Annual Report 2011 At Luminex, we know that uncertainty is the antithesis of scientific and medical success. Whether in a lab, at a hospital or in the field, progress is made when questions are answered. We help shine a light into the darkest areas of biology, to find out what people need to know most. Original Letter to Shareholders 2011 was a year of significant accomplishments for your company. Luminex grew revenue 30% and achieved record operating margins while strengthening our investment in research and development to drive long-term shareholder value. Every day, we apply our passion for innovative solu- tions that transform the way laboratories around the world diagnose patients and answer leading edge life-science questions. This focus on innovation has positioned Luminex as a market pioneer and first-mover, particularly in multiplex assays for targeted molecular and protein based testing, contributing to our ability to generate long term revenue growth above 20%. Our customers need real solutions, especially given the economic turmoil over the past several years. They are constantly searching for ways to achieve more with fewer resources. Luminex has continued to thrive because our products and technologies enable laboratories to save valuable time, sample, and other resources. Whether diagnosing a respiratory virus or researching antibody responses, we help our customers find answers more efficiently so that together we can advance healthcare and science around the world. Our inspiration starts with our customers. We constantly strive to improve and advance the ways that we serve them. “I am inspired to work with such a committed and motivated team that continually challenges the status quo and sets new standards for our industry. I am exceptionally proud of our accomplishments to date and look forward to a strong future ahead.” Original From innovative new products to technical and with our acquisition of EraGen® Biosciences, biothreat market, the increased adoption of support, customers demand and expect solutions which expanded both our product menu and MAGPIX, and the progress we are making on that help them achieve their goals – making technology platform to include MultiCode®, a our assay portfolio with the xTAG Gastrointes- their work easier, faster and more cost-effective. flexible PCR based chemistry. In addition, we are tinal Pathogen Panel and NeoPlex4® newborn Through our unique approach Luminex sets a gaining momentum with the newest addition to our screening assay. We are committed to executing new standard for the way testing is performed. instrument product line, MAGPIX®, and expanding on these and other initiatives to drive long-term No longer are customers limited to generating our global reach to laboratories of all sizes. Although growth and shareholder value. only one answer from one test. With xMAP® we are proud of our accomplishments, we are even Technology, customers can perform up to 500 more excited for the future. I am pleased to work alongside our talented and bioassays at one time, using one sample to dedicated employees. We share a common achieve multiple results. Looking ahead we see incredible opportunity but passion not just to spur innovation and advance recognize that we need to continue to execute science, but also to support our communities We achieved several milestones in 2011. We well. We are investing in your company’s future through participation in causes such as Be The expanded our product portfolio through the launch by strengthening our presence around the globe Match® which raises awareness of the need for of our FDA cleared xTAG® RVP-FAST, our CE and expanding our product lines. In 2012 I am bone marrow donors. Activities like these allow us marked xTAG Gastrointestinal Pathogen Panel, particularly excited about our prospects in the not only to fulfill our mission to improve the quality of life for patients around the world, but to play a crucial role in saving lives. Making a difference is what drives us and sets us apart and why I am grateful to lead this organization. Thank you for your continued confidence, and I and look forward to a bright future for Luminex. Sincerely, Patrick J. Balthrop, Sr. Chief Executive Officer and President Five Year Cumulative Total Return* (among Luminex Corporation, the NASDAQ Composite Index and the NASDAQ Biotechnology Index) Luminex Corporation NASDAQ Composite NASDAQ Biotechnology $180 $160 $140 $120 $100 $80 $60 $40 $20 $0 2006 2007 2008 2009 2010 2011 *$100 invested on 12/31/06 in stock or index, including reinvestment of dividends. Fiscal year ending December 31. PERFORMANCE HIGHLIGHTS LMNX STOCK GAINED 16 P E R C E N T 2011 PERFORMANCE VS. NASDAQ LOSS OF 2% SYSTEM PLACEMENTS 978 INSTRUMENTS 8,678 SYSTEMS SHIPPED THROUGH 2011 EARNINGS $0.34 P E R S H A R E DILUTED EPS INCREASED 183 PERCENT OVER 2010 Revenue Mix 2009 10% 2010 10% 2011 8% 26% 64% 23% 67% 20% 72% Royalty, Consumable and Assay System Other Operating Margin 15% 10% 5% 0% 2008 2009 2010 2011 HIGH-MARGIN ITEMS OPERATING MARGIN OPERATING CASH FLOW 41 P E R C E N T 498 B A S I S P T S . 