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, 2007

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, 2007, Bristol-Myers Squibb Company (the “Company”) issued a press release reporting its financial results for the fourth quarter and twelve months of 2006 and announcing 2007 earnings guidance. 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, 2007
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.

Dated: January 25, 2007	BRISTOL-MYERS SQUIBB COMPANY
	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, 2007
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

FOURTH QUARTER AND TWELVE MONTHS OF 2006 AND ANNOUNCES EPS GUIDANCE FOR 2007

• Posts Fourth Quarter 2006 GAAP Loss Per Share of $0.07 Impacted by Previously Announced Specified Items and Records Full Year 2006 GAAP EPS of $0.81

• Posts Fourth Quarter 2006 Non-GAAP EPS of $0.19 and Records Full Year 2006 Non-GAAP EPS of $1.09

• Announces Full Year 2007 GAAP EPS Guidance at $1.12 to $1.22

• Announces Full Year 2007 Non-GAAP Guidance at $1.20 to $1.30

(NEW YORK, January 25, 2007) – Bristol-Myers Squibb Company (NYSE:BMY) today reported financial results for the fourth quarter and twelve months ended December 31, 2006 and announced 2007 earnings guidance.

Bristol-Myers Squibb posted fourth quarter 2006 net sales from continuing operations of $4.2 billion, compared with $5.0 billion for the same period in 2005. The company reported a fourth quarter 2006 net loss from continuing operations of $134 million, or a loss of $0.07 per diluted share, under U.S. Generally Accepted Accounting Principles (GAAP), compared to net earnings of $499 million, or $0.26 per diluted share for the same period in 2005. The net loss was driven by an increase in litigation reserves and early debt retirement costs. On a non-GAAP basis excluding specified items, fourth quarter 2006 net earnings from continuing operations were $380 million, or $0.19 per diluted share, compared to $601 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 the at-risk launch of generic clopidogrel bisulfate in August 2006, which continued to have a significant adverse effect in the fourth quarter, and the loss of patent exclusivity on PRAVACHOL^® in major markets.

“The company remains focused on executing our strategy and building shareholder value, with an expected return to sales and earnings growth beginning this year,” said Jim Cornelius, chief executive officer, Bristol-Myers Squibb. “Our ongoing commitment to increasing investment in R&D has yielded a robust late-stage pipeline, demand for our major products continues to increase at a double-digit rate, and PLAVIX^® market share is increasing as remaining generic inventory depletes.”

For the twelve months ended December 31, 2006, net sales from continuing operations decreased 7% to $17.9 billion compared with net sales of $19.2 billion for the same period in 2005. Net earnings from continuing operations for the full year 2006 on a GAAP basis were $1.6 billion, or $0.81 per diluted share, compared to $3.0 billion, or $1.52 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 for the full year 2006 of $2.1 billion, or $1.09 per diluted share, compared to $2.8 billion, or $1.43 per diluted share for the same period last year.

NEW PRODUCT AND PIPELINE DEVELOPMENTS

On January 11, Bristol-Myers Squibb and AstraZeneca PLC (AstraZeneca) announced a collaboration to develop and commercialize two investigational compounds, saxagliptin and dapagliflozin, being studied for the treatment of Type 2 diabetes. Both compounds were discovered by Bristol-Myers Squibb. The collaboration on these compounds is worldwide, except for Japan. Terms of the agreements include an upfront payment of $100 million by AstraZeneca to Bristol-Myers Squibb, as well as additional payments of up to $650 million based on development and regulatory milestones for the two compounds and potential sales milestones up to $300 million per product. Additionally, the companies have agreed upon initial development plans for the two compounds, with AstraZeneca funding the majority of development costs from 2007 through 2009. Separately, the company also announced a collaboration with Otsuka Pharmaceutical Co., Ltd. to develop saxagliptin in Japan.

On January 10, Bristol-Myers Squibb and ImClone Systems Incorporated announced that data from a pivotal Phase III study of ERBITUX^® plus FOLFIRI (an irinotecan-based chemotherapy) met the primary endpoint of increasing median duration of progression-free survival over FOLFIRI alone in patients with previously untreated metastatic colorectal cancer (mCRC).

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In November 2006, the U.S. Food and Drug Administration (FDA) granted Fast Track designation for ipilimumab used as combination with chemotherapy (dacarbazine) in previously untreated metastatic melanoma patients. The FDA also granted Fast Track designation for ipilimumab used as a monotherapy in previously treated metastatic melanoma patients. The company is working toward a potential submission date of late 2007.

In November 2006, the company received European Medicine Evaluation Agency (EMEA) approval of SPRYCEL^™ (dasatinib) for the treatment of adults with chronic, accelerated, or myeloid or lymphoid blast phase chronic myeloid leukemia (CML) or Philadelphia chromosome-positive acute lymphoblastic leukemia (Ph+ALL) with resistance or intolerance to prior therapy, including GLEEVEC^® (imatinib mesylate). SPRYCEL^™ was launched in the U.S. and certain European markets during 2006.

FOURTH QUARTER RESULTS

• Fourth quarter 2006 net sales from continuing operations decreased 16% to $4.2 billion compared to the same period in 2005. U.S. net sales decreased 26% to $2.1 billion for the quarter compared to 2005, while international net sales decreased 3%, including a 4% favorable foreign exchange impact, to $2.1 billion.

• Cost of products sold, as a percentage of net sales, increased to 34.3% in the fourth quarter of 2006 compared to 31.8% in 2005 in the same period. This increase was primarily due to the unfavorable impact of pharmaceutical net sales mix, including lower sales of PLAVIX^® as well as a reclassification of certain costs from marketing, selling and administrative expenses to cost of products sold.

• Marketing, selling and administrative expenses decreased by 4% to $1.3 billion in the fourth 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 as noted above; 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 expenses for PRAVACHOL^®.

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• Advertising and product promotion spending decreased by 6% to $418 million in the fourth quarter of 2006 from $444 million in the same period in 2005, primarily driven by lower spending across various brands, partially offset by increased investments in new products.

• Research and development expenses increased by 6% to $821 million in the fourth quarter of 2006 from $775 million in the same period in 2005, principally reflecting continued investments in late-stage compounds and higher licensing milestone payments.

• In the fourth quarter of 2006, the company recorded pre-tax charges of $22 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 loss from continuing operations before minority interest and income taxes was a benefit of 58.6% for the three months ended December 31, 2006, compared with an effective tax rate of 21.4% for the earnings from continuing operations before minority interest and income taxes for the three months ended December 31, 2005. The fourth quarter 2006 tax benefit was in part attributable to the reinstatement of the U. S. Federal Research and Development credit in December 2006, which was partially offset by the treatment of provisions for a portion of certain litigation reserves as non-deductible.

SPECIFIED ITEMS

In the three months ended December 31, 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:

• $353 million charge for an increase in reserves for the settlement in principle of pricing and sales investigations, a $13 million charge related to a claim for damages and $7 million of income from insurance recovery from an unrelated matter

• $220 million net charge primarily associated with early debt retirement costs in connection with the repurchase of the company’s $2.5 billion Notes due 2011

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• $96 million charge related to asset impairment, accelerated depreciation, and downsizing and streamlining of worldwide operations

• $35 million charge for milestone payments

The pre-tax specified items in 2005 included:

• $197 million charge for increase in litigation reserves

• $86 million charge 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, Inc. for muraglitazar

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 22%, including a 2% favorable foreign exchange impact, to $3.1 billion in the fourth quarter of 2006 compared to the same period in 2005. Worldwide sales of the products that the company views as growth drivers* decreased by 15% in the fourth quarter of 2006 as compared to the same period in 2005. Excluding PLAVIX^®, worldwide sales of the other growth drivers* increased 35% in the fourth quarter of 2006 as compared to the same period in 2005.

U.S. pharmaceutical sales decreased 32% to $1.5 billion in the fourth quarter of 2006 compared to the same period in 2005, primarily due to lower sales of PLAVIX^® and the loss of exclusivity of PRAVACHOL^® primarily offset by continued growth of ABILIFY^®, ERBITUX^®, 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 fourth quarter decreased to less than three weeks.

