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): October 26, 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 October 26, 2006, Bristol-Myers Squibb Company (the “Company”) issued a press release announcing its financial results for the third quarter of 2006. 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 October 26, 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: October 26, 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 October 26, 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
	Jeff Macdonald	Blaine Davis
	Communications	Investor Relations
	212-546-4824	212-546-4631
	jeffrey.macdonald@bms.com	blaine.davis@bms.com

BRISTOL-MYERS SQUIBB COMPANY REPORTS FINANCIAL RESULTS FOR THE THIRD

QUARTER AND FIRST NINE MONTHS OF 2006

• Posts Third Quarter 2006 GAAP EPS of $0.17 and Non-GAAP EPS of $0.22

• PLAVIX^® Generic Launch Negatively Impacts Third Quarter Results

• Sales of Pharmaceutical Growth Drivers* Excluding PLAVIX^® Continue to Demonstrate Robust Sales Growth

• Raises 2006 EPS Guidance to $0.97 to $1.02 on GAAP Basis and $1.02 to $1.07 on Non-GAAP Basis

(NEW YORK, October 26, 2006) – Bristol-Myers Squibb Company (NYSE:BMY) today reported financial results for the third quarter and nine months ended September 30, 2006 and raised earnings guidance for the full year.

Bristol-Myers Squibb posted third quarter 2006 net sales from continuing operations of $4.2 billion, compared with $4.8 billion for the same period in 2005. The company reported third quarter 2006 net earnings from continuing operations of $338 million, or $0.17 per diluted share, under U.S. Generally Accepted Accounting Principles (GAAP), compared to $964 million, or $0.49 per diluted share for the same period in 2005, which included a significant one-time gain on the sale of the Consumer Medicines business. On a non-GAAP basis excluding specified items, third quarter 2006 net earnings from continuing operations were $438 million, or $0.22 per diluted share, compared to $602 million, or $0.31 per diluted share for the same period in 2005. The decrease in non-GAAP net earnings

in 2006 as compared to 2005 is mainly due to the impact of an at-risk launch of generic clopidogrel bisulfate, the loss of patent exclusivity on PRAVACHOL^® in major markets and increased investments behind the development of new products.

“After assuming the CEO role on an interim basis several weeks ago, I’ve been focused on our company’s strategy, growth prospects and people. I, along with the rest of our Board, believe that Bristol-Myers Squibb has a sound strategy in place to maximize shareholder value. We have one of the best pipelines in the industry and the right team in place to execute our strategy,” said Jim Cornelius, chief executive officer, Bristol-Myers Squibb. “Clearly, our third quarter overall performance was negatively impacted by generic competition to PLAVIX^® and the loss of exclusivity on PRAVACHOL^® earlier this year. However, our other major products continue to demonstrate robust, double-digit sales growth and the launches of our new products, SPRYCEL^™, ORENCIA^® and BARACLUDE^® are on track.”

For the nine months ended September 30, 2006, net sales from continuing operations decreased 3%, to $13.7 billion compared to the first nine months of 2005. Net earnings from continuing operations in the first nine months of 2006 on a GAAP basis were $1.7 billion, or $0.88 per diluted share, compared to $2.5 billion, or $1.27 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 $1.8 billion, or $0.89 per diluted share for the nine months ended September 30, 2006, compared to $2.2 billion, or $1.12 per diluted share for the same period last year.

PLAVIX^®

The company has previously disclosed certain developments in the pending PLAVIX^® patent litigation with Apotex Corp. and Apotex Inc. (Apotex) and the announcement on August 8, 2006 by Apotex that it had launched a generic clopidogrel bisulfate product that competes with PLAVIX^®. On August 31, 2006, a federal court granted a preliminary injunction enjoining further sales of Apotex’s generic product.

The at-risk launch of generic clopidogrel bisulfate had a significant adverse effect on sales in the third quarter, which the company estimates to be in the range of $525 million to $600 million. In the

2

first, second and third quarters of 2006, U.S. net sales for PLAVIX^® were $850 million, $988 million and $474 million, respectively. Estimated total U.S. prescription demand for clopidogrel bisulfate (branded and generic) increased by 14% in the third quarter of 2006 compared to 2005, while estimated total U.S. prescription demand for branded PLAVIX^® decreased by 32% in the same period. As a result of the lower demand for branded PLAVIX^®, the number of months of PLAVIX^® inventory in the U.S. wholesaler distribution channel increased to 1.5 months on hand at September 30, 2006.

The company expects that generic clopidogrel bisulfate that was sold into distribution channels will continue to satisfy a significant majority of prescription demand for the remainder of 2006. In addition, sales of generic clopidogrel bisulfate are expected to have a residual impact on PLAVIX^® sales into 2007 - the amount and duration of which will depend on the amount of generic product that Apotex sold into the distribution channels, and the rate at which such product will continue to satisfy overall prescription demand. The company cannot reliably estimate this impact at this point in time.

For information regarding PLAVIX^® litigation and related matters, please see the section titled “PLAVIX^® LITIGATION” below.

NEW PRODUCT AND PIPELINE DEVELOPMENTS

On September 21, the Committee for Medicinal Products for Human Use of the European Medicines Agency (EMEA) recommended a marketing authorization for SPRYCEL^™ (dasatinib) for the treatment of adults with chronic, accelerated, or myeloid or lymphoid blast phase chronic myeloid leukemia with resistance or intolerance to prior therapy, including GLEEVEC^® (imatinib mesylate) or Philadelphia chromosome-positive acute lymphoblastic leukemia with resistance or intolerance to prior therapy. The company received approval for SPRYCEL^™ from the U.S. Food and Drug Administration (FDA) in June 2006.

In September, Bristol-Myers Squibb and Gilead Sciences, Inc. submitted ATRIPLA^™ (efavirenz 600 mg / emtricitabine 200 mg / tenofovir disoproxil fumarate 300 mg) for regulatory approval in Canada. In addition, Bristol-Myers Squibb, Gilead Sciences, Inc. and Merck & Co., Inc. submitted a Marketing Authorization Application for ATRIPLA^™ to the EMEA in October. ATRIPLA^™, the first-ever once-daily single tablet three-drug regimen for human immunodeficiency virus (HIV) intended as a stand-alone therapy or in combination with other antiretrovirals, received approval from the FDA in July 2006.

3

Bristol-Myers Squibb and Otsuka Pharmaceutical Co., Ltd. received approval from the FDA in September and the EMEA in October for ABILIFY^® Injection, the first ready-to-use single-dose vial of an atypical antipsychotic to control agitation in adults with schizophrenia and bipolar mania.

On October 20, Bristol-Myers Squibb received FDA approval of a new once-daily 300 mg single capsule formulation of REYATAZ^® for the treatment of HIV-1 infection in adults as part of combination therapy, which can replace two REYATAZ^® 150 mg capsules in appropriate patients. Bristol-Myers Squibb now has one-pill, once-daily HIV medicine options available in three drug classes as part of combination therapy.

The company launched BARACLUDE^® for the treatment of chronic hepatitis B virus infection in several new markets during the third quarter, including Germany, France, the United Kingdom and Japan. BARACLUDE^® is currently approved in more than 50 countries worldwide, including the U.S. and China.