58 P E R C E N T 2011 INCREASE IN CONSUMABLES, ROYALTIES, ASSAYS 2011 INCREASE OF $12.6 MILLION OPERATING CASH FLOW OF $38.3 MILLION Consumable Revenue ($ in millions) Royalty Revenue ($ in millions) Assay Revenue ($ in millions) 30% CAGR 2007–2011 30% CAGR 2007–2011 44% CAGR 2007–2011 60 40 20 0 19.2 31.7 28.4 40.1 55.5 40 30 20 10 0 10.2 14.9 18.3 22.4 60 29.2 40 20 0 48.7 11.3 18.7 31.0 32.2 2007 2008 2009 2010 2011 2007 2008 2009 2010 2011 2007 2008 2009 2010 2011 Total Revenue ($ in millions) 25.2% CAGR 2007–2011 200 150 100 50 0 184.3 75.0 2007 104.4 2008 120.6 2009 141.6 2010 2011 TOTAL REVENUE UP ASSAY REVENUE UP CONSUMABLE REVENUE UP 30 P E R C E N T TOTAL REVENUE REACHED $184.3 MILLION 51 P E R C E N T 2011 ASSAY REVENUE OF $48.7 MILLION 38 P E R C E N T 2011 REVENUES TOTALED $55.5 MILLION Innovation Innovation is at the heart of everything we do. Our expanding product pipeline is driven by our unwavering commitment to research and development and our strong intellectual property portfolio, which now includes hundreds of issued and pending patents. In addition, our partners continue to invest in our technology and together we provide a significant assay portfolio for research, biothreat and clinical diagnostics, including over 60 FDA cleared products. gastroenteritis has traditionally required multiple tests, and these results have not been available for several days. This has frustrated physicians, increased the cost of healthcare and many patients have been at a higher risk of complications. High risk patients such as young children, the elderly, and immunocompromised individuals suffering from these diseases can substantially benefit from rapid diagnosis and faster therapeutic intervention. The importance of comprehensive testing for gastrointestinal pathogens was high- lighted during the European E. coli outbreak in June 2011. According to WHO 908 people In May, we received CE marking for our new xTAG Gastrointestinal Pathogen Panel (GPP). In a single test, this innovative assay identifies up to 95 percent of the pathogens that cause infectious diarrhea, in less than 5 hours. Our proprietary technology allows for faster turn-around time and simultaneous testing on a single sample, thus enabling laboratories to utilize their time and resources more efficiently. The ability to provide accurate and timely identification of causative pathogens leads to improved patient outcomes and reduced healthcare costs. Achieving definitive differential diagnosis of diarrheal disease and infectious were sickened with hemolytic uremic syn- drome (HUS), a type of kidney failure that is associated with Shiga toxin-producing E. coli, or STEC, infections. There were 50 deaths associated with HUS and thousands of non- HUS cases were identified as people flooded hospitals to determine if they were sick with the highly virulent E. coli strain. “Prior to the release in May 2011 of xTAG GPP, we did not have a test that would allow us to rapidly detect a comprehensive array of disease-causing pathogens for infectious gastroenteritis,” said PD Dr. Frauke Mattner, of Kliniken der Stadt, Institute of Pathology and Institute for Hygiene. “The ability of Infectious gastroenteritis strikes more than two billion people globally each year and is a leading cause of child morbidity and mortality worldwide. Source: World Health Organization A year of achievement Growth Recognition February 2011 Luminex Corporation Ranked One of the 25 Fastest-Growing Technology Companies in America by Forbes for Third Consecutive Year April 2011 Medical Design Excellence Award. Luminex Corporation Wins Prestigious Medical Design Excellence Award for its innovative MAGPIX instrument “We are committed to building technologies that provide innovative healthcare solutions to people around the world and xTAG® GPP is a great example of our efforts.” SEVANA