International pharmaceutical sales decreased 8%, including a 4% favorable foreign exchange impact, to $1.6 billion for the fourth quarter of 2006 compared to the same period in 2005. The decrease was mainly due to a decline in PRAVACHOL^® and TAXOL^® sales resulting from increased generic

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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 fourth quarter of 2006.

Product Sales

• Sales of PLAVIX^®, a platelet aggregation inhibitor that is part of the company’s alliance with sanofi-aventis, decreased 53%, including a 1% favorable foreign exchange impact, to $496 million in the fourth quarter of 2006 from $1,061 million in the same period in 2005. Sales of PLAVIX^® decreased 62% in the U.S. in the fourth quarter of 2006 to $343 million from $906 million in the same period in 2005. The at-risk launch of generic clopidogrel bisulfate continued to have a significant adverse effect on sales in the fourth quarter, which the company estimates to be in the range of $700 million to $750 million. Estimated total U.S. prescription demand for clopidogrel bisulfate (branded and generic) increased by 14% in the fourth quarter of 2006 compared to 2005, while estimated total U.S. prescription demand for branded PLAVIX^® decreased by 64% in the same period. Estimated U.S. wholesaler inventory levels for PLAVIX^® decreased to approximately two and a half weeks at December 31, 2006 as a result of an inventory workdown during the fourth quarter. The full impact of the Apotex Corp. and Apotex Inc. (Apotex) launch of its generic clopidogrel bisulfate product on the company cannot be estimated with certainty at this time and will depend on a number of factors, including the amount of generic product Apotex sold into the distribution channels in August 2006 before the preliminary injunction was granted halting further sales, the extent to which the launch by Apotex will permanently adversely impact the pricing for PLAVIX^® and the impact on prescription demand for clopidogrel bisulfate had Apotex not launched the generic product at risk.

• Sales of AVAPRO^®/AVALIDE^®, an angiotensin II receptor blocker for the treatment of hypertension that is also part of the sanofi-aventis alliance, increased 11%, including a 2% favorable foreign exchange impact, to $307 million in the fourth quarter of 2006 from $277 million in the same period in 2005. U.S. sales increased 8% to $182 million in the fourth quarter of 2006 from $168 million in the same period in 2005, primarily due to higher demand and higher average net selling prices. Estimated total U.S. prescription demand increased approximately 2% compared to 2005. International sales increased 15%, including a 5% favorable foreign exchange impact, to $125 million compared to $109 million in the same period in 2005.

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• Total revenue for ABILIFY^®, an antipsychotic agent for the treatment of schizophrenia, acute bipolar mania and bipolar disorder, increased 62%, including a 2% favorable foreign exchange impact, to $362 million in the fourth quarter of 2006 from $224 million in the same period in 2005. U.S. sales increased 68% to $294 million in the fourth quarter 2006 from $175 million in the same period in 2005, primarily due to higher demand, higher average net selling prices and a benefit resulting from a reduction in U.S. wholesaler inventory in 2005. Estimated total U.S. prescription demand increased approximately 17% compared to the same period last year. International sales of ABILIFY^® have begun to gain momentum, increasing 39% in the fourth quarter of 2006 to $68 million. 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.

• Sales of REYATAZ^®, a protease inhibitor for the treatment of HIV, increased 36%, including a 3% favorable foreign exchange impact, to $255 million in the fourth quarter of 2006 from $188 million in the same period in 2005, primarily due to increased demand in the U.S., Europe and Latin America. U.S. sales increased 31% to $144 million in the fourth quarter of 2006 from $110 million in the same period in 2005, primarily due to higher demand and higher average net selling prices. Estimated total U.S. prescription demand increased approximately 20% compared to 2005. International sales increased 42%, including a 8% favorable foreign exchange impact, to $111 million in the fourth quarter of 2006 from $78 million in the same period in 2005.

• Sales of ERBITUX^®, which is sold by the company almost exclusively in the U.S., increased 38% to $167 million in the fourth quarter of 2006 from $121 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 BARACLUDE^®, ORENCIA^® and SPRYCEL^™ were $36 million, $32 million and $14 million, respectively, in the fourth quarter of 2006. These recently launched products continue to gain market share.

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• Total revenue for the SUSTIVA^® franchise, a non-nucleoside reverse transcriptase inhibitor for the treatment of HIV, increased 31%, including a 3% favorable foreign exchange impact, to $222 million in the fourth quarter of 2006 from $170 million in the same period in 2005. Estimated total U.S. prescription demand for the SUSTIVA^® franchise increased approximately 21% compared to 2005. Total revenue for the SUSTIVA^® franchise includes 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 75%, including a 1% favorable foreign exchange impact, to $146 million in the fourth quarter of 2006 from $584 million in the same period in 2005, due to loss of market exclusivity resulting in generic competition for most strengths in the U.S. beginning in April 2006, and generic competition in key European markets, including France, beginning in July 2006.

• Sales of TAXOL^®, an anti-cancer agent sold almost exclusively in non-U.S. markets, decreased 28%, including a 1% favorable foreign exchange impact, to $130 million in the fourth quarter of 2006 from $181 million in the same period in 2005, primarily due to increased generic competition in Europe and generic entry in Japan during the third quarter of 2006.

HEALTH CARE GROUP

The combined fourth quarter 2006 revenues from the Health Care Group increased 6% to $1.1 billion compared to the same period in 2005.

Nutritionals

Worldwide Nutritional sales increased 6%, including a 2% favorable foreign exchange impact, to $618 million in the fourth quarter of 2006 from $584 million in the same period in 2005. U.S. Nutritional sales increased 5% to $295 million in the fourth quarter of 2006, primarily due to increased sales of ENFAMIL^®, the company’s best selling infant formula. International Nutritional sales increased 7% to $323 million in the fourth quarter of 2006, including a 4% favorable foreign exchange impact, primarily due to increased sales of ENFAGROW^®.

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Other Health Care

• Worldwide ConvaTec sales increased 9%, including a 5% favorable foreign exchange impact, to $291 million in the fourth quarter of 2006 from $267 million in the same period in 2005. Sales of wound therapeutic products increased 10%, including a 5% favorable foreign exchange impact, to $123 million in the fourth quarter of 2006 from $112 million in the same period in 2005, primarily due to continued growth of the AQUACEL^® franchise.

• Worldwide Medical Imaging sales remained relatively flat at $156 million in the fourth quarter of 2006 as compared to the same period in 2005. CARDIOLITE^® sales increased 3% from the same period in 2005.

2007 GUIDANCE

Bristol-Myers Squibb estimates its 2007 fully-diluted earnings guidance for fully-diluted earnings per share from continuing operations on a GAAP basis to be between $1.12 and $1.22.

The company also estimates its 2007 fully-diluted earnings per share guidance to be between $1.20 and $1.30 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 company expects generic clopidogrel bisulfate that was sold into distribution channels following the Apotex at-risk launch in August 2006 will have a residual impact on PLAVIX^® net sales and the company’s overall financial results into 2007; the amount and duration of which will depend on the amount of generic product Apotex sold into the distribution channels. The company’s 2007 guidance range assumes that up to six months of total generic inventory was sold into the distribution channels in August 2006 before the preliminary injunction was granted halting further sales. PLAVIX^® net sales are expected to increase over time as generic inventory in the distribution channels is depleted.

For 2007, the company expects reductions of net sales for products that have lost exclusivity in previous years to moderate to a range between $900 million and $1.0 billion, as compared to $1.4

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billion in 2006, and $1.3 billion in 2005. While the company expects generic clopidogrel bisulfate inventory in the market to have a continued residual impact on 2007 PLAVIX^® net sales, the company does expect PLAVIX^® net sales and earnings growth in 2007, assuming the absence of renewed or additional generic competition. The company expects increased prescription demand for PLAVIX^® as well as for other key brands and newly launched products. Compared to 2006, the gross margin is expected to improve due to net sales growth of higher margin products, lower margin erosion related to exclusivity losses, and manufacturing efficiencies. Marketing, selling and administrative expense is expected to remain relatively unchanged as the company continues to focus on high value primary care and specialist physicians and implements various productivity initiatives. The company expects to continue to increase investments to develop additional new compounds and support the introduction of new products.

