8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

Date of Report: July 28, 2005

Date of earliest event reported: July 28, 2005

BRISTOL-MYERS SQUIBB COMPANY

(Exact Name of Registrant as Specified in its Charter)

Delaware	1-1136	22-079-0350
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification Number)

345 Park Avenue

New York, NY 10154

(Address of Principal Executive Office)

Registrant’s telephone number, including area code: (212) 546-4000

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition

On July 28, 2005, Bristol-Myers Squibb Company issued a press release announcing its financial results for the second quarter of 2005. A copy of the press release is furnished as Exhibit 99.1 to this report and is also incorporated herein by reference. Also furnished and incorporated by reference as Exhibit 99.2 is certain supplemental information posted on the Bristol-Myers Squibb Company’s website at www.bms.com.

Item 9.01 Financial Statements and Exhibits

(c) Exhibits

Exhibit 99.1 – Press release of Bristol-Myers Squibb Company dated July 28, 2005, reporting Bristol-Myers Squibb’s financial results for the second quarter of 2005.

Exhibit 99.2 – Certain supplemental information posted on Bristol-Myers Squibb’s website at www.bms.com not included in the press release.

SIGNATURE

Under the requirements of the Securities Exchange Act of 1934, the Registrant has caused this report to be signed on its behalf by the authorized undersigned.

BRISTOL-MYERS SQUIBB COMPANY
By:	/s/ Sandra Leung
	Sandra Leung
Title:	Vice President and Secretary

Dated: July 28, 2005

EXHIBIT INDEX

Exhibit No.	Description
99.1	Press release of Bristol-Myers Squibb Company dated July 28, 2005, reporting Bristol-Myers Squibb’s financial results for the second quarter of 2005.
99.2	Certain supplemental information posted on Bristol-Myers Squibb’s website at www.bms.com not included in the press release.

EX-99.1

Exhibit 99.1

Contact:	Media:	Investors:
	Tony Plohoros	John Elicker
	Communications	Investor Relations
	212-546-4379	212-546-3775
	tony.plohoros@bms.com	john.elicker@bms.com
	Jeffrey Schoenborn	Blaine Davis
	Communications	Investor Relations
	212-546-2846	212-546-4631
	jeffrey.schoenborn@bms.com	blaine.davis@bms.com

BRISTOL-MYERS SQUIBB ANNOUNCES FINANCIAL RESULTS FOR THE

SECOND QUARTER AND FIRST HALF OF 2005, WITH BUSINESSES ON PLAN, LED BY

PHARMACEUTICAL GROWTH DRIVERS

• Reports Positive Year-Over-Year Results Including GAAP EPS of $0.50 and Non-GAAP EPS of $0.47, Reflecting a Lower Tax Rate

• Raises 2005 GAAP EPS Guidance and Reaffirms 2005 Non-GAAP EPS Guidance at the Upper End of the Range

(NEW YORK, July 28, 2005) – Bristol-Myers Squibb Company (NYSE:BMY) today reported financial results for the quarter and six months ended June 30, 2005 and provided further earnings guidance for the full year.

The company posted second quarter 2005 net sales of $4.9 billion from continuing operations, excluding the previously announced Oncology Therapeutics Network business unit sold in May 2005, a 1% increase from the same period last year. The results were primarily driven by increased sales of pharmaceutical growth products and nutritionals, partially offset by sales declines associated with the continued exclusivity losses of older pharmaceutical products.

The company reported second quarter 2005 net earnings from continuing operations of $991 million, or $0.50 per diluted share, under U.S. Generally Accepted Accounting Principles (GAAP), compared to $523 million, or $0.27 per diluted share for the same period last year.

Bristol-Myers Squibb reported second quarter 2005 net earnings from continuing operations of $933 million, or $0.47 per diluted share, on a non-GAAP basis excluding specified items, compared to $905 million, or $0.46 per diluted share for the same period last year. The increase in earnings includes a significantly lower effective tax rate in the second quarter of 2005.

“We had solid performance in the quarter, with two of our newer pharmaceutical growth drivers – ABILIFY® and REYATAZ® – roughly doubling in sales over the second quarter of last year,” said Peter R. Dolan, chief executive officer, Bristol-Myers Squibb. “PLAVIX® also delivered excellent growth, with sales increasing 26%.

“We’re continuing to execute our strategy, and we’re building a product portfolio and flexible cost structure that are expected to deliver a period of sustained sales and earnings growth beginning in 2007, when major exclusivity losses should be behind us for some time. In the meantime, despite short term pressure on earnings, we’ll continue to increase our investments in R&D, pipeline priorities, new product launches and marketed growth drivers,” Dolan added.

For the six months ended June 30, 2005, net sales from continuing operations remained constant at $9.4 billion compared to the first half of 2004. Under GAAP, net earnings from continuing operations in the first half of 2005 were $1,529 million, or $0.78 per diluted share compared to $1,484 million, or $0.76 per diluted share for the same period last year. On a non-GAAP basis excluding specified items, Bristol-Myers Squibb reported net earnings from continuing operations of $1,603 million, or $0.81 per diluted share for the six months ended June 30, 2005 compared to $1,709 million, or $0.87 per diluted share for the same period last year.

CONTINUED ADVANCEMENT OF R&D PIPELINE

Bristol-Myers Squibb continues to execute its strategy of serving specialists and high-value primary care physicians by transitioning its product portfolio to focus on disease areas of significant unmet need, where innovative medicines can help patients with serious illnesses.

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During the second quarter, data on a pair of the company’s key Phase III compounds were presented and favorably received at important medical meetings.

• Bristol-Myers Squibb and partner Merck & Co, Inc. announced results from both a Phase III active-controlled study and a long-term Phase II dose-ranging study for the investigational oral medicine muraglitazar, now known under the registered trade name PARGLUVA^™, during a late-breaking presentation of the 65th Annual Scientific Sessions of the American Diabetes Association (ADA). The primary endpoint of each study was reduction in A1C levels (a measure of blood glucose control over a two- to three-month time period) in patients with type 2 diabetes. Lipid effects, a secondary endpoint of both studies, were also measured.

• Data were presented at the 2005 annual European League Against Rheumatism (EULAR) meeting, which showed that Bristol-Myers Squibb’s internally developed biologic abatacept inhibited the progression of joint damage in subjects with active rheumatoid arthritis (RA), independent of baseline clinical, biochemical or radiographic characteristics.

Other promising Bristol-Myers Squibb compounds are transitioning to Phase III as the company’s pipeline continues to advance. Belatacept, the company’s internally developed biologic for the potential treatment of solid organ transplantation rejection, transitioned to Phase III development in the first quarter of 2005. Saxagliptin, a DPP4 inhibitor for the potential treatment of diabetes, is expected to transition to Phase III before the end of the third quarter of 2005.

Bristol-Myers Squibb’s Src/ABL Kinase Inhibitor continues its Phase II registrational program, and the company plans to review data in the fall. This internally-discovered compound, now known as dasatinib, is being investigated for the treatment of chronic myelogenous leukemia (CML).

In addition, late in the second quarter, company partner ImClone Systems Incorporated announced its intent to submit a supplemental Biologics License Application (sBLA) on ERBITUX® in the third quarter of 2005 to seek approval for use of the drug in combination with radiation and as a single agent in Squamous Cell Carcinoma of the Head and Neck (SCCHN). ERBITUX® is currently indicated for the treatment of refractory metastatic colorectal cancer.

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SECOND QUARTER RESULTS

• Second quarter 2005 net sales from continuing operations increased 1% from the same period last year to $4.9 billion, reflecting a 2% favorable impact of foreign exchange rate fluctuations and a 1% increase in volume, partially offset by a 2% decrease in average selling prices. U.S. net sales remained constant for the quarter compared to 2004, while international net sales increased 3%, including a 4% favorable foreign exchange impact.

• Marketing, selling and administrative costs increased by 6% during the second quarter of 2005 to $1.3 billion.

• Bristol-Myers Squibb continues to shift advertising and product promotion investments from mature brands to products expected to drive future growth. The company increased advertising and promotion spending by 5% to $365 million in the second quarter of 2005 from $346 million in the same period last year, primarily due to the launch of BARACLUDE^™ and continued investments in PLAVIX®, AVAPRO®/AVALIDE®, ABILIFY® and REYATAZ®.