YAGHOUBIAN, M.Sc. DIRECTOR, ADVANCED TECHNOLOGY GROUP LUMINEX CORPORATION xTAG GPP to detect not only several different types of E. coli, but also the presence of the Stx-2 gene, a key marker of this more severe STEC strain, allowed rapid identification of patients suffering from an infection of this outbreak strain. This innovative technology was an important advancement for the laboratory and an invaluable tool in the management of the crisis.” Our gastrointestinal pathogen panel is only one example of our innovative approach. Our xTAG Respiratory Viral Panel (RVP) also allows simultaneous testing of multiple viral pathogens and provides similar benefits for laboratories, patients, and the healthcare system. Additionally, rapid, accurate detection of the causative pathogen helps to reduce overuse of antibiotics which continues to be a growing concern. With our technology and revolutionary products, Luminex is setting a new standard of care for clinical testing. Our passion is to be on the leading edge of diagnostic innovation, to deliver significant advancements over current methods through improved quality, more laboratory efficiency, better patient care and lower overall cost. Innovation May 2011 Luminex receives CE Mark for new xTAG Gastrointestinal Pathogen Panel which simultaneously detects up to 95% of gastrointestinal infections in under five hours Growth 2011 was a successful year for Luminex, highlighted by strong financial performance and growth across our systems, consum- ables, royalties and assays. For the third consecutive year, Forbes named Luminex one of the 25 fastest growing technology companies in America. We continue to expand our instrument footprint with over 8,600 multiplexing analyzers shipped to date. Our newest instrument, MAGPIX, is an important advancement in our goal to create multiplexing solutions for a wide range of applications, geographies, and laboratories of all sizes. MAGPIX received CE IVD mark in Europe in January 2011, and was awarded a prestigious Medical Design Excellence Award in the category of In Vitro Diagnostics. This innovative system can quickly detect and measure proteins or nucleic acids in a variety of sample types by simultaneously performing up to 50 tests per sample, significantly reducing the amount of sample, consumables, and labor required compared to competing systems. In June 2011 we expanded access to MAGPIX through a global sales and distribution agreement “MAGPIX represents a unique platform through which Life Technologies can make its cutting-edge antibody content accessible for a broad range of protein quantitation needs in basic and clinical research.” Peter Dansky, President of Molecular and Cell Biology at Life Technologies with Life Technologies Corporation. This partnership, along with our partnership with EMD Millipore, will help accelerate science and improve the efficiency of disease-related research around the world. Together with our partners we will provide customers with broad access to this innovative instrument as well as an extensive assay portfolio. In addition to partnerships, Luminex is committed to building and growing our market share via organic investment and through strategic acquisitions. In July 2011, we received FDA clearance for xTAG RVP FAST. This new addition to Luminex’s RVP product portfolio brings additional testing options to clinical laboratories looking for a front line assay targeting eight essential respiratory pathogens and delivering up to 96 patient results in a few hours. RVP FAST features a streamlined and scal- able workflow which is important in effec- tively managing fluctuating patient volumes and seasonal spikes typically associated with influenza-like illnesses. In June 2011 Luminex acquired EraGen Biosciences, Inc. further expanding our molecular diagnostic and infectious disease capabilities. Public Health Partnership June 2011 xTAG Gastrointestinal Pathogen Panel from Luminex aids German hospital in management of European E. coli crisis June 2011 Luminex and Life Technologies sign agreement for global distribution of the award-winning MAGPIX® Multiplexing Instrument “Trialling GPP clinically in our lab, we have consistently seen a faster turnaround of results and a 3-fold increase in the number of enteric pathogens detected. I believe GPP could set a new diagnostic standard of practice and be a valuable tool in aiding the infection control management of gastroenteritis in a healthcare setting.” DR. EUGENE HALLIGAN