First Quarter 2005

1
First Quarter 2005 Earnings Conference Call
April 28, 2005
2
Safe Harbor Provision

• This presentation contains forward-looking
  statements made in reliance upon the safe harbor
  provisions of the Private Securities Litigation
  Reform Act of 1995. Forward-looking statements
  include, but are not limited to, the Company's
  views on future commercial revenues, market
  growth, capital requirements, new product
  introductions, and are generally identified by
  phrases such as thinks, anticipates,
  believes, estimates, expects, intends,
  plans, and similar words. Forward-looking
  statements are not guarantees of future
  performance and are inherently subject to
  uncertainties and other factors which could cause
  actual results to differ materially from the
  forward-looking statement. These statements are
  based upon, among other things, assumptions made
  by, and information currently available to,
  management, including management's own knowledge
  and assessment of the Company's industry,
  competition and capital requirements. Other
  factors and uncertainties that could affect the
  Company's forward-looking statements include,
  among other things, the following the acceptance
  by customers of our new iQ200 product platform,
  our substantial expansion of international sales
  and our reliance on key suppliers, the potential
  need for changes in long-term strategy in
  response to future developments future advances
  in diagnostic testing methods and procedures, as
  well as potential changes in government
  regulations and healthcare policies, both of
  which could adversely affect the economics of the
  diagnostic testing procedures automated by the
  Company's products rapid technological change in
  the microelectronics and software industries and
  increasing competition from imaging and
  non-imaging based in-vitro diagnostic products.
  The Company refers interested persons to its most
  recent Annual Report on Form 10-K and its other
  SEC filings for a description of additional
  uncertainties and factors that may affect
  forward-looking statements. The Company assumes
  no duty to update its forward-looking statements.

3
Quarterly Revenue Growth
(in thousands)
2003
2004
2005
4
Revenue Growth by Product Line
Iris Diagnostics
StatSpin
2003 2004
2005
2003 2004
2005
Diagnostics Instruments
Diagnostics Consumables Service
2003 2004
2005
2003 2004
2005
5
Operating Income (K)
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Q2 Q3 Q4 Q1
2002
2003
2004
2005
6
First Quarter 2005 Earnings Conference Call
Key Financial Data April 28, 2005
7
FIRST QUARTER RESULTS
Q1 Record Earnings 1.3M .08/sh (.07
diluted) vs . .5M .04/sh
(.04 diluted)(Q1-04)
100 iQ200s SOLD in Q105
8
REVENUE DISTRIBUTION
Q1 2005
Q1 2004
StatSpin Devices
StatSpin Devices
17
Consumables and Service
21
Consumables and Service
Royalty
2.3M
2.0M
2
41
50
0.2M
IVD Instruments
IVD Instruments
4.7M
5.7M
27
42
2.5M
5.9M
REVENUE 9.4M
REVENUE 14.0M
9
REVENUE BREAKDOWN(000s omitted)
10.1M
7.7M
28
3.9M
18
1.7M
10
CONSOLIDATED GROSS PROFIT
(MM)
49
50
59
61
40
50
49
27
11
DIAGNOSTICS DIVISION
(MM)
49
50
36
43
14
7
12
STATSPIN SUBSIDIARY
(MM)
50
49
28
28
22
21
13
OPERATING EXPENSES
(MM)
35
40
17
16
10
13
8
12
14
First Quarter 2005 Earnings Conference Call
Management Discussion April 28, 2005
15
New Diagnostics Products

• iQ?200 Sprint shipments initiated
• SW 3.0 shipments initiated
• Body Fluids FDA Cleared
• New hybrid technology platform in process

16
Growth Plan

• Selective Acquisitions
• Tangential products feeding our distribution
  channels
• Synergistic opportunities
• Leverage Financial Resources (cash, stock debt)

17
Market Expansion
Iris Global Sales Scenario Today
HospitalLaboratory
97 of Sales
CommercialReference Laboratory
3 of Sales
18
Organic Growth Plans

• New market segments
• Reference labs, alternate care sites,etc.
• New applications (body fluids)
• Deeper penetration into the traditional segments
  (hospitals)
• Gradually increasing domestic sales force
• Stronger international product portfolio

19
Market Expansion
Larger Market Potential Complete Urinalysis
20
Acquisition of Urine Chemistry (Strip) Product
Line
UrinQuick
UrinChek
21
Acquisition of Urine Chemistry (Strip) Product
Line

• Core technology acquired
• Patents Know-how
• Product Designs
• Other assets
• Manufacturing Assets
• Strip manufacturing facility in Germany
• Instrument production tooling
• Inventory
• Customer Base

22
Acquisition of Urine Chemistry (Strip) Product
Line

• Fills IRIS Market Gap
• Addresses market need for a more integrated
  solution to compete in international tenders
• Addressable Market
• 8,000 sites, excluding US and Japan
• 250 MM in annual sales
• Opportunity to sell beyond the hospital and lab
  segments
• physicians office lab(POL), veterinary, alternate
  care sites

23
Sales of iQ200/AX-4280 Systemvs. Standalone
iQ200 Analyzers
The Power of the Combined System Needed Outside
the U.S.
24
Acquisition Urine Chemistry Strip Business

• International Strategy
• Improve performance of UrinQuick instrument
• Develop software connectivity UrinQuick to
  iQ200 Analyzer.
• Re-launch product Q405 Q106

25
IRIS Strategic Direction
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ADIR

• Licensed implemented 3D Face Capture
  Reconstruction Algorithms
• Tested the first model of 3D image capture system
  - optimization is in process
• Testing in process for the first Face-Matching
  algorithm in process
• Prototype of the access control product by June
  2005

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Revised Guidance

• Revenue growth
• increased to at least 35 from at least 25
• Earnings per share
• From at least 0.30 to 0.30 - 0.35
• 2006 Guidance to be issued with Q205 earnings
  announcement.

28
Thank You