Abbott Reports 17.4 Percent Sales Growth and 12.3 Percent Ongoing Earnings-Per-Share Growth in First Quarter

By Abbott, PRNE
Tuesday, April 19, 2011

ABBOTT PARK, Illinois, April 20, 2011 -

       - Worldwide Durable Growth Business Sales Increased 24.3 Percent-

    - Worldwide Proprietary Pharmaceuticals Sales Increased 11.7 Percent -

          - Worldwide Innovation-Driven Device  Business Sales
                        Increased 10.7 Percent -

      - Confirms Strong Ongoing Earnings-Per-Share Outlook for 2011 -

Abbott (NYSE: ABT) today announced financial results for the first
quarter ended March 31, 2011.

    - Diluted earnings per share, excluding specified items, were
      $0.91, reflecting 12.3 percent growth. Diluted earnings per share under
      Generally Accepted Accounting Principles (GAAP) were $0.55, including
      costs associated with acquisition integration, cost-reduction
      initiatives and acquired in-process R&D.
    - Worldwide sales increased 17.4 percent to more than $9 billion,
      including a favorable 1.3 percent effect of foreign exchange, which was
      driven by double-digit growth in each of Abbott's three major business
    - Durable Growth Business sales increased 24.3 percent, driven by
      strong Established Pharmaceuticals sales growth, including the
      contribution from the Solvay Pharmaceuticals and Piramal Healthcare
      Solutions acquisitions, and International Nutritionals sales growth of
      15.8 percent.
    - Proprietary Pharmaceuticals sales increased 11.7 percent,
      including strong performance across several major global brands.
    - Innovation-Driven Device Business sales increased 10.7 percent,
      driven by double-digit growth in Vascular and Molecular Diagnostics.
    - Emerging markets sales were $2.3 billion, up 38.4 percent from
      the prior year, with strong growth across all of Abbott's operating
      divisions and including the impact of acquisitions.
    - Abbott is confirming ongoing earnings-per-share guidance for the
      full-year 2011, reflecting double-digit growth over 2010 at the
      midpoint of the range.

"Stronger-than-expected sales helped us deliver 12 percent ongoing
earnings-per-share growth in the first quarter," said Miles White, chairman
and chief executive officer. "Growth was balanced across our three key
strategic business categories - Durable Growth, Proprietary Pharmaceuticals
and Innovation-Driven Devices, reflecting healthy performance across our
global operations, including continued rapid growth in emerging markets."

The following is a summary of first-quarter 2011 sales by major business

                                                           % Change vs. 1Q10
                                    Sales ($ in millions)
                                    U.S.  Int'l     Total    U.S.
                                    ----  -----     -----    ----

    Total Sales                     3,517 5,524      9,041    8.1
                                    ----- -----      -----

    Durable Growth:

        Nutritionals                  637   786      1,423   (0.8)

         Pharmaceuticals(a)            -- 1,295      1,295    n/a

        Core Laboratory Diagnostics   154   659        813    4.6

        Diabetes Care                 129   196        325    5.3

        Point of Care Diagnostics      55    16         71    6.5
                                      ---   ---        ---

           Subtotal                   975 2,952      3,927    1.2
                                      --- -----      -----

    Proprietary Pharmaceuticals     1,926 1,857      3,783   12.7
                                    ----- -----      -----

    Innovation Driven Devices:

        Vascular                      389   456        845   (6.0)

        Medical Optics                 99   169        268   (2.0)

        Molecular Diagnostics          45    54         99    2.0
                                      ---   ---        ---

           Subtotal                   533   679      1,212   (4.7)
                                      ---   ---      -----

    Other Sales(b)                     83    36        119    n/m
                                      ---   ---        ---

                                               % Change vs. 1Q10
                                          Int'l                Total
                                          -----                -----
                                    Operational Reported Operational Reported
                                    ----------- -------- ----------- --------