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, 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 2007 described above does not reflect the potential impact of either the pending PLAVIX^® patent litigation as described below or the impact of any other legal matters on the company’s results of operations for 2007, beyond current reserves for ongoing matters.

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 patent litigation began on January 22, 2007. If Apotex were to prevail in the trial in the 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.

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It is not possible at this time reasonably to assess the ultimate outcome of the 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^® were $2.7 billion and $3.2 billion in 2006 and 2005, respectively.

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 the company’s negotiations of the proposed settlement with Apotex. This investigation includes a review of corporate governance issues and 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.

As previously disclosed, in December 2006, the company, the United States Department of Justice (DOJ), and the Office of the United States Attorney for the District of Massachusetts have reached an agreement in principle, subject to approval by the DOJ, to settle several investigations involving the company’s drug pricing, and sales and marketing activities. The agreement in principle provides for a civil resolution and an expected payment of $499 million. There would be no criminal charges against the company. The agreement in principle also provides for the company to enter into a corporate integrity agreement with the Office of Inspector General of the U.S. Department of Health and Human Services. The settlement is contingent upon the parties’ agreement to the terms of a final settlement agreement, including on the terms of the corporate integrity agreement, and approval by the DOJ. There can be no assurance that the settlement will be

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finalized. As a result of the agreement in principle, the company in the fourth quarter of 2006 increased its reserves related to these investigations by $353 million, bringing the aggregate reserves for these matters to $499 million.

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 18. 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 ended September 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, 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 ongoing 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 the unpredictability of the ultimate outcome of any litigation matter, including whether the company will prevail at trial in the patent litigation with Apotex, 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; nor are there guarantees that regulatory approvals will be sought, or sought within currently expected timeframes, or that contractual milestones will be achieved. 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, 2007 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 913-981-4911. 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 Co., 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.

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

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

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BRISTOL-MYERS SQUIBB COMPANY

NET SALES BY OPERATING SEGMENTS

FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2006 AND 2005

(Unaudited, dollars in millions)

	Three Months Ended December 31				Twelve Months Ended December 31
	2006		2005		2006		2005
Pharmaceuticals	$	3,148	$	4,012	$	13,861	$	15,254
Nutritionals		618		584		2,347		2,205
Other Health Care		447		423		1,706		1,748
Health Care Group		1,065		1,007		4,053		3,953
Net Sales	$	4,213	$	5,019	$	17,914	$	19,207

14

BRISTOL-MYERS SQUIBB COMPANY

SELECTED PRODUCTS

FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 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 twelve months ended December 31, 2006 compared to the three and twelve months ended December 31, 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 U.S 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.

	Three Months Ended December 31
	Worldwide Net Sales						U.S. Net Sales
	2006		2005		% Change		2006			2005		% Change		% Change in U.S. Total Prescriptions vs. 2005
Pharmaceuticals
Cardiovascular
Plavix	$	496	$	1,061	(53	)%	$	343		$	906	(62	)%	(64	)%
Pravachol		146		584	(75	)%		50			366	(86	)%	(84	)%
Avapro/Avalide		307		277	11	%		182			168	8	%	2	%
Coumadin		57		56	2	%		48			50	(4	)%	(19	)%
Monopril		28		46	(39	)%		(7	)		3		**	(53	)%
Virology
Reyataz		255		188	36	%		144			110	31	%	20	%
Sustiva franchise (total revenue)		222		170	31	%		144			102	41	%	21	%
Zerit		36		47	(23	)%		19			21	(10	)%	(27	)%
Baraclude		36		5		**		18			4		**		**
Other Infectious Diseases
Cefzil		23		75	(69	)%		(5	)		46	(111	)%	(97	)%
Oncology
Erbitux		167		121	38	%		165			121	36	%	N/A
Taxol		130		181	(28	)%		2			5	(60	)%	N/A
Sprycel		14		—	—			11			—	—		N/A
Affective (Psychiatric) Disorders
Abilify (total revenue)		362		224	62	%		294			175	68	%	17	%
EMSAM		3		—	—			3			—	—		N/A
Immunoscience
Orencia		32		—	—			31			—	—		N/A
Other Pharmaceuticals
Efferalgan		74		74	—			—			—	—		N/A
Nutritionals
Enfamil		271		277	(2	)%		190			184	3	%	N/A
Enfagrow		67		53	26	%		—			—	—		N/A
Other Health Care
Ostomy		151		145	4	%		45			46	(2	)%	N/A
Wound Therapeutics		123		112	10	%		43			40	8	%	N/A
Cardiolite		103		100	3	%		90			88	2	%	N/A

15

	Twelve Months Ended December 31
	Worldwide Net Sales						U.S. Net Sales
	2006		2005		% Change		2006			2005		% Change		% Change in U.S. Total Prescriptions vs. 2005
Pharmaceuticals
Cardiovascular
Plavix	$	3,257	$	3,823	(15	)%	$	2,655		$	3,235	(18	)%	(18	)%
Pravachol		1,197		2,256	(47	)%		553			1,274	(57	)%	(59	)%
Avapro/Avalide		1,097		982	12	%		647			574	13	%	4	%
Coumadin		220		212	4	%		186			183	2	%	(21	)%
Monopril		159		208	(24	)%		(4	)		9	(144	)%	(54	)%
Virology
Reyataz		931		696	34	%		514			405	27	%	18	%
Sustiva franchise (total revenue)		791		680	16	%		495			403	23	%	11	%
Zerit		155		216	(28	)%		75			97	(23	)%	(30	)%
Baraclude		83		12		**		50			11		**		**
Other Infectious Diseases
Cefzil		87		259	(66	)%		(10	)		153	(107	)%	(91	)%
Oncology
Erbitux		652		413	58	%		646			411	57	%	N/A
Taxol		563		747	(25	)%		12			17	(29	)%	N/A
Sprycel		25		—	—			22			—	—		N/A
Affective (Psychiatric) Disorders
Abilify (total revenue)		1,282		912	41	%		1,052			750	40	%	21	%
EMSAM		18		—	—			18			—	—		N/A
Immunoscience
Orencia		89		—	—			88			—	—		N/A
Other Pharmaceuticals
Efferalgan		266		283	(6	)%		—			—	—		N/A
Nutritionals
Enfamil		1,007		992	2	%		688			685	—		N/A
Enfagrow		262		206	27	%		—			—	—		N/A
Other Health Care
Ostomy		554		550	1	%		159			161	(1	)%	N/A
Wound Therapeutics		441		416	6	%		143			133	8	%	N/A
Cardiolite		408		416	(2	)%		358			370	(3	)%	N/A

** Change is in excess of 200%

16

BRISTOL-MYERS SQUIBB COMPANY

CONSOLIDATED STATEMENTS OF EARNINGS

FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2006 AND 2005

(Unaudited, amounts in millions except per share data)

	Three Months Ended December 31						Twelve Months Ended December 31
	2006			2005			2006			2005
Net Sales	$	4,213		$	5,019		$	17,914		$	19,207
Cost of products sold		1,447			1,595			5,956			5,928
Marketing, selling and administrative		1,311			1,369			4,919			5,106
Advertising and product promotion		418			444			1,351			1,476
Research and development		821			775			3,067			2,746
Provision for restructuring, net		53			32			59			32
Litigation charges, net		346			197			302			269
Gain on sale of businesses		—			—			(200	)		(569	)
Equity in net income of affiliates		(138	)		(94	)		(474	)		(334	)
Other expense/(income), net (a)		240			(131	)		299			37
		4,498			4,187			15,279			14,691
(Loss)/Earnings from Continuing Operations Before Minority Interest and Income Taxes		(285	)		832			2,635			4,516
(Benefit)/provision for income taxes		(167	)		178			610			932
Minority interest, net of taxes		16			155			440			592
(Loss)/Earnings from Continuing Operations		(134	)		499			1,585			2,992
Discontinued Operations
Loss, net of taxes		—			—			—			(5	)
Gain on disposal, net of taxes		—			—			—			13
		—			—			—			8
Net (Loss)/Earnings	$	(134	)	$	499		$	1,585		$	3,000
Earnings per Common Share:
Basic:
(Loss)/Earnings from Continuing Operations	$	(0.07	)	$	0.26		$	0.81		$	1.53
Discontinued Operations
Loss, net of taxes		—			—			—			—
Gain on disposal, net of taxes		—			—			—			—
Net (Loss)/Earnings per Common Share	$	(0.07	)	$	0.26		$	0.81		$	1.53
Diluted:
(Loss)/Earnings from Continuing Operations	$	(0.07	)	$	0.26		$	0.81		$	1.52
Discontinued Operations
Loss, net of taxes		—			—			—			—
Gain on disposal, net of taxes		—			—			—			—
Net (Loss)/Earnings per Common Share (1), (2)	$	(0.07	)	$	0.26		$	0.81		$	1.52
Average Common Shares Outstanding:
Basic		1,961			1,953			1,960			1,952
Diluted (1), (2)		1,961			1,983			1,963			1,983
(a) Other expense/(income), net
Interest expense	$	128		$	100		$	498		$	349
Interest income		(73	)		(52	)		(274	)		(148	)
Foreign exchange transaction losses		6			11			6			58
Other expense/(income), net		179			(190	)		69			(222	)
	$	240		$	(131	)	$	299		$	37

