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 (Date of earliest event reported): January 25, 2006

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 January 25, 2006, Bristol-Myers Squibb Company (the “Company”) issued a press release announcing its financial results for the fourth quarter and twelve months of 2005. A copy of the press release is furnished as Exhibit 99.1 to this report and incorporated herein by reference. Also furnished and incorporated by reference as Exhibit 99.2 is certain supplemental information posted on the Company’s website at www.bms.com.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

99.1	Press release of Bristol-Myers Squibb Company dated January 25, 2006
99.2	Certain supplemental information posted on Bristol-Myers Squibb Company’s website at www.bms.com not included in the press release

SIGNATURES

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

	BRISTOL-MYERS SQUIBB COMPANY
Dated: January 25, 2006	By:	/s/ Sandra Leung
	Name:	Sandra Leung
	Title:	Secretary

EXHIBIT INDEX

Exhibit No.	Description
99.1	Press release of Bristol-Myers Squibb Company dated January 25, 2006
99.2	Certain supplemental information posted on Bristol-Myers Squibb Company’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 COMPANY REPORTS FINANCIAL RESULTS FOR THE

FOURTH QUARTER AND TWELVE MONTHS OF 2005 AND ANNOUNCES EPS GUIDANCE FOR 2006

• Posts Fourth Quarter 2005 GAAP EPS of $0.26 and Non-GAAP EPS of $0.31

• Records Full Year 2005 GAAP EPS of $1.52 and Non-GAAP EPS of $1.43

• Announces Full Year 2006 GAAP and Non-GAAP EPS Guidance at $1.15-$1.25, including the impact of expensing stock options

(NEW YORK, January 25, 2006) – Bristol-Myers Squibb Company (NYSE:BMY) today reported financial results for the fourth quarter and twelve months ended December 31, 2005 and announced 2006 earnings guidance.

Bristol-Myers Squibb posted fourth quarter 2005 net sales from continuing operations of $5.0 billion, a decrease of 1%, excluding a 2% unfavorable foreign exchange impact, compared to the fourth quarter of 2004. The company reported fourth quarter 2005 net earnings from continuing operations of $499 million, or $0.26 per diluted share, under U.S. Generally Accepted Accounting Principles (GAAP), compared to $139 million, or $0.07 per diluted share for the same period in 2004. On a non-GAAP basis excluding specified items, fourth quarter 2005 net earnings from continuing operations was $601 million, or $0.31 per diluted share, compared to $776 million, or $0.39 per diluted share for the same period in 2004.

“We’re continuing to increase investments in our pharmaceutical growth drivers and in our late-stage pipeline, with R&D spend alone up 14% in the fourth quarter,” said Peter R. Dolan, chief executive officer, Bristol-Myers Squibb. “These investments are already returning solid results, with continued double-digit growth in PLAVIX®, ABILIFY®, ERBITUX® and REYATAZ® and the progress of the nine compounds in our late-stage portfolio. We also expect to commercialize several drugs in 2006, including the anticipated launch of ORENCIA®, our internally discovered biologic therapy recently approved in the U.S. for rheumatoid arthritis. ENFAMIL® infant formula, Bristol-Myers Squibb’s third largest product, also grew 15% for the year.”

For the twelve months ended December 31, 2005, the company posted net sales from continuing operations of $19.2 billion, a decrease of 1% compared to net sales of $19.4 billion for the same period in 2004. Under GAAP, net earnings from continuing operations for the full year 2005 were $3.0 billion, or $1.52 per diluted share compared to $2.4 billion, or $1.21 per diluted share for the same period in 2004. On a non-GAAP basis excluding specified items, net earnings from continuing operations for the full year 2005 was $2.8 billion, or $1.43 per diluted share, compared to $3.4 billion, or $1.70 per diluted share for the same period in 2004.

The company experienced declines in revenue during the quarter and twelve months ended December 31, 2005 as exclusivity losses among older pharmaceutical products were partially offset by sales from newer pharmaceutical growth drivers and increased sales in the Health Care Group.

ORENCIA® APPROVAL AND DASATINIB SUBMISSION

In December 2005, the U.S. Food and Drug Administration (FDA) approved ORENCIA®, Bristol-Myers Squibb’s fifth new drug approval since late 2002. ORENCIA® is indicated for reducing the signs and symptoms of rheumatoid arthritis, inducing major clinical response, slowing the progression of structural damage, and improving physical function in adult patients with moderately to severely active rheumatoid arthritis who have had an inadequate response to one or more disease-modifying anti-rheumatic drugs (DMARDs), such as methotrexate (MTX) or tumor necrosis factor (TNF) antagonists. Of the approximately 250,000 U.S. patients who receive anti-TNF therapy, Bristol-Myers Squibb estimates that 15% to 25% are treatment failures or inadequate responders to treatment.

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ORENCIA® is expected to be available by late February or early March 2006 in the United States, as previously disclosed. A marketing authorization application (MAA) has also been submitted for the product with the European Medicines Evaluation Agency (EMEA). The therapy will be supported by an Immunoscience sales organization that was established last year and is now fully staffed with trained representatives.

Earlier this month, Bristol-Myers Squibb completed submission of the supplemental Biologics License Application (sBLA) to the FDA for the licensure of a third-party manufacturing facility to support increased production capacity for ORENCIA®. The sBLA is part of the company’s long-term plan for increasing manufacturing capabilities for a variety of biologics.

Another recent development from Bristol-Myers Squibb’s full development portfolio was the December completion of the rolling submission of its New Drug Application (NDA) to the FDA for dasatinib, a SRC/ABL Kinase Inhibitor for the potential treatment of chronic myelogenous leukemia (CML). Also, in January the company submitted an MAA for dasatinib to the EMEA.

RE-EXAMINING THE COST BASE

In the fourth quarter of 2005 Bristol-Myers Squibb announced new initiatives designed to channel additional resources and organizational energy to high-value activities and take out low-value work to achieve and maintain an improved cost base. As previously disclosed, the company’s initial goal is to realize a minimum of approximately $500 million in savings in 2007 and an incremental $100 million in 2008, above and beyond what has already been achieved to date.

“We are in the midst of fundamentally re-examining our operating model to make lasting changes that will make Bristol-Myers Squibb more productive, efficient and effective as we fully transition our pharmaceutical portfolio to growth products in serious disease areas with significant unmet medical need,” explained Andrew R.J. Bonfield, chief financial officer. “This is not about cutting isolated expense items. Rather, we’re working to reset and lower our cost base to prepare the company for a period of sustainable growth, beginning in 2007.”

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FOURTH QUARTER RESULTS

• Fourth quarter 2005 net sales from continuing operations decreased 3% to $5.0 billion compared to the same period in 2004, reflecting a 2% unfavorable impact of foreign exchange rate fluctuations and a 2% decrease in volume, partially offset by a 1% increase in average selling prices. U.S. net sales increased 1% to $2.8 billion for the quarter compared to 2004, while international net sales decreased 7% to $2.2 billion, including a 4% unfavorable foreign exchange impact.

• Marketing, selling and administrative expenses decreased by 2% to $1.4 billion in the fourth quarter of 2005 compared to the same period in 2004, primarily due to lower sales force expense resulting from a focus on specialists and high value primary care physicians.

• The company continued to shift advertising and product promotion investments from mature brands to products expected to drive future growth. Advertising and promotion spending increased by 5% to $444 million in the fourth quarter of 2005 from $424 million in the same period in 2004, primarily driven by increased investments in direct-to-consumer marketing campaigns for ABILIFY® and PLAVIX®, the launch of BARACLUDE™, and increased costs associated with preparing for the launch of ORENCIA®.

• Research and development expenses increased by 14% to $775 million in the fourth quarter of 2005 from $677 million in the same period in 2004. This increase primarily reflects continued investments in other late-stage compounds. Investment in pharmaceutical research and development equaled 17.8% of pharmaceutical sales in the fourth quarter of 2005, compared to 14.9% in the same period in 2004.

INCOME TAXES

The effective income tax rate on earnings from continuing operations before minority interest and income taxes was 21.4% and 73.7% for the three months ended December 31, 2005 and 2004, respectively. The lower effective tax rate in the fourth quarter of 2005 compared to the same period in 2004 was primarily driven by a charge of $575 million for estimated deferred taxes taken in the fourth quarter of 2004 related to the repatriation of approximately $9 billion in special dividends from the Company’s non-U.S. subsidiaries, pursuant to the American Jobs Creation Act, and a charge taken in the

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fourth quarter of 2004 related to the establishment of a valuation allowance against certain charitable contributions, partially offset by lower estimated foreign tax credits in 2005.

SPECIFIED ITEMS

In the three months ended December 31, 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:

• $197 million charges for increase in litigation reserves, primarily related to securities litigation

• $86 million charges related to asset impairment, accelerated depreciation and downsizing and streamlining of worldwide operations

• $9 million charge primarily related to milestone payments

• $138 million deferred income recognized, net of other costs, resulting from the company’s termination of its collaborative agreement with Merck for muraglitazar

The pre-tax specified items in 2004 included:

• $61 million charges related to accelerated depreciation and downsizing and streamlining of worldwide operations

• $16 million charges for litigation matters

• $15 million primarily related to milestone payments

• $4 million adjustment to the gain on the sale of the Adult Nutritional business

In addition, a $575 million charge was recorded for estimated deferred taxes on repatriation of foreign earnings.