    Total Sales                            22.1     24.3        16.1     17.4

    Durable Growth:

        Nutritionals                       11.9     15.8         5.8      7.8

         Pharmaceuticals(a)                77.8     80.7        77.8     80.7

        Core Laboratory Diagnostics         5.4      7.1         5.2      6.6

        Diabetes Care                      12.4     13.9         9.4     10.3

        Point of Care Diagnostics          12.4     14.9         7.8      8.3

           Subtotal                        31.7     34.4        22.4     24.3

    Proprietary Pharmaceuticals             9.7     10.7        11.2     11.7

    Innovation Driven Devices:

        Vascular                           33.4     36.9        11.5     13.1

        Medical Optics                      1.4      5.6         0.1      2.7

        Molecular Diagnostics              24.7     25.5        13.1     13.5

           Subtotal                        23.1     26.6         9.0     10.7

    Other Sales(b)                          4.5      4.0         n/m      n/m

    Notes:   1) See "Consolidated Statement of Earnings" for more
             2) "Operational" growth reflects percentage change over the
                prior year excluding the impact of exchange rates.

    (a) Established Pharmaceuticals includes sales of branded generics
        outside of the United States.
    (b) Includes sales primarily from Contract Pharmaceutical
        Manufacturing and Animal Health.

    n/a = Not applicable
    n/m = Not meaningful

The following is a summary of first-quarter 2011 sales for select

                                                   % Change vs. 1Q10
                                  Sales ($ in
                            U.S.  Int'l     Total     U.S.
                            ----  -----     -----     ----

     HUMIRA                  630  1,016      1,646    16.2

     Pediatric Nutritionals  309    446        755    (0.1)

     Adult Nutritionals      324    340        664     1.9

     Coronary Stents         235    289        524    (9.9)

      (fenofibrate)          289     83        372     3.8

     Kaletra                  64    184        248   (10.4)

     Niaspan                 226     --        226    10.6

     Lupron                  119     65        184    10.7

     Synthroid               117     28        145    19.1

                                            % Change vs. 1Q10
                                     Int'l                    Total
                                     -----                    -----
                            Operational  Reported  Operational  Reported
                            -----------  --------  -----------  --------

     HUMIRA                        18.5      18.9         17.6      17.8

     Pediatric Nutritionals        10.2      14.1          5.6       7.8

     Adult Nutritionals            14.3      18.2          7.7       9.6

     Coronary Stents               43.7      49.0         13.0      15.3

      (fenofibrate)                 n/m       n/m         27.8      27.7

     Kaletra                      (16.7)    (16.5)       (15.2)    (15.0)

     Niaspan                        n/a       n/a         10.6      10.6

     Lupron                        (1.7)      1.0          6.1       7.1

     Synthroid                      4.9      11.5         16.2      17.5

    Notes:   1) See "Consolidated Statement of Earnings" for more
             2) "Operational" growth reflects percentage change over the
                prior year excluding the impact of exchange rates.

    n/a = Not applicable
    n/m = Not meaningful

Business Highlights

    - Presented Data at the American College of Cardiology's (ACC)
      Meeting: Presented late-breaking two-year data from the
      EVEREST II clinical trial, demonstrating that two years after
      treatment with Abbott's MitraClip system, patients with
      significant mitral regurgitation continue to demonstrate
      sustained clinical improvements versus surgery. Data from the
      study were also simultaneously published in the New England
      Journal of Medicine.

      Presented one-year clinical and imaging data for the ABSORB(TM)
      bioresorbable vascular scaffold (BVS), which demonstrated low major
      adverse cardiac events (MACE), no blood clots and low late loss.
      ABSORB is designed to slowly metabolize and eventually be absorbed
      by the body after providing support to the vessel during the healing

      The XIENCE V(R) Everolimus Eluting Coronary Stent System was featured
      in a pooled analysis of two-year data from the SPIRIT II, III, IV
      and COMPARE trials. Data from the 7,000-patient analysis
      demonstrate that use of XIENCE V results in significantly lower
      clinical event rates following a stent procedure. An independent
      analysis also confirmed XIENCE V's low late stent thrombosis rate of
      0.7 percent.

