Dynamic 2006 Group performance:

• Net sales rise 15% (+14% in local currencies) to USD 37.0 billion
• Operating income advances 18% as productivity initiatives more than offset acquisition
        costs and investments in new pharmaceutical product launches
• Net income up 17% to USD 7.2 billion
• EPS rise 16%  to USD 3.06 per share in the fifth consecutive year of double-digit profit
        expansion

Excluding Chiron acquisition-related charges, Group operating income climbs 28% and net income up 25%
Dividend proposed to shareholders for 2006 of CHF 1.35 per share, a 17% increase from 2005 and representing the tenth consecutive year of a higher payment
Recent acquisitions and plans to divest Medical Nutrition strengthen strategic focus on healthcare portfolio
Novartis preparing for multiple new product launches in 2007-2008, led by Exforge and Tekturna/Rasilez (hypertension), Galvus (diabetes) and Lucentis (blindness)