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 decreased 3% to $4.0 billion in the fourth quarter of 2005 compared to the same period in 2004.

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U.S. pharmaceutical sales decreased 1% to $2.2 billion in the fourth quarter of 2005 compared to the same period in 2004, primarily due to an increase in wholesaler inventory levels in the fourth quarter of 2004 and increased competition for PRAVACHOL®, partially offset by the continued growth of PLAVIX®, ERBITUX®, REYATAZ® and ABILIFY®. In aggregate, estimated wholesaler inventory levels of the company’s key pharmaceutical products sold by the U.S. Pharmaceutical business in the fourth quarter remained flat at approximately two-and-a-half weeks, as compared to an increase of approximately one week in the fourth quarter of 2004. This affected the sales performance of certain products in the fourth quarter of 2005.

International pharmaceutical sales decreased 6%, including a 4% unfavorable foreign exchange impact, to $1.8 billion for the fourth quarter of 2005 compared to the same period in 2004. The sales decrease was primarily due to a decline in TAXOL® and PRAVACHOL® sales resulting from increased generic competition in Europe, partially offset by increased sales of newer products including REYATAZ® and ABILIFY®, as well as growth of PLAVIX®.

Pharmaceutical Growth Drivers

Worldwide sales of the products that the company views as current and future growth drivers increased to 47% of worldwide pharmaceutical sales in the fourth quarter of 2005, compared to 40% in the same period in 2004. U.S. sales of these growth drivers accounted for approximately 66% and 59% of total U.S. pharmaceutical sales in the fourth 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 11%, to $1,061 million in the fourth quarter of 2005 from $959 million in the same period in 2004, primarily due to increased demand. Estimated total U.S. prescription demand grew approximately 10% compared to 2004.

• Sales of AVAPRO®/AVALIDE®, an angiotensin II receptor blocker for the treatment of hypertension, also part of the Sanofi-Aventis alliance, increased 7%, including a 1% unfavorable foreign exchange impact, to $277 million in the fourth quarter of 2005 from $259 million in the same period in 2004, primarily due to increased demand and lower prime vendor and managed health-care rebates in 2005. Estimated total U.S. prescription growth increased approximately 7% compared to 2004.

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• Total revenue for ABILIFY®, an antipsychotic agent used for the treatment of schizophrenia, acute bipolar mania and Bipolar I Disorder, increased 17%, including a 2% unfavorable foreign exchange impact, to $224 million in the fourth quarter of 2005 from $191 million in the same period in 2004. 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 copromotion countries with Otsuka Pharmaceutical Co. Ltd. In the U.S., estimated prescription demand grew approximately 30% compared to 2004; however, this was partially offset by a reduction in U.S. wholesaler inventory levels in the fourth quarter of 2005 compared to an increase in 2004. There continues to be strong sales growth in Europe, which reached $42 million in the fourth quarter of 2005.

• Sales of REYATAZ®, a protease inhibitor for the treatment of HIV, increased 27%, including a 3% unfavorable foreign exchange impact, to $188 million in the fourth quarter of 2005 from $148 million in the same period in 2004, primarily due to increased demand. REYATAZ® has achieved an estimated monthly new prescription share of the U.S. protease inhibitors market of approximately 28%. European sales increased 69% to $54 million in the fourth quarter of 2005 from $32 million in the same period in 2004.

• Sales of ERBITUX®, used to treat refractory metastatic colorectal cancer, which is sold almost exclusively in the United States, increased 38% to $121 million in the fourth quarter of 2005 from $88 million in the same period in 2004. ERBITUX® is currently under FDA priority review for the treatment of squamous cell carcinoma of the head and neck. ERBITUX® is marketed by the company under a distribution and copromotion agreement with ImClone Systems Incorporated.

Other Pharmaceuticals

Pharmaceutical products other than those the company views as current and future growth drivers are generally more mature products.

• Sales of PRAVACHOL®, an HMG Co-A reductase inhibitor, decreased 18%, including a 2% unfavorable foreign exchange impact, to $584 million in the fourth quarter of 2005 from $710 million in the same period in 2004. U.S. sales decreased 15% to $366 million in the fourth quarter of 2005 from $433 million in the same period in 2004, primarily due to lower demand resulting from

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increased competition, partially offset by lower Medicaid and managed health-care rebates in 2005. Estimated total U.S. prescriptions declined by 19% compared to 2004. International sales decreased 21%, including a 5% unfavorable foreign exchange impact, to $218 million, reflecting generic competition in key European markets.

• Sales of TAXOL®, an anti-cancer agent sold primarily in non-U.S. markets, decreased 29%, including a 5% unfavorable foreign exchange impact, to $181 million in the fourth quarter of 2005 from $256 million in the same period in 2004, primarily as a result of increased generic competition in Europe.

• Sales of SUSTIVA®, a non-nucleoside reverse transcriptase inhibitor for the treatment of HIV, decreased 1%, including a 2% unfavorable foreign exchange impact, to $170 million in the fourth quarter of 2005 from $172 million in the same period in 2004, primarily due to a reduction in wholesaler inventory levels in the fourth quarter of 2005 compared to an increase in the same period in 2004, partially offset by an estimated total U.S. prescription growth of approximately 5% for the fourth quarter of 2005.

HEALTH CARE GROUP

Excluding the U.S. and Canadian Consumer Medicines business divested in the third quarter of 2005, combined fourth quarter 2005 revenues from the company’s Nutritionals and Related Healthcare segments increased 9% to $1.0 billion compared to the same period in 2004. The two segments continue to generate a significant portion of Bristol-Myers Squibb’s revenues, contributing a combined 20% of fourth quarter 2005 sales.

Nutritionals

• Worldwide Nutritional sales increased 16%, including a 1% favorable foreign exchange impact, to $584 million in the fourth quarter of 2005 from $505 million in the same period in 2004.

• U.S. Nutritional sales increased 13% to $282 million in the fourth quarter of 2005, primarily due to increased sales of ENFAMIL®, the company’s best-selling infant formula. International Nutritional sales increased 18% to $302 million in the fourth quarter of 2005, including a 1% favorable foreign

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exchange impact, primarily due to increased sales of ENFAMIL® and toddlers and children’s nutritional products.

Related Healthcare

• Worldwide ConvaTec sales remained constant, including a 4% unfavorable foreign exchange impact, at $267 million in the fourth quarter of 2005 compared to the same period in 2004. Sales of wound therapeutic products increased 1%, including a 4% unfavorable foreign exchange impact, to $112 million in the fourth quarter of 2005 from $111 million in the same period in 2004, as sales growth of AQUACEL® AG was moderated by supply issues.

• Worldwide Medical Imaging sales increased 1% to $156 million in the fourth quarter of 2005 from $154 million in the same period in 2004. CARDIOLITE® sales decreased by 7% primarily due to slower market growth and increased competition.

2006 GUIDANCE

Bristol-Myers Squibb estimates its 2006 full year earnings guidance of fully-diluted earnings per share from continuing operations to be between $1.15 and $1.25 on an adjusted non-GAAP basis, which excludes specified items as discussed under “Use of Non-GAAP Financial Information.” This estimate includes the impact from the adoption of Statement of Financial Accounting Standards (SFAS) No. 123R, Share-Based Payment, which requires the expensing of stock options.

The company also expects its 2006 fully-diluted earnings per share range to be between $1.15 and $1.25, when adding back specified items. These specified items – such as milestone payments in connection with previously announced external development, the gain on sale of a product asset and restructuring activities from continuing operations – will have no net impact on the company’s estimated earnings guidance for 2006.

Details reconciling adjusted non-GAAP amounts with the amounts reflecting specified items are provided in supplemental materials available on the company’s website. This information does not include other items, which may occur during the year, such as any charges relating to new transactions

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or arrangements resulting in write-off of in-process research and development, milestone payments, other restructurings, significant legal proceedings and gain on asset disposals.

Anticipated sales declines due to continued exclusivity losses during 2006 are expected to be more or less offset by growth in sales of the company’s growth drivers and potential new products during the same period. Gross margin is expected to stabilize as the relatively high margins realized on the sale of the growth drivers and certain new products more or less offset lost margins from older products that have lost or are expected to lose exclusivity. Earnings will be adversely affected by the company’s investments to support the introduction of new products, sale of a product asset, the impact from the adoption of stock option expensing under new accounting guidelines and the development of additional new compounds.

As previously disclosed, the company has experienced substantial revenue losses in the last few years due to the expiration of market exclusivity protection for certain of its products. The company expects substantial incremental revenue losses in 2006, representing continuing declines in revenues of those products as well as declines in revenues of certain additional products that will lose market exclusivity in 2006. For 2006, the company estimates reductions of net sales in the range of $1.4 billion to $1.5 billion from the 2005 levels for products which have lost or will lose exclusivity protection in 2004, 2005 or 2006, primarily PRAVACHOL®, TAXOL® and CEFZIL®. The timing and amounts of sales reductions from exclusivity losses, their realization in particular periods and the eventual levels of remaining sales revenues are uncertain and dependent on the levels of sales at the time exclusivity protection ends, the timing and degree of development of generic competition (speed of approvals, market entry and impact) and other factors.