INFECTION MOLECULAR DEVELOPMENT MANAGER GSTS PATHOLOGY, ST. THOMAS’ HOSPITAL, LONDON UNITED KINGDOM The purchase of EraGen Biosciences provides Luminex with access to a highly complementary portfolio of molecular diagnostic assays based on an innova- tive and proprietary chemistry called MultiCode. This unique chemistry is a flexible platform for both real-time poly- merase chain reaction (PCR) and multiplex PCR-based applications. This acquisition is expected to provide growth with additional resources for sales, support, and assay development. With EraGen—now called Luminex Madison—a part of the team, we are further strengthening our leader- ship position and expanding our presence within the molecular diagnostic market. Our customers are our highest priority, whether they are clinical laboratory profes- sionals, academic and biopharma research- ers or biothreat experts. The solutions we develop are designed to make it easier, more cost-effective and efficient to produce results that will help patients and advance healthcare and basic science research. At Luminex we are always mindful of what is important to our customer, and we will continue to innovate and strive to deliver the best solutions to meet their needs. New Possibilities June 2011 Luminex acquires EraGen Biosciences, a private MDx company with proprietary chemistry and focus on infectious and genetic diseases for $34M in cash Looking Forward We are very excited about our future. We believe that continued demand for our pioneering technologies and additional opportunities for strategic growth in new markets and new countries will strengthen our market leadership position worldwide. We are committed to applying our pas- sion for innovation to advance healthcare and research worldwide, and to provide solutions that answer today’s clinical and life-science questions. Innovation drives growth and we are committed to delivering new solutions to meet the needs of our customers. In 2012 we plan to introduce a first of its kind multiplex assay in the newborn screen- ing market building on the relationships established by our important BSD franchise in sample handling. Using a single sample, NeoPlex4 detects and identifies four of the most common analytes required in stan- dard newborn screening testing. Laborato- ries will be able to generate more results in less time, at lower overall cost, all from a single sample, thereby saving precious sample from the baby. We continue to make progress with our biothreat programs across multiple projects. Luminex has been involved with biothreat related activity for some time and we believe the benefits of these investments are approaching fruition. We are excited about the opportunity for our technology to assist in establishing Luminex as a leader in the biothreat arena. In addition to expanding our robust pipeline and our biothreat programs, we intend to further develop international markets in 2012. We are proud to be transforming global healthcare and life-science research through the development, manufacturing, and marketing of innovative proprietary instru- ments and first-of-their-kind assays that advance standards of care and deliver cost- effective and rapid results to clinicians and researchers around the world. We extend our sincere thanks to our loyal customers, employees, partners and shareholders who share our vision for the future. We look forward to keeping you informed on our progress in 2012. We are proud to be transforming global healthcare and life science research through the development, manufacturing, and marketing of innovative proprietary instruments and first-of-their-kind assays that advance standards of care. Expansion Community July 2011 Luminex receives U.S. FDA clearance for xTAG RVP FAST a new front line Respiratory Viral Panel Test October 2011 Luminex joins forces with the national marrow donor program - Be The Match Corporate Officers and Vice Presidents Board of Directors Patrick J. Balthrop, Sr. Chief Executive Officer and President Russell W. Bradley Vice President Business Development and Strategic Planning Jeremy Bridge-Cook, Ph.D. Senior Vice President Assay Group Harriss T. Currie Chief Financial Officer Vice President Treasurer Timothy R. Dehne Vice President Systems Research and Development Michael F. Pintek Senior Vice President Operations David S. Reiter Vice President General Counsel and Corporate Secretary Amy L. Altman, Ph.D. Vice President Biodefense and Food Safety Steven Back Vice