• Research and development expenses increased by 4% to $649 million in the second quarter of 2005 from $625 million in the same period last year. Excluding accelerated depreciation of $1 million and milestone payments of $25 million in the second quarter of 2005 and 2004, respectively, research and development grew 8%. This increase includes continued investments in PARGLUVA^™ and abatacept. Pharmaceutical research and development represented 15.6% of pharmaceutical sales in the second quarter of 2005, compared to 14.6% in the same period last year. The company expects to maintain low double-digit annual R&D expense growth in 2005.

INCOME TAXES

The effective income tax rate on earnings from continuing operations before minority interest and income taxes was -1.9% and 15.3% for the three months ended June 30, 2005 and 2004, respectively. The lower effective tax rate was primarily driven by:

• a benefit of $159 million related to the resolution of certain tax contingencies, which was included in the company’s previous full year 2005 tax rate guidance

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• a benefit of $135 million reflecting an adjustment to the tax provision for the repatriation of foreign earnings, partially offset by a $55 million unfavorable impact for the treatment of certain litigation reserves, both included as specified items

SPECIFIED ITEMS

In the three months ending June 30, 2005 and 2004, the company recorded specified income and expense items that affected the comparability of the results.

The pre-tax specified items in 2005 included:

• $269 million charges for increase in litigation reserves, primarily for wholesaler inventory and various accounting matters

• $85 million net charges primarily associated with early debt retirement costs in connection with the repurchase of the company’s $2.5 billion Notes due 2006

• $295 million income from insurance recoveries, primarily for wholesaler inventory and various accounting matters

In addition, a tax benefit of $135 million was recognized to reflect an adjustment to taxes on repatriation of foreign earnings in the second quarter as discussed above.

The pre-tax specified items in 2004 included:

• $455 million net charges for litigation matters

• $62 million write-off of acquired in-process research and development

• $24 million net charges primarily related to milestone payments

For additional information on specified items, see Appendix 1. Details reconciling these non-GAAP amounts with GAAP amounts including specified items are provided in supplemental materials available on the company’s website.

PHARMACEUTICALS

Worldwide pharmaceutical sales increased 1% to $3.9 billion in the second quarter of 2005 compared to the same period in the prior year.

U.S. pharmaceutical sales increased 1% to $2.1 billion in the second quarter of 2005 compared to the same period in the prior year, primarily due to the continued growth of PLAVIX® and newer products including ABILIFY®, REYATAZ® and ERBITUX®, partially offset by continued exclusivity

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losses for PARAPLATIN®, the GLUCOPHAGE® franchise and VIDEX® EC. In aggregate, estimated wholesaler inventory levels of the company’s key pharmaceutical products sold by the U.S. Pharmaceutical business at the end of the second quarter were down slightly from the end of the first quarter of 2005, but held at approximately three weeks.

International pharmaceutical sales remained unchanged, including a 4% favorable foreign exchange impact, at $1.8 billion for the second quarter of 2005 compared to the same period in the prior year. The sales decrease excluding the favorable impact of foreign exchange was primarily due to a decline in TAXOL® and PRAVACHOL® sales resulting from increased generic competition, partially offset by increased sales of newer products including REYATAZ® and ABILIFY®, as well as growth of PLAVIX®.

Pharmaceutical Growth Drivers

Illustrating the continued progress of the company’s portfolio transition, worldwide sales of the products that the company views as current and future growth drivers accounted for approximately 45% and 33% of worldwide pharmaceutical sales in the second quarter of 2005 and 2004, respectively. U.S. sales of these growth drivers accounted for approximately 66% and 51% of total U.S. pharmaceutical sales in the second quarter of 2005 and 2004, respectively.

• Sales of PLAVIX®, a platelet aggregation inhibitor that is part of the company’s alliance with Sanofi-Aventis, increased 26%, including a 1% favorable foreign exchange impact, to $968 million in the second quarter of 2005 from $769 million in the same period last year, primarily due to increased demand in mail order prescriptions and a smaller reduction in U.S. wholesaler inventory levels compared to the same period last year. Total U.S. prescription demand grew approximately 15% compared to 2004.

• Sales of AVAPRO®/AVALIDE®, an angiotensin II receptor blocker for the treatment of hypertension, increased 11%, including a 2% favorable foreign exchange impact, to $258 million in the second quarter of 2005 from $233 million in the same period last year primarily due to increased demand. Total U.S. prescription growth increased approximately 15% compared to 2004. AVAPRO®/AVALIDE® are cardiovascular products launched from the alliance between the company and Sanofi-Aventis.

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• Total revenue for ABILIFY® increased 97%, including a 1% favorable foreign exchange impact, to $240 million in the second quarter of 2005 from $122 million in the same period last year, primarily due to strong growth in domestic demand and the continued growth in Europe, which achieved sales of $36 million in the second quarter of 2005. ABILIFY® achieved a monthly new prescription share of the U.S. antipsychotic market of approximately 12% in June 2005. ABILIFY® is an antipsychotic agent used for the treatment of schizophrenia, acute bipolar mania and Bipolar I Disorder. Total revenue for ABILIFY® primarily consists of alliance revenue recorded by the company as net sales based on its 65% share of net sales in co-promotion countries with Otsuka Pharmaceutical Co. Ltd.

• Sales of REYATAZ®, a protease inhibitor for the treatment of HIV, increased 115%, including a 3% favorable foreign exchange impact, to $183 million in the second quarter of 2005 from $85 million in the same period last year. REYATAZ® has achieved a monthly new prescription share of the U.S. protease inhibitors market of approximately 30%. Sales in Europe continued to grow since its introduction in the second quarter of 2004, achieving sales of $52 million in the second quarter of 2005.

• Sales of ERBITUX®, used to treat refractory metastatic colorectal cancer sold almost exclusively in the United States, increased 36% to $98 million in the second quarter of 2005 from $72 million in the same period last year. ERBITUX® was approved by the FDA in February 2004 and is marketed by the company under a distribution and co promotion agreement with ImClone Systems Incorporated.

• BARACLUDE^™, Bristol-Myers Squibb’s internally developed therapy for hepatitis B, has generated sales of $5 million since its launch in April 2005. BARACLUDE^™ also received its first international approval from regulatory authorities in Brazil earlier this month.

Other Pharmaceuticals

Sales of pharmaceuticals other than Bristol-Myers Squibb’s portfolio of growth drivers generally continue to decline or are no longer expected to generate sustainable sales increases, as a result of increased generic competition.

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• Sales of PRAVACHOL® decreased 5%, including a 2% favorable foreign exchange impact, to $625 million in the second quarter of 2005 from $656 million in the same period last year. U.S. PRAVACHOL® sales increased 8% to $353 million in the second quarter of 2005 from $326 million in the same period last year, primarily due to lower Medicaid and managed health-care rebate rates in the second quarter of 2005 and a smaller reduction in U.S. wholesaler inventory levels compared to the same period last year, partially offset by lower demand due to increased competition. Total U.S. prescriptions declined by 14% compared to 2004. International sales decreased 18%, including a 3% favorable foreign exchange impact, to $272 million, reflecting generic competition in key European markets.

• Sales of TAXOL®, the company’s leading anti-cancer agent, decreased 25%, including a 3% favorable foreign exchange impact, to $186 million in the second quarter of 2005 from $249 million in the same period last year, primarily as a result of increased generic competition in Europe. The anti-cancer agent is sold almost exclusively in non-U.S. markets.

• Sales of SUSTIVA®, a non-nucleoside reverse transcriptase inhibitor for the treatment of HIV, increased 9%, including a 2% favorable foreign exchange impact, to $167 million in the second quarter of 2005 from $153 million in the same period last year, primarily due to U.S. prescription growth of approximately 5% for the second quarter of 2005.

• Sales of PARAPLATIN®, an anticancer agent, decreased 86% to $33 million in the second quarter of 2005 from $241 million in the same period last year due to generic competition.

NUTRITIONALS AND RELATED HEALTHCARE

Bristol-Myers Squibb’s Nutritionals and Related Healthcare segments posted combined second quarter 2005 revenues of $1,003 million compared to $963 million in the same period in 2004. The two segments continue to generate a significant portion of Bristol-Myers Squibb’s revenues and profits, contributing a combined 21% and 27% of second quarter 2005 sales and earnings from continuing operations before minority interest and income taxes, respectively.

