Abbott Reports 15.5 Percent Sales Growth in First Quarter

- Double-Digit Sales Growth in Both Pharmaceuticals and Medical Products -

ABBOTT PARK, Ill., April 18, 2007 /PRNewswire-FirstCall/ -- Abbott today announced financial results for the first quarter ended March 31, 2007.

    -- Abbott's diluted earnings per share, excluding specified items, were

       $0.55, including results from Discontinued Operations, ahead of

       Abbott's previously announced guidance range of $0.51 to $0.53, which

       also included Discontinued Operations. Higher TAP joint venture income,

       resulting from a favorable outcome in a patent dispute, impacted

       earnings per share by $0.02. Abbott is raising its full-year ongoing

       earnings-per-share guidance. Diluted earnings per share under Generally

       Accepted Accounting Principles (GAAP) were $0.45.


    -- Worldwide sales increased 15.5 percent to $5.3 billion, including the

       impact of acquisitions and a favorable 2.5 percent effect of exchange

       rates.


    -- Worldwide pharmaceutical sales increased 16.6 percent, including U.S.

       sales growth of 16.8 percent, driven by strong growth in HUMIRA, as

       well as the first full quarter of sales from the Kos Pharmaceuticals

       acquisition. International pharmaceutical sales increased 16.4 percent,

       including the impact of exchange, led by double-digit growth of

       Kaletra(R) and more than 60 percent growth of HUMIRA. Abbott continues

       to expect 2007 global sales of HUMIRA to exceed $2.7 billion.


    -- Medical Products sales increased 13.9 percent, including $420 million

       from Abbott Vascular and double-digit growth in International

       Nutritionals and Abbott Molecular. In March, Abbott presented U.S.

       clinical trial data on its XIENCE(TM) V drug-eluting stent system and

       remains on track to file for U.S. regulatory approval in the second

       quarter of this year.


"Our businesses continue to perform well and our outlook remains strong," said Miles D. White, chairman and chief executive officer, Abbott. "Our late- stage pipeline is generating significant opportunities across our diverse portfolio, giving us great confidence in our future."

The following is a summary of first-quarter 2007 sales for each of Abbott's major operating divisions.

                                                                  Impact of

    Sales Summary -                           1Q07    % Change   Exchange on

     Quarter Ended 3/31/07              ($ millions)  vs. 1Q06    % Change



    Total Sales                              $5,290       15.5        2.5


      Total U.S. Sales                       $2,763       10.3        ---


      Total International Sales              $2,527       21.8        5.5


    Worldwide Pharmaceutical Sales           $3,373       16.6        2.8


      U.S. Pharmaceuticals                   $1,692       16.8        ---


      International Pharmaceuticals (AI)     $1,681       16.4        5.6


    Worldwide Nutritional Sales              $1,002      (12.3)(a)    1.0


      U.S. Nutritionals (Ross)                 $565      (25.3)(a)    ---


      International Nutritionals (ANI)         $437       13.4        2.9


    Worldwide Vascular Sales                   $420      407.9 (b)    2.7


       U.S. Vascular                           $244      360.2 (b)    ---


       International Vascular                  $176      492.9 (b)    7.4



    (a)  Reflects completion of U.S. co-promotion of Synagis in 2006.

         Excluding this impact, U.S. Nutritionals increased 6.0 percent and

         Worldwide Nutritionals increased 9.1 percent.


    (b)  Includes the impact of the Guidant vascular acquisition.


    Note:  See "Consolidated Statement of Earnings" for more information.



    The following is a summary of Abbott's first-quarter 2007 sales for

selected products.


