Bristol-Myers Squibb (BMY) 8-K/A Results of Operations and Financial Condition

EXHIBIT 99.2

BRISTOL-MYERS SQUIBB COMPANY

NET SALES FROM CONTINUING OPERATIONS

QUARTERLY SALES TREND ANALYSIS

($ in millions)

Net Sales	2004																					2005																	% Change
	1st Qtr			2nd Qtr			6 Months			3rd Qtr			9 Months			4th Qtr			Year			1st Qtr			2nd Qtr			6 Months			3rd Qtr			9 Months			4th Qtr	Year	Qtr vs. Qtr		YTD vs. YTD
Pharmaceuticals	$	3,710		$	3,856		$	7,566		$	3,848		$	11,414		$	4,150		$	15,564		$	3,578		$	3,886		$	7,464		$	3,778		$	11,242				-2	%	-2	%
US Pharmaceuticals		1,926			2,048			3,974			2,135			6,109			2,242			8,351			1,767			2,084			3,851			2,069			5,920				-3	%	-3	%
Primary Care		1,381			1,419			2,800			1,496			4,296			1,721			6,017			1,258			1,539			2,797			1,486			4,283				-1	%	0	%
Oncology/Virology		432			510			942			487			1,429			351			1,780			348			345			693			370			1,063				-24	%	-26	%
Neuroscience		113			119			232			152			384			170			554			161			200			361			213			574				40	%	49	%
Latin America/Canada		251			257			508			246			754			287			1,041			258			306			564			285			849				16	%	13	%
Europe and Middle East Medicines		1,189			1,185			2,374			1,128			3,502			1,219			4,721			1,201			1,112			2,313			1,030			3,343				-9	%	-5	%
Asia/Pacific Medicines		287			318			605			297			902			354			1,256			299			329			628			342			970				15	%	8	%
Nutritionals		502			510			1,012			484			1,496			505			2,001			526			548			1,074			547			1,621				13	%	8	%
Related Healthcare		414			453			867			446			1,313			502			1,815			428			455			883			442			1,325				-1	%	1	%
ConvaTec		217			234			451			237			688			266			954			228			247			475			250			725				5	%	5	%
Medical Imaging		139			151			290			145			435			154			589			145			151			296			150			446				3	%	3	%
Consumer Medicines		58			68			126			64			190			82			272			55			57			112			42			154				-34	%	-19	%
Total Company	$	4,626		$	4,819		$	9,445		$	4,778		$	14,223		$	5,157		$	19,380		$	4,532		$	4,889		$	9,421		$	4,767		$	14,188				0	%	0	%
% of Total Sales	2004																					2005																	Basis Point Change
	1st Qtr			2nd Qtr			6 Months			3rd Qtr			9 Months			4th Qtr			Year			1st Qtr			2nd Qtr			6 Months			3rd Qtr			9 Months			4th Qtr	Year	Qtr vs. Qtr		YTD vs. YTD
Pharmaceuticals		80.2	%		80.0	%		80.1	%		80.6	%		80.3	%		80.5	%		80.3	%		79.0	%		79.5	%		79.2	%		79.3	%		79.2	%			(130	)	(110	)
US Pharmaceuticals		41.6	%		42.5	%		42.1	%		44.7	%		43.0	%		43.5	%		43.1	%		39.0	%		42.6	%		40.9	%		43.4	%		41.7	%			(130	)	(130	)
Primary Care		29.9	%		29.4	%		29.6	%		31.3	%		30.2	%		33.4	%		31.0	%		27.8	%		31.4	%		29.7	%		31.2	%		30.2	%			(10	)	0
Oncology/Virology		9.3	%		10.6	%		10.0	%		10.2	%		10.1	%		6.8	%		9.2	%		7.7	%		7.1	%		7.4	%		7.8	%		7.5	%			(240	)	(260	)
Neuroscience		2.4	%		2.5	%		2.5	%		3.2	%		2.7	%		3.3	%		2.9	%		3.5	%		4.1	%		3.8	%		4.4	%		4.0	%			120		130
Latin America/Canada		5.4	%		5.3	%		5.4	%		5.1	%		5.3	%		5.6	%		5.4	%		5.7	%		6.3	%		6.0	%		6.0	%		6.0	%			90		70
Europe and Middle East Medicines		25.7	%		24.6	%		25.1	%		23.6	%		24.6	%		23.6	%		24.4	%		26.5	%		22.7	%		24.6	%		21.6	%		23.6	%			(200	)	(100	)
Asia/Pacific Medicines		6.2	%		6.6	%		6.4	%		6.2	%		6.3	%		6.9	%		6.5	%		6.6	%		6.7	%		6.7	%		7.2	%		6.8	%			100		50
Nutritionals		10.9	%		10.6	%		10.7	%		10.1	%		10.5	%		9.8	%		10.3	%		11.6	%		11.2	%		11.4	%		11.5	%		11.4	%			140		90
Related Healthcare		8.9	%		9.4	%		9.2	%		9.3	%		9.2	%		9.7	%		9.4	%		9.4	%		9.3	%		9.4	%		9.2	%		9.4	%			(10	)	20
ConvaTec		4.7	%		4.9	%		4.8	%		5.0	%		4.8	%		5.1	%		4.9	%		5.0	%		5.0	%		5.1	%		5.2	%		5.1	%			20		30
Medical Imaging		3.0	%		3.1	%		3.1	%		3.0	%		3.1	%		3.0	%		3.1	%		3.2	%		3.1	%		3.1	%		3.1	%		3.2	%			10		10
Consumer Medicines		1.2	%		1.4	%		1.3	%		1.3	%		1.3	%		1.6	%		1.4	%		1.2	%		1.2	%		1.2	%		0.9	%		1.1	%			(40	)	(20	)
Total Company		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

BRISTOL-MYERS SQUIBB COMPANY

SEGMENT SALES AND COMPOSITION OF CHANGE IN SALES FOR CONTINUING OPERATIONS

FOR THE PERIOD ENDED SEPTEMBER 30, 2005

($ in millions)

