IMS Health Delivers 13 Percent Revenue Growth in First Quarter

Posts Strong Results in U.S. and Japan; Revenue, Operating Income,
EPS Exceed Analysts' Consensus
NORWALK, Conn.--(Business Wire)--
IMS Health (NYSE: RX), the world's leading provider of market
intelligence to the pharmaceutical and healthcare industries, today
announced first-quarter 2008 revenue of $574.2 million, up 13 percent
or 6 percent on a constant-dollar basis, compared with revenue of
$510.3 million for the first quarter of 2007. Operating income in the
first quarter of 2008 was $116.4 million, an increase of 5 percent
reported and a decline of 3 percent constant dollar, compared with
$111.1 million in the year-earlier period.

"IMS is off to a very good start in 2008, and we are on track to
achieve our full-year financial objectives," said David R. Carlucci,
IMS chairman and chief executive officer. "We turned in strong
performances in the U.S. and Japan, accelerated growth of our sales
force effectiveness offerings, and drove productivity through our
ongoing restructuring actions."

First-quarter 2008 diluted earnings per share was $0.32 on a GAAP
basis, compared with $0.43 in the prior-year quarter. When adjusted
for the phasing of tax benefits and foreign exchange hedge gains and
losses, earnings per share on a non-GAAP basis for this year's first
quarter would have been $0.37, compared with $0.35 in last year's
first quarter (See Note c to the financial tables).

Net income on a GAAP basis was $59.2 million in the first quarter,
compared with $85.6 million in the year-earlier quarter. When adjusted
for the phasing of tax benefits and foreign exchange hedge gains and
losses, net income on a non-GAAP basis for the 2008 first quarter
would have been $68.2 million, compared with $70.5 million in the
year-earlier quarter (See Note c to the financial tables).

Balance Sheet Highlights

IMS's cash and cash equivalents as of March 31, 2008 totaled
$215.8 million, compared with $218.2 million on December 31, 2007.
Total debt as of March 31, 2008 was $1,567.3 million, up from $1,203.2
million at the end of 2007, due to borrowings in connection with 2008
share repurchases and foreign currency translations.

Share Repurchase Program, Shares Outstanding

During the first quarter, 10 million shares were repurchased at a
total cost of $229.3 million. There remain approximately 10 million
shares available to repurchase under the current Board of Directors'
authorization.

The number of shares outstanding as of March 31, 2008 was
approximately 181.3 million, compared with 191.2 million as of
December 31, 2007.

About IMS

Operating in more than 100 countries, IMS Health is the world's
leading provider of market intelligence to the pharmaceutical and
healthcare industries. With $2.2 billion in 2007 revenue and more than
50 years of industry experience, IMS offers leading-edge market
intelligence products and services that are integral to clients'
day-to-day operations, including portfolio optimization capabilities;
launch and brand management solutions; sales force effectiveness
innovations; managed markets and consumer health offerings; and
consulting and services solutions that improve ROI and the delivery of
quality healthcare worldwide. Additional information is available at
http://www.imshealth.com.

Conference Call and Webcast Details

IMS will host a conference call at 8:00 a.m. ET today to discuss
its first-quarter results. To participate, please dial 1
(800) 926-5230 (U.S. and Canada) or 1 (212) 231-2906 (outside the U.S.
and Canada) approximately 15 minutes before the scheduled start of the
call. The conference call also will be accessible live on the Investor
Relations section of the IMS Website at www.imshealth.com. Prior to
the conference call, a copy of this press release and any other
financial or statistical information presented during the call will be
made available in the "Investors" area of IMS's Website.

A replay of the conference call will be available online on the
"Investors" section of the IMS Website and via telephone by dialing 1
(800) 633-8284 (U.S. and Canada) or 1 (402) 977-9140 (outside the U.S.
and Canada), and entering access code 21380277 beginning at 10:00 a.m.
ET today.

Forward-Looking Statements

This press release includes statements that may constitute
forward-looking statements made pursuant to the safe harbor provisions
of the Private Securities Litigation Reform Act of 1995. Although IMS
Health believes the expectations contained in such forward-looking
statements are reasonable, it can give no assurance that such
expectations will prove correct. This information may involve risks
and uncertainties that could cause actual results of IMS Health to
differ materially from the forward-looking statements. Factors that
could cause or contribute to such differences include, but are not
limited to (i) the risks associated with operating on a global basis,
including fluctuations in the value of foreign currencies relative to
the U.S. dollar, and the ability to successfully hedge such risks,
(ii) regulatory, legislative and enforcement initiatives, particularly
in the areas of data access and utilization and tax, (iii) to the
extent unforeseen cash needs arise, the ability to obtain financing on
favorable terms, (iv) to the extent IMS Health seeks growth through
acquisitions and joint ventures, the ability to identify, consummate
and integrate acquisitions and joint ventures on satisfactory terms,
(v) the ability to develop new or advanced technologies and systems
for its businesses on time and on a cost-effective basis, and (vi)
deterioration in economic conditions, particularly in the
pharmaceutical, healthcare or other industries in which IMS Health's
customers operate. Additional information on factors that may affect
the business and financial results of the company can be found in the
filings of the company made from time to time with the Securities and
Exchange Commission.

