Bristol-Myers Squibb Continues Excellent Financial Performance Led By Double-Digit...

Bristol-Myers Squibb Continues Excellent Financial Performance Led By Double-Digit Global Net Sales Growth and Strong Earnings Results

NEW YORK--(Business Wire)--
Bristol-Myers Squibb Company (NYSE:BMY):

-- Reports Broad-Based Net Sales Growth of 14% from Continuing
Operations

-- Records Growth in GAAP Diluted EPS of $1.29 Compared to $0.43
in 2007; Includes After-Tax Gain of $0.99 Per Share From Sale
of ConvaTec

-- Posts 2008 GAAP Diluted EPS from Continuing Operations of
$0.30 Compared to $0.38 in 2007

-- Posts Non-GAAP Diluted EPS Growth from Continuing Operations
of $0.46 Compared to $0.33 in 2007

-- Raises 2008 GAAP EPS Guidance to $1.61 to $1.66, Subject to
Receipt of Cash for ImClone Shares, and Refines 2008 Non-GAAP
EPS Guidance to $1.65 to $1.70, Representing Upper Range of
Previous Guidance

-- Strengthens Cash Position to $7.2 Billion From $4.0 Billion on
June 30, 2008

Consistent with recent performance, Bristol-Myers Squibb Company
(NYSE:BMY) today reported strong sales growth and earnings performance
for the third quarter 2008.

"Bristol-Myers Squibb continues to deliver excellent operating
results. With double-digit sales growth in the third quarter and with
strong financial results for the first nine months of 2008, we are
refining our 2008 non-GAAP earnings-per-share guidance to between
$1.65 to $1.70, which is the upper range of our prior guidance," said
James M. Cornelius, chairman and chief executive officer.

"Our recent success gives us confidence that our BioPharma
strategy is the right one to help us fulfill our commitments to
patients and shareholders," Cornelius added. "As we continue to
demonstrate strong performance in the marketplace, we're moving
forward to attain our goals, both commercially and with the
advancement of our new product pipeline. The strength of our balance
sheet and cash position enables us to execute our strategy, including
our ongoing business development activity."

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----------------------------------------------------------------------

Third Quarter 2008
----------------------------------------------------------------------

2008 2007 Change
------ ------ ------
Net Sales $5,254 $4,601 14%
Net Earnings $2,578 $ 858 200%
Net Earnings From Continuing Operations $ 588 $ 753 (22%)

Net Earnings Per Common Share 1.29 0.43 200%
GAAP Diluted EPS From Continuing Operations 0.30 0.38 (21%)
Non-GAAP Diluted EPS From Continuing
Operations 0.46 0.33 39%
($ amounts in millions, except per share
amounts)

----------------------------------------------------------------------

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THIRD QUARTER RESULTS

-- Bristol-Myers Squibb posted third quarter 2008 net sales from
continuing operations of $5.3 billion, an increase of 14%,
including a 3% favorable foreign exchange impact, compared to
the same period in 2007. Pharmaceutical net sales totaled $4.5
billion and sales of Nutritionals totaled $744 million in the
third quarter of 2008, representing increases of 15% and 10%,
respectively, compared to 2007.

-- U.S. pharmaceutical net sales increased 18% to $2.7 billion in
the third quarter of 2008 compared to the same period in 2007,
primarily due to strong performance from PLAVIX(R) and
ABILIFY(R), and strong results from the HIV and hepatitis
portfolio as well as ORENCIA(R).

-- International pharmaceutical net sales increased 11%,
including a 7% favorable foreign exchange impact, to $1.8
billion in the third quarter of 2008 compared to the same
period in 2007. The increase was primarily due to the strong
performance of BARACLUDE(R), ABILIFY(R), SPRYCEL(TM) and the
HIV portfolio.

-- Gross profit as a percentage of net sales improved to 68.9% in
the third quarter 2008 compared to 67.9% in 2007. This
increase of 1.0% was driven by favorable product mix, cost
improvement from productivity initiatives and favorable
foreign exchange, partially offset by higher manufacturing
rationalization charges in 2008, which accounted for a 0.7%
decrease.

