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)

	2005																					2006																	% 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
Pharmaceuticals	$	3,578		$	3,886		$	7,464		$	3,778		$	11,242		$	4,012		$	15,254		$	3,700		$	3,859		$	7,559		$	3,154		$	10,713				-17	%	-5	%
US Pharmaceuticals		1,767			2,084			3,851			2,069			5,920			2,220			8,140			2,064			2,197			4,261			1,609			5,870				-22	%	-1	%
Primary Care		1,258			1,539			2,797			1,486			4,283			1,653			5,936			1,409			1,441			2,850			819			3,669				-45	%	-14	%
Oncology/Virology		348			345			693			370			1,063			391			1,454			419			458			877			494			1,371				34	%	29	%
Neuroscience		161			200			361			213			574			176			750			231			280			511			262			773				23	%	35	%
Immunoscience		—			—			—			—			—			—			—			5			18			23			34			57				—		—
Latin America/Canada		258			306			564			285			849			325			1,174			288			303			591			300			891				5	%	5	%
Europe and Middle East Medicines		1,201			1,112			2,313			1,030			3,343			1,053			4,396			1,024			1,000			2,024			886			2,910				-14	%	-13	%
Asia/Pacific Medicines		299			329			628			342			970			354			1,324			279			320			599			318			917				-7	%	-5	%
Nutritionals		526			548			1,074			547			1,621			584			2,205			565			582			1,147			582			1,729				6	%	7	%
Other Health Care		428			455			883			442			1,325			423			1,748			411			430			841			418			1,259				-5	%	-5	%
ConvaTec		228			247			475			250			725			267			992			230			262			492			265			757				6	%	4	%
Medical Imaging		145			151			296			150			446			156			602			181			168			349			153			502				2	%	13	%
Consumer Medicines		55			57			112			42			154			—			154			—			—			—			—			—				-100	%	-100	%
Total Company	$	4,532		$	4,889		$	9,421		$	4,767		$	14,188		$	5,019		$	19,207		$	4,676		$	4,871		$	9,547		$	4,154		$	13,701				-13	%	-3	%
	2005																					2006																	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
% of Total Sales
Pharmaceuticals		79.0	%		79.5	%		79.2	%		79.3	%		79.2	%		79.9	%		79.4	%		79.1	%		79.2	%		79.2	%		75.9	%		78.2	%			(340	)	(100	)
US Pharmaceuticals		39.0	%		42.6	%		40.9	%		43.4	%		41.7	%		44.2	%		42.4	%		44.1	%		45.1	%		44.6	%		38.7	%		42.8	%			(470	)	110
Primary Care		27.8	%		31.4	%		29.7	%		31.2	%		30.2	%		32.9	%		30.9	%		30.1	%		29.6	%		29.9	%		19.7	%		26.8	%			(1150	)	(340	)
Oncology/Virology		7.7	%		7.1	%		7.4	%		7.8	%		7.5	%		7.8	%		7.6	%		9.0	%		9.4	%		9.2	%		11.9	%		10.0	%			410		250
Neuroscience		3.5	%		4.1	%		3.8	%		4.4	%		4.0	%		3.5	%		3.9	%		4.9	%		5.7	%		5.3	%		6.3	%		5.6	%			190		160
Immunoscience		—			—			—			—			—			—			—			0.1	%		0.4	%		0.2	%		0.8	%		0.4	%			80		40
Latin America/Canada		5.7	%		6.3	%		6.0	%		6.0	%		6.0	%		6.5	%		6.1	%		6.2	%		6.2	%		6.2	%		7.2	%		6.5	%			120		50
Europe and Middle East Medicines		26.5	%		22.7	%		24.6	%		21.6	%		23.6	%		21.0	%		22.9	%		21.9	%		20.5	%		21.2	%		21.3	%		21.2	%			(30	)	(240	)
Asia/Pacific Medicines		6.6	%		6.7	%		6.7	%		7.2	%		6.8	%		7.1	%		6.9	%		6.0	%		6.6	%		6.3	%		7.7	%		6.7	%			50		(10	)
Nutritionals		11.6	%		11.2	%		11.4	%		11.5	%		11.4	%		11.7	%		11.5	%		12.1	%		12.0	%		12.0	%		14.0	%		12.6	%			250		120
Other Health Care		9.4	%		9.3	%		9.4	%		9.2	%		9.4	%		8.4	%		9.1	%		8.8	%		8.8	%		8.8	%		10.1	%		9.2	%			90		(20	)
ConvaTec		5.0	%		5.0	%		5.1	%		5.2	%		5.1	%		5.3	%		5.2	%		4.9	%		5.4	%		5.2	%		6.4	%		5.5	%			120		40
Medical Imaging		3.2	%		3.1	%		3.1	%		3.1	%		3.2	%		3.1	%		3.1	%		3.9	%		3.4	%		3.6	%		3.7	%		3.7	%			60		50
Consumer Medicines		1.2	%		1.2	%		1.2	%		0.9	%		1.1	%		—			0.8	%		—			—			—			—			—				(90	)	(110	)
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, 2006

($ in millions)

QUARTER-TO-DATE
	Pharmaceuticals Group			Nutritionals			Convatec			Medical Imaging			Consumer Medicines			Continuing Operations
Price Increases/(Decreases)		1	%		4	%		1	%		-10	%		—			1	%
Foreign Exchange		1	%		1	%		2	%		—			—			1	%
Volume		-19	%		1	%		3	%		12	%		-100	%		-15	%
Total Change		-17	%		6	%		6	%		2	%		-100	%		-13	%
Total 2006 Period to Date Sales	$	3,154		$	582		$	265		$	153		$	—		$	4,154
Total 2005 Period to Date Sales	$	3,778		$	547		$	250		$	150		$	42		$	4,767
YEAR-TO-DATE
	Pharmaceuticals Group			Nutritionals			Convatec			Medical Imaging			Consumer Medicines			Continuing Operations
Price Increases/(Decreases)		3	%		4	%		—			-2	%		—			3	%
Foreign Exchange		-1	%		1	%		-1	%		—			—			—
Volume		-7	%		2	%		5	%		15	%		-100	%		-6	%
Total Change		-5	%		7	%		4	%		13	%		-100	%		-3	%
Total 2006 Period to Date Sales	$	10,713		$	1,729		$	757		$	502		$	—		$	13,701
Total 2005 Period to Date Sales	$	11,242		$	1,621		$	725		$	446		$	154		$	14,188

BRISTOL-MYERS SQUIBB COMPANY

CONSOLIDATED STATEMENT OF EARNINGS

CONTINUING OPERATIONS

($ in millions, except per share amounts)