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*T
Table 1
IMS Health
GAAP Income Statement
Three Months Ended March 31
(unaudited, in millions except per share)

Non-GAAP
2008 2007 % Fav Constant $
GAAP GAAP (Unfav) Growth %
------------------------------------
Revenue (a) (b)
Sales Force Effectiveness $ 265.6 $ 233.0 14 % 7
Portfolio Optimization 166.3 156.2 6 0
Launch, Brand and Other 142.3 121.1 17 11
-------- --------
Total 574.2 510.3 13 6

Revenue Detail:
---------------------------------
Information & Analytics
("I&A") Revenue 456.2 408.2 12 5
Consulting & Services
("C&S") Revenue 118.0 102.2 15 9
-------- --------
Total Revenue 574.2 510.3 13 6

Operating Expenses (b)
Operating Costs of I&A (193.3) (170.7) (13)
Direct and Incremental Costs of
C&S (68.1) (58.5) (16)
Selling and Administrative (162.7) (139.8) (16)
External-use Software
Amortization (12.7) (11.2) (13)
Depreciation and Other
Amortization (21.0) (19.2) (10)
-------- --------
Total (457.8) (399.3) (15)

Operating Income (a) 116.4 111.1 5 % (3)

Interest expense, net (8.7) (6.8) (28)
Gains (losses) from investments,
net 0.0 (0.2) NM
Other Income (Expense), net (20.8) (2.8) NM
-------- --------
Pretax Income 86.9 101.3 (14)

Provision for Income Taxes (27.7) (15.7) (76)
-------- --------
Net Income 59.2 85.6 (31)

Diluted EPS:
Total Diluted EPS $ 0.32 $ 0.43 (26)

Shares Outstanding:
Weighted Average Diluted 186.3 200.8
End-of-Period Actual 181.3 196.2
Weighted Average Basic 185.0 196.6

The accompanying notes are an integral part of these financial tables.
*T

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*T
Table 2
IMS Health
Selected Consolidated Balance Sheet Items
(unaudited, in millions)

Mar. 31, 2008 Dec. 31, 2007
------------- -------------

Cash and cash equivalents $215.8 $218.2

Accounts receivable, net 488.4 415.9

Total long-term debt 1,567.3 1,203.2

The accompanying notes are an integral part of these financial tables.
*T

IMS Health

NOTES TO FINANCIAL TABLES

a) Reference to Constant Dollar Growth (non-GAAP).
"Constant-dollar growth (non-GAAP)" rates eliminate the impact of
year-over-year foreign currency fluctuations (Table 1). IMS reports
results in U.S. dollars but does business on a global basis. Exchange
rate fluctuations affect the rates at which IMS translates foreign
revenues and expenses into U.S. dollars and have important effects on
results. In order to illustrate these effects, IMS provides the
magnitude of changes in revenues and operating income in constant
dollar terms. IMS uses results at constant-dollar rates for purposes
of global business decision-making, including developing budgets and
managing expenditures. IMS management believes this information, when
read together with U.S. GAAP results, facilitates a comparative view
of business growth. Constant-dollar rates are not prepared under U.S.
GAAP and are not a replacement for the more comprehensive information
for investors included in IMS's U.S. GAAP results. The method IMS uses
to prepare constant-dollar rates differs in significant respects from
U.S. GAAP and is likely to differ from the methods used by other
companies.

b) Revenue and operating expenses in 2007 reflect
reclassifications to make them comparable with the 2008 presentation.

c) Net income and fully diluted EPS for the three months ended
March 31, 2008 included the following notable item:

-- In Other income (expense), net, a $17.3 million foreign
exchange hedge loss, of which $13.8 million ($9.0 million net
of taxes, or $0.05 EPS impact) related to hedging operating
income anticipated to be earned in quarters two through four
of 2008.

-- After adjusting for this item, on a non-GAAP basis, net income
and diluted EPS would have been $68.2 million and $0.37 for
the three months ended March 31, 2008, respectively.

Net income and fully diluted EPS for the three months ended March
31, 2007 included the following notable items:

-- In Provision for income taxes, a $20.9 million tax benefit
arising from the settlement of a foreign tax audit and the
reorganization of certain subsidiaries; $15.6 million ($0.08
EPS impact) was phased into later quarters of 2007, causing
each quarter's effective tax rate to be approximately 31%.

-- In Other income (expense), net, a $1.2 million foreign
exchange hedge loss, of which $0.7 million ($0.5 million net
of taxes, or less than $0.01 EPS impact) related to hedging
operating income anticipated to be earned in quarters two
through four of 2007.

-- After adjusting for these items, on a non-GAAP basis, net
income and diluted EPS would have been $70.5 million and $0.35
for the three months ended March 31, 2007, respectively.

References are made to results after adjusting certain U.S. GAAP
measures to reflect notable items to the extent that management
believes adjusting for these items will facilitate comparisons across
periods and more clearly indicate trends. Certain non-GAAP measures
are those used by management for purposes of global business decision
making, including developing budgets and managing expenditures. Any
such measures presented on a non-GAAP basis are not prepared under a
comprehensive set of accounting rules and are not a replacement for
the more comprehensive information for investors included in IMS's
U.S. GAAP results.

Amounts presented in the financial tables may not add due to
rounding.

These financial tables should be read in conjunction with IMS
Health's filings previously made or to be made with the Securities and
Exchange Commission.

IMS Health
Darcie Peck, 203-845-5237
Investor Relations
dpeck@imshealth.com
or
Gary Gatyas, 610-834-4596
Communications
ggatyas@us.imshealth.com

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