(1) For the three months ended December 31, 2006, as a result of the net loss, diluted average common shares and loss per common share are equal to basic average common shares and loss per common share

(2) For the twelve months ended December 31, 2006, the assumed shares of convertible debt are not used for diluted earnings per common share calculation as the impact of convertible debt is not dilutive

17

APPENDIX 1

BRISTOL-MYERS SQUIBB COMPANY

SPECIFIED ITEMS

FOR THE THREE MONTHS ENDED DECEMBER 31, 2006 AND 2005

(Unaudited, dollars in millions)

Three months ended December 31, 2006

	Cost of products sold		Research and development		Provision for restructuring, net		Litigation settlement expense/ (income)			Other expense/ (income), net		Total
Litigation Matters:
Pharmaceutical pricing and sales litigation	$	—	$	—	$	—	$	353		$	—	$	353
Claim for damages		—		—		—		—			13		13
Insurance recovery		—		—		—		(7	)		—		(7	)
		—		—		—		346			13		359
Other:
Debt retirement costs		—		—		—		—			220		220
Downsizing and streamlining of worldwide operations		—		—		53		—			—		53
Accelerated depreciation and asset impairment		29		14		—		—			—		43
Milestone payments		—		35		—		—			—		35
	$	29	$	49	$	53	$	346		$	233		710
Income taxes on items above													(196	)
Reduction to Net Earnings from Continuing Operations												$	514

Three months ended December 31, 2005

	Cost of products sold		Research and development		Provision for restructuring, net		Litigation settlement expense		Other expense/ (income), net			Total
Litigation Matters:
Private litigation and governmental investigations	$	—	$	—	$	—	$	185	$	—		$	185
Pharmaceutical pricing and sales litigation		—		—		—		12		—			12
		—		—		—		197		—			197
Other:
Downsizing and streamlining of worldwide operations		1		14		32		—		—			47
Accelerated depreciation and asset impairment		27		12		—		—		—			39
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

18

BRISTOL-MYERS SQUIBB COMPANY

SPECIFIED ITEMS

FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2006 AND 2005

(Unaudited, dollars in millions)

Twelve months ended December 31, 2006

	Cost of products sold		Research and development		Marketing, selling and admin.		Provision for restructuring, net		Litigation settlement expense/ (income)			Other expense/ (income), net		Gain on sale of product asset			Total
Litigation Matters:
Pharmaceutical pricing and sales litigation	$	—	$	—	$	—	$	—	$	353		$	—	$	—		$	353
Product liability		—		—		—		—		—			11		—			11
Claim for damages		—		—		—		—		—			13		—			13
Commercial litigations		—		—		—		—		(14	)		—		—			(14	)
Insurance recovery		—		—		—		—		(37	)		—		—			(37	)
		—		—		—		—		302			24		—			326
Other:
Debt retirement costs		—		—		—		—		—			220		—			220
Accelerated depreciation, asset impairment and contract termination		167		15		4		—		—			—		—			186
Upfront and milestone payments		—		70		—		—		—			—		—			70
Downsizing and streamlining of worldwide operations		—		—		—		59		—			—		—			59
Gain on sale of product asset		—		—		—		—		—			—		(200	)		(200	)
	$	167	$	85	$	4	$	59	$	302		$	244	$	(200	)		661
Income taxes on items above																		(149	)
Change in estimate for taxes on prior year items																		39
Reduction to Net Earnings from Continuing Operations																	$	551

Twelve months ended December 31, 2005

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

19

EX-99.2

Exhibit 99.2

BRISTOL-MYERS SQUIBB COMPANY

NET SALES FROM CONTINUING OPERATIONS

QUARTERLY SALES TREND ANALYSIS

($ in millions)

Net Sales	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
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		$	3,148		$	13,861		-22	%	-9	%
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			1,501			7,371		-32	%	-9	%
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			648			4,317		-61	%	-27	%
Oncology/Virology		348			345			693			370			1,063			391			1,454			419			458			877			494			1,371			525			1,896		34	%	30	%
Neuroscience		161			200			361			213			574			176			750			231			280			511			262			773			297			1,070		69	%	43	%
Immunoscience		—			—			—			—			—			—			—			5			18			23			34			57			31			88		—		—
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			934			3,844		-11	%	-13	%
Latin America/Canada		258			306			564			285			849			325			1,174			288			303			591			300			891			306			1,197		-6	%	2	%
Asia/Pacific Medicines		157			161			318			176			494			171			665			149			163			312			170			482			176			658		3	%	-1	%
Japan Medicines		142			168			310			166			476			183			659			130			157			287			148			435			173			608		-5	%	-8	%
Nutritionals		526			548			1,074			547			1,621			584			2,205			565			582			1,147			582			1,729			618			2,347		6	%	6	%
Other Health Care		428			455			883			442			1,325			423			1,748			411			430			841			418			1,259			447			1,706		6	%	-2	%
ConvaTec		228			247			475			250			725			267			992			230			262			492			265			757			291			1,048		9	%	6	%
Medical Imaging		145			151			296			150			446			156			602			181			168			349			153			502			156			658		—		9	%
Consumer Medicines		55			57			112			42			154			—			154			—			—			—			—			—			—			—		—		-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		$	4,213		$	17,914		-16	%	-7	%
% of Total Sales	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
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	%		74.7	%		77.4	%	(520	)	(200	)
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	%		35.6	%		41.1	%	(860	)	(130	)
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	%		15.4	%		24.1	%	(1750	)	(680	)
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	%		12.5	%		10.5	%	470		290
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	%		7.0	%		6.0	%	350		210
Immunoscience		—			—			—			—			—			—			—			0.1	%		0.4	%		0.2	%		0.8	%		0.4	%		0.7	%		0.5	%	70		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	%		22.2	%		21.5	%	120		(140	)
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	%		7.3	%		6.7	%	80		60
Asia/Pacific Medicines		3.5	%		3.3	%		3.4	%		3.7	%		3.5	%		3.4	%		3.5	%		3.2	%		3.4	%		3.3	%		4.1	%		3.5	%		4.2	%		3.7	%	80		20
Japan Medicines		3.1	%		3.4	%		3.3	%		3.5	%		3.3	%		3.7	%		3.4	%		2.8	%		3.2	%		3.0	%		3.6	%		3.2	%		4.1	%		3.4	%	40		—
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	%		14.7	%		13.1	%	300		160
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	%		10.6	%		9.5	%	220		40
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	%		6.9	%		5.8	%	160		60
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	%		3.7	%		3.7	%	60		60
Consumer Medicines		1.2	%		1.2	%		1.2	%		0.9	%		1.1	%		—			0.8	%		—			—			—			—			—			—			—		—		(80	)
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, 2006

($ in millions)

