Johnson & Johnson Reports 2007 Second-Quarter Results: Sales Increase of 13.2% and EPS increase of 10.5% Versus a Year Ago; Excluding Special Charges in 2006, EPS increased 7.1%*

NEW BRUNSWICK, N.J., July 17 /PRNewswire-FirstCall/ -- Johnson & Johnson today announced second-quarter sales of $15.1 billion, an increase of 13.2% as compared to the second quarter of 2006. Operational growth was 10.8% and currency contributed 2.4%. Domestic sales were up 9.0%, while international sales increased 18.4%, reflecting operational growth of 13.0% and a positive currency impact of 5.4%. On a pro-forma basis, including the net impact of the acquisition of Pfizer Consumer Healthcare in both periods, worldwide sales increased 3.6% operationally.

Net earnings and diluted earnings per share for the second quarter of 2007 were $3.1 billion and $1.05, respectively. Prior-year second-quarter net earnings included an after-tax in-process research and development charge of $87 million associated with the acquisition of Vascular Control Systems, Inc. Excluding this charge, net earnings for the current quarter and diluted earnings per share represent increases of 6.0% and 7.1%, respectively, as compared to the same period in 2006.* The Company confirmed its previous earnings guidance for full-year 2007, which excludes the impact of in-process research and development charges or other special items, of between $4.02 and $4.07 per share.

“Our broadly-based approach to health care is serving us well as challenges in the marketplace intensify across certain businesses,” said William C. Weldon, Chairman and Chief Executive Officer. “We continue to grow earnings while successfully integrating acquisitions and continuing to invest in promising new growth opportunities.”

In July, the Company announced a $10 billion share repurchase program. Share repurchases will take place on the open market from time to time based on market conditions. The repurchase program has no time limit and may be suspended or discontinued at any time.

Worldwide Medical Devices and Diagnostics sales of $5.4 billion for the second quarter represented a 5.1% increase over the prior year with operational growth of 2.8% and a positive impact from currency of 2.3%. Domestic sales increased 1.1%, while international sales increased 9.1% (4.4% from operations and 4.7% from currency).

Primary contributors to the operational growth included Vistakon’s disposable contact lenses; LifeScan’s blood glucose monitoring and insulin delivery products; Ethicon Endo-Surgery’s minimally invasive products; DePuy’s orthopaedic joint reconstruction and sports medicine businesses; Ethicon’s wound care and women’s health products; and Ortho-Clinical Diagnostics’ professional diagnostic products. This growth was largely offset by lower sales of drug-eluting stents in our Cordis franchise due to a decline in the market versus the prior year.

Worldwide Pharmaceutical sales of $6.1 billion for the second quarter represented an increase over the prior year of 5.8% with operational growth of 3.8% and a positive impact from currency of 2.0%. Domestic sales increased 4.8%, while international sales increased 7.6% (2.0% from operations and 5.6% from currency).

Sales growth reflects the strong performance of TOPAMAX, an antiepileptic and a treatment for the prevention of migraine headaches; REMICADE, a biologic approved for the treatment of a number of immune mediated inflammatory diseases; our antipsychotic franchise, which includes RISPERDAL, RISPERDAL CONSTA and INVEGA; and CONCERTA, a treatment for attention deficit hyperactivity disorder.

During the quarter, the European Commission granted marketing authorization for INVEGA, an atypical antipsychotic medication for the treatment of schizophrenia. In addition, the U.S. Food and Drug Administration (FDA) granted approval for an additional indication for INVEGA for long-term maintenance of schizophrenia. In May, the FDA approved the use of DOXIL in combination with VELCADE for Injection to treat patients with multiple myeloma who have not previously received VELCADE and have received at least one prior therapy.

Also in the quarter, the Company filed new drug applications in both the U.S. and Europe for ceftobiprole, an antibiotic for the treatment of complicated skin and skin structure infections. Doripenem, a carbapenem antibiotic, was filed in the U.S. and Europe for the treatment of nosocomial pneumonia and in Europe for complicated urinary tract infections and complicated intra-abdominal infections.