    Quarter Ended 3/31/07          Percent          Percent           Percent

    (dollars in millions)    U.S.   Change  Rest of  Change   Global   Change

                            Sales  vs. 1Q06  World  vs. 1Q06   Sales  vs. 1Q06

    Pharmaceutical Products

    HUMIRA                   $289    32.4     $282   62.2 (a)   $571    45.6

    Depakote                 $305    33.4      $21   22.2       $326    32.6

    Kaletra                  $117    (2.4)    $183   14.5 (b)   $300     7.2

    Biaxin (clarithromycin)    $7   (85.2)    $217    9.5 (c)   $224    (9.9)

    TriCor                   $223     8.7      ---    ---       $223     8.7

    Ultane/Sevorane           $48   (41.3)    $126    0.7 (d)   $174   (16.0)

    Omnicef                  $161    12.5      ---    ---       $161    12.5

    Niaspan                  $142     n/a      ---    ---       $142     n/a

    Synthroid                $112     0.5      $17   14.6       $129     2.2


    Nutritional Products

    Pediatric Nutritionals   $292     7.1     $235   17.9       $527    11.6

    Adult Nutritionals       $261     2.8     $201    8.6 (e)   $462     5.3


    Medical Products

    Abbott Diabetes Care     $131    (5.8)    $154   14.5 (f)   $285     4.1

    Coronary Stents           $85     n/m      $75    n/m       $160     n/m

    Other Coronary            $90     n/m      $72    n/m       $162     n/m

    Endovascular              $69    76.9      $29  107.1        $98    84.9


    TAP Pharmaceutical Products

     (not consolidated in

     Abbott's sales)

    Prevacid                 $573    (7.1)     ---    ---       $573    (7.1)

    Lupron                   $165    (1.8)     ---    ---       $165    (1.8)



    (a) Without the positive impact of exchange of 13.0 percent, HUMIRA sales

        increased 49.2 percent internationally.

    (b) Without the positive impact of exchange of 6.8 percent, Kaletra sales

        increased 7.7 percent internationally.

    (c) Without the positive impact of exchange of 4.7 percent, clarithromycin

        sales increased 4.8 percent internationally.

    (d) Without the positive impact of exchange of 4.7 percent, Sevorane sales

        decreased 4.0 percent internationally.

    (e) Without the positive impact of exchange of 3.8 percent, Adult

        Nutritionals sales increased 4.8 percent internationally.

    (f) Without the positive impact of exchange of 7.6 percent, Abbott

        Diabetes Care sales increased 6.9 percent internationally.


    n/a = Percent change is not applicable due to the acquisition of Niaspan

          in the fourth-quarter 2006.

    n/m = Percent change is not meaningful.



    Business Highlights


    -- Global Regulatory Submission for HUMIRA(R) in Psoriasis - Abbott

       recently submitted HUMIRA for U.S. and European regulatory approval to

       treat psoriasis, a chronic autoimmune disease affecting the skin.

       During the quarter, Abbott presented new Phase III psoriasis data that

       demonstrated that nearly three out of four psoriasis patients

       experienced a significant reduction in disease signs when treated with

       HUMIRA. The study also showed that patients are significantly less

       likely to have their disease signs worsen if they maintain treatment

       with HUMIRA. These data are consistent with results from an earlier

       Phase III trial presented in 2006. Both of these studies formed the

       basis of the global submissions.


    -- HUMIRA Crohn's Disease Approval and Launch - Abbott received U.S. Food

       and Drug Administration (FDA) approval for HUMIRA to treat Crohn's

       disease, the fourth disease state indication for HUMIRA. Crohn's

       disease is a serious chronic, inflammatory disease of the

       gastrointestinal tract with onset typically before age 40. Abbott also

       expects European regulatory approval for Crohn's disease in the second

       quarter of 2007.


    -- Biologics Manufacturing Plant in Puerto Rico - In April, Abbott

       announced the official opening of its new state-of-the-art biologics

       manufacturing facility in Puerto Rico to support the long-term supply

       of HUMIRA and other future biologics. The new facility received FDA

       approval in February to produce HUMIRA.