-- Marketing, selling and administrative expenses increased by
9%, including an unfavorable 3% foreign exchange impact, to
$1.2 billion in the third quarter of 2008 compared to the same
period in 2007.

-- Advertising and product promotion spending increased by 7%,
including an unfavorable 2% foreign exchange impact, to $362
million in the third quarter of 2008 compared to the same
period in 2007.

-- Research and development expenses increased 4%, including an
unfavorable 1% foreign exchange impact, to $834 million in the
third quarter of 2008 compared to the same period in 2007.

-- The effective tax rate on earnings from continuing operations
before minority interest and income taxes was 26.7% for the
third quarter of 2008, compared with 23.2% in the third
quarter of 2007. The company expects the full year 2008
non-GAAP effective tax rate from continuing operations to be
in line with the previously issued guidance of approximately
24%.

-- The company reported third quarter net earnings of $2.6
billion or $1.29 per diluted share, compared to net earnings
of $858 million or $0.43 per diluted share for the same period
in 2007. The third quarter 2008 net earnings includes a $2.0
billion after-tax gain, or $0.99 per share, attributed to the
sale of the company's ConvaTec business which is recorded in
discontinued operations. In addition, the third quarter of
2008 and 2007 net earnings include the impact of specified
items as discussed under "Use of Non-GAAP Financial
Information."

-- The company reported earnings from continuing operations of
$588 million or $0.30 per diluted share which represented a
21% decrease from prior year primarily due to the impact of
specified items.

-- Non-GAAP earnings from continuing operations excluding
specified items amounted to $910 million, or $0.46 per diluted
share, which represents a 39% increase from the prior year.
This increase is driven by higher sales growth, improved gross
margins and execution of cost-containment measures.

SELECTED BALANCE SHEET AND CASH UPDATES

-- The company's financial condition improved significantly
during the quarter as a result of $1.4 billion of cash
generated from operating activities as well as $4.1 billion in
proceeds from the sale of ConvaTec. Cash and cash equivalents
were $7.2 billion as of September 30, 2008 of which a
significant majority was invested in U.S. Treasury Bills and
Treasury-backed securities, consistent with the more
conservative approach the company announced it would take
earlier in 2008.

-- Net debt, which is defined as short-term borrowings and
long-term debt less cash and cash equivalents and marketable
securities, was reduced by $4.6 billion to a net cash position
of $1.2 billion.

-- An impairment charge of $224 million, $184 million net of tax,
related to certain auction rate securities (ARS) was
recognized during the three months ended September 30, 2008.
The charge was required after an analysis of
other-than-temporary impairment factors, including the
severity of decline in the securities and current financial
market conditions. The carrying value of the $811 million of
principal invested in ARS as of December 31, 2007 has been
reduced to a remaining amount of $213 million as of September
30, 2008.

BUSINESS DEVELOPMENT UPDATE

Eli Lilly commenced a tender offer to acquire ImClone on October
14, 2008. Based on Bristol-Myers Squibb's ownership of 14.4 million
shares of ImClone, the company expects to receive approximately $1.0
billion in cash upon the closing of the transaction. Bristol-Myers
Squibb continues to have long-term marketing rights to ERBITUX in the
U.S. and Canada and believes it has rights to ImClone's
investigational compound IMC-11F8.

The company is executing on its strategic priorities for its
healthcare group. On August 1, the company announced that it had
completed the divestiture of the ConvaTec business unit to Nordic
Capital Fund VII and Avista Capital Partners. On September 25, the
company announced that Mead Johnson Nutrition Company had filed a
registration statement with the U.S. Securities and Exchange
Commission for an initial public offering of its Class A common stock.

Bristol-Myers Squibb is focusing on supplementing its internal
research and development portfolio with strategic partnerships and
acquisitions. In August, the company announced a global alliance with
PDL BioPharma to develop and commercialize elotuzumab, an anti-CS1
antibody currently in Phase I development for multiple myeloma.