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Nutritionals

• Worldwide Nutritional sales increased 7%, including a 1% favorable foreign exchange impact, to $548 million in the second quarter of 2005 from $510 million in the same period last year.

• U.S. Nutritional sales increased 5% to $267 million, primarily due to increased sales of ENFAMIL®, the company’s largest selling infant formula. International Nutritional sales increased 10% to $281 million, including a 3% favorable foreign exchange impact, primarily due to increased sales in ENFAMIL®.

Related Healthcare

• ConvaTec sales increased 6%, including a 3% favorable foreign exchange impact, to $247 million from $234 million in 2004.

• Medical Imaging sales remained constant at $151 million, including a 1% favorable foreign exchange impact, primarily driven by increased sales of CARDIOLITE®, offset by sales declines in other products.

• Consumer Medicines sales decreased 16% to $57 million in the second quarter of 2005 from $68 million in the same period in 2004. In July 2005, the company announced that it has signed a definitive agreement for the sale of its U.S. and Canadian Consumer Medicines business and related assets to Novartis AG. The transaction is expected to close by the end of the third quarter, subject to customary regulatory approvals.

2005 NON-GAAP EPS GUIDANCE

Bristol-Myers Squibb reaffirmed 2005 full year earnings guidance of fully-diluted earnings per share from continuing operations at the upper end of its previously disclosed $1.35 and $1.45 range, on an adjusted non-GAAP basis which excludes specified items as discussed under “Use of Non-GAAP Financial Information.”

The company increased its estimate of fully diluted earnings per share when adding back exclusions – such as milestone payments in connection with previously announced external development, cost of early debt retirement, litigation settlements (including related insurance recoveries for significant legal proceedings), the anticipated gain on sale of business and restructurings activities from continuing operations – to $1.49 to $1.59, from $1.35 to $1.45, primarily due to the anticipated gain on sale of the Consumer Medicines business.

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Factors that may cause variation in the company’s earnings estimates and other risks and uncertainties, are discussed in the company’s “Statement on Cautionary Factors,” below, and its Securities and Exchange Commission filings.

The company and its subsidiaries are the subject of a number of significant pending lawsuits, claims, proceedings and investigations. It is not possible at this time reasonably to assess the final outcome of these investigations or litigations. Management continues to believe, as previously disclosed, that during the next few years, the aggregate impact, beyond current reserves, of these and other legal matters affecting the company is reasonably likely to be material to the company’s results of operations and cash flows, and may be material to its financial condition and liquidity. The company’s expectations for the next several years described above do not reflect the potential impact of litigation on the company’s results of operations.

For additional discussion of legal matters including PLAVIX® patent litigation, see “Item 8. Financial Statements and Supplementary Data-Note 21 Legal Proceedings and Contingencies” in the company’s Form 10-K Annual Report for 2004.

Use of Non-GAAP Financial Information

This press release contains non-GAAP earnings per share information adjusted to exclude certain costs, expenses, gains and losses and other specified items. Among the items in GAAP earnings but excluded for purposes of determining adjusted earnings are: gains or losses from sale of product lines, from sale or write-down of equity investments and from discontinuations of operations; restructuring and similar charges; charges and recoveries relating to significant legal proceedings; co-promotion or alliance charges and payments for in-process research and development which under GAAP are immediately expensed rather than amortized over the life of the agreement. This information is intended to enhance an investor’s overall understanding of the company’s past financial performance and prospects for the future. For example, non-GAAP earnings per share information is an indication of the company’s baseline performance before items that are considered by the company to be not reflective of the company’s operational results. In addition, this information is among the primary indicators the company uses as a basis for evaluating company performance, allocating resources, setting incentive compensation targets, and planning and forecasting of future periods. This information is not intended to be considered in isolation or as a substitute for diluted earnings per share prepared in accordance with GAAP.

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Statement on Cautionary Factors

This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 regarding, among other things, statements relating to goals, plans and projections regarding the company’s financial position, results of operations, market position, product development and business strategy. These statements may be identified by the fact that they use words such as “anticipate”, “estimates”, “should”, “expect”, “guidance”, “project”, “intend”, “plan”, “believe” and other words and terms of similar meaning in connection with any discussion of future operating or financial performance. Such forward-looking statements are based on current expectations and involve inherent risks and uncertainties, including factors that could delay, divert or change any of them, and could cause actual outcomes and results to differ materially from current expectations. These factors include, among other things, market factors, pricing controls and pressures, (including changes in rules and practices) of managed care groups and institutional and governmental purchasers, judicial decisions and governmental laws and regulations related to Medicare, Medicaid and healthcare reform, pharmaceutical rebates and reimbursement, competitive product development, claims and concerns that may arise regarding the safety and efficacy of in-line products and product candidates, changes to wholesaler inventory levels, governmental regulations and legislation, difficulties and delays in product development, manufacturing and sales, patent positions and litigation, including the outcome of the PLAVIX® litigation in the U.S., and the impact and result of governmental investigations. There can be no guarantees with respect to pipeline products that future clinical studies will support the data described in this release, that the products will receive regulatory approvals, or that they will prove to be commercially successful. For further details and a discussion of these and other risks and uncertainties, see the company’s Securities and Exchange Commission filings. The company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.

Company and Conference Call Information

Bristol-Myers Squibb is a global pharmaceutical and related health care products company whose mission is to extend and enhance human life.

There will be a conference call on July 28, 2005 at 9 a.m. (EDT) during which company executives will address inquiries from investors and analysts. Investors and the general public are invited to listen to a live webcast of the call at www.bms.com/ir or by dialing 719-457-2637. Materials related to the call will be available at the same Web site prior to the call.

For more information, contact: Tony Plohoros, 212-546-4379, or Jeffrey Schoenborn, 212-546-2846, Communications, or John Elicker, 212-546-3775, or Blaine Davis, 212-546-4631, Investor Relations.

# # #

ABILIFY® is the trademark of Otsuka Pharmaceutical Company, Ltd.

AVAPRO®, AVALIDE® and PLAVIX® are trademarks of Sanofi-Aventis

ERBITUX® is a trademark of ImClone Systems Incorporated

GLUCOPHAGE®, GLUCOPHAGE® XR and GLUCOVANCE® are registered trademarks of Merck Sante, S.A.S., an associate of Merck KGaA of Darmstadt, Germany

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BRISTOL-MYERS SQUIBB COMPANY

NET SALES BY OPERATING SEGMENTS

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2005 AND 2004

(Unaudited, in millions of dollars)

	Three Months Ended June 30,				Six Months Ended June 30,
	2005		2004		2005		2004
Pharmaceuticals	$	3,886	$	3,856	$	7,464	$	7,566
Nutritionals		548		510		1,074		1,012
Related Healthcare		455		453		883		867
Net Sales from Continuing Operations	$	4,889	$	4,819	$	9,421	$	9,445

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BRISTOL-MYERS SQUIBB COMPANY

SELECTED PRODUCTS

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2005 AND 2004

(Unaudited, in millions of dollars except prescription data)

The following tables set forth worldwide and U.S. reported net sales for selected products for the three and six months ended June 30, 2005 compared to the three and six months ended June 30, 2004. In addition, the tables include, where applicable, the estimated total (both retail and mail-order customers) prescription growth, for the comparative periods presented, for certain of the company’s U.S. primary care pharmaceutical prescription products. The estimated prescription growth amounts are based on third-party data. A significant portion of the company’s domestic pharmaceutical sales is made to wholesalers. Where changes in reported net sales differ from prescription growth, this change in net sales may not reflect underlying prescriber demand.