    - Presented Data at the European Association for the Study of the
      Liver (EASL) Meeting: Phase 2 results were presented at the
      EASL meeting for Abbott's protease inhibitor, ABT-450, which
      demonstrated that 92 percent of patients (22 of 24) taking ABT-
      450/r once daily, in combination with standard of care, achieved
      complete early virologic response at 12 weeks.

    - Announced Positive Decision of HUMIRA(R) Appeal: Abbott won its
      appeal to overturn a $1.67 billion jury verdict previously won
      by Johnson and Johnson related to HUMIRA. The Federal Appeals
      Court found that J&J's patent failed to describe fully human
      high-affinity anti-TNF antibodies.

    - Abbott's TREK(R) Coronary Balloon System Now Available in the
      United States and Japan: Received approval in the United States
      and Japan for TREK and MINI-TREK(TM) Coronary Dilatation Catheters
      for the treatment of coronary artery disease. The TREK system is
      used in angioplasty procedures and is designed to enable
      interventional cardiologists to open patients' narrowed coronary
      arteries. The TREK system received CE Mark and was launched in
      Europe in May 2010.

    - Introduced Biothreat Assay for PLEX-ID(TM) System: Introduced the
      PLEX-ID Biothreat Assay, which is designed to detect and
      distinguish 17 different biothreat pathogens. This non-clinical
      assay enables rapid and accurate detection of potentially
      dangerous microorganisms that could pose serious threats to
      human health, food, water and other resources.

    - Launched Three CE Marked Molecular Diagnostics Tests in Europe:
      Launched three new infectious disease assays for the m2000
      molecular diagnostics platform in Europe. Abbott's new
      qualitative HIV-1 assay expands the way caregivers can collect
      and test patient samples. The company's new CMV assay will help
      physicians monitor for a virus common in transplant recipients.
      And, Abbott's HBV Sequencing test identifies genomic sequences
      of the hepatitis B virus to help better monitor and treat HBV.

    - Introduced New Wireless i-STAT(R) System: Received FDA clearance
      for the i-STAT 1 Wireless handheld, a new wireless version of
      the i-STAT point of care testing system. The new handheld
      analyzer allows real time transmission of diagnostic test
      results directly from the patient bedside.

Abbott confirms ongoing earnings-per-share outlook for 2011

Abbott is confirming ongoing earnings-per-share guidance for the
full-year 2011 of $4.54 to $4.64. The midpoint of this guidance range
reflects growth of 10 percent over 2010.

Abbott forecasts specified items for the full-year 2011 of approximately
$0.84 per share, primarily associated with acquisition integration/cost
reduction initiatives and in-process R&D. Including these specified items,
projected earnings per share under Generally Accepted Accounting Principles
(GAAP) would be $3.70 to $3.80 for the full-year 2011.

Abbott declares quarterly dividend

On Feb. 18, 2011, the board of directors of Abbott declared the company's
quarterly common dividend of 48 cents per share, an increase of 9 percent
over the prior year. The cash dividend is payable May 15, 2011, to
shareholders of record at the close of business on April 14, 2011. This marks
the 349th 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 nearly 90,000 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 Abbott will webcast its live
first-quarter earnings conference call through its Investor Relations Web
site at 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 purposes of the Private Securities Litigation Reform Act of 1995. Abbott
cautions that these forward-looking statements are subject to risks and
uncertainties that may cause actual results to differ materially from those
indicated in the forward-looking statements. 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,
, and are incorporated by reference. Abbott undertakes 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, 2011 and 2010
                         (in millions, except per share data)

                                                   2011    2010  % Change
                                                   ----    ----  --------