Worldwide Consumer segment sales of $3.6 billion for the second quarter represented a 48.6% increase over the prior year with operational growth of 45.1% and a positive impact from currency of 3.5%. Domestic sales increased 41.6%, while international sales increased 54.6% (48.1% from operations and 6.5% from currency). On a pro-forma basis, including the net impact of the acquisition of Pfizer Consumer Healthcare in both periods, worldwide sales for the Consumer segment increased 4.6% operationally.

Sales growth in the combined business reflects the strong performance of the skin care lines of NEUTROGENA and AVEENO; Baby and Kids Care products; and LISTERINE antiseptic mouthrinse.

Johnson & Johnson is the world’s most comprehensive and broadly based manufacturer of health care products, as well as a provider of related services, for the consumer, pharmaceutical, and medical devices and diagnostics markets. The more than 250 Johnson & Johnson operating companies employ approximately 120,500 men and women in 57 countries and sell products throughout the world.

* Net earnings and diluted earnings per share excluding after-tax in- process research and development 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 conference call with financial analysts to discuss this news release today at 8:30 a.m., Eastern Daylight Time. A simultaneous webcast of the call for interested investors and others may be accessed by visiting the Johnson & Johnson website at www.investor.jnj.com. A replay and podcast will be available approximately two hours after the live webcast by visiting www.investor.jnj.com.

