Merck Announces 2nd Quarter Dividend

Merck Announces Second-Quarter 2009 Dividend

WHITEHOUSE STATION, N.J., Feb. 24, 2009 - The Board of Directors of Merck & Co., Inc., meeting today, declared a quarterly dividend of $0.38 per share on the Company's common stock for the second quarter of 2009. The $0.38 per share dividend is payable on April 1, 2009 to stockholders of record at the close of business on March 6, 2009.

Merck 4th Quarter 2008 Earnings Beats The Street

Merck Announces Fourth-Quarter and Full-Year 2008 Financial Results

>Company Announces Fourth-Quarter 2008 Non-GAAP EPS of $0.87, Excluding 9 Cents of Restructuring Charges; Fourth-Quarter GAAP EPS of $0.78
>Merck Reports Full-Year 2008 Non-GAAP EPS of $3.42, Excluding Certain Items; Full-Year GAAP EPS of $3.64
>Strong Performance of Newer Products, JANUVIA, JANUMET, ROTATEQ and ISENTRESS, Continued During 2008
>Merck Reaffirms Full-Year 2009 Non-GAAP EPS Range of $3.15 to $3.30, Excluding Certain Items; Reaffirms 2009 GAAP EPS Range of $2.95 to $3.17

WHITEHOUSE STATION, N.J., Feb. 3, 2009 - Merck & Co., Inc. today announced financial results for the fourth-quarter and full-year of 2008.
The Company reported fourth-quarter 2008 non-GAAP (generally accepted accounting principles) earnings per share (EPS) of $0.87, which excludes restructuring charges of $0.09. Fourth-quarter GAAP EPS was $0.78. Merck also announced full-year 2008 non-GAAP EPS of $3.42, excluding certain items, and full-year GAAP EPS of $3.64.

For the fourth quarter of 2008, worldwide sales were $6.0 billion, a decrease of 3 percent over the fourth quarter of 2007. Worldwide sales were $23.9 billion for full-year 2008, a decrease of 1 percent over full year 2007. Foreign exchange provided an unfavorable effect to global sales performance of 1 percent for the quarter and a favorable effect of 3 percent for the year.
Net income for the fourth quarter was $1,644.8 million, compared with a net loss of $1,630.9 million in the fourth quarter of 2007. Merck reported $7,808.4 million in net income for full-year 2008, compared with $3,275.4 million in the full year of 2007. Fourth-quarter 2007 net loss and full-year 2007 net income reflect a $4.85 billion pretax charge related to the U.S. VIOXX Settlement Agreement. Full-year 2008 net income includes a $2.2 billion pretax gain on a distribution from AstraZeneca LP.

Merck's Long-Term Outlook

Merck Outlines Long-Term Prospects and Progress on Strategic Plan at 2008 Annual Business Briefing

>Company Expects to File New Drug Applications With the FDA for Telcagepant, Rolofylline and Ezetimibe/Atorvastatin; Will Seek Approval of New Indications for GARDASIL and ISENTRESS in 2009
>Merck's Pipeline Continues to Progress with Six New Phase III Development Programs Anticipated to Start in 2009 and Seven Phase III Programs Continuing
>Merck Plans Three Phase III Programs for New Indications to Start in 2009 and Two Phase III Programs for New Indications Continuing in 2009
>JANUVIA, JANUMET and ISENTRESS Expected to Deliver Strong Growth as Worldwide Launches Continue
>Implementation of New Business Models Continue in U.S., Europe and Japan; Company Expanding Business in Emerging Markets
>Company Forms Merck BioVentures Division for Follow-on Biologics

Merck's Late-Stage Pipeline Advances
Peter S. Kim, Ph.D., executive vice president and president, Merck Research Laboratories, told analysts that in 2009, the Company anticipates submitting three New Drug Application (NDA) filings with the U.S. Food and Drug Administration (FDA): MK-0974, telcagepant, an investigational compound for the treatment of migraines; MK-7418, rolofylline, an investigational compound for the treatment of acute heart failure; and MK-0653C, ezetimibe combined with atorvastatin, an investigational medication for the treatment of dyslipidemia being developed by the Merck-Schering Plough joint venture.