The company’s expectations for future sales growth include increases in sales of PLAVIX®, which had net sales of $3.8 billion for 2005, and is currently the company’s largest product ranked by net sales. The composition of matter patent for PLAVIX®, which expires in 2011, is currently the subject of litigation in the United States, with a trial scheduled to begin in April 2006. Similar proceedings involving PLAVIX® are ongoing in Canada. There are no enforcement proceedings outside of the U.S. and Canada. The company continues to believe that the patent is valid and that it is infringed, and with its alliance partner and patent-holder Sanofi-Aventis, is vigorously pursuing these cases. It is not possible at this time reasonably to assess the outcome of these litigations, or if there were an adverse determination in these litigations, the timing of potential generic competition for PLAVIX®.

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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 2006 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; copromotion 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.

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

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factors include, among other things, market factors, competitive product development, pricing controls and pressures (including changes in rules and practices of managed care groups and institutional and governmental purchasers), economic conditions such as interest rate and currency exchange rate fluctuations, judicial decisions and governmental laws and regulations related to Medicare, Medicaid and healthcare reform, pharmaceutical rebates and reimbursement, claims and concerns that may arise regarding the safety and efficacy of in-line products and product candidates, changes to wholesaler inventory levels, changes in, and interpretation of, governmental regulations and legislation affecting domestic or foreign operations, including tax obligations, 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 expiration of patents on certain other products, 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 necessary 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 periodic reports, including current reports on Form 8-K, quarterly reports on Form 10-Q and the annual report on Form 10-K, furnished to and filed with the Securities and Exchange Commission. 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 January 25, 2006 at 10:30 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 703-639-1325. 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 TWELVE MONTHS ENDED DECEMBER 31, 2005 AND 2004

(Unaudited, in millions of dollars)

	Three Months Ended December 31,				Twelve Months Ended December 31,
	2005		2004		2005		2004
Pharmaceuticals	$	4,012	$	4,150	$	15,254	$	15,564
Nutritionals		584		505		2,205		2,001
Related Healthcare		423		502		1,748		1,815
Net Sales from Continuing Operations	$	5,019	$	5,157	$	19,207	$	19,380

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BRISTOL-MYERS SQUIBB COMPANY

SELECTED PRODUCTS

FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 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 twelve months ended December 31, 2005 compared to the three and twelve months ended December 31, 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
Three Months Ended December 31,	2005		2004		% Change		2005		2004			% Change		Prescriptions vs. 2004
Pharmaceuticals
Cardiovascular
Plavix	$	1,061	$	959	11	%	$	906	$	816		11	%	10	%
Pravachol		584		710	(18	)%		366		433		(15	)%	(19	)%
Avapro/Avalide		277		259	7	%		168		154		9	%	7	%
Coumadin		56		76	(26	)%		50		69		(28	)%	(23	)%
Monopril		46		68	(32	)%		3		9		(67	)%	(57	)%
Virology
Reyataz		188		148	27	%		110		99		11	%	25	%
Sustiva		170		172	(1	)%		102		103		(1	)%	5	%
Zerit		47		67	(30	)%		21		31		(32	)%	(32	)%
Videx/Videx EC		41		67	(39	)%		7		25		(72	)%	(75	)%
Infectious Diseases
Cefzil		75		89	(16	)%		46		60		(23	)%	(15	)%
Baraclude		5		—	—			4		—		—		N/A
Oncology
Taxol		181		256	(29	)%		5		7		(29	)%	N/A
Erbitux		121		88	38	%		121		88		38	%	N/A
Paraplatin		38		27	41	%		5		(12	)	142	%	N/A
Affective (Psychiatric) Disorders
Abilify (total revenue)		224		191	17	%		175		170		3	%	30	%
Metabolics
Glucophage Franchise		35		53	(34	)%		29		48		(40	)%	(41	)%
Other Pharmaceuticals
Efferalgan		74		76	(3	)%		—		—		—		N/A
Nutritionals
Enfamil		277		224	24	%		184		157		17	%	N/A
Related Healthcare
Ostomy		145		152	(5	)%		46		47		(2	)%	N/A
Wound Therapeutics		112		111	1	%		40		39		3	%	N/A
Cardiolite		100		108	(7	)%		88		95		(7	)%	N/A

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	Worldwide Net Sales						U.S. Net Sales						% Change in U.S. Total
Twelve Months Ended December 31,	2005		2004		% Change		2005		2004		% Change		Prescriptions vs. 2004
Pharmaceuticals
Cardiovascular
Plavix	$	3,823	$	3,327	15	%	$	3,235	$	2,833	14	%	13	%
Pravachol		2,256		2,635	(14	)%		1,274		1,420	(10	)%	(17	)%
Avapro/Avalide		982		930	6	%		574		562	2	%	11	%
Coumadin		212		255	(17	)%		183		228	(20	)%	(19	)%
Monopril		208		274	(24	)%		9		34	(74	)%	(61	)%
Virology
Reyataz		696		414	68	%		405		305	33	%	39	%
Sustiva		680		621	10	%		403		364	11	%	5	%
Zerit		216		272	(21	)%		97		119	(18	)%	(31	)%
Videx/Videx EC		174		274	(36	)%		29		106	(73	)%	(65	)%
Infectious Diseases
Cefzil		259		270	(4	)%		153		161	(5	)%	(10	)%
Baraclude		12		—	—			11		—	—		N/A
Oncology
Taxol		747		991	(25	)%		17		31	(45	)%	N/A
Erbitux		413		261	58	%		411		260	58	%	N/A
Paraplatin		157		673	(77	)%		28		537	(95	)%	N/A
Affective (Psychiatric) Disorders
Abilify (total revenue)		912		593	54	%		750		554	35	%	42	%
Metabolics
Glucophage Franchise		172		336	(49	)%		150		315	(52	)%	(63	)%
Other Pharmaceuticals
Efferalgan		283		274	3	%		—		—	—		N/A
Nutritionals
Enfamil		992		859	15	%		685		596	15	%	N/A
Related Healthcare
Ostomy		550		551	—			161		167	(4	)%	N/A
Wound Therapeutics		416		391	6	%		133		130	2	%	N/A
Cardiolite		416		406	2	%		370		361	2	%	N/A

15

BRISTOL-MYERS SQUIBB COMPANY

CONSOLIDATED STATEMENT OF EARNINGS

FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2005 AND 2004

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

	Three Months Ended December 31,						Twelve Months Ended December 31,
	2005			2004			2005			2004
Net Sales	$	5,019		$	5,157		$	19,207		$	19,380
Cost of products sold		1,595			1,665			5,928			5,989
Marketing, selling and administrative		1,369			1,390			5,106			5,016
Advertising and product promotion		444			424			1,476			1,411
Research and development		775			677			2,746			2,500
Acquired in-process research and development		—			—			—			63
Provision for restructuring and other items, net		32			29			32			104
Litigation (income)/charges, net		197			16			269			420
Gain on sale of business		—			(4	)		(569	)		(320	)
Equity in net income of affiliates		(94	)		(69	)		(334	)		(273	)
Other expense/(income), net (a)		(131	)		(10	)		37			52
		4,187			4,118			14,691			14,962
Earnings from Continuing Operations Before Minority Interest and Income Taxes		832			1,039			4,516			4,418
Provision for income taxes		178			766			932			1,519
Minority interest, net of taxes		155			134			592			521
Earnings from Continuing Operations		499			139			2,992			2,378
Discontinued Operations
Net Earnings		—			—			(5	)		10
Net Gain on Disposal		—			—			13			—
		—			—			8			10
Net Earnings	$	499		$	139		$	3,000		$	2,388
Earnings per Common Share:
Basic:
Earnings from Continuing Operations	$	0.26		$	0.07		$	1.53		$	1.23
Discontinued Operations
Net Earnings		—			—			—			—
Net Gain on Disposal		—			—			—			—
Net Earnings per Common Share	$	0.26		$	0.07		$	1.53		$	1.23
Diluted:
Earnings from Continuing Operations	$	0.26		$	0.07		$	1.52		$	1.21
Discontinued Operations
Net Earnings		—			—			—			—
Net Gain on Disposal		—			—			—			—
Net Earnings per Common Share	$	0.26		$	0.07		$	1.52		$	1.21
Average Common Shares Outstanding:
Basic		1,953			1,943			1,952			1,942
Diluted		1,983			1,976			1,983			1,976
(a)    Other expense/(income), net
Interest expense	$	100		$	91		$	349		$	310
Interest income		(52	)		(39	)		(148	)		(105	)
Foreign exchange transaction losses/(gains)		11			(30	)		58			5
Other, net		(190	)		(32	)		(222	)		(158	)
	$	(131	)	$	(10	)	$	37		$	52

16

APPENDIX 1

BRISTOL-MYERS SQUIBB COMPANY

SPECIFIED ITEMS

FOR THE THREE MONTHS ENDED DECEMBER 31, 2005 AND 2004

(Unaudited, in millions of dollars)