A copy 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 31, 2006. Copies of this Form 10-K, as well as subsequent filings, are available online at www.sec.gov, 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) SECOND QUARTER Percent Change 2007 2006 Total Operations Currency Sales to customers by segment of business Consumer U.S. $1,562 $1,103 41.6 % 41.6 - International 2,002 1,295 54.6 48.1 6.5 3,564 2,398 48.6 45.1 3.5 Pharmaceutical U.S. 3,860 3,682 4.8 4.8 - International 2,289 2,128 7.6 2.0 5.6 6,149 5,810 5.8 3.8 2.0 Med Devices & Diagnostics U.S. 2,619 2,590 1.1 1.1 - International 2,799 2,565 9.1 4.4 4.7 5,418 5,155 5.1 2.8 2.3 U.S. 8,041 7,375 9.0 9.0 - International 7,090 5,988 18.4 13.0 5.4 Worldwide $15,131 $13,363 13.2 % 10.8 2.4 (Unaudited; Dollars in Millions) SIX MONTHS Percent Change 2007 2006 Total Operations Currency Sales to customers by segment of business Consumer U.S. 3,191 $2,253 41.6 % 41.6 - International 3,869 2,500 54.8 48.9 5.9 7,060 4,753 48.5 45.4 3.1 Pharmaceutical U.S. 7,894 7,383 6.9 6.9 - International 4,476 4,053 10.4 4.7 5.7 12,370 11,436 8.2 6.2 2.0 Med Devices & Diagnostics U.S. 5,203 5,110 1.8 1.8 - International 5,535 5,056 9.5 4.6 4.9 10,738 10,166 5.6 3.2 2.4 U.S. 16,288 14,746 10.5 10.5 - International 13,880 11,609 19.6 14.2 5.4 Worldwide $30,168 $26,355 14.5 % 12.1 2.4 Johnson & Johnson and Subsidiaries Supplementary Sales Data (Unaudited; Dollars in Millions) SECOND QUARTER Percent Change 2007 2006 Total Operations Currency Sales to customers by geographic area U.S. $8,041 $7,375 9.0 % 9.0 - Europe 3,907 3,295 18.6 11.0 7.6 Western Hemisphere excluding U.S. 1,131 876 29.1 24.1 5.0 Asia-Pacific, Africa 2,052 1,817 12.9 11.3 1.6 International 7,090 5,988 18.4 13.0 5.4 Worldwide $15,131 $13,363 13.2 % 10.8 2.4 (Unaudited; Dollars in Millions) SIX MONTHS Percent Change 2007 2006 Total Operations Currency Sales to customers by geographic area U.S. $16,288 $14,746 10.5 % 10.5 - Europe 7,720 6,366 21.3 13.0 8.3 Western Hemisphere excluding U.S. 2,177 1,698 28.2 25.5 2.7 Asia-Pacific, Africa 3,983 3,545 12.4 10.9 1.5 International 13,880 11,609 19.6 14.2 5.4 Worldwide $30,168 $26,355 14.5 % 12.1 2.4 Johnson & Johnson and Subsidiaries Condensed Consolidated Statement of Earnings (Unaudited; in Millions Except Per Share Figures) SECOND QUARTER 2007 2006 Percent Percent Percent Increase Amount to Sales Amount to Sales (Decrease) Sales to customers $15,131 100.0 $13,363 100.0 13.2 Cost of products sold 4,358 28.8 3,788 28.3 15.0 Selling, marketing and administrative expenses 5,029 33.3 4,351 32.6 15.6 Research expense 1,866 12.3 1,828 13.7 2.1 In-process research & development (IPR&D) - - 87 0.6 Interest (income)expense, net (36) (0.2) (196) (1.5) Other (income)expense, net (117) (0.8) (98) (0.7) Earnings before provision for taxes on income 4,031 26.6 3,603 27.0 11.9 Provision for taxes on income 950 6.2 783 5.9 21.3 Net earnings $3,081 20.4 $2,820 21.1 9.3 Net earnings per share (Diluted) $1.05 $0.95 10.5 Average shares outstanding (Diluted) 2,922.5 2,974.4 Effective tax rate 23.6% 21.7% Adjusted earnings before provision for taxes and net earnings Earnings before provision for taxes on income $4,031 26.6 $3,690(1) 27.6 9.2 Net earnings $3,081 20.4 $2,907(1) 21.7 6.0 Net earnings per share (Diluted) $1.05 $0.98(1) 7.1 Effective tax rate 23.6% 21.2% (1) The difference between as reported earnings before provision for taxes on income