Amgen's Third Quarter 2005 Adjusted Earnings Per Share Increased 33 Percent to 85 Cents; Third Quarter 2005 GAAP Earnings Per Share Increased to 77 Cents from 18 Cents

Amgen (NASDAQ:AMGN) reported adjusted earnings per share (EPS) of85 cents for the third quarter of 2005, an increase of 33 percentcompared to 64 cents during the third quarter of 2004. Adjusted netincome rose 27 percent to $1.1 billion compared to $839 million in thethird quarter of 2004.

During the third quarter, total product sales increased 19 percentto $3.0 billion from $2.6 billion in the third quarter of 2004. Salesin the United States (U.S.) totaled $2.5 billion, an increase of 17percent versus the same quarter in 2004. International sales totaled$543 million versus $419 million during the comparable period in 2004,an increase of 30 percent. International sales benefited from foreignexchange by approximately $9 million. Total revenue increased 16percent during the third quarter of 2005 to $3.2 billion. The Companyreiterated its 2005 guidance of a range of mid-to-high teens revenuegrowth and a range of $3.10 to $3.20 for adjusted EPS.

Adjusted EPS and adjusted net income for the three months endedSeptember 30, 2005 and 2004 primarily exclude certain expenses relatedto the acquisitions of Immunex Corporation and Tularik Inc. Theseexpenses and other items are itemized on the reconciliation tablesbelow.

On a reported basis and calculated in accordance with U.S.generally accepted accounting principles (GAAP), Amgen's EPS increasedto 77 cents in the third quarter of 2005 from 18 cents in the samequarter last year. Net income was $967 million in the third quarter of2005 versus $236 million for the third quarter of 2004. Third quarter2004 GAAP results were impacted by the acquisition of Tularik, whichincluded a $554 million charge related to acquired in-process R&D.

"Our strong performance during the third quarter is consistentwith the guidance that we provided for the full year," said KevinSharer, Amgen's chairman and chief executive officer. "Our keymarketed products continue to record strong sales gains, and we expectto make additional announcements in the near-term on data relating tokey products within our pipeline," concluded Sharer.

Product Sales Performance

Worldwide sales of Aranesp(R) (darbepoetin alfa), increased 38percent to $840 million in the third quarter of 2005 versus $608million during the third quarter of 2004. This growth was drivenprincipally by increased demand for Aranesp. U.S. Aranesp sales were$542 million versus $374 million in the prior year, with share gainsin all major settings driving growth. International Aranesp sales were$298 million versus $234 million in the same quarter last year.

Sales of EPOGEN(R) (Epoetin alfa) during the third quarter were$599 million versus $681 million in the comparable period of 2004.EPOGEN sales decreased by 12 percent in the third quarter of 2005principally reflecting decreases in wholesaler inventory levels andlower demand. Although demand for EPOGEN in the freestanding dialysisclinics remains consistent with patient growth, demand in the hospitaldialysis clinics has been impacted by increased usage of Aranesp.

Combined worldwide sales of Neulasta(R) (pegfilgrastim) andNEUPOGEN(R) (Filgrastim), were $882 million in the third quarter of2005 versus $752 million for the third quarter of 2004, an increase of17 percent. Combined sales growth for Neulasta and NEUPOGEN, whichbenefited from recently updated guidelines recommending earlier use ofsuch products, was primarily driven by increased demand for Neulasta.Also during the quarter, the U.S. Food and Drug Administration (FDA)approved an update for the Neulasta prescribing information foradministration of Neulasta beginning in the first cycle ofchemotherapy for patients receiving myelosuppressive chemotherapyassociated with at least a 17 percent risk of febrile neutropenia.

Combined sales of Neulasta and NEUPOGEN in the United States were$680 million in the third quarter of 2005 versus $591 million in thethird quarter of 2004, an increase of 15 percent. Combinedinternational sales increased 25 percent to $202 million in the thirdquarter of 2005 versus $161 million over the same quarter in the prioryear.

Sales of Enbrel(R) (etanercept) increased 35 percent during thethird quarter to $668 million versus $496 million during the sameperiod in 2004, driven by strong demand. ENBREL continues to maintaina leading market share position in the Dermatology and Rheumatologybiologic marketplaces. Amgen recently resumed its direct-to-consumeradvertising related to ENBREL.

Operating Expense Analysis on an Adjusted Basis:

-- Cost of sales increased to $505 million in the third quarter of 2005 from $447 million during the third quarter of 2004, primarily due to higher sales volumes.