QUARTER-TO-DATE
	Pharmaceuticals Group			Nutritionals			Convatec			Medical Imaging			Consumer Medicines			Continuing Operations
Price Increases/(Decreases)		—			3	%		1	%		-1	%		—			—
Foreign Exchange		1	%		2	%		4	%		1	%		—			2	%
Volume		-23	%		1	%		4	%		—			—			-18	%
Total Change		-22	%		6	%		9	%		—			—			-16	%
Total 2006 Period to Date Sales	$	3,148		$	618		$	291		$	156		$	—		$	4,213
Total 2005 Period to Date Sales	$	4,012		$	584		$	267		$	156		$	—		$	5,019
YEAR-TO-DATE
	Pharmaceuticals Group			Nutritionals			Convatec			Medical Imaging			Consumer Medicines			Continuing Operations
Price Increases/(Decreases)		2	%		3	%		—			-2	%		—			2	%
Foreign Exchange		—			1	%		1	%		—			—			—
Volume		-11	%		2	%		5	%		11	%		-100	%		-9	%
Total Change		-9	%		6	%		6	%		9	%		-100	%		-7	%
Total 2006 Period to Date Sales	$	13,861		$	2,347		$	1,048		$	658		$	—		$	17,914
Total 2005 Period to Date Sales	$	15,254		$	2,205		$	992		$	602		$	154		$	19,207

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		$	4,213		$	17,914		-16	%	-7	%
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			1,447			5,956		-9	%	0	%
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			1,311			4,919		-4	%	-4	%
Advertising and product promotion		318			365			683			349			1,032			444			1,476			295			352			647			286			933			418			1,351		-6	%	-8	%
Research and development		653			649			1,302			669			1,971			775			2,746			750			740			1,490			756			2,246			821			3,067		6	%	12	%
Provision for restructuring, net		3			2			5			(5	)		—			32			32			1			3			4			2			6			53			59		66	%	84	%
Litigation (income)/charges, net		124			(26	)		98			(26	)		72			197			269			(21	)		(14	)		(35	)		(9	)		(44	)		346			302		76	%	12	%
Gain on sale of business and product asset		—			—			—			(569	)		(569	)		—			(569	)		(200	)		—			(200	)		—			(200	)		—			(200	)	—		65	%
Equity in net income of affiliates		(69	)		(87	)		(156	)		(84	)		(240	)		(94	)		(334	)		(93	)		(125	)		(218	)		(118	)		(336	)		(138	)		(474	)	-47	%	-42	%
Other (income)/expense, net		25			105			130			38			168			(131	)		37			37			56			93			(34	)		59			240			299		*		*
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			4,498			15,279		7	%	4	%
(Loss)/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			(285	)		2,635		-134	%	-42	%
(Benefit)/Provision for income taxes		268			(21	)		247			507			754			178			932			328			256			584			193			777			(167	)		610		-194	%	-35	%
Minority interest, net of taxes		122			160			282			155			437			155			592			151			187			338			86			424			16			440		-90	%	-26	%
(Loss)/Earnings from Continuing Operations	$	538		$	991		$	1,529		$	964		$	2,493		$	499		$	2,992		$	714		$	667		$	1,381		$	338		$	1,719		($	134	)	$	1,585		-127	%	-47	%
Interest expense on conversion of convertible debt bonds, net of tax		4			5			9			6			15			7			22			8			8			16			9			25			—	(1)		—	(2)
(Loss)/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		($	134	)(1)	$	1,585	(2)
Diluted (Loss)/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		($	0.07	)(1)	$	0.81	(2)	-127	%	-47	%
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			1,961	(1)		1,963	(2)	-1	%	-1	%
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		—		—
% of Net Sales	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
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	%		65.7	%		66.8	%	(250	)	(230	)
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	%		34.3	%		33.2	%	250		230
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	%		31.1	%		27.5	%	380		90
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	%		9.9	%		7.5	%	110		(20	)
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	%		19.5	%		17.1	%	410		280
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	%		106.8	%		85.3	%	2,340		880
(Loss)/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	%		-6.8	%		14.7	%	(2,340	)	(880	)
(Loss)/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	%		-3.2	%		8.8	%	(1,310	)	(680	)
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	%		58.6	%		23.1	%
Other (Income)/Expense, net	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
Interest expense	$	97		$	73		$	170		$	79		$	249		$	100		$	349		$	116		$	124		$	240		$	130		$	370		$	128		$	498		28	%	43	%
Interest income		(45	)		(23	)		(68	)		(28	)		(96	)		(52	)		(148	)		(62	)		(65	)		(127	)		(74	)		(201	)		(73	)		(274	)	-40	%	-85	%
Foreign exchange transaction (gains)/losses		12			35			47			—			47			11			58			(12	)		23			11			(11	)		—			6			6		-45	%	-90	%
Other (income)/expense, net		(39	)		20			(19	)		(13	)		(32	)		(190	)		(222	)		(5	)		(26	)		(31	)		(79	)		(110	)		179			69		194	%	131	%
	$	25		$	105		$	130		$	38		$	168		($	131	)	$	37		$	37		$	56		$	93		($	34	)	$	59		$	240		$	299			*		*