Three months ended December 31, 2005	Cost of products sold		Research and development		Provision for restructuring and other items, net		Litigation settlement expense		Other income			Total
Litigation Matters:
Private litigation and governmental investigations	$	—	$	—	$	—	$	185	$	—		$	185
Pharmaceutical pricing and sales litigation		—		—		—		12		—			12
		—		—		—		197		—			197
Other:
Accelerated depreciation and asset impairment		27		12		—		—		—			39
Downsizing and streamlining of worldwide operations		1		14		32		—		—			47
Upfront and milestone payments		—		9		—		—		—			9
Termination of muraglitazar agreement		5		—		—		—		(143	)		(138	)
	$	33	$	35	$	32	$	197	$	(143	)		154
Income taxes on items above													(52	)
Reduction to Net Earnings from Continuing Operations												$	102

Three months ended December 31, 2004	Cost of products sold		Research and development		Gain on sale of business			Provision for restructuring and other items, net		Litigation settlement expense		Total
Litigation Matters:
Private litigation and governmental investigations	$	—	$	—	$	—		$	—	$	16	$	16
Other:
Gain on sale of Adult Nutritional business		—		—		(4	)		—		—		(4	)
Accelerated depreciation		30		2		—			—		—		32
Downsizing and streamlining of worldwide operations		—		—		—			29		—		29
Milestone payment		—		15		—			—		—		15
	$	30	$	17	$	(4	)	$	29	$	16		88
Income taxes on items above													(26	)
Deferred taxes in anticipation of repatriation of foreign earnings													575
Reduction to Net Earnings from Continuing Operations												$	637

17

APPENDIX 1

BRISTOL-MYERS SQUIBB COMPANY

SPECIFIED ITEMS

FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2005 AND 2004

(Unaudited, in millions of dollars)

Twelve months ended December 31, 2005	Cost of products sold		Research and development		Provision for restructuring		Gain on sale of business			Litigation settlement expense / (income)			Other (income)/ expense, net			Total
Litigation Matters:
Private litigations and governmental investigations	$	—	$	—	$	—	$	—		$	558		$	—		$	558
Pharmaceutical pricing and sales litigation		—		—		—		—			12			—			12
ERISA liability and other matters		—		—		—		—			20			—			20
Insurance recoveries		—		—		—		—			(321	)		—			(321	)
		—		—		—		—			269			—			269
Other:
Gain on sale of equity investment		—		—		—		—			—			(27	)		(27	)
Loss on sale of fixed assets		—		—		—		—			—			18			18
Accelerated depreciation and asset impairment		96		14		—		—			—			—			110
Gain on sale of Consumer Medicines businesses		—		—		—		(569	)		—			—			(569	)
Upfront and milestone payments		—		44		—		—			—			—			44
Debt retirement costs		—		—		—		—			—			69			69
Downsizing and streamlining of worldwide operations		1		14		32		—			—			—			47
Termination of muraglitazar agreement		5		—		—		—			—			(143	)		(138	)
	$	102	$	72	$	32	$	(569	)	$	269		$	(83	)		(177	)
Income taxes on items above																	126
Adjustment to taxes on repatriation of foreign earnings																	(135	)
Increase to Net Earnings from Continuing Operations																$	(186	)

Twelve months ended December 31, 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		Other expense, net		Total
Litigation Matters:
Private litigation and governmental investigations	$	—		$	—	$	—	$	—		$	—	$	336	$	—	$	336
Product liability		75			—		—		—			—		—		11		86
Pharmaceutical pricing and sales litigation		—			—		—		—			—		34		—		34
Commercial litigation		26			—		—		—			—		—		—		26
Anti-trust litigation		—			—		—		—			—		50		—		50
Product liability insurance recovery		(25	)		—		—		—			—		—		—		(25	)
		76			—		—		—			—		420		11		507
Other:
Gain on sale of Adult Nutritional business		—			—		—		(320	)		—		—		—		(320	)
Accelerated depreciation		100			3		—		—			—		—		4		107
Downsizing and streamlining of worldwide operations		1			—		—		—			104		—		—		105
Upfront and milestone payments		—			55		—		—			—		—		—		55
Acordis IPR&D write-off		—			—		63		—			—		—		—		63
	$	177		$	58	$	63	$	(320	)	$	104	$	420	$	15		517
Income taxes on items above																		(130	)
Deferred taxes in anticipation of repatriation of foreign earnings																		575
Other tax adjustments																		10
Reduction to Net Earnings from Continuing Operations																	$	972

18

EX-99.2

Exhibit 99.2

BRISTOL-MYERS SQUIBB COMPANY

NET SALES FROM CONTINUING OPERATIONS

QUARTERLY SALES TREND ANALYSIS

($ in millions)

	2004																					2005																					% Change
	1st Qtr			2nd Qtr			6 Months			3rd Qtr			9 Months			4th Qtr			Year			1st Qtr			2nd Qtr			6 Months			3rd Qtr			9 Months			4th Qtr			Year			Qtr vs. Qtr		YTD vs. YTD
Net Sales
Pharmaceuticals	$	3,710		$	3,856		$	7,566		$	3,848		$	11,414		$	4,150		$	15,564		$	3,578		$	3,886		$	7,464		$	3,778		$	11,242		$	4,012		$	15,254		-3	%	-2	%
US Pharmaceuticals		1,926			2,048			3,974			2,135			6,109			2,242			8,351			1,767			2,084			3,851			2,069			5,920			2,220			8,140		-1	%	-3	%
Primary Care		1,381			1,419			2,800			1,496			4,296			1,721			6,017			1,258			1,539			2,797			1,486			4,283			1,653			5,936		-4	%	-1	%
Oncology/Virology		432			510			942			487			1,429			351			1,780			348			345			693			370			1,063			391			1,454		11	%	-18	%
Neuroscience		113			119			232			152			384			170			554			161			200			361			213			574			176			750		4	%	35	%
Latin America/Canada		251			257			508			246			754			287			1,041			258			306			564			285			849			325			1,174		13	%	13	%
Europe and Middle East Medicines		1,189			1,185			2,374			1,128			3,502			1,219			4,721			1,201			1,112			2,313			1,030			3,343			1,053			4,396		-14	%	-7	%
Asia/Pacific Medicines		287			318			605			297			902			354			1,256			299			329			628			342			970			354			1,324		—		5	%
Nutritionals		502			510			1,012			484			1,496			505			2,001			526			548			1,074			547			1,621			584			2,205		16	%	10	%
Related Healthcare		414			453			867			446			1,313			502			1,815			428			455			883			442			1,325			423			1,748		-16	%	-4	%
ConvaTec		217			234			451			237			688			266			954			228			247			475			250			725			267			992		—		4	%
Medical Imaging		139			151			290			145			435			154			589			145			151			296			150			446			156			602		1	%	2	%
Consumer Medicines		58			68			126			64			190			82			272			55			57			112			42			154			—			154		-100	%	-43	%
Total Company	$	4,626		$	4,819		$	9,445		$	4,778		$	14,223		$	5,157		$	19,380		$	4,532		$	4,889		$	9,421		$	4,767		$	14,188		$	5,019		$	19,207		-3	%	-1	%
	2004																					2005																					Basis Point Change
	1st Qtr			2nd Qtr			6 Months			3rd Qtr			9 Months			4th Qtr			Year			1st Qtr			2nd Qtr			6 Months			3rd Qtr			9 Months			4th Qtr			Year			Qtr vs. Qtr		YTD vs. YTD
% of Total Sales
Pharmaceuticals		80.2	%		80.0	%		80.1	%		80.6	%		80.3	%		80.5	%		80.3	%		79.0	%		79.5	%		79.2	%		79.3	%		79.2	%		79.9	%		79.4	%	(60	)	(90	)
US Pharmaceuticals		41.6	%		42.5	%		42.1	%		44.7	%		43.0	%		43.5	%		43.1	%		39.0	%		42.6	%		40.9	%		43.4	%		41.7	%		44.2	%		42.4	%	70		(70	)
Primary Care		29.9	%		29.4	%		29.6	%		31.3	%		30.2	%		33.4	%		31.0	%		27.8	%		31.4	%		29.7	%		31.2	%		30.2	%		32.9	%		30.9	%	(50	)	(10	)
Oncology/Virology		9.3	%		10.6	%		10.0	%		10.2	%		10.1	%		6.8	%		9.2	%		7.7	%		7.1	%		7.4	%		7.8	%		7.5	%		7.8	%		7.6	%	100		(160	)
Neuroscience		2.4	%		2.5	%		2.5	%		3.2	%		2.7	%		3.3	%		2.9	%		3.5	%		4.1	%		3.8	%		4.4	%		4.0	%		3.5	%		3.9	%	20		100
Latin America/Canada		5.4	%		5.3	%		5.4	%		5.1	%		5.3	%		5.6	%		5.4	%		5.7	%		6.3	%		6.0	%		6.0	%		6.0	%		6.5	%		6.1	%	90		70
Europe and Middle East Medicines		25.7	%		24.6	%		25.1	%		23.6	%		24.6	%		23.6	%		24.4	%		26.5	%		22.7	%		24.6	%		21.6	%		23.6	%		21.0	%		22.9	%	(260	)	(150	)
Asia/Pacific Medicines		6.2	%		6.6	%		6.4	%		6.2	%		6.3	%		6.9	%		6.5	%		6.6	%		6.7	%		6.7	%		7.2	%		6.8	%		7.1	%		6.9	%	20		40
Nutritionals		10.9	%		10.6	%		10.7	%		10.1	%		10.5	%		9.8	%		10.3	%		11.6	%		11.2	%		11.4	%		11.5	%		11.4	%		11.7	%		11.5	%	190		120
Related Healthcare		8.9	%		9.4	%		9.2	%		9.3	%		9.2	%		9.7	%		9.4	%		9.4	%		9.3	%		9.4	%		9.2	%		9.4	%		8.4	%		9.1	%	(130	)	(30	)
ConvaTec		4.7	%		4.9	%		4.8	%		5.0	%		4.8	%		5.1	%		4.9	%		5.0	%		5.0	%		5.1	%		5.2	%		5.1	%		5.3	%		5.2	%	20		30
Medical Imaging		3.0	%		3.1	%		3.1	%		3.0	%		3.1	%		3.0	%		3.1	%		3.2	%		3.1	%		3.1	%		3.1	%		3.2	%		3.1	%		3.1	%	10		—
Consumer Medicines		1.2	%		1.4	%		1.3	%		1.3	%		1.3	%		1.6	%		1.4	%		1.2	%		1.2	%		1.2	%		0.9	%		1.1	%		—			0.8	%	(160	)	(60	)
Total Company		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

