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					Appendix Alere I nc.                                      $39.00)

ALR is a medical diagnostics company with leading market shares in point-of-care rapid tests used in hospitals,

M&A fueled-growth, ALR is viewed as an over-leveraged empire builder reporting negative GAAP earnings.
While the market uses a rear-view mirror to analyze ALR, we are looking forward and believe we detected an
inflection point when management pledged to change course, end its acquisition spree and embark on an
operational and balance sheet restructuring plan. We continue to see a different company with a new dynamic -
a management team committed to creating shareholder value by 1) restructuring its businesses, 2) focusing on
its high growth products, 3) divesting non-core assets and 4) paying down debt. Looking to 2015, we see a
company with a high quality diagnostics business - with #1 global market shares and EBITDA margins
approaching 30% - which could generate more than $4.00 per share in FCF and cut its debt in half. While the
market continues to value ALR at a P/E multiple nearly 50% below its peers, we believe ALR will be re-rated
over the next 12 months with a significantly higher multiple as management executes its plan, yielding a stock
price of $70-$80 per share.

Founder and CEO Ron Zwanziger built ALR from scratch after he sold the assets of Inverness Medical

name of the company to Inverness Medical Innovation and spent the next decade acquiring mostly medical
diagnostic assets. This core Medical Diagnostics business is a global operation with leading market shares in
various product lines.

Now called Alere, the company develops and sells rapid, point-of-care tests that offer medical practitioners

such as HIV, colitis, mononucleosis, Lyme disease, herpes, malaria, and measles, among others. The company
also sells products to help diagnose cardiovascular diseases, blood diseases, and drug use.

                                                                                                                -digit organic growth for 2013 to expand
over the next two years to high single-                                                                     CEO Ron Zwanziger

In 2014, we expect the Diagnostics segment to contribute ~$2.7b in revenue (~80% of total) and ~$650m in
EBITDA (including corporate). Impressive organic top line growth in recent quarters has been driven by
acceleration in international markets such as China, Latin America and Africa.


enables the reporting and analysis of clinical data for hospitals, insurance companies and government programs.
ALR built this business through acquisitions starting in 2007, but it has not been able to grow organically in
recent years and its EBITDA has shrunk to below $50m.

                                                                      of assets, which we expect to unlock
over the next several years driving accelerated margin expansion to our Company's strong organic revenue
           CEO Ron Zwanziger

This letter is not a research report or recommendation to buy or sell the securities mentioned herein. The examples herein are illustrations of ways in which Corsair and its
affiliates have examined or may examine opportunities. Additionally such examples do not represen
                                                                                                                           he securities mentioned in this letter and may change
its long or short position at any time without providing any notification of such changes. It should not be assumed that any trading activities pursued either now or in the future
will be profitable. Such activities may in fact result in losses.



      Corsair	
  Capital	
  Management,	
   L.P.	
  	
  |	
  	
  350	
  Madison	
  Avenue,	
  9th Floor	
  	
  |	
  	
  	
  New	
  York,	
  NY	
  10017	
  	
  |	
  	
  	
  212.389.8240
Over the course of a decade, management completed 100 transactions. However, with the deal pipeline
perpetually full and existing without a chief operating officer, ALR neglected to integrate its acquisitions.
Hence, ALR gradually became a conglomeration of independent businesses with seemingly little focus on free
cash flow maximization or shareholder value. This dynamic led to a proxy contest in 2013, which if nothing
else, lit a fire under management to restructure the company in the very near term.

Restructuring

                                                                             consolidation of our prior acquisitions and workforce
                                                              COO Namal Nawana

With net debt ballooning towards 7x and organic growth slowing, ALR announced a transformative plan to
integrate the company, divest non-core businesses, maximize free cash flow and pay down debt. The key
inflection point emerged when ALR hired Namal Nawana as its first-ever COO. Nawana spent 15 years at JNJ
in various capacities, compiling a track record of driving efficiencies in his businesses. After speaking with
various people at ALR, it became clear to us that Nawana brought a new culture to the company, hacking away
at corporate costs and attempting to get division presidents to do the same within their businesses.

                             feel very confident in our ability to significantly reduce our original target
leverage ratio achieving a 3x debt-to-EBITDA by the end of 2015, and doing so without excessively
compromising our core business or our longer-                              CEO Ron Zwanziger

In addition, management expressed its intent to stop acquiring assets and, perhaps more importantly, to begin
shedding its slow-growth, low margin assets. The company expects to generate ~$600m in near term divestiture
proceeds, and even more over the medium term. The combination of cutting costs and divesting assets should
produce significant cash flow to reduce debt from 7x EBITDA to 3x EBITDA by year-end 2015.

