Sales of $15.9 Billion Increased 6.4% Versus a Year Ago; EPS was $1.17 Excluding 2007 Special Items, 2008 Third-Quarter EPS Increased 10.4%* NEW BRUNSWICK, N.J., Oct. 14 /PRNewswire-FirstCall/ -- Johnson & Johnson today announced sales of $15.9 billion for the third quarter of 2008, an increase of 6.4% as compared to the third quarter of 2007. Operational growth was 3.3% and the positive impact of currency was 3.1%. Domestic sales were up .4%, while international sales increased 13.1%, reflecting operational growth of 6.5% and a positive currency impact of 6.6%. Net earnings and diluted earnings per share for the third quarter of 2008 were $3.3 billion and $1.17, respectively. The third quarter of 2007 included an after-tax restructuring charge of $528 million associated with a cost improvement program. Excluding this charge, net earnings for the current quarter and diluted earnings per share represent increases of 7.6% and 10.4 %, respectively, as compared to the same period in 2007. * The Company increased its earnings guidance for full-year 2008 to $4.50 - $4.53 per share, which does not include the impact of any in-process research and development charges or other special items. "Johnson & Johnson continues to achieve solid earnings results despite the impact that generic products have had on our Pharmaceutical business," said William C. Weldon, Chairman and Chief Executive Officer. "Of note was the strong sales performance of our Consumer segment and the solid sales results in our Medical Devices and Diagnostics segment." Worldwide Consumer sales of $4.1 billion for the third quarter represented a 13.1% increase over the prior year with operational growth of 9.4% and a positive impact from currency of 3.7%. Domestic sales increased 11.2%, while international sales increased 14.7%; 8.1% from operations and 6.6% from currency. Sales results reflect the strong performance of the U.S. launch of ZYRTEC, an over-the-counter allergy treatment; LISTERINE antiseptic mouthrinse; international sales of Baby Care products; and the skin care lines of NEUTROGENA, CLEAN & CLEAR and AVEENO. Also contributing to growth were sales of DABAO, the leading moisturizer in China, which was acquired as part of the recently completed acquisition of Beijing Dabao Cosmetics Co., Ltd., a personal care products company. Worldwide Medical Devices and Diagnostics sales of $5.7 billion for the third quarter represented an 8.8% increase over the prior year with operational growth of 5.6% and a positive impact from currency of 3.2%. Domestic sales increased 3.1%, while international sales increased 14.3%; 8.0% from operations and 6.3% from currency. Primary contributors to the operational growth included Diabetes Care's blood glucose monitoring and insulin delivery products; Ethicon Endo-Surgery's minimally invasive products; Vistakon's disposable contact lenses; Ortho-Clinical Diagnostics' professional products; and DePuy's orthopaedic joint reconstruction, sports medicine and trauma businesses. This growth was partially offset by lower sales in the Cordis franchise, reflecting new competitive entries in the drug-eluting stent market. During the quarter, the Company announced that it had entered into a definitive agreement to acquire SurgRx, a privately held developer of the advanced bipolar tissue sealing system used in the EnSeal family of devices. Worldwide Pharmaceutical sales of $6.1 billion for the third quarter represented an increase over the prior year of .2% with an operational