Quest Diagnostics reported net income of $26.9 million in 1998, an improvement from a net loss in 1997. The company generated strong cash flow and extended strategic partnerships to provide diagnostic services. Quest announced an agreement to acquire SmithKline Beecham Clinical Laboratories for $1.3 billion to increase market share and reduce costs through integration. The company also established ambitious quality goals to be achieved by 2002, including six sigma medical quality and doubling operating profit, to drive future growth.

1. Quest Diagnostics Incorporated
Annual Report 1998
Dedicated people improving the health of patients
through unsurpassed diagnostic insights.

2. Our Values
Quality Innovation Collaboration
The patient comes first in everything We constantly seek innovative We believe in teamwork
we do. Our passion is to provide ways to enhance patient care and and the limitless possibilities of
every patient and every customer provide value to our customers. collaborative energy. We achieve
with services and products of We support the creativity, courage excellence by putting collective
uncompromising quality — error and persistence that transform goals ahead of personal interests.
free, on time, every time. We do information into knowledge, and We support and encourage open
that by dedicating ourselves to the knowedge into insights. We seek communication and meaningful
relentless pursuit of excellence in continuous advancementthrough cooperation among colleagues
the services we provide. theadaptation of existing knowledge from varying backgrounds and
as well as through experimentation, disciplines. We respect individual
Integrity
with the full understanding that we differences, and we value diversity.
Credibility is the key to our
learn from our failures as well as
success; therefore, all of our
our successes. Leadership
processes, decisions and actions
We strive to be the best at what we
ultimately are driven by integrity.
Accountability do — both as a company, and as
We are honest and forthright in all
As a company and as individuals, individuals. We embrace the
our dealings with our customers
we accept full responsibility for our qualities of personal leadership —
and with each other. We are
performance and acknowledge courage, competence, confidence
responsible corporate citizens in
our accountability for the ultimate and a passion for surpassing
the communities we serve. We
outcome of all that we do. We strive expectations. We will provide growth
strictly comply with the laws and
for continuous improvement, opportunities for our employees,
regulations governing our business,
believing that competence, reliability, quality services and products to our
not only as a legal obligation and a
and rigorous adherence to process customers and superior returns to
competitive necessity, but because
discipline are the keys to excellence. our shareholders.
it is the right thing to do.
Our Business:
Quest Diagnostics Incorporated is one of the nation’s leading providers of
diagnostic testing, information and services with laboratories and patient service
centers across the United States. The wide variety of tests performed on human
tissue and fluids help doctors and hospitals diagnose, treat and monitor disease.
Nichols Institute conducts research, specializes in esoteric testing using genetic
screening and other advanced technologies, and manufactures and distributes
diagnostic test kits and instruments. Quest Informatics collects and analyzes laboratory,
pharmaceutical and other data to help large health care customers identify and
monitor patients who are at-risk for certain diseases.
2

3. Quest Diagnostics Incorporated and Subsidiaries
financial highlights
Y E A R S E N D E D D E C E M B E R 3 1
(in millions, except per share data) 1998 1997
Net revenues $ 1,458.6 $ 1,528.7
Net income (loss) before restructuring
and other non-recurring charges 26.9 17.6
Net income (loss) (a) 26.9 (22.3)
Weighted average common
shares outstanding – diluted 30.2 29.2
Diluted net income per common share $ 0.89 $ (0.77)
Adjusted EBITDA (b) $ 158.6 $ 153.8
(a)
Includes non-recurring charges totaling
$56 million in 1997.
(b)
Adjusted EBITDA represents income (loss) before
income taxes, net interest expense, depreciation,
amortization and restructuring and other
non-recurring charges.
3