The Company also anticipates regulatory action in 2009 on three supplemental filings that have been or will be submitted to the FDA and other regulatory agencies: two for GARDASIL, Merck's HPV vaccine, for an expanded indication for adult women through age 45 and for use in males; and one for ISENTRESS, a first-in-class integrase inhibitor for the treatment of HIV-1 infection, for an expanded indication for use in treatment-naïve patients. In the U.S. alone, if approved, the treatment-naïve indication would triple the number of patients for whom ISENTRESS would be indicated.

At the briefing, Dr. Kim profiled the Company's extensive and diverse research and development efforts that include 47 active clinical programs across the Company's major research franchises: bone, respiratory, immunology and endocrine; cardiovascular; diabetes and obesity; infectious diseases; neuroscience; oncology and vaccines.
Dr. Kim told analysts that as of Dec. 9, 2008, Merck's pipeline includes nine candidates in Phase III, 15 in Phase II and 23 in Phase I. And he detailed seven of the drug candidates currently in Phase III clinical development:
MK-7418, rolofylline, a potential first-in-class selective adenosine A1 antagonist, is a Phase III investigational drug being evaluated for the treatment of acute heart failure. An NDA filing with the FDA continues to be anticipated in 2009.
MK-0974, telcagepant, an investigational oral calcitonin gene-related peptide receptor antagonist, represents a new mechanism for the treatment of migraine and has demonstrated efficacy comparable to zolmitriptan, an effective triptan, in the Phase III clinical program. The Company continues to anticipate filing an NDA with the FDA in 2009.
MK-8669, deforolimus, is a novel mTor (mammalian target of rapamycin) inhibitor being evaluated for the treatment of cancer. The drug candidate is being jointly developed and commercialized with ARIAD Pharmaceuticals, Inc., under an agreement reached in 2007. A Phase III study (SUCCEED) in patients with metastatic soft-tissue or bone sarcomas is under way. The Company continues to anticipate filing an NDA with the FDA in 2010.
V503, a nine-valent HPV vaccine in development to provide broader coverage against HPV. The Phase III clinical program is underway and Merck anticipates a filing with the FDA in 2012.
MK-0822, odanacatib, is a highly selective inhibitor of the cathepsin K enzyme, which is being evaluated for the treatment of osteoporosis. The Phase III program is ongoing. Merck said that it continues to anticipate filing an NDA with the FDA in 2012.
MK-0524A is a drug candidate that combines extended-release niacin and a novel flushing inhibitor, laropiprant. MK-0524A has demonstrated the ability to lower LDL-cholesterol (LDL-C), raise HDL-cholesterol (HDL-C) and lower triglycerides with significantly less flushing than traditional extended release niacin alone. The cardiovascular outcomes trial, HPS2-THRIVE, is ongoing and expected to complete in 2012. Merck anticipates filing an NDA with the FDA for MK-0524A in 2012.
MK-0859, anacetrapib, is an inhibitor of the cholesteryl ester transfer protein (CETP) that has shown promise in lipid management by raising HDL-C and reducing LDL-C without raising blood pressure. A Phase III study was initiated in April 2008 and enrollment in a cardiovascular outcomes study is expected to begin in 2010. The Company anticipates filing an NDA with the FDA beyond 2014.

Additionally, Dr. Kim detailed the six potential 2009 Phase III candidates, notably:
V710, a novel Staphylococcus aureus (S. aureus) vaccine that targets a highly conserved antigen originally discovered by Intercell AG. A Phase II/III sequential design study in cardiothoracic surgery patients at acute risk of infection is underway and additional studies are under consideration. S. aureus infections are a major public health challenge and represent a serious unmet medical need. Merck anticipates a filing with the FDA in 2011.
MK-0633, a once-daily 5-Lipoxygenase (5-LO) inhibitor that has the potential to decrease the production of all leukotrienes, key mediators of inflammation. MK-0633 is currently being evaluated in a Phase IIb study for the treatment of asthma and a Phase IIa study for the treatment of chronic obstructive pulmonary disease (COPD). The Company anticipates filing MK-0633 for asthma in 2011.