    Net Sales                                    $9,041  $7,698      17.4
                                                 ------  ------

    Cost of products sold                         3,859   3,335      15.7  1)
    Research and development                        930     730      27.4
    Acquired in-process research and development    100      --       n/m
    Selling, general and administrative           2,851   2,162      31.8
                                                  -----   -----
    Total Operating Cost and Expenses             7,740   6,227      24.3
                                                  -----   -----

    Operating earnings                            1,301   1,471     (11.5)

    Net interest expense                            124      89      39.7
    Net foreign exchange (gain) loss                (33)     70       n/m  2)
    Other (income) expense, net                     141     (10)      n/m  3)
                                                    ---     ---
    Earnings before taxes                         1,069   1,322     (19.2)
    Taxes on earnings                               205     319     (35.8)
                                                    ---     ---
    Net Earnings                                   $864  $1,003     (13.9)
                                                   ====  ======

    Net Earnings Excluding Specified Items, as
     described below                             $1,419  $1,267      12.0  4)
                                                 ======  ======

    Diluted Earnings per Common Share             $0.55   $0.64     (14.1)
                                                  =====   =====

    Diluted Earnings Per Common Share, Excluding
     Specified Items,
      as described below                          $0.91   $0.81      12.3  4)
                                                  =====   =====

    Average Number of Common Shares Outstanding
     Plus Dilutive
         Common Stock Options and Awards          1,559   1,561

    1) 2011 Cost of products sold includes approximately $400
       million of non-cash intangible amortization.

    2) 2010 Net foreign exchange (gain) loss included the one-
       time cost of the devaluation of the Venezuelan bolivar
       on balance sheet translation.

    3) Other (income) expense, net for 2011 includes a charge
       of $137 million for the impact of Abbott's change to a
       calendar year end for the international operations
       that were previously reported on a November 30 year-
       end. This is being treated as a specified item as
       noted below.

    4) 2011 Net Earnings Excluding Specified Items excludes
       after-tax charges of $81 million, or $0.05 per share,
       associated with the acquisition of Solvay
       Pharmaceuticals, $103 million, or $0.07 per share, for
       previously announced restructuring in the
       pharmaceutical business, $58 million, or $0.04 per
       share, for previously announced cost reduction
       initiatives and other, $137 million, or $0.09 per
       share for the 2009 and 2010 impact of the change to a
       calendar year end for international operations, $100
       million, or $0.06 per share, relating to acquired in-
       process research and development related to the Reata
       collaboration, and $76 million, or $0.05, for
       litigation reserves.

       2010 Net Earnings Excluding Specified Items excludes after-
       tax charges of $115 million, or $0.07 per share, for the
       one-time impact of the devaluation of the Venezuelan
       bolivar on balance sheet translation, $60 million, or
       $0.04 per share, for specific health care reform impact on
       deferred tax assets, $53 million, or $0.04 per share,
       relating primarily to closing and other costs associated
       with the acquisition of Solvay and other recent
       acquisitions, and $36 million, or $0.02 per share, for
       cost reduction initiatives and other.

    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) What drove the strong sales growth?

A1) We have characterized Abbott's major businesses into three
categories, based on their underlying attributes. These include:

    - Durable Growth Businesses, including Nutritionals, Established
      Pharmaceuticals, Core Laboratory Diagnostics, Diabetes Care and Point
      of Care Diagnostics. These businesses are less dependent on significant
      R&D investment, have minimal patent risk, and operate in generally
      stable markets, with many products paid for directly by the consumer.
    - Proprietary Pharmaceuticals, including our U.S. and international
      proprietary pharmaceutical products. We recently globalized this
      business, creating one division to allow for streamlined commercial
      efforts and coordination between functions.
    - Innovation-Driven Device Businesses, including Vascular, Medical
      Optics and Molecular Diagnostics. These businesses have a relatively
      lower patent risk, and require a moderate level of R&D spend, resulting
      in new products that generate more significant revenue and profit