BRISTOL-MYERS SQUIBB COMPANY

SEGMENT SALES AND COMPOSITION OF CHANGE IN SALES FOR CONTINUING OPERATIONS

FOR THE PERIOD ENDED DECEMBER 31, 2005

(DOLLARS IN MILLIONS)

	WW Medicines			Nutritionals			Convatec			Medical Imaging			Consumer Medicines			Continuing Operations
QUARTER-TO-DATE
Price Increases(Decreases)		1	%		1	%		-2	%		1	%		—			1	%
Foreign Exchange		-2	%		1	%		-4	%		—			—			-2	%
Volume		-2	%		14	%		6	%		—			-100	%		-2	%
Total Change		-3	%		16	%		—			1	%		-100	%		-3	%
Total 2005 Period to Date Sales	$	4,012		$	584		$	267		$	156			—		$	5,019
Total 2004 Period to Date Sales	$	4,150		$	505		$	266		$	154		$	82		$	5,157
	WW Medicines			Nutritionals			Convatec			Medical Imaging			Consumer Medicines			Continuing Operations
YEAR-TO-DATE
Price Increases(Decreases)		—			2	%		-2	%		—			—			—
Foreign Exchange		1	%		1	%		1	%		—			—			1	%
Volume		-3	%		7	%		5	%		2	%		-43	%		-2	%
Total Change		-2	%		10	%		4	%		2	%		-43	%		-1	%
Total 2005 Period to Date Sales	$	15,254		$	2,205		$	992		$	602		$	154		$	19,207
Total 2004 Period to Date Sales	$	15,564		$	2,001		$	954		$	589		$	272		$	19,380

BRISTOL-MYERS SQUIBB COMPANY

CONSOLIDATED STATEMENT OF EARNINGS

CONTINUING OPERATIONS

($ in Millions, except per share amounts)

	2004																					2005																					% Change
	1st Qtr			2nd Qtr			6 Months			3rd Qtr			9 Months			4th Qtr			Year			1st Qtr			2nd Qtr			6 Months			3rd Qtr			9 Months			4th Qtr			Year			Qtr vs. Qtr		YTD vs. YTD
Net Sales	$	4,626		$	4,819		$	9,445		$	4,778		$	14,223		$	5,157		$	19,380		$	4,532		$	4,889		$	9,421		$	4,767		$	14,188		$	5,019		$	19,207		-3	%	-1	%
Cost of products sold		1,357			1,500			2,857			1,467			4,324			1,665			5,989			1,367			1,483			2,850			1,483			4,333			1,595			5,928		-4	%	-1	%
Marketing, selling, and administrative		1,226			1,201			2,427			1,199			3,626			1,390			5,016			1,183			1,268			2,451			1,286			3,737			1,369			5,106		-2	%	2	%
Advertising and promotion		316			346			662			325			987			424			1,411			318			365			683			349			1,032			444			1,476		5	%	5	%
Research and development		583			625			1,208			615			1,823			677			2,500			653			649			1,302			669			1,971			775			2,746		14	%	10	%
Acquired in-process R&D		—			62			62			1			63			—			63			—			—			—			—			—			—			—		—		-100	%
Provision for restructuring		12			6			18			57			75			29			104			3			2			5			(5	)		—			32			32		10	%	-69	%
Litigation charges, net		—			379			379			25			404			16			420			124			(26	)		98			(26	)		72			197			269		*		-36	%
Gain on sale of businesses		(295	)		(18	)		(313	)		(3	)		(316	)		(4	)		(320	)		—			—			—			(569	)		(569	)		—			(569	)	100	%	-78	%
Equity in net income from affiliates, net		(75	)		(59	)		(134	)		(70	)		(204	)		(69	)		(273	)		(69	)		(87	)		(156	)		(84	)		(240	)		(94	)		(334	)	-36	%	-22	%
Other (income) /expense, net		38			8			46			16			62			(10	)		52			25			105			130			38			168			(131	)		37		*		-29	%
Total expenses		3,162			4,050			7,212			3,632			10,844			4,118			14,962			3,604			3,759			7,363			3,141			10,504			4,187			14,691		2	%	-2	%
Earnings from Continuing Operations Before Minority Interest and Income Taxes		1,464			769			2,233			1,146			3,379			1,039			4,418			928			1,130			2,058			1,626			3,684			832			4,516		-20	%	2	%
Provision for income taxes		396			118			514			239			753			766			1,519			268			(21	)		247			507			754			178			932		-77	%	-39	%
Minority Interest, Net		107			128			235			152			387			134			521			122			160			282			155			437			155			592		16	%	14	%
Earnings from Continuing Operations	$	961		$	523		$	1,484		$	755		$	2,239		$	139		$	2,378		$	538		$	991		$	1,529		$	964		$	2,493		$	499		$	2,992		*		26	%
Interest expense on conversion of convertible debt bonds, net of tax		1			1			2			2			4			3			7			4			5			9			6			15			7			22
Earnings from continuing operations used for diluted earnings per common share calculation	$	962		$	524		$	1,486		$	757		$	2,243		$	142		$	2,385		$	542		$	996		$	1,538		$	970		$	2,508		$	506		$	3,014
Diluted Earnings per Common Share Continuing Operations**	$	0.49		$	0.27		$	0.76		$	0.38		$	1.14		$	0.07		$	1.21		$	0.27		$	0.50		$	0.78		$	0.49		$	1.27		$	0.26		$	1.52		*		26	%
Average Common Shares Outstanding - Diluted		1,976			1,976			1,976			1,975			1,975			1,976			1,976			1,981			1,984			1,982			1,984			1,983			1,983			1,983		—		—
Dividends declared per common share	$	0.28		$	0.28		$	0.56		$	0.28		$	0.84		$	0.28		$	1.12		$	0.28		$	0.28		$	0.56		$	0.28		$	0.84		$	0.28		$	1.12		—		—
	2004																					2005																					Basis Point Change
	1st Qtr			2nd Qtr			6 Months			3rd Qtr			9 Months			4th Qtr			Year			1st Qtr			2nd Qtr			6 Months			3rd Qtr			9 Months			4th Qtr			Year			Qtr vs. Qtr		YTD vs. YTD
% of Net Sales
Gross Margin		70.7	%		68.9	%		69.8	%		69.3	%		69.6	%		67.7	%		69.1	%		69.8	%		69.7	%		69.7	%		68.9	%		69.5	%		68.2	%		69.1	%	50		—
Cost of products sold		29.3	%		31.1	%		30.2	%		30.7	%		30.4	%		32.3	%		30.9	%		30.2	%		30.3	%		30.3	%		31.1	%		30.5	%		31.8	%		30.9	%	(50	)	—
Marketing, selling, and admin		26.5	%		24.9	%		25.7	%		25.1	%		25.5	%		27.0	%		25.9	%		26.1	%		25.9	%		26.0	%		27.0	%		26.3	%		27.3	%		26.6	%	30		70
Advertising and promotion		6.8	%		7.2	%		7.0	%		6.8	%		6.9	%		8.2	%		7.3	%		7.0	%		7.5	%		7.2	%		7.3	%		7.3	%		8.8	%		7.7	%	60		40
Research and development		12.6	%		13.0	%		12.8	%		12.9	%		12.8	%		13.1	%		12.9	%		14.4	%		13.3	%		13.8	%		14.0	%		13.9	%		15.4	%		14.3	%	230		140
Total expenses		68.4	%		84.0	%		76.4	%		76.0	%		76.2	%		79.9	%		77.2	%		79.5	%		76.9	%		78.2	%		65.9	%		74.0	%		83.4	%		76.5	%	350		(70	)
Earnings from Continuing Operations Before Minority Interest and Provision for Income Taxes		31.6	%		16.0	%		23.6	%		24.0	%		23.8	%		20.1	%		22.8	%		20.5	%		23.1	%		21.8	%		34.1	%		26.0	%		16.6	%		23.5	%	(350	)	70
Earnings from Continuing Operations		20.8	%		10.9	%		15.7	%		15.8	%		15.7	%		2.7	%		12.3	%		11.9	%		20.3	%		16.2	%		20.2	%		17.6	%		9.9	%		15.6	%	720		330
Other Ratios
Effective Tax Rate		27.0	%		15.3	%		23.0	%		20.9	%		22.3	%		73.7	%		34.4	%		28.9	%		-1.9	%		12.0	%		31.2	%		20.5	%		21.4	%		20.6	%
	2004																					2005																					% Change
	1st Qtr			2nd Qtr			6 Months			3rd Qtr			9 Months			4th Qtr			Year			1st Qtr			2nd Qtr			6 Months			3rd Qtr			9 Months			4th Qtr			Year			Qtr vs. Qtr		YTD vs. YTD
Other (Income) /Expense, net
Interest expense	$	69		$	70		$	139		$	80		$	219		$	91		$	310		$	97		$	73		$	170		$	79		$	249		$	100		$	349		10	%	13	%
Interest income		(17	)		(21	)		(38	)		(29	)		(67	)		(38	)		(105	)		(45	)		(23	)		(68	)		(28	)		(96	)		(52	)		(148	)	-37	%	-41	%
Foreign exchange		17			38			55			(20	)		35			(30	)		5			12			35			47			—			47			11			58		137	%	*
Other, net		(31	)		(79	)		(110	)		(15	)		(125	)		(33	)		(158	)		(39	)		20			(19	)		(13	)		(32	)		(190	)		(222	)	*		-41	%
	$	38		$	8		$	46		$	16		$	62		$	(10	)	$	52		$	25		$	105		$	130		$	38		$	168		$	(131	)	$	37		*		-29	%

