Affymetrix (AFFX)

GOODWILL IMPAIRMENT CHARGES (in thousands, except percentage amounts)

        SFAS 142 requires that goodwill be assessed for impairment at least annually or whenever changes in circumstances indicate that the carrying amount may not be recoverable from estimated future cash flows. Factors that may be considered a change in circumstance indicating the carrying value of our intangible assets, including goodwill, may not be recoverable include, but are not limited to, significant underperformance relative to historical or projected future operating results, a significant decline in our stock price and market capitalization, and negative industry or economic trends.

        We performed our required annual impairment test in June 2008 and determined that goodwill was not impaired. During the third quarter of 2008, our stock price fell below our net book value per share. The stock price decline, along with other conditions in our business such as decreases in our actual revenues as compared to our forecasted revenues and additional restructuring activities, are defined as indicators of impairment of goodwill and other intangibles under SFAS 142. Accordingly, we were required to assess whether or not an impairment of our intangible assets, including goodwill, had occurred. We performed an interim impairment assessment using a market based approach as of September 30, 2008 and determined that there was no impairment.

        The continued decline of our stock price in the fourth quarter of 2008 and the resulting book value per share being in excess of market value per share, along with other conditions in our business as noted above, were indicators that it was more likely than not that our fair value was less than the carrying value. We performed an interim impairment assessment using a market based approach as of December 31, 2008 and determined that the carrying amount of our goodwill was not recoverable and recorded an impairment charge of $239.1 million which was presented as "Goodwill impairment charges" in the Company's Consolidated Statements of Operations.

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GOODWILL IMPAIRMENT CHARGES (in thousands, except percentage amounts)

        SFAS 142
requires that goodwill be assessed for impairment at least annually or whenever changes in circumstances indicate that the carrying amount may not be recoverable from
estimated future cash flows. Factors that may be considered a change in circumstance indicating the carrying value of our intangible assets, including goodwill, may not be recoverable include, but are
not limited to, significant underperformance relative to historical or projected future operating results, a significant decline in our stock price and market capitalization, and negative industry or
economic trends.

        We
performed our required annual impairment test in June 2008 and determined that goodwill was not impaired. During the third quarter of 2008, our stock price fell below our net book
value per share. The stock price decline, along with other conditions in our business such as decreases in our actual revenues as compared to our forecasted revenues and additional restructuring
activities, are defined as indicators of impairment of goodwill and other intangibles under SFAS 142. Accordingly, we were required to assess whether or not an impairment of our intangible
assets, including goodwill, had occurred. We performed an interim impairment assessment using a market based approach as of September 30, 2008 and determined that there was no impairment.

        The
continued decline of our stock price in the fourth quarter of 2008 and the resulting book value per share being in excess of market value per share, along with other conditions in
our business as noted above, were indicators that it was more likely than not that our fair value was less than the carrying value. We performed an interim impairment assessment using a market based
approach as of December 31, 2008 and determined that the carrying amount of our goodwill was not recoverable and recorded an impairment charge of $239.1 million which was presented as
"Goodwill impairment charges" in the Company's Consolidated Statements of Operations.

45

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