NEW PRODUCT PIPELINE UPDATE

Bristol-Myers Squibb and its partner AstraZeneca announced on July
23 that the regulatory submissions for ONGLYZA (saxagliptin) were made
in both the United States and in Europe on June 30 and July 1,
respectively. On September 2, the U.S. Food and Drug Administration
(FDA) announced it had accepted the filing.

The following regulatory and data milestones occurred in the third
quarter or in October:

-- On October 1, the FDA approved the use of REYATAZ(R)
(atazanavir sulfate) 300 milligram once-daily boosted with
ritonavir 100 milligram as part of combination therapy in
previously untreated (treatment-naive) HIV-1 infected
patients. This use of once-daily REYATAZ/ritonavir in HIV-1
infected treatment-naive adult patients is based upon 48-week
results from the CASTLE study, which demonstrated similar
antiviral efficacy of REYATAZ/ritonavir to twice-daily
lopinavir/ritonavir, each as part of HIV combination therapy
in treatment-naive HIV-1 infected adult patients. Data from
the CASTLE study were published in the August 23 issue of The
Lancet.

-- Bristol-Myers Squibb and its development partner Pfizer
announced in August that the primary endpoint was not met in a
Phase III study of apixaban - a novel anticoagulant - for
prevention of venous thromboembolism (VTE) in patients
undergoing total knee replacement. The rate of the primary
efficacy endpoint on apixaban was numerically similar to that
observed with enoxaparin, but did not meet the pre-specified
statistical criteria for non-inferiority compared to
enoxaparin. The results of the trial do not necessitate any
changes in protocols of any other ongoing apixaban studies.
The companies are considering further studies in preventing
VTE in knee surgery and will not submit the U.S. filing for
VTE prevention in the second half of 2009, as had been
previously communicated. Programs directed toward prevention
of VTE including EMEA registrational studies, treatment of
VTE, and in the prevention of stroke in atrial fibrillation
continue as planned.

-- A Phase II study of apixaban (APPRAISE-1) provided encouraging
trends suggesting that anticoagulation with apixaban on top of
current standards of care and continued beyond the initial
hospitalization for acute coronary syndrome may reduce the
risk of a second heart attack, stroke or death.

-- The company and its development partner AstraZeneca announced
results of phase III studies of ONGLYZA(TM) (saxagliptin), a
potential treatment for type 2 diabetes, in September at the
European Association for the Study of Diabetes. Data showed
ONGLYZA, used in combination with metformin as initial
therapy, when added to a sulfonylurea or thiazolidinedione in
patients with inadequately controlled type 2 diabetes
significantly lowered A1C and demonstrated significant
improvements across key measures of glucose control.

-- Bristol-Myers Squibb and its development partner ImClone
Systems announced ERBITUX(R) five-year data showing
significant improvement in overall survival for patients with
locally or regionally advanced head and neck cancer. In the
September 10 issue of the New England Journal of Medicine, the
EXTREME study was published and it showed that ERBITUX
improved survival in first-line recurrent and/or metastatic
head and neck cancer.

-- Bristol-Myers Squibb and its development partner Medarex, Inc.
announced in September updated survival data from three phase
2 studies of ipilimumab in patients with advanced metastatic
melanoma (state III or IV) who had been previously treated.
Study results showed that approximately half of patients who
received ipilimumab (10 mg/kg) remained alive beyond one year.

2008 GUIDANCE

Bristol-Myers Squibb is raising its 2008 earnings guidance for
fully diluted earnings per share from continuing operations on a GAAP
basis to between $1.61 and $1.66, reflecting an estimated $900 million
pre-tax gain ($0.29 per share after tax) from Eli Lilly's acceptance
of the company's tender of its ImClone shares. If the company does not
receive such cash from the tender, the company expects to lower 2008
guidance on a GAAP basis to between $1.32 to $1.37 per share. The
company is also refining its 2008 fully diluted earnings per share
from continuing operations guidance on a non-GAAP basis to be between
$1.65 and $1.70, which is the upper end of its previous guidance. The
non-GAAP guidance excludes specified items as discussed under "Use of
Non-GAAP Financial Information." Details reconciling the GAAP and
non-GAAP bases are provided in supplemental materials available on the
company's website.

