Acquires New Platform to Enter Low to Mid-Multiplex Markets

SANTA CLARA, Calif.–(EMWNews)–Affymetrix Inc., (Nasdaq:AFFX) today reported its operating results for

the second quarter of 2008. Total revenue for the quarter was $86.9

million, as compared to total revenue of $88.3 million in the second

quarter of 2007.

Product revenue was $75.0 million, which consists of array and reagent

revenue of $68.9 million and instrument revenue of $6.1 million. Service

revenue was $9.0 million, and royalties and other revenue were $2.9

million for the second quarter of 2008. This compares to second quarter

2007 product revenue of $68.4 million. Service revenue was $12.0

million, and royalties and other revenue were $7.9 million for the

second quarter of 2007. Affymetrix shipped 22 GeneChip^®

systems in the quarter, bringing its cumulative systems shipped to 1,761

at the end of the second quarter.

The Company reported net loss of approximately $3.6 million or $0.05 per

diluted share in the second quarter of 2008, which includes a pretax

restructuring charge of $0.9 million or $0.01 per diluted share, as

compared to net income of $1.2 million or $0.02 per diluted share in the

second quarter of 2007, which included a pretax restructuring charge of

$1.8 million or $0.03 per diluted share.

Cost of product sales was $32.3 million in the second quarter of 2008

compared to $25.7 million in the same period of 2007. Cost of services

was $6.7 million compared to $10.8 million in the second quarter of

2007. Product gross margin was 57.0 percent in the second quarter of

2008 compared to 62.4 percent in the second quarter of 2007.

Operating expenses were $50.1 million for the second quarter of 2008,

which includes restructuring charges of $0.9 million, as compared to

$54.8 million in the second quarter of 2007, which includes

restructuring charges of $1.8 million.

Updated Financial Outlook for 2008

Due to predicted ongoing weakness in the Company’s pharmaceutical

revenue, the Company now expects 2008 revenue to be in the range of $455

million to $460 million, including a one-time $90 million payment. Total

gross margin is expected to be approximately 65 percent, of which 9

points is expected to be attributable to the one-time $90 million

payment. The Company expects total operating expenses between $262

million to $267 million, including total restructuring charges of

approximately $32 million and acquisition related charges of $21 million.

Operations

• Affymetrix announces its plan to consolidate manufacturing to three

  locations. These manufacturing consolidations are expected to improve

  capacity utilization, increase operational efficiencies and expand the

  Company’s product gross margin.

Acquisitions

• In July, Affymetrix completed an acquisition of a privately held San

  Francisco-based company that develops digitally encoded microparticle

  technology for approximately $25 million in cash. This high

  performance and flexible platform technology will enable the Company

  to enter low to mid-multiplex markets and compete with bead-based

  platforms. In addition, this technology is applicable to the research,

  applied, and diagnostic markets.

Recent Highlights

DNA Analysis

• The Wellcome Trust of Great Britain has awarded Affymetrix the second

  phase of its Case Control Consortium (WTCCC) project. The project will

  analyze the genetic information of 60,000 additional individuals,

  30,000 of them with the Affymetrix Genome-Wide Human SNP Array 6.0,

  plus 6,000 common controls.

• The Company announced that the Republic of Korea’s National Institute

  of Health (NIH) and Center for Disease Control and Prevention is

  expanding the Korean Association Resource project from its original

  10,000 samples to include an additional 13,000 samples, which will use

  the Affymetrix Genome-Wide Human SNP Array 6.0.

• Affymetrix announced that Case Western Reserve University and the

  Translational Genomics Research Institute will run 10,000 samples with

  the Affymetrix Genome-Wide Human SNP Array 6.0 to discover genetic

  pathways associated with diabetic nephropathy.

• The Company announced that the Center for Inherited Disease Research

  (CIDR) has adopted its Genome-Wide Human SNP Array 6.0 for large-scale

  genotyping and copy number projects. CIDR is making Affymetrix-based

  genotyping available to supporting members of the National Institutes

  of Health.

• Affymetrix and LineaGen Inc. announced that a team of prominent

  researchers at the University of Utah and Vanderbilt University are

  leveraging Utah’s deep domain expertise in human genetic research and

  the Affymetrix Genome-Wide Human SNP Array 6.0 to discover genetic

  markers associated with multiple sclerosis and autism.

