Jefferies Healthcare Conference




                       June 24, 2008
Safe Harbor Disclaimer
•This presentation may contain forward-looking statements. Readers are cautioned
not to place undue...
Who is Quest Diagnostics?
•Leader in Providing Healthcare Insights and Solutions
• Comprehensive Diagnostic Testing
    • ...
The Leader in Diagnostic Testing

      • U.S. Diagnostic Testing Market: >$45 B




                      $ in millions

...
Consistently Strong Growth

• #11 Fortune 500 Ranking: 10-year Total Shareholder Return



                               ...
Favorable Industry Trends

  Essential Healthcare Service

• Growing and Aging Population

• Scientific & Medical Innovati...
Moving to Higher Growth,
                              Higher Margin Segments

     2000 Revenue                  2007 Pro...
Expanding Market Leadership
                                                              2008
                           ...
Our Goals

•Undisputed World Leader in Diagnostic Testing,
 Information and Services

•Profitably Grow > Industry Rate

•E...
Strategy to Drive Profitable Growth

Sustainable Competitive Advantage

Deliver Superior Patient Experience
Continuously D...
Leading Medical Innovator

Broadest Product and Service Offering
Multiple Channels to Access New Technology
   Internal De...
Unparalleled Assets and Capabilities




                         Patients | Growth | People


                           ...
Reducing Costs by $500 Million

Leverage Lean Six Sigma to Improve Efficiency

 Streamline Lab Operations

 Optimize Logis...
2008 / 2009 Focus

  Margin Expansion and Earnings Growth


• Drive Top-Line Growth

• Integrate AmeriPath

• Reduce Costs...
Building on Strength

Industry Leader in a Vital and Growing Industry
A History of Disciplined Growth
Track Record of Succ...
Patients | Growth | People


                             16
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quest diagnostics Jefferies_Conf_6_24_08

  1. 1. Jefferies Healthcare Conference June 24, 2008
  2. 2. Safe Harbor Disclaimer •This presentation may contain forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date that they are made and which reflect management's current estimates, projections, expectations or beliefs and which involve risks and uncertainties that could cause actual results and outcomes to be materially different. Risks and uncertainties that may affect the future results of the Company include, but are not limited to, the competitive environment, changes in government regulations, changing relationships with customers, payers, suppliers and strategic partners and other factors discussed in “Business” in Part I, Item 1, “Risk Factors” and “Cautionary Statement for Purposes of the ‘Safe Harbor’ Provisions of the Private Securities Litigation Reform Act of 1995” in Item I, Part 1A, “Legal Proceedings” in Part I, Item 3, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 and “Quantitative and Qualitative Disclosures About Market Risk” in Part II, Item 7A in the Quest Diagnostics 2007 Annual Report on Form 10-K and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Quantitative and Qualitative Disclosures About Market Risk” in the Company’s 2008 Quarterly Reports on Form 10-Q and other items throughout the Form 10-K and the Company’s 2008 Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. A copy of this presentation is available on Patients | Growth | People our website at www.questdiagnostics.com 2
  3. 3. Who is Quest Diagnostics? •Leader in Providing Healthcare Insights and Solutions • Comprehensive Diagnostic Testing • Routine ——» Esoteric Diagnose • Monitor • Predict • Prevent • –Advanced Information Technology Solutions • Improve Care and Efficiency –Facilitate Introduction of New Therapeutics • Clinical Trials Testing –Innovative Diagnostic Products • Enable Care Closer to the Patient –Risk Assessment Solutions to Life Insurance Industry Touching Patients ~150 Million Times Each Year Patients | Growth | People 3
  4. 4. The Leader in Diagnostic Testing • U.S. Diagnostic Testing Market: >$45 B $ in millions Patients | Growth | People Source: Washington G-2 Reports and company information 4
  5. 5. Consistently Strong Growth • #11 Fortune 500 Ranking: 10-year Total Shareholder Return 18% Revenue 1999-2007 10-year CAGR 18% 25% EPS 1999-2007 10-year CAGR 25% Patients | Growth | People Fortune Ranking based on years 1997-2006 5
  6. 6. Favorable Industry Trends Essential Healthcare Service • Growing and Aging Population • Scientific & Medical Innovations • Personal Interest in Health • Convergence of Information Influences >70% of Healthcare Decisions Patients | Growth | People 6
  7. 7. Moving to Higher Growth, Higher Margin Segments 2000 Revenue 2007 Pro Forma Revenue Total Revenue: $3.4 Billion Total Pro Forma Revenue: $7.0 Billion Patients | Growth | People 7
  8. 8. Expanding Market Leadership 2008 2000 • Clinical Testing • • • Gene-based & Esoteric Testing • • • Employer Services • • • Anatomic Pathology Testing •P • • Risk Assessment Services •- • • Healthcare Information Technology •- • • Point of Care (Near Patient) Testing •- • • Clinical Trials Testing •P •P • International Market •- •P Overall Market Leader/Niche Leadership P Market Participant Patients | Growth | People 8
  9. 9. Our Goals •Undisputed World Leader in Diagnostic Testing, Information and Services •Profitably Grow > Industry Rate •Expand Operating Income to 20% •Expand International Operations to ~10% of Revenues Patients | Growth | People 9
  10. 10. Strategy to Drive Profitable Growth Sustainable Competitive Advantage Deliver Superior Patient Experience Continuously Drive Six Sigma Quality Lead in Medical Innovation/Information Leverage Unparalleled Assets & Capabilities Expand Diagnostic Scope Expand Geographic Reach Patients | Growth | People 10
  11. 11. Leading Medical Innovator Broadest Product and Service Offering Multiple Channels to Access New Technology Internal Development – Nichols Institute Joint Development Relationships Licensing/Distribution Relationships Most Comprehensive Test Menu Leader in Cancer, CVD & Infectious Disease Testing Pioneer in Molecular Diagnostics, LC-MS/MS & Micro-array Leading Experts for Medical Consultation 900 MDs & PhDs >30 Academic Associates Unmatched Medical & Technical Expertise Patients | Growth | People 11
  12. 12. Unparalleled Assets and Capabilities Patients | Growth | People 12
  13. 13. Reducing Costs by $500 Million Leverage Lean Six Sigma to Improve Efficiency Streamline Lab Operations Optimize Logistics Routes and PSC Resources Improve Billing and Call Center Operations Leverage Purchasing Capabilities Maintain Service Levels & Stimulate Growth Patients | Growth | People 13
  14. 14. 2008 / 2009 Focus Margin Expansion and Earnings Growth • Drive Top-Line Growth • Integrate AmeriPath • Reduce Costs by $500 Million • Expand International and Products Businesses Excellence in Execution Patients | Growth | People 14
  15. 15. Building on Strength Industry Leader in a Vital and Growing Industry A History of Disciplined Growth Track Record of Successfully Integrating Acquisitions Strong Cash Generator Proven Management Team Uniquely Positioned with Unparalleled Assets & Capabilities Focused on Execution Patients | Growth | People 15
  16. 16. Patients | Growth | People 16

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