The company reaffirms guidance that it expects non-GAAP earnings
per share from continuing operations to grow at a minimum of 15
percent compounded annual growth rate, from the 2007 base through 2010
without rebasing for the agreement to sell the ConvaTec business,
excluding costs associated with the Productivity Transformation
Initiative and other specified items that have not yet been identified
and quantified.

The non-GAAP 2008 guidance and the three-year compound annual
growth rate exclude other specified items such as gains or losses from
sale of businesses and product lines; from sale of equity investments
and from discontinuations of operations; restructuring and other exit
costs; accelerated depreciation charges; asset impairments; charges
and recoveries relating to significant legal proceedings; upfront and
milestone payments for licensing arrangements; payments for in-process
research and development; debt retirement costs; impairments to
investments; and significant tax events.

The financial guidance for 2008 and the three-year compound annual
growth rate exclude the impact of any potential strategic acquisitions
and divestitures and further assume that the company and its product
partner, sanofi-aventis, maintain U.S. exclusivity for the PLAVIX(R)
patent through at least 2010.

Use of Non-GAAP Financial Information

This press release contains non-GAAP financial measures, including
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 measures but excluded for purposes of
determining adjusted earnings and other adjusted measures are: charges
related to implementation of the Productivity Transformation
Initiative and the company's strategy for Mead Johnson Nutritionals;
gains or losses from sale and leaseback of properties and from
discontinuations of operations; restructuring and other exit costs;
accelerated depreciation charges; asset impairments; charges relating
to significant legal proceedings; upfront and milestone payments for
in-licensing of products that have not achieved regulatory approval
that are immediately expensed; payments for in-process research and
development; impairments to investments; 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, non-GAAP earnings and 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 net earnings or diluted earnings
per share prepared in accordance with GAAP.

Statement on Cautionary Factors

This press release contains certain forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of
1995 regarding, among other things, statements relating to goals,
plans and projections regarding the company's financial position,
results of operations, market position, product development and
business strategy. These statements may be identified by the fact that
they use words such as "anticipate", "estimates", "should", "expect",
"guidance", "project", "intend", "plan", "believe" and other words and
terms of similar meaning in connection with any discussion of future
operating or financial performance. Such forward-looking statements
are based on current expectations and involve inherent risks and
uncertainties, including factors that could delay, divert or change
any of them, and could cause actual outcomes and results to differ
materially from current expectations. These factors include, among
other things, market factors (including whether uncertainties in the
credit and capital markets or a further deterioration of these markets
will lead to future impairments to the company's investment
portfolio), competitive product development and approvals, 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, variability in
data provided by third parties, changes in, and interpretation of,
governmental regulations and legislation affecting domestic or foreign
operations, including tax obligations, difficulties and delays in
product development, manufacturing or sales, patent positions and the
ultimate outcome of any litigation matter, including whether Apotex
will prevail in its appeal of the District court's decision in the
PLAVIX(R) patent litigation. These factors also include the company's
ability to execute successfully its strategic plans, including its
Productivity Transformation Initiative, the expiration of patents or
data protection on certain products (including the expiration of data
protection for PLAVIX(R) in the European Union), 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 the
annual report on Form 10-K, quarterly reports on Form 10-Q and current
reports on Form 8-K, filed with or furnished to 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.

Statement on Mead Johnson Nutrition Company Registration Statement

A registration statement relating to the securities of Mead
Johnson Nutrition Company has been filed with the U.S. Securities and
Exchange Commission but has not yet become effective. These securities
may not be sold nor may offers to buy these securities be accepted
before the time the registration statement becomes effective. This
press release shall not constitute an offer to sell or a solicitation
of an offer to buy, nor shall there be any sale of these securities in
any state or jurisdiction in which such an offer, solicitation or sale
would be unlawful prior to registration or qualification under the
securities laws of any such state or jurisdiction.