In August, Bristol-Myers Squibb and sanofi-aventis received approval from both the FDA and the EMEA for an additional indication for PLAVIX^® (clopidogrel bisulfate) to reduce the rate of death from any cause and the rate of a combined endpoint of re-infarction, stroke or death in patients with acute ST-segment elevation myocardial infarction (STEMI). An estimated 300,000 Americans suffer STEMI events each year, and survivors are at high risk of suffering another atherothrombotic event. PLAVIX^® has now received indications to reduce the risk of atherothrombotic events across the entire spectrum of acute coronary syndrome (ACS), which affects more than 2.8 million people in the U.S. and Europe. The STEMI indication was based on large-scale clinical trials involving more than 40,000 patients, highlighting the importance of intellectual property protection, which is essential to explore the full potential of medicines.

In October, the company moved its investigational anti-thrombosis compound apixaban into Phase III development. Apixaban is an oral direct factor Xa inhibitor. Apixaban has potential prophylactic and therapeutic value in a broad range of thrombotic conditions, including prevention and treatment of venous thromboembolism (including deep vein thrombosis and pulmonary embolism),

4

prevention of stroke associated with atrial fibrillation (AF), and prevention of the arterial thromboembolic events associated with ACS. AF is the most common heart beat abnormality (arrhythmia) in the U.S., with more than 2 million people diagnosed and living with this disorder – a number which is expected to double in the next 20 years. An estimated one in four people will be diagnosed with AF during their lifetime and AF is responsible for one out of every six strokes.

THIRD QUARTER RESULTS

• Third quarter 2006 net sales from continuing operations decreased 13% to $4.2 billion compared to the same period in 2005. The company estimates the third quarter 2006 sales impact from the at-risk launch of generic clopidogrel bisulfate in August 2006 to be in the range of $525 million to $600 million. U.S. net sales decreased 18% to $2.2 billion for the quarter compared to 2005, driven by the impact of generic clopidogrel bisulfate and the loss of exclusivity of PRAVACHOL^® in the U.S. in April 2006, partially offset by strong performance of the remaining pharmaceutical growth drivers and new products. International net sales decreased 7%, including a 2% favorable foreign exchange impact, to $2.0 billion primarily due to an increase in generic competition.

• Cost of products sold, as a percentage of net sales, increased to 35.3% in the third quarter of 2006 compared with 31.1% in 2005 in the same period. This increase was primarily due to the unfavorable impact of pharmaceutical net sales mix, including the loss of sales of PLAVIX^® due to the at-risk launch of generic clopidogrel bisulfate in August 2006 as well as impairment charges for a manufacturing facility and EMSAM^® related assets. In addition, in the third quarter of 2006, the company reported $24 million of expenses (or 0.6% as a percentage of net sales) in cost of products sold, which were reported in 2005 as marketing, selling and administrative expenses.

• Marketing, selling and administrative expenses decreased by 8% to $1.2 billion in the third quarter of 2006 compared to the same period in 2005, mainly due to the reclassification of certain costs from marketing, selling and administrative expenses to cost of products sold; lower sales force expenses resulting from the previously announced restructuring of the U.S. primary care sales organization that became effective in March 2006; and lower international expenses for PRAVACHOL^®.

5

• Advertising and product promotion spending decreased by 18% to $286 million in the third quarter of 2006 from $349 million in the same period in 2005, primarily driven by lower spending on mature brands, timing of PLAVIX^® spending and the divestiture of the U.S. and Canadian Consumer Medicines business in 2005, partially offset by increased investments in the other major products and new products including ORENCIA^® and SPRYCEL^™.

• Research and development expenses increased by 13% to $756 million in the third quarter of 2006 from $669 million in the same period in 2005, principally reflecting continued investments in late-stage compounds.

• In the third quarter of 2006, the company recorded pre-tax charges of $20 million related to the adoption of a new accounting standard for stock option expensing that became effective on January 1, 2006. The charges were recorded in cost of products sold, marketing, selling and administrative expenses, and research and development expenses.

INCOME TAXES

The effective income tax rate on earnings from continuing operations before minority interest and income taxes was 31.3% for the three months ended September 30, 2006, compared with 31.2% for the three months ended September 30, 2005.

SPECIFIED ITEMS

In the three months ended September 30, 2006 and 2005, the company recorded specified income and expense items that affected the comparability of the results.

The pre-tax specified items in 2006 included:

• $74 million in charges related to asset impairment, including a $27 million charge on a milestone payment made earlier in 2006 resulting from lower than expected sales of EMSAM^®, accelerated depreciation, and downsizing and streamlining of worldwide operations

• $17 million in upfront and milestone payments

• $38 million of income, net, from an adjustment to the commercial litigation reserve and an insurance recovery, partially offset by an increase to the product liability reserve

6

In addition, a charge of $39 million was recognized to reflect a change in estimate for taxes on a prior year item.

The pre-tax specified items in 2005 included:

• $569 million gain on sale of the U.S. and Canadian Consumer Medicines business and related assets

• $31 million net charges primarily associated with accelerated depreciation and asset impairment

• $26 million income from insurance recoveries related to various litigation matters

For additional information on specified items, see “Use of Non-GAAP Financial Information” and 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 17%, including a 1% favorable foreign exchange impact, to $3.2 billion in the third quarter of 2006 compared to the same period in 2005. Worldwide sales of the products that the company views as growth drivers* decreased by 8% in the third quarter of 2006 as compared to the same period in 2005. Excluding all PLAVIX^® sales, worldwide sales of the other growth drivers* increased by 26% as compared to the same period in 2005.

U.S. pharmaceutical sales decreased 22% to $1.6 billion in the third quarter of 2006 compared to the same period in 2005, primarily due to the at-risk launch of generic clopidogrel bisulfate in August 2006 and loss of exclusivity of PRAVACHOL^® offset by continued growth of ERBITUX^®, ABILIFY^®, the SUSTIVA^® franchise, REYATAZ^® and AVAPRO^®/AVALIDE^® and sales of new products ORENCIA^®, BARACLUDE^® and SPRYCEL^®. In aggregate, estimated U.S. wholesaler inventory levels of the company’s key pharmaceutical products sold by the U.S. Pharmaceutical business at the end of the third quarter increased to approximately three weeks as compared to slightly over two weeks at the end of the second quarter, primarily due to the lower demand for PLAVIX^® resulting from the impact of the at-risk launch of generic clopidogrel bisulfate.

International pharmaceutical sales decreased 9%, including a 2% favorable foreign exchange impact, to $1.5 billion for the third quarter of 2006 compared to the same period in 2005. The decrease

7

was mainly due to a decline in PRAVACHOL^® and TAXOL^® resulting from increased generic competition in Europe, partially offset by increased sales of newer products including REYATAZ^®, ABILIFY^® and BARACLUDE^®. The company’s reported international sales do not include copromotion sales reported by its alliance partner, sanofi-aventis, for PLAVIX^® and AVAPRO^®/AVALIDE^®, which continued to show growth in the third quarter of 2006.

Product Sales

• Sales of PLAVIX^®, a platelet aggregation inhibitor that is part of the company’s alliance with sanofi-aventis, decreased 36%, including a 1% favorable foreign exchange impact, to $630 million in the third quarter of 2006 from $980 million in the same period in 2005. Sales of PLAVIX^® decreased 43% in the U.S. in the third quarter of 2006 to $474 million from $833 million in the same period in 2005. For further information on U.S. PLAVIX^® sales, see discussions under “PLAVIX^®” above and “PLAVIX^® LITIGATION” below.