	2005																					2006																	% 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	$	4,532		$	4,889		$	9,421		$	4,767		$	14,188		$	5,019		$	19,207		$	4,676		$	4,871		$	9,547		$	4,154		$	13,701				-13	%	-3	%
Cost of products sold		1,367			1,483			2,850			1,483			4,333			1,595			5,928			1,476			1,568			3,044			1,465			4,509				-1	%	4	%
Marketing, selling and administrative		1,183			1,268			2,451			1,286			3,737			1,369			5,106			1,238			1,181			2,419			1,189			3,608				-8	%	-3	%
Advertising and product promotion		318			365			683			349			1,032			444			1,476			295			352			647			286			933				-18	%	-10	%
Research and development		653			649			1,302			669			1,971			775			2,746			750			740			1,490			756			2,246				13	%	14	%
Provision for restructuring and other items, net		3			2			5			(5	)		—			32			32			1			3			4			2			6				140	%	—
Litigation (income)/charges, net		124			(26	)		98			(26	)		72			197			269			(21	)		(14	)		(35	)		(9	)		(44	)			65	%	-161	%
Gain on sale of business and product asset		—			—			—			(569	)		(569	)		—			(569	)		(200	)		—			(200	)		—			(200	)			100	%	65	%
Equity in net income of affiliates		(69	)		(87	)		(156	)		(84	)		(240	)		(94	)		(334	)		(93	)		(125	)		(218	)		(118	)		(336	)			-40	%	-40	%
Other (income)/expense, net		25			105			130			38			168			(131	)		37			37			56			93			(34	)		59				-189	%	-65	%
Total expenses		3,604			3,759			7,363			3,141			10,504			4,187			14,691			3,483			3,761			7,244			3,537			10,781				13	%	3	%
Earnings from Continuing Operations
Before Minority Interest and Income Taxes		928			1,130			2,058			1,626			3,684			832			4,516			1,193			1,110			2,303			617			2,920				-62	%	-21	%
Provision for income taxes		268			(21	)		247			507			754			178			932			328			256			584			193			777				-62	%	3	%
Minority interest, net of taxes		122			160			282			155			437			155			592			151			187			338			86			424				-45	%	-3	%
Earnings from Continuing Operations	$	538		$	991		$	1,529		$	964		$	2,493		$	499		$	2,992		$	714		$	667		$	1,381		$	338		$	1,719				-65	%	-31	%
Interest expense on conversion of convertible debt bonds, net of tax		4			5			9			6			15			7			22			8			8			16			9			25
Earnings from continuing operations used for diluted earnings per common share calculation	$	542		$	996		$	1,538		$	970		$	2,508		$	506		$	3,014		$	722		$	675		$	1,397		$	347		$	1,744
Diluted Earnings per Common Share Continuing Operations**	$	0.27		$	0.50		$	0.78		$	0.49		$	1.27		$	0.26		$	1.52		$	0.36		$	0.34		$	0.70		$	0.17		$	0.88				-65	%	-31	%
Average Common Shares Outstanding—Diluted		1,981			1,984			1,982			1,984			1,983			1,983			1,983			1,988			1,994			1,992			1,992			1,991				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				—		—
	2005																					2006																	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
% of Net Sales
Gross Margin		69.8	%		69.7	%		69.7	%		68.9	%		69.5	%		68.2	%		69.1	%		68.4	%		67.8	%		68.1	%		64.7	%		67.1	%			(420	)	(240	)
Cost of products sold		30.2	%		30.3	%		30.3	%		31.1	%		30.5	%		31.8	%		30.9	%		31.6	%		32.2	%		31.9	%		35.3	%		32.9	%			420		240
Marketing, selling and administrative		26.1	%		25.9	%		26.0	%		27.0	%		26.3	%		27.3	%		26.6	%		26.5	%		24.2	%		25.3	%		28.6	%		26.3	%			160		0
Advertising and product promotion		7.0	%		7.5	%		7.2	%		7.3	%		7.3	%		8.8	%		7.7	%		6.3	%		7.2	%		6.8	%		6.9	%		6.8	%			(40	)	(50	)
Research and development		14.4	%		13.3	%		13.8	%		14.0	%		13.9	%		15.4	%		14.3	%		16.0	%		15.2	%		15.6	%		18.2	%		16.4	%			420		250
Total expenses		79.5	%		76.9	%		78.2	%		65.9	%		74.0	%		83.4	%		76.5	%		74.5	%		77.2	%		75.9	%		85.1	%		78.7	%			1,920		470
Earnings from Continuing Operations
Before Minority Interest and Provision for Income Taxes		20.5	%		23.1	%		21.8	%		34.1	%		26.0	%		16.6	%		23.5	%		25.5	%		22.8	%		24.1	%		14.9	%		21.3	%			(1,920	)	(470	)
Earnings from Continuing Operations		11.9	%		20.3	%		16.2	%		20.2	%		17.6	%		9.9	%		15.6	%		15.3	%		13.7	%		14.5	%		8.1	%		12.5	%			(1,210	)	(510	)
Other Ratios
Effective Tax Rate		28.9	%		-1.9	%		12.0	%		31.2	%		20.5	%		21.4	%		20.6	%		27.5	%		23.1	%		25.4	%		31.3	%		26.6	%
	2005																					2006																	% 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
Other (Income)/Expense, net
Interest expense	$	97		$	73		$	170		$	79		$	249		$	100		$	349		$	116		$	124		$	240		$	130		$	370				65	%	49	%
Interest income		(45	)		(23	)		(68	)		(28	)		(96	)		(52	)		(148	)		(62	)		(65	)		(127	)		(74	)		(201	)			-164	%	-109	%
Foreign exchange transaction (gains)/losses		12			35			47			—			47			11			58			(12	)		23			11			(11	)		—				—		-100	%
Other, net		(39	)		20			(19	)		(13	)		(32	)		(190	)		(222	)		(5	)		(26	)		(31	)		(79	)		(110	)			*		*
	$	25		$	105		$	130		$	38		$	168		$	(131	)	$	37		$	37		$	56		$	93		$	(34	)	$	59				-189	%	-65	%

* in excess of +/- 200%

** amounts may not calculate due to rounding differences between continuing and discontinued operations.

BRISTOL-MYERS SQUIBB COMPANY

WORLDWIDE NET SALES FROM CONTINUING OPERATIONS BY PRODUCT

QUARTERLY SALES TREND ANALYSIS

($ in millions)

	2005														2006												% 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	$	4,532	$	4,889	$	9,421	$	4,767	$	14,188	$	5,019	$	19,207	$	4,676	$	4,871	$	9,547	$	4,154	$	13,701			-13	%	-3	%
PHARMACEUTICALS		3,578		3,886		7,464		3,778		11,242		4,012		15,254		3,700		3,859		7,559		3,154		10,713			-17	%	-5	%
Cardiovascular		1,712		2,031		3,743		1,935		5,678		2,090		7,768		1,917		1,907		3,824		1,239		5,063			-36	%	-11	%
Plavix		814		968		1,782		980		2,762		1,061		3,823		986		1,145		2,131		630		2,761			-36	%	—
Pravachol		520		625		1,145		527		1,672		584		2,256		536		323		859		192		1,051			-64	%	-37	%
Avapro/ Avalide		196		258		454		251		705		277		982		233		280		513		277		790			10	%	12	%
Coumadin		49		50		99		57		156		56		212		55		55		110		53		163			-7	%	4	%
Monopril		59		54		113		49		162		46		208		48		49		97		34		131			-31	%	-19	%
Virology		430		457		887		440		1,327		450		1,777		468		524		992		532		1,524			21	%	15	%
Reyataz		149		183		332		176		508		188		696		207		236		443		233		676			32	%	33	%
Sustiva Franchise*****		173		167		340		170		510		170		680		175		193		368		201		569			18	%	12	%
Zerit		59		59		118		51		169		47		216		40		41		81		38		119			-25	%	-30	%
Baraclude		—		5		5		2		7		5		12		11		14		25		22		47			*	**	*	**
Infectious Diseases		293		261		554		239		793		286		1,079		199		172		371		169		540			-29	%	-32	%
Cefzil		82		54		136		48		184		75		259		23		23		46		18		64			-63	%	-65	%
Oncology		387		371		758		380		1,138		395		1,533		361		401		762		399		1,161			5	%	2	%
Erbitux		87		98		185		107		292		121		413		138		172		310		175		485			64	%	66	%
Taxol		205		186		391		175		566		181		747		147		149		296		137		433			-22	%	-23	%
Sprycel		—		—		—		—		—		—		—		—		—		—		11		11			—		—
Affective (Psychiatric) Disorders		232		284		516		306		822		267		1,089		323		376		699		354		1,053			16	%	28	%
Abilify**		188		240		428		260		688		224		912		283		324		607		313		920			20	%	34	%
EMSAM		—		—		—		—		—		—		—		—		12		12		3		15			—		—
Immunoscience		—		—		—		—		—		—		—		5		18		23		34		57			—		—
Orencia		—		—		—		—		—		—		—		5		18		23		34		57			—		—
Other Pharmaceuticals
Efferalgan		88		55		143		66		209		74		283		68		62		130		62		192			-6	%	-8	%
NUTRITIONALS		526		548		1,074		547		1,621		584		2,205		565		582		1,147		582		1,729			6	%	7	%
Enfamil		235		250		485		230		715		277		992		237		253		490		246		736			7	%	3	%
Enfagrow		50		49		99		54		153		53		206		67		59		126		69		195			28	%	27	%
OTHER HEALTH CARE		428		455		883		442		1,325		423		1,748		411		430		841		418		1,259			-5	%	-5	%
CONVATEC		228		247		475		250		725		267		992		230		262		492		265		757			6	%	4	%
Ostomy		127		139		266		139		405		145		550		123		141		264		139		403			—		—
Wound Therapeutics		97		103		200		104		304		112		416		98		107		205		113		318			9	%	5	%
MEDICAL IMAGING		145		151		296		150		446		156		602		181		168		349		153		502			2	%	13	%
Cardiolite		102		108		210		106		316		100		416		103		105		208		97		305			-8	%	-3	%
CONSUMER MEDICINES		55		57		112		42		154		—		154		—		—		—		—		—			-100	%	-100	%

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

*** In excess of +/- 200%

***** Beginning in the third quarter of 2006, the Sustiva Franchise includes sales of branded Sustiva, as well as revenue of bulk efavirenz included in the combination therapy, Atripla. Atripla is sold through a joint venture with Gilead Sciences, Inc.

BRISTOL-MYERS SQUIBB COMPANY

DOMESTIC* NET SALES FROM CONTINUING OPERATIONS BY PRODUCT

QUARTERLY SALES TREND ANALYSIS

($ in millions)

