Market Overview

Illumina Announces Pricing of Convertible Senior Notes


Illumina, Inc. (NASDAQ:ILMN) today announced the pricing of an offering
of $650 million aggregate principal amount of its 0.0% convertible
senior notes due 2023 (the "Notes"). The Notes are being offered to
qualified institutional buyers pursuant to Rule 144A under the
Securities Act of 1933, as amended (the "Securities Act"). Illumina has
granted the initial purchasers an option to purchase up to an additional
$100 million aggregate principal amount of the Notes on the same terms
and conditions referenced above. The Notes will not bear interest and
will mature on August 15, 2023, unless earlier repurchased, redeemed or

The Notes will be convertible, subject to the satisfaction of certain
conditions, into cash, shares of Illumina common stock or a combination
thereof, at Illumina's election. Prior to May 15, 2023, the Notes will
be convertible only upon the occurrence of certain events and during
certain periods, and thereafter, at any time until the close of business
on the second scheduled trading day immediately preceding the maturity
date. The initial conversion rate of the Notes is 2.1845 shares of
common stock per $1,000 principal amount of the Notes, which is
equivalent to an initial conversion price of approximately $457.77 per
share of common stock, subject to adjustment in certain circumstances.
This initial conversion price represents a premium of approximately 40%
relative to the last reported sale price on August 16, 2018 of
Illumina's common stock of $326.98.

The aggregate net proceeds to Illumina from the offering of the Notes
will be approximately $637 million, exclusive of any proceeds
attributable to the initial purchasers' possible exercise of their
option to purchase additional Notes. Illumina intends to use the net
proceeds of the offering to repurchase approximately $102.7 million of
its common stock concurrently with the offering in privately negotiated
transactions effected with or through the initial purchasers and/or
their affiliates at a price per share of common stock of $326.98, and
Illumina intends to use the remainder of the net proceeds of the
offering for general corporate purposes, which may include the repayment
of its 0.0% Convertible Senior Notes due 2019. The offering is expected
to close on August 21, 2018, subject to customary closing conditions.

This press release does not constitute an offer to sell or the
solicitation of an offer to buy securities. Any offers of the Notes will
be made only by means of a private offering memorandum. The Notes and
any shares of Illumina common stock issuable upon conversion of the
Notes have not been, and will not be, registered under the Securities
Act or the securities laws of any other jurisdiction and may not be
offered or sold in the United States absent registration or an
applicable exemption from registration requirements.

Use of forward-looking statements

This release contains forward-looking statements that involve risks and
uncertainties. Among the important factors that could cause actual
results to differ materially from those in any forward-looking
statements are: (i) challenges inherent in developing, manufacturing,
and launching new products and services, including expanding
manufacturing operations and reliance on third-party suppliers for
critical components; (ii) the timing and mix of customer orders among
our products and services; (iii) the impact of recently launched or
pre-announced products and services on existing products and services;
(iv) our ability to further develop and commercialize our instruments
and consumables and to deploy new products, services, and applications,
and expand the markets, for our technology platforms; (v) our ability to
manufacture robust instrumentation and consumables; (vi) the success of
products and services competitive with our own; (vii) our ability to
successfully identify and integrate acquired technologies, products, or
businesses; (viii) our expectations and beliefs regarding future conduct
and growth of the business and the markets in which we operate; and (ix)
the application of generally accepted accounting principles, which are
highly complex and involve many subjective assumptions, estimates, and
judgments, together with other factors detailed in our filings with the
Securities and Exchange Commission, including our most recent filings on
Forms 10-K and 10-Q, or in information disclosed in public conference
calls, the date and time of which are released beforehand. We undertake
no obligation, and do not intend, to update these forward-looking
statements, to review or confirm analysts' expectations, or to provide
interim reports or updates on the progress of the current quarter.

About Illumina

Illumina is improving human health by unlocking the power of the genome.
Our focus on innovation has established us as the global leader in DNA
sequencing and array-based technologies, serving customers in the
research, clinical and applied markets. Our products are used for
applications in the life sciences, oncology, reproductive health,
agriculture and other emerging segments.

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