• Sales of AVAPRO^®/AVALIDE^®, an angiotensin II receptor blocker for the treatment of hypertension that is also part of the sanofi-aventis alliance, increased 10%, including a 2% favorable foreign exchange impact, to $277 million in the third quarter of 2006 from $251 million in the same period in 2005. U.S. sales increased 8% to $159 million in the third quarter of 2006 from $147 million in the same period in 2005, primarily due to higher average net selling prices and higher demand. Estimated total U.S. prescription demand increased approximately 3% compared to 2005. International sales increased 13%, including a 4% favorable foreign exchange impact, to $118 million compared to $104 million in the same period in 2005.

• Total revenue for ABILIFY^®, an antipsychotic agent for the treatment of schizophrenia, acute bipolar mania and bipolar disorder, increased 20%, including a 1% favorable foreign exchange impact, to $313 million in the third quarter of 2006 from $260 million in the same period in 2005. U.S. sales increased 21% to $260 million in the third quarter 2006 from $214 million in the same period in 2005, primarily due to higher demand. Estimated total U.S. prescription demand increased approximately 18% compared to the same period last year. Total revenue for ABILIFY^® primarily consists of alliance revenue representing the company’s 65% share of net sales in countries where it copromotes with Otsuka Pharmaceutical Co., Ltd.

8

• Sales of REYATAZ^®, a protease inhibitor for the treatment of HIV, increased 32%, including a 2% favorable foreign exchange impact, to $233 million in the third quarter of 2006 from $176 million in the same period in 2005, primarily due to increased demand in the U.S., Europe and Latin America. Estimated total U.S. prescription demand increased approximately 15% compared to 2005. International sales increased 46%, including a 4% favorable foreign exchange impact, to $104 million in the third quarter of 2006 from $71 million in the same period in 2005.

• Sales of ERBITUX^®, which is sold by the company almost exclusively in the U.S., increased 64% to $175 million in the third quarter of 2006 from $107 million in the same period in 2005, driven by increased demand for usage in the treatment of both head and neck cancer and colorectal cancer. ERBITUX^® is marketed by the company under a distribution and copromotion agreement with ImClone Systems Incorporated.

• Sales for ORENCIA^®, BARACLUDE^® and SPRYCEL^™ were $34 million, $22 million and $11 million, respectively, in the third quarter of 2006. These recently launched products continued to perform on plan and have been gaining market share. As noted above, the company recorded an impairment charge on a milestone payment made earlier in 2006 resulting from the lower than expected sales of EMSAM^®, which were $3 million for the third quarter of 2006.

• Total revenue for the SUSTIVA^® franchise, a non-nucleoside reverse transcriptase inhibitor for the treatment of HIV, increased 18%, including a 2% favorable foreign exchange impact, to $201 million in the third quarter of 2006 from $170 million in the same period in 2005. Estimated total U.S. prescription demand for the SUSTIVA^® franchise increased approximately 12% compared to 2005. Total revenue for the SUSTIVA^® franchise include sales of SUSTIVA^® as well as revenue from bulk efavirenz included in the combination therapy, ATRIPLA^TM, which is sold through a joint venture with Gilead Sciences, Inc.

• Sales of PRAVACHOL^®, an HMG Co-A reductase inhibitor, decreased 64%, including a 1% favorable foreign exchange impact, to $192 million in the third quarter of 2006 from $527 million in the same period in 2005, due to market exclusivity expiration in the U.S. in April 2006 resulting in generic competition for most strengths and generic competition in key European markets, including France, in July 2006.

9

• Sales of TAXOL^®, an anti-cancer agent sold almost exclusively in non-U.S. markets, decreased 22%, including a 1% unfavorable foreign exchange impact, to $137 million in the third quarter of 2006 from $175 million in the same period in 2005, primarily due to increased generic competition in Europe and generic entry in Japan during the third quarter.

HEALTH CARE GROUP

The combined third quarter 2006 revenues from the Health Care Group increased 1% to $1.0 billion compared to the same period in 2005. Excluding a 5% unfavorable impact from the divestiture of the U.S. and Canadian Consumer Medicines business in the third quarter of 2005, Health Care Group sales increased 6% in the third quarter of 2006.

Nutritionals

Worldwide Nutritional sales increased 6%, including a 1% favorable foreign exchange impact, to $582 million in the third quarter of 2006 from $547 million in the same period in 2005. U.S. Nutritional sales were relatively flat at $267 million in the third quarter of 2006 in part due to temporary supply constraints, which were remedied during the quarter. International Nutritional sales increased 12% to $315 million in the third quarter of 2006, including a 3% favorable foreign exchange impact, primarily due to increased sales of ENFAMIL^® and ENFAGROW^®.

Other Health Care

• Worldwide ConvaTec sales increased 6%, including a 2% favorable foreign exchange impact, to $265 million in the third quarter of 2006 from $250 million in the same period in 2005. Sales of wound therapeutic products increased 9%, including a 3% favorable foreign exchange impact, to $113 million in the third quarter of 2006 from $104 million in the same period in 2005, primarily due to continued growth of the AQUACEL^® franchise.

10

• Worldwide Medical Imaging sales increased 2% to $153 million in the third quarter of 2006 from $150 million in the same period in 2005. This increase was primarily due to an increase in TechneLite^® technetium Tc99m Generator sales, resulting from the residual impact following a competitor’s withdrawal from the market and an increase in DEFINITY^® sales during a competitor’s continued withdrawal from the market, partially offset by a decline in CARDIOLITE^® sales.

2006 GUIDANCE

Bristol-Myers Squibb raises its 2006 full-year earnings guidance for fully diluted earnings per share from continuing operations on a GAAP basis to between $0.97 and $1.02, from no less than $0.95 as previously provided following the at-risk launch of generic clopidogrel bisulfate.

The company also raises its 2006 fully-diluted earnings per share guidance to between $1.02 and $1.07 from no less than $0.95 on a non-GAAP basis, which excludes specified items as discussed under “Use of Non-GAAP Financial Information.” Details reconciling adjusted non-GAAP amounts with the amounts reflecting specified items are provided in supplemental materials available on the company’s website.

The GAAP guidance provided above does not include other specified items that may occur and impact fourth quarter results. These specified items include charges and recoveries relating to significant legal proceedings, debt retirement costs and other charges related to new transactions, milestone payments, copromotion or alliance charges and payments for in-process research and development related to new external development transactions, gains or losses from asset disposals and restructuring activities.

The company and its subsidiaries are the subject of a number of significant pending lawsuits, claims, proceedings and investigations in addition to the pending PLAVIX^® litigation described below. It is not possible at this time reasonably to assess the final outcome of these investigations or litigations. Management continues to believe, also as previously disclosed, that the aggregate impact, beyond current reserves, of the pending PLAVIX^® patent litigation, these other litigations and investigations 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 GAAP and non-GAAP guidance for 2006 described above does not

11

reflect the potential impact of either the pending PLAVIX^® patent litigation as described below or any other litigation or investigation or other legal matters on the company’s results of operations for the fourth quarter of 2006.