	Worldwide Net Sales						U.S. Net Sales							% Change in U.S. Total
	2005		2004		% Change		2005			2004		% Change		Prescriptions vs. 2004
Three Months Ended June 30
Pharmaceuticals
Cardiovascular
Plavix	$	968	$	769	26	%	$	823		$	651	26	%	15	%
Pravachol		625		656	(5	)%		353			326	8	%	(14	)%
Avapro/Avalide		258		233	11	%		157			144	9	%	15	%
Monopril		54		72	(25	)%		2			13	(85	)%	(59	)%
Coumadin		50		77	(35	)%		42			70	(40	)%	(18	)%
Virology
Sustiva		167		153	9	%		97			90	8	%	5	%
Reyataz		183		85	115	%		98			65	51	%	44	%
Zerit		59		78	(24	)%		26			38	(32	)%	(31	)%
Videx/Videx EC		43		69	(38	)%		5			25	(80	)%	(66	)%
Infectious Diseases
Cefzil		54		55	(2	)%		30			29	3	%	(8	)%
Tequin		35		39	(10	)%		22			26	(15	)%	(37	)%
Baraclude		5		—	—			5			—	—		N/A
Oncology
Taxol		186		249	(25	)%		4			1	*	*	N/A
Erbitux		98		72	36	%		97			72	35	%	N/A
Paraplatin		33		241	(86	)%		(1	)		206	(100	)%	N/A
Affective (Psychiatric) Disorders
Abilify (total revenue)		240		122	97	%		200			119	68	%	49	%
Metabolics
Glucophage IR		20		12	67	%		15			9	67	%	(35	)%
Glucophage XR		14		10	40	%		14			9	56	%	(55	)%
Glucovance		12		47	(74	)%		11			46	(76	)%	(85	)%
Nutritionals
Enfamil		250		224	12	%		171			158	8	%	N/A
Related Healthcare
Ostomy		139		137	1	%		38			41	(7	)%	N/A
Cardiolite		108		105	3	%		96			92	4	%	N/A
Wound Therapeutics		103		94	10	%		29			30	(3	)%	N/A

** Change is in excess of 200%

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	Worldwide Net Sales						U.S. Net Sales						% Change in U.S. Total
	2005		2004		% Change		2005		2004		% Change		Prescriptions vs. 2004
Six Months Ended June 30
Pharmaceuticals
Cardiovascular
Plavix	$	1,782	$	1,466	22	%	$	1,496	$	1,236	21	%	15	%
Pravachol		1,145		1,327	(14	)%		611		669	(9	)%	(15	)%
Avapro/Avalide		454		430	6	%		259		260	—		14	%
Monopril		113		137	(18	)%		5		12	(58	)%	(62	)%
Coumadin		99		114	(13	)%		84		101	(17	)%	(15	)%
Virology
Sustiva		340		292	16	%		200		166	20	%	5	%
Reyataz		332		160	108	%		190		131	45	%	50	%
Zerit		118		136	(13	)%		52		54	(4	)%	(31	)%
Videx/Videx EC		92		140	(34	)%		15		54	(72	)%	(58	)%
Infectious Diseases
Cefzil		136		127	7	%		80		71	13	%	(7	)%
Tequin		83		78	6	%		60		54	11	%	(28	)%
Baraclude		5		—	—			5		—	—		N/A
Oncology
Taxol		391		492	(21	)%		8		15	(47	)%	N/A
Erbitux		185		89	108	%		184		89	107	%	N/A
Paraplatin		77		469	(84	)%		14		404	(97	)%	N/A
Affective (Psychiatric) Disorders
Abilify (total revenue)		428		237	81	%		361		232	56	%	51	%
Metabolics
Glucophage IR		31		43	(28	)%		22		36	(39	)%	(45	)%
Glucophage XR		27		29	(7	)%		27		28	(4	)%	(60	)%
Glucovance		26		149	(83	)%		25		146	(83	)%	(87	)%
Nutritionals
Enfamil		485		432	12	%		333		302	10	%	N/A
Related Healthcare
Ostomy		266		264	1	%		72		81	(11	)%	N/A
Cardiolite		210		197	7	%		187		175	7	%	N/A
Wound Therapeutics		200		181	10	%		59		60	(2	)%	N/A

14

BRISTOL-MYERS SQUIBB COMPANY

CONSOLIDATED STATEMENT OF EARNINGS

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2005 AND 2004

(Unaudited, in millions of dollars except per share amounts)

	Three Months Ended June 30,						Six Months Ended June 30,
	2005			2004			2005			2004
Net Sales	$	4,889		$	4,819		$	9,421		$	9,445
Cost of products sold		1,483			1,500			2,850			2,857
Marketing, selling and administrative		1,268			1,201			2,451			2,427
Advertising and product promotion		365			346			683			662
Research and development		649			625			1,302			1,208
Acquired in-process research and development		—			62			—			62
Provision for restructuring and other items, net		2			6			5			18
Litigation charges, net		(26	)		379			98			379
Gain on sale of business		—			(18	)		—			(313	)
Equity in net income of affiliates		(87	)		(59	)		(156	)		(134	)
Other expense/(income), net (a)		105			8			130			46
		3,759			4,050			7,363			7,212
Earnings from Continuing Operations
Before Minority Interest and Income Taxes		1,130			769			2,058			2,233
Provision for income taxes		(21	)		118			247			514
Minority interest, net of taxes		160			128			282			235
Earnings from Continuing Operations		991			523			1,529			1,484
Discontinued Operations
Net Earnings		—			4			(5	)		7
Net Gain on Disposal		13			—			13			—
		13			4			8			7
Net Earnings	$	1,004		$	527		$	1,537		$	1,491
Earnings per Common Share:
Basic:
Earnings from Continuing Operations	$	0.51		$	0.27		$	0.79		$	0.77
Discontinued Operations
Net Earnings		—			—			—			—
Net Gain on Disposal		—			—			—			—
Net Earnings per Common Share	$	0.51		$	0.27		$	0.79		$	0.77
Diluted:
Earnings from Continuing Operations	$	0.50		$	0.27		$	0.78		$	0.76
Discontinued Operations
Net Earnings		—			—			—			—
Net Gain on Disposal		—			—			—			—
Net Earnings per Common Share	$	0.50		$	0.27		$	0.78		$	0.76
Average Common Shares Outstanding:
Basic		1,952			1,942			1,950			1,940
Diluted		1,984			1,976			1,982			1,976
(a)    Other expense/(income), net
Interest expense	$	73		$	70		$	170		$	139
Interest income		(23	)		(21	)		(68	)		(38	)
Foreign exchange transaction losses		35			38			47			55
Other, net		20			(79	)		(19	)		(110	)
	$	105		$	8		$	130		$	46

15

APPENDIX 1

BRISTOL-MYERS SQUIBB COMPANY

SPECIFIED ITEMS

FOR THE THREE MONTHS ENDED JUNE 30, 2005 AND 2004

(Unaudited, in millions of dollars)

Three months ended June 30, 2005

	Cost of products sold		Research and development		Provision for restructuring and other items, net		Litigation expense			Other (income) / expense, net			Total
Litigation Matters:
Private litigations and governmental investigations	$	—	$	—	$	—	$	249		$	—		$	249
ERISA litigation and other matters		—		—		—		20			—			20
Insurance recoveries		—		—		—		(295	)		—			(295	)
		—		—		—		(26	)		—			(26	)
Other:
Gain on sale of equity investment		—		—		—		—			(9	)		(9	)
Loss on sale of fixed assets		—		—		—		—			1			1
Accelerated depreciation and asset impairment		21		1		—		—			—			22
Downsizing and streamlining of worldwide operations		—		—		2		—			—			2
Debt retirement costs		—		—		—		—			69			69
	$	21	$	1	$	2	$	(26	)	$	61			59
Income taxes on items above														18
Adjustment to taxes on repatriation of foreign earnings														(135	)
Increase to Net Earnings from Continuing Operations													$	(58	)

Three months ended June 30, 2004

	Cost of products sold			Research and development		Acquired in- process research and development		Gain on sale of business			Provision for restructuring and other items, net		Litigation settlement expense / (income)		Total
Litigation Matters:
Private litigation and governmental investigations	$	—		$	—	$	—	$	—		$	—	$	320	$	320
Product liability		75			—		—		—			—		—		75
Pharmaceutical pricing and sales litigation		—			—		—		—			—		34		34
Commercial litigation		26			—		—		—			—		—		26
Anti-trust litigation		—			—		—		—			—		25		25
Product liability insurance recovery		(25	)		—		—		—			—		—		(25	)
		76			—		—		—			—		379		455
Other:
Gain on sale of Adult Nutritional business		—			—		—		(18	)		—		—		(18	)
Accelerated depreciation		11			—		—		—			—		—		11
Downsizing and streamlining of worldwide operations		—			—		—		—			6		—		6
Milestone payment		—			25		—		—			—		—		25
Acordis IPR&D write-off		—			—		62		—			—		—		62
	$	87		$	25	$	62	$	(18	)	$	6	$	379		541
Income taxes on items above																(159	)
Reduction to Net Earnings from Continuing Operations															$	382