4. Chairman’s Letter
By most measures, 1998 was a year the clinical laboratory business of As anticipated, requisition volume
in which your company made solid SmithKline Beecham plc. Quest declined 7% from 1997, although
the rate of decline did slow over
progress. Even as we met the challenges Diagnostics has agreed to purchase
the course of the year. Given these
of growing competition and declining SmithKline Beecham Clinical
conditions, we are particularly
clinical testing volume, we generated Laboratories(SBCL) for approximately
pleased with our ability to generate
strong cash flow, extended our strategic $1.3 billion in cash and stock. This
substantial amounts of cash. We
partnerships in new and innovative important acquisition will enable us
ended the year with $203 million
ways, aggressively managed costs, and to provide a higher level of service
made significant progress toward for customers and patients in a cost- of cash on hand, and generated
achieving our goal of becoming a unified, constrained environment, thereby $141 million in cash from operations.
customer-driven company with increasing shareholder returns. Strong cash generation reflects
significant improvements in
common systems, practices and values
This transaction is highly strategic our billing, collection and cost
everywhere throughout the country.
and timely. We are confident we management processes.
At yearend, we were well positioned
have the discipline and the focus to
to take a new strategic step to further
ensure successful integration of the There are many other indicators
improve our prospects.
two companies. We are acquiring a of financial strength in our
company that in many ways mirrors 1998 performance:
Perhaps most important for long-
our own business. Both companies
term success, we reinforced in 1998
In addition to repaying $33 million
have strong reputations as well-
the commitment to our vision –
of scheduled bank debt, we prepaid
managed operations. We share a
“dedicated people improvingthehealth
an additional $20 million of debt
common commitment to quality,
of patients through unsurpassed
ahead of schedule, while also buying
integrity and compliance, and are
diagnostic insights” – by pledging
back $13 million of our stock.
both dedicated to improving
ourselves to a set of ambitious and
patient health. Combining the two
clearly quantifiable goals for
We remained firmly on track to
companies will improve the quality,
instilling unsurpassed quality in
meet the commitment made at the
convenience and accessibility of our
every aspect of the business.
time of our spinoff from Corning
services; accelerate innovation of
Incorporated in early 1997 to reduce
As the information included in new tests and information products;
the cost of running our business by
this report demonstrates, Quest and enable continued reduction in
$180 million by the end of 2000.
Diagnostics has come a long, long our costs by sharing the best practices
Through the end of 1998, we
way from the difficult years of the from each of our organizations. We
eliminated $100 million in costs
mid-1990s. Our turnaround is expect to complete the transaction
unrelated to the decline in requisition
succeeding. We are committed to this summer, following shareholder
volume, and we remain confident
becoming the clear industry leader approval and regulatory clearance.
that we will meet our goal. These
by providing our patients and Upon completion, SmithKline
savings are allowing us to reinvest in
customers with services and products Beecham plc will become our largest
our business to assure long term
of exceptional quality. In a business shareholder, owning approximately
profitable growth.
where the quality of what we do can 29.5% of our shares.
literally mean the difference between
We reduced bad debt expense from
Performance Summary
life and death, we are absolutely
7.4% of revenues in 1997 to 6.1% in
We are pleased to report that in
convinced that consistent, unsurpassed
1998, steadily progressing toward
1998, Quest Diagnostics reported
quality will provide the ultimate
our goal of 4% by the end of 2000.
net income of $26.9 million, or $0.89
competitive edge.
A major step was the conversion of
per diluted share, on revenues of
our Teterboro facility to a new
SBCL Acquisition $1.46 billion, versus 1997 net income,
billing system, by far the largest and
adjusted to exclude special charges, of
We announced an agreement as this
$17.6 million, or $0.60 per share, on most successful conversion to date.
report was going to press to acquire
revenues of $1.53 billion.
4