President Manufacturing and Quality Surveillance Thomas J. Copa Vice President Luminex Life Sciences Andrew D. Ewing Vice President Partner and Operations Development Gregory J. Gosch Vice President Immunodiagnostics Scott C. Johnson, Ph.D. Vice President Product Development & Manufacturing Nancy Krunic, Ph.D. Vice President Luminex Molecular Diagnostics Darin S. Leigh Vice President Commercial Operations Oliver H. Meek Vice President Quality Assurance and Regulatory Affairs G. Walter Loewenbaum, II (1) Chairman of the Board, 3D Systems Corporation Patrick J. Balthrop, Sr. (1) (5) Chief Executive Officer and President Robert J. Cresci (3) (4) Managing Director, Pecks Management Partners Ltd. Director, j2 Global Communications, Inc. Thomas W. Erickson (1) (3) Retired Senior Advisor to New Mountain Capital, LLC Chairman of the Board, Inmar, Inc. Director, American Renal Associates Fred C. Goad, Jr. (2) (4) Member, Voyent Partners, Inc. Jay B. Johnston (2) (5) Retired Corporate Vice President for Diagnostic Assays and Systems, Abbott Laboratories Chairman of the Board, QuesTek Innovations, LLC Jim D. Kever (2) Member, Voyent Partners, LLC Director, 3D Systems Corporation Director, Tyson Foods, Inc. Kevin M. McNamara (3) Retired Executive Vice President, Chief Financial Officer and Treasurer of HealthSprings, Inc. Director, Tyson Foods, Inc. Edward A. Ogunro, Ph.D. (4) (5) Retired Senior Vice President, R&D and Medical Affairs and Chief Scientific Officer, Hospira, Inc. Gerard Vaillant (2) (5) Retired Company Group Chairman, Johnson & Johnson Chairman, Safeorthopedics Acting CEO, Tecan AG Director, Tecan AG (1) Member of the Executive Committee (2) Member of the Compensation Committee (3) Member of the Audit Committee (4) Member of the Nominating and Corporate Governance Committee (5) Member of the Strategy and Development Committee Independent Registered Public Accountants Ernst & Young LLP Austin, Texas Annual Meeting of Stockholders The annual meeting of stockholders will be held on Thursday, May 17, 2012, at 10:00 a.m., Central Standard Time, at Luminex’s Corporate Headquarters located at 12212 Technology Boulevard, Austin, TX, 78729. Transfer Agent and Registrar Mellon Investor Services, LLC 480 Washington Boulevard Jersey City, New Jersey 07310 1.866.635.6965 Form 10-K/Investor Contact A copy of the Company’s Annual Report on Form 10-K, filed with the Securities and Exchange Commission, may be obtained from the Company at no charge. Requests for the Annual Report on Form 10-K and other investor information should be directed to Investor Relations at the Company’s corporate office or www.luminexcorp.com or by e-mail to: investor@luminexcorp.com Cautionary Note Regarding Forward-Looking Statements This report contains forward-looking statements (all statements other than those made solely with respect to historical fact) under the Private Securities Litigation Reform Act of 1995. These forward-looking statements, including statements regarding our future financial position, business strategy, new products, assay sales, budgets, liquidity, cash flows, projected costs, litigation costs, including the costs or impact of any litigation settlements or orders, regulatory approvals or the impact of any laws or regulations applicable to us, and plans and objectives of management for future operations, are subject to known and unknown risks and uncertainties (some of which are beyond the Company’s control) that could cause actual results to differ materially and adversely from those anticipated in the forward- looking statements. See the Company’s 10-K filing for more detailed disclosure regarding forward-looking statements and associated risks and uncertainties. Luminex Locations Global Headquarters 12212 Technology Boulevard Austin, Texas 78727 United States 512.219.8020 Madison, Wisconsin 918 Deming Way, Suite 201, Madison, WI 53717 United States 608.662.9000 Canada 439 University Avenue, Suite 900 Toronto, Ontario M5G 1Y8 Canada 416.593.4323 Europe Luminex B.V. Krombraak 15 4906 Oosterhout The Netherlands +31.16.240.8333 Japan Luminex Japan Corporation Ltd. Kamiyacho Sankei Bldg 3F 1-7-2 Azabudai Minato-ku, Tokyo 106-0041 Japan +81.3.5545.7440 China Luminex Trading (Shanghai) Co. Ltd Unit 6405, Building 6 No. 339 Cai Lun Rd. Zhangjiang Hi-Tech Park Pudong District Shanghai 201203 P. R. China +86.21.61650809/61650810 Australia Building 1, 243 Bradman Street Acacia Ridge Brisbane, Queensland 4110 Australia +617.3273.0273 www.luminexcorp.com