16

APPENDIX 1

BRISTOL-MYERS SQUIBB COMPANY

SPECIFIED ITEMS

FOR THE SIX MONTHS ENDED JUNE 30, 2005 AND 2004

(Unaudited, in millions of dollars)

Six months ended June 30, 2005

	Cost of products sold		Research and development		Provision for restructuring and other items, net		Litigation expense			Other (income) / expense, net			Total
Litigation Matters:
Private litigations and governmental investigations	$	—	$	—	$	—	$	373		$	—		$	373
ERISA liability and other matters		—		—		—		20			—			20
Insurance recoveries		—		—		—		(295	)		—			(295	)
		—		—		—		98			—			98
Other:
Gain on sale of equity investment		—		—		—		—			(27	)		(27	)
Loss on sale of fixed assets		—		—		—		—			17			17
Accelerated depreciation and asset impairment		34		2		—		—			—			36
Downsizing and streamlining of worldwide operations		—		—		5		—			—			5
Upfront and milestone payments		—		35		—		—			—			35
Debt retirement costs		—		—		—		—			69			69
	$	34	$	37	$	5	$	98		$	59			233
Income taxes on items above														(24	)
Adjustment to taxes on repatriation of foreign earnings														(135	)
Reduction to Net Earnings from Continuing Operations													$	74

Six months ended June 30, 2004

	Cost of products sold			Research and development		Acquired in- process research and development		Gain on sale of business			Provision for restructuring and other items, net		Litigation settlement expense / (income)		Other expense, net		Total
Litigation Matters:
Private litigation and governmental investigations	$	—		$	—	$	—	$	—		$	—	$	320	$	—	$	320
Product liability		75			—		—		—			—		—		—		75
Pharmaceutical pricing and sales litigation		—			—		—		—			—		34		—		34
Commercial litigation		26			—		—		—			—		—		—		26
Anti-trust litigation		—			—		—		—			—		25		—		25
Product liability insurance recovery		(25	)		—		—		—			—		—		—		(25	)
		76			—		—		—			—		379		—		455
Other:
Gain on sale of Adult Nutritional business		—			—		—		(313	)		—		—		—		(313	)
Accelerated depreciation		23			—		—		—			—		—		4		27
Downsizing and streamlining of worldwide operations		1			—		—		—			18		—		—		19
Milestone payments		—			30		—		—			—		—		—		30
Acordis IPR&D write-off		—			—		62		—			—		—		—		62
	$	100		$	30	$	62	$	(313	)	$	18	$	379	$	4		280
Income taxes on items above																		(55	)
Reduction to Net Earnings from Continuing Operations																	$	225

17

EX-99.2

Exhibit 99.2

BRISTOL-MYERS SQUIBB COMPANY

NET SALES FROM CONTINUING OPERATIONS

FOR THE PERIOD ENDED JUNE 30, 2005

($ in millions)

Quarter-to-Date	2005				2004				Percentage Change
	Amount		% of Total		Amount		% of Total		Including Foreign Exchange		Excluding Foreign Exchange
Pharmaceuticals	$	3,886	79.5	%	$	3,856	80.0	%	1	%	-1	%
US Pharmaceuticals		2,084	42.6	%		2,048	42.5	%	2	%	2	%
Primary Care		1,539	31.4	%		1,419	29.4	%	8	%	8	%
Oncology/Virology		345	7.1	%		510	10.6	%	-32	%	-32	%
Neuroscience		200	4.1	%		119	2.5	%	68	%	68	%
Latin America/Canada		306	6.3	%		257	5.3	%	19	%	13	%
Europe and Middle East Medicines		1,112	22.7	%		1,185	24.6	%	-6	%	-10	%
Asia/Pacific Medicines		329	6.7	%		318	6.6	%	3	%	1	%
Nutritionals		548	11.2	%		510	10.6	%	7	%	6	%
Related Healthcare		455	9.3	%		453	9.4	%	—		-2	%
ConvaTec		247	5.0	%		234	4.9	%	6	%	3	%
Medical Imaging		151	3.1	%		151	3.1	%	—		-1	%
Consumer Medicines		57	1.2	%		68	1.4	%	-16	%	-16	%
Total Company	$	4,889	100.0	%	$	4,819	100.0	%	1	%	-1	%
Year-to-Date	2005				2004				Percentage Change
	Amount		% of Total		Amount		% of Total		Including Foreign Exchange		Excluding Foreign Exchange
Pharmaceuticals	$	7,464	79.2	%	$	7,566	80.1	%	-1	%	-3	%
US Pharmaceuticals		3,851	40.9	%		3,974	42.1	%	-3	%	-3	%
Primary Care		2,797	29.7	%		2,800	29.6	%	—		—
Oncology/Virology		693	7.4	%		942	10.0	%	-26	%	-26	%
Neuroscience		361	3.8	%		232	2.5	%	56	%	56	%
Latin America/Canada		564	6.0	%		508	5.4	%	11	%	6	%
Europe and Middle East Medicines		2,313	24.6	%		2,374	25.1	%	-3	%	-7	%
Asia/Pacific Medicines		628	6.7	%		605	6.4	%	4	%	2	%
Nutritionals		1,074	11.4	%		1,012	10.7	%	6	%	5	%
Related Healthcare		883	9.4	%		867	9.2	%	2	%	—
ConvaTec		475	5.1	%		451	4.8	%	5	%	2	%
Medical Imaging		296	3.1	%		290	3.1	%	2	%	1	%
Consumer Medicines		112	1.2	%		126	1.3	%	-11	%	-11	%
Total Company	$	9,421	100.0	%	$	9,445	100.0	%	—		-2	%

BRISTOL-MYERS SQUIBB COMPANY

SEGMENT SALES AND COMPOSITION OF CHANGE IN SALES FOR CONTINUING OPERATIONS

FOR THE PERIOD ENDED JUNE 30, 2005

(DOLLARS IN MILLIONS)

QUARTER-TO-DATE
	WW Medicines			Nutritionals			Convatec			Medical Imaging			Consumer Medicines			Continuing Operations
Price Increases(Decreases)		-2	%		2	%		—			-3	%		—			-2	%
Foreign Exchange		2	%		1	%		3	%		1	%		—			2	%
Volume		1	%		4	%		3	%		2	%		-16	%		1	%
Total Change		1	%		7	%		6	%		—			-16	%		1	%
Total 2005 Period to Date Sales	$	3,886		$	548		$	247		$	151		$	57		$	4,889
Total 2004 Period to Date Sales	$	3,856		$	510		$	234		$	151		$	68		$	4,819
YEAR-TO-DATE
	WW Medicines			Nutritionals			Convatec			Medical Imaging			Consumer Medicines			Continuing Operations
Price Increases(Decreases)		-2	%		2	%		—			-1	%		—			-1	%
Foreign Exchange		2	%		1	%		3	%		1	%		—			2	%
Volume		-1	%		3	%		2	%		2	%		-11	%		-1	%
Total Change		-1	%		6	%		5	%		2	%		-11	%		—
Total 2005 Period to Date Sales	$	7,464		$	1,074		$	475		$	296		$	112		$	9,421
Total 2004 Period to Date Sales	$	7,566		$	1,012		$	451		$	290		$	126		$	9,445

BRISTOL-MYERS SQUIBB COMPANY

2005 SECOND QUARTER REVIEW

CONTINUING OPERATIONS

($ in Millions)