	Pharmaceuticals			Nutritionals			Convatec			Medical Imaging			Consumer Medicines			Continuing Operations
QUARTER-TO-DATE
Price Increases(Decreases)		2	%		1	%		-4	%		-1	%		—			1	%
Foreign Exchange		1	%		2	%		1	%		1	%		—			1	%
Volume		-5	%		10	%		8	%		3	%		-34	%		-2	%
Total Change		-2	%		13	%		5	%		3	%		-34	%		—
Total 2005 Period to Date Sales	$	3,778		$	547		$	250		$	150		$	42		$	4,767
Total 2004 Period to Date Sales	$	3,848		$	484		$	237		$	145		$	64		$	4,778
	Pharmaceuticals			Nutritionals			Convatec			Medical Imaging			Consumer Medicines			Continuing Operations
YEAR-TO-DATE
Price Increases(Decreases)		-1	%		2	%		-2	%		-1	%		—			—
Foreign Exchange		2	%		1	%		3	%		1	%		—			2	%
Volume		-3	%		5	%		4	%		3	%		-19	%		-2	%
Total Change		-2	%		8	%		5	%		3	%		-19	%		—
Total 2005 Period to Date Sales	$	11,242		$	1,621		$	725		$	446		$	154		$	14,188
Total 2004 Period to Date Sales	$	11,414		$	1,496		$	688		$	435		$	190		$	14,223

BRISTOL-MYERS SQUIBB COMPANY

CONSOLIDATED STATEMENT OF EARNINGS

CONTINUING OPERATIONS

($ in Millions, except EPS)

	2004																					2005																	% Change
	1st Qtr			2nd Qtr			6 Months			3rd Qtr			9 Months			4th Qtr			Year			1st Qtr			2nd Qtr			6 Months			3rd Qtr			9 Months			4th Qtr	Year	Qtr vs. Qtr		YTD vs. YTD
Net Sales	$	4,626		$	4,819		$	9,445		$	4,778		$	14,223		$	5,157		$	19,380		$	4,532		$	4,889		$	9,421		$	4,767		$	14,188				0	%	0	%
Cost of products sold		1,357			1,500			2,857			1,467			4,324			1,665			5,989			1,367			1,483			2,850			1,483			4,333				1	%	0	%
Marketing, selling, and administrative		1,226			1,201			2,427			1,199			3,626			1,390			5,016			1,183			1,268			2,451			1,286			3,737				7	%	3	%
Advertising and promotion		316			346			662			325			987			424			1,411			318			365			683			349			1,032				7	%	5	%
Research and development		583			625			1,208			615			1,823			677			2,500			653			649			1,302			669			1,971				9	%	8	%
Acquired in-process R&D		—			62			62			1			63			—			63			—			—			—			—			—				-100	%	-100	%
Provision for restructuring		12			6			18			57			75			29			104			3			2			5			(5	)		—				-109	%	-100	%
Litigation charges, net		—			379			379			25			404			16			420			124			(26	)		98			(26	)		72				*		-82	%
Gain on sale of businesses		(295	)		(18	)		(313	)		(3	)		(316	)		(4	)		(320	)		—			—			—			(569	)		(569	)			*		-80	%
Equity in net income from affiliates, net		(75	)		(59	)		(134	)		(70	)		(204	)		(69	)		(273	)		(69	)		(87	)		(156	)		(84	)		(240	)			-20	%	-18	%
Other (income)/expense, net		38			8			46			16			62			(10	)		52			25			105			130			38			168				138	%	171	%
Total expenses		3,162			4,050			7,212			3,632			10,844			4,118			14,962			3,604			3,759			7,363			3,141			10,504				-14	%	-3	%
Earnings from Continuing Operations Before Minority interest and income taxes		1,464			769			2,233			1,146			3,379			1,039			4,418			928			1,130			2,058			1,626			3,684				42	%	9	%
Provision for income taxes		396			118			514			239			753			766			1,519			268			(21	)		247			507			754				112	%	0	%
Minority Interest, Net		107			128			235			152			387			134			521			122			160			282			155			437				2	%	13	%
Earnings from Continuing Operations	$	961		$	523		$	1,484		$	755		$	2,239		$	139		$	2,378		$	538		$	991		$	1,529		$	964		$	2,493				28	%	11	%
Diluted Earnings per Common Share Continuing Operations	$	0.49		$	0.27		$	0.76		$	0.38		$	1.14		$	0.07		$	1.21		$	0.27		$	0.50		$	0.78		$	0.49		$	1.27				29	%	11	%
Average Common Shares Outstanding – Diluted		1,976			1,976			1,976			1,975			1,975			1,976			1,976			1,981			1,984			1,982			1,984			1,983				0	%	0	%
Dividends declared per common share	$	0.28		$	0.28		$	0.56		$	0.28		$	0.84		$	0.28		$	1.12		$	0.28		$	0.28		$	0.56		$	0.28		$	0.84				—		—
	2004																					2005																	Basis Point Change
% of Net Sales	1st Qtr			2nd Qtr			6 Months			3rd Qtr			9 Months			4th Qtr			Year			1st Qtr			2nd Qtr			6 Months			3rd Qtr			9 Months			4th Qtr	Year	Qtr vs. Qtr		YTD vs. YTD
Gross Margin		70.7	%		68.9	%		69.8	%		69.3	%		69.6	%		67.7	%		69.1	%		69.8	%		69.7	%		69.7	%		68.9	%		69.5	%			(40	)	(10	)
Cost of products sold		29.3	%		31.1	%		30.2	%		30.7	%		30.4	%		32.3	%		30.9	%		30.2	%		30.3	%		30.3	%		31.1	%		30.5	%			40		10
Marketing, selling, and admin		26.5	%		24.9	%		25.7	%		25.1	%		25.5	%		27.0	%		25.9	%		26.1	%		25.9	%		26.0	%		27.0	%		26.3	%			190		80
Advertising and promotion		6.8	%		7.2	%		7.0	%		6.8	%		6.9	%		8.2	%		7.3	%		7.0	%		7.5	%		7.2	%		7.3	%		7.3	%			50		40
Research and development		12.6	%		13.0	%		12.8	%		12.9	%		12.8	%		13.1	%		12.9	%		14.4	%		13.3	%		13.8	%		14.0	%		13.9	%			110		110
Total expenses		68.4	%		84.0	%		76.4	%		76.0	%		76.2	%		79.9	%		77.2	%		79.5	%		76.9	%		78.2	%		65.9	%		74.0	%			(1,010	)	(220	)
Earnings from Continuing Operations Before Minority interest and income taxes		31.6	%		16.0	%		23.6	%		24.0	%		23.8	%		20.1	%		22.8	%		20.5	%		23.1	%		21.8	%		34.1	%		26.0	%			1,010		220
Earnings from Continuing Operations		20.8	%		10.9	%		15.7	%		15.8	%		15.7	%		2.7	%		12.3	%		11.9	%		20.3	%		16.2	%		20.2	%		17.6	%			440		190
Other Ratios
Effective Tax Rate		27.0	%		15.3	%		23.0	%		20.9	%		22.3	%		73.7	%		34.4	%		28.9	%		-1.9	%		12.0	%		31.2	%		20.5	%
	2004																					2005																	% Change
Other (Income)/ Expense, net	1st Qtr			2nd Qtr			6 Months			3rd Qtr			9 Months			4th Qtr			Year			1st Qtr			2nd Qtr			6 Months			3rd Qtr			9 Months			4th Qtr	Year	Qtr vs. Qtr		YTD vs. YTD
Interest expense	$	69		$	70		$	139		$	80		$	219		$	91		$	310		$	97		$	73		$	170		$	79		$	249				-1	%	14	%
Interest income		(17	)		(21	)		(38	)		(29	)		(67	)		(38	)		(105	)		(45	)		(23	)		(68	)		(28	)		(96	)			3	%	-43	%
Foreign exchange		17			38			55			(20	)		35			(30	)		5			12			35			47			—			47				100	%	34	%
Other - net		(31	)		(79	)		(110	)		(15	)		(125	)		(33	)		(158	)		(39	)		20			(19	)		(13	)		(32	)			13	%	74	%
	$	38		$	8		$	46		$	16		$	62		($	10	)	$	52		$	25		$	105		$	130		$	38		$	168				138	%	171	%