																																			% Change in U.S. Total Prescription****
	2005														2006																% Change				NPA				NGPS
	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		Qtr vs. Qtr		YTD vs. YTD
Total Company	$	2,310	$	2,668	$	4,978	$	2,638	$	7,616	$	2,845	$	10,461	$	2,638		$	2,806		$	5,444		$	2,170	$	7,614				-18	%	—
PHARMACEUTICALS		1,777		2,097		3,874		2,082		5,956		2,234		8,190		2,076			2,205			4,281			1,619		5,900				-22	%	-1	%
Cardiovascular		1,080		1,377		2,457		1,328		3,785		1,496		5,281		1,341			1,330			2,671			752		3,423				-43	%	-10	%
Plavix		673		823		1,496		833		2,329		906		3,235		850			988			1,838			474		2,312				-43	%	-1	%	-32	%	-2	%	-35	%	-4	%
Pravachol		258		353		611		297		908		366		1,274		302			128			430			73		503				-75	%	-45	%	-82	%	-51	%	-82	%	-52	%
Avapro/ Avalide		102		157		259		147		406		168		574		139			167			306			159		465				8	%	15	%	3	%	4	%	1	%	2	%
Coumadin		42		42		84		49		133		50		183		47			46			93			45		138				-8	%	4	%	-19	%	-22	%	-18	%	-23	%
Monopril		3		2		5		1		6		3		9		2			1			3			—		3				-100	%	-50	%	-54	%	-54	%	-53	%	-55	%
Virology		231		231		462		239		701		244		945		259			270			529			271		800				13	%	14	%
Reyataz		92		98		190		105		295		110		405		119			122			241			129		370				23	%	25	%	15	%	17	%	17	%	17	%
Sustiva Franchise*****		103		97		200		101		301		102		403		108			115			223			128		351				27	%	17	%	12	%	8	%	13	%	7	%
Zerit		26		26		52		24		76		21		97		19			18			37			19		56				-21	%	-26	%	-30	%	-31	%	-29	%	-31	%
Baraclude		—		5		5		2		7		4		11		9			9			18			14		32				*	**	*	**	*	**	*	**	*	**	*	**
Infectious Diseases		91		57		148		53		201		75		276		12			(3	)		9			25		34				-53	%	-83	%
Cefzil		50		30		80		27		107		46		153		(5	)		(1	)		(6	)		1		(5	)			-96	%	-105	%	-96	%	-90	%	-96	%	-90	%
Oncology		115		112		227		131		358		144		502		159			187			346			201		547				53	%	53	%
Erbitux		87		97		184		106		290		121		411		136			172			308			173		481				63	%	66	%	N/A		N/A		N/A		N/A
Taxol		4		4		8		4		12		5		17		4			4			8			2		10				-50	%	-17	%	N/A		N/A		N/A		N/A
Sprycel		—		—		—		—		—		—		—		—			—			—			11		11				—		—		—		—		—		—
Affective (Psychiatric) Disorders		167		206		373		221		594		183		777		237			286			523			266		789				20	%	33	%
Abilify**		161		200		361		214		575		175		750		231			267			498			260		758				21	%	32	%	18	%	22	%	18	%	23	%
EMSAM		—		—		—		—		—		—		—		—			12			12			3		15				—		—		N/A		N/A		N/A		N/A
Immunoscience		—		—		—		—		—		—		—		5			18			23			34		57				—		—
Orencia		—		—		—		—		—		—		—		5			18			23			34		57				—		—		N/A		N/A		N/A		N/A
Other Pharmaceuticals
Efferalgan		—		—		—		—		—		—		—		—			—			—			—		—				—		—		N/A		N/A		N/A		N/A
NUTRITIONALS		255		267		522		266		788		282		1,070		247			282			529			267		796				—		1	%
Enfamil		162		171		333		168		501		184		685		155			174			329			169		498				1	%	-1	%	N/A		N/A		N/A		N/A
Enfagrow		—		—		—		—		—		—		—		—			—			—			—		—				—		—		N/A		N/A		N/A		N/A
OTHER HEALTH CARE		242		253		495		252		747		225		972		231			226			457			215		672				-15	%	-10	%
CONVATEC		66		71		137		82		219		93		312		73			85			158			84		242				2	%	11	%
Ostomy		34		38		72		43		115		46		161		34			41			75			39		114				-9	%	-1	%	N/A		N/A		N/A		N/A
Wound Therapeutics		30		29		59		34		93		40		133		30			34			64			36		100				6	%	8	%	N/A		N/A		N/A		N/A
MEDICAL IMAGING		124		127		251		129		380		132		512		158			141			299			131		430				2	%	13	%
Cardiolite		91		96		187		95		282		88		370		91			91			182			86		268				-9	%	-5	%	N/A		N/A		N/A		N/A
CONSUMER MEDICINES		52		55		107		41		148		—		148		—			—			—			—		—				-100	%	-100	%

* 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%

**** The estimated total U.S. prescription growth for the retail and mail order channels are calculated based on National Prescription Audit (NPA) and Next-Generation Prescription Services (NGPS) data provided by IMS Health, a supplier of market research for the pharmaceutical industry. The NPA data is based on a simple average of the estimated number of prescriptions in the retail and mail order channels, and the NGPS data is based on a weighted average of the estimated number of prescription units (pills) in each of the retail and mail order channels as provided by IMS.

***** Beginning in the third quarter of 2006, the Sustiva Franchise includes sales of branded Sustiva, as well as revenue of bulk efavirenz included in the combination therapy, Atripla. Atripla is sold through a joint venture with Gilead Sciences, Inc. The change in U.S. total prescriptions growth for the Sustiva Franchise includes both branded Sustiva and Atripla prescription units.

BRISTOL-MYERS SQUIBB COMPANY

INTERNATIONAL* NET SALES FROM CONTINUING OPERATIONS BY PRODUCT

QUARTERLY SALES TREND ANALYSIS

($ in millions)

	2005														2006												% 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	$	2,222	$	2,221	$	4,443	$	2,129	$	6,572	$	2,174	$	8,746	$	2,038	$	2,065	$	4,103	$	1,984	$	6,087			-7	%	-7	%
PHARMACEUTICALS		1,801		1,789		3,590		1,696		5,286		1,778		7,064		1,624		1,654		3,278		1,535		4,813			-9	%	-9	%
Cardiovascular		632		654		1,286		607		1,893		594		2,487		576		577		1,153		487		1,640			-20	%	-13	%
Plavix		141		145		286		147		433		155		588		136		157		293		156		449			6	%	4	%
Pravachol		262		272		534		230		764		218		982		234		195		429		119		548			-48	%	-28	%
Avapro/ Avalide		94		101		195		104		299		109		408		94		113		207		118		325			13	%	9	%
Coumadin		7		8		15		8		23		6		29		8		9		17		8		25			-		9	%
Monopril		56		52		108		48		156		43		199		46		48		94		34		128			-29	%	-18	%
Virology		199		226		425		201		626		206		832		209		254		463		261		724			30	%	16	%
Reyataz		57		85		142		71		213		78		291		88		114		202		104		306			46	%	44	%
Sustiva Franchise*****		70		70		140		69		209		68		277		67		78		145		73		218			6	%	4	%
Zerit		33		33		66		27		93		26		119		21		23		44		19		63			-30	%	-32	%
Baraclude		—		—		—		—		—		1		1		2		5		7		8		15			—		—
Infectious Diseases		202		204		406		186		592		211		803		187		175		362		144		506			-23	%	-15	%
Cefzil		32		24		56		21		77		29		106		28		24		52		17		69			-19	%	-10	%
Oncology		272		259		531		249		780		251		1,031		202		214		416		198		614			-20	%	-21	%
Erbitux		—		1		1		1		2		-		2		2		-		2		2		4			100	%	100	%
Taxol		201		182		383		171		554		176		730		143		145		288		135		423			-21	%	-24	%
Sprycel		—		—		—		—		—		—		—		—		—		—		—		—			—		—
Affective (Psychiatric) Disorders		65		78		143		85		228		84		312		86		90		176		88		264			4	%	16	%
Abilify**		27		40		67		46		113		49		162		52		57		109		53		162			15	%	43	%
EMSAM		—		—		—		—		—		—		—		—		—		—		—		—			—		—
Immunoscience		—		—		—		—		—		—		—		—		—		—		—		—			—		—
Orencia		—		—		—		—		—		—		—		—		—		—		—		—			—		—
Other Pharmaceuticals
Efferalgan		88		55		143		66		209		74		283		68		62		130		62		192			-6	%	-8	%
NUTRITIONALS		271		281		552		281		833		302		1,135		318		300		618		315		933			12	%	12	%
Enfamil		73		79		152		62		214		93		307		82		79		161		77		238			24	%	11	%
Enfagrow		50		49		99		54		153		53		206		67		59		126		69		195			28	%	27	%
OTHER HEALTH CARE		186		202		388		190		578		198		776		180		204		384		203		587			7	%	2	%
CONVATEC		162		176		338		168		506		174		680		157		177		334		181		515			8	%	2	%
Ostomy		93		101		194		96		290		99		389		89		100		189		100		289			4	%	—
Wound Therapeutics		67		74		141		70		211		72		283		68		73		141		77		218			10	%	3	%
MEDICAL IMAGING		21		24		45		21		66		24		90		23		27		50		22		72			5	%	9	%
Cardiolite		11		12		23		11		34		12		46		12		14		26		11		37			—		9	%
CONSUMER MEDICINES		3		2		5		1		6		—		6		—		—		—		—		—			-100	%	-100	%

* 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%

***** Beginning in the third quarter of 2006, the Sustiva Franchise includes sales of branded Sustiva, as well as revenue of bulkefavirenz included in the combination therapy, Atripla. Atripla is sold through a joint venture withGilead Sciences, Inc.

BRISTOL-MYERS SQUIBB COMPANY

WORLDWIDE NET SALES FROM CONTINUING OPERATIONS AND DOMESTIC PHARMACEUTICAL NET SALES

EXCLUDING ESTIMATED IMPACT OF LAUNCH OF GENERIC CLOPIDOGREL BISULFATE

($ in millions)

	2006		2005		% Change
	Q3		Q3		Qtr vs. Qtr
Worldwide Net Sales from Continuing Operations
Worldwide Net Sales from Continuing Operations as Reported	$	4,154	$	4,767	-13%
Estimated impact of launch of generic clopidogrel bisulfate		525 to 600		—	—
Worldwide Net Sales from Continuing Operations Excluding the Estimated Impact of Launch of Generic Clopidogrel Bisulfate	$	4,679 to $4,754	$	4,767	-2% to 0%
Domestic Pharmaceutical Net Sales
Domestic Pharmaceutical Net Sales as Reported	$	1,619	$	2,082	-22%
Estimated impact of launch of generic clopidogrel bisulfate		525 to 600		—	—
Domestic Pharmaceutical Net Sales Excluding the Estimated Impact of Launch of Generic Clopidogrel Bisulfate	$	2,144 to $2,219	$	2,082	3% to 7%

BRISTOL-MYERS SQUIBB COMPANY

GROSS MARGIN

EXCLUDING SPECIFIED ITEMS

($ in millions)

	2006
	Q1			Q2			Q3						TOTAL YEAR
Net Sales	$	4,676		$	4,871		$	4,154					$	13,701
Gross Profit
Gross Profit	$	3,200		$	3,303		$	2,689					$	9,192
Specified items*		46			20			72						138
Gross Profit Excluding Specified Items	$	3,246		$	3,323		$	2,761					$	9,330
Gross Margin %
Gross Margin %		68.4	%		67.8	%		64.7	%					67.1	%
Specified items*		1.0	%		0.4	%		1.7	%					1.0	%
Gross Margin Excluding Specified Items		69.4	%		68.2	%		66.5	%					68.1	%
	2005
	Q1			Q2			Q3			Q4			TOTAL YEAR
Net Sales	$	4,532		$	4,889		$	4,767		$	5,019		$	19,207
Gross Profit
Gross Profit	$	3,165		$	3,406		$	3,284		$	3,424		$	13,279
Specified items*		13			21			35			33			102
Gross Margin Excluding Specified Items	$	3,178		$	3,427		$	3,319		$	3,457		$	13,381
Gross Margin %
Gross Margin %		69.8	%		69.7	%		68.9	%		68.2	%		69.1	%
Specified items*		0.3	%		0.4	%		0.7	%		0.7	%		0.5	%
Gross Margin Excluding Specified Items		70.1	%		70.1	%		69.6	%		68.9	%		69.6	%

* Please refer to the Specified Item - QTD tab for detail of specified items.

