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

Exhibit 99.2

BRISTOL-MYERS SQUIBB COMPANY

NET SALES

QUARTERLY SALES TREND ANALYSIS

($ in millions)

	2006																					2007									% 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	$	3,700		$	3,859		$	7,559		$	3,154		$	10,713		$	3,148		$	13,861		$	3,457								-7	%	-7	%
US Pharmaceuticals		2,064			2,197			4,261			1,609			5,870			1,501			7,371			1,932								-6	%	-6	%
Primary Care		1,409			1,441			2,850			819			3,669			648			4,317			1,090								-23	%	-23	%
Oncology/Virology		419			458			877			494			1,371			525			1,896			504								20	%	20	%
Neuroscience		231			280			511			262			773			297			1,070			298								29	%	29	%
Immunoscience		5			18			23			34			57			31			88			40								*		*
Europe and Middle East Medicines		1,024			1,000			2,024			886			2,910			934			3,844			916								-11	%	-11	%
Latin America/Canada		288			303			591			300			891			306			1,197			297								3	%	3	%
Asia/Pacific Medicines		279			320			599			318			917			349			1,266			289								4	%	4	%
Nutritionals		565			582			1,147			582			1,729			618			2,347			606								7	%	7	%
Other Health Care		411			430			841			418			1,259			447			1,706			413								—		—
ConvaTec		230			262			492			265			757			291			1,048			254								10	%	10	%
Medical Imaging		181			168			349			153			502			156			658			159								-12	%	-12	%
Total Company	$	4,676		$	4,871		$	9,547		$	4,154		$	13,701		$	4,213		$	17,914		$	4,476								-4	%	-4	%
	2006																					2007									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		79.1	%		79.2	%		79.2	%		75.9	%		78.2	%		74.7	%		77.4	%		77.2	%							(190	)	(190	)
US Pharmaceuticals		44.1	%		45.1	%		44.6	%		38.7	%		42.8	%		35.6	%		41.1	%		43.2	%							(90	)	(90	)
Primary Care		30.1	%		29.6	%		29.9	%		19.7	%		26.8	%		15.4	%		24.1	%		24.4	%							(570	)	(570	)
Oncology/Virology		9.0	%		9.4	%		9.2	%		11.9	%		10.0	%		12.5	%		10.5	%		11.3	%							230		230
Neuroscience		4.9	%		5.7	%		5.3	%		6.3	%		5.6	%		7.0	%		6.0	%		6.7	%							180		180
Immunoscience		0.1	%		0.4	%		0.2	%		0.8	%		0.4	%		0.7	%		0.5	%		0.8	%							70		70
Europe and Middle East Medicines		21.9	%		20.5	%		21.2	%		21.3	%		21.2	%		22.2	%		21.5	%		20.5	%							(140	)	(140	)
Latin America/Canada		6.2	%		6.2	%		6.2	%		7.2	%		6.5	%		7.3	%		6.7	%		6.6	%							40		40
Asia/Pacific Medicines		6.0	%		6.6	%		6.3	%		7.7	%		6.7	%		8.3	%		7.1	%		6.5	%							50		50
Nutritionals		12.1	%		12.0	%		12.0	%		14.0	%		12.6	%		14.7	%		13.1	%		13.5	%							140		140
Other Health Care		8.8	%		8.8	%		8.8	%		10.1	%		9.2	%		10.6	%		9.5	%		9.3	%							50		50
ConvaTec		4.9	%		5.4	%		5.2	%		6.4	%		5.5	%		6.9	%		5.8	%		5.7	%							80		80
Medical Imaging		3.9	%		3.4	%		3.6	%		3.7	%		3.7	%		3.7	%		3.7	%		3.6	%							(30	)	(30	)
Total Company		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

* In Excess of +/- 200%

BRISTOL-MYERS SQUIBB COMPANY

SEGMENT SALES AND COMPOSITION OF CHANGE IN SALES FOR TOTAL COMPANY

FOR THE PERIOD ENDED MARCH 31, 2007

($ in millions)

YEAR-TO-DATE

	Pharmaceuticals Group			Nutritionals			Convatec			Medical Imaging			Total Company
Price Increases/(Decreases)		—			2	%		-1	%		-3	%		—
Foreign Exchange		2	%		2	%		5	%		—			2	%
Volume		-9	%		3	%		6	%		-9	%		-6	%
Total Change		-7	%		7	%		10	%		-12	%		-4	%
Total 2007 Period to Date Sales	$	3,457		$	606		$	254		$	159		$	4,476
Total 2006 Period to Date Sales	$	3,700		$	565		$	230		$	181		$	4,676

BRISTOL-MYERS SQUIBB COMPANY

CONSOLIDATED STATEMENT OF EARNINGS

($ in millions, except per share amounts)