    -- XIENCE(TM) V SPIRIT Data - In March, Abbott presented data from its

       U.S. pivotal drug-eluting stent trial, SPIRIT III, demonstrating

       superiority of its XIENCE V everolimus-eluting stent system over the

       TAXUS(R) paclitaxel-eluting coronary stent system with respect to the

       study's primary endpoint of in-segment late loss and a secondary

       endpoint of reduction in major adverse cardiac events (MACE) after nine

       months. This was the first time that superiority for MACE was

       demonstrated in a head-to-head trial of two drug-eluting stents. Abbott

       also presented one-year data from its SPIRIT II European trial, which

       also demonstrated superiority to TAXUS in MACE.


    -- Bioabsorbable Stent Data - Abbott presented six-month clinical

       follow-up data from ABSORB, the world's first clinical trial of a fully

       bioabsorbable drug-eluting coronary stent system. Results from the

       first 30 patients in the study demonstrated an encouraging efficacy and

       safety profile, with no stent thrombosis and a low MACE rate.


    -- New Niaspan(R) Tablet Approval - In April, Abbott received FDA approval

       of a new film-coated Niaspan extended-release prescription tablet.

       Niaspan is the most widely prescribed therapy for raising HDL or "good"

       cholesterol and is the most effective drug to raise HDL with proven

       outcomes of 25 to 35 percent on average.


    -- Divestiture of Core Laboratory Diagnostics Business - On January 18,

       2007, Abbott announced an agreement to divest its core laboratory

       diagnostics business, including the Abbott Diagnostics Division and

       Abbott Point of Care, to General Electric for $8.13 billion in cash.

       The transaction has received U.S. Federal Trade Commission approval and

       is subject to customary closing conditions, including regulatory

       approvals.


    -- Launch of FreeStyle Lite(TM) System - In April, Abbott received FDA

       clearance to market the FreeStyle Lite blood glucose monitoring system.

       The newest offering in the FreeStyle(R) product line features no

       required coding and automatic calibration, manual steps needed by most

       meters prior to using a new vial of test strips. This system provides

       results in an average of five seconds using the world's smallest blood

       sample size.


    -- Increase in Quarterly Dividend - In February, the Board of Directors

       approved a 10.2 percent increase in Abbott's quarterly dividend to

       32.5 cents per share. This is the 35th consecutive year that Abbott has

       increased its quarterly dividend payout.



     Abbott raises full-year earnings-per-share guidance

Abbott is raising its earnings-per-share guidance, excluding specified items, for the full-year 2007 to $2.79 to $2.85, as a result of the higher than expected TAP joint venture income this quarter. Abbott is confirming guidance for the second quarter of $0.67 to $0.69 per share, as previously forecasted, also excluding specified items. Guidance for the full year and second quarter reflects the announced sale of Abbott's core laboratory diagnostics business and includes both the results of this business while owned by Abbott and the redeployment of proceeds after closing the transaction. This guidance also reflects a lower tax rate than previously forecasted and a more conservative financial planning assumption for Omnicef. See Q&A Answer 10 for additional information.

Abbott forecasts a net gain from specified items for the full-year 2007 of $1.97 per share, which includes a projected gain of approximately $2.25 per share related to the sale of the core laboratory diagnostics business offset by charges of $0.28 per share, primarily associated with acquisition integration, cost reduction initiatives and a fair value adjustment to Boston Scientific stock and related gain-sharing aspect of the stock purchase (See Q&A Answer 7). Including these net specified items, projected earnings per share under GAAP would be $4.76 to $4.82 for the full-year 2007. The impact of the gain on sale will be reflected in the quarter in which closing occurs.

Abbott forecasts specified items, other than the projected gain on the sale of the core laboratory diagnostics business, for the second-quarter 2007 of approximately $0.09 per share, as previously forecasted, primarily associated with acquisition integration and cost reduction initiatives. Including these specified items, projected earnings per share under GAAP would be $0.58 to $0.60 for the second-quarter 2007.

These forecasts exclude any one-time costs associated with the sale of the core laboratory diagnostics business, which will be provided at a later date.

Abbott declares quarterly dividend

On February 16, 2007, the board of directors of Abbott increased the company's quarterly common dividend to 32.5 cents per share, an increase of 10.2 percent. The cash dividend is payable May 15, 2007, to shareholders of record at the close of business on April 13, 2007. This marks the 35th consecutive year that Abbott has increased its dividend payout and the 333rd consecutive dividend paid by Abbott since 1924.