BRISTOL-MYERS SQUIBB COMPANY

RESEARCH AND DEVELOPMENT EXPENSES

EXCLUDING SPECIFIED ITEMS

($ in millions)

	2006
	Q1		Q2		Q3				TOTAL YEAR
Research and Development Expenses	$	750	$	740	$	756			$	2,246
Specified items*		18		1		17				36
Research and Development Expenses Excluding Specified Items	$	768	$	741	$	773			$	2,282
	2005
	Q1		Q2		Q3		Q4		TOTAL YEAR
Research and Development Expenses	$	653	$	649	$	669	$	775	$	2,746
Specified items*		36		1		—		35		72
Research and Development Expenses Excluding Specified Items	$	689	$	650	$	669	$	810	$	2,818

* Please refer to the Specified Item - QTD tab for detail of specified items.

BRISTOL-MYERS SQUIBB COMPANY

EFFECTIVE TAX RATE

EXCLUDING SPECIFIED ITEMS

($ in millions)

	2006
	Q1			Q2			Q3						TOTAL YEAR
Provision for Income Taxes
Provision for Income Taxes	$	328		$	256		$	193					$	777
Specified items*		(49	)		(3	)		(34	)					(86	)
Provision for Income Taxes Excluding Specified Items	$	279		$	253		$	159					$	691
Earnings from Continuing Operations Before Minority Interest and Provision for Income Taxes	$	1,193		$	1,110		$	617					$	2,920
Earnings from Continuing Operations Before Minority Interest and Provision for Income Taxes Excluding Specified Items	$	1,081		$	1,120		$	670					$	2,871
Effective Tax Rate
Effective Tax Rate from Continuing Operations		27.5	%		23.1	%		31.3	%					26.6	%
Effective Tax Rate from Continuing Operations Excluding Specified Items		25.8	%		22.6	%		23.7	%					24.1	%
	2005
	Q1			Q2			Q3			Q4			TOTAL YEAR
Provision for Income Taxes
Provision for Income Taxes	$	268		$	(21	)	$	507		$	178		$	932
Specified items*		42			117			(202	)		52			9
Provision for Income Taxes Excluding Specified Items	$	310		$	96		$	305		$	230		$	941
Earnings from Continuing Operations Before Minority Interest and Provision for Income Taxes	$	928		$	1,130		$	1,626		$	832		$	4,516
Earnings from Continuing Operations Before Minority Interest and Provision for Income Taxes Excluding Specified Items	$	1,102		$	1,189		$	1,062		$	986		$	4,339
Effective Tax Rate
Effective Tax Rate from Continuing Operations		28.9	%		-1.9	%		31.2	%		21.4	%		20.6	%
Effective Tax Rate from Continuing Operations Excluding Specified Items		28.1	%		8.1	%		28.7	%		23.3	%		21.7	%

* Please refer to the Specified Item - QTD tab for detail of specified items.

BRISTOL-MYERS SQUIBB COMPANY

EARNINGS FROM CONTINUING OPERATIONS BEFORE MINORITY INTEREST AND INCOME TAXES

EXCLUDING SPECIFIED ITEMS

($ in millions)

	2006
	Q1			Q2			Q3						TOTAL YEAR
Earnings from Continuing Operations Before Minority Interest and Provision for Income Taxes	$	1,193		$	1,110		$	617					$	2,920
Specified items:
Gain on sale of product asset		(200	)		—			—						(200	)
Litigation matters		40			(14	)		(29	)					(3	)
Insurance recoveries		(21	)		—			(9	)					(30	)
Downsizing and streamlining of worldwide operations / other		69			24			91						184
Earnings from Continuing Operations Before Minority Interest and Provision for Income Taxes Excluding Specified Items	$	1,081		$	1,120		$	670					$	2,871
	2005
	Q1			Q2			Q3			Q4			TOTAL YEAR
Earnings from Continuing Operations Before Minority Interest and Provision for Income Taxes	$	928		$	1,130		$	1,626		$	832		$	4,516
Specified items:
Gain on sale of equity investment		(18	)		(9	)		—			—			(27	)
Litigation matters		124			269			—			197			590
Insurance recoveries		—			(295	)		(26	)		—			(321	)
Provision for restructuring / other		68			94			31			95			288
Termination of muraglitizar agreement		—			—			—			(138	)		(138	)
Gain on sale of businesses		—			—			(569	)		—			(569	)
Earnings from Continuing Operations Before Minority Interest and Provision for Income Taxes Excluding Specified Items	$	1,102		$	1,189		$	1,062		$	986		$	4,339

BRISTOL-MYERS SQUIBB COMPANY

DILUTED EARNINGS PER COMMON SHARE FROM CONTINUING OPERATIONS

EXCLUDING SPECIFIED ITEMS

	2006
	Q1			Q2			Q3						TOTAL YEAR *
Diluted Earnings per Common Share from Continuing Operations	$	0.36		$	0.34		$	0.17					$	0.88
Specified items:
Gain on sale of product asset		(0.06	)		—			—						(0.06	)
Litigation matters		0.01			—			(0.01	)					—
Insurance recoveries		(0.01	)		—			—						(0.01	)
Downsizing and streamlining of worldwide operations / other		0.02			0.01			0.04						0.06
Tax item		—			—			0.02						0.02
Diluted Earnings per Common Share from Continuing Operations Excluding Specified Items	$	0.32		$	0.35		$	0.22					$	0.89
	2005
	Q1			Q2			Q3			Q4			TOTAL YEAR *
Diluted Earnings per Common Share from Continuing Operations	$	0.27		$	0.50		$	0.49		$	0.26		$	1.52
Specified items:
Gain on sale of equity investment		(0.01	)		—			—			—			(0.01	)
Litigation matters		0.05			0.10			—			0.06			0.22
Insurance recoveries		—			(0.09	)		(0.01	)		—			(0.10	)
Provision for restructuring / other		0.03			0.03			0.02			0.03			0.10
Termination of muraglitizar agreement		—			—			—			(0.04	)		(0.04	)
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		$	0.31		$	1.43

* quarterly amounts may not add to the annual total due to rounding of individual calculations.

BRISTOL-MYERS SQUIBB COMPANY

SPECIFIED ITEMS

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2006 AND 2005

($ in millions)

Three months ended September 30, 2006
	Cost of products sold		Research and development			Provision for restructuring, net			Litigation income			Other (income)/ expense, net			Total
Litigation Matters:
Insurance recovery	$	—	$	—		$	—		$	(9	)	$	—		$	(9	)
Product liability		—		—			—			—			11			11
Commercial litigation		—		—			—			—			(40	)		(40	)
		—		—			—			(9	)		(29	)		(38	)
Other:
Accelerated depreciation and asset impairment		72		—			—			—			—			72
Downsizing and streamlining of worldwide operations		—		—			2			—			—			2
Upfront and milestone payments		—		17			—			—			—			17
	$	72	$	17		$	2		$	(9	)	$	(29	)		53
Income taxes on items above																(5	)
Minority interest, net of taxes																13
Change in estimate for taxes on prior year items																39
Reduction to Net Earnings from Continuing Operations															$	100
Three months ended September 30, 2005
	Cost of products sold		Gain on sale of business			Provision for restructuring, net			Litigation income			Other expense, net			Total
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	)

BRISTOL-MYERS SQUIBB COMPANY

SPECIFIED ITEMS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2006 AND 2005

($ in millions)

Nine months ended September 30, 2006
	Cost of products sold		Research and development		Marketing selling and administrative		Provision for restructuring, net		Litigation income			Other (income)/ expense, net		Gain on sale of product asset			Total
Litigation Matters:
Insurance recovery	$	—	$	—	$	—	$	—	$	(30	)	$	—	$	—		$	(30	)
Product liability		—		—		—		—		—			11		—			11
Commercial litigations		—		—		—		—		(14	)		—		—			(14	)
		—		—		—		—		(44	)		11		—			(33	)
Other:
Accelerated depreciation, asset impairment and contract termination		138		1		4		—		—			—		—			143
Downsizing and streamlining of worldwide operations		—		—		—		6		—			—		—			6
Upfront and milestone payments		—		35		—		—		—			—		—			35
Gain on sale of product asset		—		—		—		—		—			—		(200	)		(200	)
	$	138	$	36	$	4	$	6	$	(44	)	$	11	$	(200	)		(49	)
Income taxes on items above																		47
Change in estimate for taxes on prior year items																		39
Reduction to Net Earnings from Continuing Operations																	$	37