	2006																					2007									% 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	$	4,676		$	4,871		$	9,547		$	4,154		$	13,701		$	4,213		$	17,914		$	4,476								-4	%	-4	%
Cost of products sold		1,476			1,568			3,044			1,465			4,509			1,447			5,956			1,392								-6	%	-6	%
Marketing, selling and administrative		1,238			1,181			2,419			1,189			3,608			1,311			4,919			1,158								-6	%	-6	%
Advertising and product promotion		295			352			647			286			933			418			1,351			269								-9	%	-9	%
Research and development		750			740			1,490			756			2,246			821			3,067			807								8	%	8	%
Provision for restructuring, net		1			3			4			2			6			53			59			37								*		*
Litigation (income)/charges, net		(21)			(14)			(35)			(9)			(44)			346			302			—								100	%	100	%
Gain on sale of business and product asset		(200)			—			(200)			—			(200)			—			(200)			—								100	%	100	%
Equity in net income of affiliates		(93)			(125)			(218)			(118)			(336)			(138)			(474)			(126)								-35	%	-35	%
Other expense/(income), net		37			56			93			(34)			59			240			299			22								-41	%	-41	%
Total expenses		3,483			3,761			7,244			3,537			10,781			4,498			15,279			3,559								2	%	2	%
Earnings/(Loss) Before Minority Interest and Income Taxes		1,193			1,110			2,303			617			2,920			(285)			2,635			917								-23	%	-23	%
Provision/(Benefit) for income taxes		328			256			584			193			777			(167)			610			86								-74	%	-74	%
Minority interest, net of taxes		151			187			338			86			424			16			440			141								-7	%	-7	%
Net Earnings/(Loss)	$	714		$	667		$	1,381		$	338		$	1,719		$	(134)		$	1,585			690								-3	%	-3	%
Interest expense on conversion of convertible debt bonds, net of tax		8			8			16			9			25			—	(1)		—	(2)		9
Net Earnings/(Loss) used for diluted earnings per common share calculation	$	722		$	675		$	1,397		$	347		$	1,744		$	(134)	(1)	$	1,585	(2)		699
Diluted Earnings/(Loss) per Common Share**	$	0.36		$	0.34		$	0.70		$	0.17		$	0.88		$	(0.07)	(1)	$	0.81	(2)	$	0.35								-3	%	-3	%
Average Common Shares Outstanding - Diluted		1,988			1,994			1,992			1,992			1,991			1,961	(1)		1,963	(2)		1,997								—		—
Dividends declared per common share	$	0.28		$	0.28		$	0.56		$	0.28		$	0.84		$	0.28		$	1.12		$	0.28								—		—
	2006																					2007									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		68.4	%		67.8	%		68.1	%		64.7	%		67.1	%		65.7	%		66.8	%		68.9	%							50		50
Cost of products sold		31.6	%		32.2	%		31.9	%		35.3	%		32.9	%		34.3	%		33.2	%		31.1	%							(50)		(50)
Marketing, selling and administrative		26.5	%		24.2	%		25.3	%		28.6	%		26.3	%		31.1	%		27.5	%		25.9	%							(60)		(60)
Advertising and product promotion		6.3	%		7.2	%		6.8	%		6.9	%		6.8	%		9.9	%		7.5	%		6.0	%							(30)		(30)
Research and development		16.0	%		15.2	%		15.6	%		18.2	%		16.4	%		19.5	%		17.1	%		18.0	%							200		200
Total expenses		74.5	%		77.2	%		75.9	%		85.1	%		78.7	%		106.8	%		85.3	%		79.5	%							500		500
Earnings/(Loss) Before Minority Interest and Income Taxes		25.5	%		22.8	%		24.1	%		14.9	%		21.3	%		-6.8	%		14.7	%		20.5	%							(500)		(500)
Net Earnings/(Loss)		15.3	%		13.7	%		14.5	%		8.1	%		12.5	%		-3.2	%		8.8	%		15.4	%							10		10
Other Ratios
Effective Tax Rate		27.5	%		23.1	%		25.4	%		31.3	%		26.6	%		58.6	%		23.1	%		9.4	%
	2006																					2007									% 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	$	116		$	124		$	240		$	130		$	370		$	128		$	498		$	109								-6	%	-6	%
Interest income		(62)			(65)			(127)			(74)			(201)			(73)			(274)			(53)								15	%	15	%
Foreign exchange transaction (gains)/losses		(12)			23			11			(11)			—			6			6			8								167	%	167	%
Other, net		(5)			(26)			(31)			(79)			(110)			179			69			(42)								*		*
	$	37		$	56		$	93		$	(34)		$	59		$	240		$	299		$	22								-41	%	-41	%

* in excess of +/- 200%

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

(1) as a result of the Q4 2006 net loss, Diluted Average Common Shares Outstanding and Loss per Common Share are equal to Basic Average Common Shares Outstanding and Loss per Common Share.

(2) assumed interest amount and the assumed conversion of convertible debt are not used for Diluted Earnings per Common Share calculation as the impact of convertible debt is anti-dilutive.

BRISTOL-MYERS SQUIBB COMPANY

WORLDWIDE NET SALES BY PRODUCT

QUARTERLY SALES TREND ANALYSIS

($ in millions)

	2006														2007								% 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	$	4,676	$	4,871	$	9,547	$	4,154	$	13,701	$	4,213	$	17,914	$	4,476							-4	%	-4	%
PHARMACEUTICALS		3,700		3,859		7,559		3,154		10,713		3,148		13,861		3,457							-7	%	-7	%
Cardiovascular		1,917		1,907		3,824		1,239		5,063		1,093		6,156		1,475							-23	%	-23	%
Plavix		986		1,145		2,131		630		2,761		496		3,257		938							-5	%	-5	%
Pravachol		536		323		859		192		1,051		146		1,197		135							-75	%	-75	%
Avapro/ Avalide		233		280		513		277		790		307		1,097		270							16	%	16	%
Coumadin		55		55		110		53		163		57		220		46							-16	%	-16	%
Virology		468		524		992		532		1,524		580		2,104		590							26	%	26	%
Reyataz		207		236		443		233		676		255		931		263							27	%	27	%
Sustiva Franchise***		175		193		368		201		569		222		791		226							29	%	29	%
Baraclude		11		14		25		22		47		36		83		45							*		*
Oncology		361		401		762		399		1,161		394		1,555		355							-2	%	-2	%
Erbitux		138		172		310		175		485		167		652		160							16	%	16	%
Taxol		147		149		296		137		433		130		563		111							-24	%	-24	%
Sprycel		—		—		—		11		11		14		25		21							—		—
Affective (Psychiatric) Disorders		323		376		699		354		1,053		404		1,457		408							26	%	26	%
Abilify**		283		324		607		313		920		362		1,282		366							29	%	29	%
Immunoscience		5		18		23		34		57		32		89		41							*		*
Orencia		5		18		23		34		57		32		89		41							*		*
Other Pharmaceuticals
Efferalgan		68		62		130		62		192		74		266		81							19	%	19	%
NUTRITIONALS		565		582		1,147		582		1,729		618		2,347		606							7	%	7	%
Enfamil		237		253		490		246		736		271		1,007		254							7	%	7	%
Enfagrow		67		59		126		69		195		67		262		72							7	%	7	%
OTHER HEALTH CARE		411		430		841		418		1,259		447		1,706		413							—		—
CONVATEC		230		262		492		265		757		291		1,048		254							10	%	10	%
Ostomy		123		141		264		139		403		151		554		130							6	%	6	%
Wound Therapeutics		98		107		205		113		318		123		441		107							9	%	9	%
MEDICAL IMAGING		181		168		349		153		502		156		658		159							-12	%	-12	%
Cardiolite		103		105		208		97		305		103		408		99							-4	%	-4	%