* in excess of +/- 200%

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

BRISTOL-MYERS SQUIBB COMPANY

WORLDWIDE NET SALES FROM CONTINUING OPERATIONS BY PRODUCT

QUARTERLY SALES TREND ANALYSIS

($ in millions)

	2004														2005														% Change
	1st Qtr		2nd Qtr		6 Months		3rd Qtr		9 Months		4th Qtr		Year		1st Qtr		2nd Qtr		6 Months		3rd Qtr		9 Months		4th Qtr		Year		Qtr vs. Qtr		YTD vs. YTD
Total Company	$	4,626	$	4,819	$	9,445	$	4,778	$	14,223	$	5,157	$	19,380	$	4,532	$	4,889	$	9,421	$	4,767	$	14,188	$	5,019	$	19,207	-3	%	-1	%
PHARMACEUTICALS		3,710		3,856		7,566		3,848		11,414		4,150		15,564		3,578		3,886		7,464		3,778		11,242		4,012		15,254	-3	%	-2	%
Cardiovascular		1,748		1,891		3,639		1,951		5,590		2,150		7,740		1,712		2,031		3,743		1,935		5,678		2,090		7,768	-3	%	—
Plavix		697		769		1,466		902		2,368		959		3,327		814		968		1,782		980		2,762		1,061		3,823	11	%	15	%
Pravachol		671		656		1,327		598		1,925		710		2,635		520		625		1,145		527		1,672		584		2,256	-18	%	-14	%
Avapro/ Avalide		197		233		430		241		671		259		930		196		258		454		251		705		277		982	7	%	6	%
Coumadin		37		77		114		65		179		76		255		49		50		99		57		156		56		212	-26	%	-17	%
Monopril		65		72		137		69		206		68		274		59		54		113		49		162		46		208	-32	%	-24	%
Virology		343		385		728		399		1,127		454		1,581		430		452		882		438		1,320		445		1,765	-2	%	12	%
Reyataz		75		85		160		106		266		148		414		149		183		332		176		508		188		696	27	%	68	%
Sustiva		139		153		292		157		449		172		621		173		167		340		170		510		170		680	-1	%	10	%
Zerit		58		78		136		69		205		67		272		59		59		118		51		169		47		216	-30	%	-21	%
Videx/ Videx EC		71		69		140		67		207		67		274		49		43		92		41		133		41		174	-39	%	-36	%
Infectious Diseases		306		294		600		277		877		353		1,230		306		278		584		251		835		303		1,138	-14	%	-7	%
Cefzil		72		55		127		54		181		89		270		82		54		136		48		184		75		259	-16	%	-4	%
Baraclude		—		—		—		—		—		—		—		—		5		5		2		7		5		12	—		—
Oncology		543		619		1,162		566		1,728		427		2,155		387		371		758		380		1,138		395		1,533	-7	%	-29	%
Taxol		243		249		492		243		735		256		991		205		186		391		175		566		181		747	-29	%	-25	%
Erbitux		17		72		89		84		173		88		261		87		98		185		107		292		121		413	38	%	58	%
Paraplatin		228		241		469		177		646		27		673		44		33		77		42		119		38		157	41	%	-77	%
Affective (Psychiatric) Disorders		158		166		324		210		534		239		773		232		284		516		306		822		267		1,089	12	%	41	%
Abilify**		115		122		237		165		402		191		593		188		240		428		260		688		224		912	17	%	54	%
Metabolics		161		79		240		43		283		53		336		43		51		94		43		137		35		172	-34	%	-49	%
Glucophage franchise		161		79		240		43		283		53		336		43		51		94		43		137		35		172	-34	%	-49	%
Other Pharmaceuticals
Efferalgan		78		59		137		61		198		76		274		88		55		143		66		209		74		283	-3	%	3	%
NUTRITIONALS		502		510		1,012		484		1,496		505		2,001		526		548		1,074		547		1,621		584		2,205	16	%	10	%
Enfamil		208		224		432		203		635		224		859		235		250		485		230		715		277		992	24	%	15	%
RELATED HEALTHCARE		414		453		867		446		1,313		502		1,815		428		455		883		442		1,325		423		1,748	-16	%	-4	%
CONVATEC		217		234		451		237		688		266		954		228		247		475		250		725		267		992	—		4	%
Ostomy		127		137		264		135		399		152		551		127		139		266		139		405		145		550	-5	%	—
Wound Therapeutics		87		94		181		99		280		111		391		97		103		200		104		304		112		416	1	%	6	%
MEDICAL IMAGING		139		151		290		145		435		154		589		145		151		296		150		446		156		602	1	%	2	%
Cardiolite		92		105		197		101		298		108		406		102		108		210		106		316		100		416	-7	%	2	%
CONSUMER MEDICINES		58		68		126		64		190		82		272		55		57		112		42		154		—		154	-100	%	-43	%

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

*** In excess of +/- 200%

BRISTOL-MYERS SQUIBB COMPANY

DOMESTIC* NET SALES FROM CONTINUING OPERATIONS BY PRODUCT

QUARTERLY SALES TREND ANALYSIS

($ in millions)

																																				% Change in U.S. Total Prescription****
	2004																2005															% Change				NPA				NGPS
	1st Qtr			2nd Qtr		6 Months		3rd Qtr		9 Months		4th Qtr			Year		1st Qtr		2nd Qtr			6 Months		3rd Qtr		9 Months		4th Qtr		Year		Qtr vs. Qtr		YTD vs. YTD		Qtr vs. Qtr		YTD vs. YTD		Qtr vs. Qtr		YTD vs. YTD
Total Company	$	2,508		$	2,662	$	5,170	$	2,633	$	7,803	$	2,810		$	10,613	$	2,310	$	2,668		$	4,978	$	2,638	$	7,616	$	2,845	$	10,461	1	%	-1	%
PHARMACEUTICALS		1,966			2,071		4,037		2,154		6,191		2,255			8,446		1,777		2,097			3,874		2,082		5,956		2,234		8,190	-1	%	-3	%
Cardiovascular		1,074			1,207		2,281		1,320		3,601		1,482			5,083		1,080		1,377			2,457		1,328		3,785		1,496		5,281	1	%	4	%
Plavix		585			651		1,236		781		2,017		816			2,833		673		823			1,496		833		2,329		906		3,235	11	%	14	%	10	%	13	%	9	%	13	%
Pravachol		343			326		669		318		987		433			1,420		258		353			611		297		908		366		1,274	-15	%	-10	%	-19	%	-17	%	-18	%	-16	%
Avapro/ Avalide		116			144		260		148		408		154			562		102		157			259		147		406		168		574	9	%	2	%	7	%	11	%	6	%	12	%
Coumadin		31			70		101		58		159		69			228		42		42			84		49		133		50		183	-28	%	-20	%	-23	%	-19	%	-26	%	-20	%
Monopril		(1	)		13		12		13		25		9			34		3		2			5		1		6		3		9	-67	%	-74	%	-57	%	-61	%	-61	%	-60	%
Virology		187			218		405		231		636		258			894		231		226			457		237		694		240		934	-7	%	4	%
Reyataz		66			65		131		75		206		99			305		92		98			190		105		295		110		405	11	%	33	%	25	%	39	%	25	%	37	%
Sustiva		76			90		166		95		261		103			364		103		97			200		101		301		102		403	-1	%	11	%	5	%	5	%	6	%	8	%
Zerit		16			38		54		34		88		31			119		26		26			52		24		76		21		97	-32	%	-18	%	-32	%	-31	%	-31	%	-30	%
Videx/ Videx EC		29			25		54		27		81		25			106		10		5			15		7		22		7		29	-72	%	-73	%	-75	%	-65	%	-76	%	-65	%
Infectious Diseases		78			62		140		66		206		105			311		92		62			154		55		209		79		288	-25	%	-7	%
Cefzil		42			29		71		30		101		60			161		50		30			80		27		107		46		153	-23	%	-5	%	-15	%	-10	%	-17	%	-11	%
Baraclude		—			—		—		—		—		—			—		—		5			5		2		7		4		11	—		—		N/A		N/A		N/A		N/A
Oncology		240			290		530		255		785		92			877		115		112			227		131		358		144		502	57	%	-43	%
Taxol		14			1		15		9		24		7			31		4		4			8		4		12		5		17	-29	%	-45	%	N/A		N/A		N/A		N/A
Erbitux		17			72		89		83		172		88			260		87		97			184		106		290		121		411	38	%	58	%	N/A		N/A		N/A		N/A
Paraplatin		198			206		404		145		549		(12	)		537		15		(1	)		14		9		23		5		28	142	%	-95	%	N/A		N/A		N/A		N/A
Affective (Psychiatric) Disorders		117			121		238		157		395		180			575		167		206			373		221		594		183		777	2	%	35	%
Abilify**		113			119		232		152		384		170			554		161		200			361		214		575		175		750	3	%	35	%	30	%	42	%	29	%	40	%
Metabolics		155			73		228		39		267		48			315		39		44			83		38		121		29		150	-40	%	-52	%
Glucophage franchise		155			73		228		39		267		48			315		39		44			83		38		121		29		150	-40	%	-52	%	-41	%	-63	%	-41	%	-62	%
Other Pharmaceuticals
Efferalgan		—			—		—		—		—		—			—		—		—			—		—		—		—		—	—		—		N/A		N/A		N/A		N/A
NUTRITIONALS		256			255		511		230		741		250			991		255		267			522		266		788		282		1,070	13	%	8	%
Enfamil		144			158		302		137		439		157			596		162		171			333		168		501		184		685	17	%	15	%	N/A		N/A		N/A		N/A
RELATED HEALTHCARE		245			264		509		257		766		294			1,060		242		253			495		252		747		225		972	-23	%	-8	%
CONVATEC		71			71		142		72		214		87			301		66		71			137		82		219		93		312	7	%	4	%
Ostomy		40			41		81		39		120		47			167		34		38			72		43		115		46		161	-2	%	-4	%	N/A		N/A		N/A		N/A
Wound Therapeutics		30			30		60		31		91		39			130		30		29			59		34		93		40		133	3	%	2	%	N/A		N/A		N/A		N/A
MEDICAL IMAGING		120			127		247		123		370		128			498		124		127			251		129		380		132		512	3	%	3	%
Cardiolite		83			92		175		91		266		95			361		91		96			187		95		282		88		370	-7	%	2	%	N/A		N/A		N/A		N/A
CONSUMER MEDICINES		54			66		120		62		182		79			261		52		55			107		41		148		—		148	-100	%	-43	%