-- Research and development (R&D) expenses totaled $559 million during the third quarter versus $495 million in the third quarter of 2004. Third quarter increases were primarily driven by staff-related expenses and key clinical trials including the ramp up of large-scale Phase 3 trials for denosumab, Amgen's investigational therapy for bone loss.

-- Selling, general and administrative (SG&A) expenses were $656 million in the third quarter versus $635 million for the same quarter of the prior year. Increases for the third quarter are a result of higher Wyeth profit share related to ENBREL sales growth.

For the remainder of the year, the adjusted tax rate is expectedto be slightly lower than the Company's first quarter 2005 adjustedrate of 26.4 percent.

Stock repurchases for the third quarter 2005 totaled $769 millionrepresenting 9.5 million shares. In December 2004, the Company's boardof directors authorized a stock repurchase program of $5 billion. Atthe end of the third quarter, the Company had $2.8 billion remainingunder this stock authorization.

Capital expenditures for the third quarter of 2005 were $199million, primarily due to construction at the Company's Puerto Ricomanufacturing facility, versus $298 million in 2004. The Company'scash and marketable securities were $5.6 billion at the end of thequarter.

Third Quarter Product and Pipeline Highlights

Aranesp: Amgen expects to file new data with the FDA on extendeddosing regimens for Aranesp in chronic kidney disease by the end of2005. Amgen also announced top line data from its Phase 2 trials inChronic Heart Failure (CHF) patients with anemia. The datademonstrated that Aranesp was well-tolerated in anemic heart failurepatients. No significant safety events were observed. Overall, thePhase 2 program showed that treating anemia in heart failure patientsresulted in positive trends in mortality, first cardiac-relatedhospitalization, exercise tolerance, and quality of life. Amgencommunicated plans to initiate Phase 3 trials in this patientpopulation. The Phase 3 program will be approximately three years longand include 3400 CHF patients.

Enbrel: Amgen announced FDA approval of a new manufacturing plantin Rhode Island for the production of Enbrel.

Neulasta: During the quarter, the FDA approved an update to theNeulasta prescribing information to include data from a Phase 3 studydemonstrating the white blood cell booster helps protect patients withmost types of cancer undergoing moderately myelosuppressivechemotherapy from infection, as manifested by febrile neutropenia.

Kepivance(TM) (palifermin): In the European Union, Kepivancereceived a positive opinion for marketing authorization by theEuropean Committee for Medicinal Products for Human Use (CHMP). Theauthorization, awaiting final approval, is for Kepivance to decreasethe incidence, duration and severity of oral mucositis in patientswith hematologic cancers undergoing myeloablative therapy associatedwith a high incidence of severe oral mucositis, and requiringautologous bone marrow transplant.

Panitumumab: Interim results from two ongoing trials support theability of panitumumab to provoke tumor shrinkage when administered asa single agent every other week in patients with colorectal cancer whohad failed prior intensive chemotherapy. These data will form part ofa Biologics Licensing Application which Amgen, together with itspartner Abgenix, intends to file beginning in the fourth quarter of2005. The FDA has granted fast track status to panitumumab for thisindication.

Denosumab (formerly known as AMG 162): During the third quarter,two-year data from an ongoing Phase 2 study in women withpost-menopausal osteoporosis were unblinded. These data, which supportboth the favorable safety profile of denosumab administered once everysix months, as well as the ability of denosumab to improve bonemineral density in this population, will be presented at the AmericanCollege of Rheumatology meeting in November. Also this month, Phase 2data supporting the ability of denosumab to suppress pathologic boneturnover in patients with metastatic breast cancer were obtained.These data provide impetus for planned Phase 3 studies designed tosupport the use of monthly denosumab in preventing adverse skeletalevents in patients with cancer and bony involvement. Phase 2 data inrheumatoid arthritis will be available by year-end 2005.

AMG 531: Amgen announced that Phase 2 studies inchemotherapy-induced thrombocytopenia are expected to be initiated bythe end of the year. The data from ongoing Phase 3 trials in ImmuneThrombocytopenic Purpura (ITP) will be available in the second half of2006.

AMG 706: Amgen expects final data to be available in the firsthalf of 2006 from its Phase 2 study of AMG 706 in patients withgastrointestinal stromal tumors who have failed imatinib therapy.

