Beckman Coulter (BEC)

Fair Value of Financial Instruments

The Diagnostic Systems Business’ financial instruments include cash and cash equivalents, accounts receivable, loan receivable, derivative instruments, accounts payable and notes payable. The carrying amounts of cash and cash equivalents, accounts receivable, loan receivable, accounts payable, and notes payable approximates the fair values of these instruments.

As of March 31, 2009, Diagnostics held derivative financial instruments that are required to be measured at fair value on a recurring basis. The fair value is determined based on current quotes from financial institutions. The following table presents information about financial instruments measured at fair value on a recurring basis at March 31, 2009, and indicates the level in the fair value hierarchy of the valuation technique we utilize to determine such fair value:

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DIAGNOSTIC SYSTEMS BUSINESS

(A Division of Olympus Corporation)

Notes to Combined Abbreviated Financial Statements

March 31, 2009

Fair Value of Financial Instruments

The carrying values of our financial instruments approximate their fair value at December 31, 2008 and 2007, except for long-term debt (see Note 9 “Debt Financing”). Management estimates are used to determine the market value of cash and cash equivalents, trade and other receivables, notes payable, accounts payable and amounts included in other current assets, other assets and accrued expenses meeting the definition of a financial instrument. Concentrations of credit risk with respect to receivables are limited due to the large number of customers and their dispersion across worldwide geographic areas. Quotes from financial institutions are used to determine market values of our debt and derivative financial instruments. The carrying value and fair value of our long-term debt at December 31, 2008 was $900.7 million and $876.9 million, respectively. The carrying value and fair value of our long-term debt at December 31, 2007 was $901.4 million and $1,009.5 million, respectively.

Table of Contents

Notes to Consolidated Financial Statements (Continued)

(tabular dollar amounts in millions, except amounts per share)

Fair Value of Financial Instruments

The carrying values of our financial instruments approximate their fair value at December 31, 2007 and 2006, except for long-term debt (see Note 8 “Debt Financing”). Management estimates are used to determine the market value of cash and cash equivalents, trade and other receivables, notes payable, accounts payable and amounts included in other current assets, other assets and accrued expenses meeting the definition of a financial instrument. Concentrations of credit risk with respect to receivables are limited due to the large number of customers and their dispersion across worldwide geographic areas. Quotes from financial institutions are used to determine market values of our debt and derivative financial instruments. The carrying value and fair value of our long-term debt at December 31, 2007 was $901.4 million and $1,009.5 million, respectively. The carrying value and fair value of our long-term debt at December 31, 2006 was $961.3 million and $990.7 million, respectively.

Fair Value of Financial Instruments

Fair Value of Financial Instruments

The carrying values of the Company’s financial instruments approximate their fair value at December 31, 2006 and 2005, except for long-term debt (see Note 8 “Debt Financing”). Management estimates are used to determine the market value of cash and cash equivalents, trade and other receivables, notes payable, accounts payable and amounts included in other current assets, other assets and accrued expenses meeting the definition of a financial instrument. Concentrations of credit risk with respect to receivables are limited due to the large number of customers and their dispersion across worldwide geographic areas. Quotes from financial institutions are used to determine market values of the Company’s debt and derivative financial instruments. The carrying value and fair value of the Company’s long-term debt at December 31, 2006 was $961.3 million and $990.7 million, respectively. The carrying value and fair value of the Company’s long-term debt at December 31, 2005 was $696.1 million and $734.8 million, respectively.