Abbott to Become No. 1 Pharmaceutical Company in India with Acquisition of Piramal's Healthcare Solutions Business

Strategic action will propel Abbott to No. 1 position with annual sales growth approaching 20 percent in India, expected to exceed US$2.5 billion in sales by 2020

ABBOTT PARK, Illinois, May 21, 2010 - Abbott (NYSE: ABT) announced a definitive agreement with Piramal
Healthcare Limited to acquire full ownership of Piramal's Healthcare
Solutions business (Domestic Formulations), a leader in the Indian branded
generics market, for an up-front payment of US$2.12 billion, plus US$400
million annually for the next four years, giving Abbott the No. 1 position in
the Indian pharmaceutical market. This further accelerates Abbott's emerging
markets growth following the recent acquisition of Solvay Pharmaceuticals and
announcements last week of Abbott's collaboration with Zydus Cadila as well
as the creation of a new stand-alone Established Products Division to focus
on expanding the global markets for its leading branded generics portfolio.

"This strategic action will advance Abbott into the leading market
position in India, one of the world's most attractive and rapidly growing
markets," said Miles D. White, chairman and chief executive officer, Abbott.
"Our strong position in branded generics and growing presence in emerging
markets is part of our ongoing diversified pharmaceutical strategy,
complementing our market-leading proprietary pharmaceutical offerings and
pipeline in developed markets."

"Emerging markets represent one of the greatest opportunities in health
care - not only in pharmaceuticals - but across all of our business segments.
Today, emerging markets represent more than 20 percent of Abbott's total
business," said Mr. White.

"With this deal, the combined Healthcare Solutions and Abbott businesses
will become the clear market leader in India, with a market share of
approximately 7 percent," said Ajay Piramal, chairman, Piramal Group. "This
was our collective vision and I am glad that those who are part of Piramal's
Healthcare Solutions business will realize this dream."

The Indian Pharmaceutical Market

India is one of the world's fastest-growing pharmaceutical markets, due
in large part to branded generics. The market will generate nearly US$8
billion in pharmaceutical annual sales this year, a number that is expected
to more than double by 2015. Abbott estimates the growth of its Indian
pharmaceutical business with Piramal to approach 20 percent annually, with
expected sales of more than US$2.5 billion by 2020.

Branded generics have significant brand equity in many international
markets, providing durable, sustainable franchises for future growth. Piramal
markets the products in its Healthcare Solutions business in India only and
does not market traditional generic products. Today, branded generics account
for 25 percent of the global pharmaceutical market, have the majority of
market share in the largest emerging markets, and are expected to outpace
growth of patented and generic products.

The Mumbai-based Piramal Healthcare Solutions business has a
comprehensive portfolio of branded generics with annual sales expected to
exceed US$500 million next year in India, and market-leading brands in
multiple therapeutic areas, including antibiotics, respiratory,
cardiovascular, pain and neuroscience. This business grew 23 percent in 2010
(fiscal year ended March 31, 2010), faster than the market in India. Piramal
has a strong commercial presence, including the largest sales force in India
with a unique model that includes dedicated sales personnel in rural areas
inhabited by 70 percent of the population. The combined Abbott and Piramal
sales forces will be the industry's largest in India.

Piramal's Healthcare Solutions business will become part of Abbott's
newly created, stand-alone Established Products Division. Piramal's
Healthcare Solutions business employs more than 5,000 people in India.
Abbott, which is celebrating its 100th year in India, has more than 2,500
employees across all of its businesses there.

Abbott's Established Products Strategy

Throughout the past decade, Abbott has built a leading portfolio of
branded generics, through its own products as well as those acquired with the
2001 acquisition of Knoll's pharmaceutical business. In 2007, the company
established a separate business unit within its international pharmaceutical
division dedicated to established products.

Additionally, a new geographic region focused on Russia, India and China
was created, which resulted in the doubling of Abbott's growth rate in those
countries.

Most recently, the company acquired Solvay Pharmaceuticals, obtaining a
diverse branded generics portfolio and providing significant critical mass in
key emerging markets.

As a result of these combined actions, Abbott is now among the leading
multinational health care companies in numerous emerging markets.
Approximately 20 percent of Abbott's pharmaceutical sales today are in
emerging markets.

"We have assembled a market-leading branded generics portfolio tailored
to the unique needs of emerging markets, strongly positioning Abbott to meet
the current and future geographic and market dynamics in pharmaceuticals,"
said Olivier Bohuon, executive vice president, global pharmaceuticals,
Abbott. "Piramal has built a reputation for high-quality, well-known and
trusted pharmaceutical brands. We look forward to welcoming the accomplished
staff of Piramal's Healthcare Solutions business to Abbott."

Pharmaceutical sales in emerging markets are expected to grow at three
times the rate of developed markets and account for 70 percent of
pharmaceutical growth over the next several years. This explosive growth is
occurring as demographics, rising incomes, modernization of health systems
and an increase in the treatment of chronic disease create greater demand for
medicines.

Financial Highlights

Under terms of the agreement, Abbott will purchase the assets of
Piramal's Healthcare Solutions business for a US$2.12 billion up-front
payment with payments of US$400 million annually for the next four years,
beginning in 2011. The transaction will not impact Abbott's ongoing earnings
per share guidance in 2010. Abbott plans to fund the transaction with cash on
the balance sheet.

This transaction is subject to shareholder approval of Piramal Healthcare
Limited and other customary closing conditions, and is expected to close in
the second half of 2010. This transaction is being conducted by a
wholly-owned subsidiary of Abbott, resulting in full ownership of the assets
of Piramal's Healthcare Solutions business (Domestic Formulations).

Abbott Conference Call

Abbott will conduct a special conference call today at 7:30 a.m. Central
time (8:30 a.m. Eastern time) to provide an overview of the transaction. The
live Web cast will be accessible through Abbott's Investor Relations Web site
at www.abbottinvestor.com.

For more information on today's announcement, please go to Abbott's press
kit at www.abbott.com/PHSMediaKit.

About the Piramal Group

The Piramal Group, led by Ajay G. Piramal is one of India's foremost
business conglomerates. Driven by the core values of Knowledge Action Care,
the Piramal Group has interests in a myriad of industries that encompass
healthcare, drug discovery & research, diagnostics, glass, real estate and
financial services. The Piramal Group steadfastly pursues inclusive growth
while adhering to ethical and value driven practices. The Group's turnover
exceeded US $1 billion in FY2010.

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 approximately 83,000 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 www.abbott.com.

Abbott Forward-Looking Statement

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,
2009, and in Item 1A, "Risk Factors," to our Quarterly Report on Securities
and Exchange Commission Form 10-Q for the period ended March 31, 2010, 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.

Media, Melissa Brotz, +1-847-935-3456, melissa.brotz at abbott.com, or Scott Stoffel, +1-847-936-9502, scott.stoffel at abbott.com, or Investors, Larry Peepo, +1-847-935-6722, all of Abbott