Durable Growth Businesses sales grew 24.3 percent, driven by strong sales
growth in Established Pharmaceuticals and steady sales growth in Core
Laboratory Diagnostics, Diabetes Care and Point of Care Diagnostics
businesses. Established Pharmaceuticals sales, which include sales of our
branded generics pharmaceuticals outside of the United States, were
approximately $1.3 billion, including the contribution from the Solvay and
Piramal acquisitions. Worldwide Nutritional products sales growth was 7.8
percent, with 15.8 percent growth in international nutritionals. Nutritional
sales in the United States during the quarter were negatively impacted by the
infant nutrition recall that was announced in September 2010, as previously

Proprietary Pharmaceuticals sales increased 11.7 percent, driven by U.S.
pharmaceutical sales growth of 12.7 percent. U.S. sales growth of HUMIRA was
16.2 percent and International sales growth for HUMIRA was 18.9 percent. U.S.
TRILIPIX/TriCor franchise sales growth was 3.8 percent. U.S. Niaspan sales
growth of 10.6 percent significantly exceeded the growth rate of the overall
cholesterol market.

Growth in Innovation-Driven Device Businesses was driven by double-digit
growth in Worldwide Vascular sales, including strong international
performance, as well as emerging market growth of 45 percent. Abbott's
Molecular Diagnostics businesses continued to grow double digits.

Q2) What were emerging markets sales?

A2) Emerging market sales within each division were as follows (dollars
in millions):

                                       1Q11 Emerging
                                      Markets Sales*
                                    Reported      %
                                      Sales    Growth
                                      -----    ------
    Established Pharmaceuticals        $726     117.4
    Nutritionals                       $589      18.3
    Proprietary Pharmaceuticals        $422      21.1
    Core Laboratory Diagnostics        $310      12.8
    Vascular                           $144      45.0
    Other                              $157      10.7
                                       ----      ----
    Total                            $2,348      38.4

    * Emerging markets sales include revenues from all countries and regions
      excluding the developed world: United States, Canada, Western
      Europe, Japan and Australia.

Abbott total company emerging markets sales grew 38.4 percent in the
quarter, reflecting strong growth across all divisions and including the
impact of acquisitions. Excluding the impact of the acquisitions, emerging
markets sales growth exceeded 20 percent, underscoring the importance of
these markets to Abbott's growth profile. In our Established Pharmaceuticals
business, which includes the contribution from the Solvay and Piramal
acquisitions, we saw strong performance in Russia, India and China. In
Nutritionals, we saw particularly strong growth in Asia and Latin America,
where we are expanding our presence and gaining share with the introduction
of new products.

In our Diagnostics business, we continue to perform well in China, where
we are placing new ARCHITECT systems and continuing to penetrate the market.
And, in our Vascular business, we saw strong growth across all key emerging
markets, driven by double-digit procedure volumes in these markets, as well
as Abbott market share gains.

Q3) What drove the increase in the gross margin ratio?

A3) The gross margin ratio before and after specified items is shown
below (dollars in millions):

                                                Cost of    Gross     Gross
                                               Products   Margin    Margin
                                                 Sold                  %

    As reported (GAAP)                           $3,859    $5,182    57.3%
    Adjusted for specified item:
    Restructuring/integration (acquisitions/
     cost reductions)                             ($107)     $107     1.2%
    As adjusted                                  $3,752    $5,289    58.5%
                                                 ------    ------    ----

The adjusted gross margin ratio of 58.5 percent increased 110 basis
points from the prior year when the adjusted gross margin ratio was 57.4
percent, due to improved product mix. The favorable comparison to the prior
year was partially offset by additional rebates under U.S. health care
reform, the carryover effect of 2010 pharmaceutical pricing actions by
European governments, and an unfavorable impact from foreign exchange rates
on the ratio.

Q4) What drove SG&A and R&D investment?

