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): April 26, 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 April 26, 2007, Bristol-Myers Squibb Company (the “Company”) issued a press release announcing its financial results for the first quarter of 2007. 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 April 26, 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.

	BRISTOL-MYERS SQUIBB COMPANY
Dated: April 26, 2007	By:	/s/ Sandra Leung
	Name:	Sandra Leung
	Title:	General Counsel and Secretary

EXHIBIT INDEX

Exhibit No.	Description
99.1	Press release of Bristol-Myers Squibb Company dated April 26, 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 FIRST QUARTER 2007 FINANCIAL RESULTS

• Posts First Quarter 2007 GAAP EPS of $0.35 compared to $0.36 in 2006

• Posts First Quarter 2007 Non-GAAP EPS of $0.38 compared to $0.32 in 2006

• Company Raises 2007 Full-Year GAAP EPS Guidance to $1.24 to $1.34 and Non-GAAP Guidance to $1.30 to $1.40 reflecting strong first quarter performance and a lower forecasted tax rate

(NEW YORK, April 26, 2007) – Bristol-Myers Squibb Company (NYSE:BMY) today reported financial results for the first quarter of 2007 and raised earnings guidance for the full year.

Bristol-Myers Squibb posted first quarter 2007 net sales of $4.5 billion, compared to $4.7 billion for the same period in 2006. The company reported first quarter 2007 net earnings of $690 million, or $0.35 per diluted share, under U.S. Generally Accepted Accounting Principles (GAAP), compared to $714 million, or $0.36 per diluted share for the same period in 2006. The company’s first quarter 2006 results included a $200 million pre-tax gain on the sale of the DOVONEX^® assets. On a non-GAAP basis excluding specified items, first quarter 2007 net earnings were $744 million, or $0.38 per diluted share, compared to $637 million, or $0.32 per diluted share for the same period in 2006. The first quarter 2007 results were driven by growth in demand for several pharmaceutical products, lower than expected operating expenses and a favorable tax rate, including a tax benefit due to a favorable resolution of certain tax matters.

“Our strong first quarter resulted from a combination of factors, including increased demand for several of our pharmaceutical products,” said Jim Cornelius, chief executive officer, Bristol-Myers Squibb. “PLAVIX^® performed better than expected, due to accelerated U.S. prescription growth for the molecule as we continue to recapture market share while remaining generic inventory is depleted. Our first-quarter performance enables us both to reinvest in our key products and raise our full-year earnings guidance by $0.12 and $0.10 on a GAAP and non-GAAP basis, respectively.”

NEW PRODUCT AND PIPELINE DEVELOPMENTS

On April 26, the company and Pfizer Inc (Pfizer) announced a worldwide collaboration to develop and commercialize apixaban, an anticoagulant discovered by the company being studied for the prevention and treatment of a broad range of venous and arterial thrombotic conditions. Terms of the apixaban agreement include an upfront payment of $250 million by Pfizer to the company. Pfizer will fund 60% of all development costs effective January 1, 2007 going forward, and the company will fund 40%. The company may also receive additional payments of up to $750 million based on development and regulatory milestones. The companies will jointly develop the clinical and marketing strategy of apixaban, and will share commercialization expenses and profits/losses equally on a global basis. In a separate agreement, the companies will also collaborate on the research, development and commercialization of Pfizer’s discovery program which includes advanced pre-clinical compounds with potential applications for the treatment of metabolic disorders, including obesity and diabetes. Pfizer will be responsible for all research and early-stage development activities for the metabolic disorders program, and the companies will jointly conduct Phase III development and commercialization activities. The company will make an upfront payment of $50 million to Pfizer as part of this agreement. The companies will share all development and commercialization expenses along with profits/losses on a 60%-40% basis, with Pfizer assuming the larger share of both expenses and profit/losses.

On March 22, the Committee for Medicinal Products for Human Use of the European Medicines Agency granted a positive opinion on the company’s application for ORENCIA^® in Europe for the treatment of rheumatoid arthritis.

