million to $3.0 million, of which approximately $0.5 million has been incurred
through December 31, 1998. Incremental spending has not been and is not expected
to be material because most Year 2000 readiness costs will be met with amounts
that are normally budgeted for procurement and maintenance of the Company's
information systems and infrastructure. However, the redirection of spending to
the implementation of its Year 2000 readiness program may in some instances
delay productivity improvements.

     The Year 2000 presents a number of risks and uncertainties that could
affect the Company notwithstanding the successful implementation of its Year
2000 readiness program. Those risks and uncertainties include, but are not
limited to, failure of utilities or transportation systems, competition for
personnel skilled in remediation of Year 2000 issues, and the nature of
government responses to the Year 2000.

     Though the Company continues to believe that the Year 2000 will not have a
material impact on its business, financial condition or results of operations,
the occurrence of any of the above risks or uncertainties or the failure to
successfully implement the Company's Year 2000 readiness program could result in
such a material impact.

                                LEGAL PROCEEDINGS

     On May 2, 1997, the Environmental Quality Board ("EQB") of Puerto Rico
served an administrative order on Millipore Cidra, Inc., a wholly-owned
subsidiary of the Company. The administrative order ("EQB order") alleged: (i)
that the nitrocellulose filter membrane scrap produced by Millipore Cidra's
manufacturing operations is a hazardous waste as defined in EQB regulations;
(ii) that Millipore Cidra, Inc. failed to manage, transport and dispose of the
nitrocellulose membrane scrap as a hazardous waste; and (iii) that such failure
violated EQB regulations. The EQB order proposed penalties in the amount of
$96.5 million and ordered Millipore Cidra, Inc. to manage the nitrocellulose
membrane scrap as a hazardous waste. The Company recorded a charge of $5.0
million in the first quarter of 1998 reflecting its costs to settle this matter.


                                       30
<PAGE>

     The Company also recorded a charge of $3.1 million in the first quarter of
1998 reflecting its costs to settle a separate lawsuit with an intervening party
in the EQB administrative case described above.

       The Company recorded a charge of $3.7 million in the first quarter of
1998 to settle a patent lawsuit with Mott Metallurgical Corporation. In the
lawsuit, each party claimed infringement of one of its patents by the other. As
part of the settlement, the parties agreed to cross license the two patents at
issue.

       The Company and Waters Corporation were engaged in an arbitration
proceeding and a related litigation in the Superior Court, Middlesex,
Massachusetts, both of which commenced in the second quarter of 1995 with
respect to the amount of assets required to be transferred by the Company's
Retirement Plan in connection with the Company's divestiture of its former
Chromatography Division. In the second quarter of 1996, Waters filed a Complaint
in the Federal District Court of Massachusetts alleging that the Company's
operation of its Retirement Plan violated ERISA and certain sections of the
Internal Revenue Code. Judgments in the Company's favor were handed down by both
the Massachusetts Superior Court and the Federal District Court in May 1997 and
July 1997, respectively. Waters appealed the federal court judgment, which was
affirmed by the United States Court of Appeals for the First Circuit by opinion
dated April 3, 1998. On June 2, 1998, the Company transferred $2.4 million
(including interest through the date of transfer) from its Retirement Plan to
the Waters Retirement Plan as provided by the amended and restated Purchase and
Sale Agreement. In order to fund the transfer, in the second quarter of 1998 the
Company made a contribution of $2.2 million to its Retirement Plan in accordance
with ERISA funding requirements.

                       BUSINESS OUTLOOK AND UNCERTAINTIES

     The following statements are based on current expectations. These
statements are forward looking and actual results may differ materially.

Sales: The semiconductor industry in which the Microelectronics business segment
participates is highly cyclical. The current downturn began in the middle of
1996 and is expected to continue into 1999. Independent market research for the
semiconductor industry suggests that a moderate growth cycle will begin in the
second half of 1999 with stronger growth in 2000. However, capital equipment
sales, which represents approximately 40 percent of the Microelectronics segment
revenues, could lag the industry upturn due to excess capacity in certain
segments of the market.

     The Biopharmaceutical & Research segment has demonstrated relatively stable
patterns of revenue growth. Customers in this segment, particularly those
involved in the production of sterile drugs, purchase standardized products for
use in validated production processes. Accordingly, it is important to
participate in the development of new drugs / New Chemical Entities in order to
be designed into the ultimate manufacturing process. Adoption of new
technologies and products requires a lengthy validation process prior to
adoption. The growth of


                                       31
<PAGE>

this segment is highly leveraged on the development and approval of New Chemical
Entities. It is difficult to ascertain the number or timing of such approvals,
however, the number of drugs at various stages in the approval process has
increased significantly over the past two years. The remaining driver of this
segment is research and development spending which has been relatively stable
and is expected to continue with growth in the mid single digits.

     Both of the Company's business segments were adversely impacted by the
financial difficulties in the Asian economies, which began in late 1997 and
continued through 1998. The continuation of these conditions would moderate the
growth rate of both segments.

     Approximately 60 percent of the Company's sales are to customers outside of
the United States and are generally made in local currency. As previously noted,
1998 sales and earnings were negatively impacted by a strong US dollar,
particularly against the Japanese yen and the Korean won. Late in 1998, both of
these currencies began to show signs of strengthening. However, in early 1999,
European currencies have weakened offsetting the impact of the stronger Asian
currencies. Therefore if foreign exchange rates remain at the March 3, 1999
level, there will be a minimal foreign exchange impact on first quarter 1999 and
full-year 1999 reported sales growth as compared to 1998. Any change in foreign
exchange rates will be reflected in the results of operations.

Gross Margins: The Company expects gross margin percentages in 1999 to improve
as compared with those of 1998. Margins will benefit from the impact of various
restructuring programs and the increased volume in the Company's manufacturing
plants to support anticipated sales growth. To the extent that foreign currency
exchange rates relative to the U.S. dollar remain at March 3, 1999 levels, first
quarter 1999 and full year margins will not be significantly impacted from
foreign currency exchange rate fluctuations.

Operating Expenses: The Company expects that operating expenses in local
currencies, as a percentage of sales, in 1999 will be consistent with the
percentage achieved in previous years.

Interest Expense: The Company expects net interest expense in 1999 will be
slightly higher than 1998 as a result of the revised terms for the Credit
Agreement and the 2004 note, as previously noted, net of the impact of
anticipated reduced short-term borrowings.

Provision for Income Taxes: The effective tax rate in 1999 is projected to be in
the range of 21 percent; consistent with the effective rate for 1998, excluding
the effect of the restructuring program. The tax rate estimate is based on the
Company's current expectations for 1999 income and current tax law and,
therefore, is subject to change. At December 31, 1998, the Company had a net
deferred tax asset of $108.5 million. Although realization of the asset is not
assured, the Company believes it is more likely than not that this net deferred
tax asset will be realized. The amount of the deferred tax asset considered
realizable, however, could be reduced if the near term estimates of future
taxable income are reduced, which could result in the Company's 1999 effective
tax rate increasing above the expected range of 21 percent.


                                       32
<PAGE>

Capital Spending: The Company expects to spend between $40.0 to $45.0 million
for fixed asset additions in 1999. The Company does not believe it needs to
significantly expand or add manufacturing capacity in 1999 to handle its
anticipated 1999 sales growth. The Company will continue to invest in tooling
within its manufacturing plants and in information technology. Accordingly, the
Company also expects that 1999 depreciation expense will be higher than 1998
depreciation expense.

                           FORWARD-LOOKING STATEMENTS

The matters discussed herein, as well as in future oral and written statements
by management of the Company, that are forward-looking statements, are based on
current management expectations that involve substantial risks and uncertainties
which could cause actual results to differ materially from the results expressed
in, or implied by, these forward-looking statements. When used herein or in such
statements, the words "anticipate", "believe", "estimate", "expect", "may",
"will", "should" or the negative thereof and similar expressions as they relate
to the Company or its management are intended to identify such forward-looking
statements. In addition to the matters discussed herein, potential risks and
uncertainties that could affect the Company's future operating results include,
without limitation, foreign exchange rates; increased regulatory concerns on the
part of the biopharmaceutical industry; further consolidation of drug
manufacturers; competitive factors such as new membrane technology, and/or a new
method of chip manufacture which relies less heavily on purified chemicals and
gases; availability of component products on a timely basis; inventory risks due
to shifts in market demand; change in product mix; conditions in the economy in
general, including uncertainties in selected Asian economies, and in the
microelectronics manufacturing market in particular; the difficulty in
integrating acquired companies; the failure to realize the savings contemplated
by certain restructuring activities; potential environmental liabilities; the
inability to utilize technology in current or planned products due to overriding
rights by third parties, and the other risk factors described elsewhere in this
Form 10-K/A Annual Report, and in particular the matters described in Item 1
above under the heading "Environmental Matters". Specific reference is also made
to the risks and uncertainties described in the Registration Statement on Form
S-3 (Registration 333-23025) filed by the Company in connection with its
offering of $300 million of Debt Securities in May 1997 ( in particular, to
those risks described under "Factors Which May Affect Future Results"). See also
"Legal Proceedings" and "Business Outlook and Uncertainties" above.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk.

     The information called for by this item is set forth under the heading
"Market Risk" in Management's Discussion and Analysis contained in Item 7 above
which information is hereby incorporated by reference.

Item 8. Financial Statements and Supplementary Data.

     The information called for by this item is set forth in the Financial
Statements at the end of this report commencing at the pages indicated below:

<TABLE>
     <S>                                                                             <C>
     Consolidated Statements of Income for the three years ended
         December 31, 1998, 1997 and 1996............................................F-2
</TABLE>


                                       33
<PAGE>

<TABLE>
     <S>                                                                             <C>
     Consolidated Balance Sheets for the years ended December 31, 1998 and 1997......F-3
     Consolidated Statements of Shareholders' Equity for the three
         years ended December 31, 1998, 1997 and 1996................................F-4
     Consolidated Statements of Cash Flows for the three years
         ended December 31, 1998, 1997 and 1996......................................F-5
     Notes to Consolidated Financial Statements......................................F-6
     Report of Independent Accountants...............................................F-29
     Quarterly Results (Unaudited)...................................................F-30
</TABLE>

All of the foregoing Financial Statements are hereby incorporated by reference.

Item 9.  Disagreements on Accounting and Financial Disclosure.

     This item is not applicable.


                                       34
<PAGE>

                                    PART III

Item 10. Directors and Executive Officers of Millipore.

     The information called for by this item with respect to registrant's
directors and compliance with Section 16(a) of the Securities Exchange Act of
1934 as amended is set forth under the caption "Management and Election of
Directors--Nominees for Election as Directors" in Millipore's definitive Proxy
Statement for Millipore's Annual Meeting of Stockholders to be held on April 22,
1999, and to be filed with the Securities and Exchange Commission on or about
March 19, 1999, which information is hereby incorporated herein by reference.

     Information called for by this item with respect to registrant's executive
officers is set forth under "Executive Officers of Millipore" in Item 1 of this
report.

Item 11. Executive Compensation.

     The information called for by this item is set forth under the caption
"Management and Election of Directors-Executive Compensation" in Millipore's
definitive Proxy Statement for Millipore's Annual Meeting of Stockholders to be
held on April 22, 1999, and to be filed with the Securities and Exchange
Commission on or about March 19, 1999, which information is hereby incorporated
herein by reference.

Item 12. Security Ownership of Certain Beneficial Owners and Management.

     The information called for by this item is set forth under the caption
"Ownership of Millipore Common Stock" in Millipore's definitive Proxy Statement
for Millipore's Annual Meeting of Stockholders to be held April 22, 1999, and to
be filed with the Securities and Exchange Commission on or about March 19, 1999,
which information is hereby incorporated herein by reference.

Item 13. Certain Relationships and Related Transactions.

     This item is not applicable.


                                       35
<PAGE>

                                     PART IV

Item 14. Exhibits, Financial Statement Schedules, and Reports on Form 8-K.

(a)  The following documents are filed as a part of this Report:

     1.   Financial Statements.

               The following Financial Statements are filed as part of this
          report (See index on page F-1):

          Consolidated Statements of Income for the three years ended December
               31, 1998, 1997 and 1996
          Consolidated Balance Sheets for the years ended December 31, 1998 and
               1997
          Consolidated Statements of Shareholders' Equity for the three years
               ended December 31, 1998, 1997 and 1996
          Consolidated Statements of Cash Flows for the three years ended
               December 31, 1998, 1997 and 1996
          Notes to Consolidated Financial Statements
          Report of Independent Accountants
          Quarterly Results (Unaudited)

     2.   Financial Statement Schedules.

               No financial statement schedules have been included because they
          are not applicable or not required under Regulation S-X.