* in excess of +/- 200%

BRISTOL-MYERS SQUIBB COMPANY

WORLDWIDE NET SALES FROM CONTINUING OPERATIONS BY PRODUCT

QUARTERLY SALES TREND ANALYSIS

($ in millions)

	2004														2005												% Change
	1st Qtr		2nd Qtr		6 Months		3rd Qtr		9 Months		4th Qtr		Year		1st Qtr		2nd Qtr		6 Months		3rd Qtr		9 Months		4th Qtr	Year	Qtr vs. Qtr		YTD vs. YTD
Total Company	$	4,626	$	4,819	$	9,445	$	4,778	$	14,223	$	5,157	$	19,380	$	4,532	$	4,889	$	9,421	$	4,767	$	14,188			0	%	0	%
PHARMACEUTICALS		3,710		3,856		7,566		3,848		11,414		4,150		15,564		3,578		3,886		7,464		3,778		11,242			-2	%	-2	%
Cardiovascular		1,748		1,891		3,639		1,951		5,590		2,150		7,740		1,712		2,031		3,743		1,935		5,678			-1	%	2	%
Plavix		697		769		1,466		902		2,368		959		3,327		814		968		1,782		980		2,762			9	%	17	%
Pravachol		671		656		1,327		598		1,925		710		2,635		520		625		1,145		527		1,672			-12	%	-13	%
Avapro/ Avalide		197		233		430		241		671		259		930		196		258		454		251		705			4	%	5	%
Monopril		65		72		137		69		206		68		274		59		54		113		49		162			-29	%	-21	%
Coumadin		37		77		114		65		179		76		255		49		50		99		57		156			-12	%	-13	%
Virology		343		385		728		399		1,127		454		1,581		430		452		882		438		1,320			10	%	17	%
Sustiva		139		153		292		157		449		172		621		173		167		340		170		510			8	%	14	%
Reyataz		75		85		160		106		266		148		414		149		183	��	332		176		508			66	%	91	%
Zerit		58		78		136		69		205		67		272		59		59		118		51		169			-26	%	-18	%
Videx/ Videx EC		71		69		140		67		207		67		274		49		43		92		41		133			-39	%	-36	%
Infectious Diseases		306		294		600		277		877		353		1,230		306		278		584		251		835			-9	%	-5	%
Cefzil		72		55		127		54		181		89		270		82		54		136		48		184			-11	%	2	%
Baraclude		—		—		—		—		—		—		—		—		5		5		2		7			—		—
Oncology		543		619		1,162		566		1,728		427		2,155		387		371		758		380		1,138			-33	%	-34	%
Taxol		243		249		492		243		735		256		991		205		186		391		175		566			-28	%	-23	%
Erbitux		17		72		89		84		173		88		261		87		98		185		107		292			27	%	69	%
Paraplatin		228		241		469		177		646		27		673		44		33		77		42		119			-76	%	-82	%
Affective (Psychiatric) Disorders		158		166		324		210		534		239		773		232		284		516		306		822			46	%	54	%
Abilify**		115		122		237		165		402		191		593		188		240		428		260		688			58	%	71	%
Metabolics		161		79		240		43		283		53		336		43		51		94		43		137			—		-52	%
Glucophage franchise		161		79		240		43		283		53		336		43		51		94		43		137			—		-52	%
Other Pharmaceuticals
Efferalgan		78		59		137		61		198		76		274		88		55		143		66		209			8	%	6	%
NUTRITIONALS		502		510		1,012		484		1,496		505		2,001		526		548		1,074		547		1,621			13	%	8	%
Enfamil		208		224		432		203		635		224		859		235		250		485		230		715			13	%	13	%
RELATED HEALTHCARE		414		453		867		446		1,313		502		1,815		428		455		883		442		1,325			-1	%	1	%
CONVATEC		217		234		451		237		688		266		954		228		247		475		250		725			5	%	5	%
Ostomy		127		137		264		135		399		152		551		127		139		266		139		405			3	%	2	%
Wound Therapeutics		87		94		181		99		280		111		391		97		103		200		104		304			5	%	9	%
MEDICAL IMAGING		139		151		290		145		435		154		589		145		151		296		150		446			3	%	3	%
Cardiolite		92		105		197		101		298		108		406		102		108		210		106		316			5	%	6	%
CONSUMER MEDICINES		58		68		126		64		190		82		272		55		57		112		42		154			-34	%	-19	%

** Includes alliance revenue from the co-promotional agreement with Otsuka Pharmaceutical Co., Ltd.

*** In excess of +/- 200%

BRISTOL-MYERS SQUIBB COMPANY

DOMESTIC* NET SALES FROM CONTINUING OPERATIONS BY PRODUCT

QUARTERLY SALES TREND ANALYSIS

($ in millions)