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On April 25, the company announced that the U.S. FDA approved an update to the ORENCIA^® product labeling regarding the progression of structural joint damage – an important measure in the treatment of rheumatoid arthritis (RA). The indication was strengthened from “slowing” to “inhibiting” the progression of structural damage in adult patients with moderately to severely active RA who have had an inadequate response to one or more disease-modifying anti-rheumatic drugs, such as methotrexate or tumor necrosis factor antagonists.

On April 18, the U.S. Food and Drug Administration’s (FDA) Cardio-Renal Advisory Committee voted unanimously to recommend approval of a new indication for AVALIDE^®, as initial treatment of hypertension. AVALIDE^®, a fixed-dose combination of irbesartan and hydrochlorothiazide, is currently approved for the treatment of hypertension, for hypertensive patients with blood pressure uncontrolled on monotherapy. If approved, the new indication for AVALIDE^® would be for the first-line treatment of hypertension in patients who are unlikely to obtain their blood pressure goals on monotherapy.

On February 5, Bristol-Myers Squibb and ImClone announced that an application was submitted to the Japanese Pharmaceuticals and Medical Devices Agency for the use of ERBITUX^® in treating patients with advanced colorectal cancer. The Japanese submission was based on results from studies conducted in Europe and Japan which confirm the activity of ERBITUX^® in patients with metastatic colorectal cancer. The filing in Japan is a result of a development collaboration between Bristol-Myers Squibb, ImClone and Merck KGaA of Darmstadt, Germany.

In February, BARACLUDE^® was added to the American Association for the Study of Liver Disease treatment guidelines for hepatitis B as a first-line treatment option. BARACLUDE^® also received approval and/or reimbursement in additional key European markets throughout the first quarter, including Italy.

SPRYCEL^™ received approval and/or reimbursement in additional European markets, including Ireland, Norway, Sweden and Greece during the first quarter, and was also approved in Canada and New Zealand.

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FIRST QUARTER RESULTS

• First quarter 2007 net sales decreased 4% to $4.5 billion compared to the same period in 2006. U.S. net sales decreased 5% to $2.5 billion for the quarter compared to 2006, while international net sales remained constant at $2.0 billion, including a 5% favorable foreign exchange impact.

• Cost of products sold, as a percentage of net sales, decreased to 31.1% in the first quarter of 2007 compared to 31.6% in the same period in 2006. This decrease was due primarily to lower charges for asset impairment and accelerated depreciation in the current year and sales growth of higher margin products, partially offset by $24 million of certain costs, which were reported in marketing, selling and administrative expenses in the same period in 2006.

• Marketing, selling and administrative expenses decreased by 6% to $1.2 billion in the first quarter of 2007 compared to the same period in 2006, including a 2% decrease resulting from the above-mentioned classification in 2006, lower expenses for PRAVACHOL^® and lower U.S. selling expenses.

• Advertising and product promotion spending decreased by 9% to $269 million in the first quarter of 2007 from $295 million in the same period in 2006, driven primarily by lower spending within the pharmaceutical business.

• Research and development expenses increased by 8% to $807 million in the first quarter of 2007 from $750 million in the same period in 2006. This increase primarily reflects higher licensing up-front payments and continued investments in late-stage compounds, partially offset by an alliance partner’s share of codevelopment costs related to saxagliptin and dapagliflozin.

INCOME TAXES

The effective income tax rate on earnings before minority interest and income taxes was 9.4% in the first quarter of 2007 compared to 27.5% in the first quarter of 2006. The first quarter 2007 effective tax rate included $105 million of benefit due to a favorable resolution of certain tax matters, including a $39 million benefit related to a prior year specified item.

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SPECIFIED ITEMS

In the three months ended March 31, 2007 and 2006, the company recorded specified income and expense items that affected the comparability of the results.