     3.   List of Exhibits.

     A.   The following exhibits are incorporated by reference:

<TABLE>
<CAPTION>
Reg. S-K
Item 601(b)                                                     Referenced Document on
Reference      Document Incorporated                            file with the Commission
---------      ---------------------                            ------------------------

<S>      <C>                                               <C>
(3) (i)  Restated Articles of Organization,                Form 10-K Report for year ended December
         as amended May 6, 1996                            31, 1996 [Commission File No. 0-1052]

    (ii) By Laws, as amended                               Form 10-K Report for year ended December
                                                           31, 1990 [Commission File No. 0-1052]

(4)      Indenture dated as of May 3, 1995,                Registration Statement on Form S-4
         relating to the issuance of $100,000,000          (No. 33-58117) and an accompanying
         principal amount of Company's                     Form T-1)
         6.78% Senior Notes due 2004

(4)      Indenture dated as of April 1, 1997,              Registration Statement on Form S-3
         relating to the issuance of Debt                  (No. 333-23025) and an accompanying
         Securities in Series                              Form T-1)
</TABLE>


                                       36
<PAGE>

<TABLE>
<CAPTION>
Reg. S-K
Item 601(b)                                                     Referenced Document on
Reference      Document Incorporated                            file with the Commission
---------      ---------------------                            ------------------------

<S>      <C>                                               <C>
(10)     Shareholder Rights Agreement                      Form 8-K Report for April, 1998
[cont'd] dated as of April 15, 1988, as amended            [Commission File No. 0-1052]
         and restated April 16, 1998
         between Millipore and The
         First National Bank of Boston

         Distribution Agreement, dated as of               Form 10-K Report for the year
         July 1, 1996, by and among Company                ended December 31, 1996
         and Fisher Scientific Company                     [Commission File No. 0-1052]

         Revolving Credit Agreement, dated as of           Form 10-K Report for the year
         January 22, 1997, among Millipore                 ended December 31, 1996
         Corporation and The First National                [Commission File No. 0-1052]
         Bank of Boston, ABM AMRO Bank N.V.
         and certain other lending institutions

         Long Term Restricted Stock (Incentive)            Form 10-K Report for the year ended
         Plan for Senior Management*                       December 31,1984 [Commission File No. 0-1052]

         1995 Combined Stock Option Plan,                  Form 10-K Report for the year ended
         as amended*                                       December 31, 1997 [Commission File
                                                           No. 0-1052]

         1985 Combined Stock Option Plan*                  Form 10-K Report for the year ended
                                                           December 31, 1985 [Commission File
                                                           No. 0-1052]

         Supplemental Savings and Retirement               Form 10-K Report for the year
         Plan for Key Salaried Employees of                ended December 31, 1984
         Millipore Corporation*                            [Commission File No. 0-1052]

         Executive Termination                             Form 10-K Report for the year
         Agreement*                                        ended December 31, 1984
                                                           [Commission File No. 0-1052]

         1995 Employee Stock Purchase Plan                 Form 10-K Report for the year
                                                           ended December 31, 1994
                                                           [Commission File No. 0-1052]

         1995 Management Incentive Plan*                   Form 10-K Report for the year
                                                           ended December 31, 1994
                                                           [Commission File No. 0-1052]
</TABLE>

--------------------------------------------------------------------------------
*  A "management contract or compensatory plan"


                                       37
<PAGE>

<TABLE>
<CAPTION>
Reg. S-K
Item 601(b)                                                     Referenced Document on
Reference      Document Incorporated                            file with the Commission
---------      ---------------------                            ------------------------

<S>      <C>                                               <C>
 (10)    Second Amendment, effective as of                 Form 10-K Report for the year
[cont'd] September 30, 1998, to Revolving                  ended December 31, 1998
         Credit Agreement, dated as of                     [Commission File No. 0-1052]
         January 22, 1997, among Millipore
         Corporation and The First National Bank
         of Boston, ABM AMRO Bank N.V.
         and certain other lending institutions

         Note Purchase and Exchange Agreement,             Form 10-K Report for the year
         as amended through November 2, 1998,              ended December 31, 1998
         between Millipore Corporation and                 [Commission File No. 0-1052]
         Metropolitan Life Insurance Company

         Form of letter agreement with directors           Form 10-K Report for the year
         relating to the deferral of directors fees        ended December 31, 1998
         and conversion into phantom stock units*          [Commission File No. 0-1052]

         1989 Stock Option Plan for                        Form 10-K Report for the year
         Non-Employee Directors*                           ended December 31, 1998
                                                           [Commission File No. 0-1052]

         1989 Stock Option Plan                            Form 10-K Report for the year
         for Non-Employee Directors*                       ended December 31, 1998
                                                           [Commission File No. 0-1052]

         Commercial Lease Agreement                        Form 10-K Report for the year
         between EBP 3, Ltd. and                           ended December 31, 1998
         Millipore Corporation with respect                [Commission File No. 0-1052]
         to Premises located in Allen, Texas

(11)     Computation of Per Share Earnings                 The computation can be clearly
                                                           determined from the material set
                                                           forth in Note F to the Financial
                                                           Statements contained on page F-14

(21)     Subsidiaries of Millipore                         Form 10-K Report for the year
                                                           ended December 31, 1998
                                                           [Commission File No. 0-1052]
</TABLE>

--------------------------------------------------------------------------------
* A "management contract or compensatory plan"


                                       38
<PAGE>

     B. The following Exhibits are filed herewith:

Reg. S-K
Item 601(b)
Reference           Documents Filed Herewith
---------           ------------------------

(10)     ISDA Master Agreement, dated January 27, 1994, as amended, with Morgan
         Guaranty Trust Company of New York

(23)     Consent of Independent Accountants relating to the incorporation of
         their report on the Consolidated Financial Statements into
         Company's Securities Act Registration Nos. 2-72124, 2-85698,
         2-91432, 2-97280, 33-37319, 33-37323, 33-11-790, 33-59005,
         33-10801, 333-79227 and 333-90127 on Form S-8, Securities Act
         Registration Nos. 2-84252, 33-9706, 33-22196, 33-47213 and
         333-23025 on Form S-3, Securities Act Registration No. 333-80781 on
         Form S-3/A and Securities Act Registration No. 33-58117 on Form
         S-4.

(24)     Power of Attorney

(27)     Financial Data Schedule

     (b) Reports on Form 8-K.

             No reports on Form 8-K have been filed by Registrant during the
         last quarter of the fiscal year ended December 31, 1998.

     (c) Exhibits.

             The Company hereby files as exhibits to this Annual Report on
         Form 10-K/A those exhibits listed in Item 14(a)(3)(B) above, which
         are attached hereto.

     (d) Financial Statement Schedules.

             No financial statement schedules have been included because they
         are not applicable or are not required under Regulation S-X.


                                       39
<PAGE>

                                   SIGNATURES

     Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized.

                                             MILLIPORE CORPORATION

Dated: November 12, 1999                     By /s/ JEFFREY RUDIN
                                                -----------------------------
                                                Jeffrey Rudin, Vice President

     Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following persons on behalf of the
Registrant and in the capacity and on the dates indicated.

SIGNATURE                     TITLE                           DATE
---------                     -----                           ----


C.WILLIAM ZADEL*              Chairman, President,            November 12, 1999
-----------------------       Chief Executive Officer,
C. William Zadel              and Director


/s/ FRANCIS J. LUNGER         Vice President,                 November 12, 1999
-----------------------       Chief Financial Officer
Francis J. Lunger


/s/ KATHLEEN B. ALLEN         Corporate Controller            November 12, 1999
-----------------------
Kathleen B. Allen


SAMUEL C. BUTLER*             Director                        November 12, 1999
-----------------------
Samuel C. Butler


ROBERT C. BISHOP*             Director                        November 12, 1999
-----------------------
Robert C. Bishop


ROBERT E. CALDWELL*           Director                        November 12, 1999
-----------------------
Robert E. Caldwell

ELAINE L. CHAO*               Director                        November 12, 1999
-----------------------
Elaine L. Chao


MAUREEN A. HENDRICKS*         Director                        November 12, 1999
-----------------------
Maureen A. Hendricks


                                       40
<PAGE>

                              Director                        November 12, 1999
-----------------------
Mark Hoffman


                              Director                        November 12, 1999
-----------------------
Thomas O. Pyle


/s/ RICHARD J. LANE*          Director                        November 12, 1999
-----------------------
Richard J. Lane


                              Director                        November 12, 1999
-----------------------
John F. Reno

*By /s/ JEFFREY RUDIN
---------------------------------
Jeffrey Rudin, Attorney-in-Fact


                                       41
<PAGE>

                              MILLIPORE CORPORATION

              INDEX TO FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Consolidated Statements of Income
   for the three years ended December 31, 1998, 1997 and 1996...........F-2

Consolidated Balance Sheets
     for the years ended December 31, 1998 and 1997.....................F-3

Consolidated Statements of Shareholders' Equity
   for the three years ended December 31, 1998, 1997 and 1996...........F-4

Consolidated Statements of Cash Flows
   for the three years ended December 31, 1998, 1997 and 1996...........F-5

Notes to Consolidated Financial Statements..............................F-6

Report of Independent Accountants.......................................F-29

Quarterly Results (Unaudited)...........................................F-30


                                       F-1
<PAGE>

                              MILLIPORE CORPORATION

                        CONSOLIDATED STATEMENTS OF INCOME

<TABLE>
<CAPTION>
                                                                                Year ended December 31
                                                                         ------------------------------------
                                                                         1998            1997            1996
                                                                       ---------       ---------       ---------
                                                                       (In thousands except per share data)
<S>                                                                    <C>             <C>             <C>
Net sales .......................................................      $ 699,307       $ 758,919       $ 618,735
Cost of sales ...................................................        364,467         342,237         249,443
                                                                       ---------       ---------       ---------
     Gross profit ...............................................        334,840         416,682         369,292
Selling, general and administrative expenses ....................        236,521         245,585         202,140
Research and development expenses ...............................         53,578          55,899          38,429
Purchased research and development expense ......................             --         114,091          68,311
Restructuring charges ...........................................         33,641              --              --
Settlement of litigation ........................................         11,766              --              --
                                                                       ---------       ---------       ---------
     Operating (loss) income ....................................           (666)          1,107          60,412
Gain on sale of equity securities ...............................         35,594           8,330           5,329
Interest income .................................................          3,090           2,937           2,780
Interest expense ................................................        (29,474)        (30,484)        (11,498)
                                                                       ---------       ---------       ---------
Income (loss) from continuing operations before income taxes ....          8,544         (18,110)         57,023
(Benefit) provision for income taxes ............................         (1,320)         20,674          13,401
                                                                       ---------       ---------       ---------
Net income (loss) from continuing operations ....................          9,864         (38,784)         43,622
Net loss on disposal of discontinued operations .................             --              --           2,036
                                                                       ---------       ---------       ---------
Net income (loss) ...............................................      $   9,864       $ (38,784)      $  41,586
                                                                       =========       =========       =========
Basic net income (loss) per share
     Income (loss) from continuing operations ...................      $    0.22       $   (0.89)      $    1.00
     Net income (loss) per share ................................      $    0.22       $   (0.89)      $    0.95
Diluted net income (loss) per share
     Income (loss) from continuing operations ...................      $    0.22       $   (0.89)      $    0.98
     Net income (loss) per share ................................      $    0.22       $   (0.89)      $    0.94
Weighted average shares outstanding
     Basic ......................................................         43,864          43,527          43,602
     Diluted ....................................................         44,289          43,527          44,457
</TABLE>

         The accompanying notes are an integral part of the consolidated
                              financial statements.


                                       F-2
<PAGE>

                              MILLIPORE CORPORATION

                           CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>
                                                                                                  December 31
                                                                                             ---------------------
                                                                                             1998             1997
                                                                                           ---------       ---------
                                                                                                 (In thousands)
                                        ASSETS
<S>                                                                                        <C>             <C>
Current assets:
     Cash and cash equivalents ......................................................      $  36,022       $  20,269
     Accounts receivable (less allowance for doubtful accounts of $3,149 in 1998
        and $3,010 in 1997) .........................................................        154,258         176,585
     Inventories ....................................................................        107,241         127,192
     Other current assets ...........................................................          7,231          28,362

                                                                                           ---------       ---------
          Total current assets ......................................................        304,752         352,408
Property, plant and equipment, net ..................................................        237,414         220,094
Intangible assets (less accumulated amortization of $17,289 in 1998 and $10,000
   in 1997) .                                                                                 76,507          77,394
Deferred income taxes ...............................................................        108,545          90,455
Other assets  .                                                                               35,222          31,950
                                                                                           ---------       ---------
          Total assets ..............................................................      $ 762,440       $ 772,301
                                                                                           =========       =========
                         LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
     Notes payable ..................................................................      $ 171,340       $ 165,576
     Accounts payable ...............................................................         39,729          46,088
     Accrued expenses ...............................................................         75,544          79,660
     Dividends payable ..............................................................          4,847           4,369
     Accrued retirement plan contributions ..........................................          6,931           7,088
     Accrued income taxes payable ...................................................            290          13,458
                                                                                           ---------       ---------
          Total current liabilities .................................................        298,681         316,239
Long-term debt ......................................................................        299,110         286,844
Other liabilities ...................................................................         27,741          26,071
Commitments and contingent liabilities ..............................................             --              --
Shareholders' equity:
     Common stock, par value $1.00 per share, 120,000 shares authorized;
        56,988 shares issued as of December 31, 1998 and 1997 .......................         56,988          56,988
     Additional paid-in capital .....................................................         11,780          10,927
     Retained earnings ..............................................................        472,746         484,442
     Accumulated other comprehensive loss ...........................................        (27,668)        (21,720)
                                                                                           ---------       ---------
                                                                                             513,846         530,637
     Less: Treasury stock at cost, 12,921 and 13,291 shares as of December 31,
        1998 and 1997, respectively                                                         (376,938)       (387,490)
                                                                                           ---------       ---------
          Total shareholders' equity ................................................        136,908         143,147
                                                                                           ---------       ---------
Total liabilities and shareholders' equity ..........................................      $ 762,440       $ 772,301
                                                                                           =========       =========
</TABLE>

         The accompanying notes are an integral part of the consolidated
                              financial statements


                                       F-3
<PAGE>

                              MILLIPORE CORPORATION

                 CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY

                   YEAR ENDED DECEMBER 31, 1998, 1997 AND 1996

                      (In thousands, except per share data)

<TABLE>
<CAPTION>
                                                                                  Accumulated Other
                                                                                  -----------------
                                                                             Comprehensive Income (Loss)
                                                                             ---------------------------

                                                                Common Stock
                                                                ------------
                                                                                    Additional                     Unrealized
                                                                                    ----------                     ----------
                                                                          Par         Paid-in        Retained    gain (loss) on
                                                                          ---         -------        --------    --------------
                                                           Shares        Value        Capital        Earnings      securities
                                                           ------        -----        -------        --------      ----------