PLAVIX^® LITIGATION

On August 31, 2006, the U.S. District Court for the Southern District of New York (the Court) granted the motion by the company and its product partner, sanofi-aventis, for a preliminary injunction to halt further sales of Apotex’s generic clopidogrel bisulfate product. The Court did not order Apotex to recall products sold or shipped. Apotex has appealed the Court’s preliminary injunction order. A hearing on that appeal is scheduled for October 31, 2006. As previously disclosed, the composition of matter patent for PLAVIX^®, which expires in 2011, is subject to litigation in the U.S. with Apotex. The trial in the underlying patent litigation has been set for January 22, 2007. If Apotex were to prevail in its appeal of the preliminary injunction order or at the trial in the underlying patent litigation, the company would expect to face renewed generic competition for PLAVIX^® promptly thereafter. There are other pending PLAVIX^® patent litigations in the United States and in other less significant markets for the product. The company continues to believe that the PLAVIX^® patents are valid and infringed, and with sanofi-aventis, is vigorously pursuing these cases.

It is not possible at this time reasonably to assess the ultimate outcome of Apotex’s appeal of the preliminary injunction, the underlying patent litigation with Apotex or of the other PLAVIX^® patent litigations, or the timing of any renewed generic competition for PLAVIX^® from Apotex or additional generic competition for PLAVIX^® from other generic pharmaceutical companies. Loss of market exclusivity of PLAVIX^® and/or the development of sustained generic competition would be material to the company’s sales of PLAVIX^®, results of operations and cash flows, and could be material to the company’s financial condition and liquidity. PLAVIX^® is the company’s largest product by net sales, and U.S. net sales for PLAVIX^® in 2005 were $3.2 billion.

12

As previously disclosed, the Antitrust Division of the United States Department of Justice is conducting a criminal investigation regarding the proposed settlement of the pending PLAVIX^® patent litigation with Apotex. The company is cooperating fully with the investigation. It is not possible at this time reasonably to assess the outcome of the investigation or its impact on the company. It is also not possible at this time reasonably to assess the impact of the investigation, if any, on the company’s compliance with the Deferred Prosecution Agreement (DPA) with the United States Attorney’s Office for the District of New Jersey (USAO). Also as previously disclosed, the USAO initiated an investigation that is being conducted by the Monitor and the USAO into corporate governance issues relating to the company’s negotiations of the proposed settlement with Apotex. This investigation has been expanded to include a review of whether there was any violation of Federal securities laws in connection with the proposed settlement with Apotex under the terms of the previously disclosed Consent Order the company entered into with the U.S. Securities and Exchange Commission in August 2004 (SEC Consent). It is not possible at this time reasonably to assess the outcome of the investigation or its impact on the company.

For additional discussion of legal matters, including the PLAVIX^® patent litigation, the Antitrust Division investigation related to the proposed settlement with Apotex and the terms of the DPA and SEC Consent, see “Item 1. Financial Statements Note 17. Legal Proceedings and Contingencies,” and “Management’s Discussion and Analysis – SEC Consent Order and Deferred Prosecution Agreement” in the company’s Form 10-Q Quarterly Report for the period ending June 30, 2006.

Use of Non-GAAP Financial Information

This press release contains non-GAAP earnings and 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 businesses and product lines; from sale or write-down of equity investments and from discontinuations of operations; restructuring items that meet the requirements of SFAS 112 for severance and SFAS 146 for other exit costs; accelerated depreciation charges under SFAS 144 related to restructuring items described above; asset impairments; charges and recoveries relating to significant legal proceedings; upfront and milestone payments for in-licensing of products that have not achieved regulatory approval that are immediately expensed; 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; income from upfront and milestone payments that is immediately recognized for out-licensing of products, including deferred income recognized upon termination; costs of early debt retirement; and significant tax events, including the repatriation of special dividends pursuant to the American Jobs Creation Act of 2004. 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,

13

non-GAAP earnings per share information is an indication of the company’s baseline performance before items that are considered by the company not to be 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 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 the unpredictability of the ultimate outcome of any litigation matter, including whether the appellate court in the PLAVIX^® litigation with Apotex will, on appeal, rule in the company’s favor and maintain interim relief pending trial, and whether the company will prevail at trial in the underlying patent litigation, as well as any risks associated with the criminal investigation conducted by the Department of Justice in connection with the proposed settlement with Apotex, and the launch of a generic clopidogrel bisulfate product by Apotex, including the amount of generic product distributed and the rate at which it will be utilized by prescription demand, and the time-period in which it will impact the company’s results. These factors also include the ability to realize projected cost savings 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.

14

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 October 26, 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 913-981-4901. Materials related to the call will be available at the same website prior to the call.

For more information, contact: Tony Plohoros, 212-546-4379, or Jeff Macdonald, 212-546-4824, Communications, or John Elicker, 212-546-3775, or Blaine Davis, 212-546-4631, Investor Relations.

# # #

ABILIFY^® is a trademark of Otsuka Pharmaceutical Company, Ltd.

AVAPRO^®, AVALIDE^® and PLAVIX^® are trademarks of sanofi-aventis

ERBITUX^® is a trademark of ImClone Systems Incorporated

EMSAM^® is a trademark of Somerset Pharmaceuticals, Inc.

GLEEVEC^® is a trademark of Novartis, Inc.

TRUVADA^® is a trademark of Gilead Sciences, Inc.

ATRIPLA^™ is a trademark of both Bristol-Myers Squibb Co. and Gilead Sciences, Inc.

* Growth drivers include PLAVIX^®, AVAPRO^®/AVALIDE^®, ABILIFY^®, REYATAZ^® and ERBITUX^®

15

BRISTOL-MYERS SQUIBB COMPANY

NET SALES BY OPERATING SEGMENTS

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2006 AND 2005

(Unaudited, dollars in millions)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2006		2005		2006		2005
Pharmaceuticals	$	3,154	$	3,778	$	10,713	$	11,242
Nutritionals		582		547		1,729		1,621
Other Health Care		418		442		1,259		1,325
Health Care Group		1,000		989		2,988		2,946
Net Sales	$	4,154	$	4,767	$	13,701	$	14,188

16

BRISTOL-MYERS SQUIBB COMPANY

SELECTED PRODUCTS

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2006 AND 2005

(Unaudited, dollars in millions)

