Merck Guidance For 2008-2010

Merck Provides 2009 Financial Guidance; Reaffirms Guidance for 2008 and 2010

>2008 Anticipated Non-GAAP EPS Range of $3.28 to $3.32, Excluding Certain Items; 2008 GAAP EPS Range of $3.45 to $3.55
>2009 Anticipated Non-GAAP EPS Range of $3.15 to $3.30, Excluding Certain Items; 2009 GAAP EPS Range of $2.95 to $3.17
>2009 Guidance Includes an Expected Foreign Exchange Impact of Negative 3 Percent on Revenue and a Negative 6 Percent Impact on EPS
>Merck Anticipates Compound Annual Non-GAAP Revenue Growth (Including 50 Percent of Joint Venture Revenue) of 2 to 4 Percent from 2005 to 2010; GAAP Compound Annual Revenue Growth of 1 to 3 Percent Expected
>Company Expects 2005 to 2010 Compound Annual Non-GAAP EPS Growth in Mid-to-High Single-Digits, Excluding Certain Items; GAAP EPS Compound Annual Growth Rate Expected to Increase by Double-Digits

Elements of Long-Term Guidance

The Company had previously provided guidance on the 2005 to 2010 time period. Merck anticipates non-GAAP revenues, including 50 percent of the revenues from our joint ventures, will have a compound annual growth rate of 2 to 4 percent from 2005 to 2010. Merck's GAAP reported sales, excluding 50 percent of the revenues from our joint ventures, are expected to have a compound annual growth rate of 1 to 3 percent from 2005 to 2010.
Non-GAAP EPS compound annual growth rate from 2005 to 2010 is expected to be in the mid-to-high single-digits, excluding certain items. Merck anticipates EPS compound annual growth rate on a GAAP basis to increase by double-digits over the same period. The non-GAAP EPS guidance excludes restructuring charges and net tax charges of $0.43 per share in 2005 and anticipated charges related to the 2008 restructuring program of $100 million to $400 million in 2010. For the purpose of the 2010 guidance, the Company is excluding any one-time gains that may result from AstraZeneca exercising its option with respect to AstraZeneca LP.
Merck anticipates capital expenditures of approximately $1.4 billion in 2008. Capital expenditures for 2009 are expected to be approximately $1.6 billion.