* in excess of +/- 200%

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

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

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

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	$	4,213	$	17,914	-16	%	-7	%
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		3,148		13,861	-22	%	-9	%
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		1,093		6,156	-48	%	-21	%
Plavix		814		968		1,782		980		2,762		1,061		3,823		986		1,145		2,131		630		2,761		496		3,257	-53	%	-15	%
Pravachol		520		625		1,145		527		1,672		584		2,256		536		323		859		192		1,051		146		1,197	-75	%	-47	%
Avapro/ Avalide		196		258		454		251		705		277		982		233		280		513		277		790		307		1,097	11	%	12	%
Coumadin		49		50		99		57		156		56		212		55		55		110		53		163		57		220	2	%	4	%
Monopril		59		54		113		49		162		46		208		48		49		97		34		131		28		159	-39	%	-24	%
Virology		430		457		887		440		1,327		450		1,777		468		524		992		532		1,524		580		2,104	29	%	18	%
Reyataz		149		183		332		176		508		188		696		207		236		443		233		676		255		931	36	%	34	%
Sustiva Franchise*****		173		167		340		170		510		170		680		175		193		368		201		569		222		791	31	%	16	%
Zerit		59		59		118		51		169		47		216		40		41		81		38		119		36		155	-23	%	-28	%
Baraclude		—		5		5		2		7		5		12		11		14		25		22		47		36		83		***		***
Infectious Diseases		293		261		554		239		793		286		1,079		199		172		371		169		540		159		699	-44	%	-35	%
Cefzil		82		54		136		48		184		75		259		23		23		46		18		64		23		87	-69	%	-66	%
Oncology		387		371		758		380		1,138		395		1,533		361		401		762		399		1,161		394		1,555	—		1	%
Erbitux		87		98		185		107		292		121		413		138		172		310		175		485		167		652	38	%	58	%
Taxol		205		186		391		175		566		181		747		147		149		296		137		433		130		563	-28	%	-25	%
Sprycel		—		—		—		—		—		—		—		—		—		—		11		11		14		25	—		—
Affective (Psychiatric) Disorders		232		284		516		306		822		267		1,089		323		376		699		354		1,053		404		1,457	51	%	34	%
Abilify**		188		240		428		260		688		224		912		283		324		607		313		920		362		1,282	62	%	41	%
EMSAM		—		—		—		—		—		—		—		—		12		12		3		15		3		18	—		—
Immunoscience		—		—		—		—		—		—		—		5		18		23		34		57		32		89	—		—
Orencia				—		—		—		—		—		—		5		18		23		34		57		32		89	—		—
Other Pharmaceuticals
Efferalgan		88		55		143		66		209		74		283		68		62		130		62		192		74		266	—		-6	%
NUTRITIONALS		526		548		1,074		547		1,621		584		2,205		565		582		1,147		582		1,729		618		2,347	6	%	6	%
Enfamil		235		250		485		230		715		277		992		237		253		490		246		736		271		1,007	-2	%	2	%
Enfagrow		50		49		99		54		153		53		206		67		59		126		69		195		67		262	26	%	27	%
OTHER HEALTH CARE		428		455		883		442		1,325		423		1,748		411		430		841		418		1,259		447		1,706	6	%	-2	%
CONVATEC		228		247		475		250		725		267		992		230		262		492		265		757		291		1,048	9	%	6	%
Ostomy		127		139		266		139		405		145		550		123		141		264		139		403		151		554	4	%	1	%
Wound Therapeutics		97		103		200		104		304		112		416		98		107		205		113		318		123		441	10	%	6	%
MEDICAL IMAGING		145		151		296		150		446		156		602		181		168		349		153		502		156		658	—		9	%
Cardiolite		102		108		210		106		316		100		416		103		105		208		97		305		103		408	3	%	-2	%
CONSUMER MEDICINES		55		57		112		42		154		—		154		—		—		—		—		—		—		—	—		-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		$	2,115		$	9,729		-26	%	-7	%
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			1,517			7,417		-32	%	-9	%
Cardiovascular		1,080		1,377		2,457		1,328		3,785		1,496		5,281		1,341			1,330			2,671			752		3,423			616			4,039		-59	%	-24	%
Plavix		673		823		1,496		833		2,329		906		3,235		850			988			1,838			474		2,312			343			2,655		-62	%	-18	%	-64	%	-18	%	-66	%	-20	%
Pravachol		258		353		611		297		908		366		1,274		302			128			430			73		503			50			553		-86	%	-57	%	-84	%	-59	%	-84	%	-59	%
Avapro/ Avalide		102		157		259		147		406		168		574		139			167			306			159		465			182			647		8	%	13	%	2	%	4	%	1	%	2	%
Coumadin		42		42		84		49		133		50		183		47			46			93			45		138			48			186		-4	%	2	%	-19	%	-21	%	-18	%	-22	%
Monopril		3		2		5		1		6		3		9		2			1			3			—		3			(7	)		(4	)	*	**	-144	%	-53	%	-54	%	-51	%	-54	%
Virology		231		231		462		239		701		244		945		259			270			529			292		821			327			1,148		34	%	21	%
Reyataz		92		98		190		105		295		110		405		119			122			241			129		370			144			514		31	%	27	%	20	%	18	%	15	%	17	%
Sustiva Franchise*****		103		97		200		101		301		102		403		108			115			223			128		351			144			495		41	%	23	%	21	%	11	%	20	%	11	%
Zerit		26		26		52		24		76		21		97		19			18			37			19		56			19			75		-10	%	-23	%	-27	%	-30	%	-28	%	-30	%
Baraclude		—		5		5		2		7		4		11		9			9			18			14		32			18			50			***		***		***		***	198	%		***
Infectious Diseases		91		57		148		53		201		75		276		12			(3	)		9			25		34			(31	)		3		-141	%	-99	%
Cefzil		50		30		80		27		107		46		153		(5	)		(1	)		(6	)		1		(5	)		(5	)		(10	)	-111	%	-107	%	-97	%	-91	%	-97	%	-91	%
Oncology		115		112		227		131		358		144		502		159			187			346			201		547			195			742		35	%	48	%
Erbitux		87		97		184		106		290		121		411		136			172			308			173		481			165			646		36	%	57	%	N/A		N/A		N/A		N/A
Taxol		4		4		8		4		12		5		17		4			4			8			2		10			2			12		-60	%	-29	%	N/A		N/A		N/A		N/A
Sprycel		—		—		—		—		—		—		—		—			—			—			11		11			11			22		—		—		N/A		N/A		N/A		N/A
Affective (Psychiatric) Disorders		167		206		373		221		594		183		777		237			286			523			266		789			302			1,091		65	%	40	%
Abilify**		161		200		361		214		575		175		750		231			267			498			260		758			294			1,052		68	%	40	%	17	%	21	%	17	%	21	%
EMSAM		—		—		—		—		—		—		—		—			12			12			3		15			3			18		—		—		N/A		N/A		N/A		N/A
Immunoscience		—		—		—		—		—		—		—		5			18			23			34		57			31			88		—		—
Orencia		—		—		—		—		—		—		—		5			18			23			34		57			31			88		—		—		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			295			1,091		5	%	2	%
Enfamil		162		171		333		168		501		184		685		155			174			329			169		498			190			688		3	%	—		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			232			904		3	%	-7	%
CONVATEC		66		71		137		82		219		93		312		73			85			158			84		242			101			343		9	%	10	%
Ostomy		34		38		72		43		115		46		161		34			41			75			39		114			45			159		-2	%	-1	%	N/A		N/A		N/A		N/A
Wound Therapeutics		30		29		59		34		93		40		133		30			34			64			36		100			43			143		8	%	8	%	N/A		N/A		N/A		N/A
MEDICAL IMAGING		124		127		251		129		380		132		512		158			141			299			131		430			131			561		-1	%	10	%
Cardiolite		91		96		187		95		282		88		370		91			91			182			86		268			90			358		2	%	-3	%	N/A		N/A		N/A		N/A
CONSUMER MEDICINES		52		55		107		41		148		—		148		—			—			—			—		—			—			—		—		-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	$	2,098	$	8,185	-3	%	-6	%
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		1,631		6,444	-8	%	-9	%
Cardiovascular		632		654		1,286		607		1,893		594		2,487		576		577		1,153		487		1,640		477		2,117	-20	%	-15	%
Plavix		141		145		286		147		433		155		588		136		157		293		156		449		153		602	-1	%	2	%
Pravachol		262		272		534		230		764		218		982		234		195		429		119		548		96		644	-56	%	-34	%
Avapro/Avalide		94		101		195		104		299		109		408		94		113		207		118		325		125		450	15	%	10	%
Coumadin		7		8		15		8		23		6		29		8		9		17		8		25		9		34	50	%	17	%
Monopril		56		52		108		48		156		43		199		46		48		94		34		128		35		163	-19	%	-18	%
Virology		199		226		425		201		626		206		832		209		254		463		240		703		253		956	23	%	15	%
Reyataz		57		85		142		71		213		78		291		88		114		202		104		306		111		417	42	%	43	%
Sustiva Franchise*****		70		70		140		69		209		68		277		67		78		145		73		218		78		296	15	%	7	%
Zerit		33		33		66		27		93		26		119		21		23		44		19		63		17		80	-35	%	-33	%
Baraclude		—		—		—		—		—		1		1		2		5		7		8		15		18		33		***		***
Infectious Diseases		202		204		406		186		592		211		803		187		175		362		144		506		190		696	-10	%	-13	%
Cefzil		32		24		56		21		77		29		106		28		24		52		17		69		28		97	-3	%	-8	%
Oncology		272		259		531		249		780		251		1,031		202		214		416		198		614		199		813	-21	%	-21	%
Erbitux		—		1		1		1		2		—		2		2		—		2		2		4		2		6	—		200	%
Taxol		201		182		383		171		554		176		730		143		145		288		135		423		128		551	-27	%	-25	%
Sprycel		—		—		—		—		—		—		—		—		—		—		—		—		3		3	—		—
Affective (Psychiatric) Disorders		65		78		143		85		228		84		312		86		90		176		88		264		102		366	21	%	17	%
Abilify**		27		40		67		46		113		49		162		52		57		109		53		162		68		230	39	%	42	%
EMSAM		—		—		—		—		—		—		—		—		—		—		—		—		—		—	—		—
Immunoscience		—		—		—		—		—		—		—		—		—		—		—		—		1		1	—		—
Orencia		—		—		—		—		—		—		—		—		—		—		—		—		1		1	—		—
Other Pharmaceuticals
Efferalgan		88		55		143		66		209		74		283		68		62		130		62		192		74		266	—		-6	%
NUTRITIONALS		271		281		552		281		833		302		1,135		318		300		618		315		933		323		1,256	7	%	11	%
Enfamil		73		79		152		62		214		93		307		82		79		161		77		238		81		319	-13	%	4	%
Enfagrow		50		49		99		54		153		53		206		67		59		126		69		195		67		262	26	%	27	%
OTHER HEALTH CARE		186		202		388		190		578		198		776		180		204		384		203		587		215		802	9	%	3	%
CONVATEC		162		176		338		168		506		174		680		157		177		334		181		515		190		705	9	%	4	%
Ostomy		93		101		194		96		290		99		389		89		100		189		100		289		106		395	7	%	2	%
Wound Therapeutics		67		74		141		70		211		72		283		68		73		141		77		218		80		298	11	%	5	%
MEDICAL IMAGING		21		24		45		21		66		24		90		23		27		50		22		72		25		97	4	%	8	%
Cardiolite		11		12		23		11		34		12		46		12		14		26		11		37		13		50	8	%	9	%
CONSUMER MEDICINES		3		2		5		1		6		—		6		—		—		—		—		—		—		—	—		-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

