Covidien Reports Third-Quarter 2009 Results

* Third-quarter diluted GAAP earnings per share from continuing operations were
$0.54
* Excluding specified items, adjusted diluted earnings per share from continuing
operations were $0.74

DUBLIN--(Business Wire)--
Covidien plc (NYSE: COV) today reported results for the third quarter of fiscal
2009 (April - June 2009). Third-quarter net sales declined 3% to $2.5 billion
from $2.6 billion a year ago, with unfavorable foreign exchange of $143 million
reducing the quarterly sales growth rate by approximately 5 percentage points.
Operational growth, which excludes the impact of foreign exchange, was 2%,
driven primarily by higher volume and new products.

Third-quarter gross margin of 54.4% was up 0.7 percentage points from the
prior-year period. The improvement reflected manufacturing cost reductions,
benefits from our restructuring program and positive mix in Medical Devices and
Pharmaceutical Products, partially offset by unfavorable foreign exchange.

Selling, general and administrative expenses for the third quarter of fiscal
2009 were below those of the year-ago third quarter, as planned increases in
selling and marketing were more than offset by benefits from foreign exchange.
Research and Development (R&D) expense in the quarter climbed 53% from that of
the prior year and represented 5.2% of net sales. Third-quarter R&D expense
included $30 million in licensing fees related to two previously announced
transactions in the Pharmaceutical Products segment.

In the third quarter, the Company reported operating income of $441 million,
versus $545 million in the same period the year before. Third-quarter adjusted
operating income, excluding the specified items shown in the attached quarterly
Non-GAAP Reconciliations table, was $535 million, versus $563 million in the
third quarter of the previous year. Third-quarter adjusted operating income,
excluding the specified items, represented 21.3% of sales, versus 21.7% a year
ago.

The third-quarter effective tax rate was negatively impacted by a charge of $59
million for in-process R&D for which no tax benefit was recorded. The effect of
this charge was to increase the tax rate to 33.9%; excluding this charge and
other specified items, the third-quarter tax rate was 25.6%.

Third-quarter diluted GAAP earnings per share from continuing operations were
$0.54, versus $0.65 per share in the third quarter of last year. The
third-quarter adjusted diluted earnings per share, excluding the specified
items, were $0.74, versus $0.72 a year ago.

For the first nine months of fiscal 2009, net sales of $7.7 billion were 5%
above the $7.3 billion in the prior year, with unfavorable foreign exchange
lowering the sales growth rate by approximately 5 percentage points. Sales rose
13% in the United States, but declined 5% outside the U.S., reflecting non-U.S.
operational growth of 6% and a negative currency impact of 11%. Operational
growth, excluding the impact of oxycodone hydrochloride extended-release tablets
(Oxy ER), was 5%.

The Company reported operating income of $1.50 billion in the first nine months
of fiscal 2009, versus $1.41 billion in the comparable period a year ago.
Nine-month adjusted operating income, excluding the items specified in the
attached nine-month Non-GAAP Reconciliations table, as well as Oxy ER, was $1.50
billion, versus $1.54 billion in the previous year. Nine-month 2009 adjusted
operating income, excluding specified items and Oxy ER, represented 20.5% of
sales, versus 20.9% a year ago.

The effective tax rate was 42.0% for the first nine months of fiscal 2009.
Excluding the specified items, the adjusted tax rate for the first nine months
was 25.6%.

For the first nine months of 2009, diluted GAAP earnings per share from
continuing operations were $1.62, versus $2.03 in the first nine months of 2008.
Excluding the specified items and Oxy ER, adjusted diluted earnings per share
from continuing operations were $2.07, versus $1.97 a year ago.

"We delivered good operational performance in line with our expectations,
despite the global economic slowdown," said Richard J. Meelia, Chairman,
President and CEO. "We continue to benefit from several successful new product
launches and market share gains.

