Johnson & Johnson
Apr 17, 2007

Johnson & Johnson Reports 2007 First-Quarter Results: Sales Increase of 15.7% and EPS of $.88 Versus $1.10 a Year Ago; Excluding Special Items, EPS was $1.16, an increase of 17.2% *

NEW BRUNSWICK, N.J., April 17, 2007 /PRNewswire-FirstCall via COMTEX News Network/ -- Johnson & Johnson today announced record first-quarter sales of $15.0 billion, an increase of 15.7% as compared to the first quarter of 2006. Operational growth was 13.3% with a positive currency impact of 2.4%. Domestic sales were up 11.9%, while international sales increased 20.8%, reflecting operational growth of 15.4% 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 6.3% operationally.

Net earnings and diluted earnings per share for the first quarter of 2007 were $2.6 billion and $.88, respectively. The first quarter of 2007 included an after-tax in-process research and development charge of $807 million associated with the acquisition of Conor Medsystems, Inc. The first quarter of 2006 included an after-tax gain of $368 million associated with the termination of the Guidant acquisition agreement as well as after-tax in- process research and development charges of $29 million associated with the acquisitions of Hand Innovations LLC and Future Medical Systems S.A. Excluding the impact of these special items, net earnings for the current quarter were $3.4 billion and diluted earnings per share were $1.16, representing increases of 14.0% and 17.2%, respectively, as compared to the same period in 2006.*

"Our solid first-quarter results demonstrate the strength of our broadly- based businesses, especially the strong performance of our pharmaceutical business," said William C. Weldon, Chairman and Chief Executive Officer. "We are delighted to add the Pfizer Consumer Healthcare and Conor Medsystems businesses to the Johnson & Johnson family of companies. Our strategy of being broadly-based continues to serve us well and is one of the keys to our consistent long-term performance."

Worldwide Medical Devices and Diagnostics sales of $5.3 billion for the first quarter represented a 6.2% increase over the prior year with operational growth of 3.7% and a positive impact from currency of 2.5%. Domestic sales increased 2.5%, while international sales increased 9.8% (4.7% from operations and 5.1% from currency).

Primary contributors to the operational growth included Vistakon's disposable contact lenses; Ethicon Endo-Surgery's minimally invasive products; Ethicon's wound care and women's health products, and DePuy's orthopaedic joint reconstruction, sports medicine and trauma businesses. This growth was partially offset by challenges faced by Cordis in the drug-eluting stent market.

During the quarter, the Company announced the completion of the acquisition of Conor Medsystems, Inc., a cardiovascular device company with a unique controlled drug-delivery technology.

In April, the Company submitted a Premarket Approval (PMA) application with the U.S. Food and Drug Administration (FDA) for its adjustable gastric band, an implantable device for the treatment of morbid obesity.

Worldwide Pharmaceutical sales of $6.2 billion for the first quarter represented an increase over the prior year of 10.6% with operational growth of 8.6% and a positive impact from currency of 2.0%. Domestic sales increased 9%, while international sales increased 13.6% (7.7% from operations and 5.9% from currency).

Sales growth reflects the strong performance of TOPAMAX, an antiepileptic and a treatment for the prevention of migraine headaches; LEVAQUIN, an anti- infective, and our antipsychotic franchise, which includes RISPERDAL, RISPERDAL CONSTA and INVEGA.

During the quarter, the European Commission granted conditional marketing authorization for PREZISTA, a protease inhibitor for the treatment of HIV-1 infected patients. In addition, the FDA granted pediatric exclusivity for both LEVAQUIN and RISPERDAL, extending the marketing exclusivity for these products by an additional six months.

Worldwide Consumer segment sales of $3.5 billion for the first quarter represented a 48.5% increase over the prior year with operational growth of 45.7% and a positive impact from currency of 2.8%. Domestic sales increased 41.7%, while international sales increased 54.9% (49.4% from operations and 5.5% 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 6.7% operationally.

Sales growth in the combined business reflects the strong performance of McNeil Consumer's reformulated TYLENOL over-the-counter upper respiratory products; LISTERINE antiseptic mouthrinse; the skin care lines of AVEENO and CLEAN & CLEAR; BENADRYL allergy products; ROGAINE hair regrowth treatment, and VISINE eye care products.

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 121,000 men and women in 57 countries and sell products throughout the world.