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.

Merck 3rd Qtr 2008 Earnings Misses

Merck Reports Third-Quarter 2008 Financial Results
• Company Announces Third-Quarter 2008 Non-GAAP EPS of $0.80, Excluding 29 Cents
of Restructuring Charges; Third-Quarter GAAP EPS of $0.51
• 2008 Global Restructuring Efforts Expected to Reduce Workforce by 12 Percent;
Cumulative Savings of $3.8 to $4.2 Billion Expected from 2008 to 2013 and Pretax Costs
of $1.6 Billion to $2.0 Billion Through 2011
• JANUVIA and JANUMET, Treatments for Type 2 Diabetes, and ISENTRESS, Merck's
HIV Medicine, Deliver Strong Growth as Worldwide Launches Continue
• Merck Anticipates Full-Year 2008 EPS Range of $3.28 to $3.32, Excluding Certain
Items, and GAAP 2008 EPS Range of $3.45 to $3.55
• Merck Anticipates 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 Over Same Period

WHITEHOUSE STATION, N.J., Oct. 22, 2008 – Merck & Co., Inc. today announced financial
results for the third quarter of 2008, provided financial guidance for 2008 and 2010, and outlined additional steps in its continuing efforts to position the Company for success in a rapidly
evolving industry.
Merck reported non-GAAP (generally accepted accounting principles) earnings per
share (EPS) of $0.80 for the third quarter of 2008, excluding $0.29 of restructuring charges.
GAAP EPS for the third quarter were $0.51. Third quarter worldwide sales were $5.9 billion, a
decrease of 2 percent from the third quarter of 2007. Foreign exchange for the third quarter
favorably affected global sales performance by 4 percent. Net income for the third quarter of
2008 was $1,092.7 million compared with $1,525.5 million in the third quarter of 2007, which
include aftertax restructuring charges of $612 million and $117 million, respectively. For the first
nine months of 2008, worldwide sales were $17.8 billion and net income was $6,163.6 million.

Merck's Valueline Outlook

Merck’s March-period results were mixed. Sales were below our expectations, but share net beat our estimate. That said, earnings per share were aided by a low tax rate caused by foreign tax credits and by share buybacks.

The FDA has rejected cholesterol drug Cordaptive. By issuing a ‘‘nonapprovable’’ letter, the agency has damped hopes that the drug, which had been one of the most promising in Merck’s development pipeline, would help offset the 2012-2013 patent expiration of Singulair. Merck and the FDA would not comment on why Cordaptive was turned down, and Merck plans to submit additional data that it believes will increase the odds of
approval. Still, the setback has raised doubts about the quality of the pipeline as well as the scientists’ ability to develop new drugs. Too, the news follows the release of data earlier this year that showed that another cholesterol drug, Vytorin, failed to slow heart disease better than a less expensive drug.

Courts have overturned two Vioxx verdicts. An appeals court in Texas found
that the plaintiffs had not proven that the drug had been the cause of death, and a New Jersey court reduced a verdict, saying that Merck had not committed consumer fraud. Although the rulings may discourage lawyers from pursuing similar lawsuits, Merck has already offered to pay
almost $5 billion in an attempt to end the litigation. The settlement covers about 50,000 people that allege heart attacks or strokes after taking Vioxx, and will result in average payments of $100,000 for dropping their lawsuit. Although it now appears that Merck’s initial strategy of fighting every case may have been warranted, we believe management did the right thing in getting the matter behind it.