* This table presents Total Company sales on a legal entity source basis and segment and product sales on a country management reported basis. As a result, the sum of segment sales does not tie to Total Company sales.

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

*** In excess of +/- 200%

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

BRISTOL-MYERS SQUIBB COMPANY

INTERNATIONAL* NET SALES FROM CONTINUING OPERATIONS BY PRODUCT

QUARTERLY SALES TREND ANALYSIS

($ in millions)

	2004														2005														% Change
	1st Qtr		2nd Qtr		6 Months		3rd Qtr		9 Months		4th Qtr		Year		1st Qtr		2nd Qtr		6 Months		3rd Qtr		9 Months		4th Qtr		Year		Qtr vs. Qtr		YTD vs. YTD
Total Company	$	2,118	$	2,157	$	4,275	$	2,145	$	6,420	$	2,347	$	8,767	$	2,222	$	2,221	$	4,443	$	2,129	$	6,572	$	2,174	$	8,746	-7	%	—
PHARMACEUTICALS		1,744		1,785		3,529		1,694		5,223		1,895		7,118		1,801		1,789		3,590		1,696		5,286		1,778		7,064	-6	%	-1	%
Cardiovascular		674		684		1,358		631		1,989		668		2,657		632		654		1,286		607		1,893		594		2,487	-11	%	-6	%
Plavix		112		118		230		121		351		143		494		141		145		286		147		433		155		588	8	%	19	%
Pravachol		328		330		658		280		938		277		1,215		262		272		534		230		764		218		982	-21	%	-19	%
Avapro/ Avalide		81		89		170		93		263		105		368		94		101		195		104		299		109		408	4	%	11	%
Coumadin		6		7		13		7		20		7		27		7		8		15		8		23		6		29	-14	%	7	%
Monopril		66		59		125		56		181		59		240		56		52		108		48		156		43		199	-27	%	-17	%
Virology		156		167		323		168		491		196		687		199		226		425		201		626		205		831	5	%	21	%
Reyataz		9		20		29		31		60		49		109		57		85		142		71		213		78		291	59	%	167	%
Sustiva		63		63		126		62		188		69		257		70		70		140		69		209		68		277	-1	%	8	%
Zerit		42		40		82		35		117		36		153		33		33		66		27		93		26		119	-28	%	-22	%
Videx/ Videx EC		42		44		86		40		126		42		168		39		38		77		34		111		34		145	-19	%	-14	%
Infectious Diseases		228		232		460		211		671		248		919		214		216		430		196		626		224		850	-10	%	-8	%
Cefzil		30		26		56		24		80		29		109		32		24		56		21		77		29		106	—		-3	%
Baraclude		—		—		—		—		—		—		—		—		—		—		—		—		1		1	—		—
Oncology		303		329		632		311		943		335		1,278		272		259		531		249		780		251		1,031	-25	%	-19	%
Taxol		229		248		477		234		711		249		960		201		182		383		171		554		176		730	-29	%	-24	%
Erbitux		—		—		—		1		1		—		1		—		1		1		1		2		—		2	—		100	%
Paraplatin		30		35		65		32		97		39		136		29		34		63		33		96		33		129	-15	%	-5	%
Affective (Psychiatric) Disorders		41		45		86		53		139		59		198		65		78		143		85		228		84		312	42	%	58	%
Abilify**		2		3		5		13		18		21		39		27		40		67		46		113		49		162	133	%	*	**
Metabolics		6		6		12		4		16		5		21		4		7		11		5		16		6		22	20	%	5	%
Glucophage franchise		6		6		12		4		16		5		21		4		7		11		5		16		6		22	20	%	5	%
Other Pharmaceuticals
Efferalgan		78		59		137		61		198		76		274		88		55		143		66		209		74		283	-3	%	3	%
NUTRITIONALS		246		255		501		254		755		255		1,010		271		281		552		281		833		302		1,135	18	%	12	%
Enfamil		64		66		130		66		196		67		263		73		79		152		62		214		93		307	39	%	17	%
RELATED HEALTHCARE		169		189		358		189		547		208		755		186		202		388		190		578		198		776	-5	%	3	%
CONVATEC		146		163		309		165		474		179		653		162		176		338		168		506		174		680	-3	%	4	%
Ostomy		87		96		183		96		279		105		384		93		101		194		96		290		99		389	-6	%	1	%
Wound Therapeutics		57		64		121		68		189		72		261		67		74		141		70		211		72		283	—		8	%
MEDICAL IMAGING		19		24		43		22		65		26		91		21		24		45		21		66		24		90	-8	%	-1	%
Cardiolite		9		13		22		10		32		13		45		11		12		23		11		34		12		46	-8	%	2	%
CONSUMER MEDICINES		4		2		6		2		8		3		11		3		2		5		1		6		—		6	-100	%	-45	%

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

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

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

*** In excess of +/- 200%

BRISTOL-MYERS SQUIBB COMPANY

EARNINGS FROM CONTINUING OPERATIONS BEFORE MINORITY INTEREST AND INCOME TAXES

EXCLUDING SPECIFIED ITEMS

($ in millions)

	2005
	Q1			Q2			Q3			Q4			TOTAL YEAR
Earnings from Continuing Operations Before Minority Interest and Provision for Income Taxes	$	928		$	1,130		$	1,626		$	832		$	4,516
Specified items:
Gain on sale of equity investment		(18	)		(9	)		—			—			(27	)
Litigation reserves		124			269			—			197			590
Insurance recoveries		—			(295	)		(26	)		—			(321	)
Provision for restructuring / other		68			94			31			95			288
Termination of muraglitizar agreement		—			—			—			(138	)		(138	)
Gain on sale of businesses		—			—			(569	)		—			(569	)
Earnings from Continuing Operations Before Minority Interest and Provision for Income Taxes Excluding Specified Items	$	1,102		$	1,189		$	1,062		$	986		$	4,339
	2004
	Q1			Q2			Q3			Q4			TOTAL YEAR
Earnings from Continuing Operations Before Minority Interest and Provision for 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 Provision for Income Taxes Excluding Specified Items	$	1,203		$	1,310		$	1,295		$	1,127		$	4,935