* Net earnings and diluted earnings per share excluding in-process research and development charges and the gain associated with the termination of the Guidant acquisition agreement 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 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)             FIRST QUARTER
                                                         Percent Change

                                     2007     2006  Total  Operations Currency
    Sales to customers by
    segment of business
    Consumer
        U.S.                       $1,629    1,150   41.7 %   41.7        -
        International               1,867    1,205   54.9     49.4      5.5
                                    3,496    2,355   48.5     45.7      2.8
    Pharmaceutical
        U.S.                        4,034    3,701    9.0      9.0        -
        International               2,187    1,925   13.6      7.7      5.9
                                    6,221    5,626   10.6      8.6      2.0
    Med Devices & Diagnostics
        U.S.                        2,584    2,520    2.5      2.5        -
        International               2,736    2,491    9.8      4.7      5.1
                                    5,320    5,011    6.2      3.7      2.5

    U.S.                            8,247    7,371   11.9     11.9        -
    International                   6,790    5,621   20.8     15.4      5.4
    Worldwide                     $15,037   12,992   15.7 %   13.3      2.4



    Johnson & Johnson and Subsidiaries
    Supplementary Sales Data

    (Unaudited; Dollars in Millions)               FIRST QUARTER
                                                         Percent Change

                                     2007     2006  Total  Operations Currency

    Sales to customers by
    geographic area
    U.S.                           $8,247    7,371   11.9 %   11.9      -

    Europe                          3,812    3,071   24.1     15.0     9.1
    Western Hemisphere
     excluding U.S.                 1,046      822   27.3     26.9     0.4
    Asia-Pacific, Africa            1,932    1,728   11.8     10.4     1.4
    International                   6,790    5,621   20.8     15.4     5.4

    Worldwide                     $15,037   12,992   15.7 %   13.3     2.4


    Johnson & Johnson and Subsidiaries
    Condensed Consolidated Statement of Earnings


    (Unaudited; in Millions
    Except Per Share Figures)                    FIRST QUARTER

                                    2007                 2006        Percent
                                       Percent              Percent  Increase
                              Amount  to Sales    Amount   to Sales (Decrease)
    Sales to customers       $15,037    100.0    $12,992     100.0    15.7
    Cost of products sold      4,385     29.1      3,612      27.8    21.4
    Selling, marketing and
     administrative expenses   4,802     31.9      4,095      31.5    17.3
    Research expense           1,652     11.0      1,532      11.8     7.8
    In-process research &
     development                 807      5.4         37       0.3
    Interest (income)expense,
     net                         (33)    (0.2)      (181)     (1.4)
    Other (income)expense, net  (228)    (1.5)      (718)     (5.5)
    Earnings before
     provision for
     taxes on income           3,652     24.3      4,615      35.5   (20.9)
    Provision for taxes
     on income                 1,079      7.2      1,310      10.1   (17.6)
    Net earnings              $2,573     17.1     $3,305      25.4   (22.1)


    Net earnings per share
     (Diluted)                 $0.88               $1.10             (20.0)

    Average shares outstanding
     (Diluted)               2,924.3             2,992.7

    Effective tax rate          29.5%               28.4%

    Adjusted earnings before provision for taxes and net earnings
	
         Earnings before
          provision for taxes on
          income              $4,459 (1) 29.7     $4,030 (2)  31.0    10.6
         Net earnings         $3,380 (1) 22.5     $2,966 (2)  22.8    14.0
         Net earnings per share
          (Diluted)            $1.16 (1)           $0.99 (2)          17.2
         Effective tax rate     24.2%               26.4%


    (1) The difference between as reported earnings before provision for taxes
    on income, 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, net earnings and net earnings per share (diluted) is the
    Guidant acquisition agreement termination fee income of $622 million, $368
    million and $0.12 per share, respectively, and IPR&D of $37 million, $29
    million and $0.01 per share, respectively.




