THE CORPORATE LIBRARY

Related Party Transactions and Outside Related Director Information

Bruker BioSciences Corporation (BRKR)

5/25/2006 Proxy Information

Mr. Jorg Laukien is the brother of Dr. Frank Laukien, the Chairman, President and Chief Executive Officer of Bruker BioSciences.

Affiliation and Stockholders

Bruker BioSciences and Bruker Optics are both affiliated with Bruker Physik AG, Bruker BioSpin Invest AG, Techneon AG, Bruker BioSpin Inc. and their respective subsidiaries, collectively referred to as the Bruker affiliated companies, through common control at the stockholder level, as each company’s five largest stockholders are the controlling stockholders of these entities. Bruker BioSciences’ and Bruker Optics’ five largest stockholders are Frank H. Laukien, Dirk D. Laukien, Isolde Laukien, Jörg C. Laukien and Marc M. Laukien. Isolde Laukien is the mother of Dirk and Marc Laukien. Jörg, Frank, Dirk and Marc are brothers or half-brothers.

Frank H. Laukien, Ph.D., the Chairman, President and Chief Executive Officer of Bruker BioSciences, also was Executive Chairman of the board of directors of the former Bruker AXS, is a director and President of Bruker BioSpin Inc., and is Co-CEO of the worldwide Bruker BioSpin group of companies. Dr. Laukien is also a director of Bruker BioSpin Canada Ltd. and Bruker BioSpin Netherlands B.V., which are Bruker affiliated companies. Additionally, Dr. Laukien beneficially owns directly or indirectly more than 10% of the stock of each of the Bruker affiliated companies.

Jörg C. Laukien, a director of Bruker BioSciences, is a director and President of Bruker BioSpin MRI, Inc., President of Bruker BioSpin MRI GmbH, President of Bruker Elektronic GmbH, a director of Bruker BioSpin Inc, a director of Bruker BioSpin SA, a director of Bruker BioSpin s.r.l., and a director of Techneon AG. Additionally, Jörg Laukien beneficially owns directly or indirectly more than 10% of the stock of each of the Bruker affiliated companies.

Dirk D. Laukien, Chairman, President and Chief Executive Officer of Bruker Optics is also Co-President and director of Bruker BioSpin Inc. and a director of Bruker AG, each a Bruker affiliated company. Additionally, Dr. Laukien owns directly or indirectly more than 10% of the stock of each of the Bruker affiliated companies.

Marc Laukien owns directly or indirectly more than 10% of the stock of each of the Bruker affiliated companies.

Richard M. Stein, a director of Bruker BioSciences, is a partner of Nixon Peabody LLP, a law firm which, together with its predecessor Hutchins, Wheeler & Dittmar, has been retained by Bruker BioSciences and Bruker Optics for over five years. Mr. Stein has also served as the secretary for each of Bruker BioSciences, the former Bruker AXS and Bruker Optics.

Taylor J. Crouch, a director of Bruker BioSciences, was the President and Chief Operating Officer of Discovery Partners International, Inc. (“DPI”) until his departure from DPI in January of 2005. In 2003 Bruker AXS entered into a distribution agreement with DPI whereby Bruker BioSciences distributed DPI’s Crystal Farm line of protein crystallography products. In 2003, 2004 and 2005 the total payments under the agreement were less than 5% of DPI’s consolidated gross revenue for the relevant year and each of the three preceding fiscal years.

William Linton, M. Christopher Canavan, Jr., Taylor Crouch and Daniel Dross are members of the special committee of the board of directors of Bruker BioSciences representing the interests of the stockholders of Bruker BioSciences unaffiliated with the Laukien family in connection with the potential acquisition of Bruker Optics by Bruker BioSciences. In accordance with the terms of the Compensation and Indemnification Agreement entered into on April 18, 2006 by the members of the special committee and Bruker BioSciences, the Chair of the special committee, William A. Linton, is entitled to an additional $70,000 fee for his services, and each of the remaining members of the special committee is entitled to a $60,000 fee for their services. In addition, the members of the special committee are entitled to reimbursement of reasonable expenses incurred in connection with their service on the special committee.