The following table sets forth worldwide and U.S. reported net sales for selected products for the three and nine months ended September 30, 2006 compared to the three and nine months ended September 30, 2005. In addition, the table includes, 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
	2006		2005		% Change		2006		2005		% Change		% Change in U.S. Total Prescriptions vs. 2005
Three Months Ended September 30,
Pharmaceuticals
Cardiovascular
Plavix	$	630	$	980	(36	)%	$	474	$	833	(43	)%	(32	)%
Pravachol		192		527	(64	)%		73		297	(75	)%	(82	)%
Avapro/Avalide		277		251	10	%		159		147	8	%	3	%
Coumadin		53		57	(7	)%		45		49	(8	)%	(19	)%
Monopril		34		49	(31	)%		—		1	(100	)%	(54	)%
Virology
Reyataz		233		176	32	%		129		105	23	%	15	%
Sustiva franchise (total revenue)		201		170	18	%		128		101	27	%	12	%
Zerit		38		51	(25	)%		19		24	(21	)%	(30	)%
Baraclude		22		2	*	*		14		2	*	*	*	*
Other Infectious Diseases
Cefzil		18		48	(63	)%		1		27	(96	)%	(96	)%
Oncology
Erbitux		175		107	64	%		173		106	63	%	N/A
Taxol		137		175	(22	)%		2		4	(50	)%	N/A
Sprycel		11		—	—			11		—	—		N/A
Affective (Psychiatric) Disorders
Abilify (total revenue)		313		260	20	%		260		214	21	%	18	%
EMSAM		3		—	—			3		—	—		N/A
Immunoscience
Orencia		34		—	—			34		—	—		N/A
Other Pharmaceuticals
Efferalgan		62		66	(6	)%		—		—	—		N/A
Nutritionals
Enfamil		246		230	7	%		169		168	1	%	N/A
Enfagrow		69		54	28	%		—		—	—		N/A
Other Health Care
Ostomy		139		139	—			39		43	(9	)%	N/A
Wound Therapeutics		113		104	9	%		36		34	6	%	N/A
Cardiolite		97		106	(8	)%		86		95	(9	)%	N/A

17

	Worldwide Net Sales						U.S. Net Sales
	2006		2005		% Change		2006			2005		% Change		% Change in U.S. Total Prescriptions vs. 2005
Nine Months Ended September 30,
Pharmaceuticals
Cardiovascular
Plavix	$	2,761	$	2,762	—		$	2,312		$	2,329	(1	)%	(2	)%
Pravachol		1,051		1,672	(37	)%		503			908	(45	)%	(51	)%
Avapro/Avalide		790		705	12	%		465			406	15	%	4	%
Coumadin		163		156	4	%		138			133	4	%	(22	)%
Monopril		131		162	(19	)%		3			6	(50	)%	(54	)%
Virology
Reyataz		676		508	33	%		370			295	25	%	17	%
Sustiva franchise (total revenue)		569		510	12	%		351			301	17	%	8	%
Zerit		119		169	(30	)%		56			76	(26	)%	(31	)%
Baraclude		47		7	*	*		32			7	*	*	*	*
Other Infectious Diseases
Cefzil		64		184	(65	)%		(5	)		107	(105	)%	(90	)%
Oncology
Erbitux		485		292	66	%		481			290	66	%	N/A
Taxol		433		566	(23	)%		10			12	(17	)%	N/A
Sprycel		11		—	—			11			—	—		N/A
Affective (Psychiatric) Disorders
Abilify (total revenue)		920		688	34	%		758			575	32	%	22	%
EMSAM		15		—	—			15			—	—		N/A
Immunoscience
Orencia		57		—	—			57			—	—		N/A
Other Pharmaceuticals
Efferalgan		192		209	(8	)%		—			—	—		N/A
Nutritionals
Enfamil		736		715	3	%		498			501	(1	)%	N/A
Enfagrow		195		153	27	%		—			—	—		N/A
Other Health Care
Ostomy		403		405	—			114			115	(1	)%	N/A
Wound Therapeutics		318		304	5	%		100			93	8	%	N/A
Cardiolite		305		316	(3	)%		268			282	(5	)%	N/A

** Change is in excess of 200%

18

BRISTOL-MYERS SQUIBB COMPANY

CONSOLIDATED STATEMENTS OF EARNINGS

FOR THE THREE AND NIINE MONTHS ENDED SEPTEMBER 30, 2006 AND 2005

(Unaudited, amounts in millions except per share data)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2006			2005			2006			2005
Net Sales	$	4,154		$	4,767		$	13,701		$	14,188
Cost of products sold		1,465			1,483			4,509			4,333
Marketing, selling and administrative		1,189			1,286			3,608			3,737
Advertising and product promotion		286			349			933			1,032
Research and development		756			669			2,246			1,971
Provision for restructuring, net		2			(5	)		6			—
Litigation (income)/charges, net		(9	)		(26	)		(44	)		72
Gain on sale of businesses		—			(569	)		(200	)		(569	)
Equity in net income of affiliates		(118	)		(84	)		(336	)		(240	)
Other (income)/expense, net (a)		(34	)		38			59			168
		3,537			3,141			10,781			10,504
Earnings from Continuing Operations Before Minority Interest and Income Taxes		617			1,626			2,920			3,684
Provision for income taxes		193			507			777			754
Minority interest, net of taxes		86			155			424			437
Earnings from Continuing Operations		338			964			1,719			2,493
Discontinued Operations
Loss, net of taxes		—			—			—			(5	)
Gain on Disposal, net of taxes		—			—			—			13
		—			—			—			8
Net Earnings	$	338		$	964		$	1,719		$	2,501
Earnings per Common Share:
Basic:
Earnings from Continuing Operations	$	0.17		$	0.49		$	0.88		$	1.28
Discontinued Operations
Loss, net of taxes		—			—			—			—
Gain on Disposal, net of taxes		—			—			—			—
Net Earnings per Common Share	$	0.17		$	0.49		$	0.88		$	1.28
Diluted:
Earnings from Continuing Operations	$	0.17		$	0.49		$	0.88		$	1.27
Discontinued Operations
Loss, net of taxes		—			—			—			—
Gain on Disposal, net of taxes		—			—			—			—
Net Earnings per Common Share	$	0.17		$	0.49		$	0.88		$	1.27
Average Common Shares Outstanding:
Basic		1,961			1,953			1,959			1,951
Diluted		1,992			1,984			1,991			1,983
___________
(a)    Other (income)/expense, net
Interest expense	$	130		$	79		$	370		$	249
Interest income		(74	)		(28	)		(201	)		(96	)
Foreign exchange transaction (gains)/losses		(11	)		—			—			47
Other income, net		(79	)		(13	)		(110	)		(32	)
	$	(34	)	$	38		$	59		$	168

19

APPENDIX 1

BRISTOL-MYERS SQUIBB COMPANY

SPECIFIED ITEMS

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2006 AND 2005

(Unaudited, dollars in millions)

Three months ended September 30, 2006

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

Three months ended September 30, 2005

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

20

BRISTOL-MYERS SQUIBB COMPANY

SPECIFIED ITEMS

FOR THE NINE MONTHS ENDED SEPTEMBER, 2006 AND 2005

(Unaudited, dollars in millions)

Nine months ended September 30, 2006

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

Nine months ended September 30, 2005

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

21

EX-99.2

Exhibit 99.2

BRISTOL-MYERS SQUIBB COMPANY

NET SALES FROM CONTINUING OPERATIONS

QUARTERLY SALES TREND ANALYSIS

($ in millions)

