<Page>
EXHIBIT 1
VISIBLE GENETICS INC.
CONSOLIDATED BALANCE SHEETS
(UNITED STATES DOLLARS)
<Table>
<Caption>
JUNE 30
2001 DECEMBER 31
(UNAUDITED) 2000
------------ ------------
ASSETS
CURRENT ASSETS
Cash and cash equivalents................................. $ 3,518,781 $ 18,476,303
Short-term investments.................................... 47,503,382 61,922,687
Trade receivables, net of allowance for doubtful
accounts................................................ 3,963,992 3,214,934
Other receivables......................................... 1,225,090 884,995
Prepaid and deposits...................................... 623,997 452,124
Inventory................................................. 2,542,637 2,268,877
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TOTAL CURRENT ASSETS........................................ 59,377,879 87,219,920
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FIXED ASSETS................................................ 18,321,969 10,292,282
PATENTS AND LICENSES........................................ 15,778,826 12,182,112
OTHER LONG TERM ASSETS...................................... 290,168 290,633
------------ ------------
$ 93,768,842 $109,984,947
============ ============
LIABILITIES
CURRENT LIABILITIES
Accounts payable.......................................... $ 5,015,950 $ 3,847,364
Accrued liabilities....................................... 5,102,830 5,265,864
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TOTAL CURRENT LIABILITIES................................... 10,118,780 9,113,228
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MANDATORILY REDEEMABLE CONVERTIBLE PREFERRED SHARES......... 25,121,139 24,397,398
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SHAREHOLDERS' EQUITY
Share capital............................................... 171,274,436 169,717,379
Other equity................................................ (2,611,237) (1,017,321)
Cumulative translation adjustment........................... (974,500) (1,013,459)
Deficit..................................................... (109,159,776) (91,212,278)
------------ ------------
58,528,923 76,474,321
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$ 93,768,842 $109,984,947
============ ============
</Table>
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VISIBLE GENETICS INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNITED STATES DOLLARS)
(UNAUDITED)
<Table>
<Caption>
THREE MONTHS ENDED JUNE 30 SIX MONTHS ENDED JUNE 30
-------------------------- ---------------------------
2001 2000 2001 2000
------------ ----------- ------------ ------------
SALES
Products.............................. $ 3,819,814 $ 3,299,410 $ 7,352,501 $ 6,740,877
Services.............................. 108,680 108,078 149,820 310,666
------------ ----------- ------------ ------------
3,928,494 3,407,488 7,502,321 7,051,543
------------ ----------- ------------ ------------
COST OF SALES
Products.............................. 2,620,080 2,322,050 4,904,767 4,459,946
Services.............................. 108,384 60,306 136,827 206,791
------------ ----------- ------------ ------------
2,728,464 2,382,356 5,041,594 4,666,737
------------ ----------- ------------ ------------
GROSS MARGIN............................ 1,200,030 1,025,132 2,460,727 2,384,806
EXPENSES
Sales, general and administrative..... 8,630,281 7,299,700 16,387,841 12,799,611
Research and development.............. 2,645,764 2,941,160 5,365,824 4,942,010
Exit and termination costs............ -- -- 540,000 --
------------ ----------- ------------ ------------
11,276,045 10,240,860 22,293,665 17,741,621
------------ ----------- ------------ ------------
LOSS FROM OPERATIONS BEFORE INTEREST.... (10,076,015) (9,215,728) (19,832,938) (15,356,815)
Interest income......................... 709,744 1,568,461 1,887,939 1,998,014
Interest and financing expense.......... (1,544) (2,754) (2,499) (6,798)
------------ ----------- ------------ ------------
NET LOSS FOR THE PERIOD................. (9,367,815) (7,650,021) (17,947,498) (13,365,599)
Cumulative preferred dividends and
accretion of discount attributable to
preferred stock....................... (829,016) (969,382) (1,661,962) (1,937,149)
------------ ----------- ------------ ------------
NET LOSS ATTRIBUTABLE TO COMMON
SHAREHOLDERS.......................... $(10,196,831) $(8,619,403) $(19,609,460) $(15,302,748)
------------ ----------- ------------ ------------
Weighted average number of common shares
outstanding........................... 16,407,406 14,567,520 16,343,924 13,486,119
------------ ----------- ------------ ------------
BASIC AND FULLY DILUTED LOSS PER