<S>                                                        <C>        <C>            <C>           <C>            <C>
Balance at December 31, 1995..........................     56,988     $   56,988     $      --     $  519,822     $        --
                                                           ======     ==========     =========     ==========     ===========
Comprehensive income:
    Net income........................................                                                 41,586
       Unrealized holding gains arising during
           period, net of tax of $9,075...............                                                                 13,613
       Less: reclassification adjustment for
          gains realized in net income, net of
          tax of $1,252...............................                                                                 (4,077)
                                                                                                                  -----------
       Net unrealized gain on securities
          available for sale, net of income tax
          expense of $6,358...........................                                                                  9,536
       Translation adjustments........................
    Total comprehensive income........................
Cash dividends declared, $0.35 per share..............                                                (15,261)
Treasury stock acquired...............................
Impact of stock plans.................................                                                 (3,396)
U.S. tax benefit from stock plan activity.............                                   8,800
                                                                                     ---------     ----------     -----------
Balance at December 31, 1996..........................     56,988     $   56,988     $   8,800     $  542,751     $     9,536
                                                           ======     ==========     =========     ==========     ===========
Comprehensive loss:
    Net loss..........................................                                                (38,784)
       Unrealized holding gains arising during
          period, net of tax of $10,107...............                                                                 15,160
       Less: reclassification adjustment for
          gains realized in net income, net of
          tax of $1,749...............................                                                                 (6,581)
                                                                                                                  -----------
       Net unrealized gain on securities
          available for sale, net of income tax
          expense of $5,719...........................                                                                  8,579
       Translation adjustments........................
    Total comprehensive loss..........................
Cash dividends declared, $0.39 per share..............                                                (17,028)
Impact of stock plans.................................                                                 (2,497)
U.S. tax benefit from stock plan activity.............                                   2,127
                                                                                     ---------     ----------     -----------
Balance at December 31, 1997..........................     56,988     $   56,988     $  10,927     $  484,442     $    18,115
                                                           ======     ==========     =========     ==========     ===========
Comprehensive loss:
    Net income........................................                                                  9,864
       Unrealized holding gains arising during
          period, net of tax of $6,564................                                                                  9,846
       Less: reclassification adjustment for
          gains realized in net income, net of
          tax of $7,475...............................                                                                (28,119)
                                                                                                                  -----------
       Net unrealized loss on securities
          available for sale, net of income tax
          benefit of $(12,182)........................                                                                (18,273)
       Translation adjustments........................
    Total comprehensive loss..........................
Cash dividends declared, $0.43 per share..............                                                (18,905)
Impact of stock plans.................................                                                 (2,655)
U.S. tax benefit from stock plan activity.............                                     853
                                                                                     ---------     ----------     -----------
Balance at December 31, 1998..........................     56,988     $   56,988     $  11,780     $  472,746     $      (158)
                                                           ======     ==========     =========     ==========     ===========

<CAPTION>
                                                                                  Accumulated Other
                                                                                  -----------------
                                                                             Comprehensive Income (Loss)
                                                                             ---------------------------

                                                                                           Treasury Stock
                                                                                           --------------

                                                            Translation                                                Total
                                                            -----------                                            Shareholders'
                                                            Adjustments      Total       Shares          Cost         Equity
                                                            -----------      -----       ------          ----         ------

<S>                                                          <C>           <C>          <C>          <C>             <C>
Balance at December 31, 1995..........................       $     375     $     375    (12,727)     $ (354,521)     $ 222,664
                                                             =========     =========    =======      ==========      =========
Comprehensive income:
    Net income........................................                                                                  41,586
       Unrealized holding gains arising during
           period, net of tax of $9,075...............
       Less: reclassification adjustment for
          gains realized in net income, net of
          tax of $1,252...............................
       Net unrealized gain on securities
          available for sale, net of income tax
          expense of $6,358...........................                         9,536                                     9,536
       Translation adjustments........................          (8,655)       (8,655)                                   (8,655)
                                                                                                                     ---------
    Total comprehensive income........................                                                                  42,467
Cash dividends declared, $0.35 per share..............                                                                 (15,261)
Treasury stock acquired...............................                                   (1,462)        (58,362)       (58,362)
Impact of stock plans.................................                                      523          14,846         11,450
U.S. tax benefit from stock plan activity.............                                                                   8,800
                                                             ---------     ---------                 ----------      ---------
Balance at December 31, 1996..........................       $  (8,280)    $   1,256    (13,666)     $ (398,037)     $ 211,758
                                                             =========     =========    =======      ==========      =========
Comprehensive loss:
    Net loss..........................................                                                                 (38,784)
       Unrealized holding gains arising during
          period, net of tax of $10,107...............
       Less: reclassification adjustment for
          gains realized in net income, net of
          tax of $1,749...............................
       Net unrealized gain on securities
          available for sale, net of income tax
          expense of $5,719...........................                         8,579                                     8,579
       Translation adjustments........................         (31,555)      (31,555)                                  (31,555)
                                                                                                                     ---------
    Total comprehensive loss..........................                                                                 (61,760)
Cash dividends declared, $0.39 per share..............                                                                 (17,028)
Impact of stock plans.................................                                      375          10,547          8,050
U.S. tax benefit from stock plan activity.............                                                                   2,127
                                                             ---------     ---------    -------      ----------      ---------
Balance at December 31, 1997..........................       $ (39,835)    $ (21,720)   (13,291)     $ (387,490)     $ 143,147
                                                             =========     =========    =======      ==========      =========
Comprehensive loss:
    Net income........................................                                                                   9,864
       Unrealized holding gains arising during
          period, net of tax of $6,564................
       Less: reclassification adjustment for
          gains realized in net income, net of
          tax of $7,475...............................
       Net unrealized loss on securities
          available for sale, net of income tax
          benefit of $(12,182)........................                       (18,273)                                  (18,273)
       Translation adjustments........................          12,325        12,325                                    12,325
                                                                                                                     ---------
    Total comprehensive loss..........................                                                                    3,916
Cash dividends declared, $0.43 per share..............                                                                 (18,905)
Impact of stock plans.................................                                      370          10,552          7,897
U.S. tax benefit from stock plan activity.............                                                                     853
                                                             ---------     ---------                 ----------      ---------
Balance at December 31, 1998..........................       $ (27,510)    $ (27,668)   (12,921)     $ (376,938)     $ 136,908
                                                             =========     =========    =======      ==========      =========
</TABLE>

         The accompanying notes are an integral part of the consolidated
                              financial statements.


                                       F-4
<PAGE>

                              MILLIPORE CORPORATION

                      CONSOLIDATED STATEMENTS OF CASH FLOWS

<TABLE>
<CAPTION>
                                                                                        Year ended December 31
                                                                                ---------------------------------------
                                                                                  1998           1997           1996
                                                                                ---------      ---------      ---------
                                                                                            (In thousands)
<S>                                                                             <C>            <C>            <C>
Cash Flows from Operating Activities:
Net income (loss) .........................................................     $   9,864      $ (38,784)     $  41,586
Adjustments to reconcile net income (loss) to net cash provided by
   operating activities:
     Restructuring charges ................................................        42,816             --             --
     Net loss on disposal of discontinued operations ......................            --             --          2,036
     Purchased research and development expense ...........................            --        114,091         68,311
     Write-off of acquired inventory step-up ..............................            --          5,000             --
     Gain on sale of securities ...........................................       (35,594)        (8,330)        (5,329)
     Depreciation and amortization ........................................        44,409         40,661         30,587
     Deferred income tax (benefit) provision ..............................       (12,762)         5,835         (8,212)
     Change in operating assets and liabilities:
          Decrease (increase) in accounts receivable ......................        32,327        (24,468)           247
          Decrease (increase) in inventories ..............................        21,053        (13,361)       (11,612)
          Decrease (increase) in other current assets .....................         3,558         (6,937)         1,661
          (Increase) in other assets ......................................          (267)        (8,648)        (8,747)
          (Decrease) in accounts payable and accrued expenses .............       (37,972)       (21,629)       (11,087)
          (Decrease) increase in accrued retirement plan contributions ....          (342)         2,557            (36)
          (Decrease) increase in accrued income taxes .....................       (15,545)         1,050          1,723
          Other ...........................................................           (10)         6,942          1,058
                                                                                ---------      ---------      ---------
Net cash provided by operating activities .................................        51,535         53,979        102,186

Cash Flows from Investing Activities:
Additions to property, plant and equipment ................................       (59,787)       (41,063)       (30,427)
Additions to intangible assets ............................................        (3,953)        (6,135)        (1,760)
Acquisitions, net of cash acquired ........................................            --       (159,158)      (122,576)
Other investments .........................................................            --         (1,646)        (4,010)
Net cash used by discontinued businesses ..................................        (2,255)        (3,516)        (7,939)
Proceeds from sale of securities ..........................................        35,594          8,330          5,745
                                                                                ---------      ---------      ---------
Net cash used in investing activities .....................................       (30,401)      (203,188)      (160,967)

Cash Flows from Financing Activities:
Treasury stock acquired ...................................................            --             --        (58,362)
Issuance of treasury stock under stock plans ..............................         6,274          6,956         11,450
Net change in short-term debt .............................................         5,821         65,036         20,045
Proceeds from issuance of long-term debt ..................................            --        197,950        124,397
Payments on long-term debt ................................................            --       (126,018)            --
Dividends paid ............................................................       (18,427)       (16,558)       (14,899)
                                                                                ---------      ---------      ---------
Net cash (used by) provided by financing activities .......................        (6,332)       127,366         82,631
Effect of foreign exchange rates on cash and cash equivalents .............           951         (4,758)          (738)
                                                                                ---------      ---------      ---------
Net increase (decrease) in cash and cash equivalents ......................        15,753        (26,601)        23,112
Cash and cash equivalents on January 1 ....................................        20,269         46,870         23,758
                                                                                ---------      ---------      ---------
Cash and cash equivalents on December 31 ..................................     $  36,022      $  20,269      $  46,870
                                                                                =========      =========      =========
</TABLE>

         The accompanying notes are an integral part of the consolidated
                              financial statements.


                                      F-5
<PAGE>

                              MILLIPORE CORPORATION

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                 (In thousands except share and per share data)

NOTE A-- Summary of Significant Accounting Policies

   Nature of Operations

     Millipore Corporation and its subsidiaries are engaged primarily in the
development, manufacture and sale of products which are based on separations
technology and which are used for the analysis, identification, monitoring and
purification of liquids and gasses. To a lesser extent, Millipore also generates
revenues from the manufacture and sale of products based on electro-mechanical
and pressure differential technologies to control critical aspects of the
manufacturing process for integrated circuits (semiconductors). Millipore is an
integrated multinational manufacturer and markets its products throughout the
world. The principal customer groups to which the Company's products are sold
include pharmaceutical companies, biotechnology companies, food and beverage
companies, university and government laboratories and research institutes as
well as semiconductor fabrication companies and OEM and material suppliers to
the semiconductor industry.

   Principles of Consolidation

     The consolidated financial statements include the accounts of the Company
and its subsidiaries, all of which are wholly-owned. Intercompany balances and
transactions have been eliminated.

   Translation of Foreign Currencies

     For all of the Company's foreign subsidiaries, assets and liabilities are
translated at exchange rates prevailing on the balance sheet date, revenues and
expenses are translated at average exchange rates prevailing during the period,
and elements of shareholders' equity are translated at historical rates. Any
resulting translation gains and losses are reported separately in shareholders'
equity. The aggregate transaction gains and losses included in the consolidated
statements of income are not material.

   Cash Equivalents

     Cash equivalents consisting primarily of time deposits, are classified as
available for sale and are carried at cost plus accrued interest, which
approximates market value. All cash equivalents have maturities of three months
or less.

   Inventories

     The Company values its inventories at actual cost on a first-in, first-out
(FIFO) basis.

   Property, Plant and Equipment

     Property, plant and equipment is recorded at cost. Expenditures for
maintenance and repairs are charged to expense while the costs of significant
improvements which extend the life of the underlying asset are capitalized.
Assets are primarily depreciated using straight-line methods. Upon retirement or
sale, the cost of assets disposed and the related accumulated depreciation are
eliminated and related gains or losses reflected in income.

     The estimated useful lives of the Company's depreciable assets are as
follows:

         Leasehold Improvements..........................Life of the Lease
         Buildings and Improvements......................10-40 Years
         Production and Other Equipment..................3-15 Years


                                      F-6
<PAGE>

                              MILLIPORE CORPORATION

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued)
                 (In thousands except share and per share data)

   Intangible Assets

     Intangible assets consist primarily of patents, acquired technology, trade
names, licenses and goodwill. The assets are recorded at cost and amortized on a
straight-line basis over periods ranging from 3 to 20 years. On a periodic basis
the value of the intangible assets is reviewed to determine if impairment has
taken place due to changed business conditions or technological obsolescence.
The amount of such impairment, if any, is computed by comparing the present
value of the future cash flows associated with the underlying intangible asset
to the then current net book value. If an impairment exists, the net book value
of the intangible asset is reduced accordingly.

   Marketable Securities

     The Company's investments in equity securities are categorized as
available-for-sale as defined by Statement of Financial Accounting Standards
(SFAS) No. 115, "Accounting for Certain Investments in Debt and Equity
Securities". Equity securities are included in both Other current assets and
Other assets in the accompanying consolidated balance sheets and are recorded at
fair value. The cost of each investment is determined primarily on a specific
identification method. Unrealized holding gains and losses are reflected, net of
income tax, as a separate component of accumulated other comprehensive loss.
Marketable securities had a fair value of $2,078 as of December 31, 1998 which
approximated cost.

   Financial Instruments

     The Company has entered into U.S. dollar to Japanese Yen debt swap
agreements and foreign exchange option contracts to manage interest and foreign
currency exchange rate exposures. The Company does not hold or issue derivative
financial instruments for trading purposes.

