---

•	Strong Q4 volume drives sales of $1.5 billion

•	Diluted Q4 EPS of $1.39; Adjusted Q4 EPS of $1.65

•	Q4 Operating Cash Flow of approximately $214 million

•	Q4 Free Cash Flow of approximately $167 million

•	Announces Project LaunchPad, its enterprise-wide business process improvement initiative

•	2015 Adjusted EPS guidance of $7.35 - $7.70, inclusive of Covance as of February 19, 2015

---

•	Acquired Covance, an industry leading comprehensive drug development company, for approximately $5.7 billion, net of cash acquired;

•	Acquired LipoScience, a premier esoteric laboratory focused on personalized diagnostics for cardiovascular and metabolic disorders, for approximately $85.3 million;

•	Announced Project LaunchPad, its enterprise-wide business process improvement initiative, which is expected to achieve net savings in excess of $150 million over the next three years;

•	Launched Enlighten Health Genomics’ ExomeReveal, a service that provides genome-wide interpretation for children with serious childhood genetic diseases as well as additional diagnostic information for patients of any age through Next-Generation Sequencing technology;

•	Continued the commercial roll-out of the Beacon LBS program, providing physicians with point of care decision support to assist in test and lab selection;

•	Raised approximately $3.9 billion in long-term debt to finance the Covance acquisition; and

•	Secured a new $1 billion, five-year revolving credit facility providing financial flexibility.

---

•

Total revenue growth (assuming foreign exchange rates effective as of January 31, 2015) of approximately 40% to 44%, after adjusting for approximately 160 basis points of negative currency impact. Revenue growth in the clinical laboratory business of approximately 3% to 5%. Revenue growth in the Covance business of approximately 4% to 6% (versus full year 2014 revenue), after adjusting for approximately 330 basis points of negative currency impact.

•	Adjusted EPS of $7.35 to $7.70, an increase of approximately 8% to 13% versus the prior year, which includes accretion of approximately $0.35 to $0.40 to earnings in 2015 from the acquisition of Covance. The Company expects to have approximately 102 million total weighted-average shares outstanding in 2015, after issuing approximately 15.3 million shares for the Covance transaction.

•	Operating cash flow of $1,075 million to $1,100 million, with capital expenditures between $325 million and $350 million. As a result, free cash flow is between $725 million and $775 million, an increase from $536 million in 2014. Free cash flow in 2015 is burdened by approximately $90 million of net non-recurring items related to the Covance acquisition.

---

•	Free cash flow will be used to pay down debt and for tuck-in acquisitions. The Company has temporarily suspended its share repurchase program until it approaches its target leverage ratio of 2.5 times debt to EBITDA.

•	The Company paid approximately $5.7 billion for Covance, net of cash acquired. To finance the acquisition, the Company raised approximately $3.9 billion in long-term debt, and issued approximately 15.3 million shares of LabCorp common stock to Covance shareholders.

•	The $3.9 billion of acquisition-related debt has a weighted-average maturity of approximately 12 years and a blended interest rate of approximately 3.2%.

•	The Company expects cost synergies from business optimization, corporate overhead and purchasing and logistics in excess of $100 million within three years, with associated one-time costs of approximately $50 million. The Company expects synergies in 2015 of approximately $35 million, with associated one-time costs of approximately $20 million.

•	Project LaunchPad will re-engineer the Company’s systems and processes, leverage technological advancements, create a sustainable, more efficient business model, and improve the experience of all stakeholders.

•	The Company expects this initiative to drive net savings in excess of $150 million over the next three years, with associated one-time costs of approximately $30 million. The Company expects net savings from this initiative in 2015 of approximately $50 million, with associated one-time costs of approximately $15 million.

---

---

---

---

---

---

1)	During the fourth quarter of 2014, the Company recorded net restructuring and special items of $2.4 million. The charges included $0.7 million in severance and other personnel costs along with $1.7 million in facility-related costs associated with facility closures and general integration initiatives.

2)

During the fourth quarter of 2013, the Company recorded net restructuring and other special charges of $4.0 million. The charges consisted of $3.6 million in severance related liabilities and $0.7 million in net costs associated with facility closures and general integration initiatives; partially offset by the reversal of previously established reserves of $0.3 million in unused facility-related costs.  The after tax impact of these charges decreased net earnings for the three months ended December 31, 2013, by $2.5 million and diluted earnings per share by $0.03 ($2.5 million divided by 88.3 million shares).

3)

The Company continues to grow the business through acquisitions and uses Adjusted EPS (excluding restructuring, special items and amortization) as a measure of operational performance, growth and shareholder returns. The Company believes adjusting EPS for these items provides investors with better insight into the operating performance of the business. For the quarters ended December 31, 2014 and 2013, intangible amortization was $15.4 million and $21.4 million, respectively ($9.5 million and $13.2 million net of tax, respectively) and decreased EPS by $0.11 ($9.5 million divided by 86.2 million shares) and $0.15 ($13.2 million divided by 88.3 million shares), respectively. For the years ended December 31, 2014 and 2013, intangible amortization was $76.7 million and $81.7 million, respectively ($47.3 million and $50.3 million net of tax, respectively) and decreased EPS by $0.55 ($47.3 million divided by 86.4 million shares) and $0.55 ($50.3 million divided by 91.8 million shares), respectively.