decline of 2.5% and a positive impact from currency of 2.7%. Domestic sales decreased 6.0%, while international sales increased 10.3%; 3.3% from operations and 7.0% from currency. Sales growth reflects the strong performance of VELCADE, a treatment for multiple myeloma; REMICADE, a biologic approved for the treatment of a number of immune mediated inflammatory diseases; TOPAMAX, an antiepileptic and a treatment for the prevention of migraine headaches; and RISPERDAL CONSTA, an antipsychotic medication. Sales results of RISPERDAL were negatively impacted by generic competition. During the quarter, the European Commission granted marketing authorization for INTELENCE, a next generation non-nucleoside reverse transcriptase inhibitor; DORIBAX, an antibiotic used as a treatment for complicated urinary tract infections, complicated intra-abdominal infections, and nosocomial pneumonia including ventilator-associated pneumonia; and for VELCADE, in combination with melphalan and prednisone, for the treatment of patients with previously untreated multiple myeloma. In addition, the Company submitted a New Drug Application to the U.S. Food and Drug Administration (FDA) for rivaroxaban, an investigational, oral, once daily anticoagulant for the prevention of deep vein thrombosis and pulmonary embolism in patients undergoing hip or knee replacement surgery. The Company also submitted a supplemental new drug application to the FDA for the combination of DOXIL and Taxotere(R) for the treatment of women with advanced breast cancer who have received prior anthracycline treatment. In July, the FDA granted pediatric exclusivity for TOPAMAX extending the marketing exclusivity through March 2009. About Johnson & Johnson Caring for the world, one person at a time...inspires and unites the people of Johnson & Johnson. We embrace research and science - bringing innovative ideas, products and services to advance the health and well-being of people. Our 119,400 employees at more than 250 Johnson & Johnson companies work with partners in health care to touch the lives of over a billion people every day, throughout the world. * Net earnings and diluted earnings per share excluding special items, such as after-tax in-process research and development charges and restructuring charges, are non-GAAP financial measures and should not be considered replacements for GAAP results. For a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures, see the accompanying tables to this release. NOTE TO INVESTORS Johnson & Johnson will conduct a meeting with financial analysts to discuss this news release today at 8:30 a.m., Eastern Time. A simultaneous webcast of the meeting for investors and other interested parties may be accessed by visiting the Johnson & Johnson website at http://www.investor.jnj.com/. A replay and podcast will be available approximately two hours after the live webcast by visiting http://www.investor.jnj.com/. Copies of the financial schedules accompanying this press release are available at http://www.investor.jnj.com/historical-sales.cfm. The schedules include supplementary sales data, a condensed consolidated statement of earnings, and sales of key products/franchises. Additional information on Johnson & Johnson can be found on the Company's website at http://www.jnj.com/. (This press release contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or unknown risks or uncertainties materialize, actual results could vary materially from Johnson & Johnson's expectations and