"Results in the Pharmaceutical Products segment were below our expectations,
primarily reflecting significantly lower sales in our branded product portfolio,
a slowdown in active pharmaceutical ingredients and the timing of orders. Over
the next 18 months, we expect difficult comparisons in this business, but that
should ease, starting in 2011, depending on the timing of new product approvals.
Overall, total Company performance remains on plan, and we are confident we will
end the year at the high end of our overall financial expectations," Mr. Meelia
added.

Results by business segment follow.

Medical Devices sales of $1.7 billion in the third quarter were 3% below the
$1.8 billion in the comparable quarter of last year. Operational growth was 4%,
reflecting new products and higher volume. Operationally, sales in
Endomechanical were above those of a year ago, fueled by higher sales of
laparoscopic instruments. The Energy double-digit quarterly sales gain was again
paced by vessel sealing products, partially offset by a continued slowdown in
capital-related hardware products. The sales growth in Soft Tissue Repair was
led by mesh products, somewhat offset by lower sales of sutures. Vascular sales
rose at a double-digit pace, due to a strong performance by dialysis products
and increases in compression. In Airway and Ventilation, quarterly operational
sales were down slightly, chiefly reflecting lower ventilator sales in the U.S.
that stemmed from capital spending constraints, and in part due to a sharp
decline in sales of sleep products.

For the first nine months of fiscal 2009, Medical Devices sales were essentially
unchanged at $5.0 billion. Unfavorable foreign exchange reduced the sales growth
rate by approximately 6 percentage points.

ImagingSolutions third-quarter sales declined 6% to $299 million from $319
million a year ago. Unfavorable foreign exchange accounted for approximately 5
percentage points of the decrease. Radiopharmaceuticals sales in the quarter
were slightly below those of the year before, due to unfavorable foreign
exchange. Operational growth was aided by higher generator pricing, but
restrained by the unstable molybdenum supply chain. Third-quarter sales of
Contrast Products were well below year-ago levels, reflecting unfavorable
foreign exchange, lower volume and strong competitive activity in the U.S. In
addition, sales of capital equipment to hospitals, including urology tables and
power injectors, were below those of the prior year.

For the first nine months of fiscal 2009, Imaging Solutions sales fell 8% to
$840 million, versus $914 million the year before. Unfavorable foreign exchange
contributed about 5 percentage points to the sales decline.

Pharmaceutical Products sales of $245 million in the third quarter were 5% below
those of the prior year`s $257 million. Unfavorable foreign exchange contributed
about 3 percentage points to the decrease. The quarter`s decline was primarily
due to lower sales of Active Pharmaceutical Ingredients, driven by significant
decreases in narcotics and peptides, partially offset by higher sales of
acetaminophen. Sales of Specialty Pharmaceuticals (formerly called Dosage
Pharmaceuticals) were slightly below those of a year ago, as sharply lower sales
of branded products were partially offset by strong growth for oxycodone
immediate-release, which benefited from a competitive supply constraint.

For the first nine months of fiscal 2009, Pharmaceutical Products sales climbed
53%, from $717 million last year to $1.1 billion, with oxycodone hydrochloride
extended-release tablets contributing $354 million. Excluding Oxy ER,
Pharmaceutical Products sales of $741 million were 3% above those of the prior
year.

Medical Supplies third-quarter sales of $238 million were unchanged from those
of the previous year. Higher sales of Nursing Care products were essentially
offset by lower OEM sales. For the first nine months of fiscal 2009, sales of
Medical Supplies, at $716 million, were 6% above last year`s $675 million.

During the quarter, Covidien purchased approximately 2 million ordinary shares
under its previously announced share buyback program.

The Company also announced that it was making several reporting changes to align
external segment reporting with recent revisions in its internal reporting
structure. These segment changes have no impact on results of operations,
financial condition or cash flows of the Company as a whole.

The revisions include the combination of the Pharmaceutical Products and Imaging
Solutions segments into a single operating segment; the reclassification of the
SharpSafety and Clinical Care product lines from the Medical Devices segment to
the Medical Supplies segment; the reclassification of several hernia repair
products from the Endomechanical product line to the Soft Tissue Repair product
line; and the reclassification of one product from the Contrast product line in
the Imaging Solutions segment to the Vascular product line in the Medical
Devices segment. These changes are effective in the fourth quarter, 2009 and the
Company will provide restated historical segment financial data reflecting these
changes prior to its September 10, 2009, Investor Meeting.