BRISTOL-MYERS SQUIBB COMPANY

DILUTED EARNINGS PER COMMON SHARE FROM CONTINUING OPERATIONS

EXCLUDING SPECIFIED ITEMS

	2005
	Q1			Q2			Q3			Q4			TOTAL YEAR *
Diluted Earnings per Common Share from Continuing Operations	$	0.27		$	0.50		$	0.49		$	0.26		$	1.52
Specified items:
Gain on sale of equity investment		(0.01	)		—			—			—			(0.01	)
Litigation reserves		0.05			0.10			—			0.06			0.22
Insurance recoveries		—			(0.09	)		(0.01	)		—			(0.10	)
Provision for restructuring / other		0.03			0.03			0.02			0.03			0.10
Termination of muraglitizar agreement		—			—			—			(0.04	)		(0.04	)
Gain on sale of businesses		—			—			(0.19	)		—			(0.19	)
Tax items		—			(0.07	)		—			—			(0.07	)
Diluted Earnings per Common Share from Continuing Operations Excluding Specified Items	$	0.34		$	0.47		$	0.31		$	0.31		$	1.43
	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

* 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 DECEMBER 31, 2005 AND 2004

($ in millions)

Three months ended December 31, 2005	Cost of products sold		Research and development		Provision for restructuring and other items, net			Litigation settlement expense		Other income			Total
Litigation Matters:
Private litigation and governmental investigations	$	—	$	—	$	—		$	185	$	—		$	185
Pharmaceutical pricing and sales litigation		—		—		—			12		—			12
		—		—		—			197		—			197
Other:
Accelerated depreciation and asset impairment		27		12		—			—		—			39
Downsizing and streamlining of worldwide operations		1		14		32			—		—			47
Upfront and milestone payments		—		9		—			—		—			9
Termination of muraglitazar agreement		5		—		—			—		(143	)		(138	)
	$	33	$	35	$	32		$	197	$	(143	)		154
Income taxes on items above														(52	)
Reduction to Net Earnings from Continuing Operations													$	102
Three months ended December 31, 2004	Cost of products sold		Research and development		Gain on sale of business			Provision for restructuring and other items, net		Litigation settlement expense			Total
Litigation Matters:
Private litigation and governmental investigations	$	—	$	—	$	—		$	—	$	16		$	16
Other:
Gain on sale of Adult Nutritional business		—		—		(4	)		—		—			(4	)
Accelerated depreciation		30		2		—			—		—			32
Downsizing and streamlining of worldwide operations		—		—		—			29		—			29
Milestone payment		—		15		—			—		—			15
	$	30	$	17	$	(4	)	$	29	$	16			88
Income taxes on items above														(26	)
Deferred taxes on anticipation of repatriation of foreign earnings														575
Reduction to Net Earnings from Continuing Operations													$	637

BRISTOL-MYERS SQUIBB COMPANY

SPECIFIED ITEMS

FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2005 AND 2004

($ in millions)

Twelve months ended December 31, 2005	Cost of products sold		Research and development		Provision for restructuring		Gain on sale of business			Litigation settlement expense/ (income)			Other (income)/ expense, net			Total
Litigation Matters:
Private litigations and governmental investigations	$	—	$	—	$	—	$	—		$	558		$	—		$	558
Pharmaceutical pricing and sales litigation		—		—		—		—			12			—			12
ERISA liability and other matters		—		—		—		—			20			—			20
Insurance recoveries		—		—		—		—			(321	)		—			(321	)
		—		—		—		—			269			—			269
Other:
Gain on sale of equity investment		—		—		—		—			—			(27	)		(27	)
Loss on sale of fixed assets		—		—		—		—			—			18			18
Accelerated depreciation and asset impairment		96		14		—		—			—			—			110
Gain on sale of Consumer Medicines businesses		—		—		—		(569	)		—			—			(569	)
Upfront and milestone payments		—		44		—		—			—			—			44
Debt retirement costs		—		—		—		—			—			69			69
Downsizing and streamlining of worldwide operations		1		14		32		—			—			—			47
Termination of muraglitazar agreement		5		—		—		—			—			(143	)		(138	)
	$	102	$	72	$	32	$	(569	)	$	269		$	(83	)		(177	)
Income taxes on items above																	126
Adjustment to taxes on repatriation of foreign earnings																	(135	)
Increase to Net Earnings from Continuing Operations																$	(186	)

Twelve months ended December 31, 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		Other expense, net		Total
Litigation Matters:
Private litigation and governmental investigations	$	—		$	—	$	—	$	—		$	—	$	336	$	—	$	336
Product liability		75			—		—		—			—		—		11		86
Pharmaceutical pricing and sales litigation		—			—		—		—			—		34		—		34
Commercial litigation		26			—		—		—			—		—		—		26
Anti-trust litigation		—			—		—		—			—		50		—		50
Product liability insurance recovery		(25	)		—		—		—			—		—		—		(25	)
		76			—		—		—			—		420		11		507
Other:
Gain on sale of Adult Nutritional business		—			—		—		(320	)		—		—		—		(320	)
Accelerated depreciation		100			3		—		—			—		—		4		107
Downsizing and streamlining of worldwide operations		1			—		—		—			104		—		—		105
Milestone payments		—			55		—		—			—		—		—		55
Acordis IPR&D write-off		—			—		63		—			—		—		—		63
	$	177		$	58	$	63	$	(320	)	$	104	$	420	$	15		517
Income taxes on items above																		(130	)
Deferred taxed in anticipation of repartiation of foreign earnings																		575
Other tax adjustments																		10
Reduction to Net Earnings from Continuing Operations																	$	972

BRISTOL-MYERS SQUIBB COMPANY

SELECT BALANCE SHEET INFORMATION

($ in millions)

	March 31, 2004		June 30, 2004		September 30, 2004		December 31, 2004		March 31, 2005		June 30, 2005		September 30, 2005		December 31, 2005
Cash, cash equivalents and marketable debt securities	$	6,725	$	6,913	$	7,318	$	7,474	$	5,982	$	3,040	$	3,781	$	5,799
Receivables, net of allowances		3,106		3,508		3,808		4,373		3,647		3,315		3,306		3,378
Short-term borrowings		884		1,078		1,715		1,883		244		292		277		231
Long-term debt		8,635		8,376		8,540		8,463		8,326		6,008		5,895		8,364
Stockholders’ equity		10,533		10,431		10,663		10,202		10,381		10,801		11,268		11,208
Capital expenditures and capitalized software (for the quarter ended)		163		140		174		199		181		171		185		201

BRISTOL-MYERS SQUIBB COMPANY

2006 DILUTED EPS FROM CONTINUING OPERATIONS

IMPACT OF PROJECTED SPECIFIED ITEMS

	Diluted EPS Impact
Downsizing and streamlining of worldwide operations	$	0.03
Milestone Payments		0.03
Gain on sale of a product asset		(0.06	)
Total	$	—

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 annual net sales), the U.S. Pharmaceutical business’s net sales of the applicable product for each of the six quarters ended September 30, 2004 through December 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.

	September 30, 2004			December 31, 2004				March 31, 2005			June 30, 2005				September 30, 2005			December 31, 2005
	Net Sales		Months on Hand	Net Sales			Months on Hand	Net Sales		Months on Hand	Net Sales			Months on Hand	Net Sales		Months on Hand	Net Sales		Months on Hand
	($ in millions)			($ in millions)				($ in millions)			($ in millions)				($ in millions)			($ in millions)
Abilify (total revenue)	$	152	0.6	$	170		0.9	$	161	0.7	$	200		0.7	$	214	0.9	$	175	0.6
Avapro/Avalide		148	0.6		154		0.9		102	0.8		157		0.6		147	0.5		168	0.6
Cefzil		30	0.6		60		1.1		50	0.7		30		0.8		27	0.7		46	0.7
Coumadin		58	0.9		69		1.0		42	1.0		42		0.7		49	0.6		50	0.8
Dovonex		34	0.7		40		0.9		30	0.6		36		0.7		31	0.6		33	0.5
Erbitux*		83	0.2		88		0.2		87	**		97		—		106	—		121	—
Glucophage Franchise		39	1.0		48		1.1		39	1.0		44		0.8		38	0.7		29	0.7
Paraplatin		145	1.2		(12	)	1.2		15	0.9		(1	)	0.8		9	1.1		5	0.9
Plavix		781	0.6		816		0.9		673	0.8		823		0.6		833	0.4		906	0.6
Pravachol		318	0.6		433		1.0		258	0.8		353		0.7		297	0.5		366	0.6
Reyataz		75	0.6		99		0.9		92	0.8		98		0.8		105	0.6		110	0.5
Sustiva		95	0.7		103		0.8		103	0.8		97		0.8		101	0.6		102	0.6
Tequin		31	0.7		39		0.9		38	0.7		22		0.8		21	0.9		22	0.9
Videx/Videx EC		27	0.6		25		0.9		10	1.2		5		1.0		7	1.1		7	0.9
Zerit		34	0.7		31		0.9		26	0.8		26		0.8		24	0.8		21	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 December 31, 2005, there was no ERBITUX inventory held by wholesalers.

** Less than 0.1 months on hand.

BRISTOL-MYERS SQUIBB COMPANY

ESTIMATED MONTHS ON HAND OF TOP INTERNATIONAL PHARMACEUTICAL AND WORLDWIDE

NON-PHARMACEUTICAL PRODUCTS

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

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

The above months on hand information represents the Company’s estimates of aggregate product level inventory on hand at direct customers at the end of each quarter 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 thirty-one day period or other reasonable period. Factors that may affect the Company’s estimates include generic competition, seasonality of products, direct customer purchases in light of price increases, new product launches, new warehouse openings by direct customers, new customer stockings by direct customers and expected direct customer purchases for governmental bidding situations.