Company and Conference Call Information

Bristol-Myers Squibb is a global biopharmaceutical and company
whose mission is to extend and enhance human life.

There will be a conference call on October 23, 2008 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 web cast of the call at www.bms.com/ir or by
dialing 913-312-9330, confirmation code 7242577. Materials related to
the call will be available at the same website prior to the call.

For more information, contact: Brian Henry, 609-252-3337,
Communications, Tracy Furey, 609-252-3208, Communications, John
Elicker, 212-546-3775, Investor Relations, or Suketu Desai,
609-252-5796, Investor Relations.

ABILIFY(R) is the trademark of Otsuka Pharmaceutical Co., Ltd.

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

AVAPRO(R), AVALIDE(R) and PLAVIX(R) are trademarks of
sanofi-aventis

ERBITUX(R) is a trademark of ImClone Systems Incorporated

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BRISTOL-MYERS SQUIBB COMPANY
NET SALES BY OPERATING SEGMENTS
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2008 AND 2007
(Unaudited, dollars in millions)

Three Months Nine Months
Ended September 30, Ended September 30,
---------------------------------------
2008 2007 2008 2007
-------- -------- --------- ---------

Pharmaceuticals $ 4,510 $ 3,926 $ 13,173 $ 11,234

Nutritionals 744 675 2,175 1,901
---------------------------------------

Net Sales $ 5,254 $ 4,601 $ 15,348 $ 13,135
=======================================
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BRISTOL-MYERS SQUIBB COMPANY
SELECTED PRODUCTS
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2008 AND 2007
(Unaudited, dollars in millions)

The following table sets forth worldwide and U.S. reported net sales
for selected products for the three and nine months ended September
30, 2008 compared to the three and nine months ended September 30,
2007. 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.
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Worldwide Net Sales U.S. Net Sales
-------------------- --------------------
% Change in
U.S. Total
% % Prescriptions
2008 2007 Change 2008 2007 Change vs. 2007
------ ------ ------ ------ ------ ------ -------------

Three Months
Ended
September 30,
---------------

Pharmaceuticals
---------------
Cardiovascular
Plavix $1,439 $1,254 15% $1,263 $1,080 17% 7%
Avapro/
Avalide 334 309 8% 189 176 7% (7)%
Pravachol 34 86 (60)% (18) 17 * (52)%
Virology
Reyataz 342 273 25% 176 141 25% 18%
Sustiva
Franchise
(total
revenue) 294 237 24% 185 151 23% 15%
Baraclude 144 72 100% 36 22 64% 59%
Oncology
Erbitux 184 185 (1)% 182 183 (1)% N/A
Taxol 91 102 (11)% (1) 1 (200)% N/A
Sprycel 82 46 78% 21 17 24% 29%
Ixempra 25 --- --- 24 --- --- N/A
Affective
(Psychiatric)
Disorders
Abilify 564 420 34% 435 329 32% 26%
Immunoscience
Orencia 119 60 98% 97 57 70% N/A
Nutritionals
---------------
Enfamil 295 281 5% 178 195 (9)% N/A
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* In excess of +/- 200%

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Worldwide Net Sales U.S. Net Sales
-------------------- --------------------
% Change in
U.S. Total
% % Prescriptions
2008 2007 Change 2008 2007 Change vs. 2007
------ ------ ------ ------ ------ ------ -------------

Nine Months
Ended
September 30,
---------------

Pharmaceuticals
---------------
Cardiovascular
Plavix $4,134 $3,381 22% $3,609 $2,882 25% 26%
Avapro/
Avalide 974 876 11% 547 509 7% (7)%
Pravachol 176 353 (50)% 7 121 (94)% (78)%
Virology
Reyataz 963 790 22% 495 422 17% 15%
Sustiva
Franchise
(total
revenue) 849 696 22% 531 442 20% 14%
Baraclude 388 176 120% 100 59 69% 60%
Oncology
Erbitux 567 507 12% 560 501 12% N/A
Taxol 286 308 (7)% 2 9 (78)% N/A
Sprycel 224 102 120% 62 41 51% 42%
Ixempra 76 --- --- 75 --- --- N/A
Affective
(Psychiatric)
Disorders
Abilify 1,547 1,198 29% 1,186 944 26% 20%
Immunoscience
Orencia 312 156 100% 257 150 71% N/A
Nutritionals
---------------
Enfamil 872 802 9% 536 543 (1)% N/A
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BRISTOL-MYERS SQUIBB COMPANY
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2008 AND 2007
(Unaudited, amounts in millions except per share data)