and net earnings and adjusted earnings before provision for taxes on income and net earnings is the exclusion of IPR&D of $87 million before tax with no tax benefit, or $0.03 per share. Johnson & Johnson and Subsidiaries Condensed Consolidated Statement of Earnings (Unaudited; in Millions Except Per Share Figures) SIX MONTHS 2007 2006 Percent Percent Percent Increase Amount to Sales Amount to Sales (Decrease) Sales to customers $30,168 100.0 $26,355 100.0 14.5 Cost of products sold 8,743 29.0 7,400 28.1 18.1 Selling, marketing and administrative expenses 9,831 32.5 8,446 32.0 16.4 Research expense 3,518 11.7 3,360 12.7 4.7 In-process research & development (IPR&D) 807 2.7 124 0.5 Interest (income)expense, net (69) (0.2) (377) (1.4) Other (income)expense, net (345) (1.1) (816) (3.1) Earnings before provision for taxes on income 7,683 25.4 8,218 31.2 (6.5) Provision for taxes on income 2,029 6.7 2,093 8.0 (3.1) Net earnings $5,654 18.7 $6,125 23.2 (7.7) Net earnings per share (Diluted) $1.93 $2.05 (5.9) Average shares outstanding (Diluted) 2,924.9 2,982.5 Effective tax rate 26.4% 25.5% Adjusted earnings before provision for taxes and net earnings Earnings before provision for taxes on income $8,490(1) 28.1 $7,720(2) 29.3 10.0 Net earnings $6,461(1) 21.4 $5,873(2) 22.3 10.0 Net earnings per share (Diluted) $2.21(1) $1.97(2) 12.2 Effective tax rate 23.9% 23.9% (1) The difference between as reported earnings before provision for taxes on income and net earnings and net earnings per share (diluted) is IPR&D of $807 million with no tax benefit and $0.28 per share, respectively. (2) The difference between as reported earnings before provision for taxes on income and net earnings and net earnings per share (diluted)is the Guidant acquisition termination fee of $622 million and $368 million and $0.12 per share, respectively, and IPR&D of $124 million and $116 million and $0.04 per share, respectively. Johnson & Johnson REPORTED SALES vs. PRIOR PERIOD $MM CURRENT QUARTER % Change -------------------------------- 2Q 2Q Reported Operational** Currency 2007 2006 PHARMACEUTICAL SEGMENT* ACIPHEX/PARIET US 161 145 10% 10% 0% Intl 175 163 8% 2% 6% WW 336 308 9% 6% 3% Anti-Psychotics(1) US 653 568 15% 15% 0% Intl 484 468 3% -2% 5% WW 1,137 1,036 10% 7% 3% CONCERTA US 199 174 14% 14% 0% Intl 56 43 32% 25% 7% WW 255 217 18% 16% 2% DURAGESIC US 97 121 -20% -20% 0% Intl 192 215 -11% -15% 4% WW 289 336 -14% -17% 3% EPREX/PROCRIT US 449 524 -14% -14% 0% Intl 309 284 9% 2% 7% WW 758 808 -6% -8% 2% Hormonal Contraceptives US 175 188 -7% -7% 0% Intl 65 59 9% 3% 6% WW 240 247 -3% -4% 1% LEVAQUIN US 343 330 4% 4% 0% Intl 14 10 44% 40% 4% WW 357 340 5% 5% 0% REMICADE US 625 595 5% 5% - Intl 244 182 34% 34% - WW 869 777 12% 12% - TOPAMAX US 472 393 20% 20% 0% Intl 106 102 4% -2% 6% WW 578 495 17% 16% 1% (1) Includes Risperdal, Risperdal Consta & Invega YEAR TO DATE % Change ------------------------------- 2007 2006 Reported Operational** Currency YTD YTD PHARMACEUTICAL SEGMENT* ACIPHEX/PARIET US 320 291 10% 10% 0% Intl 352 323 9% 3% 6% WW 672 614 9% 6% 3% Anti-Psychotics(1) US 1,363 1,154 18% 18% 0% Intl 952 901 6% 0% 6% WW 2,315 2,055 13% 10% 3% CONCERTA US 399 367 9% 9% 0% Intl 109 85 29% 21% 8% WW 508 452 12% 11% 1% DURAGESIC US 212 231 -8% -8% 0% Intl 379 430 -11% -16% 5% WW 591 661 -11% -14% 3% EPREX/PROCRIT US 979 1,052 -7% -7% 0% Intl 596 542 10% 3% 7% WW 1,575 1,594 -1% -3% 2% Hormonal Contraceptives