ABOUT COVIDIEN

Covidien is a leading global healthcare products company that creates innovative
medical solutions for better patient outcomes and delivers value through
clinical leadership and excellence. Covidien manufactures, distributes and
services a diverse range of industry-leading product lines in four segments:
Medical Devices, Imaging Solutions, Pharmaceutical Products and Medical
Supplies. With 2008 revenue of nearly $10 billion, Covidien has more than 41,000
employees worldwide in 59 countries, and its products are sold in over 140
countries. Please visit www.covidien.com to learn more about our business.

CONFERENCE CALL AND WEBCAST

The Company will hold a conference call for investors today, beginning at 8:30
a.m. ET. This call can be accessed three ways:

* At Covidien`s website: http://investor.covidien.com
* By telephone: For both "listen-only" participants and those participants who
wish to take part in the question-and-answer portion of the call, the telephone
dial-in number in the U.S. is 866-800-8652. For participants outside the U.S.,
the dial-in number is 617-614-2705. The access code for all callers is 98808387.

* Through an audio replay: A replay of the conference call will be available
beginning at 11:30 a.m. on July 30, 2009, and ending at 5:00 p.m. on August 6,
2009. The dial-in number for U.S. participants is 888-286-8010. For participants
outside the U.S., the replay dial-in number is 617-801-6888. The replay access
code for all callers is 13349560.

NON-GAAP FINANCIAL MEASURES

This press release contains financial measures, including operational growth,
adjusted net sales, adjusted gross margin, adjusted operating income, adjusted
earnings per share and adjusted operating margin, which are considered
"non-GAAP" financial measures under applicable Securities & Exchange Commission
rules and regulations. These non-GAAP financial measures should be considered
supplemental to and not a substitute for financial information prepared in
accordance with generally accepted accounting principles. The Company`s
definition of these non-GAAP measures may differ from similarly titled measures
used by others.

The non-GAAP financial measures used in this press release adjust for specified
items that can be highly variable or difficult to predict. The Company generally
uses these non-GAAP financial measures to facilitate management`s financial and
operational decision-making, including evaluation of Covidien`s historical
operating results, comparison to competitors` operating results and
determination of management incentive compensation. These non-GAAP financial
measures reflect an additional way of viewing aspects of the Company`s
operations that, when viewed with GAAP results and the reconciliations to
corresponding GAAP financial measures, may provide a more complete understanding
of factors and trends affecting Covidien's business.

Because non-GAAP financial measures exclude the effect of items that will
increase or decrease the Company`s reported results of operations, management
strongly encourages investors to review the Company`s consolidated financial
statements and publicly filed reports in their entirety. A reconciliation of the
non-GAAP financial measures to the most directly comparable GAAP financial
measures is included in the tables accompanying this release.

The Company presents its operating margin and effective tax rate forecast before
special items to give investors a perspective on the expected underlying
business results. Because the Company cannot predict the amount and timing of
such items and the associated charges or gains that will be recorded in the
Company`s financial statements, it is difficult to include the impact of those
items in the forecast.

FORWARD-LOOKING STATEMENTS

Any statements contained in this communication that do not describe historical
facts may constitute forward-looking statements as that term is defined in the
Private Securities Litigation Reform Act of 1995. Any forward-looking statements
contained herein are based on our management`s current beliefs and expectations,
but are subject to a number of risks, uncertainties and changes in
circumstances, which may cause actual results or Company actions to differ
materially from what is expressed or implied by these statements. The factors
that could cause actual future results to differ materially from current
expectations include, but are not limited to, our ability to effectively
introduce and market new products or keep pace with advances in technology, the
reimbursement practices of a small number of large public and private insurers,
cost-containment efforts of customers, purchasing groups, third-party payers and
governmental organizations, intellectual property rights disputes, complex and
costly regulation, including healthcare fraud and abuse regulations,
manufacturing or supply chain problems or disruptions, rising commodity costs,
recalls or safety alerts and negative publicity relating to Covidien or its
products, product liability losses and other litigation liability, including
legacy Tyco-related litigation, divestitures of some of our businesses or
product lines, our ability to execute strategic acquisitions of, investments in
or alliances with other companies and businesses, competition, risks associated
with doing business outside of the United States, foreign currency exchange
rates, issues related to our existing material weakness in accounting for income
taxes or potential environmental liabilities. These and other factors are
identified and described in more detail in our filings with the SEC. We disclaim
any obligation to update these forward-looking statements other than as required
by law.