AMG 108: During the quarter, Amgen announced that AMG 108 did notmeet the primary endpoint in a Phase 2 study in osteoarthritis.Development of AMG 108 is planned to continue in other inflammatorydiseases such as rheumatoid arthritis.

For more product information or the full prescribing information,please refer to the Amgen Web site at www.amgen.com.

Forward-Looking Statements

This news release contains forward-looking statements that involvesignificant risks and uncertainties, including those discussed belowand others that can be found in our Form 10-K for the year endedDecember 31, 2004, and in our periodic reports on Form 10-Q and Form8-K. Amgen is providing this information as of the date of this newsrelease and does not undertake any obligation to update anyforward-looking statements contained in this document as a result ofnew information, future events or otherwise.

No forward-looking statement can be guaranteed and actual resultsmay differ materially from those we project. The Company's results maybe affected by our ability to successfully market both new andexisting products domestically and internationally, sales growth ofrecently launched products, difficulties or delays in manufacturingour products, and regulatory developments (domestic or foreign)involving current and future products and manufacturing facilities. Inaddition, sales of our products are affected by reimbursement policiesimposed by first party payors, including governments, privateinsurance plans and managed care providers, and may be affected bydomestic and international trends toward managed care and healthcarecost containment as well as possible U.S. legislation affectingpharmaceutical pricing and reimbursement. Government regulations andreimbursement policies may affect the development, usage and pricingof our products. Furthermore, our research, testing, pricing,marketing and other operations are subject to extensive regulation bydomestic and foreign government regulatory authorities. We, or otherscould identify side effects or manufacturing problems with ourproducts after they are on the market. In addition, we compete withother companies with respect to some of our marketed products as wellas for the discovery and development of new products. Discovery oridentification of new product candidates cannot be guaranteed andmovement from concept to product is uncertain; consequently, there canbe no guarantee that any particular product candidate will besuccessful and become a commercial product. In addition, while weroutinely obtain patents for our products and technology, theprotection offered by our patents and patent applications may bechallenged, invalidated or circumvented by our competitors. Further,some raw materials, medical devices, and component parts for ourproducts are supplied by sole first party suppliers.

About Amgen

Amgen discovers, develops and delivers innovative humantherapeutics. A biotechnology pioneer since 1980, Amgen was one of thefirst companies to realize the new science's promise by bringing safeand effective medicines from lab, to manufacturing plant, to patient.Amgen therapeutics have changed the practice of medicine, helpingmillions of people around the world in the fight against cancer,kidney disease, rheumatoid arthritis, and other serious illnesses.With a broad and deep pipeline of potential new medicines, Amgenremains committed to advancing science to dramatically improvepeople's lives. To learn more about our pioneering science and ourvital medicines, visit www.amgen.com.

EDITOR'S NOTE: An electronic version of this news release may beaccessed via our Web site at www.amgen.com. Journalists and mediarepresentatives may sign up to receive all news releaseselectronically at time of announcement by filling out a short form inthe Media section of the Web site.

Amgen Inc.
Condensed Consolidated Statements of Operations and
Reconciliation of GAAP Earnings to "Adjusted" Earnings
(In millions, except per share data)
(Unaudited)


Three Months Ended Three Months Ended
September 30, 2005 September 30, 2004
---------------------------- ---------------------------
GAAP Adjustments "Adjusted" GAAP Adjustments "Adjusted"
---------------------------- ---------------------------
Revenues:
Product sales $3,047 $- $3,047 $2,560 $- $2,560
Other revenues 107 - 107 153 - 153
------ ------ ------ ------ ------ ------
Total revenues 3,154 - 3,154 2,713 - 2,713

Operating expenses:
Cost of sales
(excludes amortization
of acquired
intangible assets
presented below) 552 (47) (1) 505 447 - 447
Research and
development 562 (3) (2) 559 502 (7) (2) 495
Selling,
general and
administrative 656 - 656 632 (8) (2) 635
11 (4)
Write-off of
acquired in-
process R&D - - - 554 (554) (5) -
Amortization of
intangible assets 86 (86) (3) - 84 (84) (3) -
------ ------ ------ ------ ------ ------
Total operating
expenses 1,856 (136) 1,720 2,219 (642) 1,577

Operating income 1,298 136 1,434 494 642 1,136

Interest and
other (expense)/
income, net 14 - 14 15 - 15
------ ------ ------ ------ ------ ------
Income before
income taxes 1,312 136 1,448 509 642 1,151