Three Months Nine Months
Ended September 30, Ended September 30,
------------------- -------------------
2008 2007 2008 2007
----------- ------- ---------- --------

Net Sales $5,254 $4,601 $15,348 $13,135
----------- ------- ---------- --------
Cost of products sold 1,634 1,478 4,874 4,152
Marketing, selling and
administrative 1,208 1,105 3,507 3,260
Advertising and product
promotion 362 338 1,101 950
Research and development 834 802 2,442 2,338
Acquired in-process research
and development -- -- 32 --
Provision for restructuring,
net 26 -- 67 44
Litigation expense, net 30 -- 32 14
Gain on sale of product assets -- (247) -- (273)
Equity in net income of
affiliates (164) (139) (478) (393)
Other expense, net (a) 169 8 188 29
----------- ------- ---------- --------
Total expenses 4,099 3,345 11,765 10,121
----------- ------- ---------- --------
Earnings from Continuing
Operations
Before Minority Interest and
Income Taxes 1,155 1,256 3,583 3,014
Provision for income taxes 308 292 896 535
Minority interest, net of
taxes 259 211 730 546
----------- ------- ---------- --------
Net Earnings from Continuing
Operations 588 753 1,957 1,933
----------- ------- ---------- --------

Discontinued Operations:
Earnings, net of taxes 8 105 107 321
Gain on Disposal, net of taxes 1,982 -- 1,939 --
----------- ------- ---------- --------
1,990 105 2,046 321
----------- ------- ---------- --------
Net Earnings $2,578 $ 858 $ 4,003 $ 2,254
=========== ======= ========== ========
Earnings per Common Share
Basic:
Net Earnings from Continuing
Operations $ 0.30 $ 0.38 $ 0.99 $ 0.98
Discontinued Operations:
Earnings, net of taxes -- 0.05 0.06 0.17
Gain on Disposal, net of
taxes 1.00 -- 0.98 --
----------- ------- ---------- --------
Net Earnings per Common
Share $ 1.30 $ 0.43 $ 2.03 $ 1.15
=========== ======= ========== ========
Diluted:
Net Earnings from Continuing
Operations $ 0.30 $ 0.38 $ 0.98 $ 0.98
Discontinued Operations:
Earnings, net of taxes -- 0.05 0.05 0.16
-----------
Gain on Disposal, net of
taxes 0.99 -- 0.97 --
----------- ------- ---------- --------
Net Earnings per Common
Share $ 1.29 $ 0.43 $ 2.00 $ 1.14
=========== ======= ========== ========

Average Common Shares
Outstanding:
Basic 1,977 1,974 1,976 1,968
Diluted 2,004 2,012 2,006 2,005

(a) Other expense, net
Interest expense $ 84 $ 109 $ 237 $ 325
Interest income (37) (69) (111) (184)
Impairment charge of
marketable securities 224 -- 247 --
Foreign exchange
transaction
(gains)/losses (51) 21 (34) 24
Other, net (51) (53) (151) (136)
----------- ------- ---------- --------
$ 169 $ 8 $ 188 $ 29
=========== ======= ========== ========
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BRISTOL-MYERS SQUIBB COMPANY
SPECIFIED ITEMS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2008 AND 2007
(Unaudited, dollars in millions)