Covidien plc
Consolidated and Combined Statements of Income
Quarters Ended June 26, 2009 and June 27, 2008
(dollars in millions, except per share data)

Quarter Ended Percent of Quarter Ended Percent of
June 26, 2009 Net Sales June 27, 2008 Net Sales

Net sales $ 2,516 100.0 % $ 2,595 100.0 %
Cost of products sold 1,147 45.6 1,202 46.3
Gross profit 1,369 54.4 1,393 53.7

Selling, general and administrative expenses 734 29.2 745 28.7
Research and development expenses 130 5.2 85 3.3
In-process research and development charges 59 2.3 10 0.4
Restructuring charges 5 0.2 4 0.2
Shareholder settlement, net of insurance recoveries - - 4 0.2
Operating income 441 17.5 545 21.0

Interest expense (43 ) (1.7 ) (48 ) (1.8 )
Interest income 8 0.3 10 0.4
Other income, net 7 0.3 13 0.5
Income from continuing operations before income taxes 413 16.4 520 20.0

Income tax expense 140 5.6 189 7.3
Income from continuing operations 273 10.9 331 12.8

Income (loss) from discontinued operations, net of income taxes 8 0.3 (62 ) (2.4 )
Net income $ 281 11.2 $ 269 10.4

Basic earnings per share:
Income from continuing operations $ 0.54 $ 0.66
Income (loss) from discontinued operations 0.02 (0.12 )
Net income 0.56 0.54

Diluted earnings per share:
Income from continuing operations $ 0.54 $ 0.65
Income (loss) from discontinued operations 0.02 (0.12 )
Net income 0.56 0.53

Weighted-average number of shares outstanding (in millions):
Basic 503 500
Diluted 505 505

Covidien plc
Non-GAAP Reconciliations
Quarters Ended June 26, 2009 and June 27, 2008
(dollars in millions, except per share data)

Quarter Ended June 26, 2009
Operating income Income from continuing operations before income taxes Income from continuing operations Diluted earnings per share from continuing operations

GAAP $ 441 $ 413 $ 273 $ 0.54
Adjustments:
Licensing fees (1) 30 30 19 0.04
In-process research and development charge (2) 59 59 59 0.12
Restructuring charges (3) 5 5 3 -
Impact of tax sharing agreement (4) - (3 ) (3 ) (0.01 )
Tax matters (5) - - 24 0.05
As adjusted $ 535 $ 504 $ 375 0.74

(1) Consists of $30 million of research and development expenses related to up front fees and milestone payments for licensing arrangements entered into by our Pharmaceutical Products segment.

(2) Consists of an in-process research and development charge of $59 million related to the acquisition of VNUS Medical Technologies, Inc. by our Medical Devices segment.

(3) Primarily relates to severance costs within our Pharmaceutical Products and Imaging Solutions segments.

(4) Represents the non-interest portion of the impact of our tax sharing agreement with Tyco International and Tyco Electronics.

(5)Primarily consists of adjustments to legacy income tax liabilities and withholding tax incurred on repatriated earnings.

Quarter Ended June 27, 2008
Operating income Income from continuing operations before income taxes Income from continuing operations Diluted earnings per share from continuing operations

GAAP $ 545 $ 520 $ 331 $ 0.65
Adjustments:
In-process research and development charges (1) 10 10 10 0.02
Restructuring charges (2) 4 4 3 0.01
Shareholder settlement, net of insurance recoveries (3) 4 4 4 0.01
Impact of tax sharing agreement (4) - (9 ) (9 ) (0.02 )
Tax matters (5) - - 27 0.05
As adjusted $ 563 $ 529 $ 366 0.72

(1) In-process research and development charges relate to small acquisitions by our Medical Devices and Imaging Solutions segments.