Corporate Overview

	2005			% of Total		2004			% of Total		% Var.
Revenues:
Pharmaceuticals	$	3,886		79.5	%	$	3,856		80.0	%	1	%
Nutritionals		548		11.2	%		510		10.6	%	7	%
Related Healthcare		455		9.3	%		453		9.4	%	—
ConvaTec		247		5.0	%		234		4.9	%	6	%
Medical Imaging		151		3.1	%		151		3.1	%	—
Consumer Medicines		57		1.2	%		68		1.4	%	-16	%
		4,889		100.0	%		4,819		100.0	%	1	%
				% of Sales					% of Sales		% Var.
Expenses:
COGS		1,483		30.3	%		1,500		31.1	%	-1	%
MS&A		1,268		25.9	%		1,201		24.9	%	6	%
Adv. & Promo.		365		7.5	%		346		7.2	%	5	%
R&D		649		13.3	%		625		13.0	%	4	%
In-process R&D		—		0.0	%		62		1.3	%	-100	%
Provision for restructuring and other items		2		0.0	%		6		0.1	%	-67	%
Litigation charges, net		(26	)	-0.5	%		379		7.8	%	-107	%
Gain on sale of business		—		0.0	%		(18	)	-0.4	%	100	%
Equity in net income of affiliates		(87	)	-1.8	%		(59	)	-1.2	%	-47	%
Other (Inc)/Exp		105		2.2	%		8		0.2	%		*
		3,759		76.9	%		4,050		84.0	%	-7	%
Earnings from Continuing Operations
Before Minority Interest and Income Taxes		1,130		23.1	%		769		16.0	%	47	%
Provision for income taxes		(21	)				118
Minority interest, net of taxes		160					128
Earnings from Continuing Operations		991		20.3	%		523		10.9	%	89	%
Discontinued Operations
Net Earnings		—					4				-100	%
Net gain on disposal		13					—				—
Net Earnings	$	1,004		20.5	%	$	527		10.9	%	91	%
Earnings Per Common Share
Basic
Continuing Operations	$	0.51				$	0.27				89	%
Discontinued Operations
Net earnings		—					—				—
Net gain on disposal		—					—				—
Earnings Per Share	$	0.51				$	0.27				89	%
Diluted
Continuing Operations	$	0.50				$	0.27				85	%
Discontinued Operations
Net earnings		—					—				—
Net gain on disposal		—					—				—
Earnings Per Share	$	0.50				$	0.27				85	%
Average Shares - Basic		1,952					1,942
Average Shares - Diluted		1,984					1,976

Selected Products	Worldwide Sales		% Var.		Change in U.S. Rx Demand 2Q05 vs. 2Q04
Plavix	$	968	26	%	15	%
Pravachol		625	-5	%	-14	%
Enfamil		250	12	%	N/A
Avapro/Avalide		258	11	%	15	%
Abilify (total revenue)		240	97	%	49	%
Taxol		186	-25	%	N/A
Sustiva		167	9	%	5	%
Reyataz		183	115	%	44	%
Ostomy		139	1	%	N/A
Cardiolite		108	3	%	N/A
Wound Therapeutics		103	10	%	N/A
Erbitux		98	36	%	N/A
Cefzil		54	-2	%	-8	%
Zerit		59	-24	%	-31	%
Monopril		54	-25	%	-59	%
Coumadin		50	-35	%	-18	%
Videx/Videx EC		43	-38	%	-66	%
Paraplatin		33	-86	%	N/A
Glucovance		12	-74	%	-85	%
Baraclude		5	—		N/A

Other (Income)/Expense

	2005			2004
Interest Expense	$	73		$	70
Interest Income		(23	)		(21	)
Foreign Exchange		35			38
Other - net		20			(79	)
	$	105		$	8

* in excess of +/- 200%

BRISTOL-MYERS SQUIBB COMPANY

2005 SIX MONTH REVIEW

CONTINUING OPERATIONS

($ in Millions)

Corporate Overview

	2005			% of Total		2004			% of Total		% Var.
Revenues:
Pharmaceuticals	$	7,464		79.2	%	$	7,566		80.1	%	-1	%
Nutritionals		1,074		11.4	%		1,012		10.7	%	6	%
Related Healthcare		883		9.4	%		867		9.2	%	2	%
ConvaTec		475		5.1	%		451		4.8	%	5	%
Medical Imaging		296		3.1	%		290		3.1	%	2	%
Consumer Medicines		112		1.2	%		126		1.3	%	-11	%
		9,421		100.0	%		9,445		100.0	%	—
				% of Sales					% of Sales		% Var.
Expenses:
COGS		2,850		30.3	%		2,857		30.2	%	0	%
MS&A		2,451		26.0	%		2,427		25.7	%	1	%
Adv. & Promo.		683		7.3	%		662		7.0	%	3	%
R&D		1,302		13.8	%		1,208		12.8	%	8	%
In-process R&D		—		0.0	%		62		0.7	%	-100	%
Provision for restructuring and other items		5		0.1	%		18		0.2	%	-72	%
Litigation charges, net		98		1.0	%		379		4.0	%	-74	%
Gain on sale of business		—		0.0	%		(313	)	-3.3	%	100	%
Equity in net income of affiliates		(156	)	-1.7	%		(134	)	-1.4	%	-16	%
Other (Inc)/Exp, net		130		1.4	%		46		0.5	%	183	%
		7,363		78.2	%		7,212		76.4	%	2	%
Earnings Before Minority Interest and Income Taxes		2,058		21.8	%		2,233		23.6	%	-8	%
Provision for income taxes		247					514
Minority interest, net of taxes		282					235
Earnings from Continuing Operations		1,529		16.2	%		1,484		15.7	%	3	%
Discontinued Operations
Net Earnings		(5	)				7				-171	%
Net gain on disposal		13					—				—
Net Earnings	$	1,537				$	1,491				3	%
Earnings Per Common Share
Basic
Continuing Operations	$	0.79				$	0.77				3	%
Discontinued Operations
Net earnings		—					—
Net gain on disposal		—					—
Earnings Per Share	$	0.79				$	0.77				3	%
Diluted
Continuing Operations	$	0.78				$	0.76				3	%
Discontinued Operations
Net earnings		—					—
Net gain on disposal		—					—
Earnings Per Share	$	0.78				$	0.76				3	%
Average Shares - Basic		1,950					1,940
Average Shares - Diluted		1,982					1,976

Selected Products	Worldwide Sales		% Var.		Change in U.S. Rx Demand YTD 05 vs. YTD 04
Plavix	$	1,782	22	%	15	%
Pravachol		1,145	-14	%	-15	%
Enfamil		485	12	%	N/A
Avapro/Avalide		454	6	%	14	%
Abilify (total revenue)		428	81	%	51	%
Taxol		391	-21	%	N/A
Sustiva		340	16	%	5	%
Reyataz		332	108	%	50	%
Ostomy		266	1	%	N/A
Cardiolite		210	7	%	N/A
Wound Therapeutics		200	10	%	N/A
Erbitux		185	108	%	N/A
Cefzil		136	7	%	-7	%
Zerit		118	-13	%	-31	%
Monopril		113	-18	%	-62	%
Coumadin		99	-13	%	-15	%
Videx/Videx EC		92	-34	%	-58	%
Paraplatin		77	-84	%	N/A
Glucovance		26	-83	%	-87	%
Baraclude		5	—		N/A

Other (Income)/Expense

	2005			2004
Interest Expense	$	170		$	139
Interest Income		(68	)		(38	)
Foreign Exchange		47			55
Other - net		(19	)		(110	)
	$	130		$	46

* in excess of +/- 200%

BRISTOL-MYERS SQUIBB COMPANY

WORLDWIDE SALES BY PRODUCT

FOR THE THREE MONTHS ENDED JUNE 30, 2005

($ in millions)