* In excess of +/- 200%

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

*** 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 BY PRODUCT

QUARTERLY SALES TREND ANALYSIS

($ in millions)

	2006														2007									% Change				% Change in U.S. Total Prescription****
	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	$	2,638	$	2,806	$	5,444	$	2,170	$	7,614	$	2,115	$	9,729	$	2,505								-5	%	-5	%
PHARMACEUTICALS		2,076		2,205		4,281		1,619		5,900		1,517		7,417		1,944								-6	%	-6	%
Cardiovascular		1,341		1,330		2,671		752		3,423		616		4,039		1,045								-22	%	-22	%
Plavix		850		988		1,838		474		2,312		343		2,655		787								-7	%	-7	%	-28	%	-28	%
Pravachol		302		128		430		73		503		50		553		57								-81	%	-81	%	-86	%	-86	%
Avapro/ Avalide		139		167		306		159		465		182		647		163								17	%	17	%	-1	%	-1	%
Coumadin		47		46		93		45		138		48		186		38								-19	%	-19	%	-17	%	-17	%
Virology		259		270		529		292		821		327		1,148		319								23	%	23	%
Reyataz		119		122		241		129		370		144		514		143								20	%	20	%	17	%	17	%
Sustiva Franchise*****		108		115		223		128		351		144		495		144								33	%	33	%	25	%	25	%
Baraclude		9		9		18		14		32		18		50		17								89	%	89	%	127	%	127	%
Oncology		159		187		346		201		547		195		742		182								14	%	14	%
Erbitux		136		172		308		173		481		165		646		158								16	%	16	%	N/A		N/A
Taxol		4		4		8		2		10		2		12		4								—		—		N/A		N/A
Sprycel		—		—		—		11		11		11		22		10								—		—		N/A		N/A
Affective (Psychiatric) Disorders		237		286		523		266		789		302		1,091		305								29	%	29	%
Abilify**		231		267		498		260		758		294		1,052		293								27	%	27	%	14	%	14	%
Immunoscience		5		18		23		34		57		31		88		40								*	**	*	**
Orencia		5		18		23		34		57		31		88		40								*	**	*	**	N/A		N/A
Other Pharmaceuticals
Efferalgan		—		—		—		—		—		—		—		—								—		—		N/A		N/A
NUTRITIONALS		247		282		529		267		796		295		1,091		274								11	%	11	%
Enfamil		155		174		329		169		498		190		688		171								10	%	10	%	N/A		N/A
Enfagrow		—		—		—		—		—		—		—		—		��						—		—		N/A		N/A
OTHER HEALTH CARE		231		226		457		215		672		232		904		214								-7	%	-7	%
CONVATEC		73		85		158		84		242		101		343		78								7	%	7	%
Ostomy		34		41		75		39		114		45		159		34								—		—		N/A		N/A
Wound Therapeutics		30		34		64		36		100		43		143		32								7	%	7	%	N/A		N/A
MEDICAL IMAGING		158		141		299		131		430		131		561		136								-14	%	-14	%
Cardiolite		91		91		182		86		268		90		358		87								-4	%	-4	%	N/A		N/A

* 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 change for the retail and mail order channels are calculated based on Next-Generation Prescription Services (NGPS) version 2.0 data on a weighted-average basis. NGPS data is provided by IMS Health, a supplier of market research for the pharmaceutical industry. The weighted-average basis reflects the fact that mail order prescriptions include a greater volume of product supplied compared to retail prescriptions, which on average are 90 days for mail order and 30 days for retail. The calculation is derived by multiplying NGPS mail order prescription data by a factor that approximates three and adding to this the NGPS retail prescriptions.

***** 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 BY PRODUCT

QUARTERLY SALES TREND ANALYSIS

($ in millions)

	2006																	2007						% 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	$	2,038		$	2,065	$	4,103	$	1,984	$	6,087	$	2,098	$	8,185	$	1,971							-3	%	-3	%
PHARMACEUTICALS		1,624			1,654		3,278		1,535		4,813		1,631		6,444		1,513							-7	%	-7	%
Cardiovascular		576			577		1,153		487		1,640		477		2,117		430							-25	%	-25	%
Plavix		136			157		293		156		449		153		602		151							11	%	11	%
Pravachol		234			195		429		119		548		96		644		78							-67	%	-67	%
Avapro/ Avalide		94			113		207		118		325		125		450		107							14	%	14	%
Coumadin		8			9		17		8		25		9		34		8							—		—
Virology		209			254		463		240		703		253		956		271							30	%	30	%
Reyataz		88			114		202		104		306		111		417		120							36	%	36	%
Sustiva Franchise****		67			78		145		73		218		78		296		82							22	%	22	%
Baraclude		2			5		7		8		15		18		33		28								***		***
Oncology		202			214		416		198		614		199		813		173							-14	%	-14	%
Erbitux		2			—		2		2		4		2		6		2							—		—
Taxol		143			145		288		135		423		128		551		107							-25	%	-25	%
Sprycel		—			—		—		—		—		3		3		11							—		—
Affective (Psychiatric) Disorders		86			90		176		88		264		102		366		103							20	%	20	%
Abilify**		52			57		109		53		162		68		230		73							40	%	40	%
Immunoscience		—			—		—		—		—		1		1		1							—		—
Orencia		—			—		—		—		—		1		1		1							—		—
Other Pharmaceuticals
Efferalgan		68			62		130		62		192		74		266		81							19	%	19	%
NUTRITIONALS		318			300		618		315		933		323		1,256		332							4	%	4	%
Enfamil		82	��		79		161		77		238		81		319		83							1	%	1	%
Enfagrow		67			59		126		69		195		67		262		72							7	%	7	%
OTHER HEALTH CARE		180			204		384		203		587		215		802		199							11	%	11	%
CONVATEC		157			177		334		181		515		190		705		176							12	%	12	%
Ostomy		89			100		189		100		289		106		395		96							8	%	8	%
Wound Therapeutics		68			73		141		77		218		80		298		75							10	%	10	%
MEDICAL IMAGING		23			27		50		22		72		25		97		23							—		—
Cardiolite		12			14		26		11		37		13		50		12							—		—

* 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 bulk efavirenz included in the combination therapy, Atripla. Atripla is sold through a joint venture with Gilead Sciences, Inc.