About Abbott

Abbott is a global, broad-based health care company devoted to the discovery, development, manufacture and marketing of pharmaceuticals and medical products, including nutritionals, devices and diagnostics. The company employs 65,000 people and markets its products in more than 130 countries.

Abbott's news releases and other information are available on the company's Web site at http://www.abbott.com . Abbott will webcast its live first-quarter earnings conference call through its Investor Relations Web site at http://www.abbottinvestor.com at 8 a.m. Central time today. An archived edition of the call will be available after 11 a.m. Central time.


             - Private Securities Litigation Reform Act of 1995 -

               A Caution Concerning Forward-Looking Statements

Some statements in this news release may be forward-looking statements for the purposes of the Private Securities Litigation Reform Act of 1995. We caution that these forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those indicated. Economic, competitive, governmental, technological and other factors that may affect Abbott's operations are discussed in Item 1A, "Risk Factors," to our Annual Report on Securities and Exchange Commission Form 10-K for the year ended Dec. 31, 2006, and are incorporated by reference. We undertake no obligation to release publicly any revisions to forward-looking statements as a result of subsequent events or developments.



                     Abbott Laboratories and Subsidiaries

                      Consolidated Statement of Earnings

                 First Quarter Ended March 31, 2007 and 2006

                                 (unaudited)

                                                               Percent

                                 2007            2006           Change


    Net Sales               $5,290,284,000  $4,580,465,000       15.5

    Cost of products sold    2,176,695,000   1,759,583,000       23.7

    Research and

     development               578,374,000     438,579,000       31.9

    Selling, general and

     administrative          1,657,030,000   1,339,542,000       23.7

    Total Operating Cost

     and Expenses            4,412,099,000   3,537,704,000       24.7


    Operating earnings         878,185,000   1,042,761,000      (15.8)


    Net interest expense       124,514,000      34,948,000      256.3

    Net foreign exchange

     (gain) loss                 4,851,000        (810,000)       n/m

    (Income) from TAP

     Pharmaceutical

     Products Inc. joint

     venture                  (146,632,000)   (101,311,000)      44.7

    Other (income) expense,

     net                       124,461,000      (3,435,000)       n/m   a)

    Earnings from Continuing

     Operations Before Taxes   770,991,000   1,113,369,000      (30.8)

    Taxes on earnings from

     Continuing Operations     129,542,000     264,809,000      (51.1)


    Earnings from Continuing

     Operations                641,449,000     848,560,000      (24.4)

    Earnings from Discontinued

     Operations, net of taxes   56,088,000      16,323,000        n/m   b)


    Net Earnings              $697,537,000    $864,883,000      (19.3)


    Earnings from Continuing

     Operations Excluding

     Specified Items, as

     described below          $828,578,000    $865,951,000       (4.3)  c)

    Earnings from Discontinued

     Operations Excluding

     Specified Items, as

     described below            25,529,000      16,323,000       56.4   b) d)


    Diluted Earnings Per Common

     Share from:

      Continuing Operations          $0.41           $0.55      (25.5)

      Discontinued Operations        $0.04           $0.01        n/m   b) d)

      Total                          $0.45           $0.56      (19.6)


    Diluted Earnings Per Common

     Share, Excluding Specified

     Items described below, from:

      Continuing Operations          $0.53           $0.56       (5.4)  c)

      Discontinued Operations        $0.02           $0.01        n/m   b)  d)

      Total                          $0.55           $0.57       (3.5)


    Average Number of Common

     Shares Outstanding Plus

     Dilutive Common Stock

     Options and Awards      1,558,234,000   1,537,695,000



    a) Other (income) expense, net in 2007 is primarily related to a fair

       value adjustment of Abbott's investment in Boston Scientific (BSX)

       stock partially offset by the fair value adjustment for the related

       gain-sharing aspect of the BSX stock purchase (See Q&A Answer 7).