5. We saw average revenue per requisition slowed in the second half; moreover, 1995 $177 million
increase for the second consecutive of the 7% year-over-year decline in
$166 million
1996
year, following five straight years of volume, about half was directly
$154 million
1997
declines. Partly, this was a result attributable to our own consolidation
of replacing low-profit business with of facilities and to our decision to 1998 $159 million
higher-profit business as we demon- reduce unprofitable business. Still,
Adjusted EBITDA*
strated our steadfast commitment we do not intend to shrink our
to provide services only to those way to success, and we continue to
customers from whom we are pursue top line growth through the
properly compensated, even if strategic acquisition of SBCL and
1995 $ 36 million
that means a decline in volume. the active development of new high
$ 42 million
1996
growth businesses.
We made substantial progress during
$162 million
1997
1998 toward addressing the Year 2000 Strategic Partnerships
1998 $203 million
computer-programming problem. Your company intensified efforts to
Although substantial work remains, Cash and Cash Equivalents at End of Year
become the preferred partner with
we are on track to complete the first large buyers of health care services.
phase on schedule midway through We made important inroads within
1999, which will leave the second half the highly competitive field of
of the year for testing and refine- 1995 $1,208 million
hospital testing, which accounts
ments. Consequently, we fully expect for nearly 55% of the $30-plus $ 536 million
1996
core systems to be Year 2000-ready billion market in clinical testing.
$ 515 million
1997
before the end of the year. Our Year In part, our success comes from
2000 work has provided the added viewing traditional competitors 1998 $ 465 million
benefit of accelerating efforts to as potential partners, and providing Debt at End of Year
standardize billing and laboratory ways we can profitably work together
systems across the country. to reduce their lab testing costs while
simultaneously improving quality.
Nevertheless, 1998 was not without
1995 9.4%
disappointments. Our progress Over time, we have come to realize
toward standardization of systems 6.9%
1996
there is no “one-size-fits-all” model of
and practices was significant, but collaboration; each situation is unique 7.4%
1997
not as swift as we had hoped. Also, and requires creative approaches,
1998 6.1%
the joint venture in Arizona, Sonora ranging from outsourcing routine
Quest Laboratories, in which we hold Bad Debt as Percentage of Net Revenues
testing to fully integrated joint
a minority interest, encountered ventures. Some of the partnerships
significant integration challenges successfully established in 1998
that hindered its first year of include:
operations. Also, Nichols Institute *Adjusted EBITDA; excludes restructuring charge
and other special charges
Joint ventures with UPMC Health
Diagnostics, our medical products
System in western Pennsylvania
subsidiary, encountered startup losses
and Unity Health in St. Louis, both
associated with the introduction of
leading hospital network and health
its state-of-the-art Nichols Advantage
care providers in their respective
instrument.
regions;
Finally, the decline in the volume of
Partnerships through which we
test requisitions was disappointing.
provide multiple clinical services to
Admittedly, the rate of decline
5