BRISTOL-MYERS SQUIBB COMPANY

U.S. PHARMACEUTICALS NET SALES

EXCLUDING ESTIMATED IMPACT OF LAUNCH OF GENERIC CLOPIDOGREL BISULFATE

($ in millions)

	2007	2006	% Change
	Q1	Q1	Qtr vs. Qtr
U.S Pharmaceuticals Net Sales
U.S Pharmaceuticals Net Sales as Reported	$1,932	$2,064	-6%
Estimated Impact of Launch of Generic Clopidogrel Bisulfate	300 to 350	—	—
U.S Pharmaceuticals Net Sales Excluding the Estimated
Impact of Launch of Generic Clopidogrel Bisulfate	$2,232 to $2,282	$2,064	8% to 11%

BRISTOL-MYERS SQUIBB COMPANY

GROSS MARGIN

EXCLUDING SPECIFIED ITEMS

($ in millions)

	2007
	Q1												TOTAL YEAR
Net Sales	$	4,476											$	4,476
Gross Profit
Gross Profit	$	3,084											$	3,084
Specified items*		16												16
Gross Profit Excluding Specified Items	$	3,100											$	3,100
Gross Margin %		68.9	%											68.9	%
Specified items*		0.4	%											0.4	%
Gross Margin Excluding Specified Items		69.3	%											69.3	%
	2006
	Q1			Q2			Q3			Q4			TOTAL YEAR
Net Sales	$	4,676		$	4,871		$	4,154		$	4,213		$	17,914
Gross Profit
Gross Profit	$	3,200		$	3,303		$	2,689		$	2,766		$	11,958
Specified items*		46			20			72			29			167
Gross Profit Excluding Specified Items	$	3,246		$	3,323		$	2,761		$	2,795		$	12,125
Gross Margin %
Gross Margin %		68.4	%		67.8	%		64.7	%		65.6	%		66.8	%
Specified items*		1.0	%		0.4	%		1.7	%		0.7	%		0.9	%
Gross Margin Excluding Specified Items		69.4	%		68.2	%		66.4	%		66.3	%		67.7	%

* 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)

	2007
	Q1								TOTAL YEAR
Research and Development Expenses	$	807							$	807
Specified items*		80								80
Research and Development Expenses Excluding Specified Items	$	727							$	727
	2006
	Q1		Q2		Q3		Q4		TOTAL YEAR
Research and Development Expenses	$	750	$	740	$	756	$	821	$	3,067
Specified items*		18		1		17		49		85
Research and Development Expenses Excluding Specified Items	$	732	$	739	$	739	$	772	$	2,982

* 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)

	2007
	Q1												TOTAL YEAR
Provision for Income Taxes
Provision for Income Taxes	$	86											$	86
Specified items*		79												79
Provision for Income Taxes Excluding Specified Items	$	165											$	165
Earnings Before Minority Interest and Provision for Income Taxes	$	917											$	917
Earnings Before Minority Interest and Provision for Income Taxes Excluding Specified Items	$	1,050											$	1,050
Effective Tax Rate
Effective Tax Rate		9.4	%											9.4	%
Effective Tax Rate Excluding Specified Items		15.7	%											15.7	%
	2006
	Q1			Q2			Q3			Q4			TOTAL YEAR
Provision for Income Taxes
Provision/(Benefit) for Income Taxes	$	328		$	256		$	193		$	(167	)	$	610
Specified items*		(49	)		(3	)		(34	)		196			110
Provision for Income Taxes Excluding Specified Items	$	279		$	253		$	159		$	29		$	720
Earnings/(Loss) Before Minority Interest and Provision for Income Taxes	$	1,193		$	1,110		$	617		$	(285	)	$	2,635
Earnings Before Minority Interest and Provision for Income Taxes Excluding Specified Items	$	1,081		$	1,120		$	670		$	425		$	3,296
Effective Tax Rate
Effective Tax Rate		27.5	%		23.1	%		31.3	%		58.6	%		23.1	%
Effective Tax Rate Excluding Specified Items		25.8	%		22.6	%		23.7	%		6.8	%		21.8	%

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

BRISTOL-MYERS SQUIBB COMPANY

EARNINGS BEFORE MINORITY INTEREST AND INCOME TAXES

EXCLUDING SPECIFIED ITEMS

($ in millions)

	2007
	Q1												TOTAL YEAR
Earnings Before Minority Interest and Provision for Income Taxes	$	917											$	917
Specified items:
Upfront and milestone payments		80												80
Downsizing and streamlining of worldwide operations		37												37
Accelerated depreciation		16												16
Subtotal		133												133
Earnings Before Minority Interest and Provision for Income Taxes Excluding Specified Items	$	1,050											$	1,050
	2006
	Q1			Q2			Q3			Q4			TOTAL YEAR
Earnings / (Loss) Before Minority Interest and Provision for Income Taxes	$	1,193		$	1,110		$	617		$	(285	)	$	2,635
Specified items:
Gain on sale of product asset		(200	)		—			—			—			(200	)
Litigation matters		40			(14	)		(29	)		353			350
Insurance recoveries		(21	)		—			(9	)		(7	)		(37	)
Downsizing and streamlining of worldwide operations / other		69			24			91			131			315
Debt retirement costs		—			—			—			220			220
Claim for damages		—			—			—			13			13
Subtotal		(112	)		10			53			710			661
Earnings Before Minority Interest and Provision for Income Taxes Excluding Specified Items	$	1,081		$	1,120		$	670		$	425		$	3,296