Sharing Agreement

Bruker BioSciences and Bruker Optics both entered into a sharing agreement, dated as of February 28, 2000, with each other and each of Bruker Physik AG, Techneon AG, SBI Holding AG, Rhena Invest AG, Bruker Spectrospin SA, Bruker Analytik GmbH, Bruker Electronik GmbH, Bruker BioSpin Corporation, Bruker AG, Bruker SA, and Bruker Medical AG, all Bruker affiliated companies. The Sharing Agreement provides for the sharing of specified intellectual property rights, services, facilities and other related items among the parties to the agreement. The following description of the Sharing Agreement is a summary and is qualified in its entirety by the provisions of the Sharing Agreement.

Name

Pursuant to the terms of the Sharing Agreement, Bruker Analytik and Bruker Physik have granted to the other parties to the Sharing Agreement a perpetual, irrevocable, non-exclusive, royalty-free, non-transferable right and license to use the name “Bruker” in connection with the conduct and operation of their respective businesses, provided that the parties do not materially interfere with any other party’s use of the name, do not take any action which would materially detract from the goodwill associated with the name and do not take any action which would cause a lien to be placed on the name or the parties’ license rights. This license automatically becomes null and void with respect to a party if that party files, or has filed against it, a petition in bankruptcy, fails to comply with the relevant terms of the Sharing Agreement or suffers a major loss of its reputation in its industry or the marketplace.

Intellectual Property

The parties to the Sharing Agreement also generally share technology and other intellectual property rights, as they existed on or prior to February 28, 2000, subject to the terms of the Sharing Agreement. In addition, under the Sharing Agreement each party has agreed to negotiate with any other party who wishes to obtain an agreement permitting such party to make a broader use of the first party’s intellectual property that was in effect on or prior to February 28, 2000. However, no party has any obligation to enter into these agreements. Bruker BioSciences has a written agreement in place with Bruker Optik GmbH defining the use, royalties and terms and conditions of the use of various technology and related intellectual property. Bruker Optics does not currently share any intellectual property pursuant to the sharing agreement or any sub-sharing agreements.

Distribution

In various countries in which either Bruker BioSciences or Bruker Optics does not have its own distribution network, the companies share in the worldwide distribution network of Bruker affiliated companies. The Sharing Agreement provides for the use of common distribution channels by the parties to the agreement. The Sharing Agreement states that the terms and conditions of sale and the transfer pricing for any shared distribution will be on an arm’s length basis as would be utilized in typical transaction with a person or entity not a party to the agreement. The Sharing Agreement also states that no common sales channel may have any exclusivity in any country or geographic area.

Services

Bruker BioSciences and Bruker Optics also share various general and administrative expenses for items such as umbrella insurance policies, retirement plans, accounting services and leases, with various Bruker affiliated companies. The Sharing Agreement provides that these services are charged among the Bruker affiliated companies at arm’s length conditions and pricing, according to individual Sub-Sharing Agreements. In 2005, various Bruker affiliated companies provided administrative and other services (including office space) to Bruker BioSciences and Bruker Optics at a cost of approximately $1.4 million and $1.4 million, respectively.

Purchases and Sales

Bruker BioSciences purchases subunits or components, including some components used in its NBC (nuclear, biological and chemical) detection products, miscellaneous electronics boards used in Fourier transform mass spectrometers, sheet metal cabinets and some of the superconducting magnets used for Fourier transform mass spectrometers, and a low-temperature attachment for certain x-ray systems, from various Bruker affiliated companies, at arm’s length commercial conditions and pricing. Bruker Optics purchases subunits or components and miscellaneous electronics boards from various Bruker affiliated companies, including Bruker Electronik GmbH, Bruker AG, Bruker Analytik GmbH and Bruker SA, at arm’s length commercial conditions and pricing. In 2005, Bruker BioSciences and Bruker Optics purchased components from their affiliates for $9.9 million and $10.0 million, respectively.