projections. Risks and uncertainties include general industry conditions and competition; economic conditions, such as interest rate and currency exchange rate fluctuations; technological advances and patents attained by competitors; challenges inherent in new product development, including obtaining regulatory approvals; domestic and foreign health care reforms and governmental laws and regulations; and trends toward health care cost containment. A further list and description of these risks, uncertainties and other factors can be found in Exhibit 99 of the Company's Annual Report on Form 10-K for the fiscal year ended December 30, 2007. Copies of this Form 10-K, as well as subsequent filings, are available online at http://www.sec.gov/, http://www.jnj.com/ or on request from Johnson & Johnson. Johnson & Johnson does not undertake to update any forward-looking statements as a result of new information or future events or developments.) Johnson & Johnson and Subsidiaries ---------------------------------- Supplementary Sales Data (Unaudited; Dollars in Millions) THIRD QUARTER -------------------------------- ------------- Percent Change ---- ---- -------------- 2008 2007 Total Operations Currency --------------------- ---- ---- ----- ---------- -------- Sales to customers by segment of business Consumer U.S. $1,769 1,591 11.2% 11.2 - International 2,330 2,032 14.7 8.1 6.6 ----------------- ----- ----- ---- --- --- 4,099 3,623 13.1 9.4 3.7 ----- ----- ---- --- --- Pharmaceutical U.S. 3,538 3,765 (6.0) (6.0) - International 2,575 2,334 10.3 3.3 7.0 ----------------- ----- ----- ---- --- --- 6,113 6,099 0.2 (2.5) 2.7 ----- ----- --- ---- --- Med Devices & Diagnostics U.S. 2,648 2,569 3.1 3.1 - International 3,061 2,679 14.3 8.0 6.3 ----------------- ----- ----- ---- --- --- 5,709 5,248 8.8 5.6 3.2 ----- ----- --- --- --- U.S. 7,955 7,925 0.4 0.4 - International 7,966 7,045 13.1 6.5 6.6 ------------- ----- ----- ---- --- --- Worldwide $15,921 14,970 6.4% 3.3 3.1 --------- ------- ------ --- --- --- (Unaudited; Dollars in Millions) NINE MONTHS -------------------------------- ----------- Percent Change ---- ---- -------------- 2008 2007 Total Operations Currency --------------------- ---- ---- ----- ---------- -------- Sales to customers by segment of business Consumer U.S. $5,282 4,782 10.5% 10.5 - International 6,917 5,901 17.2 7.3 9.9 ----------------- ----- ----- ---- --- --- 12,199 10,683 14.2 8.7 5.5 ------ ------ ---- --- --- Pharmaceutical U.S. 11,401 11,659 (2.2) (2.2) - International 7,481 6,810 9.9 - 9.9 ----------------- ----- ----- --- - --- 18,882 18,469 2.2 (1.5) 3.7 ------ ------ --- ---- --- Med Devices & Diagnostics U.S. 7,959 7,772 2.4 2.4 - International 9,525 8,214 16.0 6.0 10.0 ----------------- ----- ----- ---- --- ---- 17,484 15,986 9.4 4.3 5.1 ------ ------ --- --- --- U.S. 24,642 24,213 1.8 1.8 - International 23,923 20,925 14.3 4.3 10.0 ------------- ------ ------ ---- --- ---- Worldwide $48,565 45,138 7.6% 3.0 4.6 --------- ------- ------ --- --- --- Johnson & Johnson and Subsidiaries ---------------------------------- Supplementary Sales Data (Unaudited; Dollars in Millions) THIRD QUARTER -------------------------------- ------------- Percent Change ---- ---- -------------- 2008 2007 Total Operations Currency ---- ---- ----- ---------- -------- Sales to customers by geographic area U.S. $7,955 7,925 0.4% 0.4 - ---- ------ ----- --- --- - Europe 4,076 3,765 8.3 1.0 7.3 Western Hemisphere excluding U.S. 1,461 1,195 22.3 15.3 7.0 Asia-Pacific, Africa 