The pre-tax specified items before minority interest in 2007 included:

• $80 million in upfront payments

• $53 million of charges primarily related to downsizing and streamlining of worldwide operations and accelerated depreciation

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

The pre-tax specified items in 2006 included:

• $51 million of charges primarily related to asset impairment, accelerated depreciation, and downsizing and streamlining of worldwide operations

• $40 million charge related to commercial litigation matters

• $18 million for an upfront payment

• $200 million gain on the sale of assets related to DOVONEX^®, a product for the treatment for psoriasis

• $21 million income from an insurance recovery related to previously settled litigation matters

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

PHARMACEUTICALS

Worldwide pharmaceutical sales decreased 7%, including a 2% favorable foreign exchange impact, to $3.5 billion in the first quarter of 2007 compared to the same period in 2006.

U.S. pharmaceutical sales decreased 6% to $1.9 billion in the first quarter of 2007 compared to the same period in 2006, largely due to the loss of exclusivity of PRAVACHOL^® and lower sales of PLAVIX^®, partially offset by continued growth of other key products and sales of newer products ORENCIA^® 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 first quarter decreased to less than two and a half weeks.

International pharmaceutical sales decreased 7%, including a 4% favorable foreign exchange impact, to $1.5 billion for the first quarter of 2007 compared to the same period in 2006. The decrease

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was due primarily to a decline in PRAVACHOL^® and TAXOL^® sales resulting from increased generic competition, partially offset by strong sales growth in REYATAZ^®, BARACLUDE^®, ABILIFY^® and SPRYCEL^™. The company’s reported international sales do not include copromotion sales reported by its alliance partner, sanofi-aventis, for PLAVIX^® and AVAPRO^®/AVALIDE^®, which continue to show growth in the first quarter of 2007 compared to the same period in 2006.

Product Sales

• Sales of PLAVIX^®, a platelet aggregation inhibitor that is part of the company’s alliance with sanofi-aventis, decreased 5%, including a 1% favorable foreign exchange impact, to $938 million in the first quarter of 2007 from $986 million in the same period in 2006. Sales of PLAVIX^® decreased 7% in the U.S. in the first quarter of 2007 to $787 million from $850 million in the same period in 2006. This was due to the impact of residual sales of generic clopidogrel bisulfate, partially offset by the replenishment of branded PLAVIX^® inventory in the distribution channels. U.S. PLAVIX^® net sales in the first quarter of 2007 have increased by 129% compared to $343 million in the fourth quarter of 2006 as generic clopidogrel bisulfate inventory in the distribution channels is depleted. The company estimates the adverse effect of the at-risk launch of generic clopidogrel bisulfate to be in the range of $300 million to $350 million for the first quarter of 2007. Estimated total U.S. prescription demand for clopidogrel bisulfate (branded and generic) increased by 18% in the first quarter of 2007 compared to 2006, while estimated total U.S. prescription demand for branded PLAVIX^® decreased by 28% in the same period.

• Sales of AVAPRO^®/AVALIDE^®, an angiotensin II receptor blocker for the treatment of hypertension, also part of the sanofi-aventis alliance, increased 16%, including a 2% favorable foreign exchange impact, to $270 million in the first quarter of 2007 from $233 million in the same period in 2006. U.S. sales increased 17% to $163 million in the first quarter of 2007 from $139 million in the same period in 2006, primarily due to higher average net selling prices compared to the first quarter of 2006. Estimated total U.S. prescription demand decreased approximately 1% compared to 2006. International sales increased 14%, including a 5% favorable foreign exchange impact, to $107 million in the first quarter of 2007 from $94 million in the same period in 2006.