U.S. PHARMACEUTICALS NET SALES

EXCLUDING ESTIMATED IMPACT OF LAUNCH OF GENERIC CLOPIDOGREL BISULFATE

($ in millions)

	2006		2005		% Change
	Q4		Q4		Qtr vs. Qtr
U.S Pharmaceuticals Net Sales
U.S Pharmaceuticals Net Sales as Reported	$	1,501	$	2,220	-32%
Estimated Impact of Launch of Generic Clopidogrel Bisulfate		700 to 750		—	—
U.S Pharmaceuticals Net Sales Excluding the Estimated Impact of Launch of Generic Clopidogrel Bisulfate	$	2,201 to $2,251	$	2,220	-1% to 1%

BRISTOL-MYERS SQUIBB COMPANY

GROSS MARGIN

EXCLUDING SPECIFIED ITEMS

($ in millions)

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

	2005
	Q1			Q2			Q3			Q4			TOTAL YEAR
Net Sales	$	4,532		$	4,889		$	4,767		$	5,019		$	19,207
Gross Profit
Gross Profit	$	3,165		$	3,406		$	3,284		$	3,424		$	13,279
Specified items*		13			21			35			33			102
Gross Margin Excluding Specified Items	$	3,178		$	3,427		$	3,319		$	3,457		$	13,381
Gross Margin %
Gross Margin %		69.8	%		69.7	%		68.9	%		68.2	%		69.1	%
Specified items*		0.3	%		0.4	%		0.7	%		0.7	%		0.5	%
Gross Margin Excluding Specified Items		70.1	%		70.1	%		69.6	%		68.9	%		69.6	%

* Please refer to the Specified Item - QTD and YTD tabs for detail of specified items.

BRISTOL-MYERS SQUIBB COMPANY

RESEARCH AND DEVELOPMENT EXPENSES

EXCLUDING SPECIFIED ITEMS

($ in millions)

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

	2005
	Q1		Q2		Q3		Q4		TOTAL YEAR
Research and Development Expenses	$	653	$	649	$	669	$	775	$	2,746
Specified items*		36		1		—		35		72
Research and Development Expenses Excluding Specified Items	$	617	$	648	$	669	$	740	$	2,674

* Please refer to the Specified Item - QTD and YTD tabs for detail of specified items.

BRISTOL-MYERS SQUIBB COMPANY

EFFECTIVE TAX RATE

EXCLUDING SPECIFIED ITEMS

($ in millions)

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

	2005
	Q1			Q2			Q3			Q4			TOTAL YEAR
Provision for Income Taxes
Provision/(Benefit) for Income Taxes	$	268		$	(21	)	$	507		$	178		$	932
Specified items*		42			117			(202	)		52			9
Provision for Income Taxes Excluding Specified Items	$	310		$	96		$	305		$	230		$	941
Earnings from Continuing Operations Before Minority Interest and Provision for Income Taxes	$	928		$	1,130		$	1,626		$	832		$	4,516
Earnings from Continuing Operations Before Minority Interest and Provision for Income Taxes Excluding Specified Items	$	1,102		$	1,189		$	1,062		$	986		$	4,339
Effective Tax Rate
Effective Tax Rate from Continuing Operations		28.9	%		-1.9	%		31.2	%		21.4	%		20.6	%
Effective Tax Rate from Continuing Operations Excluding Specified Items		28.1	%		8.1	%		28.7	%		23.3	%		21.7	%

* Please refer to the Specified Item - QTD and YTD tabs for detail of specified items.

BRISTOL-MYERS SQUIBB COMPANY

EARNINGS FROM CONTINUING OPERATIONS BEFORE MINORITY INTEREST AND INCOME TAXES

EXCLUDING SPECIFIED ITEMS

($ in millions)

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

	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	)
Subtotal		174			59			(564	)		154			(177	)
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			Q4			TOTAL YEAR *
Diluted Earnings / (Loss) per Common Share from Continuing Operations	$	0.36		$	0.34		$	0.17		$	(0.07	)	$	0.81
Specified items:
Gain on sale of product asset		(0.06	)		—			—			—			(0.06	)
Litigation matters		0.01			—			(0.01	)		0.14			0.14
Insurance recoveries		(0.01	)		—			—			—			(0.01	)
Downsizing and streamlining of worldwide operations / other		0.02			0.01			0.04			0.05			0.12
Debt retirement costs		—			—			—			0.07			0.07
Tax item		—			—			0.02			—			0.02
Subtotal		(0.04	)		0.01			0.05			0.26			0.28
Diluted Earnings per Common Share from Continuing Operations Excluding Specified Items	$	0.32		$	0.35		$	0.22		$	0.19		$	1.09
	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	)
Subtotal		0.07			(0.03	)		(0.18	)		0.05			(0.09	)
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 DECEMBER 31, 2006 AND 2005

($ in millions)

Three months ended December 31, 2006

	Cost of products sold		Research and development		Provision for restructuring, net		Litigation settlement (income)/ expense, net			Other expense		Total
Litigation Matters:
Pharmaceutical pricing and sales litigation	$	—	$	—	$	—	$	353		$	—	$	353
Claim for damages		—		—		—		—			13		13
Insurance recovery		—		—		—		(7	)		—		(7	)
		—		—		—		346			13		359
Other:
Debt retirement costs		—		—		—		—			220		220
Downsizing and streamlining of worldwide operations		—		—		53		—			—		53
Accelerated depreciation and asset impairment		29		14		—		—			—		43
Milestone payments		—		35		—		—			—		35
	$	29	$	49	$	53	$	346		$	233		710
Income taxes on items above													(196	)
Reduction to Net Earnings from Continuing Operations												$	514

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:
Downsizing and streamlining of worldwide operations		1		14		32		—		—			47
Accelerated depreciation and asset impairment		27		12		—		—		—			39
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

BRISTOL-MYERS SQUIBB COMPANY

SPECIFIED ITEMS

FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2006 AND 2005

($ in millions)

Twelve months ended December 31, 2006

	Cost of products sold		Research and development		Marketing, selling and administrative		Provision for restructuring, net		Litigation settlement (income)/ expense, net			Other expense		Gain on sale of product asset			Total
Litigation Matters:
Pharmaceutical pricing and sales litigation	$	—	$	—	$	—	$	—	$	353		$	—	$	—		$	353
Product liability		—		—		—		—		—			11		—			11
Claim for damages		—		—		—		—		—			13		—			13
Commercial litigations		—		—		—		—		(14	)		—		—			(14	)
Insurance recovery		—		—		—		—		(37	)		—		—			(37	)
		—		—		—		—		302			24		—			326
Other:
Debt retirement costs		—		—		—		—		—			220		—			220
Accelerated depreciation, asset impairment and contract termination		167		15		4		—		—			—		—			186
Upfront and milestone payments		—		70		—		—		—			—		—			70
Downsizing and streamlining of worldwide operations		—		—		—		59		—			—		—			59
Gain on sale of product asset		—		—		—		—		—			—		(200	)		(200	)
	$	167	$	85	$	4	$	59	$	302		$	244	$	(200	)		661
Income taxes on items above																		(149	)
Change in estimate for taxes on prior year items																		39
Reduction to Net Earnings from Continuing Operations																	$	551

Twelve months ended December 31, 2005

	Cost of products sold		Research and development		Provision for restructuring, net		Gain on sale of business			Litigation settlement expense/ (income), net			Other (income)/ expense, net			Total
Litigation Matters:
Private litigations and governmental investigations	$	—	$	—	$	—	$	—		$	558		$	—		$	558
ERISA liability and other matters		—		—		—		—			20			—			20
Pharmaceutical pricing and sales litigation		—		—		—		—			12			—			12
Insurance recoveries		—		—		—		—			(321	)		—			(321	)
		—		—		—		—			269			—			269
Other:
Accelerated depreciation and asset impairment		96		14		—		—			—			—			110
Debt retirement costs		—		—		—		—			—			69			69
Downsizing and streamlining of worldwide operations		1		14		32		—			—			—			47
Upfront and milestone payments		—		44		—		—			—			—			44
Loss on sale of fixed assets		—		—		—		—			—			18			18
Gain on sale of equity investment		—		—		—		—			—			(27	)		(27	)
Termination of muraglitazar agreement		5		—		—		—			—			(143	)		(138	)
Gain on sale of Consumer Medicines businesses		—		—		—		(569	)		—			—			(569	)
	$	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	)