	2004																2005													% Change				% Change in U.S.Rx Demand
	1st Qtr			2nd Qtr		6 Months		3rd Qtr		9 Months		4th Qtr			Year		1st Qtr		2nd Qtr			6 Months		3rd Qtr		9 Months		4th Qtr	Year	Qtr vs. Qtr		YTD vs. YTD		Qtr vs. Qtr		YTD vs. YTD
Total Company	$	2,508		$	2,662	$	5,170	$	2,633	$	7,803	$	2,810		$	10,613	$	2,310	$	2,668		$	4,978	$	2,638	$	7,616			0	%	-2	%	N/A		N/A
PHARMACEUTICALS		1,966			2,071		4,037		2,154		6,191		2,255			8,446		1,777		2,097			3,874		2,082		5,956			-3	%	-4	%	N/A		N/A
Cardiovascular		1,074			1,207		2,281		1,320		3,601		1,482			5,083		1,080		1,377			2,457		1,328		3,785			1	%	5	%
Plavix		585			651		1,236		781		2,017		816			2,833		673		823			1,496		833		2,329			7	%	15	%	12	%	14	%
Pravachol		343			326		669		318		987		433			1,420		258		353			611		297		908			-7	%	-8	%	-18	%	-16	%
Avapro/ Avalide		116			144		260		148		408		154			562		102		157			259		147		406			-1	%	0	%	11	%	13	%
Monopril		(1	)		13		12		13		25		9			34		3		2			5		1		6			-92	%	-76	%	-58	%	-61	%
Coumadin		31			70		101		58		159		69			228		42		42			84		49		133			-16	%	-16	%	-22	%	-18	%
Virology		187			218		405		231		636		258			894		231		226			457		237		694			3	%	9	%
Sustiva		76			90		166		95		261		103			364		103		97			200		101		301			6	%	15	%	6	%	5	%
Reyataz		66			65		131		75		206		99			305		92		98			190		105		295			40	%	43	%	35	%	44	%
Zerit		16			38		54		34		88		31			119		26		26			52		24		76			-29	%	-14	%	-31	%	-31	%
Videx/ Videx EC		29			25		54		27		81		25			106		10		5			15		7		22			-74	%	-73	%	-72	%	-62	%
Infectious Diseases		78			62		140		66		206		105			311		92		62			154		55		209			-17	%	1	%
Cefzil		42			29		71		30		101		60			161		50		30			80		27		107			-10	%	6	%	-15	%	-9	%
Baraclude		—			—		—		—		—		—			—		—		5			5		2		7			—		—		N/A		N/A
Oncology		240			290		530		255		785		92			877		115		112			227		131		358			-49	%	-54	%
Taxol		14			1		15		9		24		7			31		4		4			8		4		12			-56	%	-50	%	N/A		N/A
Erbitux		17			72		89		83		172		88			260		87		97			184		106		290			28	%	69	%	N/A		N/A
Paraplatin		198			206		404		145		549		(12	)		537		15		(1	)		14		9		23			-94	%	-96	%	N/A		N/A
Affective (Psychiatric) Disorders		117			121		238		157		395		180			575		167		206			373		221		594			41	%	50	%
Abilify**		113			119		232		152		384		170			554		161		200			361		214		575			41	%	50	%	38	%	46	%
Metabolics		155			73		228		39		267		48			315		39		44			83		38		121			-3	%	-55	%
Glucophage franchise		155			73		228		39		267		48			315		39		44			83		38		121			-3	%	-55	%	-46	%	-66	%
Other Pharmaceuticals
Efferalgan		—			—		—		—		—		—			—		—		—			—		—		—			—		—		N/A		N/A
NUTRITIONALS		256			255		511		230		741		250			991		255		267			522		266		788			16	%	6	%
Enfamil		144			158		302		137		439		157			596		162		171			333		168		501			23	%	14	%	N/A		N/A
RELATED HEALTHCARE		245			264		509		257		766		294			1,060		242		253			495		252		747			-2	%	-2	%
CONVATEC		71			71		142		72		214		87			301		66		71			137		82		219			14	%	2	%
Ostomy		40			41		81		39		120		47			167		34		38			72		43		115			10	%	-4	%	N/A		N/A
Wound Therapeutics		30			30		60		31		91		39			130		30		29			59		34		93			10	%	2	%	N/A		N/A
MEDICAL IMAGING		120			127		247		123		370		128			498		124		127			251		129		380			5	%	3	%
Cardiolite		83			92		175		91		266		95			361		91		96			187		95		282			4	%	6	%	N/A		N/A
CONSUMER MEDICINES		54			66		120		62		182		79			261		52		55			107		41		148			-34	%	-19	%

* This table presents Total Company sales on a legal entity source basis and segment and product sales on a country management reported basis.

As a result, the sum of segment sales does not tie to Total Company sales.

** Includes alliance revenue from the co-promotional agreement with Otsuka Pharmaceutical Co., Ltd.

*** In excess of +/-200%

BRISTOL-MYERS SQUIBB COMPANY

INTERNATIONAL* NET SALES FROM CONTINUING OPERATIONS BY PRODUCT

QUARTERLY SALES TREND ANALYSIS

($ in millions)

	2004														2005												% Change
	1st Qtr		2nd Qtr		6 Months		3rd Qtr		9 Months		4th Qtr		Year		1st Qtr		2nd Qtr		6 Months		3rd Qtr		9 Months		4th Qtr	Year	Qtr vs. Qtr		YTD vs. YTD
Total Company	$	2,118	$	2,157	$	4,275	$	2,145	$	6,420	$	2,347	$	8,767	$	2,222	$	2,221	$	4,443	$	2,129	$	6,572			-1	%	2	%
PHARMACEUTICALS		1,744		1,785		3,529		1,694		5,223		1,895		7,118		1,801		1,789		3,590		1,696		5,286			0	%	1	%
Cardiovascular		674		684		1,358		631		1,989		668		2,657		632		654		1,286		607		1,893			-4	%	-5	%
Plavix		112		118		230		121		351		143		494		141		145		286		147		433			21	%	23	%
Pravachol		328		330		658		280		938		277		1,215		262		272		534		230		764			-18	%	-19	%
Avapro/ Avalide		81		89		170		93		263		105		368		94		101		195		104		299			12	%	14	%
Monopril		66		59		125		56		181		59		240		56		52		108		48		156			-14	%	-14	%
Coumadin		6		7		13		7		20		7		27		7		8		15		8		23			14	%	15	%
Virology		156		167		323		168		491		196		687		199		226		425		201		626			20	%	27	%
Sustiva		63		63		126		62		188		69		257		70		70		140		69		209			11	%	11	%
Reyataz		9		20		29		31		60		49		109		57		85		142		71		213			129	%	*
Zerit		42		40		82		35		117		36		153		33		33		66		27		93			-23	%	-21	%
Videx/ Videx EC		42		44		86		40		126		42		168		39		38		77		34		111			-15	%	-12	%
Infectious Diseases		228		232		460		211		671		248		919		214		216		430		196		626			-7	%	-7	%
Cefzil		30		26		56		24		80		29		109		32		24		56		21		77			-13	%	-4	%
Baraclude		—		—		—		—		—		—		—		—		—		—		—		—			—		—
Oncology		303		329		632		311		943		335		1,278		272		259		531		249		780			-20	%	-17	%
Taxol		229		248		477		234		711		249		960		201		182		383		171		554			-27	%	-22	%
Erbitux		—		—		—		1		1		0		1		0		1		1		1		2			—		100	%
Paraplatin		30		35		65		32		97		39		136		29		34		63		33		96			3	%	-1	%
Affective (Psychiatric) Disorders		41		45		86		53		139		59		198		65		78		143		85		228			60	%	64	%
Abilify**		2		3		5		13		18		21		39		27		40		67		46		113			*		*
Metabolics		6		6		12		4		16		5		21		4		7		11		5		16			25	%	—
Glucophage franchise		6		6		12		4		16		5		21		4		7		11		5		16			25	%	—
Other Pharmaceuticals
Efferalgan		78		59		137		61		198		76		274		88		55		143		66		209			8	%	6	%
NUTRITIONALS		246		255		501		254		755		255		1,010		271		281		552		281		833			11	%	10	%
Enfamil		64		66		130		66		196		67		263		73		79		152		62		214			-6	%	9	%
RELATED HEALTHCARE		169		189		358		189		547		208		755		186		202		388		190		578			1	%	6	%
CONVATEC		146		163		309		165		474		179		653		162		176		338		168		506			2	%	7	%
Ostomy		87		96		183		96		279		105		384		93		101		194		96		290			—		4	%
Wound Therapeutics		57		64		121		68		189		72		261		67		74		141		70		211			3	%	12	%
MEDICAL IMAGING		19		24		43		22		65		26		91		21		24		45		21		66			-5	%	2	%
Cardiolite		9		13		22		10		32		13		45		11		12		23		11		34			10	%	6	%
CONSUMER MEDICINES		4		2		6		2		8		3		11		3		2		5		1		6			-50	%	-25	%