	2005																					2006																	% Change
	1st Qtr			2nd Qtr			6 Months			3rd Qtr			9 Months			4th Qtr			Year			1st Qtr			2nd Qtr			6 Months			3rd Qtr			9 Months			4th Qtr	Year	Qtr vs. Qtr		YTD vs. YTD
Net Sales
Pharmaceuticals	$	3,578		$	3,886		$	7,464		$	3,778		$	11,242		$	4,012		$	15,254		$	3,700		$	3,859		$	7,559		$	3,154		$	10,713				-17	%	-5	%
US Pharmaceuticals		1,767			2,084			3,851			2,069			5,920			2,220			8,140			2,064			2,197			4,261			1,609			5,870				-22	%	-1	%
Primary Care		1,258			1,539			2,797			1,486			4,283			1,653			5,936			1,409			1,441			2,850			819			3,669				-45	%	-14	%
Oncology/Virology		348			345			693			370			1,063			391			1,454			419			458			877			494			1,371				34	%	29	%
Neuroscience		161			200			361			213			574			176			750			231			280			511			262			773				23	%	35	%
Immunoscience		—			—			—			—			—			—			—			5			18			23			34			57				—		—
Latin America/Canada		258			306			564			285			849			325			1,174			288			303			591			300			891				5	%	5	%
Europe and Middle East Medicines		1,201			1,112			2,313			1,030			3,343			1,053			4,396			1,024			1,000			2,024			886			2,910				-14	%	-13	%
Asia/Pacific Medicines		299			329			628			342			970			354			1,324			279			320			599			318			917				-7	%	-5	%
Nutritionals		526			548			1,074			547			1,621			584			2,205			565			582			1,147			582			1,729				6	%	7	%
Other Health Care		428			455			883			442			1,325			423			1,748			411			430			841			418			1,259				-5	%	-5	%
ConvaTec		228			247			475			250			725			267			992			230			262			492			265			757				6	%	4	%
Medical Imaging		145			151			296			150			446			156			602			181			168			349			153			502				2	%	13	%
Consumer Medicines		55			57			112			42			154			—			154			—			—			—			—			—				-100	%	-100	%
Total Company	$	4,532		$	4,889		$	9,421		$	4,767		$	14,188		$	5,019		$	19,207		$	4,676		$	4,871		$	9,547		$	4,154		$	13,701				-13	%	-3	%
	2005																					2006																	Basis Point Change
	1st Qtr			2nd Qtr			6 Months			3rd Qtr			9 Months			4th Qtr			Year			1st Qtr			2nd Qtr			6 Months			3rd Qtr			9 Months			4th Qtr	Year	Qtr vs. Qtr		YTD vs. YTD
% of Total Sales
Pharmaceuticals		79.0	%		79.5	%		79.2	%		79.3	%		79.2	%		79.9	%		79.4	%		79.1	%		79.2	%		79.2	%		75.9	%		78.2	%			(340	)	(100	)
US Pharmaceuticals		39.0	%		42.6	%		40.9	%		43.4	%		41.7	%		44.2	%		42.4	%		44.1	%		45.1	%		44.6	%		38.7	%		42.8	%			(470	)	110
Primary Care		27.8	%		31.4	%		29.7	%		31.2	%		30.2	%		32.9	%		30.9	%		30.1	%		29.6	%		29.9	%		19.7	%		26.8	%			(1150	)	(340	)
Oncology/Virology		7.7	%		7.1	%		7.4	%		7.8	%		7.5	%		7.8	%		7.6	%		9.0	%		9.4	%		9.2	%		11.9	%		10.0	%			410		250
Neuroscience		3.5	%		4.1	%		3.8	%		4.4	%		4.0	%		3.5	%		3.9	%		4.9	%		5.7	%		5.3	%		6.3	%		5.6	%			190		160
Immunoscience		—			—			—			—			—			—			—			0.1	%		0.4	%		0.2	%		0.8	%		0.4	%			80		40
Latin America/Canada		5.7	%		6.3	%		6.0	%		6.0	%		6.0	%		6.5	%		6.1	%		6.2	%		6.2	%		6.2	%		7.2	%		6.5	%			120		50
Europe and Middle East Medicines		26.5	%		22.7	%		24.6	%		21.6	%		23.6	%		21.0	%		22.9	%		21.9	%		20.5	%		21.2	%		21.3	%		21.2	%			(30	)	(240	)
Asia/Pacific Medicines		6.6	%		6.7	%		6.7	%		7.2	%		6.8	%		7.1	%		6.9	%		6.0	%		6.6	%		6.3	%		7.7	%		6.7	%			50		(10	)
Nutritionals		11.6	%		11.2	%		11.4	%		11.5	%		11.4	%		11.7	%		11.5	%		12.1	%		12.0	%		12.0	%		14.0	%		12.6	%			250		120
Other Health Care		9.4	%		9.3	%		9.4	%		9.2	%		9.4	%		8.4	%		9.1	%		8.8	%		8.8	%		8.8	%		10.1	%		9.2	%			90		(20	)
ConvaTec		5.0	%		5.0	%		5.1	%		5.2	%		5.1	%		5.3	%		5.2	%		4.9	%		5.4	%		5.2	%		6.4	%		5.5	%			120		40
Medical Imaging		3.2	%		3.1	%		3.1	%		3.1	%		3.2	%		3.1	%		3.1	%		3.9	%		3.4	%		3.6	%		3.7	%		3.7	%			60		50
Consumer Medicines		1.2	%		1.2	%		1.2	%		0.9	%		1.1	%		—			0.8	%		—			—			—			—			—				(90	)	(110	)
Total Company		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

BRISTOL-MYERS SQUIBB COMPANY

SEGMENT SALES AND COMPOSITION OF CHANGE IN SALES FOR CONTINUING OPERATIONS

FOR THE PERIOD ENDED SEPTEMBER 30, 2006

($ in millions)

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

BRISTOL-MYERS SQUIBB COMPANY

CONSOLIDATED STATEMENT OF EARNINGS

CONTINUING OPERATIONS

($ in millions, except per share amounts)