The company is downsizing its U.S. salesforce. Plans to cut about 1,200 sales positions, or about 15% of the total, reflect competition from generic drugs, declining
reinsurance reimbursements, and the above-noted new-drug setbacks. Too, it is part of the plan to cut costs. We are neutral on these shares. Although management recently reiterated its
earnings guidance, the recent product approval setbacks are dissapointing.
Douglas G. Maurer, CFA July 18, 2008


2011-13 PROJECTIONS
-------------------------------------------------------------Ann’l Total
--------------------------Price----------- Gain--------------- Return
High----------------------85--------------(+130%)------------25%
Low----------------------55--------------(+50%) -------------14%

Merck's Gardasil Response

Merck Responds to Questions about Adverse Events Reported following Vaccination with GARDASIL®

WHITEHOUSE STATION, N.J., July 8, 2008 - Merck today issued the following statement to address questions about adverse events reported in people who had received GARDASIL [Human Papillomavirus Quadrivalent (Types 6, 11, 16, 18) Vaccine, Recombinant].

Merck has analyzed the adverse events reported for GARDASIL relating to the recent reports of death and paralysis, and based on the data available to Merck, believes that no safety issue related to the vaccine has been identified. These types of events are events that could also be seen in the general population, even in the absence of vaccination. An adverse experience report describes an event that occurred after vaccination and does not necessarily mean that the vaccine caused or contributed to the event. The vast majority of adverse events that have been reported to Merck are non-serious and the most common include dizziness and syncope (fainting).

"Merck is proud of the public health benefit that GARDASIL can provide in helping to prevent cervical cancer and other HPV diseases caused by HPV types 6, 11, 16 and 18 throughout the world and we remain confident in the safety profile of GARDASIL," said Richard M. Haupt, executive director, Clinical Research, Merck Research Laboratories. "Merck encourages health care providers and consumers to report any adverse experience associated with GARDASIL to the Company and to the U.S. Vaccine Adverse Event Reporting System so that the Company can continue to thoroughly monitor the safety of this important vaccine."
Merck continues to evaluate all safety data in the context of its own post-marketing adverse experience database as well as its ongoing clinical trial database and provides post-marketing reports to regulatory authorities worldwide. For vaccines, Merck also participates in the U.S. Food and Drug Administration and Centers for Disease Control and Prevention adverse event reporting system that collects data on any adverse event following vaccination, whether coincidental or potentially caused by a vaccine.
The labeling for GARDASIL reflects the extensive data available from our clinical trials of more than 25,000 people and Merck updates its product labels with new safety information as appropriate. As of March 31, Merck has distributed more than 26 million doses of GARDASIL worldwide, nearly 16 million of them in the U.S., since approval in June 2006.

In 2006, GARDASIL became the only approved vaccine to prevent cervical cancer, precancerous or dysplastic lesions, and genital warts caused by HPV types 6, 11, 16 and 18 in girls and women 9 through 26 years of age. GARDASIL (sold in some countries as SILGARD®) has been approved in 103 countries, and additional applications are currently under review with regulatory agencies in many more countries around the world.

Merck's VIOXX Ruling Overturned

WHITEHOUSE STATION, N.J., May 29, 2008 - "We are gratified that the Texas appeals court correctly found that VIOXX did not cause Mr. Ernst's death and reversed the previous decision for the plaintiff in the first VIOXX case to go to trial. In addition, the New Jersey court correctly reversed the awards of punitive damage and consumer fraud. Today's decisions overturn almost $40 million of damages and attorneys fees previously awarded to plaintiffs at trial. We intend to seek further review of the portion of the award that remains standing after the New Jersey decision. We continue to believe Merck acted responsibly."

TRENTON, N.J. (AP) - A Texas appeals court on Wednesday overturned a multimillion-dollar verdict against Merck & Co. in one of the few trials it lost over its withdrawn painkiller Vioxx. A jury in Rio Grande City, Texas, in April 2006 awarded $32 million to thewidow of 71-year-old Leonel Garza, a short-term Vioxx user who died of a heartattack in 2001. That award -- $7 million for compensatory damages and $25 million for punitive damages -- later was cut to about $7.75 million under Texaslaw limiting damages.

