Abbott to Separate into Two Leading Companies in Diversified Medical Products and Research-Based Pharmaceuticals

Abbott Park, Illinois (ots/PRNewswire) -

- Two publicly traded companies will offer shareholders
distinct opportunities given unique investment identities, business profiles
and attributes
- Builds on a decade of strategic and operational advancements

Today Abbott announced that it plans to separate into two
publicly traded companies, one in diversified medical products and
the other in research-based pharmaceuticals. The diversified medical
products company will consist of Abbott's existing diversified
medical products portfolio, including its branded generic
pharmaceutical, devices, diagnostic and nutritional businesses, and
will retain the Abbott name. The research-based pharmaceutical
company will include Abbott's current portfolio of proprietary
pharmaceuticals and biologics and will be named later. Both companies
will be global leaders in their respective industries.

"Today's news is a significant event for Abbott, and reflects
another dynamic change in our company's 123-year history,
strengthening our outlook for strong and sustainable growth and
shareholder returns," said Miles D. White, chairman and chief
executive officer, Abbott.

Abbott's proprietary pharmaceutical business has delivered
market-leading performance with a sustainable mix of products and
built a strong pipeline of proprietary medicines through internal
discovery, in-licensing and collaboration efforts. Abbott also has
leadership positions in its diversified businesses, including
established pharmaceuticals, nutritionals, diagnostics, and vascular
devices, where the company is now the global leader in interventional
cardiology.

Creating Two Dynamic Health Care Companies

The research-based pharmaceutical company has nearly $18 billion
in annual revenue today and will have a sustainable portfolio of
market-leading brands, including Humira, Lupron, Synagis, Kaletra,
Creon and Synthroid. An attractive pipeline of innovative R&D assets
- in important specialty therapeutic areas such as Hepatitis C,
immunology, chronic kidney disease, women's health, oncology and
neuroscience - will help drive future growth.

The diversified medical products company has approximately $22
billion in annual revenue today and a durable mix of products
balanced across four major businesses. It will continue to target
double-digit ongoing earnings-per-share growth, with opportunities
for geographic expansion, particularly in high-growth emerging
markets. The company will have an extensive, broad-based pipeline of
new products and technologies as well as opportunities for
significant margin expansion.

Mr. White will remain chairman and CEO of Abbott, the diversified
medical products company. Richard A. Gonzalez, currently executive
vice president, Global Pharmaceuticals, will become chairman and CEO
of the research-based pharmaceutical company. Mr. Gonzalez is a more
than 30-year Abbott veteran and was previously president and chief
operating officer of Abbott.

Profiles of the Two Companies

The two companies have evolved into distinct investment and
business opportunities:

- The research-based pharmaceutical company will focus on
select specialty products with breakthrough innovation that serve
patient needs in some of the most critical medical areas, such as
immunology, Multiple Sclerosis, chronic kidney disease, Hepatitis C,
women's health and oncology. This company will continue to generate the
majority of its revenue from developed markets. The company's
sustainable portfolio and advancing pipeline, including established
biologics expertise, have the potential to deliver accelerating revenue
growth in the coming years.
- The diversified medical products company will be one of the
largest and fastest growing investment opportunities in medical products
with strong sales and ongoing earnings-per-share growth and a large,
broad mix of products addressing many essential areas of health care. It
will generate nearly 40 percent of its sales in high-growth emerging
markets, with further expansion expected in the coming years.

"Abbott will be one of the largest and fastest-growing global
diversified medical products companies, with a compelling portfolio
of durable growth businesses in medical technology, branded generic
pharmaceuticals and nutritionals," said Mr. White. "We will continue
to grow our product lines, market share and global presence,
especially in emerging markets."

"The research-based pharmaceutical company will be a leader in
its industry with a strong and sustainable portfolio of specialty
medicines and a promising pipeline of future products," said Mr.
Gonzalez. "This business has been delivering market-leading
performance and is well positioned for future success."

Following are brief profiles of the two companies as their
businesses exist today:

The Research-Based Pharmaceutical Company

- Annual Sales: Nearly $18 Billion (based on 2011 estimates)
- Portfolio: Numerous leading medicines, including: Humira,
Lupron, Synagis, Zemplar, Kaletra, Creon, Duodopa, Synthroid, Androgel
and others.
- Pipeline: Advancing pipeline of promising new specialty
medicines and formulations, including more than 20 new compounds or
indications in Phase 2 or 3 development across such disease states as
immunology, chronic kidney disease, Hepatitis C, women's health,
oncology, and neuroscience, including Multiple Sclerosis and Parkinson's
and Alzheimer's diseases.

The Diversified Medical Products Company (Abbott)

- Annual Sales: Approximately $22 Billion (based on 2011
estimates)
- Portfolio: Market-leading positions in established
pharmaceuticals (branded generics outside the U.S.), adult and pediatric
nutritionals, core laboratory diagnostics, point of care and molecular
diagnostics, and medical devices, including vascular devices, diabetes
care and vision care. Abbott will have an extensive, broad-based
pipeline of new technologies and products.
- Global and Emerging Markets Presence: Products in more than 130
countries with nearly 40 percent of sales in emerging markets today;
Abbott is the leading pharmaceutical company in India and has a
significant and growing presence in many other emerging markets.

Transaction Details

The transaction is intended to take the form of a tax-free
distribution to Abbott shareholders of a new publicly traded stock
for the new pharmaceutical company. The expected stock distribution
ratio will be determined at a future date.

It is expected that the two companies will each pay a dividend
that, when combined, will equal the current Abbott dividend at the
time of separation.

This announcement will not impact Abbott's ongoing
earnings-per-share guidance for 2011. The transaction is expected to
be completed by the end of next year, but is subject to final
approval by the Abbott board of directors, receipt of a favorable
ruling from the Internal Revenue Service on the tax-free nature of
the transaction, and the effectiveness of a Form 10 registration
statement that will be filed with the Securities and Exchange
Commission that will include information about the distribution and
related matters. Abbott expects to incur one-time charges related to
the transaction during the periods preceding the separation, to be
quantified at a later date.

Abbott Conference Call

Abbott will discuss the transaction on its earnings conference
call today at 8 a.m. Central time; 9 a.m. Eastern time. The live Web
cast will be accessible through Abbott's Investor Relations Web site
at http://www.abbottinvestor.com.

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 nearly 90,000 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 http://www.abbott.com.

-Private Securities Litigation Reform Act of 1995 -

A Caution Concerning Forward-Looking Statements

Some statements in this news release may be forward-looking
statements for purposes of the Private Securities Litigation Reform
Act of 1995, including the planned separation of the research-based
pharmaceutical company from the diversified medical products company
and the expected financial results of the two companies after the
separation. 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, and there is no assurance as to the timing of the planned
separation or whether it will be completed. 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, 2010, and in the interim reports filed on Form
10-Q for subsequent quarterly periods, 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.

ots Originaltext: Abbott Laboratories
Im Internet recherchierbar: http://www.presseportal.de

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Abbott