     The cash differential paid or received under the interest rate component of
the debt swap agreements are accrued and recognized as an adjustment to interest
expense. Net amounts receivable or payable to counterparties are included in
Other Current Assets or Accrued Expenses. Cash flows related to the interest
rate swap are classified as part of Operating Activities in the Consolidated
Statement of Cash Flows consistent with the interest payments on the underlying
debt. The U.S. dollar to Japanese yen principal swap is designated and is
effective as a hedge of the Company's net investment exposure. Unrealized gains
and losses are recorded as an adjustment of the underlying Long-Term Debt and
the cumulative Translation Adjustments in Shareholders' Equity. The ultimate
gain or loss realized upon maturity of the agreements is recognized as a
translation adjustment in Shareholders' Equity.

     The Company has entered into option contracts to hedge against significant
fluctuations in the value of the U.S. dollar versus the Japanese yen. Gains
realized on the exercise of the option contracts are recorded as an offset to
the loss on the underlying transactions. Contract premiums are recorded in Other
Current Asset and amortized over the term of the contract. The realized gains
and the amortization of the contract premiums are recorded in cost of sales.
Cash flows related to the exercise of the option contracts are included in
Operating Activities in the Consolidated Statement of Cash Flows.

   Income Taxes

     Deferred tax assets reflect the net tax effects of temporary differences
between the carrying amounts of assets and liabilities for financial statement
purposes and the amounts used for income tax purposes. With respect to the
unremitted earnings of the Company's foreign and Puerto Rican subsidiaries,
deferred taxes are provided only on amounts expected to be repatriated.


                                      F-7
<PAGE>

                              MILLIPORE CORPORATION

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued)
                 (In thousands except share and per share data)

   Treasury Stock

     Treasury stock is recorded at its cost on the date acquired and is relieved
at its weighted average cost upon reissuance. The excess of cost over the
proceeds of reissued treasury stock is charged to retained earnings.

   Net Income (Loss) Per Share

     Basic net income (loss) per share is calculated by dividing the net income
(loss) for the period by the weighted average number of shares outstanding for
the period. Diluted net income (loss) per share is calculated by considering the
impact of common stock equivalents (outstanding stock options) as if they were
converted into common stock at the beginning of the period. Common stock
equivalents are not included in periods of net losses as they are anti-dilutive.

   Revenue Recognition

     Sales of products and services are recorded principally at the time of
product shipment or performance of services. Certain contract revenues
associated with the Company's process equipment business are recorded on the
percentage of completion method. Revenue is recognized based on the ratio of
hours expended compared to the total estimated hours to complete the
construction of the process equipment. The cumulative impact of any revisions in
estimates of the percent complete is reflected in the period in which the
changes become known.

   Concentration of Credit Risk

     Financial instruments which potentially subject the Company to
concentrations of credit risk consist principally of temporary cash and cash
equivalents, accounts receivable and derivative financial instruments.

     The Company places its temporary cash and cash equivalents with high credit
qualified financial institutions, and, by policy, limits the amount of credit
exposure to any one financial institution.

     Concentrations of credit risk with respect to accounts receivable is
limited due to the large number of customers comprising the Company's customer
base, and their dispersion across different industries and geographies. The
Company performs ongoing credit evaluations of its customers and generally does
not require collateral.

     The Company is exposed to credit-related losses in the event of
nonperformance by counterparties to hedging instruments. The counterparties to
these contracts are major financial institutions. The Company continually
monitors its positions and the credit ratings of its counterparties and limits
the amount of contracts it enters into with any one party.

   Use of Estimates in the Preparation of Financial Statements

     The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.

   Reclassifications

     Certain reclassifications have been made to prior years' financial
statements to conform with the 1998 presentation.


                                      F-8
<PAGE>

                              MILLIPORE CORPORATION

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued)
                 (In thousands except share and per share data)

   New Accounting Pronouncements

     In 1998, the Company adopted SFAS No. 130, "Reporting Comprehensive
Income". This statement establishes rules for the reporting of comprehensive
income and its components. Comprehensive income consists of net income or loss,
unrealized gain or loss on securities available for sale and foreign currency
translation adjustments and is presented in the Consolidated Statements of
Shareholders' Equity. The adoption of SFAS 130 had no impact on total
shareholders' equity.

     In 1998, the Company adopted SFAS No. 131, "Disclosures about Segments of
an Enterprise and Related Information" which specifies revised guidelines for
determining an entity's operating segments and the type and level of financial
information to be disclosed. SFAS 131 establishes a new framework on which to
base segment reporting. Note Q reflects the Company's segment disclosure in
accordance with SFAS 131.

     In 1998, the Company adopted SFAS No. 132, "Employers' Disclosures about
Pensions and Other Postretirement Benefits" which establishes new increased
requirements for disclosure of a Company's pensions and other postretirement
benefit obligations. The Company adopted and included the increased disclosure
requirements of SFAS No. 132 in Note P.

     In 1998, the Company adopted Statement of Position 98-1, "Accounting for
the Cost of Computer Software Developed or Obtained for Internal Use" ("SOP
98-1"), which provides guidance on applying generally accepted accounting
principles in addressing whether and under what conditions the costs of
internal-use software should be capitalized. The adoption of SOP 98-1 was not
material to the results of operations for 1998.

     In June 1998, the FASB issued SFAS No. 133, "Accounting for Derivative
Instruments and Hedging Activities" effective January 1, 2000 for the Company.
SFAS 133 establishes accounting and reporting standards requiring that every
derivative instrument, including certain derivative instruments embedded in
other contracts, be recorded in the balance sheet as either an asset or
liability measured at its fair value. The statement also requires that changes
in the derivative's fair value be recognized in earnings unless specific hedge
accounting criteria are met. The Company is currently assessing the impact of
this new statement on its consolidated financial position, liquidity and results
of operations.

NOTE B--Subsequent Event

         On February 5, 1999, the Company received a letter from the staff of
the Securities and Exchange Commission in which the staff inquired, among other
things, about certain charges taken in 1997 and 1996 for purchased research and
development expenses recorded in connection with the Amicon and Tylan
acquisitions as discussed in Note E. The Company has exchanged correspondence
with the staff of the Commission concerning these charges as well as other
accounting matters including the charge for the loss on the sale of discontinued
operations. As a result of this correspondence, the Company has revised certain
disclosures and has restated its financial statements to recognize the charges
relating to discontinued operations in prior periods as follows and as described
in Note D below. No further comments of the Commission staff are pending and the
Company believes that all questions raised by the staff have been resolved.


                                      F-9
<PAGE>

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued)
                 (In thousands except share and per share data)

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------
Consolidated Statements of Income
--------------------------------------------------------------------------------------------------------------------
                                  December 31, 1998             December 31, 1996             December 31, 1994
--------------------------------------------------------------------------------------------------------------------

                               Previously         As         Previously         As         Previously    As Restated
                                Reported       Restated       Reported       Restated       Reported
--------------------------------------------------------------------------------------------------------------------
<S>                            <C>            <C>            <C>            <C>            <C>            <C>
Net loss on disposal of
discontinued operations        $    5,847     $       --     $       --     $    2,036     $    3,400     $    7,211
--------------------------------------------------------------------------------------------------------------------
Net income                          4,017          9,864         43,622         41,586         56,209         52,398
--------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------
Net income per share:
--------------------------------------------------------------------------------------------------------------------
Basic                          $     0.09     $     0.22     $     1.00     $     0.95     $     1.03     $     0.96
--------------------------------------------------------------------------------------------------------------------
Diluted                        $     0.09     $     0.22     $     0.98     $     0.94     $     1.01     $     0.94
--------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------
</TABLE>

----------------------------------------------------------------
Consolidated Balance Sheets
----------------------------------------------------------------
                                 Year ended December 31, 1997
----------------------------------------------------------------
                                Previously
                                 Reported        As Restated
----------------------------------------------------------------

----------------------------------------------------------------
Total assets                     $772,806        $772,301
----------------------------------------------------------------
Accrued expenses                 74,856          79,660
----------------------------------------------------------------
Other liabilities                25,533          26,071
----------------------------------------------------------------
Retained earnings                490,289         484,442
----------------------------------------------------------------
Shareholders' equity             148,994         143,147
----------------------------------------------------------------

NOTE C--Restructuring Charges and Provision for Excess Inventory

     In the second quarter of 1998, the Company announced a restructuring
program which was undertaken to improve the competitive position of the Company
by streamlining worldwide operations and reducing the overall cost structure.
The program includes the consolidation of certain manufacturing operations,
realignment of various international subsidiary organizations to focus on
operating business units, discontinuance of non-strategic product lines and the
rationalization of its product offerings to improve product line focus. This
rationalization process included a management review of product offerings to
identify and eliminate specific products with limited profitability as well as
products which were inconsistent with current strategic marketing plans, such as
non-standard products. In the third quarter of 1998, the Company recorded an
expense associated with these activities of $42,816 ($29,115 after tax)
including a restructuring charge of $33,641 and a $6,244 charge against cost of
sales for inventory provisions and $2,931 for fixed asset write-offs. The
non-strategic product lines consisted of high pressure liquid chromatography
equipment, semiconductor fab monitoring and control software and various
filtration devices. The $33,641 restructuring charge included $18,290 of
employee severance costs, $3,847 of lease cancellation costs, $2,049 of
marketing, research and supply contract termination costs, $7,667 for the
write-off of intangible assets including those associated with the discontinued
product lines consisting of both unpatented completed technology and tradenames
as well as with termination of certain rights under two technology development
collaborations and $1,788 for the write-off of fixed assets. As of September
30,1998, there were no assets that remained in use which had been written off.
During the fourth quarter of 1998 assets which had been held for disposal
relating to one of the non-strategic product lines were divested. There are no
remaining assets being held for disposal.

     The restructuring initiatives combined with the consolidation of the
Company's microelectronics plants will result in the elimination of 620
positions worldwide (400 positions in manufacturing operations, 160 in selling,
general and administrative positions and 60 in research and development).
Notification to employees was completed in 1998, although a small number of the
employees affected will continue working in their existing positions through
1999 with their related salary costs charged to operations as incurred. As of
December 31, 1998, 490 employees had left the Company pursuant to this
initiative. Under the terms of the severance agreements, the Company expects to
pay severance and associated benefits through the early part of 2000.


                                      F-10
<PAGE>

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued)
                 (In thousands except share and per share data)

     Following is a summary of the restructuring charges and related reserve
balances at December 31, 1998:

<TABLE>
<CAPTION>
                                                  1998         1998           1998           Balance at
                                                  ----         ----           ----           ----------
                                                Restruc-       Other          Cash          December 31,
                                                --------       -----          ----          ------------
                                                 turing      Activity     Disbursements         1998
                                                 ------      --------     -------------         ----
                                                 Charge
                                                 ------

     <S>                                        <C>           <C>           <C>               <C>
     Employee severance costs ................  $18,290       $    --       $ 5,447           $12,843
     Lease cancellation costs ................    3,847            --           169             3,678
     Contract terminations and other costs ...    2,049            86            --             1,963
     Write-off of intangible assets ..........    7,667         7,667            --                --
     Write-off of fixed assets ...............    1,788         1,788            --                --
                                                -------       -------       -------           -------
          Total ..............................  $33,641       $ 9,541       $ 5,616           $18,484
                                                =======       =======       =======           =======
</TABLE>

     The Company also recorded an incremental provision for excess and obsolete
inventory of $6,000 during the third quarter of 1998 in response to adverse
changes in demand attributable to recessionary conditions in Asia and the
slowdown in the semiconductor industry.

NOTE D--Discontinued Operations

     In August 1994 the Company sold it's Waters Chromatography Division and, in
a separate transaction, sold certain assets of its non-membrane bioscience
business. At that time the Company recorded a $69,000 reserve in connection with
these transactions representing the estimate of costs to abandon facilities,
terminate employees, transfer employee benefit obligations and to provide
ongoing administrative and contract support services.

       During the third quarter of 1998 the Company completed a comprehensive
review of its accounting for these divestitures; as a result of this review a
$7,542 additional charge ($5,847 net of income taxes) on the disposal of
discontinued operations was recorded. This charge reflects the corrected
accounting of the remaining assets and liabilities associated with these
divested operations. This charge is comprised of numerous different items, which
may be grouped into three general categories: $2,200 of manufacturing assets
previously used by the combined operations of Millipore and the Waters Division
in Puerto Rico prior to the divestiture of the Waters Division; these assets
were not sold to Waters as a part of the divestiture and ultimately had no
further use to Millipore after the divestiture; $4,842 of costs associated with
the divestiture of the non-membrane bioscience business; and $500 of retirement
benefits for Japanese employees of the Waters Chromatography Division. As a
result of correspondence with the staff of the Securities and Exchange
Commission, the Company restated its financial statements to recognize the
$5,847 charge to discontinued operations in prior periods as follows: $2,036 in
1996 and $3,811 in 1994.

     In partial consideration for the sale of its non-membrane bioscience
instrument division in 1994, the Company received four thousand shares of
preferred stock of PerSeptive Biosystems, Inc ("PerSeptive"). The preferred
stock was redeemable in four equal annual installments of $10,000, commencing in
August 1995, in the equivalent value as of each redemption date in common stock,
$0.01 par value of PerSeptive. Effective January 22, 1998, PerSeptive completed
a merger with The Perkin-Elmer Corporation ("Perkin-Elmer") pursuant to which
PerSeptive became a wholly-owned subsidiary of Perkin-Elmer. Pursuant to this
merger all of the Company's remaining holdings in PerSeptive, which consisted of
2,213,357 shares of common stock and the one thousand shares of preferred stock
were converted into 586,541 shares of Perkin-Elmer common stock. The Company
sold all 586,541 shares of Perkin-Elmer common stock in the first quarter of
1998 and recorded a gain on the sale of these securities of $32,500.

     At December 31, 1997, the 2,213,375 shares of PerSeptive common stock were
considered available for sale in accordance with SFAS No. 115. These shares of
common stock were recorded at a fair value of $16,766, net of taxes, in Other
Current Assets. The $27,944 of gross unrealized gain related to these shares was
recorded in Shareholder's Equity, net of taxes of $11,178.