                                JOHNSON & JOHNSON
                         REPORTED SALES vs. PRIOR PERIOD
                                       $MM

                                                         % Change
                        1Q 2007     1Q 2006   Reported Operational**  Currency

    PHARMACEUTICAL SEGMENT*

    ACIPHEX/PARIET
    US                     159         146         9%       9%           --
    Intl                   177         160        10%       4%           6%
    WW                     336         306        10%       7%           3%

    Anti-Psychotics (1)
    US                     710         585        21%      21%           --
    Intl                   468         433         8%       2%           6%
    WW                   1,178       1,018        16%      13%           3%

    CONCERTA
    US                     200         193         3%       3%           --
    Intl                    52          42        25%      18%           7%
    WW                     252         235         7%       6%           1%

    DURAGESIC
    US                     116         110         5%       5%           --
    Intl                   187         215       -13%     -18%           5%
    WW                     303         325        -7%     -10%           3%

    EPREX/PROCRIT
    US                     530         527         1%       1%           --
    Intl                   287         259        11%       4%           7%
    WW                     817         786         4%       2%           2%

    Hormonal Contraceptives
    US                     174         198       -12%     -12%           --
    Intl                    63          56        13%       8%           5%
    WW                     237         254        -7%      -8%           1%

    LEVAQUIN
    US                     460         393        17%      17%           --
    Intl                    15          10        50%      54%          -4%
    WW                     475         403        18%      18%           0%

    REMICADE
    US                     600         566         6%       6%           --
    Intl                   131         115        14%      14%           0%
    WW                     731         681         7%       7%           0%

    TOPAMAX
    US                     501         373        34%      34%           --
    Intl                   109          98        11%       5%           6%
    WW                     610         471        30%      29%           1%

    (1) Includes Risperdal, Risperdal Consta & Invega

    *  Selected Areas
       (unaudited)
    ** Operational growth excludes the effect of currency


                                                        % Change
                   2007 YTD     2006 YTD     Reported  Operational**  Currency

    PHARMACEUTICAL SEGMENT*

    ACIPHEX/PARIET
    US                159          146           9%          9%          --
    Intl              177          160          10%          4%          6%
    WW                336          306          10%          7%          3%

    Anti-Psychotics (1)
    US                710          585          21%         21%          --
    Intl              468          433           8%          2%          6%
    WW              1,178        1,018          16%         13%          3%

    CONCERTA
    US                200          193           3%          3%          --
    Intl               52           42          25%         18%          7%
    WW                252          235           7%          6%          1%

    DURAGESIC
    US                116          110           5%          5%          --
    Intl              187          215         -13%        -18%          5%
    WW                303          325          -7%        -10%          3%

    EPREX/PROCRIT
    US                530          527           1%          1%          --
    Intl              287          259          11%          4%          7%
    WW                817          786           4%          2%          2%

    Hormonal Contraceptives
    US                174          198         -12%        -12%          --
    Intl               63           56          13%          8%          5%
    WW                237          254          -7%         -8%          1%

    LEVAQUIN
    US                460          393          17%         17%          --
    Intl               15           10          50%         54%         -4%
    WW                475          403          18%         18%          0%

    REMICADE
    US                600          566           6%          6%          --
    Intl              131          115          14%         14%          0%
    WW                731          680           7%          7%          0%

    TOPAMAX
    US                501          373          34%         34%          --
    Intl              109           98          11%          5%          6%
    WW                610          471          30%         29%          1%

    (1) Includes Risperdal, Risperdal Consta & Invega

    *  Selected Areas
       (unaudited)
    ** Operational growth excludes the effect of currency



                                JOHNSON & JOHNSON
                         REPORTED SALES vs. PRIOR PERIOD
                                       $MM


                                                         % Change
                    1Q 2007     1Q 2006     Reported   Operational**  Currency


    MEDICAL DEVICES
    AND DIAGNOSTICS*

    Cordis
    US                424          530         -20%        -20%          --
    Intl              504          545          -7%        -10%          3%
    WW                928        1,075         -14%        -15%          1%

    DePuy
    US                678          644           5%          5%          --
    Intl              479          395          21%         13%          8%
    WW              1,157        1,039          11%          8%          3%

    Ethicon
    US                344          296          16%         16%          --
    Intl              526          478          10%          4%          6%
    WW                870          774          12%          9%          3%

    Ethicon Endo-Surgery
    US                417          380          10%         10%          --
    Intl              474          414          15%          9%          6%
    WW                891          794          12%          9%          3%

    LifeScan
    US                292          288           1%          1%          --
    Intl              257          216          19%         12%          7%
    WW                549          504           9%          6%          3%

    Ortho-Clinical Diagnostics
    US                219          199          10%         10%          --
    Intl              174          171           2%         -3%          5%
    WW                393          370           6%          4%          2%