A4) Both SG&A and R&D investment increased strong double-digits,
reflecting Abbott's continued investment in programs to drive future growth,
as well as increases associated with the addition of Solvay Pharmaceuticals,
Piramal Healthcare Solutions and pharmaceutical fee associated with U.S.
health care reform. R&D expense reflects continued investment in Abbott's
broad-based pipeline, including programs in vascular devices, immunology,
neuroscience, oncology and HCV.

Q5) What was the tax rate?

A5) The ongoing tax rate this quarter was 15.7 percent, in line with
Abbott's previous forecast, and reconciled below (dollars in millions):

                                  Pre-Tax   Taxes on    Tax
                                  Income   Earnings    Rate

    As reported                   $1,069      $205     19.2%
    Specified items                 $614       $59      9.6%
                                    ----       ---      ---
    Excluding specified items     $1,683      $264     15.7%

Q6) How did specified items affect reported results?

A6) Specified items impacted first-quarter results as follows:

    (dollars in millions, except earnings-
     per-share)                                  Earnings
                                              Pre-   After-    EPS
                                              ----   ------    ---
                                              tax      tax
                                              ---      ---
    As reported (GAAP)                       $1,069    $864   $0.55
    Adjusted for specified items:
     (acquisitions/cost reductions)            $287    $242   $0.16
    Change to calendar year reporting
     (one-month lag)                           $137    $137   $0.09
    Acquired in-process research and
     development                               $100    $100   $0.06
    Litigation reserves                         $90     $76   $0.05
                                                ---     ---   -----
    As adjusted                              $1,683  $1,419   $0.91

Restructuring/integration (acquisitions/cost reductions) is associated
with restructuring and integration costs for the Solvay Pharmaceuticals
acquisition and a previously announced restructuring in our pharmaceuticals
business. This item also includes previously announced cost reduction
initiatives to improve efficiencies in the vascular and core laboratory
diagnostic businesses. Change to calendar year reporting (one-month lag)
recorded in the other (income)/expense line item of the P&L as noted below,
reflects the impact of Abbott's change to a calendar year end for
international operations previously on a November 30 year end. Acquired
in-process research and development is related to the agreement with Reata to
develop and commercialize bardoxolone methyl outside the United States,
excluding certain Asian markets. Litigation reserves relates to settlements
reached in principle for which reserves were established during the quarter.

The impact of specified items by Consolidated Statement of Earnings line
item is as follows (dollars in millions):

                                   Cost of   R&D  Acquired   SG&A    Other
                                   Products        IPR&D           (Income)/
                                     Sold                           Expense

    As reported (GAAP)              $3,859  $930    $100   $2,851      $141
    Adjusted for specified items:
     reductions)                     ($107) ($61)     --    ($116)      ($3)
    Change to calendar year
     reporting (one-month lag)          --    --      --       --     ($137)
    Acquired in-process research
     and development                    --    --   ($100)      --        --
    Litigation reserves                 --    --      --     ($90)       --
    As adjusted                     $3,752  $869      --   $2,645        $1

Q7) What are the key areas of focus in Abbott's broad-based pipeline?

A7) We continue to advance our broad-based pipeline. In proprietary
pharmaceuticals, we expect to have nearly 20 new molecular entities and
indications in Phase 2 or 3 development by the end of 2011. We also expect
numerous new trial starts and new data presentations throughout the year.
Following are select highlights from breakthrough research across
pharmaceuticals, medical products and nutritionals pipelines:

    - Hepatitis C
      - Abbott's antiviral program is focused on developing treatments for
        hepatitis C (HCV), a disease that affects more than 180 million
        people worldwide, with approximately 3 to 4 million people newly
        infected each year. Abbott's broad-based HCV programs include its
        partnership with Enanta Pharmaceuticals to discover protease
        inhibitors, as well as its internal programs focused on additional
        viral targets.
      - Abbott currently has four HCV compounds in Phase 2 clinical trials,
        including protease, polymerase and NS5A inhibitors. Abbott is well
        positioned to explore combinations of these compounds, both with and
        without the current standard of care, a strategy that has the
        potential to markedly transform current treatment practices by
        shortening therapy duration, improving tolerability and increasing
        cure rates.