Provision for
income taxes 345 36 (10) 381 273 39 (10) 312
------ ------ ------ ------ ------ ------

Net income $967 $100 $1,067 $236 $603 $839
====== ====== ====== ====== ====== ======

Earnings per share:
Basic $0.78 $0.87 $0.19 $0.66
Diluted (11) $0.77 $0.85 $0.18 $0.64

Shares used in calculation
of earnings per share:
Basic 1,233 1,233 1,272 1,272
Diluted (11) 1,249 1,249 1,320 1,320


(1) - (11) See explanatory notes


Amgen Inc.
Condensed Consolidated Statements of Operations and
Reconciliation of GAAP Earnings to "Adjusted" Earnings
(In millions, except per share data)
(Unaudited)


Nine Months Ended Nine Months Ended
September 30, 2005 September 30, 2004
---------------------------- ---------------------------
GAAP Adjustments "Adjusted" GAAP Adjustments "Adjusted"
---------------------------- ---------------------------
Revenues:
Product sales $8,854 $- $8,854 $7,199 $- $7,199
Other revenues 305 - 305 442 - 442
------ ------ ------ ------ ------ ------
Total revenues 9,159 - 9,159 7,641 - 7,641

Operating expenses:
Cost of sales
(excludes amortization
of acquired intangible
assets presented
below) 1,571 (47) (1) 1,524 1,255 (2) (9) 1,253
Research and
development 1,653 (9) (2) 1,644 1,411 (7) (2) 1,388
(16) (9)
Selling,
general and
administrative 1,879 - 1,879 1,740 (8) (2) 1,735
(8) (9)
11 (4)
Write-off of
acquired in-
process R&D - - - 554 (554) (5) -
Amortization of
intangible assets 260 (260) (3) - 252 (252) (3) -
Legal settlements 49 (49) (6) - - - -
------ ------ ------ ------ ------ ------

Total operating
expenses 5,412 (365) 5,047 5,212 (836) 4,376

Operating income 3,747 365 4,112 2,429 836 3,265

Interest and other
(expense)/
income, net 10 (20) (7) 10 46 - 46
20 (8)
------ ------ ------ ------ ------ ------

Income before
income taxes 3,757 365 4,122 2,475 836 3,311

Provision for
income taxes 907 120 (10) 1,027 801 111 (10) 912
------ ------ ------ ------ ------ ------

Net income $2,850 $245 $3,095 $1,674 $725 $2,399
====== ====== ====== ====== ====== ======

Earnings per share:
Basic $2.30 $2.50 $1.32 $1.88
Diluted (11) $2.26 $2.46 $1.28 $1.83

Shares used in calculation
of earnings
per share:
Basic 1,238 1,238 1,273 1,273
Diluted (11) 1,263 1,263 1,323 1,323


(1) - (11) See explanatory notes


Amgen Inc.
Notes to Reconciliation of GAAP Earnings to "Adjusted" Earnings
(In millions, except per share data)
(Unaudited)

(1) To exclude the impact of writing off the cost of a semi-
completed manufacturing asset that will not be used due to a
change in manufacturing strategy.

(2) To exclude the incremental compensation provided to certain
Tularik Inc. ("Tularik") employees principally related to non-cash
compensation expense associated with stock options assumed in
connection with the acquisition and amounts payable under the
Tularik short-term retention plan. The total estimated remaining
costs of such incremental compensation is approximately $18
million, pre-tax.

(3) To exclude the ongoing, non-cash amortization of acquired
intangible assets, primarily Enbrel(R), related to the Immunex
Corporation ("Immunex") acquisition. The total 2005 annual
non-cash charge is currently estimated to be approximately $347
million, pre-tax.

(4) To exclude the impact to the Company of its share of the
third-party reimbursement received by Kirin-Amgen, Inc. related to
the Genentech, Inc. ("Genentech") legal settlement in August 2003.

(5) To exclude the non-cash expense associated with writing off the
acquired in-process research and development related to the
Tularik acquisition.

(6) To exclude the impact of legal settlements incurred, net of
amounts previously accrued, primarily related to settling a patent
legal proceeding.

(7) To exclude the net gain realized on the termination of a
manufacturing agreement with Genentech for the production of
ENBREL at Genentech's manufacturing facility in South San
Francisco.