Nine months ended September 30, 2005
	Cost of products sold		Research and development		Gain on sale of business			Litigation (income) /charges, net			Other (income)/ expense, net			Total
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	)
Increase to Net Earnings from Continuing Operations														$	(288	)

BRISTOL-MYERS SQUIBB COMPANY

SELECT BALANCE SHEET INFORMATION

($ in millions)

	March 31, 2005		June 30, 2005		September 30, 2005		December 31, 2005		March 31, 2006		June 30, 2006		September 30, 2006		December 31, 2006
Cash, cash equivalents and marketable debt securities	$	5,982	$	3,040	$	3,781	$	5,799	$	5,281	$	5,357	$	5,505	$	—
Receivables, net of allowances		3,647		3,315		3,305		3,378		3,236		3,326		2,945		—
Short-term borrowings		244		292		277		231		234		189		630		—
Long-term debt		8,326		6,008		5,895		8,364		8,278		8,239		7,837		—
Stockholders’ equity		10,381		10,801		11,268		11,208		11,556		11,712		11,589		—
Capital expenditures and capitalized software (for the quarter ended)		181		171		185		201		202		160		199		—

BRISTOL-MYERS SQUIBB COMPANY

2006 FULL YEAR PROJECTED DILUTED EPS FROM CONTINUING OPERATIONS

EXCLUDING PROJECTED SPECIFIED ITEMS

	Full Year 2006
Projected Diluted Earnings per Common Share from Continuing Operations	$0.97 to $1.02
Projected Specified Items:
Downsizing and streamlining of worldwide operations	0.08
Licensing and milestone payments	0.02
Gain on sale of product asset	(0.06)
Litigation matters	—
Insurance recoveries	(0.01)
Change in estimate for taxes on prior year items	0.02
Total	0.05
Projected Diluted Earnings per Common Share from Continuing Operations Excluding Specified Items	$1.02 to $1.07

Gross Margin/Tax Rate Projections Excluding Specified Items

Gross margin on a GAAP basis in 2005 was 69.1%, and was 69.6% on a non-GAAP basis. See Gross Margin non comparable tab. Based on historical trends in the first three quarters of 2006 on a non-GAAP basis the Company projects gross margin for the full year 2006 to be 1.5% to 2.0% lower than 2005 non-GAAP level. There is no reasonably accessible or reliable comparable GAAP measure for this forward-looking information on gross margin. For the first nine months of 2006, gross margin on a GAAP basis was 67.1%, which included specified items of $138 million and had a 1.0% adverse impact on gross margin in aggregate. See Gross Margin non comparable tab.

The effective tax rate on a GAAP basis in 2005 was 20.6%, and was 21.7% on a non-GAAP basis. See Tax Rate non comparable tab. Based on historical trends in the first three quarters of 2006 on a non-GAAP basis, the Company projects effective tax rate for the full year 2006 to be in the range of 22% to 24%. There is no reasonably accessible or reliable comparable GAAP measure for this forward-looking information on the tax rate. For the first nine months of 2006, effective tax rate on a GAAP basis was 26.6%, which included specified items of $86 million, and had a 2.5% adverse impact on the effective tax rate in aggregate. See Tax Rate non comparable tab.

The GAAP results for the full year 2006 would include specified items that may occur and impact fourth quarter results. These specified items could include charges and recoveries relating to significant legal proceedings, debt retirement costs and other charges related to new transactions, milestone payments, copromotion or alliance charges and charges for in-process research and development related to new external development transactions, gains or losses from asset disposals and restructuring activities. For a fuller discussion of certain of the litigation and other matters that could impact full year GAAP results, as well as the use of non-GAAP financial information, see Bristol-Myers Squibb Company Reports Financial Results For The Third Quarter And First Nine Months Of 2006, October 26, 2006, including “2006 Guidance” and “Use of Non-GAAP Financial Information” therein.

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 (based on 2005 annual net sales) and other products that the Company views as current and future growth drivers sold by the Company’s U.S. Pharmaceuticals business, the U.S. Pharmaceuticals net sales and the estimated number of months on hand of the applicable product in the U.S. wholesaler distribution channel for the quarters ended September 30, 2006 and 2005 and June 30, 2006 and 2005.

	September 30, 2006			June 30, 2006				September 30, 2005			June 30, 2005
	Net Sales		Months on Hand	Net Sales			Months on Hand	Net Sales		Months on Hand	Net Sales			Months on Hand
	(Dollars in Millions)			(Dollars in Millions)				(Dollars in Millions)			(Dollars in Millions)
Abilify (total revenue)	$	260	0.5	$	267		0.5	$	214	0.9	$	200		0.7
Avapro/Avalide		159	0.4		167		0.5		147	0.5		157		0.6
Baraclude		14	0.6		9		0.7		2	1.2		5		4.7
Cefzil		1	29.2		(1	)	25.7		27	0.7		30		0.8
Coumadin		45	0.7		46		0.8		49	0.6		42		0.7
Erbitux*		173	0.5		172		—		106	—		97		—
Glucophage Franchise		20	0.7		22		0.6		38	0.7		44		0.8
Kenalog		19	0.8		22		0.8		19	0.7		15		0.5
Orencia		34	0.8		18		0.3		—	—		—		—
Paraplatin		5	1.5		2		1.7		9	1.1		(1	)	0.8
Plavix		474	1.5		988		0.5		833	0.4		823		0.6
Pravachol		73	1.0		128		1.0		297	0.5		353		0.7
Reyataz		129	0.5		122		0.6		105	0.6		98		0.8
Sprycel		11	1.2		—		—		—	—		—		—
Sustiva Franchise(a) (total revenue)		128	0.5		115		0.5		101	0.6		97		0.8
Tequin		2	2.3		(6	)	2.7		21	0.9		22		0.8
Videx/Videx EC		3	0.9		5		0.9		7	1.1		5		1.0
Zerit		19	0.7		18		0.7		24	0.8		26		0.8

For all products other than Erbitux, the Company determines the above months on hand estimates by dividing the estimated amount of the product in the U.S. wholesaler distribution channel by the estimated amount of out-movement of the product from the U.S. wholesaler distribution channel over a period of 31 days, all 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 third party data, which represent their own record-keeping processes and as such, may also 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 31 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 was previously 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. Upon the divestiture of OTN in May 2005, the Company discontinued the consignment arrangement with the wholesaler and thereafter did not have ERBITUX* consignment inventory. Following the divestiture, the Company sold ERBITUX* to intermediaries (such as specialty oncology distributors) and shipped ERBITUX* directly to the end-users of the product who are the customers of those intermediaries. Beginning in the third quarter 2006, the Company expanded its distribution model to one of the Company’s wholesalers who then held ERBITUX* inventory at September 30, 2006. The Company recognizes revenue upon such shipment consistent with its revenue recognition policy. The above estimate of months on hand for the three months ended September 30, 2006 was 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.

(a) Beginning in the third quarter of 2006, the Sustiva Franchise includes sales of branded Sustiva, as well as revenue of bulk efavirenz included in the combination therapy, Atripla. The estimated months on hand of the product in the U.S. wholesale distribution channel only include branded Sustiva inventory.

# Less than 0.1 months on hand.

BRISTOL-MYERS SQUIBB COMPANY

ESTIMATED MONTHS ON HAND OF TOP INTERNATIONAL PHARMACEUTICAL

AND WORLDWIDE NON-PHARMACEUTICAL PRODUCTS

The following table, which was posted on the Company’s website and furnished on Form 8-K on August 31, 2006, 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 each of the quarters ended June 30, 2006 and 2005 and March 31, 2006 and 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 the end of each of the four quarters. 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 are based on data collected for the United States and all significant business units outside of the United States.

	June 30, 2006			March 31, 2006			June 30, 2005			March 31, 2005
	Net Sales		Months on Hand	Net Sales		Months on Hand	Net Sales		Months on Hand	Net Sales		Months on Hand
	(Dollars in Millions)			(Dollars in Millions)			(Dollars in Millions)			(Dollars in Millions)
International Pharmaceuticals
Abilify (total revenue)	$	57	0.6	$	52	0.6	$	40	0.6	$	27	0.6
Avapro/Avalide		113	0.5		94	0.5		101	0.4		94	0.4
Baraclude		5	1.0		2	1.1		—	—		—	—
Bufferin		31	0.5		22	0.6		32	1.0		26	0.5
Capoten		31	0.9		35	0.8		42	0.8		42	0.8
Dafalgan		37	1.1		37	1.4		33	0.8		40	1.3
Efferalgan		62	0.9		68	1.2		55	0.5		88	0.9
Maxipime		43	0.8		40	0.8		52	0.8		46	0.7
Monopril		48	1.1		46	1.1		52	0.7		56	0.6
Paraplatin		29	0.6		26	0.6		34	0.6		29	0.6
Perfalgan		51	0.6		46	0.6		42	0.6		42	0.5
Plavix		157	0.5		136	0.5		145	0.5		141	0.7
Pravachol		195	1.4		234	1.5		272	0.7		262	0.7
Reyataz		114	0.7		88	0.6		85	0.8		57	0.6
Sustiva		78	0.5		67	0.5		70	0.6		70	0.5
Taxol		145	0.5		143	0.6		182	0.5		201	0.5
Videx/Videx EC		35	1.2		31	0.8		38	0.9		39	0.8
Nutritionals
Enfamil/Enfagrow		312	0.9		304	0.9		299	0.9		285	0.9
Nutramigen		54	1.0		48	1.0		47	1.0		44	1.0
Other Health Care
ConvaTec
Ostomy		141	1.0		123	0.9		139	0.9		127	0.9
Wound Therapeutics		107	0.9		98	0.9		103	0.8		97	0.8
Medical Imaging
Cardiolite		105	0.8		103	0.8		108	0.7		102	0.7

The above months on hand information represents the Company’s estimates of aggregate product level inventory on hand at direct customers 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 out-movement data over the most recent 31 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 or product presentation launches, new warehouse openings by direct customers, new customer stockings by direct customers and expected direct customer purchases for governmental bidding situations.