	WORLDWIDE						INTERNATIONAL *						DOMESTIC *
	2005		2004		% growth		2005		2004		% growth		2005			2004		% growth
Total Company - Continuing Operations	$	4,889	$	4,819	1	%	$	2,221	$	2,157	3	%	$	2,668		$	2,662	—
PHARMACEUTICALS		3,886		3,856	1	%		1,789		1,785	—			2,097			2,071	1	%
Cardiovascular		2,031		1,891	7	%		654		684	-4	%		1,377			1,207	14	%
Plavix		968		769	26	%		145		118	23	%		823			651	26	%
Pravachol		625		656	-5	%		272		330	-18	%		353			326	8	%
Avapro/ Avalide		258		233	11	%		101		89	13	%		157			144	9	%
Monopril		54		72	-25	%		52		59	-12	%		2			13	-85	%
Coumadin		50		77	-35	%		8		7	14	%		42			70	-40	%
Capoten/Captopril		42		48	-13	%		42		48	-13	%		—			—	—
Virology		452		385	17	%		226		167	35	%		226			218	4	%
Sustiva		167		153	9	%		70		63	11	%		97			90	8	%
Reyataz		183		85	115	%		85		20	*	**		98			65	51	%
Zerit		59		78	-24	%		33		40	-18	%		26			38	-32	%
Videx/ Videx EC		43		69	-38	%		38		44	-14	%		5			25	-80	%
Infectious Diseases		278		294	-5	%		216		232	-7	%		62			62	—
Cefzil		54		55	-2	%		24		26	-8	%		30			29	3	%
Maxipime		52		50	4	%		52		50	4	%		—			—	—
Tequin		35		39	-10	%		13		13	—			22			26	-15	%
Baraclude		5		—	—			—		—	—			5			—	—
Oncology		371		619	-40	%		259		329	-21	%		112			290	-61	%
Taxol		186		249	-25	%		182		248	-27	%		4			1	*	**
Erbitux		98		72	36	%		1		—	—			97			72	35	%
Paraplatin		33		241	-86	%		34		35	-3	%		(1	)		206	-100	%
Affective (Psychiatric) Disorders		284		166	71	%		78		45	73	%		206			121	70	%
Abilify**		240		122	97	%		40		3	*	**		200			119	68	%
Sinemet		24		27	-11	%		20		22	-9	%		4			5	-20	%
Metabolics		51		79	-35	%		7		6	17	%		44			73	-40	%
Glucophage IR		20		12	67	%		5		3	67	%		15			9	67	%
Glucophage XR		14		10	40	%		—		1	—			14			9	56	%
Glucovance		12		47	-74	%		1		1	—			11			46	-76	%
Metaglip		5		10	-50	%		1		1	—			4			9	-56	%
NUTRITIONALS		548		510	7	%		281		255	10	%		267			255	5	%
Infant Formulas		396		365	8	%		137		120	14	%		259			245	6	%
Enfamil		250		224	12	%		79		66	20	%		171			158	8	%
Other Nutritional Products
Toddler/Children’s Nutritionals		124		118	5	%		124		118	5	%		—			—	—
RELATED HEALTHCARE		455		453	—			202		189	7	%		253			264	-4	%
CONVATEC PRODUCTS		247		234	6	%		176		163	8	%		71			71	—
Ostomy		139		137	1	%		101		96	5	%		38			41	-7	%
Wound Therapeutics		103		94	10	%		74		64	16	%		29			30	-3	%
MEDICAL IMAGING		151		151	—			24		24	—			127			127	—
Cardiolite		108		105	3	%		12		13	-8	%		96			92	4	%
CONSUMER MEDICINES		57		68	-16	%		2		2	0	%		55			66	-17	%

* 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 for International and for Domestic do not tie to the Total Company International and Domestic sales shown above.

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

*** In Excess of +/- 200%

BRISTOL-MYERS SQUIBB COMPANY

WORLDWIDE SALES BY PRODUCT

FOR THE SIX MONTHS ENDED JUNE 30, 2005

($ in millions)

	WORLDWIDE						INTERNATIONAL *						DOMESTIC *
	2005		2004		% growth		2005		2004		% growth		2005		2004		% growth
Total Company - Continuing Operations	$	9,421	$	9,445	—		$	4,443	$	4,275	4	%	$	4,978	$	5,170	-4	%
PHARMACEUTICALS		7,464		7,566	-1	%		3,590		3,529	2	%		3,874		4,037	-4	%
Cardiovascular		3,743		3,639	3	%		1,286		1,358	-5	%		2,457		2,281	8	%
Plavix		1,782		1,466	22	%		286		230	24	%		1,496		1,236	21	%
Pravachol		1,145		1,327	-14	%		534		658	-19	%		611		669	-9	%
Avapro/ Avalide		454		430	6	%		195		170	15	%		259		260	—
Monopril		113		137	-18	%		108		125	-14	%		5		12	-58	%
Coumadin		99		114	-13	%		15		13	15	%		84		101	-17	%
Capoten/Captopril		84		94	-11	%		84		94	-11	%		—		—	—
Virology		882		728	21	%		425		323	32	%		457		405	13	%
Sustiva		340		292	16	%		140		126	11	%		200		166	20	%
Reyataz		332		160	108	%		142		29	*	**		190		131	45	%
Zerit		118		136	-13	%		66		82	-20	%		52		54	-4	%
Videx/ Videx EC		92		140	-34	%		77		86	-10	%		15		54	-72	%
Infectious Diseases		584		600	-3	%		430		460	-7	%		154		140	10	%
Cefzil		136		127	7	%		56		56	—			80		71	13	%
Maxipime		98		94	4	%		98		94	4	%		—		—	—
Tequin		83		78	6	%		23		24	-4	%		60		54	11	%
Baraclude		5		—	—			—		—	—			5		—	—
Oncology		758		1,162	-35	%		531		632	-16	%		227		530	-57	%
Taxol		391		492	-21	%		383		477	-20	%		8		15	-47	%
Erbitux		185		89	108	%		1		—	—			184		89	107	%
Paraplatin		77		469	-84	%		63		65	-3	%		14		404	-97	%
Affective (Psychiatric) Disorders		516		324	59	%		143		86	66	%		373		238	57	%
Abilify**		428		237	81	%		67		5	*	**		361		232	56	%
Sinemet		49		50	-2	%		40		43	-7	%		9		7	29	%
Metabolics		94		240	-61	%		11		12	-8	%		83		228	-64	%
Glucophage IR		31		43	-28	%		9		7	29	%		22		36	-39	%
Glucophage XR		27		29	-7	%		—		1	-100	%		27		28	-4	%
Glucovance		26		149	-83	%		1		3	-67	%		25		146	-83	%
Metaglip		10		19	-47	%		1		1	—			9		18	-50	%
NUTRITIONALS		1,074		1,012	6	%		552		501	10	%		522		511	2	%
Infant Formulas		772		704	10	%		267		235	14	%		505		469	8	%
Enfamil		485		432	12	%		152		130	17	%		333		302	10	%
Other Nutritional Products
Toddler/Children’s Nutritionals		250		232	8	%		250		232	8	%		—		—	—
RELATED HEALTHCARE		883		867	2	%		388		358	8	%		495		509	-3	%
CONVATEC PRODUCTS		475		451	5	%		338		309	9	%		137		142	-4	%
Ostomy		266		264	1	%		194		183	6	%		72		81	-11	%
Wound Therapeutics		200		181	10	%		141		121	17	%		59		60	-2	%
MEDICAL IMAGING		296		290	2	%		45		43	5	%		251		247	2	%
Cardiolite		210		197	7	%		23		22	5	%		187		175	7	%
CONSUMER MEDICINES		112		126	-11	%		5		6	-17	%		107		120	-11	%

* 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 for International and for Domestic do not tie to the Total Company International and Domestic sales shown above.

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

*** In Excess of +/- 200%

BRISTOL-MYERS SQUIBB COMPANY

EARNINGS FROM CONTINUING OPERATIONS BEFORE MINORITY INTEREST AND INCOME TAXES

EXCLUDING SPECIFIED ITEMS

	2005
	Q1			Q2			TOTAL YEAR
Earnings from Continuing Operations Before Minority Interest and Income Taxes	$	928		$	1,130		$	2,058
Specified items:
Gain on sale of equity investment		(18	)		(9	)		(27	)
Litigation reserves		124			269			393
Insurance recoveries		—			(295	)		(295	)
Provision for restructuring / other		68			94			162
Earnings from Continuing Operations Before Minority Interest and Income Taxes Excluding Specified Items	$	1,102		$	1,189		$	2,291

	2004
	Q1			Q2			Q3			Q4			TOTAL YEAR
Earnings from Continuing Operations Before Minority Interest and Income Taxes	$	1,464		$	769		$	1,146		$	1,039		$	4,418
Specified items:
Gain on sale of businesses		(295	)		(18	)		(3	)		(4	)		(320	)
In-process research and development		—			62			1			—			63
Provision for restructuring / other		34			42			115			76			267
Litigation reserves		—			455			36			16			507
Earnings from Continuing Operations Before Minority Interest and Income Taxes Excluding Specified Items	$	1,203		$	1,310		$	1,295		$	1,127		$	4,935