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• Total revenue for ABILIFY^®, an antipsychotic agent for the treatment of schizophrenia, acute bipolar mania and bipolar disorder, increased 29%, including a 2% favorable foreign exchange impact, to $366 million in the first quarter of 2007 from $283 million in the same period in 2006. U.S. sales increased 27% to $293 million in the first quarter 2007 from $231 million in the same period in 2006, primarily due to higher demand and higher average net selling prices. Estimated total U.S. prescription demand increased approximately 14% compared to the same period last year. International sales continued to gain momentum, increasing 40%, including a 10% favorable foreign exchange impact, to $73 million in the first quarter of 2007 from $52 million in the same period in 2006. 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 human immunodeficiency virus (HIV), increased 27%, including a 3% favorable foreign exchange impact, to $263 million in the first quarter of 2007 from $207 million in the same period in 2006. U.S. sales increased 20% to $143 million in the first quarter of 2007 from $119 million in the same period in 2006, primarily due to higher demand. Estimated total U.S. prescription demand increased approximately 17% compared to 2006. International sales increased 36%, including a 7% favorable foreign exchange impact, to $120 million in the first quarter of 2007 from $88 million in the same period in 2006, primarily due to increased demand in Europe, Latin America and Canada.

• Sales of ERBITUX^®, which is sold by the company almost exclusively in the U.S., increased 16% to $160 million in the first quarter of 2007 from $138 million in the same period in 2006, due to increased demand for usage in the treatment of head and neck cancer. ERBITUX^® net sales have decreased by 4% compared to the fourth quarter of 2006 reflecting increased competition in the colorectal cancer market. ERBITUX^® is marketed by the company under a distribution and copromotion agreement with ImClone.

• Total revenue for the SUSTIVA^® Franchise, a non-nucleoside reverse transcriptase inhibitor for the treatment of HIV, increased 29%, including a 4% favorable foreign exchange impact, to $226 million in the first quarter of 2007 from $175 million in the same period in 2006. Estimated total U.S. prescription growth increased approximately 25% compared to 2006. 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.

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• Sales of BARACLUDE^®, an oral antiviral agent for the treatment of chronic hepatitis B, increased to $45 million in the first quarter of 2007 from $11 million in the same period in 2006, as the product becomes commercialized in international markets and continues to grow in the U.S.

• Sales of ORENCIA^®, a fusion protein indicated for adult patients with moderate to severe rheumatoid arthritis, increased to $41 million in the first quarter of 2007 from $5 million in the same period in 2006. ORENCIA^® was launched in the U.S. in February 2006 and Canada in August 2006.

• Sales for SPRYCEL^™, an oral inhibitor of multiple tyrosine kinases, were $21 million in the first quarter of 2007, compared to $14 million in fourth quarter of 2006. SPRYCEL^™ was launched in the U.S. in July 2006 and in certain European markets beginning in the fourth quarter of 2006.

• Sales of PRAVACHOL^®, an HMG Co-A reductase inhibitor, decreased 75%, including a 1% favorable foreign exchange impact, to $135 million in the first quarter of 2007 from $536 million in the same period in 2006, 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 24%, including a 1% favorable foreign exchange impact to $111 million in the first quarter of 2007 from $147 million in the same period in 2006, primarily due to increased generic competition in Europe and generic entry in Japan during the third quarter of 2006.

HEALTH CARE GROUP

The combined first quarter 2007 revenues from the Health Care Group increased 4% to $1.0 billion compared to the same period in 2006.

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Nutritionals

• Worldwide Nutritional sales increased 7%, including a 2% favorable foreign exchange impact, to $606 million in the first quarter of 2007 from $565 million in the same period in 2006. U.S. Nutritional sales increased 11% to $274 million in the first quarter of 2007, primarily due to increased sales of ENFAMIL^®, the company’s best-selling infant formula. International Nutritional sales increased 4% to $332 million in the first quarter of 2007, including a 3% favorable foreign exchange impact.

Other Health Care

• Worldwide ConvaTec sales increased 10%, including a 5% favorable foreign exchange impact, to $254 million in the first quarter of 2007 from $230 million in the same period in 2006. Sales of wound therapeutic products increased 9%, including a 5% favorable foreign exchange impact, to $107 million in the first quarter of 2007 from $98 million in the same period in 2006, primarily due to continued growth of AQUACEL^®.