* This table presents Total Company sales on a legal entity source basis and segment and product sales on a country management reported basis.

As a result, the sum of segment sales does not tie to Total Company sales.

** Includes alliance revenue from the co-promotional agreement with Otsuka Pharmaceutical Co., Ltd.

*** In excess of +/-200%

BRISTOL-MYERS SQUIBB COMPANY

EARNINGS FROM CONTINUING OPERATIONS BEFORE MINORITY INTEREST AND INCOME TAXES

EXCLUDING SPECIFIED ITEMS

($ in millions)

	2005
	Q1			Q2			Q3						TOTAL YEAR
Earnings from Continuing Operations Before Minority Interest and Income Taxes	$	928		$	1,130		$	1,626					$	3,684
Specified items:
Gain on sale of equity investment		(18	)		(9	)		—						(27	)
Litigation reserves		124			269			—						393
Insurance recoveries		—			(295	)		(26	)					(321	)
Provision for restructuring / other		68			94			31						193
Gain on sale of businesses		—			—			(569	)					(569	)
Earnings from Continuing Operations Before Minority Interest and Income Taxes Excluding Specified Items	$	1,102		$	1,189		$	1,062					$	3,353
	2004
	Q1			Q2			Q3			Q4			TOTAL YEAR
Earnings from Continuing Operations Before Minority Interest and Income Taxes	$	1,464		$	769		$	1,146		$	1,039		$	4,418
Specified items:
Gain on sale of businesses		(295	)		(18	)		(3	)		(4	)		(320	)
In-process research and development		—			62			1			—			63
Provision for restructuring / other		34			42			115			76			267
Litigation reserves		—			455			36			16			507
Earnings from Continuing Operations Before Minority Interest and Income Taxes Excluding Specified Items	$	1,203		$	1,310		$	1,295		$	1,127		$	4,935

BRISTOL-MYERS SQUIBB COMPANY

DILUTED EARNINGS PER COMMON SHARE FROM CONTINUING OPERATIONS

EXCLUDING SPECIFIED ITEMS

	2005
	Q1			Q2			Q3					TOTAL YEAR*
Diluted Earnings per Common Share from Continuing Operations	$	0.27		$	0.50		$	0.49				$	1.27
Specified items:
Gain on sale of equity investment		(0.01	)		—			—					(0.01	)
Litigation reserves		0.05			0.10			—					0.15
Insurance recoveries		—			(0.09	)		(0.01	)				(0.10	)
Provision for restructuring / other		0.03			0.03			0.02					0.07
Gain on sale of businesses		—			—			(0.19	)				(0.19	)
Tax items		—			(0.07	)		—					(0.07	)
Diluted Earnings per Common Share from Continuing Operations Excluding Specified Items	$	0.34		$	0.47		$	0.31				$	1.12
	2004
	Q1			Q2			Q3			Q4		TOTAL YEAR
Diluted Earnings per Common Share from Continuing Operations	$	0.49		$	0.27		$	0.38		$	0.07	$	1.21
Specified items:
Gain on sale of businesses		(0.09	)		(0.01	)		—			—		(0.10	)
In-process research and development		—			0.03			—			—		0.03
Provision for restructuring / other		0.01			0.02			0.04			0.03		0.10
Litigation reserves		—			0.15			0.01			—		0.16
Tax items		—			—			0.01			0.29		0.30
Diluted Earnings per Common Share from Continuing Operations Excluding Specified Items	$	0.41		$	0.46		$	0.44		$	0.39	$	1.70

* amounts may not add due to rounding of individual calculations.

BRISTOL-MYERS SQUIBB COMPANY

SPECIFIED ITEMS

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2005 AND 2004

($ in millions)

	Cost of products sold		Gain on sale of business			Provision for restructuring and other items, net			Litigation settlement income			Other expense, net		Total
Three months ended September 30, 2005
Litigation Matters:
Insurance recoveries	$	—	$	—		$	—		$	(26	)	$	—	$	(26	)
Other:
Gain on sale of Consumer Medicines businesses		—		(569	)		—			—			—		(569	)
Loss on sale of fixed assets		—		—			—			—			1		1
Accelerated depreciation and asset impairment		35		—			—			—			—		35
Downsizing and streamlining of worldwide operations		—		—			(5	)		—			—		(5	)
	$	35	$	(569	)	$	(5	)	$	(26	)	$	1		(564	)
Income taxes on items above															202
Increase to Net Earnings from Continuing Operations														$	(362	)

	Cost of products sold		Research and development		Acquired in-process research and development		Gain on sale of business			Provision for restructuring and other items, net		Litigation settlement expense		Other expense, net		Total
Three months ended September 30, 2004
Litigation Matters:
Product liability	$	—	$	—	$	—	$	—		$	—	$	—	$	11	$	11
Anti-trust litigation		—		—		—		—			—		25		—		25
		—		—		—		—			—		25		11		36
Other:
Gain on sale of Adult Nutritional business		—		—		—		(3	)		—		—		—		(3	)
Accelerated depreciation		47		1		—		—			—		—		—		48
Downsizing and streamlining of worldwide operations		—		—		—		—			57		—		—		57
Milestone payment		—		10		—		—			—		—		—		10
Acordis IPR&D write-off		—		—		1		—			—		—		—		1
	$	47	$	11	$	1	$	(3	)	$	57	$	25	$	11		149
Income taxes on items above																	(39	)
Reduction to Net Earnings from Continuing Operations																$	110