Valuation

                                                                                                                          our three-point plan to accelerate the
                                                                                                                                                           CEO
Ron Zwanziger

Our view is that the market is negatively biased toward ALR, driven by management's leveraged acquisition
binge of the past. Additionally, ALR's non-cash acquisition-related amortization expense has caused reported

the true cash expense of running a business, as opposed to a non-cash line item dictated by GAAP purchase
accounting standards. As such, we see the Diagnostics business being able to generate free cash flow of almost
$3.50 per share in 2014 and over $4.00 per share in 2015.



This letter is not a research report or recommendation to buy or sell the securities mentioned herein. The examples herein are illustrations of ways in which Corsair and its
affiliates have examined or may examine opportunities. Additionally such examples do not represen
                                                                                                                           he securities mentioned in this letter and may change
its long or short position at any time without providing any notification of such changes. It should not be assumed that any trading activities pursued either now or in the future
will be profitable. Such activities may in fact result in losses.



      Corsair	
  Capital	
  Management,	
   L.P.	
  	
  |	
  	
  350	
  Madison	
  Avenue,	
  9th Floor	
  	
  |	
  	
  	
  New	
  York,	
  NY	
  10017	
  	
  |	
  	
  	
  212.389.8240
Focusing solely on the Medical Diagnostics segment, ALR trades at 11.5x 2014 and 8.5x 2015 free cash flow,
                                                                                                 Despite the
objectives laid out by management, the market continues to value ALR with discounted multiples and refuses to

leading market shares, ALR should, at a minimum, trade in line with its competitors as free cash flow ramps
and its debt shrinks.


                                                                               CEO Ron Zwanziger

Our view is that ALR is worth $70-$80 per share based on 20x 2014 and 18x 2015 Diagnostics free cash flow,

surprised if, after restructuring the company, Zwanziger looks to sell the company as he did with IMA back in
2001.




This letter is not a research report or recommendation to buy or sell the securities mentioned herein. The examples herein are illustrations of ways in which Corsair and its
affiliates have examined or may examine opportunities. Additionally such examples do not represen
                                                                                                                           he securities mentioned in this letter and may change
its long or short position at any time without providing any notification of such changes. It should not be assumed that any trading activities pursued either now or in the future
will be profitable. Such activities may in fact result in losses.



      Corsair	
  Capital	
  Management,	
   L.P.	
  	
  |	
  	
  350	
  Madison	
  Avenue,	
  9th Floor	
  	
  |	
  	
  	
  New	
  York,	
  NY	
  10017	
  	
  |	
  	
  	
  212.389.8240
I M PORTANT DI SCLOSURES

An investment in any Corsair fund is speculative and involves a high degree of risk. Past performance is not
necessarily indicative of future results. There can be no assurances that any Corsair fund will continue to have a
similar return on invested capital because, among other reasons, there may be differences in economic and
market conditions, regulatory and political climate, portfolio size, investment opportunities, expenses and
structure.

References to benchmarks are for illustrative purposes only. Comparisons to benchmarks have limitations
because characteristics of such benchmarks, such as level of volatility and position concentration, among other
things, may differ from those of the applicable Corsair fund. The Corsair funds do not attempt to track a
benchmark.

The information in this letter is as of the date set forth on the cover page hereto and is subject to change without
notice. The delivery of this letter at any time does not imply that the information or opinions contained herein
are correct at any time subsequent to the date set forth on the cover page hereto.

Any forward-looking statements included in this letter represent the subjective views of the portfolio managers
of Corsair, including the future performance of the market generally and portfolio companies specifically, based
on assumptions that may or may not prove to be correct. There can be no assurance that these views are
accurate or will be realized, and nothing contained here is, or should be relied on as, a promise as to the future
performance or condition of any Corsair fund, any portfolio company or the market generally. Industry experts
and the portfolio companies themselves may disagree with these views and/or assumptions.

Certain information contained herein has been obtained by Corsair from third parties. While Corsair believes
that such sources are reliable, it cannot guarantee the accuracy of any such information and does not represent
that such information is accurate or complete.




This letter is not a research report or recommendation to buy or sell the securities mentioned herein. The examples herein are illustrations of ways in which Corsair and its
affiliates have examined or may examine opportunities. Additionally such examples do not represen
                                                                                                                           he securities mentioned in this letter and may change
its long or short position at any time without providing any notification of such changes. It should not be assumed that any trading activities pursued either now or in the future
will be profitable. Such activities may in fact result in losses.



      Corsair	
  Capital	
  Management,	
   L.P.	
  	
  |	
  	
  350	
  Madison	
  Avenue,	
  9th Floor	
  	
  |	
  	
  	
  New	
  York,	
  NY	
  10017	
  	
  |	
  	
  	
  212.389.8240

				
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