BRISTOL-MYERS SQUIBB COMPANY

DILUTED EARNINGS PER COMMON SHARE

EXCLUDING SPECIFIED ITEMS

	2007
	Q1											TOTAL YEAR *
Diluted Earnings per Common Share	$	0.35										$	0.35
Specified items:
Upfront payments		0.03											0.03
Downsizing and streamlining of worldwide operations		0.01											0.01
Accelerated depreciation		0.01											0.01
Change in estimate for taxes on a prior year specified item		(0.02	)										(0.02	)
Subtotal		0.03											0.03
Diluted Earnings per Common Share Excluding Specified Items	$	0.38										$	0.38
	2006
	Q1			Q2		Q3			Q4			TOTAL YEAR *
Diluted Earnings / (Loss) per Common Share	$	0.36		$	0.34	$	0.17		$	(0.07	)	$	0.81
Specified items:
Gain on sale of product asset		(0.06	)		—		—			—			(0.06	)
Litigation matters		0.01			—		(0.01	)		0.14			0.14
Insurance recoveries		(0.01	)		—		—			—			(0.01	)
Downsizing and streamlining of worldwide operations / other		0.02			0.01		0.04			0.05			0.12
Debt retirement costs		—			—		—			0.07			0.07
Tax item		—			—		0.02			—			0.02
Subtotal		(0.04	)		0.01		0.05			0.26			0.28
Diluted Earnings per Common Share Excluding Specified Items	$	0.32		$	0.35	$	0.22		$	0.19		$	1.09

* 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 MARCH 31, 2007 AND 2006

($ in millions)

Three months ended March 31, 2007

	Cost of products sold		Research and development		Provision for restructuring, net		Total
Upfront payments	$	—	$	80	$	—	$	80
Downsizing and streamlining of worldwide operations		—		—		37		37
Accelerated depreciation		16		—		—		16
	$	16	$	80	$	37		133
Income taxes on items above								(40	)
Change in estimate for taxes on a prior year specified item								(39	)
Reduction to Net Earnings							$	54
Three months ended March 31, 2006
	Cost of products sold		Research and development		Sales Force		Provision for restructuring and other items, net			Litigation settlement income			Other expense, net		Gain on sale of product asset			Total
Litigation Matters:
Insurance recovery	$	—	$	—	$	—	$	—		$	(21	)	$	—	$	—		$	(21	)
Commercial litigation		—		—		—		—			—			40		—			40
		—		—		—		—			(21	)		40		—			19
Other:
Accelerated depreciation and asset impairment		46		—		4		—			—			—		—			50
Upfront and milestone payments		—		18		—		—			—			—		—			18
Downsizing and streamlining of worldwide operations		—		—		—		1			—			—		—			1
Gain on sale of product asset		—		—		—		—			—			—		(200	)		(200	)
	$	46	$	18	$	4	$	1		$	(21	)	$	40	$	(200	)		(112	)
Income taxes on items above																			48
Minority interest, net of taxes																			(13	)
Increase to Net Earnings																		$	(77	)

BRISTOL-MYERS SQUIBB COMPANY

SELECT BALANCE SHEET INFORMATION

($ in millions)

	March 31, 2006		June 30, 2006		September 30, 2006		December 31, 2006			March 31, 2007		June 30, 2007		September 30, 2007		December 31, 2007
Cash, cash equivalents and marketable debt securities	$	5,281	$	5,357	$	5,505	$	4,013		$	4,012	$	—	$	—	$	—
Short-term borrowings		234		189		630		187			241		—		—		—
Long-term debt		8,278		8,239		7,837		7,248			7,132		—		—		—
Net debt	$	3,231	$	3,071	$	2,962	$	3,422		$	3,361	$	—	$	—	$	—
Receivables, net of allowances	$	3,236	$	3,326	$	2,945	$	3,247		$	3,381	$	—	$	—	$	—
Stockholders’ equity		11,556		11,712		11,589		9,991	(1)		10,261		—		—		—
Capital expenditures and capitalized software (for the quarter ended)		202		160		199		224			202

(1) Includes the impact of the adoption of SFAS 158, “Employers’ Accounting for Defined Benefit Pension and Other Postretirement Plans - an amendment of FASB Statements No. 87, 88, 106 and 132(R)”

BRISTOL-MYERS SQUIBB COMPANY

2007 FULL YEAR PROJECTED DILUTED EPS

EXCLUDING PROJECTED SPECIFIED ITEMS

	Full Year 2007
Projected Diluted Earnings per Common Share	$	1.24 to $1.34
Projected Specified Items:
Upfront and milestone payments		0.05
Downsizing and streamlining of worldwide operations		0.03
Change in estimate for taxes on a prior year specified item		(0.02	)
Total		0.06
Projected Diluted Earnings per Common Share Excluding Specified Items	$	1.30 to $1.40

Gross Margin/Research and Development/Tax Rate Projections Excluding Specified Items

Gross margin on a GAAP basis for the three months ended March 31, 2007 was 68.9%, which included specified items of $16 million and had a 0.4% adverse impact on gross margin in aggregate. On a non-GAAP basis, for the three months ended March 31, 2007 gross margin was 69.3%. On a non-GAAP basis, based on historical trends in 2006 and the first quarter of 2007 the Company projects gross margin for the full year 2007 to be at least 100 basis points higher than 2006. There is no reasonably accessible or reliable comparable GAAP measure for this forward-looking information on gross margin. See Gross Margin non comparable tab.

Research and development expenses on a GAAP basis for the three months ended March 31, 2007 were $807 million, which included specified items of $80 million. On a non-GAAP basis, for the three months ended March 31, 2007 research and development expenses were $727 million. On a non-GAAP basis, based on historical trends in 2006 and the first quarter of 2007 the Company projects research and development expenses for the full year 2007 to increase in the mid to upper single digit range compared to 2006. There is no reasonably accessible or reliable comparable GAAP measure for this forward-looking information on research and development. See R&D non comparable tab.