BRISTOL-MYERS SQUIBB COMPANY

SPECIFIED ITEMS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2005 AND 2004

($ in millions)

	Cost of products sold		Research and development		Gain on sale of business			Litigation settlement expense/ (income)			Other (income)/ expense, net			Total
Nine months ended September 30, 2005
Litigation Matters:
Private litigations and governmental investigations	$	—	$	—	$	—		$	373		$	—		$	373
ERISA liability and other matters		—		—		—			20			—			20
Insurance recoveries		—		—		—			(321	)		—			(321	)
		—		—		—			72			—			72
Other:
Gain on sale of equity investment		—		—		—			—			(27	)		(27	)
Loss on sale of fixed assets		—		—		—			—			18			18
Accelerated depreciation and asset impairment		69		2		—			—			—			71
Gain on sale of Consumer Medicines businesses		—		—		(569	)		—			—			(569	)
Upfront and milestone payments		—		35		—			—			—			35
Debt retirement costs		—		—		—			—			69			69
	$	69	$	37	$	(569	)	$	72		$	60			(331	)
Income taxes on items above															178
Adjustment to taxes on repatriation of foreign earnings															(135	)
Reduction to Net Earnings from Continuing Operations														$	(288	)

	Cost of products sold			Research and development		Acquired in-process research and development		Gain on sale of business			Provision for restructuring and other items, net		Litigation settlement expense		Other expense, net		Total
Nine months ended September 30, 2004
Litigation Matters:
Private litigation and governmental	$	—		$	—	$	—	$	—		$	—	$	320	$	—	$	320
investigations
Product liability		75			—		—		—			—		—		11		86
Pharmaceutical pricing and sales		—			—		—		—			—		34		—		34
litigation
Commercial litigation		26			—		—		—			—		—		—		26
Anti-trust litigation		—			—		—		—			—		50		—		50
Product liability insurance recovery		(25	)		—		—		—			—		—		—		(25	)
		76			—		—		—			—		404		11		491
Other:
Gain on sale of Adult Nutritional		—			—		—		(316	)		—		—		—		(316	)
business
Accelerated depreciation		70			1		—		—			—		—		4		75
Downsizing and streamlining of		1			—		—		—			75		—		—		76
worldwide operations
Milestone payments		—			40		—		—			—		—		—		40
Acordis IPR&D write-off		—			—		63		—			—		—		—		63
	$	147		$	41	$	63	$	(316	)	$	75	$	404	$	15		429
Income taxes on items above																		(94	)
Reduction to Net Earnings from Continuing Operations																	$	335

BRISTOL-MYERS SQUIBB COMPANY

SELECT BALANCE SHEET INFORMATION

($ in millions)

	March 31, 2004		June 30, 2004		September 30, 2004		December 31, 2004		March 31, 2005		June 30, 2005		September 30, 2005		December 31, 2005
Cash, cash equivalents and marketable debt securities	$	6,725	$	6,913	$	7,318	$	7,474	$	5,982	$	3,040	$	3,781
Receivables, net of allowances		3,106		3,508		3,808		4,373		3,647		3,315		3,306
Short-term borrowings		884		1,078		1,715		1,883		244		292		277
Long-term debt		8,635		8,376		8,540		8,463		8,326		6,008		5,895
Stockholders’ equity		10,533		10,431		10,663		10,202		10,381		10,801		11,268
Capital Expenditures and Capitalized Software		163		140		174		199		181		171		185

BRISTOL-MYERS SQUIBB COMPANY

2005 DILUTED EPS FROM CONTINUING OPERATIONS

IMPACT OF PROJECTED SPECIFIED ITEMS

	Diluted EPS Impact
Anticipated restructuring/other	$	(0.05	)
Licensing milestones		(0.02	)
Debt retirement costs		(0.02	)
Litigation Reserves		(0.15	)
Insurance recoveries		0.10
Gain on sales of equity investment		0.01
Gain on sale of Consumer Medicines		0.19
Adjustment to deferred taxes on repatriation of foreign earnings		0.07
Total	$	0.13

BRISTOL-MYERS SQUIBB COMPANY

ESTIMATED MONTHS ON HAND OF TOP 15 U.S. PHARMACEUTICAL PRODUCTS

IN THE U.S. WHOLESALER DISTRIBUTION CHANNEL

The following table sets forth, for each of the Company’s top 15 pharmaceutical products sold by the Company’s U.S. Pharmaceuticals business (based on 2004 net sales), the amount of the U.S. Pharmaceutical business’s net sales of the applicable product for each of the three months through September 30, 2005 and the estimated number of months on hand of the applicable product in the U.S. wholesaler distribution channel at the end of each quarter.

	September 30, 2004			December 31, 2004				March 31, 2005				June 30, 2005				September 30, 2005
	Net Sales		Months on Hand	Net Sales			Months on Hand	Net Sales		Months on Hand		Net Sales			Months on Hand	Net Sales		Months on Hand
	($ in millions)			($ in millions)				($ in millions)				($ in millions)				($ in millions)
Abilify	$	152	0.6	$	170		0.9	$	161	0.7		$	200		0.7	$	214	0.9
Avapro/Avalide		148	0.6		154		0.9		102	0.8			157		0.6		147	0.5
Cefzil		30	0.6		60		1.1		50	0.7			30		0.8		27	0.7
Coumadin		58	0.9		69		1.0		42	1.0			42		0.7		49	0.6
Dovonex		34	0.7		40		0.9		30	0.6			36		0.7		31	0.6
Erbitux*		83	0.2		88		0.2		87		**		97		—		106	—
Glucophage Franchise		39	1.0		48		1.1		39	1.0			44		0.8		38	0.7
Paraplatin		145	1.2		(12	)	1.2		15	0.9			(1	)	0.8		9	1.1
Plavix		781	0.6		816		0.9		673	0.8			823		0.6		833	0.4
Pravachol		318	0.6		433		1.0		258	0.8			353		0.7		297	0.5
Reyataz		75	0.6		99		0.9		92	0.8			98		0.8		105	0.6
Sustiva		95	0.7		103		0.8		103	0.8			97		0.8		101	0.6
Tequin		31	0.7		39		0.9		38	0.7			22		0.8		21	0.9
Videx/Videx EC		27	0.6		25		0.9		10	1.2			5		1.0		7	1.1
Zerit		34	0.7		31		0.9		26	0.8			26		0.8		24	0.8

The Company determines the above months on hand estimates by dividing the estimated amount of the product in the wholesaler distribution channel by the estimated amount of out-movement of the product over a period of thirty-one days calculated as described below. Factors that may influence the Company’s estimates include generic competition, seasonality of products, wholesaler purchases in light of increases in wholesaler list prices, new product launches, new warehouse openings by wholesalers and new customer stockings by wholesalers. In addition, such estimates are calculated using data from third parties which data are a product of the third parties’ own record-keeping processes and such third-party data also may reflect estimates.