    b) Earnings from Discontinued Operations, net of taxes and Diluted

       Earnings Per Common Share from Discontinued Operations, Excluding

       Specified Items, reflect the reclassification of results of the core

       laboratory diagnostics business to Discontinued Operations. (See Q&A

       Answer 1 for additional detail.)


    c) 2007 Earnings from Continuing Operations Excluding Specified Items

       excludes after-tax charges of $57 million, or $0.04 per share, for

       acquisition integration, $75 million, or $0.05 per share, related to

       fair value adjustments of Abbott's investment in Boston Scientific

       stock and related gain-sharing aspect, and $55 million, or $0.03 per

       share, for cost reduction initiatives and other.


       2006 Earnings from Continuing Operations Excluding Specified Items

       excludes after-tax charges of $17 million, or $0.01 per share,

       primarily related to cost reduction and integration activities.


    d) 2007 Earnings from Discontinued Operations Excluding Specified Items

       excludes $30 million, or $0.02 per share after-tax benefit of suspended

       depreciation and amortization of the long-term assets of discontinued

       operations.


    NOTE: See attached questions and answers section for further explanation

    of Consolidated Statement of Earnings line items.


    n/m = Percent change is not meaningful.




                             Questions & Answers


    Q1) How are the results of the core laboratory diagnostics business being

        reported?


    A1) In accordance with GAAP, financial results from the core laboratory

        diagnostics business have been excluded from Continuing Operations and

        are reported as Discontinued Operations as a result of the pending

        divestiture by Abbott. Beginning this quarter, the comparable

        prior-year quarter also reflects this reporting. As a result, the line

        items of the Consolidated Statement of Earnings reflect Continuing

        Operations and are on a comparable basis for 2006 and 2007. See Q&A

        Answer 13 for additional information on the impact of the pending

        divestiture on prior year's sales results.



    Q2) What drove double-digit medical products sales growth?


    A2) Medical Products sales growth of 13.9 percent was led by Abbott

        Vascular, which achieved sales of $420 million, up significantly from

        the prior year, including the contribution from the Guidant

        acquisition. Strong performance in Abbott Vascular was driven by

        international sales of the XIENCE V drug-eluting stent, as well as

        continued growth in bare metal stents. Continued double-digit sales

        growth in International Nutritionals and Abbott Molecular contributed

        to the strong performance in the quarter. Partially offsetting this

        growth was an expected decline in U.S. nutritional sales, consistent

        with previous forecasts and reflecting the completion of the

        co-promotion of Synagis in the U.S. during 2006.



    Q3) What drove double-digit pharmaceutical sales growth?


    A3) U.S. pharmaceutical sales growth of 16.8 percent included the

        contribution from the Kos Pharmaceuticals acquisition, completed in

        December 2006. In addition to Kos, growth was led by HUMIRA, which

        increased more than 32 percent in the United States. HUMIRA

        prescription trends are strong, with growth of more than 40 percent

        compared to the prior year. HUMIRA continued to gain market share in

        both the rheumatology and dermatology self-injectable biologics

        markets. In the quarter, Abbott received FDA approval for HUMIRA in

        Crohn's disease, and recently submitted its global regulatory filing

        for the treatment of psoriasis. Abbott continues to expect 2007 global

        sales of HUMIRA to exceed $2.7 billion. Double-digit growth of

        Depakote and Omnicef also contributed to U.S. sales growth in the

        quarter.


        Sales of Abbott's international pharmaceuticals increased 16.4 percent

        during the quarter, including a 5.6 percent favorable impact from

        exchange. International growth was favorably impacted by the continued

        strength of HUMIRA, with sales up more than 60 percent and

        double-digit growth of Kaletra based on the continued strength of the

        international launch of Kaletra tablets.



    Q4) What drove the strong double-digit increase in R&D and SG&A this

        quarter?


    A4) The strong investment spending this quarter supported a number of

        future growth initiatives across Abbott's businesses.