RNA Analysis

• The Company announced that a team of researchers at the Fraunhofer

  Institute in Germany is using Affymetrix’ Whole Transcript gene

  expression technology to better understand the molecular basis of

  drug-induced liver injury.

Molecular Diagnostics

• Affymetrix and Asuragen Inc., a leading molecular biology diagnostic

  company and service provider, announced an agreement to license,

  develop and manufacture in vitro transcription (IVT) reagent kits for

  molecular diagnostic applications.

• Affymetrix announced that its technology powers the Ipsogen MapQuant Dx™

  Genomic Grade, the first genomic test designed to provide a more

  precise measurement of tumor grade than previous techniques.

Affymetrix’ management team will host a conference call on July 24, 2008

at 2:00 p.m. PT to review its operating results for the second quarter

of 2008. A live webcast can be accessed by visiting the Investor

Relations section of the Company’s website at www.affymetrix.com.

In addition, investors and other interested parties can listen by

dialing domestic: (866) 500-AFFX, international: (706) 643-2771.

A replay of this call will be available from 5:00 p.m. PT on July 24,

2008 until 8:00 p.m. PT on July 31, 2008 at the following numbers:

domestic: (800) 642-1687, international: (706) 645-9291. The passcode

for both replays is 55629576. An archived webcast of the conference call

will be available under the Investor Relations section of the Company’s

website at www.affymetrix.com.

About Affymetrix

Affymetrix GeneChip® microarray technology is

the industry-standard tool for analyzing complex genetic information.

After inventing microarray technology in the late 1980s, Affymetrix

scientists have been dedicated to developing innovative products that

provide researchers with a more complete view of the genome. These

products continue to accelerate genetic research and enable scientists

to develop diagnostics and tailor treatments for individual patients by

identifying and measuring the genetic information associated with

complex diseases.

Today, Affymetrix technology is used by the world’s top pharmaceutical,

diagnostic and biotechnology companies, as well as leading academic,

government and not-for-profit research institutes. More than 1,700

systems have been shipped around the world and more than 12,000

peer-reviewed papers have been published using the technology.

Affymetrix is headquartered in Santa Clara, Calif., and has

manufacturing facilities in Sacramento, Calif., Cleveland, Ohio and

Singapore. The Company has about 1,100 employees worldwide and maintains

sales and distribution operations across Europe and Asia. For more

information about Affymetrix, please visit: www.affymetrix.com.

All statements in this press release that are not historical are

“forward-looking statements” within the meaning of Section 21E of the

Securities Exchange Act as amended, including statements regarding

Affymetrix’ “expectations,” “beliefs,” “hopes,” “intentions,”

“strategies” or the like. Such statements are subject to risks and

uncertainties that could cause actual results to differ materially for

Affymetrix from those projected, including, but not limited to: risk

relating to past and future acquisitions; risks of the company’s ability

to achieve and sustain higher levels of revenue, higher gross margins

and reduced operating expenses; uncertainties relating to technological

approaches, risks associated with manufacturing and product development,

including risks relating to the relocation of a substantial portion of

our manufacturing to Singapore; personnel retention; uncertainties

relating to cost and pricing of Affymetrix products; dependence on

collaborative partners; uncertainties relating to sole-source suppliers;

uncertainties relating to FDA and other regulatory approvals;

competition; risks relating to intellectual property of others and the

uncertainties of patent protection and litigation. These and other risk

factors are discussed in Affymetrix’ Form 10-K for the year ended

December 31, 2007, and other SEC reports, including its Quarterly

Reports on Form 10-Q for subsequent quarterly periods. Affymetrix

expressly disclaims any obligation or undertaking to release publicly

any updates or revisions to any forward-looking statements contained

herein to reflect any change in Affymetrix’ expectations with regard

thereto or any change in events, conditions or circumstances on which

any such statements are based.

PLEASE NOTE:

Affymetrix, the Affymetrix logo and GeneChip are trademarks owned or

used by Affymetrix, Inc.

Note 1: The condensed consolidated balance sheet at December 31, 2007

has been derived from the audited consolidated financial statements at

that date included in the Company’s Form 10-K

for the fiscal year ended December 31, 2007.