BRISTOL-MYERS SQUIBB COMPANY

DILUTED EARNINGS PER COMMON SHARE FROM CONTINUING OPERATIONS

EXCLUDING SPECIFIED ITEMS

	2005
	Q1			Q2			TOTAL YEAR
Diluted Earnings per Common Share from Continuing Operations	$	0.27		$	0.50		$	0.78
Specified items:
Gain on sale of equity investment		(0.01	)		—			(0.01	)
Litigation reserves		0.05			0.10			0.15
Insurance recoveries		—			(0.09	)		(0.09	)
Provision for restructuring / other		0.03			0.03			0.05
Tax items		—			(0.07	)		(0.07	)
Diluted Earnings per Common Share from Continuing Operations Excluding Specified Items	$	0.34		$	0.47		$	0.81

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

BRISTOL-MYERS SQUIBB COMPANY

SPECIFIED ITEMS

FOR THE THREE MONTHS ENDED JUNE 30, 2005 AND 2004

Three months ended June 30, 2005

	Cost of products sold		Research and development		Provision for restructuring and other items, net		Litigation expense			Other (income) / expense, net			Total
Litigation Matters:
Private litigations and governmental investigations	$	—	$	—	$	—	$	249		$	—		$	249
Erisa litigation and other matters		—		—		—		20			—			20
Insurance recoveries		—		—		—		(295	)		—			(295	)
		—		—		—		(26	)		—			(26	)
Other:
Gain on sale of equity investment		—		—		—		—			(9	)		(9	)
Loss on sale of fixed assets		—		—		—		—			1			1
Accelerated depreciation and asset impairment		21		1		—		—			—			22
Downsizing and streamlining of worldwide operations		—		—		2		—			—			2
Debt retirement costs		—		—		—		—			69			69
	$	21	$	1	$	2	$	(26	)	$	61			59
Income taxes on items above														18
Adjustment to deferred taxes on repatriation of foreign earnings														(135	)
Increase to Net Earnings from Continuing Operations													$	(58	)

Three months ended June 30, 2004

	Cost of products sold			Research and development		Acquired in-process research and development		Gain on sale of business			Provision for restructuring and other items, net		Litigation settlement expense / (income)		Total
Litigation Matters:
Private litigation and governmental investigations	$	—		$	—	$	—	$	—		$	—	$	320	$	320
Product liability		75			—		—		—			—		—		75
Pharmaceutical pricing and sales litigation		—			—		—		—			—		34		34
Commercial litigation		26			—		—		—			—		—		26
Anti-trust litigation		—			—		—		—			—		25		25
Product liability insurance recovery		(25	)		—		—		—			—		—		(25	)
		76			—		—		—			—		379		455
Other:
Gain on sale of Adult Nutritional business		—			—		—		(18	)		—		—		(18	)
Accelerated depreciation		11			—		—		—			—		—		11
Downsizing and streamlining of worldwide operations		—			—		—		—			6		—		6
Milestone payment		—			25		—		—			—		—		25
Acordis IPR&D write-off		—			—		62		—			—		—		62
	$	87		$	25	$	62	$	(18	)	$	6	$	379		541
Income taxes on items above																(159	)
Reduction to Net Earnings from Continuing Operations															$	382

BRISTOL-MYERS SQUIBB COMPANY

SPECIFIED ITEMS

FOR THE SIX MONTHS ENDED JUNE 30, 2005 AND 2004

Six months ended June 30, 2005

	Cost of products sold		Research and development		Provision for restructuring and other items, net		Litigation expense			Other (income) / expense, net			Total
Litigation Matters:
Private litigations and governmental investigations	$	—	$	—	$	—	$	373		$	—		$	373
Erisa liability and other matters		—		—		—		20			—			20
Insurance recoveries		—		—		—		(295	)		—			(295	)
		—		—		—		98			—			98
Other:
Gain on sale of equity investment		—		—		—		—			(27	)		(27	)
Loss on sale of fixed assets		—		—		—		—			17			17
Accelerated depreciation and asset impairment		34		2		—		—			—			36
Downsizing and streamlining of worldwide operations		—		—		5		—			—			5
Upfront and milestone payments		—		35		—		—			—			35
Debt retirement costs		—		—		—		—			69			69
	$	34	$	37	$	5	$	98		$	59			233
Income taxes on items above														(24	)
Adjustment to deferred taxes on repatriation of foreign earnings														(135	)
Reduction to Net Earnings from Continuing Operations													$	74

Six months ended June 30, 2004

	Cost of products sold			Research and development		Acquired in-process research and development		Gain on sale of business			Provision for restructuring and other items, net		Litigation settlement expense / (income)		Other expense, net		Total
Litigation Matters:
Private litigation and governmental investigations	$	—		$	—	$	—	$	—		$	—	$	320	$	—	$	320
Product liability		75			—		—		—			—		—		—		75
Pharmaceutical pricing and sales litigation		—			—		—		—			—		34		—		34
Commercial litigation		26			—		—		—			—		—		—		26
Anti-trust litigation		—			—		—		—			—		25		—		25
Product liability insurance recovery		(25	)		—		—		—			—		—		—		(25	)
		76			—		—		—			—		379		—		455
Other:
Gain on sale of Adult Nutritional business		—			—		—		(313	)		—		—		—		(313	)
Accelerated depreciation		23			—		—		—			—		—		4		27
Downsizing and streamlining of worldwide operations		1			—		—		—			18		—		—		19
Milestone payments		—			30		—		—			—		—		—		30
Acordis IPR&D write-off		—			—		62		—			—		—		—		62
	$	100		$	30	$	62	$	(313	)	$	18	$	379	$	4		280
Income taxes on items above																		(55	)
Reduction to Net Earnings from Continuing Operations																	$	225

BRISTOL-MYERS SQUIBB COMPANY

SELECT ADDITIONAL FINANCIAL INFORMATION

	($ in Millions)
	June 30, 2005			December 31, 2004
Balance Sheet Items
Cash, cash equivalents and marketable debt securities	$	3,040		$	7,474
Receivables, net of allowances		3,315			4,373
Short-term borrowings		292			1,883
Long-term debt		6,008			8,463
Stockholders’ equity		10,801			10,202
Other Items
For the three months ended June 30, 2005:
Quarterly Dividend	$	0.28
Gross Margin		69.7	%
Capital Expenditures and Capitalized Software	$	171 million

BRISTOL-MYERS SQUIBB COMPANY

2005 DILUTED EPS FROM CONTINUING OPERATIONS

IMPACT OF PROJECTED SPECIFIED ITEMS

	Diluted EPS Impact
Anticipated restructuring	$	(0.04	)
Licensing milestones		(0.02	)
Debt retirement costs		(0.02	)
Litigation Reserves		(0.15	)
Insurance recoveries		0.10
Gain on sales of equity investment		0.01
Gain on sale of Consumer Medicines		0.19
Adjustment to deferred taxes on repatriation of foreign earnings		0.07
Total	$	0.14

BRISTOL-MYERS SQUIBB COMPANY

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

IN THE U.S. WHOLESALER DISTRIBUTION CHANNEL

The following table sets forth, for each of the Company’s top 15 pharmaceutical products sold by the Company’s U.S. Pharmaceuticals business (based on 2004 net sales), the amount of the U.S. Pharmaceutical business’s net sales of the applicable product for each of the three months ended June 30, 2005 and March 31, 2005 and the estimated number of months on hand of the applicable product in the U.S. wholesaler distribution channel at the end of each quarter.

	Q2 2005 Net Sales			Months on Hand as of June 30, 2005	Q1 2005 Net Sales		Months on Hand as of March 31, 2005
	(dollars in millions)				(dollars in millions)
Abilify	$	200		0.7	$	161	0.7
Avapro/Avalide		157		0.6		102	0.8
Cefzil		30		0.8		50	0.7
Coumadin		42		0.7		42	1.0
Dovonex		36		0.7		30	0.6
Erbitux*		97		—		87	**
Glucophage Franchise		44		0.8		39	1.0
Paraplatin		(1	)	0.8		15	0.9
Plavix		823		0.6		673	0.8
Pravachol		353		0.7		258	0.8
Reyataz		98		0.8		92	0.8
Sustiva		97		0.8		103	0.8
Tequin		22		0.8		38	0.7
Videx/Videx EC		5		1.0		10	1.2
Zerit		26		0.8		26	0.8

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

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

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

** Less than 0.1 months on hand.