2,429 2,085 16.5 11.3 5.2 -------------------- ----- ----- ---- ---- --- International 7,966 7,045 13.1 6.5 6.6 ------------- ----- ----- ---- --- --- Worldwide $15,921 14,970 6.4% 3.3 3.1 --------- ------- ------ --- --- --- (Unaudited; Dollars in Millions) NINE MONTHS -------------------------------- ----------- Percent Change ---- ---- -------------- 2008 2007 Total Operations Currency ---- ---- ----- ---------- -------- Sales to customers by geographic area U.S. $24,642 24,213 1.8% 1.8 - ---- ------- ------ --- --- - Europe 12,931 11,485 12.6 1.4 11.2 Western Hemisphere excluding U.S. 3,986 3,372 18.2 8.4 9.8 Asia-Pacific, Africa 7,006 6,068 15.5 7.8 7.7 -------------------- ----- ----- ---- --- --- International 23,923 20,925 14.3 4.3 10.0 ------------- ------ ------ ---- --- ---- Worldwide $48,565 45,138 7.6% 3.0 4.6 --------- ------- ------ --- --- --- Johnson & Johnson and Subsidiaries Condensed Consolidated Statement of Earnings ------------------------------------------------ (Unaudited; in Millions Except Per Share Figures) THIRD QUARTER ---------------------------------- ------------- 2008 2007 ---- ---- Percent Percent Percent Increase Amount to Sales Amount to Sales (Decrease) ------------------ ------ -------- ------ -------- --------- Sales to customers $15,921 100.0 $14,970 100.0 6.4 ------------------ ------- ----- ------- ----- --- Cost of products sold 4,774 30.0 4,274 28.5 11.7 Selling, marketing and administrative expenses 5,195 32.6 4,899 32.7 6.0 Research expense 1,861 11.7 1,834 12.3 1.5 Restructuring - - 745 5.0 Interest (income) expense, net 25 0.2 (52) (0.3) Other (income) expense, net (224) (1.4) 2 - -------------- ---- ---- - - ---- Earnings before provision for taxes on income 4,290 26.9 3,268 21.8 31.3 Provision for taxes on income 980 6.1 720 4.8 36.1 ------------------- --- --- --- --- ---- Net earnings $3,310 20.8 $2,548 17.0 29.9 ------------ ------ ---- ------ ---- ---- Net earnings per share (Diluted) $1.17 $0.88 33.0 Average shares outstanding (Diluted) 2,831.3 2,912.9 Effective tax rate 22.8% 22.0% ------------------ Adjusted earnings before provision for taxes and net earnings Earnings before provision for taxes on income $4,290 26.9 $4,013 (1) 26.8 6.9 Net earnings $3,310 20.8 $3,076 (1) 20.5 7.6 Net earnings per share (Diluted) $1.17 $1.06 (1) 10.4 Effective tax rate 22.8% 23.3% --------------- ---- ---- (1) The difference between as reported earnings and as adjusted earnings before provision for taxes on income, net earnings and net earnings per share (diluted) is the exclusion of the restructuring expense of $745 million, $528 million and $0.18 per share, respectively. Johnson & Johnson and Subsidiaries Condensed Consolidated Statement of Earnings ------------------------------------------------ (Unaudited; in Millions Except Per Share Figures) NINE MONTHS ---------------------------------- ----------- 2008 2007 ---- ---- Percent Percent Percent Increase Amount to Sales Amount to Sales (Decrease) ------------------ ------ -------- ------ -------- ---------- Sales to customers $48,565 100.0 $45,138 100.0 7.6 ------------------ ------- ----- ------- ----- --- Cost of products sold 14,139 29.1 13,017 28.8 8.6 Selling, marketing and administrative expenses 15,825 32.6 14,730 32.6 7.4 Research expense 5,469 11.3 5,352 11.9 2.2 In-process research & development 40 0.1 807 1.8 Restructuring - - 745 1.7 Interest (income) expense, net 57 0.1 (121) (0.3) Other (income) expense, net (377) (0.8) (343) (0.8) -------------- ---- ---- ---- ---- ---- Earnings