U.S. Pharmaceuticals

Estimated End-User Demand

The following tables set forth for each of the Company’s top 15 pharmaceutical products (based on 2005 annual net sales) and other products that the Company views as current and future growth drivers sold by the U.S. Pharmaceuticals business, for the three months ended September 30, 2006 compared to the same periods in the prior year: (a) changes in reported U.S. net sales for the period; (b) estimated total U.S. prescription growth for the retail and mail order channels and the estimated U.S. therapeutic category share of the applicable product, calculated by the Company based on NPA data provided by IMS; and (c) estimated total U.S. prescription change for the retail and mail order channels and the estimated U.S. therapeutic category share of the applicable product, calculated by the Company based on Next-Generation Prescription Services (NGPS) data provided by IMS.

	Three Months Ended September 30, 2006						Month Ended September 30, 2006
	% Change in U.S. Net Sales(a)		% Change in U.S. Total Prescriptions				Estimated TRx Therapeutic Category Share%(d)
			NPA Data(b)		NGPS Data(c)		NPA Data(b)	NGPS Data(c)
ABILIFY* (total revenue)	21		18		18		12	12
AVAPRO*/AVALIDE*	8		3		1		14	14
BARACLUDE(e)	*	*	*	*	*	*	23	20
CEFZIL	(96	)	(96	)	(96	)	—	—
COUMADIN	(8	)	(19	)	(18	)	16	16
ERBITUX*(f)	63		N/A		N/A		N/A	N/A
GLUCOPHAGE* Franchise	(47	)	(51	)	(51	)	1	1
KENALOG(g)	—		N/A		N/A		N/A	N/A
ORENCIA(h)	—		N/A		N/A		N/A	N/A
PARAPLATIN(f)	(44	)	N/A		N/A		N/A	N/A
PLAVIX*	(43	)	(32	)	(35	)	23	21
PRAVACHOL	(75	)	(82	)	(82	)	1	1
REYATAZ	23		15		17		33	33
SPRYCEL	—		—		—		3	3
SUSTIVA Franchise(j) (total revenue)	27		12		13		32	32
TEQUIN	(90	)	(91	)	(91	)	—	—
VIDEX/VIDEX EC	(57	)	(55	)	(56	)	1	1
ZERIT	(21	)	(30	)	(29	)	5	5
	Three Months Ended September 30, 2005						Month Ended September 30, 2005
	% Change in U.S. Net Sales(a)		% Change in U.S. Total Prescriptions				Estimated TRx Therapeutic Category Share%(d)
			NPA Data(b)		NGPS Data(c)		NPA Data(b)	NGPS Data(c)
ABILIFY* (total revenue)	41		38		36		11	11
AVAPRO*/AVALIDE*	(1	)	11		11		15	15
BARACLUDE(e)	—		—		—		8	7
CEFZIL	(10	)	(15	)	(17	)	2	2
COUMADIN	(16	)	(22	)	(25	)	21	20
ERBITUX*(f)	28		N/A		N/A		N/A	N/A
GLUCOPHAGE* Franchise	(3	)	(46	)	(45	)	2	2
KENALOG(g)	111		N/A		N/A		N/A	N/A
ORENCIA(h)	—		N/A		N/A		N/A	N/A
PARAPLATIN(f)	(94	)	N/A		N/A		N/A	N/A
PLAVIX*	7		12		11		86	86
PRAVACHOL	(7	)	(18	)	(17	)	7	7
REYATAZ(i)	40		35		30		31	31
SPRYCEL(k)	—		—		—		—	—
SUSTIVA(i)	6		6		7		30	30
TEQUIN	(32	)	(36	)	(35	)	1	1
VIDEX/VIDEX EC	(74	)	(72	)	(72	)	3	3
ZERIT	(29	)	(31	)	(31	)	7	7

^(a) Reflects percentage change in net sales in dollar terms, including change in average selling prices and wholesaler buying patterns.

1

^(b) Based on a simple average of the estimated number of prescriptions in the retail and mail order channels as provided by IMS.

^(c) Based on a weighted-average of the estimated number of prescription units (tablets or milliliters) in each of the retail and mail order channels based on data provided by IMS.

^(d) The therapeutic categories are determined by the Company as those products considered to be in direct competition with the Company’s own products. The products listed above compete in the following therapeutic categories: ABILIFY* (antipsychotics), AVAPRO*/AVALIDE* (angiotensin receptor blockers), BARACLUDE (oral antiviral agent), CEFZIL (branded oral solid and liquid antibiotics), COUMADIN (warfarin), ERBITUX* (oncology), GLUCOPHAGE* Franchise (oral antidiabetics), KENALOG (intra-articular/intramuscular steroid), ORENCIA (fusion protein), PARAPLATIN (carboplatin), PLAVIX* (antiplatelet agents), PRAVACHOL (HMG CoA reductase inhibitors), REYATAZ (protease inhibitors), SPRYCEL (TKIs for leukemia), SUSTIVA franchise (antiretrovirals—third agents), TEQUIN (branded oral solid antibiotics), VIDEX/VIDEX EC (nucleoside reverse transcriptase inhibitors) and ZERIT (nucleoside reverse transcriptase inhibitors).

^(e) BARACLUDE was launched in the U.S. in April 2005.

^(f) ERBITUX* and PARAPLATIN specifically, and parenterally administered oncology products in general, do not have prescription-level data because physicians do not write prescriptions for these products. The Company believes therapeutic category share information provided by third parties for these products may not be reliable and accordingly, none is presented here.

^(g) The Company does not have prescription level data because the product is not dispensed through a retail pharmacy. The Company believes therapeutic category share information provided by third parties for this product may not be reliable and accordingly, none is presented here.

^(h) ORENCIA was launched in the U.S. in February 2006. The Company does not have prescription level data because the product is not dispensed through a retail pharmacy.

⁽ⁱ⁾ Prior year Estimated TRx Therapeutic Category Share Percentage has been recalculated to conform with current year presentation for the following: CEFZIL has been recalculated as a percentage share based on the combined Oral and Liquid/Suspension markets; REYATAZ has been recalculated as a percentage share of the Protease Inhibitors excluding NORVIR*; SUSTIVA franchise has been recalculated as a percentage share of Third Agents excluding NORVIR* and TRIZIVIR*.

^(j) Beginning in the third quarter of 2006, SUSTIVA Franchise (total revenue) includes sales of SUSTIVA, as well as revenue of bulk efavirenz included in the combination therapy, ATRIPLA*. The therapeutic category share information and change in U.S. total prescriptions growth for SUSTIVA franchise (antiretrovirals – third agents) includes both branded SUSTIVA and ATRIPLA* prescription units.

^(k) SPRYCEL was launched in the U.S. in July 2006.

** In excess of 200%.

The Company has historically reported estimated total U.S. prescription change and estimated therapeutic category share based on NPA data, which IMS makes available to the public on a subscription basis, and a simple average of the estimated number of prescriptions in the retail and mail order channels. In the third quarter of 2005, the Company began disclosing estimated total U.S. prescription change and estimated therapeutic category share based on both NPA and NGPS data. NGPS data is collected by IMS under a new, revised methodology and has been released by IMS on a limited basis through a pilot program. IMS has announced it expects to make NGPS data available to the public on a subscription basis in 2007. The Company believes that the NGPS data provided by IMS provides a superior estimate of prescription data for the Company’s products in the retail and mail order channels. The Company has calculated the estimated total U.S. prescription change and estimated therapeutic category share based on NGPS data on a weighted-average basis to reflect the fact that mail order prescriptions include a greater volume of product supplied compared with retail prescriptions. The Company believes that calculation of the estimated total U.S. prescription change and estimated therapeutic category share based on the NGPS data and the weighted-average approach with respect to the retail and mail order channels provides a superior estimate of total prescription demand. The Company now uses this methodology for its internal demand forecasts.

The estimated prescription change data and estimated therapeutic category share provided above only include information from the retail and mail order channels and do not reflect information from other channels, such as hospitals, institutions and long-term care, among others. The data provided by IMS are a product of IMS’ own record-keeping processes and are themselves estimates based on sampling procedures, subject to the inherent limitations of estimates based on sampling. In addition, the NGPS data are part of a pilot program that is still being refined by IMS.

The Company continuously seeks to improve the quality of its estimates of prescription change amounts, therapeutic category share percentages and ultimate patient/consumer demand through review of its methodologies and processes for calculation of these estimates and review and analysis of its 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 used in such calculations.

Estimated Inventory Months on Hand in the Distribution Channel

The following tables set forth for each of the Company’s top 15 pharmaceutical products (based on 2005 annual net sales) and other products that the Company views as current and future growth drivers sold by the Company’s U.S. Pharmaceuticals business, the U.S. Pharmaceuticals net sales and the estimated number of months on hand of the applicable product in the U.S. wholesaler distribution channel for the quarters ended September 30, 2006 and 2005 and June 30, 2006 and 2005.