The effective tax rate on a GAAP basis for the three months ended March 31, 2007 was 9.4%, which included specified items of $79 million in the tax provision, and had a 6.3% favorable impact on the effective tax rate in aggregate. On a non-GAAP basis, the three months ended March 31, 2007 effective tax rate was 15.7%. On a non-GAAP basis, based on historical trends in 2006 and the first quarter of 2007 the Company projects effective tax rate for the full year 2007 to be in the 20% range. There is no reasonably accessible or reliable comparable GAAP measure for this forward-looking information on the tax rate. See Tax Rate non comparable tab.

The GAAP results for the full year 2007 would include specified items that may occur and impact results. These specified items could include charges and recoveries relating to significant legal proceedings, debt retirement costs and other charges related to new transactions, upfront and 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, restructuring activities and significant tax events. 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 First Quarter of 2007, April 26, 2007, including “2007 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 tables sets forth, for each of the Company’s top 15 pharmaceutical products (based on 2006 annual net sales) 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 March 31, 2007 and 2006 and December 31, 2006 and 2005.

	March 31, 2007			December 31, 2006			March 31, 2006			December 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)
Abilify (total revenue)	$	293	0.4	$	294	0.5	$	231	0.5	$	175	0.6
Avapro/Avalide		163	0.4		182	0.5		139	0.4		168	0.6
Baraclude		17	0.6		18	0.7		9	1.0		4	0.7
Coumadin		38	0.7		48	0.8		47	0.6		50	0.8
Erbitux(a)		158	0.3		165	0.4		136	—		121	—
Glucophage Franchise		21	0.6		16	0.7		25	0.7		29	0.7
Kenalog		18	0.5		24	0.8		23	0.7		23	0.9
Orencia(b)		40	0.3		31	0.4		5	0.9		—	—
Paraplatin		5	13.8		6	5.8		7	1.2		5	0.9
Plavix		787	0.6		343	0.6		850	0.4		906	0.6
Pravachol		57	0.6		50	0.6		302	0.4		366	0.6
Reyataz		143	0.7		144	0.7		119	0.6		110	0.5
Sprycel		10	0.7		11	1.4		—	—		—	—
Sustiva Franchise (c) (total revenue)		144	0.7		144	0.7		108	0.5		102	0.6
Zerit		12	0.6		19	0.9		19	0.7		21	0.8

For all products other than Erbitux and Orencia, 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.

(a) In the first and second quarter of 2006, the Company sold Erbitux to intermediaries (such as wholesalers and 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 of 2006, the Company expanded its distribution model to include two distributors who then held Erbitux inventory. One additional distributor was added for Erbitux in the first quarter of 2007. The Company recognizes revenue upon such shipment consistent with its revenue recognition policy. The above estimate of months on hand was calculated by dividing the inventories of Erbitux held by the distributors for their own accounts as reported by the distributors as of the end of the quarter by the out-movements of the product reported by the distributors over the last 31 day period. The inventory levels reported by the distributors are a product of their record-keeping process.

(b) 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, the exclusive distribution arrangement terminated on July 17, 2006 and the Company expanded its distribution network for ORENCIA to multiple distributors. The above estimates of months on hand was calculated by dividing the inventories of Orencia held by these distributors at the end of the quarter by the out-movement of the product over the last 31 day period, as reported by these distributors. The inventory on hand and out-movements reported by these distributors are a product of the distributors’ own record-keeping process.

(c) 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.

U.S. Pharmaceuticals

Estimated End-User Demand

The following tables set forth for each of the Company’s top 15 pharmaceutical products (based on 2006 annual net sales) sold by the U.S. Pharmaceuticals business, for the three months ended March 31, 2007 compared to the same periods in the prior year: (i) changes in reported U.S. net sales for the period; (ii) estimated total U.S. prescription change for the retail and mail order channels calculated by the Company based on NGPS version 2.0 data on a weighted average basis; and (iii) the estimated U.S. therapeutic category share of the applicable product calculated by the Company based on NGPS version 2.0 data on a weighted-average basis. Prior year prescription data has been adjusted to conform to the NGPS version 2.0 data.

	Three Months Ended March 31, 2007				Month Ended March 31, 2007
	Change in U.S. Net Sales(a)		Change in U.S. Total Prescriptions(b)		Estimated TRx Therapeutic Category Share (b, c)
ABILIFY* (total revenue)	27	%	14	%	12	%
AVAPRO*/AVALIDE*	17		(1	)	13
BARACLUDE	89		127		25
COUMADIN	(19	)	(17	)	14
ERBITUX*(d)	16		N/A		N/A
GLUCOPHAGE* Franchise	(16	)	(39	)	1
KENALOG(e)	(22	)	N/A		N/A
ORENCIA(d)	*	*	N/A		N/A
PARAPLATIN(d)	(29	)	N/A		N/A
PLAVIX*	(7	)	(28	)	65
PRAVACHOL	(81	)	(86	)	1
REYATAZ(f)	20		17		19
SPRYCEL(g)	—		—		5
SUSTIVA Franchise(f, h)(total revenue)	33		25		34
ZERIT	(37	)	(26	)	4
	Three Months Ended March 31, 2006				Month Ended March 31, 2006
	Change in U.S. Net Sales(a)		Change in U.S. Total Prescriptions(b)		Estimated TRx Therapeutic Category Share(b, c)
ABILIFY* (total revenue)	43	%	29	%	12	%
AVAPRO*/AVALIDE*	36		4		15
BARACLUDE	—		—		15
COUMADIN	12		(28	)	18
ERBITUX*(d)	56		N/A		N/A
GLUCOPHAGE* Franchise	(36	)	(48	)	1
KENALOG(e)	109		N/A		N/A
ORENCIA(d)	—		N/A		N/A
PARAPLATIN(d)	(53	)	N/A		N/A
PLAVIX*	26		13		87
PRAVACHOL	17		(17	)	6
REYATAZ(f)	29		16		18
SPRYCEL(g)	—		—		—
SUSTIVA(f)	5		2		31
ZERIT	(27	)	(35	)	6

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

(b) Derived by multiplying NGPS mail order prescription data by a factor that approximates three and adding to this the NGPS retail prescriptions.

(c) 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), 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 (antiretrovirals - third agents excluding NORVIR* and TRIZIVIR*), SPRYCEL (TKIs for leukemia), SUSTIVA Franchise (antiretrovirals - third agents excluding NORVIR* and TRIZIVIR*) and ZERIT (nucleoside reverse transcriptase inhibitors).