	2005																					2006																	% Change
	1st Qtr			2nd Qtr			6 Months			3rd Qtr			9 Months			4th Qtr			Year			1st Qtr			2nd Qtr			6 Months			3rd Qtr			9 Months			4th Qtr	Year	Qtr vs. Qtr		YTD vs. YTD
Net Sales	$	4,532		$	4,889		$	9,421		$	4,767		$	14,188		$	5,019		$	19,207		$	4,676		$	4,871		$	9,547		$	4,154		$	13,701				-13	%	-3	%
Cost of products sold		1,367			1,483			2,850			1,483			4,333			1,595			5,928			1,476			1,568			3,044			1,465			4,509				-1	%	4	%
Marketing, selling and administrative		1,183			1,268			2,451			1,286			3,737			1,369			5,106			1,238			1,181			2,419			1,189			3,608				-8	%	-3	%
Advertising and product promotion		318			365			683			349			1,032			444			1,476			295			352			647			286			933				-18	%	-10	%
Research and development		653			649			1,302			669			1,971			775			2,746			750			740			1,490			756			2,246				13	%	14	%
Provision for restructuring and other items, net		3			2			5			(5	)		—			32			32			1			3			4			2			6				140	%	—
Litigation (income)/charges, net		124			(26	)		98			(26	)		72			197			269			(21	)		(14	)		(35	)		(9	)		(44	)			65	%	-161	%
Gain on sale of business and product asset		—			—			—			(569	)		(569	)		—			(569	)		(200	)		—			(200	)		—			(200	)			100	%	65	%
Equity in net income of affiliates		(69	)		(87	)		(156	)		(84	)		(240	)		(94	)		(334	)		(93	)		(125	)		(218	)		(118	)		(336	)			-40	%	-40	%
Other (income)/expense, net		25			105			130			38			168			(131	)		37			37			56			93			(34	)		59				-189	%	-65	%
Total expenses		3,604			3,759			7,363			3,141			10,504			4,187			14,691			3,483			3,761			7,244			3,537			10,781				13	%	3	%
Earnings from Continuing Operations
Before Minority Interest and Income Taxes		928			1,130			2,058			1,626			3,684			832			4,516			1,193			1,110			2,303			617			2,920				-62	%	-21	%
Provision for income taxes		268			(21	)		247			507			754			178			932			328			256			584			193			777				-62	%	3	%
Minority interest, net of taxes		122			160			282			155			437			155			592			151			187			338			86			424				-45	%	-3	%
Earnings from Continuing Operations	$	538		$	991		$	1,529		$	964		$	2,493		$	499		$	2,992		$	714		$	667		$	1,381		$	338		$	1,719				-65	%	-31	%
Interest expense on conversion of convertible debt bonds, net of tax		4			5			9			6			15			7			22			8			8			16			9			25
Earnings from continuing operations used for diluted earnings per common share calculation	$	542		$	996		$	1,538		$	970		$	2,508		$	506		$	3,014		$	722		$	675		$	1,397		$	347		$	1,744
Diluted Earnings per Common Share Continuing Operations**	$	0.27		$	0.50		$	0.78		$	0.49		$	1.27		$	0.26		$	1.52		$	0.36		$	0.34		$	0.70		$	0.17		$	0.88				-65	%	-31	%
Average Common Shares Outstanding—Diluted		1,981			1,984			1,982			1,984			1,983			1,983			1,983			1,988			1,994			1,992			1,992			1,991				0	%	0	%
Dividends declared per common share	$	0.28		$	0.28		$	0.56		$	0.28		$	0.84		$	0.28		$	1.12		$	0.28		$	0.28		$	0.56		$	0.28		$	0.84				—		—
	2005																					2006																	Basis Point Change
	1st Qtr			2nd Qtr			6 Months			3rd Qtr			9 Months			4th Qtr			Year			1st Qtr			2nd Qtr			6 Months			3rd Qtr			9 Months			4th Qtr	Year	Qtr vs. Qtr		YTD vs. YTD
% of Net Sales
Gross Margin		69.8	%		69.7	%		69.7	%		68.9	%		69.5	%		68.2	%		69.1	%		68.4	%		67.8	%		68.1	%		64.7	%		67.1	%			(420	)	(240	)
Cost of products sold		30.2	%		30.3	%		30.3	%		31.1	%		30.5	%		31.8	%		30.9	%		31.6	%		32.2	%		31.9	%		35.3	%		32.9	%			420		240
Marketing, selling and administrative		26.1	%		25.9	%		26.0	%		27.0	%		26.3	%		27.3	%		26.6	%		26.5	%		24.2	%		25.3	%		28.6	%		26.3	%			160		0
Advertising and product promotion		7.0	%		7.5	%		7.2	%		7.3	%		7.3	%		8.8	%		7.7	%		6.3	%		7.2	%		6.8	%		6.9	%		6.8	%			(40	)	(50	)
Research and development		14.4	%		13.3	%		13.8	%		14.0	%		13.9	%		15.4	%		14.3	%		16.0	%		15.2	%		15.6	%		18.2	%		16.4	%			420		250
Total expenses		79.5	%		76.9	%		78.2	%		65.9	%		74.0	%		83.4	%		76.5	%		74.5	%		77.2	%		75.9	%		85.1	%		78.7	%			1,920		470
Earnings from Continuing Operations
Before Minority Interest and Provision for Income Taxes		20.5	%		23.1	%		21.8	%		34.1	%		26.0	%		16.6	%		23.5	%		25.5	%		22.8	%		24.1	%		14.9	%		21.3	%			(1,920	)	(470	)
Earnings from Continuing Operations		11.9	%		20.3	%		16.2	%		20.2	%		17.6	%		9.9	%		15.6	%		15.3	%		13.7	%		14.5	%		8.1	%		12.5	%			(1,210	)	(510	)
Other Ratios
Effective Tax Rate		28.9	%		-1.9	%		12.0	%		31.2	%		20.5	%		21.4	%		20.6	%		27.5	%		23.1	%		25.4	%		31.3	%		26.6	%
	2005																					2006																	% Change
	1st Qtr			2nd Qtr			6 Months			3rd Qtr			9 Months			4th Qtr			Year			1st Qtr			2nd Qtr			6 Months			3rd Qtr			9 Months			4th Qtr	Year	Qtr vs. Qtr		YTD vs. YTD
Other (Income)/Expense, net
Interest expense	$	97		$	73		$	170		$	79		$	249		$	100		$	349		$	116		$	124		$	240		$	130		$	370				65	%	49	%
Interest income		(45	)		(23	)		(68	)		(28	)		(96	)		(52	)		(148	)		(62	)		(65	)		(127	)		(74	)		(201	)			-164	%	-109	%
Foreign exchange transaction (gains)/losses		12			35			47			—			47			11			58			(12	)		23			11			(11	)		—				—		-100	%
Other, net		(39	)		20			(19	)		(13	)		(32	)		(190	)		(222	)		(5	)		(26	)		(31	)		(79	)		(110	)			*		*
	$	25		$	105		$	130		$	38		$	168		$	(131	)	$	37		$	37		$	56		$	93		$	(34	)	$	59				-189	%	-65	%

* in excess of +/- 200%

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

BRISTOL-MYERS SQUIBB COMPANY

WORLDWIDE NET SALES FROM CONTINUING OPERATIONS BY PRODUCT

QUARTERLY SALES TREND ANALYSIS

($ in millions)

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

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

*** In excess of +/- 200%

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

BRISTOL-MYERS SQUIBB COMPANY

DOMESTIC* NET SALES FROM CONTINUING OPERATIONS BY PRODUCT

QUARTERLY SALES TREND ANALYSIS

($ in millions)

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

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

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

*** In excess of +/- 200%

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

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

BRISTOL-MYERS SQUIBB COMPANY

INTERNATIONAL* NET SALES FROM CONTINUING OPERATIONS BY PRODUCT

QUARTERLY SALES TREND ANALYSIS

($ in millions)

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

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

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

*** In excess of +/- 200%

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

BRISTOL-MYERS SQUIBB COMPANY

WORLDWIDE NET SALES FROM CONTINUING OPERATIONS AND DOMESTIC PHARMACEUTICAL NET SALES

EXCLUDING ESTIMATED IMPACT OF LAUNCH OF GENERIC CLOPIDOGREL BISULFATE

($ in millions)

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

BRISTOL-MYERS SQUIBB COMPANY

EARNINGS FROM CONTINUING OPERATIONS BEFORE MINORITY INTEREST AND INCOME TAXES

EXCLUDING SPECIFIED ITEMS

($ in millions)