2

	September 30, 2006			June 30, 2006
(Dollars in Millions)	Net Sales		Months on Hand	Net Sales			Months on Hand
ABILIFY* (total revenue)	$	260	0.5	$	267		0.5
AVAPRO*/AVALIDE*		159	0.4		167		0.5
BARACLUDE		14	0.6		9		0.7
CEFZIL		1	29.2		(1	)	25.7
COUMADIN		45	0.7		46		0.8
ERBITUX*		173	0.5		172		—
GLUCOPHAGE* Franchise		20	0.7		22		0.6
KENALOG		19	0.8		22		0.8
ORENCIA		34	0.8		18		0.3
PARAPLATIN		5	1.5		2		1.7
PLAVIX*		474	1.5		988		0.5
PRAVACHOL		73	1.0		128		1.0
REYATAZ		129	0.5		122		0.6
SPRYCEL		11	1.2		—		—
SUSTIVA Franchise(a) (total revenue)		128	0.5		115		0.5
TEQUIN		2	2.3		(6	)	2.7
VIDEX/VIDEX EC		3	0.9		5		0.9
ZERIT		19	0.7		18		0.7

3

	September 30, 2005			June 30, 2005
(Dollars in Millions)	Net Sales		Months on Hand	Net Sales			Months on Hand
ABILIFY* (total revenue)	$	214	0.9	$	200		0.7
AVAPRO*/AVALIDE*		147	0.5		157		0.6
BARACLUDE		2	1.2		5		4.7
CEFZIL		27	0.7		30		0.8
COUMADIN		49	0.6		42		0.7
ERBITUX*		106	—		97		—
GLUCOPHAGE* Franchise		38	0.7		44		0.8
KENALOG		19	0.7		15		0.5
ORENCIA		—	—		—		—
PARAPLATIN		9	1.1		(1	)	0.8
PLAVIX*		833	0.4		823		0.6
PRAVACHOL		297	0.5		353		0.7
REYATAZ		105	0.6		98		0.8
SPRYCEL		—	—		—		—
SUSTIVA		101	0.6		97		0.8
TEQUIN		21	0.9		22		0.8
VIDEX/VIDEX EC		7	1.1		5		1.0
ZERIT		24	0.8		26		0.8

^(a) Beginning in the third quarter of 2006, the SUSTIVA Franchise includes sales of SUSTIVA, as well as revenue of bulk efavirenz included in the combination therapy, ATRIPLA*. The estimated months on hand of the product in the U.S. wholesale distribution channel only include branded SUSTIVA inventory.

At September 30, 2006 and June 30, 2006 the estimated value of CEFZIL inventory in the U.S. wholesaler distribution channel exceeded one month on hand by approximately $11.8 million and $12.4 million, respectively. The demand for CEFZIL decreased significantly in 2006 due to generic competition that began in the U.S. in December 2005. The Company continues to monitor CEFZIL sales with the objective to work down wholesaler inventory levels to one month on hand or less.

SPRYCEL was launched in the U.S. in July 2006. Consistent with standard practice at the time of a new product launch, the Company’s U.S. wholesalers built inventories of the product to meet expected demand and at September 30, 2006, the estimated value of SPRYCEL inventory in the U.S. wholesaler distribution channel exceeded one month on hand by approximately $0.6 million. The Company expects to work down the inventory in the U.S. wholesaler distribution channel in the fourth quarter of 2006.

The estimated value of TEQUIN inventory in the U.S. wholesaler distribution channel exceeded one month on hand was de minimis at September 30, 2006 and was approximately $1.4 million at June 30, 2006. In the first quarter of 2006, the Company made the decision to discontinue commercialization of TEQUIN for commercial reasons. The Company stopped shipping product to U.S. wholesalers in June 2006 and established an accrual for the return of TEQUIN inventory. In early July 2006, the Company notified the U.S. wholesaler and retail distribution channels that it would allow for return of the product regardless of expiry dates. The Company expects most of the TEQUIN inventory in all U.S. channels to be returned by the fourth quarter of 2006.

BARACLUDE was launched in the U.S. in April 2005. In anticipation of the launch, the Company’s U.S. wholesalers built inventories of the product to meet expected demand and at September 30, 2005 and June 30, 2005, BARACLUDE inventory in the U.S. wholesaler distribution channel exceeded one month on hand. The estimated value of BARACLUDE inventory in the U.S. wholesaler distribution channel had been worked down to less than one month on hand in subsequent quarters.

At September 30, 2005, the estimated value of VIDEX/VIDEX EC inventory in the U.S. wholesaler distribution channel exceeded one month on hand by approximately $0.2 million. As a result of generic competition in the U.S. commencing in the fourth quarter of 2004, demand for VIDEX/VIDEX EC decreased significantly. The estimated value of VIDEX/VIDEX EC inventory in the U.S. wholesaler distribution channel had been worked down to one month on hand in subsequent quarters.

4

In October 2004, the U.S. pediatric exclusivity period for PARAPLATIN (carboplatin) expired. The resulting entry of multiple generic competitors for PARAPLATIN led to a significant decrease in demand for PARAPLATIN, which in turn led to the months on hand of the product in the U.S. wholesaler distribution channel exceeding one month on hand at September 30, 2006, June 30, 2006 and September 30, 2005. The estimated value of PARAPLATIN inventory in the U.S. wholesaler distribution channel over one month on hand was approximately $0.6 million at September 30, 2006, $1.4 million at June 30, 2006 and $0.7 million at September 30, 2005. The Company no longer produces PARAPLATIN for the U.S. market and will continue to monitor PARAPLATIN wholesaler inventory levels until they have been depleted.

At September 30, 2006, the estimated value of PLAVIX* inventory in the U.S. wholesaler distribution channel exceeded one month on hand by approximately $41.4 million due to the at-risk launch of generic clopidogrel bisulfate in August 2006. Because of the large quantities of generic clopidogrel bisulfate believed to have been shipped into the distribution channels before the preliminary injunction was granted ordering the halt of sales of generic clopidogrel bisulfate in late August 2006, demand for branded PLAVIX* has decreased precipitously. Demand for PLAVIX* is expected to increase over the next months as the generic clopidogrel bisulfate inventory in all channels are depleted. As demand for PLAVIX* increases, wholesale inventory levels are expected to decline below one month on hand.

For all products other than ERBITUX*, the Company determines the above months on hand estimates by dividing the estimated amount of the product in the U.S. wholesaler distribution channel by the estimated amount of out-movement of the product from the U.S. wholesaler distribution channel over a period of 31 days, all 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 third party data, which represent their own record-keeping processes and as such, may also reflect estimates.

The Company maintains inventory management agreements (IMAs) with most of its U.S. pharmaceutical wholesalers, which account for nearly 100% of total gross sales of U.S. pharmaceutical products. Under the current terms of the IMAs, the Company’s three largest wholesaler customers provide the Company with weekly information with respect to inventory levels of product on hand and the amount of out-movement of products. These three wholesalers accounted for approximately 90% of total gross sales of U.S. pharmaceutical products in the third quarter of 2006. The inventory information received from these wholesalers excludes inventory held by intermediaries to whom they sell, such as retailers and hospitals, and excludes goods in transit to such wholesalers. The Company uses the information provided by these three wholesalers as of the Friday closest to quarter end to calculate the amount of inventory on hand for these wholesalers at the applicable quarter end. This amount is then increased by the Company’s estimate of goods in transit to these wholesalers as of the applicable Friday, which have not been reflected in the weekly data provided by the wholesalers. Under the Company’s revenue recognition policy, sales are recorded when substantially all the risks and rewards of ownership are transferred, which in the U.S. Pharmaceutical business is generally when product is shipped. In such cases, goods in transit to a wholesaler are owned by the applicable wholesaler and, accordingly, are reflected in the calculation of inventories in the wholesaler distribution channel. The Company estimates the amount of goods in transit by using information provided by these wholesalers with respect to their open orders as of the applicable Friday and the Company’s records of sales to these wholesalers with respect to such open orders. The Company determines the out-movement of a product from these wholesalers over a period of 31 days by using the most recent four weeks of out-movement of a product as provided by these wholesalers and extrapolating such amount to a 31 day basis. The Company estimates inventory levels on hand and out-movements for its U.S. Pharmaceutical business’ wholesaler customers other than the three largest wholesalers for each product based on the assumption that such amounts bear the same relationship to the three largest wholesalers’ inventory levels and out-movements for such product as the percentage of aggregate sales for all products to these other wholesalers in the applicable quarter bears to aggregate sales

5

for all products to the Company’s three largest wholesalers in such quarter. Finally, the Company considers whether any adjustments are necessary to these extrapolated amounts based on such factors as historical sales of individual products made to such other wholesalers and third-party market research data related to prescription trends and patient demand. In addition, the Company receives inventory information from these other wholesalers on a selective basis for certain key products.

The Company’s U.S. Pharmaceuticals business through the IMAs discussed above, has arrangements with substantially all of its direct wholesaler customers and require those wholesalers to maintain inventory at levels that are no more than one month of their demand.

In response to the at-risk launch of generic clopidogrel bisulfate on August 8, 2006 , the Company offered certain U.S. managed care organizations incremental rebates from wholesaler list price for PLAVIX* under certain conditions through March 31, 2007. A small number of managed care organizations accepted the offer. All other offers were rejected, or were terminated prior to or at the time of issuance of the preliminary injunction on August 31, 2006, and no further such offers have been made since. The Company also provided a temporary price reduction below the federal supply schedule for PLAVIX* to the Veterans Administration for a limited period in August and September 2006. Primarily as a result of very limited participation in the rebate offer, the Company estimates that the impact of the two programs on PLAVIX* net sales in the third quarter was de minimis.