    Total Vision Care
    US                195          172          14%         14%          --
    Intl              318          269          18%         16%          2%
    WW                513          441          16%         15%          1%

    *  Selected Areas
       (unaudited)
    ** Operational growth excludes the effect of currency


                                                        % Change
                   2007 YTD     2006 YTD     Reported  Operational**  Currency

    MEDICAL DEVICES
    AND DIAGNOSTICS*

    Cordis
    US                424          530         -20%        -20%          --
    Intl              504          545          -7%        -10%          3%
    WW                928        1,075         -14%        -15%          1%

    DePuy
    US                678          644           5%          5%          --
    Intl              479          395          21%         13%          8%
    WW              1,157        1,039          11%          8%          3%

    Ethicon
    US                344          296          16%         16%          --
    Intl              526          478          10%          4%          6%
    WW                870          774          12%          9%          3%

    Ethicon Endo-Surgery
    US                417          380          10%         10%          --
    Intl              474          414          15%          9%          6%
    WW                891          794          12%          9%          3%

    LifeScan
    US                292          288           1%          1%          --
    Intl              257          216          19%         12%          7%
    WW                549          504           9%          6%          3%

    Ortho-Clinical Diagnostics
    US                219          199          10%         10%          --
    Intl              174          171           2%         -3%          5%
    WW                393          370           6%          4%          2%

    Total Vision Care
    US                195          172          14%         14%          --
    Intl              318          269          18%         16%          2%
    WW                513          441          16%         15%          1%

    *  Selected Areas
       (unaudited)
    ** Operational growth excludes the effect of currency


                              JOHNSON & JOHNSON
                       REPORTED SALES vs. PRIOR PERIOD
                                     $MM

                                                         % Change
                    1Q 2007     1Q 2006     Reported   Operational**  Currency


    CONSUMER SEGMENT* (2)

    Skin Care
    US                357          318          13%         13%          --
    Intl              407          341          19%         13%          6%
    WW                764          659          16%         13%          3%

    Baby & Kids Care
    US                109          103           5%          5%          --
    Intl              338          303          12%          7%          5%
    WW                447          406          10%          6%          4%

    Oral Care (3)
    US                203           NA           --          --          --
    Intl              156           NA           --          --          --
    WW                359           NA           --          --          --

    OTC/Nutritionals
    US                655          445          47%         47%          --
    Intl              602          208         189%        183%          6%
    WW              1,257          653          92%         90%          2%

    Women's Health
    US                163          148          10%         10%          --
    Intl              258          251           3%         -2%          5%
    WW                421          399           6%          3%          3%


    (2) 2007 Includes sales from acquisition of PCH
    (3) Oral Care not disclosed in 2006

    *  Selected Areas
       (unaudited)
    ** Operational growth excludes the effect of currency



                                                         % Change
                   2007 YTD     2006 YTD     Reported  Operational**  Currency

    CONSUMER SEGMENT* (2)

    Skin Care
    US                357          318          13%         13%          --
    Intl              407          341          19%         13%          6%
    WW                764          659          16%         13%          3%

    Baby & Kids Care
    US                109          103           5%          5%          --
    Intl              338          303          12%          7%          5%
    WW                447          406          10%          6%          4%

    Oral Care (3)
    US                203           --           --          --          --
    Intl              156           --           --          --          --
    WW                359           --           --          --          --

    OTC/Nutritionals
    US                655          445          47%         47%          --
    Intl              602          208         189%        183%          6%
    WW              1,257          653          92%         90%          2%

    Women's Health
    US                163          148          10%         10%          --
    Intl              258          251           3%         -2%          5%
    WW                421          399           6%          3%          3%


    (2) 2007 Includes sales from acquisition of PCH
    (3) Oral Care not disclosed in 2006

    *  Selected Areas
       (unaudited)
    ** Operational growth excludes the effect of currency

SOURCE Johnson & Johnson

Press, Jeffrey J. Leebaw, +1-732-524-3350, +1-732-821-6007 - Home, or Bill Price,
+1-732-524-6623, +1-732-668-3735 - Mobile, or Investors, Louise Mehrotra,
+1-732-524-6491, Stan Panasewicz, +1-732-524-2524, Lesley Fishman, +1-732-524-3922
http://www.jnj.com/

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