(8) To exclude the pro rata portion of the debt issuance costs
that were immediately charged to interest expense, as a result of
certain holders of the convertible notes exercising their March 1,
2005 put option and the related convertible notes being repaid in
cash.

(9) To exclude the incremental compensation payable to certain
Immunex employees principally under the Immunex short-term
retention plan. All amounts have been incurred under this plan.

(10) To reflect the tax effect of the above adjustments, except
for the write-off of the cost of a semi- completed manufacturing
asset (see (1) above) and the write- off of acquired in-process
R&D (see (5) above).

(11) The following table presents the computations for GAAP and
"Adjusted" diluted earnings per share computed under the treasury
stock and the "if-converted" methods:

Three Months Ended Three Months Ended
Sept. 30, 2005 Sept. 30, 2004
------------------ ------------------
GAAP "Adjusted" GAAP "Adjusted"
------------------ ------------------
Income (Numerator):
Net income for basic EPS $967 $1,067 $236 $839
Adjustment for interest
expense on convertible
notes, net of tax -(A) -(A) 5 5
------ ------ ------ ------
Net income for diluted EPS,
after assumed conversion
of convertible notes $967 $1,067 $241 $844
====== ====== ====== ======

Shares (Denominator):
Weighted-average shares for
basic EPS 1,233 1,233 1,272 1,272
Effect of dilutive securities 15 15 13 13
Effect of convertible notes,
after assumed conversion 1(A) 1(A) 35 35
------ ------ ------ ------

Weighted-average shares for
diluted EPS 1,249 1,249 1,320 1,320
====== ====== ====== ======

Diluted earnings per share $0.77 $0.85 $0.18 $0.64
====== ====== ====== ======


Nine Months Ended Nine Months Ended
Sept. 30, 2005 Sept. 30, 2004
------------------ ------------------
GAAP "Adjusted" GAAP "Adjusted"
------------------ ------------------
Income (Numerator):
Net income for basic EPS $2,850 $3,095 $1,674 $2,399
Adjustment for interest
expense on convertible
notes, net of tax 6(A) 6(A) 16 16
------ ------ ------ ------
Net income for diluted EPS,
after assumed conversion
of convertible notes $2,856 $3,101 $1,690 $2,415
====== ====== ====== ======

Shares (Denominator):
Weighted-average shares for
basic EPS 1,238 1,238 1,273 1,273
Effect of dilutive securities 12 12 15 15
Effect of convertible notes,
after assumed conversion 13(A) 13(A) 35 35
------ ------ ------ ------

Weighted-average shares for
diluted EPS 1,263 1,263 1,323 1,323
====== ====== ====== ======

Diluted earnings per share $2.26 $2.46 $1.28 $1.83
====== ====== ====== ======

(A) On May 6, 2005 and August 17, 2005, in connection with an
exchange offer, we modified the terms of approximately 99% of our
convertible notes then outstanding (the "Modified Convertible
Notes"). As a result of certain of these modifications, if
converted, the Modified Convertible Notes would be settled in 1)
cash equal to the lesser of the accreted value of the Modified
Convertible Notes at the conversion date or the conversion value,
as defined, and 2) shares of common stock, if any, to the extent
the conversion value exceeds the accreted value. Accordingly, the
Modified Convertible Notes do not impact diluted earnings per
share under the "if-converted" method but rather, they impact
diluted earnings per share under the treasury stock method, and
only to the extent that the conversion value exceeds the accreted
value during any reporting period, requiring such difference, if
any, to be potentially settled in shares of common stock.


Amgen Inc.
Product Sales Detail by Product and Geographic Region
(In millions)
(Unaudited)

Three Months Nine Months
Ended Ended
September 30, September 30,
--------------- ---------------
2005 2004 2005 2004
--------------- ---------------

Aranesp(R) - U.S. $542 $374 $1,525 $1,084

Aranesp(R) - International 298 234 875 684

EPOGEN(R) - U.S. 599 681 1,829 1,904

Neulasta(R) - U.S. 475 384 1,381 1,082

NEUPOGEN(R) - U.S. 205 207 595 574

Neulasta(R) - International 102 66 284 189

NEUPOGEN(R) - International 100 95 316 292

Enbrel(R) - U.S. 641 477 1,825 1,282

Enbrel(R) - International 27 19 74 51

Other product sales - U.S. 42 18 112 40

Other product sales - International 16 5 38 17
--------------- ---------------

Total product sales $3,047 $2,560 $8,854 $7,199
=============== ===============


U.S. $2,504 $2,141 $7,267 $5,966

International 543 419 1,587 1,233
--------------- ---------------

$3,047 $2,560 $8,854 $7,199
=============== ===============

Amgen Inc.
Condensed Consolidated Balance Sheets - GAAP
(In millions)
(Unaudited)