6. the highly regarded hospitals of the and will be our primary focus in the Achieve Six Sigma Medical Quality:
Johns Hopkins Health System in new year. The ultimate measure of our service
Maryland and Sutter Health Systems to customers andclients is the accuracy
Our Quality Journey
in California. During the year we of our medical test results and reports.
We began “Our Quality Journey”
established or renewed long-term Generally speaking, our industry has
by establishing some exceptionally
supply arrangements with more been comfortable with an accuracy
ambitious quality challenges that we
than 100 hospitals and hospital rate above 90%. We have established
fully intend to meet by the end of
systems; a new goal of Six Sigma– an accuracy
2002. The only way we can achieve rate of 99.99966% or only 3.4 errors
A long-term contract with Oxford them is through a fundamentally per million – which approaches error-
Health Plans to manage a network of different approach to doing business free testing and reporting. We fully
laboratory service providers, as well based on quality excellence – through intend to become the first in our
as provide lab services, for its 1.75 education and training in the industry to achieve this goal.
million members. We will provide principles of quality management,
Deliver Bottom Line Growth:
network management services using through rigorous process discipline,
Our goal is to more than double
QuestNet, an innovative new product and through performance-based
operating profit (EBITA) by 2002.
developed during the past year; and compensation linked directly to our
That means we must continue
company-wide goals. Here is what
A partnership with Premier to remove costs while restoring
we have set out to accomplish:
Inc., a leading group purchasing profitable growth to the top line.
Improve Employee Satisfaction:
organization for hospitals, through
These four goals are interrelated.
Our goal is to reduce voluntary
which Quest Diagnostics obtained
We must achieve the first three:
employee turnover from almost
an exclusive 10-year contract
increased employee satisfaction,
16% to 10% in 2000 and 7% by
to provide strategic services for
greater customer satisfaction, and
the end of 2002. We estimate that
Premier members and affiliates.
dramatically improved medical
voluntary turnover is costing our
Historically, our primary avenue quality, to enable us to meet the
company at least $60 million each
into the hospital testing market has financial goal.
year in terms of recruitment, training
been the highly specialized esoteric and inefficient operations. Increased
To help us accelerate growth and
testing provided by our Nichols retention willhave a significant impact
improve organizational effectiveness,
Institute. We are proud that in 1998 on the quality of our work and our
we made two senior-level appoint-
Nichols Institute became the first success at managing expenses.
ments in January. We added a
clinical laboratory in North America
Improve Customer Satisfaction: distinguished health care industry
to receive ISO 9001 Certification.
Each quarter, we survey our customers veteran, Dr. Surya Mohapatra, as
This internationally recognized
to determine their level of satisfaction Senior Vice President and Chief
standard of quality encompasses the
with our service. For the past four Operating Officer. In this new
management and document control
years, our results have improved, position, Surya, who comes to
systems for design, development and
but only marginally. us after nearly 18 years at Picker
performance of diagnostic lab
International, will be responsible
testing, information and services. Using benchmarks and measures
for all facets of our core clinical
Other Quest Diagnostics labs are provided by outside specialists, we
laboratory testing business. In
pursuing certification, and we have set specific numerical goals
addition, Jim Chambers has accepted
are intent on replicating Nichols for improvement for each of the
a new assignment as Senior Vice
Institute’s success throughout our next four years. The bottom line:
President and Chief Growth Officer.
company. Indeed, that achievement Satisfactory is not acceptable. We
He will lead the integration of
helped set the tone for the company- intend to become the benchmark
SBCL and Quest Diagnostics, while
wide emphasis on quality excellence for quality in our industry.
continuing to spearhead our efforts to
that was reinvigorated in the fall
grow beyond our traditional business.
6

7. Meeting the Challenges of 1999 • We will reestablish top line
growth at Quest Diagnostics and
The four quality challenges represent
continue strong cash generation.
an ambitious agenda. We are fully
committed to meeting these new In short, 1999 promises a year full
challenges, while continuing to of challenges for your company, but
build on the initiatives that gained one in which we have the opportunity
momentum in 1998. to move far beyond the solid record
of accomplishments we have established
During 1999:
during our first two years as a public
• We will begin the process of
company. We are convinced that
bringing Quest Diagnostics and
our attention is focused on the right
SBCL together;
goals: providing quality services for
• We will maintain and intensify
our customers and patients, an
our efforts to standardize practices,
exceptional working environment
policies and priorities across the
for our dedicated employees, and
company;
a strong return on our shareholders’
• We will continue to manage costs
investment. By maintaining an
aggressively;
unswerving focus on these critical
• We will complete preparations to
areas, we can look forward to
ensure our information technology
reporting another year of strong
systems are Year 2000-ready;
performance improvement in the
• Despite a difficult environment
new year.
characterized by ever-changing
government regulations and
requirements, we remain committed
to maintaining our status as the
industry leader in compliance;
• We will maintain our focus on
Kenneth W. Freeman
raising revenue per requisition by
Chairman and Chief Executive Officer
providing higher value to cost-sensitive
customers in a highly fragmented,
competitive environment;
• We will continue to seek out
profitable partnerships with large
buyers of health services as we
pursue new growth opportunities
to offset continuing declines in
our traditional markets; and
7