before provision for taxes on income 13,412 27.6 10,951 24.3 22.5 Provision for taxes on income 3,177 6.5 2,749 6.1 15.6 ------------------- ----- --- ----- --- ---- Net earnings $10,235 21.1 $8,202 18.2 24.8 ------------ ------- ---- ------ ---- ---- Net earnings per share (Diluted) $3.60 $2.81 28.1 Average shares outstanding (Diluted) 2,847.8 2,919.3 Effective tax rate 23.7% 25.1% ------------------ Adjusted earnings before provision for taxes and net earnings Earnings before provision for taxes on income $13,452 (1) 27.7 $12,503 (2) 27.7 7.6 Net earnings $10,275 (1) 21.2 $9,537 (2) 21.1 7.7 Net earnings per share (Diluted) $3.61 (1) $3.27 (2) 10.4 Effective tax rate 23.6% 23.7% --------------- ---- ---- (1) The difference between as reported earnings and as adjusted earnings before provision for taxes on income and net earnings and net earnings per share (diluted) is IPR&D of $40 million with no tax benefit and $0.01 per share, respectively. (2) The difference between as reported earnings and as adjusted earnings before provision for taxes on income, net earnings and net earnings per share (diluted) is the exclusion of IPR&D of $807 million with no tax benefit and $0.28 per share, respectively, and the exclusion of the restructuring expense of $745 million, $528 million and $0.18 per share, respectively. REPORTED SALES vs. PRIOR PERIOD ------------------------------- $MM --- THIRD QUARTER % Change 2008 2007 Reported Operational (1) Currency ---- ---- -------- --------------- -------- PHARMACEUTICAL SEGMENT (2) (3) ------------------------------- ACIPHEX/PARIET -------------- US 130 159 -18.2% -18.2% - Intl 152 179 -15.1% -19.6% 4.5% WW 282 338 -16.6% -19.0% 2.4% CONCERTA -------- US 190 177 7.3% 7.3% - Intl 208 54 285.2% 260.0% 25.2% WW 398 231 72.3% 66.4% 5.9% DURAGESIC/FENTANYL TRANSDERMAL ------------------------------ US 54 107 -49.5% -49.5% - Intl 205 202 1.5% -5.4% 6.9% WW 259 309 -16.2% -20.7% 4.5% LEVAQUIN/FLOXIN --------------- US 313 352 -11.1% -11.1% - Intl 20 19 5.3% 1.4% 3.9% WW 333 371 -10.2% -10.4% 0.2% PROCRIT/EXPREX -------------- US 334 380 -12.1% -12.1% - Intl 285 302 -5.6% -11.8% 6.2% WW 619 682 -9.2% -11.9% 2.7% RAZADYNE/REMINYL ---------------- US 31 43 -27.9% -27.9% - Intl 107 87 23.0% 14.9% 8.1% WW 138 130 6.2% 0.7% 5.5% REMICADE -------- US 778 648 20.1% 20.1% - US Exports (4) 198 171 15.8% 15.8% - Intl 2 - 100.0% 100.0% - WW 978 819 19.4% 19.4% - RISPERDAL/RISPERIDONE ---------------------- US 122 530 -77.0% -77.0% - Intl 198 301 -34.2% -38.4% 4.2% WW 320 831 -61.5% -63.0% 1.5% RISPERDAL CONSTA ---------------- US 118 111 6.3% 6.3% - Intl 220 183 20.2% 11.9% 8.3% WW 338 294 15.0% 9.8% 5.2% TOPAMAX ------- US 606 498 21.7% 21.7% - Intl 122 115 6.1% -0.3% 6.4% WW 728 613 18.8% 17.6% 1.2% VELCADE ------- US 1 2 -50.0% -50.0% 0.0% Intl 189 128 47.7% 38.3% 9.4% WW 190 130 46.2% 36.9% 9.3% OTHER ----- US 663 587 12.9% 12.9% - Intl 867 764 13.5% 4.8% 8.7% WW 1,530 1,351 13.2% 8.3% 4.9% TOTAL PHARMACEUTICAL -------------------- US 3,538 3,765 -6.0% -6.0% - Intl 2,575 2,334 10.3% 3.3% 7.0% WW 6,113 6,099 0.2% -2.5% 2.7% NINE MONTHS % Change 2008 2007 Reported Operational (1) Currency ---- ---- -------- --------------- -------- PHARMACEUTICAL SEGMENT (2) (3) ------------------------------- ACIPHEX/PARIET -------------- US 399 479 -16.7% -16.7% - Intl 485 531 -8.7% -17.0% 8.3% WW 884 1,010 -12.5% -16.9% 4.4% CONCERTA -------- US 622 576 8.0% 8.0% - Intl 345 163 111.7% 95.3% 16.4% WW 967 739 30.9% 27.3% 