US 350 386 -10% -10% 0% Intl 127 115 11% 5% 6% WW 477 501 -5% -6% 1% LEVAQUIN US 802 723 11% 11% 0% Intl 30 20 47% 47% 0% WW 832 743 12% 12% 0% REMICADE US 1,225 1,160 6% 6% - Intl 375 297 26% 26% - WW 1,600 1,457 10% 10% - TOPAMAX US 973 765 27% 27% 0% Intl 215 200 8% 2% 6% WW 1,188 965 23% 22% 1% (1) Includes Risperdal, Risperdal Consta & Invega Johnson & Johnson REPORTED SALES vs. PRIOR PERIOD $MM CURRENT QUARTER % Change -------------------------------- 2Q 2Q Reported Operational** Currency 2007 2006 MEDICAL DEVICES AND DIAGNOSTICS* Cordis US 397 537 -26% -26% 0% Intl 455 531 -14% -17% 3% WW 852 1,068 -20% -21% 1% DePuy US 663 643 3% 3% 0% Intl 472 392 21% 14% 7% WW 1,135 1,035 10% 7% 3% Ethicon US 350 321 9% 9% 0% Intl 551 495 11% 5% 6% WW 901 816 10% 6% 4% Ethicon Endo-Surgery US 454 417 9% 9% 0% Intl 503 440 14% 9% 5% WW 957 857 12% 9% 3% LifeScan US 310 290 7% 7% 0% Intl 286 232 23% 16% 7% WW 596 522 14% 11% 3% Ortho-Clinical Diagnostics US 216 185 16% 16% 0% Intl 190 183 4% 0% 4% WW 406 368 10% 8% 2% Total Vision Care US 213 183 16% 16% 0% Intl 340 291 17% 17% 0% WW 553 474 17% 17% 0% YEAR TO DATE % Change ------------------------------- 2007 2006 Reported Operational** Currency YTD YTD MEDICAL DEVICES AND DIAGNOSTICS* Cordis US 821 1,067 -23% -23% 0% Intl 959 1,076 -11% -14% 3% WW 1,780 2,143 -17% -18% 1% DePuy US 1,341 1,287 4% 4% 0% Intl 951 787 21% 14% 7% WW 2,292 2,074 11% 8% 3% Ethicon US 694 617 12% 12% 0% Intl 1,077 973 11% 5% 6% WW 1,771 1,590 11% 7% 4% Ethicon Endo-Surgery US 871 797 9% 9% 0% Intl 977 854 14% 9% 5% WW 1,848 1,651 12% 9% 3% LifeScan US 602 578 4% 4% 0% Intl 543 449 21% 14% 7% WW 1,145 1,027 12% 9% 3% Ortho-Clinical Diagnostics US 434 384 13% 13% 0% Intl 365 354 3% -2% 5% WW 799 738 8% 6% 2% Total Vision Care US 408 355 15% 15% 0% Intl 658 560 17% 16% 1% WW 1,066 915 16.4% 15.2% 0.7% Johnson & Johnson REPORTED SALES vs. PRIOR PERIOD $MM CURRENT QUARTER % Change -------------------------------- 2Q 2Q Reported Operational** Currency 2007 2006 CONSUMER SEGMENT* (2) Skin Care US 338 281 20% 20% 0% Intl 419 373 12% 6% 6% WW 757 654 16% 12% 4% Baby & Kids Care US 106 96 10% 10% 0% Intl 381 325 17% 11% 6% WW 487 421 16% 11% 5% Oral Care (3) US 186 NA - - - Intl 167 NA - - - WW 353 NA - - - OTC/Nutritionals US 584 414 41% 41% 0% Intl 622 219 185% 179% 6% WW 1,206 633 91% 89% 2% Women’s Health US 164 149 10% 10% 0% Intl 299 266 12% 5% 7% WW 463 415 11% 7% 4% (2) 2007 Includes sales from acquisition of PCH (3) Oral Care not disclosed in 2006 YEAR TO DATE % Change ------------------------------- 2007 2006 Reported Operational** Currency YTD YTD CONSUMER SEGMENT* (2) Skin Care US 695 598 16% 16% 0% Intl 826 715 16% 10% 6% WW 1,521 1,313 16% 13% 3% Baby & Kids Care US 215 199 8% 8% 0% Intl 719 628 15% 9% 6% WW 934 827 13% 9% 4% Oral Care (3) US 389 NA - - - Intl 324 NA - - - WW 713 NA - - - OTC/Nutritionals US 1,239 859 44% 44% 0% Intl 1,224 427 187% 181% 6% WW 2,463 1,286 91% 89% 2% Women’s Health US 326 297 10% 10% 0% Intl 558 517 8% 2% 6% WW 884 814 9% 5% 4% (2) 2007 Includes sales from acquisition of PCH (3) Oral Care not disclosed in 2006

Johnson & Johnson

CONTACT: Press: Jeffrey J. Leebaw, +1-732-524-3350, or home,+1-821-732-6007, or Bill Price, +1-732-524-6623, or mobile,+1-732-668-3735; Investors: Louise Mehrotra, +1-732-524-6491, or StanPanasewicz, +1-732-524-2524, or Lesley Fishman, +1-732-524-3922, all forJohnson & Johnson

MORE ON THIS TOPIC