• Worldwide Medical Imaging sales decreased 12% to $159 million in the first quarter of 2007 from $181 million in the same period in 2006, primarily due to higher sales in 2006 for Technetium Tc99m Generators and a 4% decrease for CARDIOLITE^® primarily due to lower U.S. average selling prices.

2007 GUIDANCE

Bristol-Myers Squibb raises its 2007 earnings guidance for fully-diluted earnings per share from continuing operations on a GAAP basis to be between $1.24 and $1.34 from the previous guidance of $1.12 to $1.22.

The company also raises its 2007 fully-diluted earnings per share guidance on a non-GAAP basis to be between $1.30 and $1.40 from the previous guidance of $1.20 to $1.30, reflecting strong first quarter performance and a lower forecasted tax rate. The non-GAAP guidance 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.

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The company expects generic clopidogrel bisulfate that was sold into distribution channels following the Apotex at-risk launch in August 2006 will continue to have a declining residual impact on PLAVIX^® net sales and the company’s overall financial results at least through the second quarter of 2007. While the company cannot estimate with certainty the full amount and duration of the impact, the potential variability around the estimate of the impact has been factored into the company’s 2007 guidance range, assuming the absence of renewed or additional generic competition.

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 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.

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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 testimony ended on February 15, 2007 and the parties are awaiting the court’s decision. 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 its alliance partner, sanofi-aventis, is vigorously pursuing these cases.

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 (DOJ) is conducting a criminal investigation into the proposed settlement and the company has received a Civil Investigative Demand by the Federal Trade Commission (FTC) requesting documents related to the proposed settlement. In addition, on April 13, 2007, the company received a subpoena from the New York State Attorney General’s Office – Antitrust Bureau for documents relating to the proposed PLAVIX^® settlement. The company is cooperating fully with the investigations. It is not possible at this time reasonably to assess the outcome of the investigations or its impact on the company. It is also not possible at this time reasonably to assess the impact of the investigations, 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.

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As previously disclosed, in December 2006, the company, the 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, which is fully reserved. 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 finalized.

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 21. Legal Proceedings and Contingencies,” and “Management’s Discussion and Analysis – SEC Consent Order and Deferred Prosecution Agreement” in the company’s Form 10-K Annual Report for the fiscal year ended December 31, 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. 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, a non-GAAP earnings per share information is an indication of the company’s baseline performance before items that are considered by the company to be not reflective of the company’s 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.

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Statement on Cautionary Factors

This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 regarding, among other things, statements relating to goals, plans and projections regarding the company’s financial position, results of operations, market position, product development and business strategy. These statements may be identified by the fact that they use words such as “anticipate”, “estimates”, “should”, “expect”, “guidance”, “project”, “intend”, “plan”, “believe” and other words and terms of similar meaning in connection with any discussion of future operating or financial performance. Such forward-looking statements are based on current expectations and involve inherent risks and uncertainties, including factors that could delay, divert or change any of them, and could cause actual outcomes and results to differ materially from current expectations. These factors include, among other things, market factors, 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, the civil investigation conducted by the Federal Trade Commission, or the investigation conducted by the New York State Attorney General’s Office 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 April 26, 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.

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

# # #

ABILIFY^® is the trademark of Otsuka Pharmaceutical Co., Ltd.