(2) Primarily relates to restructuring charges within our Medical Devices segment.

(3)Represents our portion of Tyco International's legal settlement with a certain shareholder, net of our portion of insurance recoveries.

(4) Represents the non-interest portion of the impact of our tax sharing agreement with Tyco International and Tyco Electronics.

(5) Primarily consists of adjustments to legacy income tax liabilities.

Covidien plc
Segment and Geographical Sales
Quarters Ended June 26, 2009 and June 27, 2008
(dollars in millions)

Quarters Ended
June 26, 2009 June 27, 2008 Percent change Percent change currency Operational growth

Medical Devices (1)
United States $ 779 $ 751 4 % - % 4 %
Non-U.S. 955 1,030 (7 ) (11 ) 4
$ 1,734 $ 1,781 (3 ) (7 ) 4

Imaging Solutions (1)
United States $ 181 $ 183 (1 ) % - % (1 ) %
Non-U.S. 118 136 (13 ) (13 ) -
$ 299 $ 319 (6 ) (5 ) (1 )

Pharmaceutical Products (1)
United States $ 215 $ 230 (7 ) % - % (7 ) %
Non-U.S. 30 27 11 (29 ) 40
$ 245 $ 257 (5 ) (3 ) (2 )

Medical Supplies (1)
United States $ 238 $ 238 - % - % - %
Non-U.S. - - - - -
$ 238 $ 238 - - -

Covidien plc (1)
United States $ 1,413 $ 1,402 1 % - % 1 %
Non-U.S. 1,103 1,193 (8 ) (12 ) 4
$ 2,516 $ 2,595 (3 ) (5 ) 2

(1)Sales to external customers are reflected in the regions based on the location of the sales force executing the transaction.

Covidien plc
Select Product Line Sales
Quarters Ended June 26, 2009 and June 27, 2008
(dollars in millions)

Quarters Ended
June 26, 2009 June 27, 2008 Percent change Percent change Operational
currency growth

Medical Devices
Endomechanical $ 570 $ 579 (2 ) % (8 ) % 6 %
Soft Tissue Repair 151 156 (3 ) (10 ) 7
Energy 222 213 4 (7 ) 11
Oximetry and Monitoring 155 161 (4 ) (6 ) 2
Airway and Ventilation 189 204 (7 ) (6 ) (1 )
Vascular 153 138 11 (4 ) 15
SharpSafety 107 116 (8 ) (1 ) (7 )
Clinical Care 98 104 (6 ) (7 ) 1

Imaging Solutions
Radiopharmaceuticals $ 145 $ 147 (1 ) % (5 ) % 4 %
Contrast 154 172 (10 ) (6 ) (4 )

Covidien plc
Consolidated and Combined Statements of Income
Nine Months Ended June 26, 2009 and June 27, 2008
(dollars in millions, except per share data)

Nine Months Ended Percent of Nine Months Ended Percent of
June 26, 2009 Net Sales June 27, 2008 Net Sales

Net sales $ 7,673 100.0 % $ 7,337 100.0 %
Cost of products sold 3,439 44.8 3,434 46.8
Gross profit 4,234 55.2 3,903 53.2

Selling, general and administrative expenses 2,136 27.8 2,130 29.0
Research and development expenses 320 4.2 238 3.2
In-process research and development charges 79 1.0 22 0.3
Restructuring charges 17 0.2 73 1.0
Shareholder settlements, net of insurance recoveries 183 2.4 35 0.5
Operating income 1,499 19.5 1,405 19.1

Interest expense (131 ) (1.7 ) (164 ) (2.2 )
Interest income 20 0.3 30 0.4
Other income, net 22 0.3 196 2.7
Income from continuing operations before income taxes 1,410 18.4 1,467 20.0