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	$	4,013
Short-term borrowings		244		292		277		231		234		189		630		187
Long-term debt		8,326		6,008		5,895		8,364		8,278		8,239		7,837		7,275
Net debt	$	2,588	$	3,260	$	2,391	$	2,796	$	3,231	$	3,071	$	2,962	$	3,449
Receivables, net of allowances	$	3,647	$	3,315	$	3,305	$	3,378	$	3,236	$	3,326	$	2,945	$	3,247
Stockholders’ equity		10,381		10,801		11,268		11,208		11,556		11,712		11,589		9,991	(1)
Capital expenditures and capitalized software (for the quarter ended)		181		171		185		201		202		160		199		224

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

BRISTOL-MYERS SQUIBB COMPANY

2007 FULL YEAR PROJECTED DILUTED EPS FROM CONTINUING OPERATIONS

EXCLUDING PROJECTED SPECIFIED ITEMS

	Full Year 2007
Projected Diluted Earnings per Common Share from Continuing Operations	$	1.12 to $1.22
Projected Specified Items:
Upfront and milestone payments		0.05
Downsizing and streamlining of worldwide operations		0.03
Total		0.08
Projected Diluted Earnings per Common Share from Continuing Operations Excluding Specified Items	$	1.20 to $1.30

Gross Margin/Tax Rate Projections Excluding Specified Items

Gross margin on a GAAP basis for the full year 2006 was 66.8%, which included specified items of $167 million and had a 0.9% adverse impact on gross margin in aggregate. On a non-GAAP basis, 2006 gross margin was 67.7%. On a non-GAAP basis, based on historical trends in 2006 the Company projects gross margin for the full year 2007 to be at least 100 basis points higher than 2006. There is no reasonably accessible or reliable comparable GAAP measure for this forward-looking information on gross margin. See Gross Margin non comparable tab.

Research and development expenses on a GAAP basis for the full year 2006 were $3,067 million, which included specified items of $85 million. On a non-GAAP basis, 2006 research and development expenses were $2,982 million. On a non-GAAP basis, based on historical trends in 2006 the Company projects research and development expenses for the full year 2007 to increase in the upper single digit range compared to 2006. There is no reasonably accessible or reliable comparable GAAP measure for this forward-looking information on research and development. See R&D non comparable tab.

The effective tax rate on a GAAP basis in 2006 was 23.1%, which included specified items of $110 million, and had a 1.3% adverse impact on the effective tax rate in aggregate. On a non-GAAP basis, 2006 effective tax rate was 21.8%. On a non-GAAP basis, based on historical trends in 2006 the Company projects effective tax rate for the full year 2007 to be in line with the 2006 rate. There is no reasonably accessible or reliable comparable GAAP measure for this forward-looking information on the tax rate. See Tax Rate non comparable tab.

The GAAP results for the full year 2007 would include specified items that may occur and impact results. These specified items could include charges and recoveries relating to significant legal proceedings, debt retirement costs and other charges related to new transactions, milestone payments, copromotion or alliance charges and charges for in-process research and development related to new external development transactions, gains or losses from asset disposals and restructuring activities. For a fuller discussion of certain of the litigation and other matters that could impact full year GAAP results, as well as the use of non-GAAP financial information, see Bristol-Myers Squibb Company Reports Financial Results For The Fourth Quarter and Twelve Months of 2006, January 25, 2007, including “2007 Guidance” and “Use of Non-GAAP Financial Information” therein.

BRISTOL-MYERS SQUIBB COMPANY

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

IN THE U.S. WHOLESALER DISTRIBUTION CHANNEL

The following 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 December 31, 2006 and 2005 and September 30, 2006 and 2005.

	December 31, 2006				September 30, 2006			December 31, 2005			September 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)	$	294		0.5	$	260	0.5	$	175	0.6	$	214	0.9
Avapro/Avalide		182		0.5		159	0.4		168	0.6		147	0.5
Baraclude		18		0.7		14	0.6		4	0.7		2	1.2
Cefzil		(5	)	21.7		1	29.2		46	0.7		27	0.7
Coumadin		48		0.8		45	0.7		50	0.8		49	0.6
Erbitux*		165		0.4		173	0.5		121	—		106	—
Glucophage Franchise		16		0.7		20	0.7		29	0.7		38	0.7
Kenalog		24		0.8		19	0.8		23	0.9		19	0.7
Orencia**		31		0.4		34	0.8		—	—		—	—
Paraplatin		6		5.8		5	1.5		5	0.9		9	1.1
Plavix		343		0.6		474	1.5		906	0.6		833	0.4
Pravachol		50		0.6		73	1.0		366	0.6		297	0.5
Reyataz		144		0.7		129	0.5		110	0.5		105	0.6
Sprycel		11		1.4		11	1.2		—	—		—	—
Sustiva Franchise (a) (total revenue)		144		0.7		128	0.5		102	0.6		101	0.6
Tequin		(10	)	—		2	2.3		22	0.9		21	0.9
Videx/Videx EC		2		1.1		3	0.9		7	0.9		7	1.1
Zerit		19		0.9		19	0.7		21	0.8		24	0.8

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

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

* 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 beginning with the quarter ended September 30, 2006.  The Company recognizes revenue upon such shipment consistent with its revenue recognition policy.  The above estimate of months on hand was calculated by dividing the inventories of Erbitux held by the wholesaler for its own account as reported by the wholesaler as of the end of the quarter by the outmovements of the product reported by that wholesaler over the last 31 day period, not 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.

** Orencia was launched in February 2006. From launch through the second quarter, the Company distributed Orencia through an exclusive distribution arrangement with a single distributor. Following approval of the supplemental Biologics License Application (sBLA) that allows a third party to manufacture Orencia at an additional site, that arrangement recently terminated and the Company expanded its distribution network for Orencia to multiple distributors. The above estimates of months on hand were calculated by dividing the inventories of Orencia held by these distributors at the end of the quarter by the outmovement of the product over the last 31 day period, as reported by these distributors. The inventory on hand and outmovements reported by these distributors are a product of the distributors’ 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.

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 November 30, 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 September 30, 2006 and 2005 and June 30, 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.

	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)
International Pharmaceuticals
Abilify (total revenue)	$	53	0.6	$	57	0.6	$	46	0.8	$	40	0.6
Avapro/Avalide		118	0.5		113	0.5		104	0.5		101	0.4
Baraclude		8	0.9		5	1.0		—	—		—	—
Bufferin		28	0.5		31	0.5		31	0.6		32	1.0
Capoten		28	0.8		31	0.9		38	0.9		42	0.8
Dafalgan		35	1.1		37	1.1		34	1.3		33	0.8
Efferalgan		62	0.9		62	0.9		66	1.1		55	0.5
Maxipime		40	0.7		43	0.8		40	0.7		52	0.8
Monopril		34	1.0		48	1.1		48	1.0		52	0.7
Paraplatin		27	0.6		29	0.6		33	0.6		34	0.6
Perfalgan		48	0.6		51	0.6		38	0.7		42	0.6
Plavix		156	0.6		157	0.5		147	0.6		145	0.5
Pravachol		119	0.7		195	1.4		230	0.8		272	0.7
Reyataz		104	1.1		114	0.7		71	0.9		85	0.8
Sustiva		73	0.5		78	0.5		69	0.6		70	0.6
Taxol		135	0.6		145	0.5		171	0.5		182	0.5
Videx/Videx EC		35	1.4		35	1.2		34	0.9		38	0.9
Nutritionals
Enfamil/Enfagrow		315	0.8		312	0.9		284	0.9		299	0.9
Nutramigen		50	1.0		54	1.0		44	1.1		47	1.0
Other Health Care
ConvaTec
Ostomy		139	0.9		141	1.0		139	0.9		139	0.9
Wound Therapeutics		113	0.9		107	0.9		104	0.8		103	0.8
Medical Imaging
Cardiolite		97	0.8		105	0.8		106	0.8		108	0.7

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