Estimates of product in the wholesaler distribution channel and out-movement are based on weekly information received directly from third-parties, and excludes any inventory held by intermediaries such as retailers and hospitals, and excludes goods in transit to such wholesalers. The Company determines the amount of out-movement of a product over a period of thirty-one days by using the most recent out-movement of a product as provided by these third parties, adjusted to reflect the Company’s estimate of goods in transit to these wholesalers. The Company estimates the amount of goods in transit by using information provided by these wholesalers with respect to their open orders and the Company’s records of sales to these wholesalers with respect to such open orders.

* To help maintain the product quality of the Company’s biologic oncology product, ERBITUX, the product is shipped only to end-users and not to other intermediaries (such as wholesalers) to hold for later sales. During 2004 and through May 2005, one of the Company’s wholesalers provided warehousing, packing and shipping services for ERBITUX. Such wholesaler held ERBITUX inventory on consignment and, under the Company’s revenue recognition policy, the Company recognized revenue when such inventory was shipped by the wholesaler to the end-user. The above estimates of months on hand for the three months ended March 31, 2005, were calculated by dividing the inventories of ERBITUX held by the wholesaler for its own account as reported by the wholesaler as of the end of the quarter by the Company’s net sales for the last calendar month of the quarter. The inventory levels reported by the wholesaler are a product of the wholesaler’s own record-keeping process. After the divestiture of OTN in May 2005, the Company no longer had consignment inventory at the wholesaler, and recognized revenue upon shipment to that wholesaler, consistent with its terms of sale and revenue recognition policy. At September 30, 2005, there was no ERBITUX inventory held by wholesalers.

** Less than 0.1 months on hand.

BRISTOL-MYERS SQUIBB COMPANY

ESTIMATED MONTHS ON HAND OF TOP INTERNATIONAL PHARMACEUTICALS PRODUCTS

The following table sets forth for each of the Company’s key products sold by the reporting segments listed below, the net sales of the applicable product for the three months ended March 31, 2005 and June 30, 2005 and the estimated number of months on hand of the applicable product in the direct customer distribution channel for the reporting segment as of March 31, 2005 and June 30, 2005. The estimates of months on hand for key products described below for the International Pharmaceuticals reporting segment are based on data collected for all of the Company’s significant business units outside of the United States.

	March 31, 2005			June 30, 2005
	Net Sales		Months on Hand	Net Sales		Months on Hand
	(dollars in millions)			(dollars in millions)
International Pharmaceuticals
Abilify	$	27	0.6	$	40	0.6
Avapro/Avalide		94	0.4		101	0.4
Bufferin		26	0.5		32	1.0
Capoten		42	0.8		42	0.8
Dafalgan		40	1.3		33	0.8
Efferalgan		88	0.9		55	0.5
Maxipime		46	0.7		52	0.8
Monopril		56	0.6		52	0.7
Paraplatin		29	0.6		34	0.6
Perfalgan		42	0.5		42	0.6
Plavix		141	0.7		145	0.5
Pravachol		262	0.7		272	0.7
Reyataz		57	0.6		85	0.8
Sustiva		70	0.5		70	0.6
Taxol		201	0.5		182	0.5
Videx/Videx EC		39	0.8		38	0.9
Zerit		33	0.6		33	0.6
Nutritionals
Enfamil		235	0.9		250	0.9
Nutramigen		44	1.0		47	1.0
Related Healthcare
ConvaTec
Ostomy		127	0.9		139	0.9
Wound Therapeutics		97	0.8		103	0.8
Medical Imaging
Cardiolite		102	0.7		108	0.7
Consumer Products
Excedrin		39	1.6		38	1.5

The above months on hand information represents the Company’s estimates of aggregate product level inventory on hand at direct customers as of March 31, 2005 and June 30, 2005 divided by the expected demand for the applicable product. Expected demand is the estimated ultimate patient/consumer demand calculated based on estimated end-user consumption or direct customer outmovement data over the most recent thirty-one day period or other reasonable period. Factors that may affect the Company’s estimates include generic competition, seasonality of products, direct customer purchases in light of price increases, new product launches, new warehouse openings by direct customers, new customer stockings by direct customers and expected direct customer purchases for governmental bidding situations.

International Pharmaceuticals, Mead Johnson Nutritionals and Related Healthcare

The following table sets forth for each of the Company’s key pharmaceutical products sold by the Company’s International Pharmaceuticals reporting segment, including the top 15 pharmaceutical products sold in the Company’s major non-U.S. countries (based on 2004 net sales), and for each of the key products sold by the other reporting segments listed below: a) the net sales as of September 30, 2005, June 30, 2005 and March 31, 2005; and b) the estimated number of months on hand in the direct customer distribution channel as of September 30, 2005, June 30, 2005 and March 31, 2005. The estimates of months on hand for key products described below for the International Pharmaceuticals reporting segment are based on data collected for all of the Company’s significant business units outside of the United States. For the other reporting segments, estimates of demand are based on data collected for the United States and all significant business units outside of the United States. Corresponding information for the top 15 pharmaceutical products (based on 2004 net sales) sold by the U.S. Pharmaceuticals business, appears in the Company’s Quarterly Report on Form 10-Q for the period ended September 30, 2005.

		Three Months Ended September 30, 2005		As of September 30, 2005	Three Months Ended June 30, 2005		As of June 30, 2005	Three Months Ended March 31, 2005		As of March 31, 2005
Reporting Segment	Product	Net Sales (in millions)		Months on Hand	Net Sales (in millions)		Months on Hand	Net Sales (in millions)		Months on Hand
International Pharmaceuticals
	Pravachol	$	230	0.8	$	272	0.7	$	262	0.7
	Taxol		171	0.5		182	0.5		201	0.5
	Plavix*		147	0.6		145	0.5		141	0.7
	Avapro*/Avalide*		104	0.5		101	0.4		94	0.4
	Reyataz		71	0.9		85	0.8		57	0.6
	Sustiva		69	0.6		70	0.6		70	0.5
	Efferalgan		66	1.1		55	0.5		88	0.9
	Monopril		48	1.0		52	0.7		56	0.6
	Abilify		46	0.8		40	0.6		27	0.6
	Maxipime		40	0.7		52	0.8		46	0.7
	Capoten		38	0.9		42	0.8		42	0.8
	Perfalgan		38	0.7		42	0.6		42	0.5
	Dafalgan		34	1.3		33	0.8		40	1.3
	Videx/Videx EC		34	0.9		38	0.9		39	0.8
	Paraplatin		33	0.6		34	0.6		29	0.6
	Bufferin		31	0.6		32	1.0		26	0.5
	Zerit		27	0.7		33	0.6		33	0.6
Nutritionals
	Enfamil		230	0.9		250	0.9		235	0.9
	Nutramigen		44	1.1		47	1.0		44	1.0
Related Healthcare
ConvaTec
	Ostomy		139	0.9		139	0.9		127	0.9
	Wound Therapeutics		104	0.8		103	0.8		97	0.8
Medical Imaging
	Cardiolite		106	0.8		108	0.7		102	0.7
Consumer Products
	Excedrin**		29	N/A		39	1.5		38	1.6