Sept. 30, Dec. 31,
2005 2004
--------- --------
Assets
Current assets:
Cash and marketable securities $5,551 $5,808
Trade receivables, net 1,664 1,461
Inventories 1,059 888
Other current assets 919 1,013
--------- --------
Total current assets 9,193 9,170
Property, plant, and equipment, net 4,894 4,712
Intangible assets, net 3,779 4,033
Goodwill 10,496 10,525
Other assets 770 781
--------- --------
Total assets $29,132 $29,221
========= ========

Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued liabilities $3,352 $2,984
Convertible notes 1,754 (2) 1,173 (1)
--------- --------
Total current liabilities 5,106 4,157
Deferred tax liabilities 1,180 1,294
Convertible notes - 1,739 (2)
Other long-term debt 2,198 2,198
Other non-current liabilities 118 128
Stockholders' equity 20,530 19,705
--------- --------
Total liabilities and
stockholders' equity $29,132 $29,221
========= ========

Shares outstanding 1,234 1,260


(1) On March 2, 2005, as a result of certain holders of the
Convertible notes exercising their March 1, 2005 put option, the
Company repurchased $1,175 million, or approximately 40%, of the
outstanding Convertible notes at their then- accreted value for
cash. Accordingly the Convertible notes repurchased were
classified as current liabilities at December 31, 2004.

(2) Holders of the remaining outstanding Convertible notes may
require the Company to purchase all or a portion of the notes on
specific dates as early as March 1, 2006 at the original issuance
price plus accrued original issue discount through the purchase
date. Accordingly, as of September 30, 2005, the Convertible notes
have been classified as current liabilities.


Amgen Inc.
Reconciliation of "Adjusted" Earnings Per Share Guidance to GAAP
Earnings Per Share Guidance for the Year Ended December 31, 2005

2005
--------------

"Adjusted" earnings per share guidance $3.10 - $3.20

Known adjustments to arrive at GAAP earnings:
Amortization of acquired intangible assets (1) (0.16)
Tularik merger related incremental compensation (2) (0.01)
Write-off of convertible notes debt issuance costs (3) (0.01)
Legal settlements (4) (0.02)
Termination of manufacturing agreement (5) 0.01
Write-off of manufacturing asset (6) (0.04)
Tax liability related to repatriation of certain
foreign earnings (7) -
--------------

GAAP earnings per share guidance $2.87 - $2.97
--------------


The guidance for both "Adjusted" earnings per share and GAAP
earnings per share does not include the impact of expense related
to stock option compensation.

(1) To exclude the ongoing, non- cash amortization of acquired
intangible assets, primarily Enbrel(R), related to the Immunex
acquisition. The total 2005 annual non- cash charge is currently
estimated to be approximately $347 million, pre-tax.

(2) To exclude the incremental compensation provided to certain
Tularik employees principally related to non-cash compensation
expense associated with stock options assumed in connection with
the acquisition and amounts payable under the Tularik short-term
retention plan.

(3) To exclude the pro rata portion of debt issuance costs that
were immediately charged to interest expense, as a result of
certain holders of the convertible notes exercising their March 1,
2005 put option and the related convertible notes being repaid in
cash.

(4) To exclude the impact of legal settlements incurred, net of
amounts previously accrued, primarily related to settling a patent
legal proceeding.

(5) To exclude the net gain realized on the termination of a
manufacturing agreement with Genentech for the production of
ENBREL at Genentech's manufacturing facility in South San
Francisco.

(6) To exclude the impact of writing off the cost of a
semi-completed manufacturing asset that will not be used due to a
change in manufacturing strategy.

(7) To exclude the tax liability related to the repatriation of
certain foreign earnings under the American Jobs Act of 2004
("Jobs Act"). Uncertainty remains as to how to interpret numerous
provisions of the Jobs Act. As such, we have not yet determined
the amount of foreign earnings, if any, that will be repatriated
and, therefore, the amount of the tax liability is not known.
Based on our preliminary analysis to date, we are limited under
the Jobs Act to repatriate up to approximately $500 million in
foreign earnings.