Income tax expense 592 7.7 442 6.0
Income from continuing operations 818 10.7 1,025 14.0

Income (loss) from discontinued operations, net of income taxes 33 0.4 (73 ) (1.0 )
Net income $ 851 11.1 $ 952 13.0

Basic earnings per share:
Income from continuing operations $ 1.62 $ 2.05
Income (loss) from discontinued operations 0.06 (0.15 )
Net income 1.69 1.91

Diluted earnings per share:
Income from continuing operations $ 1.62 $ 2.03
Income (loss) from discontinued operations 0.06 (0.14 )
Net income 1.68 1.89

Weighted-average number of shares outstanding (in millions):
Basic 504 499
Diluted 506 504

Covidien plc
Non-GAAP Reconciliations
Nine Months Ended June 26, 2009 and June 27, 2008
(dollars in millions, except per share data)

Nine Months Ended June 26, 2009
Sales Gross profit Gross margin percent Operating income Operating margin percent Income from continuing operations before income taxes Income from continuing operations Diluted earnings per share from continuing operations

GAAP $ 7,673 $ 4,234 55.2 % $ 1,499 19.5 % $ 1,410 $ 818 $ 1.62
Adjustments:
Legal settlements (1) - - 36 36 22 0.04
Licensing fees (2) 30 30 19 0.04
In-process research and development charges (3) - - 79 79 78 0.15
Restructuring charges (4) - - 17 17 9 0.02
Shareholder settlements (5) - - 183 183 183 0.36
Impact of tax sharing agreement (6) - - - (4 ) (4 ) (0.01 )
Tax matters (7) - - - - 180 0.36
As adjusted 7,673 4,234 55.2 1,844 24.0 1,751 1,305 2.58
Impact of Oxy ER (8) (354 ) (346 ) 97.7 (345 ) 97.5 (345 ) (259 ) (0.51 )
As adjusted, excluding impact of Oxy ER $ 7,319 $ 3,888 53.1 $ 1,499 20.5 $ 1,406 $ 1,046 2.07

(1) Consists of legal settlements that are included in selling, general and administrative expenses.

(2)Consists of $30 million of research and development expenses related to up front fees and milestone payments for licensing arrangements entered into by our Pharmaceutical Products segment.

(3) Consists of in-process research and development charges totaling $79 million related to acquisitions by our Medical Devices segment, primarily VNUS Medical Technologies, Inc.

(4) Primarily relates to severance costs within our Medical Devices, Pharmaceutical Products and Imaging Solutions segments.

(5) Represents our portion of Tyco International`s legal settlements with certain shareholders and our portion of the estimated cost to settle all of the remaining securities cases outstanding.

(6) Represents the non-interest portion of the impact of our tax sharing agreement with Tyco International and Tyco Electronics.

(7) Primarily consists of withholding tax incurred on repatriated earnings.

(8)Represents the sales and direct costs attributable to selling oxycodone hydrochloride extended-release tablets (Oxy ER).

Nine Months Ended June 27, 2008
Sales Gross profit Gross margin percent Operating income Operating margin percent Income from continuing operations before income taxes Income from continuing operations Diluted earnings per share from continuing operations

GAAP $ 7,337 $ 3,903 53.2 % $ 1,405 19.1 % $ 1,467 $ 1,025 $ 2.03
Adjustments:
In-process research and development charges (1) - - 22 22 22 0.04
Restructuring charges (2) - - 73 73 59 0.12
Shareholder settlements, net of insurance recoveries (3) - - 35 35 35 0.07
Impact of tax sharing agreement (4) - - - (181 ) (181 ) (0.36 )
Tax matters (5) - - - - 32 0.06
As adjusted $ 7,337 $ 3,903 53.2 $ 1,535 20.9 $ 1,416 $ 992 1.97

(1) In-process research and development charges relate to acquisitions by our Medical Devices segment.

(2) Consists of restructuring charges of $55 million and related asset impairment charges of $17 million primarily within our Medical Devices segment.