(d) ERBITUX*, PARAPLATIN and ORENCIA are parenterally administered products and do not have prescription-level data as 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.

(e) 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.

(f) REYATAZ and the SUSTIVA Franchise have been recalculated as a percentage share of antiretrovirals – third agents excluding NORVIR* and TRIZIVIR*.

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

(h) 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 excluding NORVIR* and TRIZIVIR*) includes both branded SUSTIVA and ATRIPLA* prescription units.

** In excess of 200%.

The Company is reporting REYATAZ’s estimated TRx category share within the antiretrovirals - third agents (excluding NORVIR* and TRIZIVIR*) category rather than the protease inhibitors (excluding NORVIR*) category. The Company believes that the antiretrovirals - third agents (excluding NORVIR* and TRIZIVIR*) category more closely reflects the use of protease inhibitors, which has evolved and competes with other products within the antiretrovirals - third agents (excluding NORVIR* and TRIZIVIR*) category. The historical trends of growth in REYATAZ’s estimated TRx category share between the two categories are not materially different.

The estimated prescription change data and estimated therapeutic category share reported throughout this Form 10-Q 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.

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 2006 annual net sales) 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 March 31, 2007 and 2006 and December 31, 2006 and 2005.

	March 31, 2007			March 31, 2006
(Dollars in Millions)	Net Sales		Months on Hand	Net Sales		Months on Hand
ABILIFY* (total revenue)	$	293	0.4	$	231	0.5
AVAPRO*/AVALIDE*		163	0.4		139	0.4
BARACLUDE		17	0.6		9	1.0
COUMADIN		38	0.7		47	0.6
ERBITUX*		158	0.3		136	—
GLUCOPHAGE* Franchise		21	0.6		25	0.7
KENALOG		18	0.5		23	0.7
ORENCIA		40	0.3		5	0.9
PARAPLATIN		5	13.8		7	1.2
PLAVIX*		787	0.6		850	0.4
PRAVACHOL		57	0.6		302	0.4
REYATAZ		143	0.7		119	0.6
SPRYCEL		10	0.7		—	—
SUSTIVA Franchise(a) (total revenue)		144	0.7		108	0.5
ZERIT		12	0.6		19	0.7
	December 31, 2006			December 31, 2005
(Dollars in Millions)	Net Sales		Months on Hand	Net Sales		Months on Hand
ABILIFY* (total revenue)	$	294	0.5	$	175	0.6
AVAPRO*/AVALIDE*		182	0.5		168	0.6
BARACLUDE		18	0.7		4	0.7
COUMADIN		48	0.8		50	0.8
ERBITUX*		165	0.4		121	—
GLUCOPHAGE* Franchise		16	0.7		29	0.7
KENALOG		24	0.8		23	0.9
ORENCIA		31	0.4		—	—
PARAPLATIN		6	5.8		5	0.9
PLAVIX*		343	0.6		906	0.6
PRAVACHOL		50	0.6		366	0.6
REYATAZ		144	0.7		110	0.5
SPRYCEL		11	1.4		—	—
SUSTIVA Franchise(a) (total revenue)		144	0.7		102	0.6
ZERIT		19	0.9		21	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.

In October 2004, the U.S. pediatric exclusivity period for PARAPLATIN 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 March 31, 2007, December 31, 2006 and March 31, 2006. The estimated value of PARAPLATIN inventory in the U.S. wholesaler distribution channel over one month on hand was approximately $0.4 million at March 31, 2007, $0.6 million at December 31, 2006 and $0.9 million at March 31, 2006. 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.

SPRYCEL was launched in the U.S. in July 2006. Consistent with customary 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 December 31, 2006, the estimated value of SPRYCEL inventory in the U.S. wholesaler distribution channel exceeded one month on hand by approximately $1.4 million. As of March 31, 2007, SPRYCEL inventory in the U.S. wholesaler distribution channel has been worked down to less than one month on hand.

For all products other than ERBITUX* and ORENCIA, 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. Pharmaceuticals 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 nearly 90% of total gross sales of U.S. pharmaceutical products in the first quarter of 2007. 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 based on the Company’s records of sales to these wholesalers, 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. Pharmaceuticals 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 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 for each product, inventory levels on hand and out-movements for all its U.S. Pharmaceuticals business wholesaler customers, by adjusting the three largest wholesalers’ inventory levels and out-movements by a factor that approximates the other remaining wholesalers’ percentage share of total gross sales for such product in the U.S. 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 requires those wholesalers to maintain inventory at levels that are no more than one month of their demand.

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 that allows a third party to manufacture ORENCIA at an additional site, the exclusive distribution arrangement terminated on July 17, 2006 and the Company expanded its distribution network for ORENCIA to multiple distributors. The above estimates of months on hand was calculated by dividing the inventories of ORENCIA held by these distributors at the end of the quarter by the out-movement of the product over the last 31 day period, as reported by these distributors. The inventory on hand and out-movements reported by these distributors are a product of the distributors’ own record-keeping processes.

In the first and second quarter of 2006, the Company sold ERBITUX* to intermediaries (such as wholesalers and 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 of 2006, the Company expanded its distribution model to include two distributors who then held ERBITUX* inventory. One additional distributor was added for ERBITUX* in the first quarter of 2007. The Company recognizes revenue upon such shipment consistent with its revenue recognition policy.

The above estimate of months on hand was calculated by dividing the inventories of ERBITUX* held by the distributors for their own accounts as reported by the distributors as of the end of the quarter by the out-movements of the product reported by the distributors over the last 31 day period. The inventory levels reported by the distributors are a product of their record-keeping process.

International Pharmaceuticals, Nutritionals and Other Health Care

The following table sets forth for each of the Company’s key pharmaceutical products and other 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 2006 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 months of March 2007 and December 2006 compared to the same period in the prior year.

