Novartis Pharmaceuticals Corporation Prevails in Medicaid Pricing Case Before Alabama Supreme Court

Novartis Pharmaceuticals Corporation Prevails in Medicaid Pricing Case Before
Alabama Supreme Court
- Alabama Supreme Court directs entry of final judgment in favor of NPC

EAST HANOVER, N.J., Oct. 16 /PRNewswire/ -- The Alabama Supreme Court today
overturned a jury verdict against Novartis Pharmaceuticals Corporation (NPC),
and directed entry of judgment in favor of NPC. NPC is pleased that the
Alabama Supreme Court has found in our favor, which demonstrates that the
State of Alabama's claims were unfounded. The State of Alabama had claimed
that the prices provided by NPC to reporting services resulted in overpayment
to pharmacists and doctors in the Alabama State Medicaid system, and a
Montgomery County Circuit Court jury initially found NPC liable.

NPC was among 73 pharmaceutical manufacturers named in a lawsuit filed in 2005
by the Alabama Attorney General. Through the appeal process, NPC demonstrated
that it reported true and accurate prices, based on terms that have been known
and used by all participants in pharmaceuticals markets, including Alabama
Medicaid, for more than 30 years.

"We're pleased by the Alabama Supreme Court's ruling today," said Ludwig
Hantson, PhD, Head of Pharma North America, CEO, Novartis Pharmaceuticals
Corporation. "NPC is committed to high ethical standards in the pricing,
marketing and sale of all of our products."

NPC's mission is to help patients and provide access to medications that treat
disease, ease suffering and improve people's lives. In 2008 alone, NPC
provided approximately $4.1M in prescription drugs to over 2,100 low-income
Alabamans through our Patient Assistance Program.

Disclaimer
The foregoing release contains forward-looking statements that can be
identified by express or implied discussions regarding the potential outcome
of any other pricing litigation. Such forward-looking statements reflect the
current views of the Company regarding future events, and involve known and
unknown risks, uncertainties and other factors that may cause actual results
to be materially different from any future results, performance or
achievements expressed or implied by such statements. There can be no
guarantee that NPC or its affiliates will be successful in any other pricing
litigation against it. In particular, management's expectations could be
affected by, among other things, the inherent unpredictability of the
litigation process, and other risks and factors referred to in Novartis AG's
current Form 20-F on file with the US Securities and Exchange Commission.
Should one or more of these risks or uncertainties materialize, or should
underlying assumptions prove incorrect, actual results may vary materially
from those anticipated, believed, estimated or expected. Novartis is providing
the information in this press release as of this date and does not undertake
any obligation to update any forward-looking statements contained in this
press release as a result of new information, future events or otherwise.

About Novartis
Novartis Pharmaceuticals Corporation researches, develops, manufactures and
markets leading innovative prescription drugs used to treat a number of
diseases and conditions, including those in the cardiovascular, metabolic,
cancer, organ transplantation, central nervous system, dermatological, GI and
respiratory areas. The company's mission is to improve people's lives by
pioneering novel healthcare solutions.

Located in East Hanover, New Jersey, Novartis Pharmaceuticals Corporation is
an affiliate of Novartis AG (NYSE: NVS), which provides healthcare solutions
that address the evolving needs of patients and societies. Focused solely on
growth areas in healthcare, Novartis offers a diversified portfolio to best
meet these needs: innovative medicines, cost-saving generic pharmaceuticals,
preventive vaccines and diagnostic tools, and consumer health products.
Novartis is the only company with leading positions in these areas. In 2007,
the Group's continuing operations (excluding divestments in 2007) achieved net
sales of USD 38.1 billion and net income of USD 6.5 billion. Approximately USD
6.4 billion was invested in R&D activities throughout the Group. Headquartered
in Basel, Switzerland, Novartis Group companies employ approximately 98,200
full-time associates and operate in over 140 countries around the world. For
more information, please visit http://www.novartis.com.

Novartis Media Relations

Pam McKinlay Anna Frable
Novartis Corporate Communications Novartis Pharma Communications
+1 212 830 2465 (direct) +1 862 778 5388 (direct)
+1 862 221 0151 (mobile) +1 732 673 5262 (mobile)
pamela.mckinlay@novartis.com anna.frable@novartis.com

e-mail: media.relations@novartis.com

SOURCE Novartis Pharmaceuticals Corporation

Pam McKinlay of Novartis Corporate Communications, +1-212-830-2465 (direct) or
+1-862-221-0151 (mobile), pamela.mckinlay@novartis.com or Anna Frable of
Novartis Pharma Communications, +1-862-778-5388 (direct) or +1-732-673-5262
(mobile), anna.frable@novartis.com