    - Chronic Kidney Disease
      - Bardoxolone, an investigational treatment for chronic kidney
        disease (CKD), is a first-in-class anti-inflammatory that activates
        Nrf2, a pathway involved in the progression of CKD. A Phase 2b study
        was recently completed and initiation of a global Phase 3 trial is
        targeted to begin in the coming months. Abbott's agreement with Reata
        Pharmaceuticals includes international rights to bardoxolone,
        excluding certain Asian markets.

    - Women's Health
      - Abbott's collaboration agreement with Neurocrine to develop
        and commercialize elagolix for the treatment of endometriosis-related
        pain and fibroids brings Abbott a novel, first-in-class oral
        gonadotropin-releasing hormone (GnRH) antagonist. A Phase 2 study in
        endometriosis was recently completed, and planning for the Phase 3
        program is ongoing.

    - Neuroscience / Pain
      - Abbott is conducting innovative research in neuroscience,
        where it has developed compounds that target receptors in the brain
        that help regulate mood, memory and other neurological functions.
        Abbott has more than a dozen new molecular entities in clinical
        trials for conditions such as schizophrenia, pain, Alzheimer's
        disease, Parkinson's disease and multiple sclerosis (MS). This
        includes three compounds in development for Alzheimer's.
      - Abbott's neuroscience pipeline includes a novel,
        next-generation antibody, daclizumab, which entered Phase 3
        development in 2010 for relapsing remitting MS (RRMS), the most
        common form of the disease. We expect to present data from the Phase
        2 SELECT trial later this year.
      - Abbott is pursuing compounds that could provide relief across
        a broad spectrum of pain states, such as chronic back pain,
        postoperative pain and cancer pain.

    - Oncology
      - Abbott's oncology pipeline includes therapies that represent
        promising, unique scientific approaches to treating cancer. Abbott is
        focused on the development of targeted treatments that inhibit tumor
        growth and improve response to common cancer therapies. Abbott
        currently has nine new molecular entities in human trials.
      - The oncology pipeline includes: ABT-263, a Bcl-2 family
        protein antagonist; ABT-869, a multi-targeted kinase inhibitor; and
        ABT-888, a PARP-inhibitor. Each is being studied in a variety of
        cancers. Additionally, Abbott is evaluating a number of promising
        mechanisms in its pre-clinical pipeline, including work on an
        early-stage cMET antibody biologic for cancer.
      - The acquisition of Facet Biotech brought several oncology
        collaborations, including elotuzumab, a late-stage compound in
        development for multiple myeloma. We recently initiated the Phase 3
        clinical program with our partner company.

    - Immunology
      - Abbott's scientific experience with the anti-TNF biologic
        HUMIRA serves as a strong foundation for its continuing research in
        immunology. In its pipeline, Abbott continues to explore additional
        indications for HUMIRA and is working to advance development of its
        early discovery programs, including oral DMARD therapies, as well as
        other potential biologic targets. We recently submitted U.S. and
        European regulatory applications for HUMIRA as a treatment for
        ulcerative colitis.
      - Additionally, Abbott's proprietary DVD-Ig technology
        represents an innovative approach that can target multiple
        disease-causing antigens with a single biologic agent. This
        technology could lead to combination biologics for complex conditions
        such as cancer or rheumatoid arthritis, where multiple pathways are
        involved in the disease. We expect this program to move into Phase I
        clinical trials by year end.