	% Change in Demand on a Constant U.S. Dollar Basis
	March 2007 vs. March 2006		December 2006 vs. December 2005
International Pharmaceuticals
ABILIFY* (total revenue)	5		15
AVAPRO*/AVALIDE*	5		6
BARACLUDE	23		*	*
BUFFERIN*	0		11
CAPOTEN	(6	)	(16	)
DAFALGAN	0		5
EFFERALGAN	(1	)	2
MAXIPIME	(4	)	(23	)
MONOPRIL	(8	)	(10	)
ORENCIA	*	*	N/A
PERFALGAN	1		17
PLAVIX*	1		(8	)
PRAVACHOL	(1	)	(63	)
REYATAZ	16		23
SPRYCEL	N/A		N/A
SUSTIVA Franchise (total revenue)	3		4
TAXOL® (paclitaxel)	(5	)	(18	)
VIDEX/VIDEX EC	11		(33	)
Nutritionals
ENFAMIL/ENFAGROW	6		6
NUTRAMIGEN	4		17
Other Health Care
ConvaTec
Ostomy	5		—
Wound Therapeutics	3		5
Medical Imaging
CARDIOLITE	(8	)	(5	)

** In excess of 200%

Estimated Inventory Months on Hand in the Distribution Channel

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 March 31, 2007, December 31, 2006, March 31, 2006, and December 31, 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 U.S. 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 U.S. and all significant business units outside of the U.S.

	March 31, 2007			December 31, 2006
Dollars in Millions	Net Sales		Months On Hand	Net Sales		Months On Hand
International Pharmaceuticals
ABILIFY* (total revenue)	$	73	0.6	$	68	0.7
AVAPRO*/AVALIDE*		107	0.5		125	0.6
BARACLUDE		28	0.7		18	0.8
BUFFERIN*		24	0.5		32	0.5
CAPOTEN		26	0.8		31	0.8
DAFALGAN		44	1.2		40	1.0
EFFERALGAN		81	1.1		74	0.7
MAXIPIME		29	0.5		33	0.6
MONOPRIL		36	0.8		35	0.9
ORENCIA		1	0.3		1	—
PERFALGAN		58	0.5		54	0.5
PLAVIX*		151	0.5		153	0.6
PRAVACHOL		78	0.6		96	0.8
REYATAZ		120	0.9		111	1.0
SPRYCEL		11	0.4		3	0.5
SUSTIVA Franchise(a) (total revenue)		82	0.5		78	0.5
TAXOL® (paclitaxel)		107	0.7		128	0.7
VIDEX/VIDEX EC		27	1.1		29	1.4
Nutritionals
ENFAMIL/ENFAGROW		326	0.8		338	0.9
NUTRAMIGEN		52	0.9		54	1.0
Other Health Care
ConvaTec
Ostomy		130	0.9		151	1.0
Wound Therapeutics		107	0.9		123	1.0
Medical Imaging
CARDIOLITE		99	0.7		103	0.9

(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 distribution channel only include branded SUSTIVA inventory.

	March 31, 2006			December 31, 2005
Dollars in Millions	Net Sales		Months on Hand	Net Sales		Months on Hand
International Pharmaceuticals
ABILIFY* (total revenue)	$	52	0.6	$	49	0.6
AVAPRO*/AVALIDE*		94	0.5		109	0.6
BARACLUDE		2	1.1		1	—
BUFFERIN*		22	0.6		36	0.7
CAPOTEN		35	0.8		38	0.8
DAFALGAN		37	1.4		34	1.2
EFFERALGAN		68	1.2		74	1.0
MAXIPIME		40	0.8		48	0.8
MONOPRIL		46	1.1		43	0.9
ORENCIA		—	—		—	—
PERFALGAN		46	0.6		43	0.6
PLAVIX*		136	0.5		155	0.6
PRAVACHOL		234	1.5		218	0.8
REYATAZ		88	0.6		78	0.6
SPRYCEL		—	—		—	—
SUSTIVA		67	0.5		68	0.6
TAXOL® (paclitaxel)		143	0.6		176	0.8
VIDEX/VIDEX EC		31	0.8		34	0.9
Nutritionals
ENFAMIL/ENFAGROW		304	0.9		330	1.0
NUTRAMIGEN		48	1.0		48	1.1
Other Health Care
ConvaTec
Ostomy		123	0.9		145	1.0
Wound Therapeutics		98	0.9		112	0.9
Medical Imaging
CARDIOLITE		103	0.8		100	1.0

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.

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 March 31, 2006, BARACLUDE, an antiviral product, had approximately 1.1 months of inventory on hand at direct customers. The level of inventory on hand was due primarily to stocking of the product in support of the recent launch in China.

As of March 31, 2007, March 31, 2006, and December 31, 2005, DAFALGAN, an analgesic product sold principally in Europe, had approximately 1.2, 1.4 and 1.2 months of inventory on hand, respectively, at direct customers. The level of inventory on hand was due primarily to private pharmacists purchasing DAFALGAN approximately once every eight weeks and the seasonality of the product.

As of March 31, 2007 and March 31, 2006, EFFERALGAN, an analgesic product sold principally in Europe, had approximately 1.1 and 1.2 months of inventory on hand respectively, at direct customers. The level of inventory on hand was due primarily to private pharmacists purchasing EFFERALGAN approximately once every eight weeks and the seasonality of the product.

As of March 31, 2006, MONOPRIL, a cardiovascular product, had approximately 1.1 months of inventory on hand at direct customers. The level of inventory on hand was due primarily to supply of the product in support of its inclusion in a government program in Russia.

As of March 31, 2006, PRAVACHOL, a cardiovascular product, had approximately 1.5 months of inventory on hand at direct customers. The increased level of inventory on hand was due primarily to an increase in orders from a significant direct customer in France.

As of March 31, 2007 and December 31, 2006, VIDEX/VIDEX EC, an antiviral product, had approximately 1.1 and 1.4 months of inventory on hand, respectively, at direct customers. The increased level of inventory on hand was 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.

As of December 31, 2005, NUTRAMIGEN, infant nutritional products sold principally in the U.S., had approximately 1.1 months of inventory on hand at direct customers. The level of inventory on hand at the end of the quarter ended December 31, 2005 was due primarily to holiday stocking by retailers.

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 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.