ORENCIA was launched in February 2006. From launch through the second quarter, the Company distributed ORENCIA through an exclusive distribution arrangement with a single distributor. Following approval of the supplemental Biologics License Application (sBLA) that allows a third party to manufacture ORENCIA at an additional site, that arrangement recently terminated and the Company expanded its distribution network for ORENCIA to multiple distributors.

To help maintain the product quality of the Company’s biologic oncology product, ERBITUX*, the product was previously 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. Upon the divestiture of OTN in May 2005, the Company discontinued the consignment arrangement with the wholesaler and thereafter did not have ERBITUX* consignment inventory. Following the divestiture, the Company sold ERBITUX* to intermediaries (such as specialty oncology distributors) and shipped ERBITUX* directly to the end-users of the product who are the customers of those intermediaries. Beginning in the third quarter 2006, the Company expanded its distribution model to one of the Company’s wholesalers who then held ERBITUX* inventory at September 30, 2006. The Company recognizes revenue upon such shipment consistent with its revenue recognition policy. The above estimate of months on hand for the three months ended September 30, 2006 was 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.

As previously disclosed, for the Company’s Pharmaceuticals business outside of the United States, Nutritionals and Other Health Care business units around the world, the Company has significantly more direct customers, limited information on direct customer product level inventory and corresponding out-movement information and the reliability of third party demand information, where available, varies widely. Accordingly, the Company relies on a variety of methods to estimate direct customer product level inventory and to calculate months on hand for these business units. As such, the information required to estimate months on hand in the direct customer distribution channel for non-U.S. Pharmaceuticals business for the quarter ended September 30, 2006 is not available prior to the filing of this quarterly report on Form 10-Q. The Company will disclose this information on its website and furnish it on Form 8-K approximately 60 days after the end of the third quarter and in the Company’s Form 10-K for the period ending December 31, 2006.

6

International Pharmaceuticals, Nutritionals and Other Health Care

Estimated End-User Demand

The following table sets forth for each of the Company’s key pharmaceutical products and growth drivers 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 2005 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 2006 compared to the month of September 2005. The Company commenced collecting the estimated ultimate patient/consumer demand for these reporting segments with the March 2005 period. The Company believes the year-to-year comparison below provides a more meaningful comparison to changes in sales for the quarter than the quarter-to-prior quarter comparisons previously provided.

	% Change in Demand on a Constant U.S. Dollar Basis
	September 2006 vs. September 2005		June 2006 vs. June 2005
International Pharmaceuticals
ABILIFY* (total revenue)	23		21
AVAPRO*/AVALIDE*	3		(1	)
BARACLUDE	NA		NA
BUFFERIN*	20		30
CAPOTEN	(24	)	(32	)
DAFALGAN	11		(10	)
EFFERALGAN	(23	)	(10	)
MAXIPIME	(5	)	(15	)
MONOPRIL	(15	)	(23	)
PARAPLATIN	(19	)	(14	)
PERFALGAN	31		6
PLAVIX*	(13	)	(4	)
PRAVACHOL	(55	)	(39	)
REYATAZ	20		38
SUSTIVA	2		13
TAXOL® (paclitaxel)	(26	)	(21	)
VIDEX/VIDEX EC	(22	)	(36	)
Nutritionals
ENFAMIL/ENFAGROW	5		4
NUTRAMIGEN	7		15
Other Health Care
ConvaTec
Ostomy	3		7
Wound Therapeutics	5		2
Medical Imaging
CARDIOLITE	(5	)	(6	)

Estimated Inventory Months on Hand in the Distribution Channel

As previously disclosed, for the Company’s Pharmaceuticals business outside of the United States, Nutritionals and Other Health Care business units around the world, the Company has significantly more direct customers, limited information on direct customer product level inventory and corresponding out-movement information and the reliability of third party demand information, where available, varies widely. Accordingly, the Company relies on a variety of methods to estimate direct customer product level inventory and to calculate months on hand for these business units.

7

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 each of the quarters ended September 30, 2006, June 30, 2006, September 30, 2005, 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 the end of each of the four quarters. 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. Also described further below is information on non-key product(s) where the amount of inventory on hand at direct customers is more than approximately one month and the impact is not de minimis. For the other reporting segments, estimates are based on data collected for the United States and all significant business units outside of the United States.

	September 30, 2006			June 30, 2006			September 30, 2005			June 30, 2005,
	Net Sales (Dollars in Millions)		Months on Hand	Net Sales (Dollars in Millions)		Months on Hand	Net Sales (Dollars in Millions		Months on Hand	Net Sales (Dollars in Millions		Months on Hand
International Pharmaceuticals
ABILIFY* (total revenue)	$	53	0.6	$	57	0.6	$	46	0.8	$	40	0.6
AVAPRO*/AVALIDE*		118	0.5		113	0.5		104	0.5		101	0.4
BARACLUDE		8	0.9		5	1.0		—	—		—	—
BUFFERIN*		28	0.5		31	0.5		31	0.6		32	1.0
CAPOTEN		28	0.8		31	0.9		38	0.9		42	0.8
DAFALGAN		35	1.1		37	1.1		34	1.3		33	0.8
EFFERALGAN		62	0.9		62	0.9		66	1.1		55	0.5
MAXIPIME		40	0.7		43	0.8		40	0.7		52	0.8
MONOPRIL		34	1.0		48	1.1		48	1.0		52	0.7
PARAPLATIN		27	0.6		29	0.6		33	0.6		34	0.6
PERFALGAN		48	0.6		51	0.6		38	0.7		42	0.6
PLAVIX*		156	0.6		157	0.5		147	0.6		145	0.5
PRAVACHOL		119	0.7		195	1.4		230	0.8		272	0.7
REYATAZ		104	1.1		114	0.7		71	0.9		85	0.8
SUSTIVA		73	0.5		78	0.5		69	0.6		70	0.6
TAXOL®(paclitaxel)		135	0.6		145	0.5		171	0.5		182	0.5
VIDEX/VIDEX EC		35	1.4		35	1.2		34	0.9		38	0.9
Nutritionals
ENFAMIL/ENFAGROW		315	0.8		312	0.9		284	0.9		299	0.9
NUTRAMIGEN		50	1.0		54	1.0		44	1.1		47	1.0
Other Health Care
ConvaTec
Ostomy		139	0.9		141	1.0		139	0.9		139	0.9
Wound Therapeutics		113	0.9		107	0.9		104	0.8		103	0.8
Medical Imaging
CARDIOLITE		97	0.8		105	0.8		106	0.8		108	0.7

The above months on hand information represents the Company’s estimates of aggregate product level inventory on hand at direct customers 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 out-movement data over the most recent 31 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 or product presentation launches, new warehouse openings by direct customers, new customer stockings by direct customers and expected direct customer purchases for governmental bidding situations.

8

The Company relies on a variety of methods to calculate months on hand for these reporting segments. Where available, the Company relies on information provided by third parties to determine estimates of aggregate product level inventory on hand at direct customers and expected demand. For the reporting segments listed above, however, the Company has limited information on direct customer product level inventory, end-user consumption and direct customer out-movement 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 out-movement 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 out-movement 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.

As of September 30, 2006, BMS has entered into exclusive distributorship arrangements for certain products in several Eastern and Central European markets.

As of September 30, 2006, June 30, 2006, and September 30, 2005, DAFALGAN, an analgesic product sold principally in Europe, had approximately 1.1months, 1.1 months, 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 DAFALGAN approximately once every eight weeks and the seasonality of the product.

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

As of June 30, 2006, MONOPRIL, a cardiovascular product, had approximately 1.1 months of inventory on hand at direct customers. The level of inventory on hand is due primarily to supply of the product in support of its inclusion in a government program in Russia.

As of June 30, 2006, PRAVACHOL, a cardiovascular product, had approximately 1.4 months of inventory on hand at direct customers. The increased level of inventory on hand is due primarily to an increase in orders from a significant direct customer in France. The Company has worked down the inventory levels for this customer during the third quarter.

As of September 30, 2006, REYATAZ, an antiviral product, had approximately 1.1 months on hand at direct customers. The increased level of inventory on hand is due primarily to government purchasing patterns in Brazil.

As of September 30, 2006 and June 30, 2006, VIDEX/VIDEX EC, an antiviral product, had approximately 1.4 months and 1.2 months of inventory on hand, respectively, at direct customers. The increased level of inventory on hand is due primarily to government purchasing patterns in Brazil. The Company is contractually obligated to provide VIDEX/VIDEX EC to the Brazilian government upon placement of an order for product by the government,. Under the terms of the contract, the Company has no control over the inventory levels relating to such orders. The Company, however, expects that the inventory levels for VIDEX/VIDEX EC will be worked down.

As of September 30, 2005, NUTRAMIGEN, an infant nutritional product, had approximately 1.1 months on hand at direct customers. The increased level of inventory was due to the impact of retailers holding higher levels of inventory in response to Hurricane Katrina. The Company has worked down the wholesaler inventory levels.

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 its own and third parties’ data used in such

9

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. Pharmaceuticals business.

* Indicates brand names of products which are registered trademarks not owned by the Company or its subsidiaries. ERBITUX is a trademark of ImClone Systems Inc.; AVAPRO, AVALIDE, and PLAVIX are trademarks of Sanofi-Aventis Corp.; and ABILIFY is a trademark of Otsuka Pharmaceuticals, Ltd. BUFFERIN is a trademark of Novartis AG in the United States, Canada, Europe and Latin America. BUFFERIN is a trademark of the Company in all other markets where it is registered.

10