On Wednesday, a three-judge panel of the Texas 4th Court of Appeals overturned the verdict, ruling in favor of Merck. The opinion was signed by Justice Sandee Bryan Marion. The judges wrote that Garza's family did not prove his brief use of Vioxx caused two blood clots that the family's attorneys argued triggered his heart attack. The judges also concluded the family did not provide sufficient evidence to rule out his long-standing heart disease as the cause of his fatal heart attack. Garza had a prior heart attack and heart bypass surgery, smoked for nearly 30 years and died of the second heart attack after taking Vioxx for less than a month. Merck lawyers had argued that heart attack was the end result of his 23 years of heart disease.
"There was simply no reliable evidence Vioxx caused Mr. Garza's heart attack," Travis Sales, one of the attorneys who represented Merck during the trial, said in an interview. David Hockema, one of the Garza family attorneys, said they had just read the opinion and had not decided on their next move. Possible next steps would be a motion for a rehearing before the same court of appeals or a petition to the Texas Supreme Court, he said. "I think the decision is clearly wrong and sets an impossible burden for the plaintiff to show the offending instrument (Vioxx) was the sole cause of their injury," Hockema said.

After the trial, a juror admitted previously borrowing more than $12,000 from Garza's widow, Felicia, an issue that Merck also raised in its appeal, Sales noted. However, that was not mentioned in the three-page appellate court decision.

Whitehouse Station, N.J.-based Merck pulled Vioxx from the market in September 2004 after research showed the painkiller doubled risk of heart attacks and strokes. That triggered an avalanche of lawsuits against Merck, which has a $4.85 billion settlement pending to end the bulk of the personal injury suits. The Garzas and others whose cases went to trial before the settlement agreement in November are not eligible to participate. Wednesday's ruling gives Merck 10 victories and four losses in the trials that reached verdicts, with retrials pending in a few cases.

Merck shares rose 66 cents, or 1.7 percent, to $39.83 in regular trading
Wednesday, and rose another 23 cents in after-hours trading. Shares have traded
between $36.80 and $61.62 over the past 52 weeks.

Merck's Side Effects - Cordaptive

FOXBusiness

Pharmaceutical giant Merck saw its share price take a big hit on Tuesday after the Food and Drug Administration denied a key cholesterol drug.
The FDA denied Cordaptive, a cholesterol medicine that Merck had high expectations for, on Monday evening through a “not-approvable” letter. Neither the FDA nor Merck released an explanation for the denial, but the company did say it plans to submit additional information to the agency for further evaluation.
Merck attempted to quell shareholder anxiety by reiterating its 2008 earnings outlook and saying it still sees double-digit earnings growth through 2010.
"Merck's broad portfolio of medicines and vaccines, including eight productsin launch phase, enables us to weather challenges that come our way," Richard T. Clark, chairman, president and chief executive officer of Merck, said in a statement.
Still, the market was spooked by the Cordaptive news as shares of Merck plunged 10% on Tuesday. The stock has lost nearly 30% of its value year-to-date and was hit earlier this year with a setback for its Vytorin cholesterol drug. Merck is the worst-performing stock on the Dow in 2008.
Citing financial-services firm Raymond James, The Wall Street Journal reported Merck was relying on Cordaptive for $2 billion a year in revenue and hoped to package the drug with Zocor, another cholesterol drug.
An analyst at Lehman Brothers (LEH: 46.90, -0.62, -1.30%) lowered his price target to $53 from $58 on Merck on the FDA news. Still, that price target would represents a 28% increase from Merck’s closing price on Monday of $41.44. The analyst, Charles Butler, said the FDA rejection could stem from a low number of patients in clinical trials, meaning more research is needed on potential side effects of Cordaptive.

The Cordaptive developments have implications for other drug makers. Cowen & Co. said Schering-Plough (SGP: 18.82, +0.07, +0.37%) would likely benefit as its Vytorin could now face less competition but Eli Lilly (LLY: 48.22, -1.14, -2.30%) "could suffer" because its Effient drug could be viewed as having the same fate as Cordaptive.
According to Thomson Reuters, Credit Suisse (CS: 53.01, -2.90, -5.18%) raised its 2008 and 2009 forecast for Abbott Labs (ABT: 53.61, +2.00, +3.87%), predicting a larger market share for the drug maker's Niaspan and Simcor drugs

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.