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

ERBITUX^® is a trademark of ImClone Systems Incorporated

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

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BRISTOL-MYERS SQUIBB COMPANY

NET SALES BY OPERATING SEGMENTS

FOR THE THREE MONTHS ENDED MARCH 31, 2007 AND 2006

(Unaudited, dollars in millions)

	Three Months Ended March 31,
	2007		2006
Pharmaceuticals	$	3,457	$	3,700
Nutritionals		606		565
Other Health Care		413		411
Health Care Group		1,019		976
Net Sales	$	4,476	$	4,676

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BRISTOL-MYERS SQUIBB COMPANY

SELECTED PRODUCTS

FOR THE THREE MONTHS ENDED MARCH 31, 2007 AND 2006

(Unaudited, dollars in millions except prescription data)

The following table set forth worldwide and U.S. reported net sales for selected products for the three months ended March 31, 2007 compared to the three months ended March 31, 2006. In addition, the table includes, where applicable, the estimated total U.S. prescription change for the retail and mail-order channels for the comparative periods presented for certain of the company’s U.S. pharmaceutical products 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 March 31,
	Worldwide Net Sales					U.S. Net Sales
	2007	2006		% Change		2007		2006		% Change		% Change in U.S. Total Prescriptions vs. 2006
Pharmaceuticals
Cardiovascular
Plavix	938	$	986	(5	)%	$	787	$	850	(7	)%	(28	)%
Pravachol	135		536	(75	)%		57		302	(81	)%	(86	)%
Avapro/Avalide	270		233	16	%		163		139	17	%	(1	)%
Coumadin	46		55	(16	)%		38		47	(19	)%	(17	)%
Virology
Reyataz	263		207	27	%		143		119	20	%	17	%
Sustiva Franchise (total revenue)	226		175	29	%		144		108	33	%	25	%
Baraclude	45		11		**		17		9	89	%	127	%
Oncology
Erbitux	160		138	16	%		158		136	16	%	N/A
Taxol	111		147	(24	)%		4		4	—		N/A
Sprycel	21		—	—			10		—	—		N/A
Affective (Psychiatric) Disorders
Abilify (total revenue)	366		283	29	%		293		231	27	%	14	%
Immunoscience
Orencia	41		5		**		40		5		**	N/A
Other Pharmaceuticals
Efferalgan	81		68	19	%		—		—	—		N/A
Nutritionals
Enfamil	254		237	7	%		171		155	10	%	N/A
Enfagrow	72		67	7	%		—		—	—		N/A
Other Health Care
Ostomy	130		123	6	%		34		34	—		N/A
Wound Therapeutics	107		98	9	%		32		30	7	%	N/A
Cardiolite	99		103	(4	)%		87		91	(4	)%	N/A

** Change is in excess of 200%

16

BRISTOL-MYERS SQUIBB COMPANY

CONSOLIDATED STATEMENT OF EARNINGS

FOR THE THREE MONTHS ENDED MARCH 31, 2007 AND 2006

(Unaudited, dollars in millions except per share data)

	Three Months Ended March 31,
	2007			2006
Net Sales	$	4,476		$	4,676
Cost of products sold		1,392			1,476
Marketing, selling and administrative		1,158			1,238
Advertising and product promotion		269			295
Research and development		807			750
Provision for restructuring, net		37			1
Litigation income, net		—			(21	)
Gain on sale of product asset		—			(200	)
Equity in net income of affiliates		(126	)		(93	)
Other expense, net (a)		22			37
		3,559			3,483
Earnings Before Minority Interest and Income Taxes		917			1,193
Provision for income taxes		86			328
Minority interest, net of taxes		141			151
Net Earnings	$	690		$	714
Earnings per Common Share:
Basic	$	0.35		$	0.36
Diluted	$	0.35		$	0.36
Average Common Shares Outstanding:
Basic		1,962			1,957
Diluted		1,997			1,988
(a) Other expense, net
Interest expense	$	109		$	116
Interest income		(53	)		(62	)
Foreign exchange transaction losses/(gains)		8			(12	)
Other, net		(42	)		(5	)
	$	22		$	37

17

APPENDIX 1

BRISTOL-MYERS SQUIBB COMPANY

SPECIFIED ITEMS

FOR THE THREE MONTHS ENDED MARCH 31, 2007 AND 2006

(Unaudited, dollars in millions)