8. The 15,000 employees of Quest Diagnostics are our most
valuable resource. Across the country, every day, they put
their hearts and souls into their work. Why? They know that
every time they collect a specimen, transport it to one of our
laboratories, perform testing or report the results back to
a physician, someone’s life may depend on the job they do.
During the 1980s and early 1990s, our company grew through
acquisitions. Employees came from many predecessor companies.
Today, they are all building a common company-wide culture
at Quest Diagnostics, based on shared values and best practices,
with a single-minded focus on quality that starts with
understanding our customers’ expectations. For many of
our employees, it is not enough merely to help patients
during work hours. Our national volunteer program, called
“reach!” (remember every act can help), enables our
employees to contribute to the communities in which they
live and work, thereby helping to improve the lives of those
people
who use our services every day.
dedicated
Clockwise,from top: Mervat Ayad, Cytogenetics Laboratory Manager, Nichols Institute; Brian Wade, Systems Analyst, Clinical Studies Center, San
Juan Capistrano; Jose Martinez, Customer Service Rep, Nichols Institute; Joan Zou, Forensic Certifier, San Diego; Nina Green, Operations Leader,
San Diego; Maria Ortega, Project Manager, Lab Operations, Teterboro; Phil McGill, Shipping and Receiving Supervisor, San Diego; Clarence Johnson,
Courier, Denver; Estela Comba, Lab Support Supervisor, Nichols Institute; and Sylvia Harrison, Courier, San Diego.
8 9

9. Most medical care decisions simply are not made without
laboratory test results. The thousands of different clinical tests
we perform help doctors and large health care organizations
diagnose, treat and monitor the health of patients. In 1998,
some of the biggest buyers of health care services entrusted
their patients to our care—household names like Johns
Hopkins Health System, Oxford Health Plans, Premier Inc.,
Sutter Health, Unity Health and UPMC Health System
(formerly University of Pittsburgh Medical Center). Why did
these demanding customers partner with Quest Diagnostics?
First and foremost, because they have confidence that our
quality is second to none. (It is no coincidence that our
Nichols Institute was the first laboratory in North America to
receive ISO 9001 quality process certification.) Our expert
medical staff is on call for consultations to help treating
physicians diagnose their most difficult cases—24 hours a day,
365 days a year. Our courier service helps hospital partners
reduce overall turnaround time for outpatient testing, giving
doctors and their patients precious time to consider more
patients treatment options. Every patient expects and deserves the
best medical care. Quest Diagnostics provides a vital link.
improving the health of
Clockwise, from top: Ellen Simonson, Customer Service Technical Representative, Denver; Jayshri Kapadia, Client Services, Teterboro;
Tess Eusebio, Clinical Toxicology Supervisor, Teterboro; Ralph J. Partridge, Jr., Inventory Control Clerk, Billing Data Entry, Horsham;
Amy Verrinder, Sales Support Specialist, San Diego; Raymond Gambino, M.D., Chief Medical Officer Emeritus, Teterboro; Brenda Ellison, Data Entry
Operator, Histology, Horsham.
10 11

10. Knowledge plus experience yields insights. We offer insights
that improve patient care in a variety of ways. At the world-
renowned Nichols Institute, our specialty laboratory and
research and development center, insights emerge from our
review of a steady stream of cases that are rarely seen anywhere
else. Nichols Institute is the “laboratory’s laboratory,” drawing
unusual cases not only from Quest Diagnostics’ own network,
but also from hospital labs and other independent labs. At
Quest Informatics, insights come from our ability to detect
patterns in vast databases containing hundreds of millions
of ordinary test results. Managed care providers and
pharmaceutical companies use this valuable information
resource to identify patients at risk for certain diseases
for early treatment. Our insights enable us to help bring
patients the benefits of new technology. Since the 1970s,
Nichols Institute has been a leader in tests for breast tumor
markers—tests not only to diagnose disease, but to help
physicians manage therapy by predicting a patient’s response
to a given treatment. In 1998, Quest Diagnostics became the
first national laboratory to offer the HercepTest assay,
approved by the FDA to identify women who are likely to
insights
through unsurpassed diagnostic
benefit from Herceptin, a new monoclonal antibody therapy
for metastatic breast cancer developed by Genentech, Inc.
Clockwise, from top: Michael Samoszuk, M.D., Medical & Scientific Director, Oncology, Nichols Institute; Michael Lewinski, Ph.D., Scientific Director,
Infectious Diseases, Nichols Institute; Delbert Fisher, M.D., Chief Science Officer, Nichols Institute; Avelino Diao, Molecular Microbiology Lab Supervisor,
Nichols Institute Reference Laboratory; Raj Pandian, Ph.D., Science Leader, Nichols Institute Reference Laboratory; Scott Todd, Human Resources Manager,
Nichols Institute; Salli Schwartz, Supervisor, Referral Testing, Horsham; Geoffrey Gottlieb, M.D., Dermatopathologist, Teterboro; and Candice Miller, Quest
12 13
Informatics Business Leader.