        On a reported basis, R&D investment increased more than 30 percent

        this quarter, including specified items and the impact from the

        Guidant and Kos acquisitions. Strong growth reflects continuing

        investment in our pharmaceutical and medical products pipelines,

        including HUMIRA, ABT-335, ABT-874, controlled-release Vicodin and

        XIENCE V.


        Reported SG&A expense increased almost 24 percent this quarter, also

        including specified items and the impact from the Guidant and Kos

        acquisitions. Strong growth was driven by new and ongoing promotional

        initiatives, including new indications for HUMIRA and the continuing

        international launch of XIENCE V.



    Q5) How does the first-quarter gross margin profile compare to the prior

        year?


    A5) The gross margin from Continuing Operations before and after specified

        items is shown below (dollars in millions):



                                     1Q07                     1Q06

                         Cost of           Gross   Cost of           Gross

                        Products   Gross   Margin Products   Gross   Margin

                           Sold    Margin     %      Sold    Margin     %

    As reported           $2,176   $3,114   58.9%   $1,760   $2,821   61.6%

    Adjust for specified

     items:

      Acquisition

       integration          ($23)     $23    0.4%        -        -       -

      Cost reduction

       initiatives

       and other            ($56)     $56    1.1%     ($11)     $11    0.2%

    As adjusted           $2,097   $3,193   60.4%   $1,749   $2,832   61.8%



        The first-quarter 2007 gross margin ratio was consistent with guidance

        provided last quarter. We are forecasting steady improvement in the

        gross margin ratio throughout the year. The comparison to the prior

        year has been impacted by the expected reduction in the contribution

        from Synagis in the United States this quarter, as well as generic

        competition for Biaxin XL in the United States.  As a reminder, U.S.

        co-promotion for Synagis ended in 2006.



    Q6) Why did Net Interest Expense increase from the prior year?


    A6) Net Interest Expense increased over the prior year primarily as a

        result of debt related to the Guidant vascular and Kos Pharmaceuticals

        acquisitions.



    Q7) How did specified items affect reported results from Continuing

        Operations?


    A7) Specified items impacted first-quarter Earnings from Continuing

        Operations as follows (dollars in millions, except earnings-per-share

        data):



                                             1Q07                 1Q06

                                         Earnings            Earnings

                                       Pre-  After-        Pre-   After-

                                        tax   tax   EPS     tax    tax   EPS

    As reported, Continuing

     Operations                        $771  $641  $0.41  $1,113  $849  $0.55

    Adjusted for specified items:

      Acquisition integration           $71   $57  $0.04       -     -      -

      Fair value adjustment for BSX

       stock and related gain-sharing

       aspect                          $124   $75  $0.05       -     -      -

      Cost reduction initiatives and

       other                            $70   $55  $0.03     $23   $17  $0.01

    As adjusted, Continuing

     Operations                      $1,036  $828  $0.53  $1,136  $866  $0.56



        The first-quarter 2007 specified items below are primarily related to

        integration costs associated with 2006 acquisitions and continuing

        cost reduction initiatives in global manufacturing operations, all as

        previously forecasted; and a fair value adjustment for the Boston

        Scientific (BSX) stock and related gain-sharing aspect of the BSX

        stock purchase. In accordance with a newly issued accounting standard,

        SFAS 159, Abbott's investment in BSX stock is being accounted for at

        fair value. The unrealized loss, or decline in value of BSX stock

        prior to January 1, 2007, remains in retained earnings. Subsequent

        changes to the fair value of the BSX investment are required to be

        reflected in the income statement, which will be tracked as a

        specified item, along with any related realized gains/losses on

        disposition of this stock. As a result, at the end of the

        first-quarter 2007, Abbott adjusted its 64.6 million BSX shares to a

        fair value of approximately $14 per share. As a reminder, Abbott is

        required to dispose of these shares by October 21, 2008.