3.6% DURAGESIC/FENTANYL TRANSDERMAL ------------------------------ US 199 319 -37.6% -37.6% - Intl 565 581 -2.8% -11.9% 9.1% WW 764 900 -15.1% -21.0% 5.9% LEVAQUIN/FLOXIN --------------- US 1,117 1,155 -3.3% -3.3% - Intl 63 59 6.8% 1.8% 5.0% WW 1,180 1,214 -2.8% -3.0% 0.2% PROCRIT/EXPREX -------------- US 1,014 1,359 -25.4% -25.4% - Intl 886 898 -1.3% -11.3% 10.0% WW 1,900 2,257 -15.8% -19.8% 4.0% RAZADYNE/REMINYL ---------------- US 123 145 -15.2% -15.2% - Intl 316 245 29.0% 16.1% 12.9% WW 439 390 12.6% 4.5% 8.1% REMICADE -------- US 2,138 1,873 14.1% 14.1% - US Exports (4) 718 546 31.5% 31.5% - Intl 6 - 100.0% 100.0% - WW 2,862 2,419 18.3% 18.3% - RISPERDAL/RISPERIDONE ---------------------- US 1,196 1,629 -26.6% -26.6% - Intl 645 917 -29.7% -36.2% 6.5% WW 1,841 2,546 -27.7% -30.0% 2.3% RISPERDAL CONSTA ---------------- US 339 314 8.0% 8.0% - Intl 651 519 25.4% 13.2% 12.2% WW 990 833 18.8% 11.2% 7.6% TOPAMAX ------- US 1,674 1,471 13.8% 13.8% - Intl 377 330 14.2% 4.2% 10.0% WW 2,051 1,801 13.9% 12.1% 1.8% VELCADE ------- US 4 5 -20.0% -20.0% - Intl 575 364 58.0% 44.8% 13.2% WW 579 369 56.9% 43.9% 13.0% OTHER ----- US 1,858 1,788 3.9% 3.9% - Intl 2,567 2,203 16.5% 4.1% 12.4% WW 4,425 3,991 10.9% 4.1% 6.8% TOTAL PHARMACEUTICAL -------------------- US 11,401 11,659 -2.2% -2.2% - Intl 7,481 6,810 9.9% 0.0% 9.9% WW 18,882 18,469 2.2% -1.5% 3.7% (1) Operational growth excludes the effect of currency (2) Select areas (unaudited) (3) Prior year amounts have been reclassified to conform with current presentation (4) For external purposes, reported as U.S. sales THIRD QUARTER % Change 2008 2007 Reported Operational (1) Currency ---- ---- -------- --------------- -------- MEDICAL DEVICES AND DIAGNOSTICS (2) (3) CORDIS (4) ---------- US 277 373 -25.7% -25.7% - Intl 449 404 11.1% 4.2% 6.9% WW 726 777 -6.6% -10.2% 3.6% DEPUY ----- US 680 636 6.9% 6.9% - Intl 515 450 14.4% 9.6% 4.8% WW 1,195 1,086 10.0% 8.0% 2.0% DIABETES CARE ------------- US 349 321 8.7% 8.7% - Intl 318 264 20.5% 12.3% 8.2% WW 667 585 14.0% 10.3% 3.7% ETHICON (5) ----------- US 372 350 6.3% 6.3% - Intl 585 531 10.2% 4.5% 5.7% WW 957 881 8.6% 5.2% 3.4% ETHICON ENDO-SURGERY -------------------- US 473 440 7.5% 7.5% - Intl 569 482 18.0% 11.4% 6.6% WW 1,042 922 13.0% 9.5% 3.5% ORTHO-CLINICAL DIAGNOSTICS (5) ------------------------------ US 261 235 11.1% 11.1% - Intl 209 185 13.0% 6.4% 6.6% WW 470 420 11.9% 9.0% 2.9% VISION CARE ----------- US 236 214 10.3% 10.3% - Intl 416 363 14.6% 8.3% 6.3% WW 652 577 13.0% 9.0% 4.0% TOTAL MEDICAL DEVICES AND DIAGNOSTICS ------------------------------------- US 2,648 2,569 3.1% 3.1% - Intl 3,061 2,679 14.3% 8.0% 6.3% WW 5,709 5,248 8.8% 5.6% 3.2% NINE MONTHS % Change 2008 2007 Reported Operational (1) Currency ---- ---- -------- --------------- -------- CORDIS (4) ---------- US 982 1,194 -17.8% -17.8% - Intl 1,431 1,363 5.0% -4.6% 9.6% WW 2,413 2,557 -5.6% -10.7% 5.1% DEPUY ----- US 2,076 1,977 5.0% 5.0% - Intl 1,661 1,401 18.6% 9.1% 9.5% WW 3,737 3,378 10.6% 6.7% 3.9% DIABETES CARE ------------- US 990 923 7.3% 7.3% - Intl 966 807 19.7% 8.0% 11.7% WW 1,956 1,730 13.1% 7.6% 5.5% ETHICON (5) ----------- US 1,087 1,046 3.9% 3.9% - Intl 1,835 1,613 13.8% 4.2% 9.6% WW 2,922 2,659 9.9% 4.1% 5.8% ETHICON ENDO-SURGERY -------------------- US 1,386 1,311 5.7% 5.7% - Intl 1,783 1,459 22.2% 11.3% 10.9% WW 3,169 2,770 14.4% 8.7% 5.7% ORTHO-CLINICAL DIAGNOSTICS (5) ------------------------------ US 749 699 7.2% 7.2% - Intl 640 550 16.4% 6.0% 10.4% WW 1,389 1,249 11.2% 6.6% 4.6% VISION CARE ----------- US 689 622 10.8% 10.8% - Intl 1,209 1,021 18.4% 9.0% 9.4% WW 1,898 1,643 15.5% 9.6% 5.9% TOTAL MEDICAL DEVICES AND DIAGNOSTICS ------------------------------------- US 7,959 7,772 2.4% 2.4% - Intl 9,525 8,214 16.0% 6.0% 10.0% WW 17,484 15,986 9.4% 4.3% 5.1% (1) Operational growth excludes the effect of currency (2) Select areas (unaudited) (3) Prior year amounts have been reclassified to conform with current presentation (4) Includes sales of Drug-Eluting Stents for Q3 2008 of $97, $192 and $289 million Domestic, International and Worldwide respectively Includes sales of Drug-Eluting Stents for Q3 2007 of $184, $193 and $377 million Domestic, International and Worldwide respectively Includes sales of Drug-Eluting Stents for Sept YTD 2008 of $433, $650 and $1,083 million Domestic, International and Worldwide respectively Includes sales of Drug-Eluting Stents for Sept YTD 2007 of $629, $718 and $1,347 million Domestic, International and Worldwide respectively (5) Restated to include portion of sales previously reported in the "Other" category THIRD QUARTER % Change 2008 2007 Reported Operational (1) Currency ---- ---- -------- --------------- -------- CONSUMER SEGMENT (2) --------------------- SKIN CARE --------- US 358 311 15.1% 15.1% - Intl 500 426 17.4% 9.7% 7.7% WW 858 737 16.4% 12.0% 4.4% BABY CARE --------- US 114 113 0.9% 0.9% - Intl 472 398 18.6% 11.7% 6.9% WW 586 511 14.7% 9.4% 5.3% ORAL CARE --------- US 204 211 -3.3% -3.3% - Intl 230 185 24.3% 18.1% 6.2% WW 434 396 9.6% 6.7% 2.9% OTC/NUTRITIONALS ---------------- US 778 653 19.1% 19.1% - Nutritionals Intl 661 611 8.2% 2.9% 5.3% WW 1,439 1,264 13.8% 11.3% 2.5% WOMEN'S HEALTH -------------- US 164 149 10.1% 10.1% - Intl 346 312 10.9% 3.3% 7.6% WW 510 461 10.6% 5.5% 5.1% WOUND CARE / OTHER ------------------ US 151 154 -1.9% -1.9% - Intl 121 100 21.0% 13.6% 7.4% WW 272 254 7.1% 4.2% 2.9% TOTAL CONSUMER -------------- US 1,769 1,591 11.2% 11.2% - Intl 2,330 2,032 14.7% 8.1% 6.6% WW 4,099 3,623 13.1% 9.4% 3.7% NINE MONTHS % Change 2008 2007 Reported Operational (1) Currency ---- ---- -------- --------------- -------- SKIN CARE --------- US 1,119 1,006 11.2% 11.2% - Intl 1,418 1,252 13.3% 3.5% 9.8% WW 2,537 2,258 12.4% 6.9% 5.5% BABY CARE --------- US 340 328 3.7% 3.7% - Intl 1,351 1,117 20.9% 11.6% 9.3% WW 1,691 1,445 17.0% 9.8% 7.2% ORAL CARE --------- US 588 600 -2.0% -2.0% - Intl 640 509 25.7% 16.3% 9.4% WW 1,228 1,109 10.7% 6.4% 4.3% OTC/NUTRITIONALS ---------------- US 2,299 1,892 21.5% 21.5% - Intl 2,139 1,835 16.6% 6.6% 10.0% WW 4,438 3,727 19.1% 14.2% 4.9% WOMEN'S HEALTH -------------- US 470 475 -1.1% -1.1% - Intl 1,005 870 15.5% 4.9% 10.6% WW 1,475 1,345 9.7% 2.9% 6.8% WOUND CARE / OTHER ------------------ US 466 481 -3.1% -3.1% - Intl 364 318 14.5% 4.1% 10.4% WW 830 799 3.9% -0.3% 4.2% TOTAL CONSUMER -------------- US 5,282 4,782 10.5% 10.5% - Intl 6,917 5,901 17.2% 7.3% 9.9% WW 12,199 10,683 14.2% 8.7% 5.5% (1) Operational growth excludes the effect of currency (2) Select areas (unaudited) DATASOURCE: Johnson & Johnson CONTACT: media, Jeffrey J. Leebaw, +1-732-524-3350, or +1-732-642-6608 (M), or Bill Price, +1-732-524-6623, or +1-732-668-3735 (M); investors, Louise Mehrotra, +1-732-524-6491, or Stan Panasewicz, +1-732-524-2524, or Lesley Fishman, +1-732-524-3922, or Tina Pinto, +1-732-524-2034, all for Johnson & Johnson Web Site: http://www.jnj.com/ http://www.investor.jnj.com/ http://www.investor.jnj.com/historical-sales.cfm

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