Merck 1st Qtr 2008 Earnings

WHITEHOUSE STATION, N.J., April 21, 2008 – Merck & Co., Inc. today announced financial
results for the first quarter of 2008.

Merck reported non-GAAP (generally accepted accounting principles) earnings per
share (EPS) of $0.89 for the first quarter of 2008, excluding a $1.4 billion net aftertax gain from
a distribution received from the AstraZeneca limited partnership and restructuring charges.
GAAP EPS for the first quarter were $1.52. Worldwide sales were $5.8 billion for the quarter,
an increase of 1 percent from the first quarter of 2007. Foreign exchange favorably affected
global sales performance by 4 percent for the quarter. Net income for the first quarter of 2008
was $3,302.6 million compared with $1,704.3 million in the first quarter of 2007.

Materials and production costs were $1.2 billion for the quarter, a decrease of 19 percent
from the first quarter of 2007. The first-quarter 2008 and first-quarter 2007 costs include $15
million and $118 million, respectively, for costs associated with the global restructuring
program. The gross margin was 78.7 percent for the first quarter of 2008 and
73.6 percent for the first quarter of 2007, reflecting 0.3 and 2.0 percentage point unfavorable
impacts, respectively, relating to the restructuring costs noted above.
Marketing and administrative expenses were $1.9 billion for the first quarter of 2008, an
increase of 3 percent from the first quarter of 2007. Included in marketing and administrative
expenses in the first quarter of 2008 are $40 million in reserves solely for future legal defense
costs for litigation related to FOSAMAX (alendronate sodium). Research and development expenses were $1.1 billion for the quarter, an increase of 5 percent from the first quarter of 2007.

Restructuring costs, primarily representing employee separation costs associated with
the Company's global restructuring program, net of gains on the sales of facilities and related
assets, were $70 million for the first quarter of 2008. Total overall costs associated with the
Company's global restructuring program included in materials and production and restructuring
costs were $85 million and $186 million for the first quarter of 2008 and 2007, respectively,
primarily related to separations, accelerated depreciation and asset impairment costs.

Other (income) expense for the quarter includes a $249 million gain on Merck's
divestiture of its remaining worldwide rights to AGGRASTAT (tirofiban hydrochloride) to Iroko
Pharmaceuticals and a gain of $2.2 billion from a distribution received from the AstraZeneca
limited partnership in which Merck maintains an interest. Merck also recorded a $300 million
expense in the first quarter for a contribution to The Merck Company Foundation. The
contribution reinforces the Company's strong commitment to enhancing the health and wellbeing of people around the world. Other (income) expense also includes a $55 million charge in
connection with the anticipated resolution of a previously disclosed investigation by a group of
Attorneys General from 31 states and the District of Columbia into whether the Company
violated state consumer protection laws with respect to the sales and marketing of VIOXX
(rofecoxib). The resolution of these matters still is subject to execution of definitive agreements.
The first-quarter 2008 effective tax rate of 25.1 percent reflects the impacts of the gain
on distribution from the AstraZeneca limited partnership and restructuring charges. The
effective tax rate excluding the impact of these items was 14.5 percent, reflecting a first-quarter
benefit of approximately eight percentage points relating to the realization of foreign tax credits.

Financial Guidance
Merck anticipates a full-year 2008 non-GAAP EPS range of $3.28 to $3.38 that adjusts for
certain items and a 2008 GAAP EPS range of $3.84 to $4.00. The Company expects a generally
even distribution of non-GAAP EPS across the remaining quarters in 2008. Both the non-GAAP
and GAAP EPS ranges include a $700 million reduction in equity income guidance, attributable to the lower-than-anticipated contribution from the Merck/Schering-Plough joint venture, as well as updates to other guidance elements to reflect current business trends. The 2008 GAAP guidance
includes:
• A pretax charge of approximately $100 million to $300 million associated with the
Company's global restructuring program.
• The $2.2 billion gain from a distribution from the AstraZeneca limited partnership.