                                      F-11
<PAGE>

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued)
                 (In thousands except share and per share data)

NOTE E--Acquisitions

     On December 31, 1996, the Company acquired the net assets of the Amicon
Separation Science Business of W.R. Grace & Co. (Amicon) for approximately
$129,265 in cash, including transaction costs. Amicon manufactures protein
purification tools for the research laboratory and for biotechnology
manufacturing. The acquisition was accounted for as a purchase, and accordingly,
the purchase price has been allocated to the identifiable tangible and
intangible assets based on estimated fair market values of those assets. The
Company accrued approximately $27,000 for additional costs associated with the
acquisition. These costs included severance payable to Amicon employees,
abandonment of duplicate Amicon manufacturing and sales facilities, and
termination of certain Amicon contractual obligations. The facilities abandoned
were leased sales offices in Europe and Asia as well as an owned manufacturing
facility in England. The terminated contractual obligations included a supply
agreement. The purchase included, at estimated fair value, current assets of
$30,328, property, plant and equipment of $15,474, other assets of $596 and the
assumption of liabilities of $9,197. Identifiable intangible assets were valued
at $50,753 and included $25,046 of tradenames and $6,857 of patented and $18,850
of unpatented completed technology. These intangible assets will be amortized
over their estimated useful lives ranging from five to twenty years. In-process
research and development valued at $68,311 was charged to earnings in the fourth
quarter of 1996. This charge was taken because neither the projects nor any
potential alternative future uses for the technology on which the projects were
based had achieved technological feasibility. The purchase was financed through
the Company's Revolving Credit Agreement as discussed in Notes I and J. As of
December 31, 1998 the integration activities relating to the Amicon business
were substantially completed except for the integration of the manufacturing
operations from England to the U.S. which was delayed pending the construction
of a facility to receive this manufacturing operation, and the resolution of
certain vendor agreement termination disputes both of which the Company expects
to be completed in 2000. The remaining liability as of December 31, 1998
consists of $1,200 of employee severance costs, $1,000 of costs associated with
the termination of an Amicon pre-acquisition supply agreement, $485 for the
write-off of assets and $315 of other integration costs.

     On January 22, 1997, the Company completed a cash tender offer for all of
the outstanding common shares of Tylan General, Inc. (Tylan). Tylan, which
became a wholly-owned subsidiary on January 27, 1997, supplies precision mass
flow controllers, and pressure and vacuum measurement and control equipment to
the semiconductor industry. The aggregate purchase price, including the
assumption of Tylan debt and transaction costs, was $163,371. The acquisition
was accounted for as a purchase, and accordingly, the purchase price has been
allocated to the identifiable tangible and intangible assets based on estimated
fair market values of those assets. The Company accrued approximately $32,000
for additional integration costs associated with the acquisition. These costs
included severance costs, abandonment and consolidation of facilities, and
termination of certain Tylan contractual obligations. The facilities abandonment
and consolidation costs include the closure of all of the acquired Tylan
manufacturing facilities in the U.S. and the transfer of those operations to a
new facility in Allen, Texas. All of the vacated facilities were under long-term
operating lease agreements. The contractual obligations included payouts with
respect to two former officers of Tylan, the termination of supply agreements
and the termination of a third party research and development agreement. The
final adjusted purchase price included at estimated fair value, current assets
of $42,544, property and equipment of $15,559, other assets of $16,477 and
liabilities of $22,042. Intangible assets were valued at $28,742 and included
$2,717 of tradenames, $5,698 of patented and $7,995 of unpatented completed
technology and $12,332 of goodwill. These intangible assets are being amortized
over their estimated useful lives ranging from five to twenty years. In-process
research and development valued at $114,091 was charged to earnings in the first
quarter of 1997. This charge was taken because neither the projects nor any
potential alternative future uses for the technology on which the projects were
based had achieved technological feasibility. The purchase was financed through
the Company's Revolving Credit Agreement discussed in Notes I and J. As of
December 31, 1998, the redundant Tylan facilities were closed and their
operations consolidated into the Allen, Texas facility. The integration
activities for this acquisition are complete with final cash payments for
contractual agreements continuing through 2000. The remaining


                                      F-12
<PAGE>

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued)
                 (In thousands except share and per share data)

liability as of December 31, 1998 consists of $2,300 of employee severance
costs, $890 of contract termination costs and $914 of facility related costs.

     The integration of the Amicon business was accomplished as originally
planned but the employee severance and facility related costs for this
integration were $15,000 less than accrued. As the Company undertook
implementation of the integration plan during 1997 it was determined that the
plan could be completed with significantly less cost. Among the factors which
contributed to these savings were the cultural compatibility of the two
organizations which permitted the assignment of certain Amicon personnel to
vacancies within the Millipore organization as an alternative to termination and
the proximity of the Amicon facilities to those of the Company which facilitated
the use of those facilities for other Millipore operations.

     The integration plan for the Tylan business was completed by December 31,
1997. During this year the scope of the U.S. manufacturing consolidation was
extended from a consolidation of four existing plants into two existing
facilities to the consolidation of all existing plants into a new facility. The
finalization of the plan to integrate the Tylan business resulted in additional
costs totaling $15,000 primarily for additional employee costs relating to the
closure of all Tylan manufacturing facilities. These amounts included additional
employee retention costs necessary to maintain the Tylan manufacturing
facilities until the Allen, Texas site was operational and additional employee
relocation and severance costs.

     At December 31,1997, no purchase accounting adjustments for either
acquisition were recorded as the incremental effect to the Company's financial
position and results of operations in 1997 related to the acquisitions of Amicon
and Tylan was immaterial. The final integration plan with respect to the Amicon
and Tylan acquisitions included the termination of an aggregate of 460
employees. As of December 31, 1998, the Company had terminated 450 employees in
connection with these acquisitions (of which 300 where involved with
manufacturing operations and 150 with general and administrative functions).
There have been no significant changes to the combined integration plans or to
the aggregate costs of integrating these acquisitions.

     Following is a summary of the acquisition reserve for 1997 and 1998. The
beginning reserve balance represents the acquisition reserve accruals for both
Tylan and Amicon:

<TABLE>
<CAPTION>
                            Beginning
                            ---------
                             Reserve
                             -------
                             Balance          Cash Payments         Asset Write-offs
                             -------          -------------         ----------------
                                                                                               Reserve
                                                                                             Balance at
                                                                                             ----------
                                            Tylan       Amicon      Tylan      Amicon     December 31, 1997
                                            -----       ------      -----      ------     -----------------
<S>                            <C>         <C>         <C>         <C>         <C>                  <C>
Employee costs ..............  $31,903     $10,808     $ 3,993     $    --     $    --              $17,102
Facilities-related costs ....    6,963         600         842          --          --                5,521
Contract termination costs ..    5,431         199       1,085          --          --                4,147
Write-off of assets .........    6,594          --          --       1,591         999                4,004
Other integration expenses ..    8,109       4,225       1,590          --          --                2,294
                               -------     -------     -------     -------     -------              -------
      Total .                  $59,000     $15,832     $ 7,510     $ 1,591     $   999              $33,068
                               =======     =======     =======     =======     =======              =======
</TABLE>


                                      F-13
<PAGE>

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued)
                 (In thousands except share and per share data)

<TABLE>
<CAPTION>
                                 Reserve
                                 -------
                               Balance at                                                        Reserve
                               ----------                                                        -------
                              December 31,       Cash Payments          Asset Write-offs        Balance at
                              ------------       -------------          ----------------        ----------
                                  1997                                                         December 31,
                                  ----                                                         ------------
                                                                                                   1998
                                                                                                   ----

                                               Tylan       Amicon       Tylan      Amicon
                                               -----       ------       -----      ------
<S>                                <C>         <C>         <C>         <C>         <C>           <C>
Employee costs ..................  $17,102     $13,207     $   395     $    --     $    --       $ 3,500
Facilities-related costs ........    5,521       4,424         183          --          --           914
Contract termination costs ......    4,147       2,257          --          --          --         1,890
Write-off of assets .............    4,004          --          --       3,276         243           485
Other integration expenses ......    2,294       1,824         155          --          --           315
                                   -------     -------     -------     -------     -------       -------
      Total .                      $33,068     $21,712     $   733     $ 3,276     $   243       $ 7,104
                                   =======     =======     =======     =======     =======       =======
</TABLE>

     The acquisitions of Amicon and Tylan each included in-process research and
development for which technological feasibility had not been achieved resulting
in charges to earnings of $68,300 in the fourth quarter of 1996 and of $114,000
in the first quarter of 1997, respectively. The estimation of the fair value of
the purchased in-process research and development is primarily the
responsibility of management. In determining the valuation of in-process
research and development projects for both acquisitions, the discounted cash
flow approach was used. A range of discount rates from 25 percent to 35 percent
was applied depending upon the relative risk of the in-process technology and
the market risks for the related product. Revenue projections reflected the
estimated useful life of the technology and ranged from 5 to 12 years. Cash
flows were reduced in contemplation of on-going operating needs (including
working capital) to support the technology and by amounts associated with the
use of "core technology" in products under development. The assumptions made
regarding pricing, margins and expenses were consistent with the acquired
companys' historical trends.

     The following table reflects unaudited pro forma combined results for 1996
of the Company, Amicon and Tylan on the basis that both acquisitions had taken
place on January 1, 1996.

                                                                1996
                                                             ----------
           Revenues...................................       $  824,555
           Net Income.................................       $   24,139
           Net Income per common share--Basic..........      $     0.55
           Shares used in computation.................           43,602

     These pro forma results are not necessarily indicative of what the actual
consolidated results of operations might have been if the acquisitions had been
effective at the beginning of 1996. Pro forma results for 1997 resulting from
the acquisition of Tylan would not have been materially different from the
results reported.


                                      F-14
<PAGE>

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued)
                 (In thousands except share and per share data)

NOTE F--Basic and Diluted Earnings per Share

     For 1997, basic and diluted earnings per share are the same, as the Company
was in a loss position. The following table sets forth the computation of basic
and diluted earnings per share for 1998, 1997 and 1996:

<TABLE>
<CAPTION>
                                                                   1998         1997          1996
                                                                 --------     --------      --------
       <S>                                                         <C>        <C>            <C>
       Numerator:
            Net income (loss) .................................    $9,864     $(38,784)      $41,586
                                                                 ========     ========      ========
       Denominator:
            Basic weighted average shares outstanding .........    43,864       43,527        43,602
            Effect of dilutive securities-stock options .......       425           --           855
                                                                 --------     --------      --------
            Diluted weighted average shares outstanding .......    44,289       43,527        44,457
                                                                 ========     ========      ========
       Net income (loss) per share:
            Basic .............................................     $0.22       $(0.89)        $0.95
            Diluted ...........................................     $0.22       $(0.89)        $0.94
</TABLE>

NOTE G--Inventories

     Inventories at December 31, stated at the lower of first-in, first-out
(FIFO) cost or market, consisted of the following:

                                     1998       1997
                                  ---------  ---------
          Raw materials.......    $  35,433  $  42,518
          Work in process.....       18,620     16,545
          Finished goods......       53,188     68,129
                                  ---------  ---------
                                   $107,241  $ 127,192
                                  =========  =========

NOTE H--Property, Plant and Equipment

     Property, plant and equipment at December 31 consisted of the following:

                                                     1998       1997
                                                  ---------  ---------
          Land................................    $   9,248  $   8,750
          Leasehold improvements..............       30,154     18,846
          Buildings and improvements..........      132,783    118,923
          Production and other equipment......      229,115    223,720
          Construction in progress............       24,375     16,440
                                                  ---------  ---------
                                                    425,675    386,679
          Less: accumulated depreciation......      188,261    166,585
                                                  ---------  ---------
                                                  $ 237,414  $ 220,094
                                                  =========  =========

     Depreciation expense for the years ended 1998, 1997, and 1996 was $36,778,
$32,797 and $27,972, respectively.


                                      F-15
<PAGE>

                              MILLIPORE CORPORATION

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued)
                 (In thousands except share and per share data)

NOTE I--Notes Payable

     Short-term borrowings and related lines of credit at December 31 are
summarized as follows:

<TABLE>
<CAPTION>
                                                                                 1998        1997
                                                                              -----------  --------
          <S>                                                                 <C>          <C>
          Notes payable...................................................    $   171,340  $165,576
                                                                              -----------  --------
          Unused lines of credit..........................................    $    80,000  $204,424
          Average amount outstanding at month-end during the year.........    $   184,239  $226,379
          Maximum amount outstanding at month-end during the year.........    $   214,113  $392,817
          Weighted average interest rate during the year..................            6.1%      6.0%
          Weighted average interest rate at year-end......................            6.3%      6.1%
</TABLE>

     On January 22, 1997, the Company entered into an unsecured Revolving Credit
Agreement with a group of banks. The agreement allowed for borrowings of up to
$450,000 and expires on January 22, 2002. In July, 1997, the Company reduced the
maximum funds available under the agreement from $450,000 to $350,000 and in
May, 1998, the amount was reduced from $350,000 to $250,000. Individual
borrowings under the Revolving Credit Agreement are made on terms not to exceed
six months. At December 31, 1998 the Company had $80,000, available under this
facility. Interest is payable on outstanding borrowings at a floating rate
defined in the agreement as LIBOR plus a margin. The agreement also calls for a
facility fee. The exact amount of the margin and the facility fee is dependent
on the Company's debt rating. The agreement calls for the Company to maintain
certain financial covenants in the areas of operating cash flow and interest
coverage. At December 31, 1998 the Company also had $1,340 of other short-term
borrowings.