The following table sets forth for each of the Company’s key pharmaceutical products sold by the Company’s International Pharmaceuticals reporting segment, including the top 15 pharmaceutical products sold in the Company’s major non-U.S. countries (based on 2004 net sales), and for each of the key products sold by the other reporting segments listed below the percentage change in the Company’s estimated ultimate patient/consumer demand for the month of September 2005 compared to, the month of June 2005, and the month of June 2005, compared to the month of March 2005.

		Percentage Change in Demand September 2005 vs. June 2005 On a Constant U.S. Dollar basis		Percentage Change in Demand June 2005 vs. March 2005 on a Constant U.S. Dollar basis
Reporting Segment	Product
International Pharmaceuticals
	Pravachol	-16	%	7	%
	Taxol	-4	%	-17	%
	Plavix*	-1	%	2	%
	Avapro*/Avalide*	-13	%	14	%
	Reyataz	4	%	-5	%
	Sustiva	-1	%	-7	%
	Efferalgan	39	%	-43	%
	Monopril	-26	%	-2	%
	Abilify	1	%	50	%
	Maxipime	-13	%	-15	%
	Capoten	-10	%	0	%
	Perfalgan	-13	%	5	%
	Dafalgan	-4	%	-17	%
	Videx/Videx EC	-14	%	3	%
	Paraplatin	-4	%	2	%
	Bufferin	2	%	-21	%
	Zerit	-21	%	-5	%
Nutritionals
	Enfamil	1	%	6	%
	Nutramigen	-2	%	5	%
Related Healthcare
ConvaTec
	Ostomy	7	%	0	%
	Wound Therapeutics	-3	%	14	%
Medical Imaging
	Cardiolite	-6	%	-5	%
Consumer Products
	Excedrin**	N/A		-13	%

* Indicates brand names of products, which are registered trademarks not owned by the company or its subsidiaries.

** Data is not available. The product was included in the divestiture of the Company’s Consumer Medicines Business in the United States and Canada which was completed during the Third Quarter of 2005.

The above months on hand information represents the Company’s estimates of aggregate months on hand product inventory levels at direct customers as of September 30, 2005, June 30, 2005 and March 31, 2005divided by the expected demand for the applicable product. Expected demand is the estimated ultimate patient/consumer demand calculated based on estimated end-user consumption or direct customer outmovement data over the most recent thirty-one day period or other reasonable period. Factors that may affect the Company’s estimates include generic competition, seasonality of products, direct customer purchases in light of price increases, new product launches, new warehouse openings by direct customers, new customer stockings by direct customers and expected direct customer purchases for governmental bidding situations.

The Company relies on a variety of methods to calculate months on hand product inventory levels and ultimate patient/consumer demand for these reporting segments. Where available, the Company relies on information provided by third parties to determine estimates of aggregate months on hand product inventory levels at direct customers and ultimate patient/consumer expected demand. For the reporting segments listed above, however, the Company has limited information on direct customer months on hand product inventory levels, end-user consumption and direct customer outmovement data. Further, the quality of third party information, where available, varies widely. In some circumstances, such as the case with new products or seasonal products, such historical end-user consumption or outmovement information may not be available or applicable. In such cases, the Company uses estimated prospective demand. In cases where direct customer product level inventory, ultimate patient/consumer demand or outmovement data do not exist or are otherwise not available, the Company has developed a variety of other methodologies to calculate estimates of such data, including using such factors as historical sales made to direct customers and third party market research data related to prescription trends and end-user demand. Such data from third parties are a product of the third parties’ own record-keeping processes and also may reflect estimates.

As of September 30, 2005, Efferalgan and Dafalgan, key analgesic products sold principally in Europe, had approximately 1.1 and 1.3 months of inventory on hand, respectively, at direct customers. The level of inventory on hand is due primarily to private pharmacists purchasing Efferalgan and Dafalgan approximately once every eight weeks and the seasonality of the products.

As of September 30, 2005, Nutramigen and Prosobee, infant nutritional products sold principally in the United States, had approximately 1.1 months of inventory on hand at direct customers. The level of inventory on hand is due primarily to the impact of retailers holding higher levels of inventory in response to Hurricane Katrina. The Company plans to continue to monitor sales of Nutramigen and Prosobee with the intention of working down wholesaler inventory levels to less than one month on hand.

As previously disclosed, the Company has established a company-wide policy to limit its sales to direct customers for the purpose of complying with the SEC Consent Order. This policy includes the adoption of various procedures to monitor and limit sales to direct customers in accordance with the terms of the Consent. These procedures include a governance process to escalate to appropriate management levels any potential questions or concerns regarding compliance with the policy and timely resolution of such questions or concerns. Compliance with the policy will be monitored on a regular basis.

In addition, the Company maintains arrangements with various wholesalers/direct customers and other distributors of its pharmaceutical products outside of the United States, based on the Company’s business needs and the requirements of certain countries and regions. Some of these agreements require the direct customers to provide the Company with information on months on hand product inventory levels and product outmovement. In limited circumstances, where logistical issues exist, such as the time required to transport products to remote locations and local practices, including in some cases, government requirements, some agreements require direct customers to hold specific levels of inventory ranging from

one to three months of product on hand. The Company maintains these agreements to support the high levels of customer service requirements in these countries and regions, including ensuring the availability of life saving and important therapeutic agents.

The Company continuously seeks to improve the quality of its estimates of months on hand of inventories held by its direct customers, including thorough review of its methodologies and processes for calculation of these estimates and review and analysis of it own and third parties’ data used in such calculations. The Company expects that it will continue to review and refine its methodologies and processes for calculation of these estimates and will continue to review and analyze its own and third parties’ data in such calculations. The Company also has and will continue to take steps to expedite the receipt and processing of data for the non-U.S. Pharmaceutical business.