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

BRISTOL-MYERS SQUIBB COMPANY

DILUTED EARNINGS PER COMMON SHARE FROM CONTINUING OPERATIONS

EXCLUDING SPECIFIED ITEMS

	2006
	Q1			Q2			Q3						TOTAL YEAR *
Diluted Earnings per Common Share from Continuing Operations	$	0.36		$	0.34		$	0.17					$	0.88
Specified items:
Gain on sale of product asset		(0.06	)		—			—						(0.06	)
Litigation matters		0.01			—			(0.01	)					—
Insurance recoveries		(0.01	)		—			—						(0.01	)
Downsizing and streamlining of worldwide operations / other		0.02			0.01			0.04						0.06
Tax item		—			—			0.02						0.02
Diluted Earnings per Common Share from Continuing Operations Excluding Specified Items	$	0.32		$	0.35		$	0.22					$	0.89
	2005
	Q1			Q2			Q3			Q4			TOTAL YEAR *
Diluted Earnings per Common Share from Continuing Operations	$	0.27		$	0.50		$	0.49		$	0.26		$	1.52
Specified items:
Gain on sale of equity investment		(0.01	)		—			—			—			(0.01	)
Litigation matters		0.05			0.10			—			0.06			0.22
Insurance recoveries		—			(0.09	)		(0.01	)		—			(0.10	)
Provision for restructuring / other		0.03			0.03			0.02			0.03			0.10
Termination of muraglitizar agreement		—			—			—			(0.04	)		(0.04	)
Gain on sale of businesses		—			—			(0.19	)		—			(0.19	)
Tax items		—			(0.07	)		—			—			(0.07	)
Diluted Earnings per Common Share from Continuing Operations Excluding Specified Items	$	0.34		$	0.47		$	0.31		$	0.31		$	1.43

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

BRISTOL-MYERS SQUIBB COMPANY

SPECIFIED ITEMS

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2006 AND 2005

($ in millions)

Three months ended September 30, 2006
	Cost of products sold		Research and development			Provision for restructuring, net			Litigation income			Other (income)/ expense, net			Total
Litigation Matters:
Insurance recovery	$	—	$	—		$	—		$	(9	)	$	—		$	(9	)
Product liability		—		—			—			—			11			11
Commercial litigation		—		—			—			—			(40	)		(40	)
		—		—			—			(9	)		(29	)		(38	)
Other:
Accelerated depreciation and asset impairment		72		—			—			—			—			72
Downsizing and streamlining of worldwide operations		—		—			2			—			—			2
Upfront and milestone payments		—		17			—			—			—			17
	$	72	$	17		$	2		$	(9	)	$	(29	)		53
Income taxes on items above																(5	)
Minority interest, net of taxes																13
Change in estimate for taxes on prior year items																39
Reduction to Net Earnings from Continuing Operations															$	100
Three months ended September 30, 2005
	Cost of products sold		Gain on sale of business			Provision for restructuring, net			Litigation income			Other expense, net			Total
Litigation Matters:
Insurance recoveries	$	—	$	—		$	—		$	(26	)	$	—		$	(26	)
Other:
Gain on sale of Consumer Medicines businesses		—		(569	)		—			—			—			(569	)
Loss on sale of fixed assets		—		—			—			—			1			1
Accelerated depreciation and asset impairment		35		—			—			—			—			35
Downsizing and streamlining of worldwide operations		—		—			(5	)		—			—			(5	)
	$	35	$	(569	)	$	(5	)	$	(26	)	$	1			(564	)
Income taxes on items above																202
Increase to Net Earnings from Continuing Operations															$	(362	)

BRISTOL-MYERS SQUIBB COMPANY

SPECIFIED ITEMS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2006 AND 2005

($ in millions)

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

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

BRISTOL-MYERS SQUIBB COMPANY

SELECT BALANCE SHEET INFORMATION

($ in millions)

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

BRISTOL-MYERS SQUIBB COMPANY

2006 DILUTED EPS FROM CONTINUING OPERATIONS

IMPACT OF PROJECTED SPECIFIED ITEMS

	Diluted EPS Impact
Downsizing and streamlining of worldwide operations	$	0.08
Licensing and milestone payments		0.02
Gain on sale of product asset		(0.06	)
Litigation matters		—
Insurance recoveries		(0.01	)
Change in estimate for taxes on prior year items		0.02
Total	$	0.05

BRISTOL-MYERS SQUIBB COMPANY

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

IN THE U.S. WHOLESALER DISTRIBUTION CHANNEL

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

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

For all products other than Erbitux, the Company determines the above months on hand estimates by dividing the estimated amount of the product in the U.S. wholesaler distribution channel by the estimated amount of out-movement of the product from the U.S. wholesaler distribution channel over a period of 31 days, all calculated as described below. Factors that may influence the Company’s estimates include generic competition, seasonality of products, wholesaler purchases in light of increases in wholesaler list prices, new product launches, new warehouse openings by wholesalers and new customer stockings by wholesalers. In addition, such estimates are calculated using third party data, which represent their own record-keeping processes and as such, may also reflect estimates.

Estimates of product in the wholesaler distribution channel and out-movement are based on weekly information received directly from third-parties, and excludes any inventory held by intermediaries such as retailers and hospitals, and excludes goods in transit to such wholesalers. The Company determines the amount of out-movement of a product over a period of 31 days by using the most recent out-movement of a product as provided by these third parties, adjusted to reflect the Company’s estimate of goods in transit to these wholesalers. The Company estimates the amount of goods in transit by using information provided by these wholesalers with respect to their open orders and the Company’s records of sales to these wholesalers with respect to such open orders.

* To help maintain the product quality of the Company’s biologic oncology product, ERBITUX*, the product was previously shipped only to end-users and not to other intermediaries (such as wholesalers) to hold for later sales. During 2004 and through May 2005, one of the Company’s wholesalers provided warehousing, packing and shipping services for ERBITUX*. Such wholesaler held ERBITUX* inventory on consignment and, under the Company’s revenue recognition policy, the Company recognized revenue when such inventory was shipped by the wholesaler to the end-user. Upon the divestiture of OTN in May 2005, the Company discontinued the consignment arrangement with the wholesaler and thereafter did not have ERBITUX* consignment inventory. Following the divestiture, the Company sold ERBITUX* to intermediaries (such as specialty oncology distributors) and shipped ERBITUX* directly to the end-users of the product who are the customers of those intermediaries. Beginning in the third quarter 2006, the Company expanded its distribution model to one of the Company’s wholesalers who then held ERBITUX* inventory at September 30, 2006. The Company recognizes revenue upon such shipment consistent with its revenue recognition policy. The above estimate of months on hand for the three months ended September 30, 2006 was calculated by dividing the inventories of ERBITUX* held by the wholesaler for its own account as reported by the wholesaler as of the end of the quarter by the Company’s net sales for the last calendar month of the quarter. The inventory levels reported by the wholesaler are a product of the wholesaler’s own record-keeping process.

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

# Less than 0.1 months on hand.

BRISTOL-MYERS SQUIBB COMPANY

ESTIMATED MONTHS ON HAND OF TOP INTERNATIONAL PHARMACEUTICAL

AND WORLDWIDE NON-PHARMACEUTICAL PRODUCTS

The following table, which was posted on the Company’s website and furnished on Form 8-K on August 31, 2006, sets forth for each of the Company’s key products sold by the reporting segments listed below, the net sales of the applicable product for each of the quarters ended June 30, 2006 and 2005 and March 31, 2006 and 2005, and the estimated number of months on hand of the applicable product in the direct customer distribution channel for the reporting segment as of the end of each of the four quarters. The estimates of months on hand for key products described below for the International Pharmaceuticals reporting segment are based on data collected for all of the Company’s significant business units outside of the United States. For the other reporting segments, estimates are based on data collected for the United States and all significant business units outside of the United States.

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

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