(3) Represents our portion of Tyco International's legal settlements with certain shareholders, net of our portion of insurance recoveries.

(4) Represents the non-interest portion of the impact of our tax sharing agreement with Tyco International and Tyco Electronics primarily resulting from the adoption of FIN 48.

(5) Primarily consists of adjustments to legacy income tax liabilities.

Covidien plc
Segment and Geographical Sales
Nine Months Ended June 26, 2009 and June 27, 2008
(dollars in millions)

Nine Months Ended
June 26, 2009 June 27, 2008 Percent change Percent change Operational
currency growth

Medical Devices (1)
United States $ 2,280 $ 2,140 7 % - % 7 %
Non-U.S. 2,742 2,891 (5 ) (11 ) 6
$ 5,022 $ 5,031 - (6 ) 6

Imaging Solutions (1)
United States $ 503 $ 544 (8 ) % - % (8 ) %
Non-U.S. 337 370 (9 ) (12 ) 3
$ 840 $ 914 (8 ) (5 ) (3 )

Pharmaceutical Products (1)
United States $ 1,005 $ 644 56 % - % 56 %
Non-U.S. 90 73 23 (35 ) 58
$ 1,095 $ 717 53 (3 ) 56

Medical Supplies (1)
United States $ 716 $ 675 6 % - % 6 %
Non-U.S. - - - - -
$ 716 $ 675 6 - 6

Covidien plc (1)
United States $ 4,504 $ 4,003 13 % - % 13 %
Non-U.S. 3,169 3,334 (5 ) (11 ) 6
$ 7,673 $ 7,337 5 (5 ) 10

(1)Sales to external customers are reflected in the regions based on the location of the sales force executing the transaction.

Covidien plc
Select Product Line Sales
Nine Months Ended June 26, 2009 and June 27, 2008
(dollars in millions)

Nine Months Ended
June 26, 2009 June 27, 2008 Percent change Percent change Operational
currency growth

Medical Devices
Endomechanical $ 1,631 $ 1,597 2 % (8 ) % 10 %
Soft Tissue Repair 431 426 1 (10 ) 11
Energy 635 592 7 (7 ) 14
Oximetry and Monitoring 470 478 (2 ) (5 ) 3
Airway and Ventilation 551 597 (8 ) (6 ) (2 )
Vascular 433 395 10 (2 ) 12
SharpSafety 320 345 (7 ) (1 ) (6 )
Clinical Care 294 304 (3 ) (5 ) 2

Imaging Solutions
Radiopharmaceuticals $ 393 $ 423 (7 ) % (4 ) % (3 ) %
Contrast 447 491 (9 ) (6 ) (3 )

Covidien plc
Non-GAAP Sales Analysis
(dollars in millions)

For the Nine Months Ended June 26, 2009

Net Sales for the Oxy ER Impact Net Sales Excluding the Impact of Currency Impact Operational Growth Excluding the Impact of Oxy ER Net Sales for the
Nine Months Ended
Oxy ER
Nine Months Ended

June 26, 2009
June 27, 2008

Medical Devices $ 5,022 - % $ - - % $ 5,022 - % $ (311 ) (6 ) % $ 302 6 % $ 5,031
Imaging Solutions 840 (8 ) - - 840 (8 ) (45 ) (5 ) (29 ) (3 ) 914
Pharmaceutical 1,095 53 354 50 741 3 (24 ) (3 ) 48 6 717
Products
Medical Supplies 716 6 - - 716 6 - - 41 6 675
Total Net Sales $ 7,673 5 $ 354 5 $ 7,319 - $ (380 ) (5 ) $ 362 5 $ 7,337

Covidien plc
Eric Kraus, 508-261-8305
Senior Vice President
Corporate Communications
eric.kraus@covidien.com
or
Coleman Lannum, CFA, 508-452-4343
Vice President
Investor Relations
cole.lannum@covidien.com
or
Bruce Farmer, 508-452-4372
Vice President
Public Relations
bruce.farmer@covidien.com
or
Brian Nameth, 508-452-4363
Director
Investor Relations
brian.nameth@covidien.com

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