    - Molecular Diagnostics
      - Abbott expects to launch more than 12 new molecular
        diagnostic products over the next two to three years, including
        several novel oncology and infectious disease assays. In 2010, Abbott
        received FDA approval to market the Abbott RealTime HBV assay for
        measuring viral load or the amount of hepatitis B virus in a
        patient's blood, as well as a new sensitive molecular diagnostic test
        and instrument to simultaneously detect two of the nation's most
        prevalent sexually transmitted diseases, gonorrhea and chlamydia.
        Abbott has submitted a hepatitis C viral load test for FDA review, as
        well as a number of oncology-related assays.

    - Diagnostics
      - In 2010, Abbott launched a number of key assays on its
        ARCHITECT immunochemistry platform, which will significantly broaden
        its industry-leading menu. These tests include assays to assess
        Chagas disease, ovarian cancer and the first HIV combination assay
        approved for use in the United States, which detects the virus days
        earlier than current U.S. tests, as well as the ARCHITECT Vitamin D
        assay in Europe.
      - Abbott expects to launch several more products this year and
        is researching dozens of novel biomarkers focusing on important areas
        such as diabetes, infectious disease, and neuroscience disorders, as
        well as developing next-generation systems.

    - Vascular Devices
      - Abbott has one of the industry's most robust vascular
        pipelines and expects to deliver more than 10 coronary technologies
        over the next five years. Abbott is working on well-staged
        incremental advances, and truly game-changing technologies that have
        the ability to restate the market.
      - ABSORB Bioresorbable Vascular Scaffold (BVS) - Abbott
        recently received CE Mark in Europe for the world's first
        drug-eluting BVS for the treatment of coronary artery disease. ABSORB
        restores blood flow by opening a clogged vessel and providing support
        to the vessel until it dissolves, leaving patients with a treated
        vessel free of a permanent metallic implant. Abbott has the most
        advanced BVS clinical program in the industry.
      - MitraClip - Presented two-year data for the MitraClip system
        from the pivotal trial, EVEREST II, at the ACC conference in April.
        The MitraClip system continued to demonstrate the safety and
        sustained meaningful clinical benefits for the treatment of mitral
        regurgitation. Abbott's MitraClip system is on the market outside the
        United States and is currently under FDA review.
      - Next-generation DES - Abbott has several next-generation DES
        platforms in development. This includes XIENCE PRIME, our
        next-generation drug-eluting stent (DES) that offers improved
        deliverability, especially in long lesions. XIENCE PRIME is on the
        market in Europe with an expected U.S. launch in 2012. XIENCE 2.25
        for small vessels is on the market in Europe with an expected U.S.
        launch this year. Our ultra thin DES is also in development. It's
        designed to improve clinical outcomes by reducing vessel injury upon
        deployment, enabling faster healing and improving deliverability in
        complex anatomy.
      - Core Coronary products - Abbott is continuing to expand its
        position in the more than $2 billion core coronary market. Abbott
        launched its next-generation balloon dilatation catheter, TREK, in
        Europe last year and in the United States and Japan in early 2011.

    - Vision Care
      - Abbott expects 20 new products and technology advancements
        over the next five years, including the launch of a new contact lens
        solution that is underway in Europe and the United States. In its
        market-leading LASIK business, Abbott is expanding its proprietary
        laser platform into new vision correction applications, including
        cataract surgery. Abbott also continues to expand its premium and
        standard intraocular lenses (IOL), including Synchrony, its
        next-generation IOL approved in Europe and other countries around the
        world. Synchrony is currently under FDA review in the United States.

    - Nutrition
      - Abbott is focused on improving six areas through nutrition:
        immunity, cognition, lean body mass, inflammation, metabolism and
        tolerance. We expect to launch approximately 20 new products and
        formulations to consumers in 2011 and are currently conducting 30
        well-controlled clinical trials to demonstrate proven clinical
        outcomes with our nutrition innovation. In 2010, Abbott introduced
        several new products, including Ensure with Revigor and PediaSure

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, or Adelle Infante, +1-847-938-8745, all of Abbott

will not be displayed