Three months ended March 31, 2007

	Cost of products sold		Research and development		Provision for restructuring, net		Total
Upfront payments	$	—	$	80	$	—	$	80
Downsizing and streamlining of worldwide operations		—		—		37		37
Accelerated depreciation		16		—		—		16
	$	16	$	80	$	37		133
Income taxes on items above								(40	)
Change in estimate for taxes on a prior year specified item								(39	)
Reduction to Net Earnings							$	54

Three months ended March 31, 2006

	Cost of products sold		Research and development		Marketing, selling and admin		Provision for restructuring, net		Litigation settlement income			Other expense, net		Gain on sale of product asset			Total
Litigation Matters:
Insurance recovery	$	—	$	—	$	—	$	—	$	(21	)	$	—	$	—		$	(21	)
Commercial litigations		—		—		—		—		—			40		—			40
		—		—		—		—		(21	)		40		—			19
Other:
Accelerated depreciation and asset impairment		46		—		4		—		—			—		—			50
Upfront payments		—		18		—		—		—			—		—			18
Downsizing and streamlining of worldwide operations		—		—		—		1		—			—		—			1
Gain on sale of product asset		—		—		—		—		—			—		(200	)		(200	)
	$	46	$	18	$	4	$	1	$	(21	)	$	40	$	(200	)		(112	)
Income taxes on items above																		48
Minority interest, net of taxes																		(13	)
Increase to Net Earnings																	$	(77	)

18

EX-99.2

Exhibit 99.2

BRISTOL-MYERS SQUIBB COMPANY

NET SALES

QUARTERLY SALES TREND ANALYSIS

($ in millions)

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

* In Excess of +/- 200%

BRISTOL-MYERS SQUIBB COMPANY

SEGMENT SALES AND COMPOSITION OF CHANGE IN SALES FOR TOTAL COMPANY

FOR THE PERIOD ENDED MARCH 31, 2007

($ in millions)

YEAR-TO-DATE

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

BRISTOL-MYERS SQUIBB COMPANY

CONSOLIDATED STATEMENT OF EARNINGS

($ in millions, except per share amounts)

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

* in excess of +/- 200%

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

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

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

BRISTOL-MYERS SQUIBB COMPANY

WORLDWIDE NET SALES BY PRODUCT

QUARTERLY SALES TREND ANALYSIS

($ in millions)

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

* In excess of +/- 200%

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

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

BRISTOL-MYERS SQUIBB COMPANY

DOMESTIC* NET SALES BY PRODUCT

QUARTERLY SALES TREND ANALYSIS

($ in millions)

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

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

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

*** In excess of +/- 200%

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

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

BRISTOL-MYERS SQUIBB COMPANY

INTERNATIONAL* NET SALES BY PRODUCT

QUARTERLY SALES TREND ANALYSIS

($ in millions)

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

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

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

*** In excess of +/- 200%

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

BRISTOL-MYERS SQUIBB COMPANY

U.S. PHARMACEUTICALS NET SALES

EXCLUDING ESTIMATED IMPACT OF LAUNCH OF GENERIC CLOPIDOGREL BISULFATE

($ in millions)

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

BRISTOL-MYERS SQUIBB COMPANY

GROSS MARGIN

EXCLUDING SPECIFIED ITEMS

($ in millions)

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

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

BRISTOL-MYERS SQUIBB COMPANY

RESEARCH AND DEVELOPMENT EXPENSES

EXCLUDING SPECIFIED ITEMS

($ in millions)

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

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

BRISTOL-MYERS SQUIBB COMPANY

EFFECTIVE TAX RATE

EXCLUDING SPECIFIED ITEMS

($ in millions)

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

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

BRISTOL-MYERS SQUIBB COMPANY

EARNINGS BEFORE MINORITY INTEREST AND INCOME TAXES

EXCLUDING SPECIFIED ITEMS

($ in millions)

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

BRISTOL-MYERS SQUIBB COMPANY

DILUTED EARNINGS PER COMMON SHARE

EXCLUDING SPECIFIED ITEMS

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

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

BRISTOL-MYERS SQUIBB COMPANY

SPECIFIED ITEMS

FOR THE THREE MONTHS ENDED MARCH 31, 2007 AND 2006

($ in millions)