Three months ended
September 30, 2008
-----------------------

Mark-
eting,
sell- Pro-
ing vision
Cost and Re- for
of ad- search re- Liti- Other
pro- mini- and struct- gation (income)/
ducts stra- devel- uring, expense, expense,
sold tive opment net net net Total
----------------------------------------------------
Productivity
Transformation
Initiative:
Downsizing and
streamlining of
worldwide
operations $ - $ - $ - $ 26 $ - $ - $26
Accelerated
depreciation and
other
shutdown costs 53 - - - - - 53
Process
standardization
implementation
costs - 28 - - - - 28
----------------------------------------------------
53 28 - 26 - - 107

Litigation
Matters:
Litigation
settlement - - - - 30 - 30

Other:
Mead Johnson
Nutritionals
charges - 9 - - - - 9
Product liability - - - - - 2 2
Upfront and
milestone
payments - - 37 - - - 37
Auction rate
securities
impairment - - - - - 224 224
----------------------------------------------------
$53 $ 37 $ 37 $ 26 $ 30 $ 226 409
==============================================
Income taxes on
items above (87)
-----
(Increase)/Decrease to Net Earnings
from Continuing Operations $322
=====
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Three months ended September
30, 2007
-------------------------------

Gain
on sale Other
Cost of of (income)/
products Research and product expense,
sold development assets net Total
------------------------------------------------
Litigation Matters:
Insurance recovery $ - $ - $ - $ (11) $ (11)
Product liability - - - 5 5
------------------------------------------------
- - - (6) (6)

Other:
Upfront and milestone
payments - 60 - - 60
Accelerated
depreciation and
asset impairment 17 - - 17
Gain on sale of
product assets - - (247) - (247)
------------------------------------------------
$ 17 $ 60 $(247) $ (6) (176)
=========================================
Income taxes on items
above 82
------
(Increase)/Decrease to Net Earnings from Continuing
Operations $ (94)
======
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BRISTOL-MYERS SQUIBB COMPANY
SPECIFIED ITEMS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2008 AND 2007
(Unaudited, dollars in millions)

Nine months ended
September 30, 2008
----------------------

Mark-
eting,
sell- Pro-
ing vision
Cost and Re- for
of ad- search re- Liti- Other
pro- mini- and struct- gation (income)/
ducts strat- devel- uring, expense, expense,
sold ive opment net net net Total
-----------------------------------------------------
Productivity
Transformation
Initiative:
Downsizing and
streamlining of
worldwide
operations $ - $ - $ - $ 67 $ - $ - $ 67
Accelerated
depreciation
and other
shutdown costs 207 - - - - - 207
Process
standardization
implementation
costs - 64 - - - - 64
Gain on sale and
leaseback of
properties - - - - - (9) (9)
-----------------------------------------------------
207 64 - 67 - (9) 329

Litigation
Matters:
Litigation
settlement - - - - 32 - 32

Other:
Mead Johnson
Nutritionals
charges - 10 - - - - 10
Product
liability - - - - - 18 18
Upfront and
milestone
payments - - 88 - - - 88
Acquired in-
process
research &
development - - 32 - - - 32
Auction rate
securities
impairment - - - - - 247 247
-----------------------------------------------------
$207 $ 74 $120 $ 67 $ 32 $256 756
==============================================
Income taxes on
items above (154)
------
(Increase)/Decrease to
Net Earnings from
Continuing Operations $ 602
======
*T

-0-
*T

Nine months ended
September 30, 2007
---------------------

Pro-
vision
Cost Re- for
of search re- Liti- Other Gain on
pro- and struct- gation (income)/ sale of
ducts devel- uring, expense, expense, product
sold opment net net net assets Total
------------------------------------------------------
Litigation
Matters:
Litigation
settlement $ - $ - $ - $ 14 $ - $ - $ 14
Insurance
recovery - - - - (11) - (11)
Product
liability - - - - 5 - 5
------------------------------------------------------
- - - 14 (6) - 8

Other:
Upfront and
milestone
payments - 157 - - - - 157
Downsizing and
streamlining
of worldwide
operations - - 44 - - - 44
Accelerated
depreciation
and asset
impairment 46 - - - - - 46
Gain on sale of
product assets - - - - - (273) (273)
------------------------------------------------------
$ 46 $ 157 $ 44 $ 14 $ (6) $ (273) (18)
===============================================
Income taxes on
items above 37
Change in estimate for taxes on prior year items (39)
------
(Increase)/Decrease to Net Earnings from Continuing
Operations $ (20)
======
*T