     The Company's financial results for the quarter ended September 30, 1998
made it necessary for the Company to renegotiate certain financial covenants
relating to operating cash flow and interest coverage under the agreement.
Pursuant to this renegotiation, the lenders involved waived defaults under those
covenants and accepted less restrictive operating cash flow and interest
coverage covenants for 1999 and a portion of 2000. The Company agreed to an
additional minimum earnings covenant, the payment of amendment fees totaling
$647, and to increases in both the interest rate margin and the facility rate
thereunder. The Company agreed to an increase in the interest rate from a margin
range over LIBOR of 0.18 to 0.65 percent to a range of 0.23 to 1.125 percent.
The Company also agreed to an increase in the facility rate under the agreement
from a rate ranging from 0.10 to 0.25 percent to a rate ranging from 0.125 to
0.375 percent.

      In addition, at December 31, 1997, the Company had access to a $20,000
short-term unused line of credit which was cancelled during 1998.

NOTE J--Long-term Debt

     Long-term debt at December 31 consisted of the following:

<TABLE>
<CAPTION>
                                                                             1998        1997
                                                                           --------    --------
          <S>                                                              <C>         <C>
          7.23% unsecured notes due in 2002...........................     $100,000    $100,000
          7.60% unsecured notes due in 2007...........................      100,000     100,000
          7.23% notes payable due in 2004.............................      100,000     100,000
          Unrealized gain on revaluation of yen-denominated debt......         (890)    (13,156)
                                                                           --------    --------
          Long-term debt..............................................     $299,110    $286,844
                                                                           ========    ========
</TABLE>


                                      F-16
<PAGE>

                              MILLIPORE CORPORATION

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued)
                 (In thousands except share and per share data)

     In March, 1997, the Company sold $100,000 of 7.23 percent unsecured notes
due in 2002 and $100,000 of 7.60 percent unsecured notes due in 2007, pursuant
to a public offering. Net proceeds from the offering of $197,950 were used to
repay borrowings outstanding under the Company's revolving credit agreement.
Interest on the new notes is payable semi-annually in April and October. At
December 31, 1998, these notes had a fair market value of $94,020 and $86,770,
respectively.

     The Company's financial results for the fiscal quarter September 30, 1998
made it necessary for the Company to renegotiate certain financial covenants
relating to operating cash flow and interest coverage under the $100,000 note
due in 2004. Pursuant to this renegotiation, the lender involved waived defaults
under those covenants and accepted less restrictive operating cash flow and
interest coverage covenants for 1999 and a portion of 2000. The Company agreed
to an increase in the interest rate on the $100,000 note due in 2004 from 6.88
percent to 7.23 percent as of November 2, 1998. The interest on these notes is
payable semi-annually in March and September. As these notes are not publicly
traded, a determination of their fair value is not readily determinable.
However, the Company believes that the carrying values approximate fair value.

     In January, 1994, the Company exchanged $80,000 of dollar debt service
obligations for a yen denominated obligation of 8,760,000 yen, which bears
interest at a rate of 4.49 percent. This swap matures in 2004. In December 1997,
the Company entered into a currency swap maturing in 2003. Under the terms of
this swap, the Company exchanged $30,000 of dollar debt service obligations for
a yen-denominated obligation of 3,840,000 yen, which bears interest at a rate of
1.39 percent. The Company's foreign currency obligations had U.S. dollar
effective weighted average interest rates of 4.60 and 4.53 percent in 1998 and
1997, respectively. The effect of foreign currency exchange rate fluctuations
resulting from the yen swap agreements open at December 31, 1998 are included in
translation adjustments.

     The Company capitalized interest costs associated with the construction of
certain capital assets of $1,282 in 1998, $753 in 1997 and $785 in 1996.
Interest paid on short-term and long-term debt during 1998, 1997, and 1996
amounted to $30,690, $25,579 and $12,171 respectively.

NOTE K--Foreign Exchange

     A significant volume of the Company's business is transacted in currencies
other than the U.S. dollar. This exposes the Company to risks associated with
currency rate fluctuations which impact the Company's sales and net income. The
Company has entered into foreign currency option contracts to sell yen, on a
continuing basis in amounts and timing consistent with the underlying currency
exposure so that gains on these transactions partially offset the realized
foreign exchange losses on the underlying exposure. The Company realized gains,
net of premiums, of $2,232 in 1998, $4,375 in 1997 and $2,687 in 1996 relating
to these contracts. At December 31, 1998, the Company has only option contracts
to sell yen aggregating $47,288. In the event of a significant strengthening of
the U.S. dollar against the yen, the exercise of these options will partially
mitigate losses which would be incurred by the Company on the underlying
currency exposure. The unamortized premiums associated with these option
contracts was $1,389 as of December 31, 1998.


                                      F-17
<PAGE>

                              MILLIPORE CORPORATION

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued)
                 (In thousands except share and per share data)

NOTE L--Income Taxes

     Income taxes have been provided in accordance with the provisions of SFAS
No. 109. The Company's provisions for income taxes are summarized as follows:

<TABLE>
<CAPTION>
                                                                                  1998          1997         1996
                                                                                --------      --------     --------
     Domestic and foreign income before income taxes:
     <S>                                                                        <C>           <C>          <C>
           Domestic ..................................................          $(27,116)     $(69,479)    $ (2,432)
           Foreign ...................................................            35,660        51,369       56,828
                                                                                --------      --------     --------
                                                                                   8,544       (18,110)      54,396

     Less: Income (loss) on disposal of discontinued operations ......                --            --       (2,627)
                                                                                --------      --------     --------
           Income (loss) from continuing operations before income
              taxes ..................................................          $  8,544      $(18,110)    $ 57,023
                                                                                ========      ========     ========
     Domestic and foreign provisions for income taxes:
           Domestic ..................................................          $ (4,801)     $  6,873     $ (2,953)
           Foreign ...................................................             3,295        13,011       15,427
           State .....................................................               186           790          336
                                                                                --------      --------     --------
                                                                                  (1,320)       20,674       12,810

           Less: portion applied to discontinued operations ..........                --            --         (591)
                                                                                --------      --------     --------
                                                                                $ (1,320)     $ 20,674     $ 13,401
                                                                                ========      ========     ========
     Current and deferred provisions for income taxes:
           Current ...................................................          $  9,747      $ 14,839     $ 21,613
           Deferred ..................................................           (11,067)        5,835       (8,803)
                                                                                --------      --------     --------
                                                                                $ (1,320)     $ 20,674     $ 12,810
                                                                                --------      --------     --------
</TABLE>

      A summary of the differences between the Company's consolidated effective
tax rate and the United States statutory federal income tax rate is as follows:

<TABLE>
<CAPTION>
                                                                                  1998          1997         1996
                                                                                --------      --------     --------
     <S>                                                                           <C>           <C>          <C>
     U.S. statutory income tax rate ..................................              35.0%         35.0%        35.0%
     Puerto Rico tax rate benefits ...................................             (10.8)         (4.0)        (6.4)
     Ireland tax rate benefits .......................................             (25.8)         (8.2)       (11.0)
     State income tax, net of federal income tax benefit .............               1.4            .5           .4
     Foreign Sales Corporation income not taxed ......................             (15.2)         (2.3)        (4.0)
     Change in valuation allowance ...................................                --            --          9.5
                                                                                --------      --------     --------
     Effective tax rate applicable to operations .....................             (15.4)         21.0         23.5
     Non-deductible charge for purchased research and development ....                --          93.2           --
                                                                                --------      --------     --------
     Effective tax rate ..............................................             (15.4)%       114.2%        23.5%
                                                                                ========      ========     ========
</TABLE>

     Tax exemptions relating to Puerto Rico and Ireland operations are effective
through 2004 and 2010, respectively. Income taxes paid (net of refunds) during
1998, 1997, and 1996 were $20,359, $18,704, and $24,228, respectively.


                                      F-18
<PAGE>

                              MILLIPORE CORPORATION

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued)
                 (In thousands except share and per share data)

     The Company has not recorded deferred income taxes applicable to
undistributed earnings of foreign subsidiaries that are indefinitely reinvested
in foreign operations. These earnings amounted to approximately $135,968 at
December 31, 1998. If earnings of such foreign subsidiaries were not
indefinitely reinvested, a deferred tax liability of approximately $37,769 would
have been required.

     At December 31, 1998, the Company has foreign tax credit carryforwards of
approximately $9,300 that expire in the years 1999 through 2003. General
business credit carryforwards of approximately $5,900 expire in the years 2001
through 2010. Net operating loss carryforwards of $86,854 expire through the
year 2013. In addition, the Company has alternative minimum tax credit
carryforwards of approximately $15,166 which can be carried forward
indefinitely.

     Significant components of the Company's net deferred tax assets are as
follows:

<TABLE>
<CAPTION>
                                                                              1998        1997
                                                                           ---------    ---------
     <S>                                                                   <C>          <C>
     Intercompany and inventory related transactions ..............        $  18,467    $  15,962
     Postretirement benefits other than pensions ..................            3,555        3,605
     Tax credits (including foreign tax credits on unremitted
        earnings) .................................................           44,396       50,064
     Net operating loss carryforwards .............................           30,399       10,750
     Deferred gain on sale of securities ..........................               --        8,750
     Restructuring and divestiture related costs ..................           12,484           --
     Amortization of intangible assets ............................           20,483       22,247
     Depreciation .................................................           (4,610)      (3,756)
     Other, net ...................................................           (3,508)       4,968
                                                                           ---------    ---------
                                                                             121,666      112,590
     Valuation allowance ..........................................          (13,121)     (22,135)
                                                                           ---------    ---------
     Net deferred tax asset .......................................        $ 108,545    $  90,455
                                                                           =========    =========
</TABLE>

     The valuation allowance is provided primarily against foreign tax credit
carryforwards and foreign tax credits on unremitted earnings which can be
utilized against future taxable income in the United States. The change in
valuation allowance for the year results from the write down of certain tax
credits for which the valuation allowance had been previously established. These
tax credits have expired and are no longer available to the Company. Although
realization is not assured, the Company believes it is more likely than not that
the remainder of the deferred tax asset, net of the valuation allowance, will be
realized primarily because of the anticipated increase of taxable income in the
U.S. The amount of the deferred tax asset considered realizable, however, could
be reduced in the near term if estimates of future taxable income are reduced.

NOTE M--Legal Proceedings

     On May 2, 1997, the Environmental Quality Board ("EQB") of Puerto Rico
served an administrative order on Millipore Cidra, Inc., a wholly-owned
subsidiary of the Company. The administrative order ("EQB order") alleged: (i)
that the nitrocellulose filter membrane scrap produced by Millipore Cidra's
manufacturing operations is a hazardous waste as defined in EQB regulations;
(ii) that Millipore Cidra, Inc. failed to manage, transport and dispose of the
nitrocellulose membrane scrap as a hazardous waste; and (iii) that such failure
violated EQB regulations. The EQB order proposed penalties in the amount of
$96,500 and ordered Millipore Cidra, Inc. to manage the nitrocellulose membrane
scrap as a hazardous waste. The Company recorded a charge of $5,000 in the first
quarter of 1998 reflecting its costs to settle this matter.


                                      F-19
<PAGE>

                              MILLIPORE CORPORATION

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued)
                 (In thousands except share and per share data)

     The Company also recorded a charge of $3,100 in the first quarter of 1998
reflecting its costs to settle a separate lawsuit with an intervening party in
the EQB administrative case described above.

     The Company recorded a charge of $3,666 in the first quarter of 1998 to
settle a patent lawsuit with Mott Metallurgical Corporation. In the lawsuit,
each party claimed infringement of one of its patents by the other. As part of
the settlement, the parties agreed to cross license the two patents at issue.

     The Company and Waters Corporation were engaged in an arbitration
proceeding and a related litigation in the Superior Court, Middlesex,
Massachusetts, both of which commenced in the second quarter of 1995 with
respect to the amount of assets required to be transferred by the Company's
Retirement Plan in connection with the Company's divestiture of its former
Chromatography Division. In the second quarter of 1996, Waters filed a Complaint
in the Federal District Court of Massachusetts alleging that the Company's
operation of the Retirement Plan violated ERISA and certain sections of the
Internal Revenue Code. Judgments in the Company's favor were handed down by both
the Massachusetts Superior Court and the Federal District Court in May 1997 and
July 1997, respectively. Waters appealed the federal court judgment, which was
affirmed by the United States Court of Appeals for the First Circuit by opinion
dated April 3, 1998. On June 2, 1998, the Company transferred $2,439 (including
interest through the date of transfer) from its Retirement Plan to the Waters
Retirement Plan as provided by the amended and restated Purchase and Sale
Agreement. In order to fund the transfer, in the second quarter of 1998 the
Company made a contribution of $2,255 to its Retirement Plan in accordance with
ERISA funding requirements.

     In the past the Company has been named as a potentially responsible party
by the Environmental Protection Agency ("EPA") at twelve hazardous waste
("Superfund") sites and prior to 1995, the Company had paid $14,000 to settle
claims at those sites. However, as is typical with settlements in such Superfund
proceedings, EPA and the relevant state agencies reserved the right to maintain
actions against the settling parties, including the Company, in the event
certain actions occur or do not occur. Due to the fact that Superfund sites at
which the Company was named a potentially responsible party are in the late
stages of remedy and a significant portion of the remedy cost has already been
funded, the Company believes that its probable future financial obligation at
December 31, 1998 will not materially affect its future financial condition and
results of operations. Amounts paid by the Company in 1998 and 1997 with respect
to the Superfund obligations were insignificant.

     During 1998 the Company was named as a potentially responsible party in a
Massachusetts proceeding with respect to two sites to which chemical wastes from
one of the above federal Superfund sites were transshipped. Massachusetts law
imposes joint and several liability for cleanup costs incurred on potentially
responsible parties at state designated hazardous waste sites, without regard to
fault or negligence, analogous to federal law. Although the full cost of
remediation at these sites has yet to be determined, Millipore believes
that the aggregate of any future potential liabilities should not have a
material adverse effect on Millipore's financial condition or results of
operations. This belief is based on the following factors: (i) the number and
size of financially solvent corporations which have also been named potentially
responsible parties with respect to these sites; (ii) the volume of Millipore
waste alleged to have been sent to these sites, and (iii) Millipore's belief
that the remedies required at these sites will be modest.