11. Board of Directors Executive Officers Major Facilities
Kenneth D. Brody Kenneth W. Freeman Regional Laboratories:
Founding Partner Chairman and
San Diego, California
Winslow Partners LLC Chief Executive Officer
Wallingford, Connecticut
Washington, District of Columbia
Denver, Colorado
Surya N. Mohapatra, Ph.D.
Deerfield Beach, Florida
Senior Vice President
William F. Buehler
Wood Dale, Illinois
Vice Chairman Chief Operating Officer
Baltimore, Maryland
Xerox Corporation
James D. Chambers Cambridge, Massachusetts
Stamford, Connecticut
Senior Vice President Auburn Hills, Michigan
Chief Growth Officer
Van C. Campbell Lincoln, Nebraska
Vice Chairman Teterboro, New Jersey
Gerald C. Marrone
Corning Incorporated Portland, Oregon
Senior Vice President
Corning, New York Horsham, Pennsylvania
Chief Information Officer
Pittsburgh, Pennsylvania
Mary A. Cirillo
Irving, Texas
Kurt R. Fischer
Executive Vice President
Vice President Nichols Institute
Managing Director
Human Resources San Juan Capistrano, California
Bankers Trust Company
New York, New York Robert A. Hagemann Nichols Institute Diagnostics
Vice President San Juan Capistrano, California
Kenneth W. Freeman
Chief Financial Officer
Chairman and Patient Service Centers located
Chief Executive Officer Bernard L. Kasten, M.D. across the United States
Quest Diagnostics Incorporated Vice President For the center nearest you, please call:
Teterboro, New Jersey Chief Laboratory Officer 1-800-225-7483 or visit our web site:
www.questdiagnostics.com
Dan C. Stanzione, Ph.D. Raymond C. Marier
President of Bell Laboratories, Vice President Affiliated Equity Ventures
Executive Vice President and General Counsel (% ownership):
Chief Operating Officer
C. Kim McCarthy Associated Clinical Laboratories (54%)
Lucent Technologies Incorporated
Vice President Erie, Pennsylvania
Murray Hill, New Jersey
Government Relations and Services Partners: Hamot Health
Gail R. Wilensky, Ph.D. Foundation, Saint Vincent Health
Alister W. Reynolds
John M. Olin Senior Fellow Center
Vice President
Project HOPE
Strategic Planning Quest Diagnostics Venture LLC (51%)
Bethesda, Maryland
Pittsburgh, Pennsylvania
Paul J. Traina
Partner: UPMC Health System
Vice President
(formerly known as University of
Compliance
Pittsburgh Medical Center)
David M. Zewe
Quest Diagnostics of Missouri LLC (51%)
Vice President
St. Louis, Missouri
Sales
Partner: Unity Health
Sonora Quest Laboratories LLC (49%)
Phoenix, Arizona
Partner: Samaritan Health System
National Imaging Associates (27%)
Saddle River, New Jersey
Home Access Health Corporation (13%)
Hoffman Estates, Illinois
14