SHARE................................. $ (0.62) $ (0.59) $ (1.20) $ (1.13)
------------ ----------- ------------ ------------
</Table>
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VISIBLE GENETICS INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNITED STATES DOLLARS)
(UNAUDITED)
<Table>
<Caption>
SIX MONTHS ENDED JUNE 30
---------------------------
2001 2000
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CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES
Net loss for the period................................... $(17,947,498) $(13,365,599)
Add: Items not involving cash--
Depreciation............................................ 2,086,776 1,072,461
Amortization............................................ 1,514,287 648,084
Foreign exchange........................................ 35,498 (106,689)
Increase (decrease) from changes in--
Trade receivables....................................... (803,052) 1,499,818
Other receivables....................................... (390,817) (71,972)
Prepaid and deposits.................................... (179,172) (357,551)
Inventory............................................... (278,019) (974,841)
Other long term assets.................................. 465 --
Accounts payable........................................ 1,250,004 2,161,389
Accrued liabilities..................................... 24,865 (359,292)
------------ ------------
(14,686,663) (9,854,192)
============ ============
INVESTING ACTIVITIES
Purchase of fixed assets................................ (10,105,541) (4,196,548)
Licenses and patents acquired........................... (5,111,001) (12,216,273)
Purchase of short-term investments...................... (57,868,464) (78,738,530)
Redemption of short-term investments.................... 72,287,769 24,565,066
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(797,237) (70,586,285)
============ ============
FINANCING ACTIVITIES
Common shares issued, net of expenses................... 725,841 78,750,832
------------ ------------
725,841 78,750,832
============ ============
EFFECT OF EXCHANGE RATE FLUCTUATIONS ON CASH BALANCES....... (199,463) 218,189
------------ ------------
INCREASE (DECREASE) IN CASH DURING THE YEAR................. (14,957,522) (1,471,456)
CASH, BEGINNING OF PERIOD................................... 18,476,303 2,792,985
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CASH, END OF PERIOD......................................... $ 3,518,781 $ 1,321,529
============ ============
SUPPLEMENTAL INFORMATION
Interest paid............................................. $ 1,544 $ 2,754
Income taxes paid......................................... $ -- $ --
</Table>
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VISIBLE GENETICS INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(UNITED STATES DOLLARS)
(UNAUDITED)
<Table>
<Caption>
SIX MONTHS ENDED JUNE 30
---------------------------
2001 2000
------------ ------------
Net loss for the period.................................. $(17,947,498) $(13,365,599)
Other comprehensive income:
Foreign currency translation adjustments............... 38,959 (332,691)
------------ ------------
Comprehensive loss for the period........................ $(17,908,539) $(13,698,290)
============ ============
</Table>
<Page>
VISIBLE GENETICS INC.
CONSOLIDATED STATEMENTS OF DEFICIT
(UNITED STATES DOLLARS)
(UNAUDITED)
<Table>
<Caption>
SIX MONTHS ENDED JUNE 30
----------------------------
2001 2000
------------- ------------
Deficit, beginning of year.............................. $ (91,212,278) $(59,438,142)
Net loss for the period................................. (17,947,498) (13,365,599)
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Deficit, end of the period.............................. $(109,159,776) $(72,803,741)
============= ============
</Table>
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VISIBLE GENETICS INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1--SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accompanying financial statements have been prepared in United States
dollars, in accordance with accounting principles generally accepted in the
United States. The principal accounting policies of the Company have been
applied on a consistent basis. See the Company's 2000 Annual Report for a
description of the Company's significant accounting policies. These interim
financial statements do not include all of the information and note disclosure
required by generally accepted accounting principles. In the opinion of
management, all adjustments considered necessary for a fair presentation of
results for the reported periods have been included.
