Strong Double-Digit Net Sales Growth and Solid Earnings Growth Highlight First Quarter for Bristol-Myers Squi...(related to implementation of the P...)

of the PTI in 2008, compared to $16 million, or 0.4% of net sales, in

2007. Excluding these charges, gross margin improved due to a favorable

pharmaceutical product mix.

-- Marketing, selling and administrative expenses increased by 8% to $1.2

billion in the first quarter of 2008 compared to the same period in

2007, primarily due to unfavorable foreign exchange impact and higher

selling expenses in support of key products. General and administrative

expenses decreased from 2007 levels resulting from the company's

ongoing productivity initiatives, offset by implementation costs of the

initiatives.

-- Advertising and product promotion spending increased by 23% to $330

million in the first quarter of 2008 from $268 million in the same

period in 2007, primarily due to increased promotion of new indications

for ABILIFY(R) in the United States and Europe and increased investment

to support PLAVIX(R) and ORENCIA(R).

-- Research and development expenses increased 1% to $795 million in the

first quarter of 2008 from $791 million in the same period in 2007. The

increase primarily reflects increased development spending for pipeline

compounds partially offset by higher licensing upfront payments in

2007.

INCOME TAX

The effective tax rate on earnings from continuing operations before minority interest and income taxes was 27.8% for the three months ended March 31, 2008, compared with 8.0% in the first quarter of 2007. The first quarter 2007 effective tax rate included $105 million of benefit due to a favorable resolution of certain tax matters, including a $39 million benefit related to a 2006 specified item. 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
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