12. Investor Information For the hearing impaired, Harris Quest Diagnostics requires that all
Bank has a Telecommunications employees abide by these laws, rules
Device for the Deaf (TDD) and regulations and provides annu-
Common Stock
telephone. The listing is Harris al compliance training for all
Shares in Quest Diagnostics
Bank Hearing Impaired Telephone: employees. Quest Diagnostics is
Incorporated (ticker symbol:
TDD 312-461-5633. committed to protecting the health
“DGX”) are listed on the New York
and safety of its employees as well as
Stock Exchange. Options on Quest
Report change of address to
the environmental resources of the
Diagnostics shares are traded on the
Harris Bank at the above address.
communities in which it operates.
Chicago Board Options Exchange.
Quest Diagnostics does not pay any
The Raymond Gambino
Corporate Headquarters
dividends on common stock.
Quality Award
One Malcolm Avenue
The purpose of the Raymond
Teterboro, New Jersey 07608 ‘Safe Harbor’ Statement under the Private
Gambino Quality Award is to
Telephone: 201-393-5000 Securities Litigation Reform Act of 1995
encourage and recognize quality
The statements in this Annual
Annual Meeting excellence within Quest
Report which are not historical facts
The next annual meeting of share- Diagnostics. The award is named
Produced by Quest Diagnostics’ Corporate Communications Department; Design: Q. Cassetti; Photography: Ed Wheeler, Fred Smith and Associates; Printing: Daniels Printing
or information are forward-looking
holders is scheduled to be held in for Quest Diagnostics’ distinguished
statements. These forward-looking
late June, 1999 in New York City. A Chief Medical Officer Emeritus
statements involve risks and uncer-
proxy statement is expected to be whose long career includes service
tainties that could cause the out-
mailed to shareholders during May, as Director of Laboratories and
come to be materially different.
1999. Chief Pathologist at St. Luke’s-
Certain of these risks and uncertain-
Roosevelt Hospital in New York City
ties are listed in the 1998 Form 10-K
Additional Information
as well as a tenured professorship of
Annual Report. These risks and
All inquiries should be addressed
pathology at the Columbia
uncertainties include heightened
to: Investor Relations Department
University College of Physicians and
competition, impact of changes
Quest Diagnostics Incorporated
Surgeons.
in payor mix, adverse actions by
One Malcolm Avenue
governmental and other third-party
Teterboro, New Jersey 07608 1998 Recipients:
payors, the impact upon Quest
Telephone: 201-393-5030 Denver, Colorado
Diagnostics’ collection rates or
Horsham, Pennsylvania
Annual Report on Form 10-K general or administrative expenses
San Diego, California
A copy of the Quest Diagnostics resulting from compliance with
1998 Annual Report on Form 10-K, 1998 Challenger:
Medicare administrative policies,
filed with the Securities and Cambridge, Massachusetts
adverse results from pending
Exchange Commission, is contained governmental investigations,
in this Annual Report, starting after reduction in tests ordered by exist-
page 14. Additional copies are ing customers, material increases in Trademarks
available without charge by contacting premiums for insurance coverage, QUEST, QUESTNET, QUEST DIAGNOSTICS
the Investor Relations Department. and the associated Logo are trade/servicemarks
denial of licensure, computer or
of Quest Diagnostics Incorporated. QUICK-
other system failures, development
Internet Access STREP and CHEM-SCREEN are registered ser-
of technologies that substantially vicemarks of CLMP, INC. SMARTECH is a trade-
Corporate news releases, our annual
mark of CLMP, Inc. NICHOLS INSTITUTE is a
alter the practice of medicine and
report, Forms 10-K and 10-Q and servicemark and NICHOLS ADVANTAGE is a
changes in interest rates.
other information about the trademark of Quest Diagnostics Incorporated.
QUICK-INTRAOPERATIVE and QUICK-PAK are
company are available through Compliance trademarks of Nichols Institute Diagnostics, Inc.
Quest Diagnostics’ web site on the Quest Diagnostics is committed to QUEST INFORMATICS is a servicemark of
Internet: Quest Diagnostics Incorporated.
the highest ethical standards and
http://www.questdiagnostics.com complying with all applicable laws
HercepTest is a trademark of Dako Corporation.
and regulations that govern its Herceptin is a trademark of Genentech, Inc.
Transfer Agent and Registrar
business operations, including those
Harris Trust and Savings Bank Neither this report nor any statement
that apply to reimbursement for
311 West Monroe Street contained herein is furnished in connection with
testing under the federal Medicare any offering of securities or for the purpose of
Chicago, Illinois 60606
and Medicaid programs. promoting or influencing the sale of securities.
Telephone: 312-461-6001
15

13. Quest Diagnostics Incorporated
One Malcolm Avenue
Teterboro, New Jersey 07608
www.questdiagnostics.com
Annual Report without 10K: MI0532
Annual Report: MI0533
16