Three months ended March 31, 2007

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

BRISTOL-MYERS SQUIBB COMPANY

SELECT BALANCE SHEET INFORMATION

($ in millions)

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

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

BRISTOL-MYERS SQUIBB COMPANY

2007 FULL YEAR PROJECTED DILUTED EPS

EXCLUDING PROJECTED SPECIFIED ITEMS

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

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

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

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

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

The GAAP results for the full year 2007 would include specified items that may occur and impact results. These specified items could include charges and recoveries relating to significant legal proceedings, debt retirement costs and other charges related to new transactions, upfront and milestone payments, copromotion or alliance charges and charges for in-process research and development related to new external development transactions, gains or losses from asset disposals, restructuring activities and significant tax events. For a fuller discussion of certain of the litigation and other matters that could impact full year GAAP results, as well as the use of non-GAAP financial information, see Bristol-Myers Squibb Company Reports Financial Results For The First Quarter of 2007, April 26, 2007, including “2007 Guidance” and “Use of Non-GAAP Financial Information” therein.

BRISTOL-MYERS SQUIBB COMPANY

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

IN THE U.S. WHOLESALER DISTRIBUTION CHANNEL

The following tables sets forth, for each of the Company’s top 15 pharmaceutical products (based on 2006 annual net sales) sold by the Company’s U.S. Pharmaceuticals business, the U.S. Pharmaceuticals net sales and the estimated number of months on hand of the applicable product in the U.S. wholesaler distribution channel for the quarters ended March 31, 2007 and 2006 and December 31, 2006 and 2005.

	March 31, 2007			December 31, 2006			March 31, 2006			December 31, 2005
	Net Sales		Months on Hand	Net Sales		Months on Hand	Net Sales		Months on Hand	Net Sales		Months on Hand
	(Dollars in Millions)			(Dollars in Millions)			(Dollars in Millions)			(Dollars in Millions)
Abilify (total revenue)	$	293	0.4	$	294	0.5	$	231	0.5	$	175	0.6
Avapro/Avalide		163	0.4		182	0.5		139	0.4		168	0.6
Baraclude		17	0.6		18	0.7		9	1.0		4	0.7
Coumadin		38	0.7		48	0.8		47	0.6		50	0.8
Erbitux (a)		158	0.3		165	0.4		136	—		121	—
Glucophage Franchise		21	0.6		16	0.7		25	0.7		29	0.7
Kenalog		18	0.5		24	0.8		23	0.7		23	0.9
Orencia (b)		40	0.3		31	0.4		5	0.9		—	—
Paraplatin		5	13.8		6	5.8		7	1.2		5	0.9
Plavix		787	0.6		343	0.6		850	0.4		906	0.6
Pravachol		57	0.6		50	0.6		302	0.4		366	0.6
Reyataz		143	0.7		144	0.7		119	0.6		110	0.5
Sprycel		10	0.7		11	1.4		—	—		—	—
Sustiva Franchise (c) (total revenue)		144	0.7		144	0.7		108	0.5		102	0.6
Zerit		12	0.6		19	0.9		19	0.7		21	0.8

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

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

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

(b) Orencia was launched in February 2006. From launch through the second quarter, the Company distributed Orencia through an exclusive distribution arrangement with a single distributor. Following approval of the supplemental Biologics License Application (sBLA) that allows a third party to manufacture Orencia at an additional site, the exclusive distribution arrangement terminated on July 17, 2006 and the Company expanded its distribution network for ORENCIA to multiple distributors. The above estimates of months on hand was calculated by dividing the inventories of Orencia held by these distributors at the end of the quarter by the out-movement of the product over the last 31 day period, as reported by these distributors. The inventory on hand and out-movements reported by these distributors are a product of the distributors’ own record-keeping process.

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