Under the Sharing Agreement, the Bruker affiliated companies who supply certain of these subunits or components have agreed to continue to do so for at least seven years and to provide spare parts for at least 12 years from the date of the Sharing Agreement, at the terms and conditions and prices in effect on the date of the Sharing Agreement, which may be increased annually in an amount proportional to annual increases in the Consumer Price Index. The Sharing Agreement states that the terms and conditions of purchases of subunits and components shall be at reasonable arm’s length terms and conditions and that pricing shall be competitive. In 2005, Bruker BioSciences and Bruker Optics’ purchases from Bruker affiliated companies were approximately 3% and 13% of revenues for each of Bruker BioSciences and Bruker Optics, respectively.

Bruker BioSciences supplies system products and individual licenses to its HyStar software package to Bruker affiliated companies at what Bruker BioSciences believes to be commercially reasonable arm’s length conditions and pricing. As part of the Sharing Agreement, Bruker BioSciences guarantees a continued supply of the HyStar software package (or its successor) for at least seven years.

Bruker BioSciences and Bruker Optics may, from time to time, distribute the products of other Bruker affiliated companies as part of customer orders.

Bruker BioSciences and Bruker Optics supply a variety of products to Bruker affiliated companies for resale at what Bruker BioSciences and Bruker Optics believe to be commercially reasonable arm’s length conditions and pricing. For the year ended December 31, 2005, Bruker BioSciences and Bruker Optics sold products to Bruker affiliated companies in the amount of $12.1 million and $5.7 million, respectively. However, these sales were primarily for resale of certain products by Bruker affiliated entities as described above. Bruker BioSciences and Bruker Optics believe that less than 10% of future sales will be through Bruker affiliated companies.

Additional Agreements, Collaborations and Sales Bruker BioSciences recognized sales to affiliated entities of approximately $12.1 million in 2005, and purchases from affiliated entities of approximately $9.9 million in 2005. Bruker Optics recognized sales to affiliated entities of approximately $6.2 million in 2005, and purchases from affiliated entities of approximately $10.0 million in 2005. Bruker BioSciences is a party to certain collaborations with various affiliates, including: Š Collaboration with Bruker Optics in connection with Bruker BioSciences’ RAPID/HAWK chemical agent stand-off detectors; Š Collaboration with Bruker BioSpin in connection with Bruker BioSciences’ Proteomics RIMS research software environment; and Š Collaboration with Bruker BioSpin in connection with Bruker BioSciences’ Metabolic Profiler system. Bruker Optics is a party to certain collaborations with various affiliates, including: Š Collaboration with Bruker BioSciences in connection with Bruker BioSciences’ RAPID/HAWK chemical agent stand-off detectors; and Š Collaboration with Bruker BioSpin in connection with BioSpin’s TD-NMR Analyzer “the-minispec.” As of December 31, 2004, Bruker Optics had $2.2 million outstanding notes payable to an affiliated company. The notes had an interest rate of 4.5% and were repaid during 2005. In July 2004, Bruker Optics borrowed $1.5 million from a stockholder, due in July 2006, at a fixed interest rate of 4.68%. During 2005, the note was repaid in full. Bruker Optics rents various office space spaces from a principal stockholder under lease agreements. During the year ended December 31, 2005, this stockholder was paid $0.3 million, which was estimated to be equal to the estimated fair market value less the cost of certain capital improvements provided by Bruker Optics in 2004. Bruker Optics subleased a portion of this office space to an affiliate during 2005 and received $31,500, in rental income, which included charges for utilities and other occupancy costcosts. This rental income is recorded as a reduction of rent, utilities, and building maintenance expenses.