Benefits Changes Ensure Sustainable Retirement Program at 3M

ST. PAUL, Minn.--(Business Wire)--
Changes to 3M's U.S. retirement program will ensure sustainable
and flexible benefits over the long-term, the company told employees
and retirees today.

While pension plans for current retirees and employees will not
change, new plans for 401(k) savings and retiree medical coverage,
which generally become effective next year, address several key
factors driving the need for change, such as the emergence of
tax-efficient savings vehicles and the development of Medicare in the
marketplace. In addition, the new plans account for 3M's aging
workforce and the increasing ratio of retirees as a percent of active
employees.

A new 401(k) savings plan, in which 3M will contribute three
percent of pay to a retirement account and provide a dollar-for-dollar
match on employee contributions of up to six percent of pay, will
replace the pension plan for new hires. The new savings plan also is
portable, which means employees can take the full vested value of
their accounts with them if they leave 3M for any reason, or they may
keep their accounts at 3M. Current employees will receive a 25 cent
increase in the company's matching contributions under its current
401(k) savings plan, which replaces variable quarterly and annual
contributions made by the company.

A revised retiree medical plan ensures that 3M's benefits continue
to be competitive in the changing health care marketplace, where an
increasing number of medical coverage choices are available for
Medicare-eligible retirees. The plan provides flexibility to choose
coverage best suited to retirees' needs. For pre-Medicare-eligible
retirees, the plan offers a new cost-sharing approach to help pay
medical premiums, as well as the choice to participate in a
consumer-directed plan with a tax-effective health savings account.

"We believe the new plans will ensure value and sustain our
program that is consistently ranked among the best," said Jan Angell,
vice president, 3M Compensation and Benefits. "Our new retirement
benefits program also will help us attract and retain talent and
address the needs of today's changing workforce, which desires more
portability and greater involvement in decisions affecting their
financial futures."

About 3M

A recognized leader in research and development, 3M produces
thousands of innovative products for dozens of diverse markets. 3M's
core strength is applying its more than 40 distinct technology
platforms - often in combination - to a wide array of customer needs.
With $24 billion in sales, 3M employs 75,000 people worldwide and has
operations in more than 60 countries. For more information, visit
www.3M.com.

3M
Media Contact:
Jacqueline Berry, 651-733-3611
or
Investor Contacts:
Matt Ginter, 651-733-8206
or
Bruce Jermeland, 651-733-1807

Copyright Business Wire 2008