     The Company is also subject to a number of other claims and legal
proceedings which, in the opinion of the Company's management, are incidental to
the Company's normal business operations. In the opinion of the Company,
although final settlement of these suits and claims may impact the Company's
financial statements in a particular period, they will not, in the aggregate,
have a material adverse effect on the Company's financial condition and results
of operations.


                                      F-20
<PAGE>

                              MILLIPORE CORPORATION

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued)
                 (In thousands except share and per share data)

NOTE N--Leases

         Operating lease agreements cover sales offices, manufacturing and
warehouse space. These leases have expiration dates through 2008. Certain land
and building leases contain renewal options for periods ranging from one to ten
years and purchase options at fair market value. Rental expense was $12,033 in
1998, $11,849 in 1997, and $9,034 in 1996. At December 31, 1998 future minimum
rents payable under noncancelable leases with initial terms exceeding one year
were as follows:

          1999..........     $11,684
          2000..........       8,957
          2001..........       4,509
          2002..........       3,973
          2003..........       3,317
          2004-2008.....       9,672

     At December 31, 1998, the Company had long-term lease obligations related
to three Tylan manufacturing sites vacated as part of the Tylan integration.
Amounts associated with these leases are excluded from the above presentation.
Costs expected to be incurred by the Company to vacate these premises prior to
completion of each respective lease term are accrued as discussed in Note E.

     As part of the announced restructuring program, the Company plans to
establish regional transaction service centers resulting in the elimination of
duplicate facilities. The Company will vacate these facilities by 2000.
Accordingly, future rents payable under these leases are included for 1999
through 2000. Costs expected to be incurred by the Company to vacate these
premises prior to completion of each respective lease term are accrued, as
discussed in Note C.

NOTE O--Stock Plans

   Stock Option Plans

     The Company has two fixed option plans which reserve shares of common stock
for issuance to key employees and directors, respectively. The Company also has
a stock purchase plan which allows employees to purchase shares of the Company's
common stock as discussed below. The Company has adopted the disclosure-only
provisions of SFAS No. 123 "Accounting for Stock-Based Compensation."
Accordingly, no compensation cost has been recognized. Had compensation cost
been determined based on the fair value at the grant date consistent with the
provisions of SFAS 123, the Company's net income and basic earnings per share
would have been reduced by $3,748 or $0.08 per share in 1998, $2,112 or $0.05
per share in 1997, and $1,015 or $0.02 per share in 1996. The weighted average
fair value of options granted under the stock option plan was $8.29 in 1998,
$11.13 in 1997, and $12.48 in 1996. The weighted average fair value of shares
issued under the employee stock purchase plan was $4.61 in 1998 and 1997, and
$3.97 in 1996. The pro forma expense amounts assume that the fair value assigned
to the option grants was amortized over the vesting period of the


                                      F-21
<PAGE>

                              MILLIPORE CORPORATION

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued)
                 (In thousands except share and per share data)

options, which is four years, while the fair value assigned to grants under the
stock purchase plan is recognized in full at the date of grant.

     The fair value of each option grant is estimated on the date of the grant
using the Black-Scholes model with the following assumptions in 1998, 1997 and
1996: expected life of five years and an expected annual dividend increase of
$.04 per year. The expected volatility was 30 percent in 1998 and 25 percent in
1997 and 1996. The weighted average risk-free interest rate was 4.5 percent in
1998, 5.9 percent in 1997 and 6.1 percent in 1996. This rate approximated that
of 5 year U.S. government interest bearing securities.

   1995 Combined Stock Option Plan

     During 1996, the Company adopted the "1995 Combined Stock Option Plan",
which replaced the "1985 Combined Stock Option Plan". The terms of the 1995 Plan
are substantially similar to those of the 1985 Plan. In conjunction with the
adoption of the 1995 Plan, shares authorized for issuance under the Plan, when
aggregated with shares authorized under the 1985 Plan, were increased from
8,100,000 to 9,131,000. The Plan provides that the option price per share may
not be less than the fair market value of the stock at the time the option is
granted and that options must expire not later than 10 years from the date of
grant.

   Non-Employee Director Stock Option Plan

     Under the Company's Non-Employee Director Stock Option Plan, each eligible
director receives an option to purchase 4,000 shares of Millipore common stock
on the date of his or her first election, and thereafter automatically receives
an additional option to purchase 2,000 shares at the first board of directors
meeting following the Annual Meeting of Shareholders. The plan provides that the
option price per share may not be less than the fair market value of the stock
at the time the option is granted. At December 31, 1998, 153,500 options are
both issued and outstanding.

     Stock activity under both the 1995 Combined Stock Option Plan and the
Non-Employee Director Stock Option Plan is presented as follows:

<TABLE>
<CAPTION>
                                                                                          Weighted Average
                                                                                          ----------------
                                                         Option             Option         Exercise Price
                                                         ------             ------         --------------
                                                         Shares            Price              Per Share
                                                         ------            -----              ---------
     <S>                                                <C>              <C>                 <C>
     Outstanding at December 31, 1995.............      3,056,000        $13.56-$37.63       $    20.76
           Granted................................        479,000        $37.63-$42.00       $    41.29
           Exercised..............................       (384,000)       $13.56-$37.63       $    17.37
           Canceled...............................        (62,000)       $16.88-$37.63       $    25.06
                                                        ---------        -------------       ----------
     Outstanding at December 31, 1996.............      3,089,000        $13.81-$42.00       $    24.28
                                                        ---------        -------------       ----------
           Granted................................        699,000        $36.94-$44.13       $    37.98
           Exercised..............................       (303,000)       $13.81-$37.63       $    18.25
           Canceled...............................        (24,000)       $17.44-$42.00       $    29.19
                                                        ---------        -------------       ----------
     Outstanding at December 31, 1997.............      3,461,000        $13.81-$44.13       $    27.54
                                                        ---------        -------------       ----------
           Granted................................        884,000        $18.88-$48.13       $    29.07
           Exercised..............................       (155,000)       $14.50-$23.69       $    17.32
           Canceled...............................        (79,000)       $17.25-$43.50       $    36.74
                                                        ---------        -------------       ----------
     Outstanding at December 31, 1998.............      4,111,000        $13.81-$48.13       $    28.08
                                                        ---------        -------------       ----------
     Exercisable at:
           December 31, 1998......................      2,408,000
           December 31, 1997......................      2,092,000
           December 31, 1996......................      1,926,000
</TABLE>


                                      F-22
<PAGE>

                              MILLIPORE CORPORATION

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued)
                 (In thousands except share and per share data)

     The following table summarizes information about stock options at December
31, 1998:

<TABLE>
<CAPTION>
                                    Options Outstanding                       Options Exercisable
     ----------------------------------------------------------         ------------------------------
                                             Weighted
                                             --------
                                              Average      Weighted
                                              -------      --------
                              Options        Remaining      Average                        Weighted
                              -------        ---------      -------                        --------
         Range of           Outstanding     Contractual    Exercise     Exercisable        Average
         --------           -----------     -----------    --------     -----------        -------
     Exercise Price         at 12/31/98        Life          Price      at 12/31/98     Exercise Price
     --------------         -----------        ----          -----      -----------     --------------
     <S>                     <C>                   <C>     <C>           <C>             <C>
     $13.81-$23.69           1,771,000              5      $ 18.68       1,763,000       $      18.67
     $26.38-$37.50           1,431,000             10      $ 32.06         148,000       $      36.27
     $37.63-$48.13             909,000              8      $ 40.14         497,000       $      39.61
     -------------           ---------                                   ---------
     $13.81-$48.13           4,111,000                                   2,408,000
</TABLE>

   Employees' Stock Purchase Plan

     Under the Company's Employees' Stock Purchase Plan, all employees of the
Company and its subsidiaries who have 90 days continuous service prior to the
beginning of the plan year, May 1, may purchase shares of Millipore common stock
by payroll deduction. The purchase price per share during the plan year is the
lesser of the fair market value of the common stock at the time of purchase or
on May 1.

     In 1998, 1997 and 1996, shares issued under the Plan were 38,000, 33,000
and 72,000, respectively. As of December 31, 1998, 225,000 shares of Millipore
common stock were available for sale to employees under the Plan.

   Incentive Plan for Senior Management

     Under this plan, Millipore common stock is awarded to key members of senior
management at no cost to them. The stock cannot be sold, assigned, transferred
or pledged during a restriction period which is normally four years but in some
cases may be less. In most instances, shares are subject to forfeiture should
employment terminate during the restriction period.

     The stock issued under the plan is recorded at its fair market value on the
award date; the related deferred compensation is amortized to selling, general
and administrative expenses over the restriction period. At the end of 1998,
1997, and 1996, 139,000, 117,000 and 119,000 shares, respectively, were
outstanding under the plan. Plan expense was $800 in 1998, $657 in 1997 and $559
in 1996. As of December 31, 1998, 9,500 shares of Millipore common stock were
available for future awards under this plan.

NOTE P--Employee Retirement Plans

   Participation and Savings Plan

     The Millipore Corporation Employees' Participation and Savings Plan
("Participation and Savings Plan"), maintained for the benefit of all U.S.
employees, combines both a defined contribution plan ("Participation Plan") and
an employee savings plan ("Savings Plan"). Contributions to the Participation
Plan are allocated among the U.S. employees of the Company who have completed at
least two years of continuous service on the basis of the compensation they
received during the year for which the contribution is made. The Savings Plan
allows employees with one year of continuous service to make certain
tax-deferred voluntary contributions which the Company matches with a 25 percent
contribution (50 percent contribution for employees with 10 or more years of
service). Total expense under the Participation and Savings Plan was $7,392 in
1998, $6,700 in 1997 and $4,866 in 1996.


                                      F-23
<PAGE>

                              MILLIPORE CORPORATION

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued)
                 (In thousands except share and per share data)

   Retirement Plan

     The Company's Retirement Plan for Employees of Millipore Corporation
("Retirement Plan") is a defined benefit plan for all U.S. employees which
provides benefits to the extent that assets of the Participation Plan, described
above, do not provide guaranteed retirement income levels. Guaranteed retirement
income levels are determined based on years of service and salary level as
integrated with Social Security benefits. Employees are eligible under the
Retirement Plan after one year of continuous service and are vested after five
years of service. For accounting purposes, the Company uses the projected unit
credit method of actuarial valuation. The actuarial method for funding purposes
is the entry age normal method. The Company contributes annually to the
Retirement Plan, subject to Internal Revenue Service and ERISA funding
limitations. No contributions were required for 1998, 1997 and 1996. Plan assets
are invested primarily in mutual funds and money market funds.

     In addition to the Retirement Plan, the Company sponsors several unfunded
defined benefit postretirement plans covering all U.S. employees, which are
included in Other Benefits. The plans provide medical and life insurance
benefits and are, depending on the plan, either contributory or
non-contributory.

     Plan data as of December 31, 1997 includes assets and obligations
pertaining to employees of the Company's former Waters Division, as the assets
subject to these former employees had not yet been transferred to Waters
Corporation. In the second quarter of 1998, the Company transferred $2,440 of
plan assets (including interest through the date of the transfer) and $400 of
benefit obligations from its Retirement Plan to the Waters Retirement Plan. In
order to fund the transfer, the Company made a contribution of $2,255 to its
Retirement Plan in accordance with ERISA funding requirements. These amounts had
been previously accrued and included in net loss on disposal of discontinued
operations in 1994.

     The following tables summarize the funded status of the Employee Retirement
Plans and amounts reflected in the Company's consolidated balance sheets at
December 31, based on Statement No. 132, Employers' Disclosures about Pensions
and Other Postretirement Benefits.


                                      F-24
<PAGE>

                              MILLIPORE CORPORATION

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued)
                 (In thousands except share and per share data)

<TABLE>
<CAPTION>
                                                                          Pension Benefits                    Other Benefits
                                                                          ----------------                    --------------
                                                                        1998             1997             1998             1997
                                                                      --------         --------         --------         --------
     <S>                                                              <C>              <C>              <C>              <C>
     Change in benefit obligation:
            Benefit obligation at beginning of year ..........        $  7,824         $  7,022         $  6,584         $  6,809
            Service cost .....................................              27              270              379              317
            Interest cost ....................................             524              523              448              418
            Plan participants' contributions .................             321              245               75               71
            Actuarial loss (gain) ............................             552              423              515             (777)
            Acquisitions .....................................              --               --               --              150
            Benefits paid ....................................          (1,006)            (659)            (428)            (404)
            Settlement .......................................            (400)              --               --               --
                                                                      --------         --------         --------         --------

            Benefit obligation at end of year ................        $  7,842         $  7,824         $  7,573         $  6,584
                                                                      ========         ========         ========         ========
     Change in plan assets:
            Fair value of plan assets at beginning of year ...        $  8,794         $  7,657         $     --         $     --
            Actual return on plan assets .....................           1,311            1,551               --               --
            Company contributions ............................           2,255               --              353              333
            Plan participant contribution ....................             321              245               75               71
            Benefits paid ....................................          (1,006)            (659)            (428)            (404)
            Settlement .......................................          (2,440)              --               --               --
                                                                      --------         --------         --------         --------

            Fair value of plan assets at end of year .........        $  9,235         $  8,794         $     --         $     --
                                                                      ========         ========         ========         ========
     Funded status ...........................................        $  1,394         $    970         $ (7,573)        $ (6,584)
     Unrecognized net loss (gain) ............................           2,235            2,542           (2,939)          (3,587)
     Unrecognized prior service cost .........................              89              100               --               --
     Unrecognized net transition obligation ..................            (311)            (411)              --               --
                                                                      --------         --------         --------         --------
     Prepaid (accrued) benefit cost ..........................        $  3,407         $  3,201         $(10,512)        $(10,171)
                                                                      ========         ========         ========         ========
</TABLE>

<TABLE>
<CAPTION>
                                                                     Pension Benefits         Other Benefits
                                                                     ----------------         --------------
                                                                  1998    1997    1996     1998    1997    1996
                                                                  ----    ----    ----     ----    ----    ----
     <S>                                                          <C>     <C>     <C>       <C>     <C>     <C>
     Weighted average assumptions as of December 31:
            Discount rate................................         6.5%    7.0%    7.5%      6.5%    7.0%    7.5%
            Expected return on plan assets...............         8.0%    8.0%    8.0%      N/A     N/A     N/A
            Rate of compensation increase................         5.0%    5.0%    5.0%      N/A     N/A     N/A
</TABLE>

      For measurement purposes, a 6 percent annual rate of increase in the per
capita cost of covered health care benefits was assumed for 1999. The rate was
assumed to decrease gradually to 5 percent for 2000 and remain at that level
thereafter.