NOTE 2--INVENTORY
<Table>
<Caption>
JUNE 30,
-----------------------
2001 2000
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Raw materials........................................ $1,072,408 $1,860,757
Work in process...................................... 393,658 592,671
Finished goods....................................... 1,076,571 1,034,474
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$2,542,637 $3,487,902
========== ==========
</Table>
NOTE 3--CONVERSION OF SERIES A MANDATORILY REDEEMABLE CONVERTIBLE PREFERRED
SHARES
On March 15, 2001 a holder of 3,948 shares of the Company's Series A
Mandatorily Redeemable Convertible Preferred Shares (the Series A Shares)
converted a total of 1,000 of the Series A Shares, plus a total of $139,050 of
dividends that accrued on those shares, into 103,550 of the Company's common
shares. Upon conversion of the 1,000 Series A Shares, approximately $938,221
attributable to such shares and carried in Mandatorily Redeemable Convertible
Preferred Shares on the Balance Sheet was transferred to Share Capital.
As of June 30, 2001, a total of 25,153 Series A Shares remain outstanding,
and such shares, including dividends accrued on such shares through June 30,
2001, are convertible into 2,707,406 shares of the Company's common stock.
NOTE 4--EXIT COSTS
During the first quarter of 2001 the Company approved a plan to close its
Pittsburgh facility and move all of its kit manufacturing to productions lines
that are currently undergoing validation in the Company's facility in Atlanta.
It is expected that the Pittsburgh facility will be closed in the second half of
2001.
As a result of the decision to centralize kit manufacturing in Atlanta
certain employees will be terminated and the Pittsburgh facility will be
vacated. Accordingly, the Company recorded a charge of $540,000 in the statement
of operations in the first quarter of 2001. This amount represents the expected
severance payments to be made to terminated employees, the remaining future
lease commitments, the unamortized balance of leasehold improvements and other
costs related to closure of the facility.
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NOTE 5--SEGMENT INFORMATION
The Company's reportable segments are Sequencing Systems, Gene Kits and
Other Consumables, and Testing, Sequencing and Other Services. Total assets
shown below are as of June 30th, while all other numbers are for the six-month
period ended June 30th, of the respective year.
JUNE 30, 2001
<Table>
<Caption>
GENEKITS TESTING,
SEQUENCING AND OTHER SEQUENCING AND RECONCILING
SYSTEMS CONSUMABLES OTHER SERVICES ITEMS(A) TOTAL
---------- ----------- -------------- ----------- -----------
Revenues....................... $1,508,823 $ 5,843,678 $ 149,820 -- $ 7,502,321
Depreciation & Amtz............ 834,075 2,358,946 408,042 -- 3,601,063
(Loss) from operations before
interest..................... (4,136,029) (15,622,147) (74,762) -- (19,832,938)
Additions to fixed assets...... 185,550 9,786,307 133,684 -- 10,105,541
Total assets................... 3,589,618 37,489,071 1,667,990 51,022,163 93,768,842
</Table>
JUNE 30, 2000
<Table>
Revenues....................... $2,872,304 $ 3,868,573 $ 310,666 $ -- $ 7,051,543
Depreciation & Amtz............ 619,181 913,283 188,081 -- 1,720,545
(Loss) from operations before
interest..................... (6,301,638) (9,010,688) (44,489) -- (15,356,815)
Additions to fixed assets...... 455,477 2,281,445 1,459,626 -- 4,196,548
Total assets................... 5,198,575 22,615,133 2,615,103 95,389,971 125,818,782
</Table>
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(A) Reconciling items consist of cash, cash equivalents and short-term
investments.
2