-0-
*T

BRISTOL-MYERS SQUIBB COMPANY
RECONCILIATION OF GAAP RESULTS OF CONTINUING OPERATIONS
TO NON-GAAP RESULTS OF CONTINUING OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2008 AND 2007
(Unaudited, amounts in millions except per share data)

Q3 2008 Q3 2007
Specified Non Specified Non
GAAP Items* GAAP GAAP Items* GAAP
------- -------------------------

Net Sales $5,254 $5,254 $4,601 $4,601
Cost of Products
Sold 1,634 (53) 1,581 1,478 (17) 1,461
------- ------- ------- -------
Gross Profit 3,620 53 3,673 3,123 17 3,140
Gross Margin
as % of
Sales 68.9% 1.0% 69.9% 67.9% 0.3% 68.2%

Marketing Selling
and Admin 1,208 (37) 1,171 1,105 1,105
Advertising and
Product Promotion 362 362 338 338
------- ------- ------- -------
Total SGA 1,570 (37) 1,533 1,443 1,443
SG&A as % of
Sales 29.9% (0.7%) 29.2% 31.4% 31.4%

R&D 834 (37) 797 802 (60) 742
R&D as % of
Sales 15.9% (0.7%) 15.2% 17.4% (1.3%) 16.1%

Provision for
restructuring,
net 26 (26) - - - -
Litigation
expense, net 30 (30) - - - -
Gain on sale of
Product Assets - - - (247) 247 -
Equity in Net
Income of
Affiliates (164) - (164) (139) - (139)
Other
expense/(income),
net 169 (226) (57) 8 6 14
------- ------- ------- -------

Earnings from
Continuing
Operations
Before Minority
Interest & Taxes $1,155 409 $1,564 $1,256 (176) $1,080

Provision for
income taxes 308 87 395 292 (82) 210

Minority Interest,
net of taxes 259 259 211 211
------- ------- ------- -------

Net Earnings -
Continuing
Operations 588 322 910 753 (94) 659

Net Earnings -
Discontinued
Ops 1,990 1,990 105 105
------- ------- ------- -------
Net Earnings $2,578 322 $2,900 $ 858 (94) $ 764
======= ======= ======= =======

Interest Exp on
Conv. Of Conv
Debt Bonds 4 4 10 10
Net Earnings used
for Diluted EPS
Calc - Continuing
Operations. $ 592 322 $ 914 $ 763 (94) $ 669

Avg Shares
(Diluted) 2,004 2,004 2,012 2,012

Diluted EPS -
Continuing
Operations $ 0.30 0.16 $ 0.46 $ 0.38 (0.05) $ 0.33

Net Earnings
-
Continuing
Operations
as a % of
sales 11.2% 6.1% 17.3% 16.4% (2.1%) 14.3%

Effective
Tax Rate 26.7% (1.4%) 25.3% 23.2% (3.8%) 19.4%

* Please refer to the Specified Items schedules for further details.
*T

-0-
*T

BRISTOL-MYERS SQUIBB COMPANY
NET DEBT CALCULATION
AS OF SEPTEMBER 30, 2008 AND JUNE 30, 2008
(Unaudited, dollars in millions)

September 30, 2008 June 30, 2008
------------------ -------------
Cash and cash equivalents $ 7,173 $ 4,047
Marketable securities-current 258 355
Short-term borrowings (135) (1,799)
Long-term debt (6,120) (6,021)
------------------ -------------
Net cash / (debt) $ 1,176 $ (3,418)
================== =============
*T

Bristol-Myers Squibb Company
Communications:
Brian Henry, 609-252-3337
Tracy Furey, 609-252-3208
or
Investor Relations:
John Elicker, 212-546-3775
Suketu Desai, 609-252-5796

Copyright Business Wire 2008