        The pre-tax impact of the specified items by Consolidated Statement of

        Earnings line item is as follows (dollars in millions):



                                                         1Q07

                                           Cost of                    Other

                                           Products                  (Income)/

                                             Sold     R&D      SG&A   Expense

    As reported, Continuing Operations      $2,176    $579    $1,657    $124

    Adjusted for specified items:

      Acquisition integration                  $23      $4       $44       -

      Fair value adjustment for BSX stock

       and related gain-sharing aspect           -       -         -    $124

      Cost reduction initiatives and other     $56       -       $14       -

    As adjusted, Continuing Operations      $2,097    $575    $1,599     $ -



    Q8) How did specified items affect reported results for Discontinued

        Operations?


    A8) Specified items impacted first-quarter earnings from Discontinued

        Operations, net of taxes, as follows (dollars in millions, except

        earnings-per-share data):


                                                1Q07             1Q06

                                          Earnings         Earnings

                                           After-           After-

                                             Tax      EPS     Tax      EPS

    As reported, Discontinued Operations     $56    $0.04     $16    $0.01

    Adjusted for specified items:

      Suspension of depreciation and

       amortization                          $30    $0.02       -        -

    As adjusted, Discontinued Operations     $26    $0.02     $16    $0.01



        The suspension of depreciation and amortization in Discontinued

        Operations reflects the fact that, under GAAP (SFAS 144), once an

        agreement to divest a business has been reached, depreciation and

        amortization expense on the related long-term assets is suspended.

        This benefit has been reflected as a specified item to better reflect

        the underlying results of this business.



    Q9) What was the tax rate in the quarter?


    A9) The tax rate for continuing operations this quarter, excluding

        specified items, was 20.0 percent, lower than our previous forecast.

        The tax rate this quarter reflects favorable trends in the mix of

        income across the various tax jurisdictions. We expect to sustain this

        lower tax rate throughout 2007 and going forward. The reported tax

        rate is reconciled to the ongoing rate below (dollars in millions):



                                                          1Q07

                                               Pre-tax     Income       Tax

                                               Income        Tax        Rate

    As reported, Continuing Operations           $771       $129       16.8%

      Acquisition integration                     $71        $14       20.0%

      Fair value adjustment for BSX stock

       and related gain-sharing aspect           $124        $49       39.8%

      Cost reduction initiatives and other        $70        $15       20.0%

    Continuing Operations, excluding

     specified items                           $1,036       $207       20.0%



    Q10) How does the lower 2007 tax rate affect 2007 earnings-per-share

         guidance?


    A10) As indicated above, the lower tax rate is expected to be sustainable

         in 2007 and going forward. Abbott is now assuming this rate in its

         increased full-year earnings-per-share guidance, but is now also

         reflecting a more conservative financial planning assumption for

         Omnicef in its forecasts for 2007 and beyond. If sales of Omnicef

         exceed assumptions in the current forecasts, this would provide

         either additional spending capacity or the potential for additional

         earnings.



    Q11) What are some near-term opportunities in Abbott's broad-based

         pipeline?


    A11) Abbott is making significant progress across a number of late-stage

         programs in its broad-based pipeline, including:


         -- HUMIRA

            - Crohn's disease - On February 27, Abbott received U.S. FDA

              approval, with European approval expected in the second-quarter

              2007.

            - Psoriasis - On April 2, Abbott announced its submission for

              global regulatory approval.

            - Juvenile RA - Abbott plans to submit for regulatory approval in

              the second-quarter 2007.

            - Ulcerative colitis - Entered into Phase III development in 2006.


         -- XIENCE V Drug-eluting Stent - Abbott expects to submit XIENCE V

            for U.S. approval in the second quarter of 2007, on track for a

            U.S. launch in the first half of 2008. As a reminder, XIENCE V was

            launched in Europe and Asia in 2006. Abbott has additional

            next-generation drug-eluting stents in development, including a

            bioabsorbable drug-eluting stent.


         -- Controlled-release Vicodin - Abbott is developing a

            controlled-release form of its pain brand, Vicodin, which is

            currently in Phase III development. Abbott plans to submit for

            regulatory approval in the second half of 2007.


