Accuretic

Warner-Lambert Company (NYSE:WLA) today reported that diluted earnings per share increased 38 percent on a 16 percent sales gain -- 19 percent at constant foreign exchange rates -- for the fourth quarter ended December 31, 1999. Unit volume growth for the quarter was 16 percent. Warner-Lambert has now reported increases in earnings per share of at least 25 percent for 10 consecutive quarters.

For the fourth quarter, diluted earnings per share were 55 cents, worldwide sales reached $3.5 billion and net income rose 40 percent to $487 million. This is compared with diluted earnings per share of 40 cents, sales of $3 billion and net income of $349 million for the same period in 1998. Earnings per share, sales and net income represent records for any quarter. The Company estimates that revenues were not materially impacted by Y2K.

For the year, worldwide sales advanced 20 percent to a record $12.9 billion compared with $10.7 billion in 1998. After adjusting for the unfavorable effects of exchange, sales grew 22 percent. Unit volume growth for the year was 20 percent. Diluted earnings per share of $1.96 increased 35 percent from 1998 and net income rose 36 percent to $1.7 billion. Earnings per share, sales and net income for 1999 are records for any year.

Prior period amounts have been restated under the pooling of interests method of accounting to include the results of operations of Agouron Pharmaceuticals, Inc., acquired on May 17, 1999.

"Warner-Lambert continues to be the fastest growing major pharmaceutical company in the world," said Lodewijk J.R. de Vink, chairman, president and chief executive officer. "The impressive results we have achieved reflect the particularly strong performance of our pharmaceutical business as well as consistent growth across our consumer businesses. As a result of the Company's vibrant growth in 1999, we are revising our 2000 earnings projections upward. Instead of a 20 percent increase, based on our current planning assumptions, we now foresee earnings per share growth of 25 percent to $2.45 per share," de Vink said. "Our superior financial performance has been driven by our ability to deliver new and medically important therapies to patients around the world. We remain committed to introducing innovative new products and, in 2000, plan to increase investment in research and development by 19 percent to approximately $1.5 billion," he added.

Pharmaceuticals the year, worldwide sales in the pharmaceutical segment, the largest of Warner-Lambert's three business segments, increased 30 percent to $8 billion as compared with $6.1 billion in 1998. At constant foreign exchange rates, sales rose 31 percent. In the U.S., sales rose 31 percent to $5.5 billion. In markets outside the U.S., sales increased 27 percent -- 30 percent at constant foreign exchange rates -- to $2.5 billion.

Pharmaceutical sales growth continues to be driven by the strong performance of Lipitor (atorvastatin calcium). Worldwide sales of Lipitor increased 71 percent to $3.7 billion in 1999. Lipitor continues to be the most prescribed cholesterol-lowering agent in the U.S., holding a 42 percent share of new prescriptions in the cholesterol-lowering market.

Also contributing to the segment's performance in 1999 were the anticonvulsant Neurontin (gabapentin), whose sales grew 78 percent to $913 million, and the antihypertensive Accupril (quinapril), whose sales increased 13 percent to $514 million.

In October, Warner-Lambert received U.S. Food and Drug Administration (FDA) approval for femhrt (norethindrone acetate and ethinyl estradiol), a combination estrogen progestin hormone replacement therapy for menopausal symptoms. In December, the Company also received approval for the antihypertensive Accuretic (quinapril/HCl hydrochlorothiazide).

Consumer Health Care

In the consumer health care segment, worldwide sales increased 10 percent to $3 billion in 1999. At constant foreign exchange rates, sales increased 11 percent. In the U.S., sales rose 14 percent to $1.7 billion. In markets outside the U.S., sales of $1.3 billion increased 5 percent, or 6 percent at constant foreign exchange rates.

Among the segment's best performing products in 1999 were Listerine mouthwash, which achieved sales of $487 million, an increase of 13 percent; Lubriderm skin care products, whose sales advanced 13 percent to $131 million; and Schick/Wilkinson Sword group, whose sales advanced 6 percent to $792 million.

For the year, the heartburn medication Zantac 75 achieved worldwide sales of $167 million. Warner-Lambert acquired exclusive rights to over-the-counter Zantac products in the U.S. and Canada as part of the dissolution of its joint venture arrangements with Glaxo Wellcome plc. Prior to this year, sales of the Glaxo Wellcome/Warner-Lambert joint venture, including Zantac 75, were not reflected in Warner-Lambert's reported sales.

Confectionery the Adams confectionery segment, worldwide sales increased 3 percent in 1999 to $2 billion. At constant foreign exchange rates, sales increased 9 percent. U.S. segment sales increased 5 percent to $693 million. In markets outside the U.S., sales rose 2 percent to $1.3 billion. At constant foreign exchange rates, sales in non-U.S. markets increased 10 percent. The foreign exchange rate impact is attributable primarily to the decreased value of the real in Brazil.

For the year, the confectionery segment's best performing products included Trident gum, which achieved sales of $341 million, an increase of 5 percent; Dentyne gum, whose sales advanced 16 percent to $158 million; Certs mints, whose sales rose 3 percent to $127 million; and Halls cough tablets, whose sales increased 2 percent to $531 million.

Statements made in the press release that state "we believe," "we expect" or otherwise state the Company's predictions for the future are forward-looking statements. Actual results might differ materially from those projected in the forward-looking statements. Additional information concerning factors that could cause actual results to materially differ from those in the forward-looking statements is contained in the Company's Annual Report on Form 10K-A for the year ended December 31, 1998, filed with the U.S. Securities and Exchange Commission. For a copy of this filing, please call the media or investor relations contacts listed on this press release.