<TABLE>
<CAPTION>
                                                                     Pension Benefits                      Other Benefits
                                                                     ----------------                      --------------
                                                              1998         1997         1996       1998         1997         1996
                                                             -----        -----        -----      -----        -----        -----
     <S>                                                     <C>          <C>          <C>        <C>          <C>          <C>
     Components of net periodic benefit cost:
            Service cost (benefit) ...................       $  27        $ 270        $ (29)     $ 379        $ 317        $ 298
            Interest cost ............................         524          523          499        449          418          453

            Expected return on plan assets ...........        (690)        (589)        (569)        --           --           --

            Amortization of unrecognized gain ........         (82)         (84)         (84)      (133)        (166)        (205)
            Amortization of prior service cost .......          11           11           11         --           --           --
            Recognized actuarial loss ................         121          187          274         --           --           --
                                                             -----        -----        -----      -----        -----        -----
            Net periodic benefit cost ................       $ (89)       $ 318        $ 102      $ 695        $ 569        $ 546
                                                             =====        =====        =====      =====        =====        =====
</TABLE>


                                      F-25
<PAGE>

                              MILLIPORE CORPORATION

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued)
                 (In thousands except share and per share data)

     Assumed health care cost trend rates have a significant effect on the
amounts reported for the health care plans. A one-percentage-point change in the
assumed health care cost trend rates would have the following effects.

<TABLE>
<CAPTION>
                                                                        1% Point     1% Point
                                                                        --------     --------
                                                                        Increase     Decrease
                                                                        --------     --------
          <S>                                                            <C>         <C>
          Effect on total of services and interest cost components...    $   133     $  (114)
          Effect on postretirement benefit obligations...............        960        (852)
</TABLE>

NOTE Q--Business Segment Information

     The Company adopted Financial Accounting Standards No. 131 "Disclosures
about Segments of an Enterprise and Related Information" (FAS 131) as of
December 31, 1998 and prior year information was restated in conformity with
this accounting standard. The Company has two reportable business segments as
defined by the FAS 131--Biopharmaceutical & Research and Microelectronics.

     The Biopharmaceutical & Research segment develops, manufactures and sells
consumable products and capital equipment to pharmaceutical companies,
biotechnology companies, food and beverage companies, university and government
laboratories and research institutes. The segment also provides process design,
engineering and repair services to it customers. The product offering of the
Biopharmaceutical & Research segment include membranes, membrane based filter
and separation devices, test kits, laboratory water purification systems, resin
based cartridge filters, laboratory test equipment and manufacturing process
equipment. The segment's products are used in laboratory and research
applications for detecting and identifying molecules, compounds or
micro-organisms in a fluid sample. Filters, separation devices and process
equipment sold by the segment are used in manufacture of pharmaceutical
products, diagnostic devices and beverages to isolate and purify specific
components or to remove contaminants in a fluid stream. The products are sold
worldwide principally through a direct sales force. Distributors are used in
selected regions for specific product lines.

     The Microelectronics segment develops, manufactures and sells consumables
and capital equipment to semiconductor fabrication companies as well as OEM
suppliers to those companies. The segment also provides capital equipment
warranty and repair services to its customers. Microelectronics products include
membrane and metal based filters, housings, precision liquid dispense filtration
pumps, resin based gas purifiers and mass flow and pressure controllers. The
segment's products are used by customers in manufacturing operations to remove
contaminants in process fluid streams and process gas applications to purify
process gases, to measure and control flow rates in process gas streams and to
control and monitor pressure and vacuum levels in process chambers. The products
are sold worldwide through a direct sales force.

     The operating segment results for Biopharmaceutical & Research,
Microelectronics and Corporate included below are presented in "local
currencies". For comparability of financial results, the foreign currency
balances, in all periods presented, are translated at Millipore's 1998 budgeted
exchange rates which differ from actual rates of exchange. The foreign exchange
impact is shown separately and reconciles the local currency reporting to the
consolidated results at the actual rates of exchange. This provides a clearer
presentation of underlying trends in the Company's business, before the impact
of foreign currency translation.


                                      F-26
<PAGE>

                              MILLIPORE CORPORATION

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued)
                 (In thousands except share and per share data)

   Operating Segments:

<TABLE>
<CAPTION>
                                                               Consolidated Net Sales
                                                         ------------------------------------
                                                         1998           1997             1996
                                                      ----------     ----------       ----------
     <S>                                              <C>            <C>              <C>
     Biopharmaceutical & Research ...............     $  526,982     $  491,369       $  409,831
     Microelectronics ...........................        188,222        261,810          159,944
     Foreign exchange ...........................        (15,897)         5,740           48,960
                                                      ----------     ----------       ----------
          Total net sales .......................     $  699,307     $  758,919       $  618,735
                                                      ==========     ==========       ==========
</TABLE>

<TABLE>
<CAPTION>
                                                         Consolidated Operating (Loss) Income
                                                         ------------------------------------
                                                         1998           1997             1996
                                                      ----------     ----------       ----------
     <S>                                              <C>            <C>              <C>
     Biopharmaceutical & Research ...............     $  107,932     $  100,190       $   82,292
     Microelectronics ...........................        (16,627)        33,748           40,021
     Corporate ..................................        (26,820)       (27,726)         (23,366)
     Restructuring and unusual charges ..........        (60,582)      (119,091)         (68,311)
     Foreign exchange ...........................         (4,569)        13,986           29,776
                                                      ----------     ----------       ----------
          Total operating (loss) income .........     $     (666)    $    1,107       $   60,412
                                                      ==========     ==========       ==========
</TABLE>

<TABLE>
<CAPTION>
                                                        Depreciation and Amortization Expense,
                                                        --------------------------------------
                                                         included in Operating (Loss) Income
                                                         -----------------------------------
                                                         1998           1997             1996
                                                      ----------     ----------       ----------
     <S>                                              <C>            <C>              <C>
     Biopharmaceutical & Research ...............     $   18,013     $   15,200       $   13,420
     Microelectronics ...........................         12,567          9,892            3,847
     Corporate ..................................         13,109         14,504           10,334
     Foreign exchange ...........................            720          1,065            2,986
                                                      ----------     ----------       ----------
          Total depreciation and amortization ...     $   44,409     $   40,661       $   30,587
                                                      ==========     ==========       ==========
</TABLE>

                                              Segment Assets--
                                              ----------------
                                               Inventory only
                                               --------------
                                              1998        1997
                                           ---------   ---------
     Biopharmaceutical & Research.......   $  77,274   $  82,245
     Microelectronics...................      28,368      37,578
     Corporate..........................      (1,083)     11,095
     Foreign exchange...................       2,682      (3,726)
                                           ---------   ---------
          Total segment assets..........   $ 107,241   $ 127,192
                                           =========   =========


                                      F-27
<PAGE>

   Geographical Segments:

     The Company attributes net sales and long-lived assets to different
geographic areas on the basis of the location of the customer. The Company has
three geographic regions. The United States represents greater than 90% of the
Americas region. Net sales and long-lived asset information by geographic area
in U.S. dollars as of December 31, 1998, 1997 and 1996 and for each of the three
years ended December 31, 1998 is presented as follows:

                                            Net Sales
                                  ------------------------------
                                    1998       1997       1996
                                  --------   --------   --------
          Americas...........     $292,173   $321,634   $217,700
          Europe  .                237,786    222,452    192,827
          Japan and Asia.....      169,348    214,833    208,208
                                  --------   --------   --------
               Total.........     $699,307   $758,919   $618,735
                                  ========   ========   ========

                                   Long-Lived Assets
                                  -------------------
                                    1998       1997
                                  --------   --------
          Americas...........     $254,017   $246,264
          Europe  .                 58,179     50,002
          Japan and Asia.....       36,947     33,172
                                  --------   --------
               Total.........     $349,143   $329,438
                                  ========   ========


                                      F-28
<PAGE>

                        REPORT OF INDEPENDENT ACCOUNTANTS

To the Shareholders and Directors of Millipore Corporation:

     In our opinion, the accompanying consolidated balance sheets and the
related consolidated statements of income, shareholders' equity, and of cash
flows, after the restatement described in Note B, present fairly, in all
material respects, the financial position of Millipore Corporation and its
subsidiaries at December 31, 1998 and 1997, and the results of their operations
and their cash flows for each of the three years in the period ended December
31, 1998, in conformity with generally accepted accounting principles. These
financial statements are the responsibility of the Company's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these statements in accordance with
generally accepted auditing standards which require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements are
free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements,
assessing the accounting principles used and significant estimates made by
management, and evaluating the overall financial statement presentation. We
believe that our audits provide a reasonable basis for the opinion expressed
above.

                           PRICEWATERHOUSECOOPERS LLP

Boston, Massachusetts
January 20, 1999, except for Note B,
for which the date is November 12, 1999


                                      F-29
<PAGE>

Quarterly Results (Unaudited)

     The Company's unaudited quarterly results are summarized below.

<TABLE>
<CAPTION>
                                                       First       Second        Third       Fourth
                                                      Quarter      Quarter      Quarter      Quarter       Year
                                                     ---------    ---------    ---------    ---------    ---------
                                                                     (In thousands, except per share data)
<S>                                                  <C>          <C>          <C>          <C>          <C>
1998
Net sales ........................................   $ 185,662    $ 175,172    $ 159,181    $ 179,292    $ 699,307
Cost of sales ....................................      86,429       85,507      101,493       91,038      364,467
                                                     ---------    ---------    ---------    ---------    ---------
     Gross profit ................................      99,233       89,665       57,688       88,254      334,840
Selling, general and administrative expenses .....      61,687       60,809       56,588       57,437      236,521
Research and development expenses ................      13,135       13,910       13,301       13,232       53,578
Restructuring charges ............................          --           --       33,641           --       33,641
Settlement of litigation .........................      11,766           --           --           --       11,766
                                                     ---------    ---------    ---------    ---------    ---------
     Operating income (loss) .....................      12,645       14,946      (45,842)      17,585         (666)
Gain on sale of equity securities ................      35,594           --           --           --       35,594
Interest income ..................................         614          761          877          838        3,090
Interest expense .................................      (7,073)      (7,058)      (7,098)      (8,245)     (29,474)
                                                     ---------    ---------    ---------    ---------    ---------
     Income (loss) before income taxes ...........      41,780        8,649      (52,063)      10,178        8,544
Provision (benefit) for income taxes .............      10,370        1,816      (15,643)       2,137       (1,320)
                                                     ---------    ---------    ---------    ---------    ---------
   Net income (loss) .............................   $  31,410    $   6,833    $ (36,420)   $   8,041    $   9,864
                                                     =========    =========    =========    =========    =========
   Net income (loss) per share:
     Basic .......................................   $    0.72    $    0.16    $   (0.83)   $    0.18    $    0.22
     Diluted .....................................   $    0.71    $    0.15    $   (0.83)   $    0.18    $    0.22
Weighted average shares outstanding
     Basic .......................................      43,727       43,819       43,891       44,005       43,864
     Diluted .....................................      44,307       44,327       43,891       44,294       44,289

1997
Net sales .                                          $ 178,839    $ 192,498    $ 184,544    $ 203,038    $ 758,919
Cost of sales ....................................      80,634       86,424       82,372       92,807      342,237
                                                     ---------    ---------    ---------    ---------    ---------
     Gross profit ................................      98,205      106,074      102,172      110,231      416,682
Selling, general and administrative expenses .....      59,777       63,273       58,965       63,570      245,585
Research and development expenses ................      13,151       15,003       14,353       13,392       55,899
Purchased research and development expense .......     114,091           --           --           --      114,091
                                                     ---------    ---------    ---------    ---------    ---------
     Operating (loss) income .....................     (88,814)      27,798       28,854       33,269        1,107
Gain on sale of equity securities ................       1,769           --        5,304        1,257        8,330
Interest income ..................................         761          636          708          832        2,937
Interest expense .................................      (6,024)      (8,159)      (8,026)      (8,275)     (30,484)
                                                     ---------    ---------    ---------    ---------    ---------
     (Loss) income before income taxes ...........     (92,308)      20,275       26,840       27,083      (18,110)
Provision (benefit) for income taxes .............       5,454        3,894        5,637        5,689       20,674
                                                     ---------    ---------    ---------    ---------    ---------
     Net (loss) income ...........................   $ (97,762)   $  16,381    $  21,203    $  21,394    $ (38,784)
                                                     =========    =========    =========    =========    =========
     Net (loss) income per share:
        Basic ....................................   $   (2.25)   $    0.38    $    0.49    $    0.49    $   (0.89)
        Diluted ..................................   $   (2.25)   $    0.37    $    0.48    $    0.48    $   (0.89)
Weighted average shares outstanding
     Basic .......................................      43,391       43,512       43,565       43,629       43,527
     Diluted .....................................      43,391       44,274       44,428       44,344       43,527
</TABLE>


                                      F-30