         -- New Coated Niaspan Tablet - In April, Abbott received U.S. FDA

            approval for the new coated Niaspan tablet, a leading therapy for

            raising HDL cholesterol.


         -- Simcor - Abbott expects to file for regulatory approval of Simcor,

            a combination therapy to address both HDL and LDL cholesterol, in

            the second quarter.


         -- ABT-335 - Abbott's next-generation fenofibrate is currently in

            Phase III development both as a stand-alone therapy and in

            combination with CRESTOR. Regulatory submission for the

            stand-alone therapy is expected in the second half of 2007.


         -- ABT-335 or TriCor/CRESTOR - Abbott's combination therapy of TriCor

            or ABT-335 with CRESTOR is in Phase III development. This

            single-pill combination therapy will address all three lipid

            parameters: HDL, LDL and triglycerides.


         -- ABT-874 - In immunology, Abbott's anti-IL 12/23 biologic, ABT-874,

            has demonstrated promising results in early studies for Crohn's

            disease and psoriasis and will enter Phase III development for

            psoriasis later this year.


         -- Diabetes Care Pipeline - On April 16, Abbott received U.S. FDA

            approval for the FreeStyle Lite blood glucose monitor that

            improves convenience for people with diabetes. Abbott's FreeStyle

            Navigator Continuous Glucose Monitoring System remains under

            active U.S. FDA review. Beyond the FreeStyle Navigator, a fully

            integrated blood glucose monitoring system combining a meter, test

            strips and lancing capabilities in one device is also in

            development. Abbott continues to update and refresh its FreeStyle

            and Precision product lines.


         -- m2000 Molecular Diagnostics System - Abbott expects to receive

            U.S. FDA approval for the m2000 automated instrument system as

            well as the RealTime HIV-1 viral load test in the second quarter

            of this year. The real-time PCR hepatitis B assay was recently

            approved in Europe, expanding the m2000 system's growing menu of

            tests and completing the menu for infectious disease assays in

            Europe.



    Q12) What contributed to TAP joint venture income this quarter?


    A12) Income from the TAP joint venture of $147 million was above previous

         forecasts due largely to a favorable outcome reached this quarter in

         a Lupron patent dispute. This contributed $0.02 per share to earnings

         this quarter. As a result, Abbott is raising its ongoing

         earnings-per-share guidance for the full-year 2007.



    Q13) How does the announced divestiture of the core laboratory diagnostics

         business impact total sales reported in 2006?


    A13) The following schedule details Abbott's total sales as they were

         reported in 2006, details the business to be divested, and provides

         the resulting total sales from Continuing Operations (dollars in

          millions):


                                          As

                                    Previously   Discontinued   Continuing

    1Q06                              Reported    Operations    Operations

    Total Sales                         $5,183       $603        $4,580

      U.S. Sales                        $2,674       $169        $2,505

      International Sales               $2,509       $434        $2,075


    2Q06

    Total Sales                         $5,501       $666        $4,835

      U.S. Sales                        $2,750       $173        $2,577

      International Sales               $2,751       $493        $2,258


    3Q06

    Total Sales                         $5,574       $670        $4,904

      U.S. Sales                        $2,846       $179        $2,667

      International Sales               $2,728       $491        $2,237


    4Q06

    Total Sales                         $6,218       $704        $5,514

      U.S. Sales                        $3,264       $182        $3,082

      International Sales               $2,954       $522        $2,432


    Full-Year 2006

    Total Sales                        $22,476     $2,643       $19,833

      U.S. Sales                       $11,534       $703       $10,831

      International Sales              $10,942     $1,940        $9,002

CONTACT: Financial, John Thomas, +1-847-938-2655, or Larry Peepo,+1-847-935-6722, or Tina Ventura, +1-847-935-9390, or Media, Melissa Brotz,+1-847-935-3456, or Scott Stoffel, +1-847-936-9502, all of Abbott

Web site: http://www.abbott.com/

Ticker Symbol: (NYSE:ABT)

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Copyright © 2007 PR Newswire Association LLC. All rights reserved.
A United Business Media Company

Posted: April 2007


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