Johnson & Johnson Statement Regarding Guidant Corporation Civil Suit

NEW BRUNSWICK, N.J., Nov. 7 /PRNewswire-FirstCall/ -- Johnson & Johnson has been notified that Guidant Corporation has filed a civil suit against Johnson & Johnson in the United States District Court for the Southern District of New York. The complaint alleges that Johnson & Johnson is required to complete the acquisition of Guidant under the merger agreement the companies entered into in December 2004.

Johnson & Johnson believes that it is not required under the terms of the merger agreement to close the Guidant transaction. The Company views the previously announced product recalls at Guidant and the related regulatory investigations, claims and other developments as serious matters affecting both Guidant’s short-term results and long-term outlook. Johnson & Johnson believes those events have had a material adverse effect on Guidant and, as a result, that it is not required to close the acquisition.

Johnson & Johnson will vigorously oppose the lawsuit and take all necessary action to enforce its rights under the merger agreement.

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 200 Johnson & Johnson operating companies employ approximately 115,000 men and women in 57 countries and sell products throughout the world.

(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 the Company’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(b) of the Company’s Annual Report on Form 10-K for the fiscal year ended January 2, 2005. Copies of this Form 10-K, as well as subsequent filings, are available online at www.sec.gov or on request from the Company. The Company assumes no obligation to update any forward-looking statements as a result of new information or future events or developments.)

Johnson & Johnson

CONTACT: Media - Jeffrey J. Leebaw, +1-732-524-3350, Home -+1-732-812-6007; Investor - Helen E. Short or Louise Mehrotra,+1-732-524-6491, or Stan Panasewicz, +1-732-524-2524, all for Johnson &Johnson

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