Henry Schein Reports Fourth Quarter Diluted EPS from Continuing Operations of $0.59

Net sales for the fourth quarter of 2005 were $1.34 billion, anincrease of 16.2% from the fourth quarter of 2004 (See Exhibit A fordetails of sales growth). This increase includes 18.4% local currencygrowth (13.5% internally generated and 4.9% from acquisitions) offsetby a 2.2% decline related to foreign currency exchange. The fourthquarter of 2005 included an additional week compared with the fourthquarter of 2004. The Company estimates that the extra week accountedfor approximately 5% to 6% of net sales growth.

Fourth quarter income from continuing operations was $52.5million, up 78.4% compared with the fourth quarter of 2004, andearnings per diluted share from continuing operations were $0.59, up78.8% compared with the prior-year quarter. Excluding a one-timecharge in the fourth quarter of 2004 of $8.4 million after tax, fourthquarter 2005 income and earnings per diluted share from continuingoperations grew by 38.9% and 37.2% respectively (See Exhibit B fordetails).

"Our excellent fourth quarter results cap off a year of solidfinancial performance by Henry Schein. We are pleased to report recordquarterly net sales that reflect market share gains in our Dental,Medical and International businesses, which were further bolstered bystrategic acquisitions," commented Stanley M. Bergman, Chairman andChief Executive Officer of Henry Schein.

For the quarter, Dental sales increased 17.4%, including 17.1%growth in local currencies (12.2% internally generated and 4.9% fromacquisitions) and 0.3% related to foreign currency exchange. Of the17.1% local currency growth, Dental consumable merchandise salesincreased 15.9% (11.0% internal growth and 4.9% acquisition growth)and Dental equipment sales and service revenues were up 20.0% (15.0%internal growth and 5.0% acquisition growth). Internal sales growth inDental consumable merchandise and in equipment sales and servicerevenues was augmented by the acquisitions of Ash Temple in Canada andBarton-Cyker in the United States.

Medical sales increased 20.8% during the fourth quarter (19.6%internal growth and 1.2% acquisition growth), reflecting anacceleration of growth from recent quarters. Medical sales other thaninfluenza vaccine sales increased 13.2% (11.9% internal growth and1.3% acquisition growth). Medical sales for the 2005 fourth quarterreflect the resumption of distribution of Chiron's Fluvirin(R)influenza vaccine. The Company sold 3.7 million doses of Fluvirinduring the quarter, which was at the high end of its estimate of 2million to 4 million doses.

For the quarter, International sales increased 10.3%, including18.5% growth in local currencies (9.3% internally generated and 9.2%from acquisitions) offset by a 8.2% decline related to foreigncurrency exchange. Internal sales growth was bolstered by theacquisitions of the Demedis operations in Austria, Halas Dental inAustralia and Shalfoon Bros. in New Zealand.

Technology and Value-Added Services sales were 4.7% ahead of prioryear, including 4.5% growth in local currencies (all internal) and0.2% related to foreign currency exchange. Electronic servicesrevenues continued a strong double-digit growth trend.

On November 3, 2005, Henry Schein celebrated its 10-yearanniversary as a publicly traded company. Commenting on thismilestone, Mr. Bergman said, "Among our reasons for pursuing aninitial public offering was to provide funding for future growth, andas measured by any number of metrics, our growth during the pastdecade has been impressive. To cite just a couple of examples of ourfinancial performance, since 1995 our net sales have grown at acompound annual growth rate of slightly more than 22%, risingseven-fold from $616 million in 1995 to $4.6 billion in 2005.

"The 10-year income from continuing operations compound annualgrowth rate was even higher, at 33%," he continued. "Income fromcontinuing operations during this period rose 18-fold, from $9 millionin 1995 to $162 million in 2005. And our earnings per diluted share,which stood at a split-adjusted $0.35 in 1995, reached $1.82 per sharein 2005 as we reported today, representing a 10-year compound annualgrowth rate of 18%."

The Company noted that all 1995 financial data does not reflectsubsequent restatements for pooling of interest transactions andexcludes certain proforma adjustments.

Stock Repurchase Plan

In June 2004 and again in November 2005 the Company announcedshare repurchase programs of up to $100 million worth of common stockeach, under which 632,000 shares were repurchased during the fourthquarter at an average price of $39.81 per share. The impact of therepurchase of shares under this program on fourth quarter diluted EPSwas immaterial.

2006 EPS Guidance

Henry Schein affirms 2006 financial guidance, as first announcedon November 28, 2005, as follows:

-- 2006 diluted EPS is expected to be $2.20 to $2.26, excluding the impact of expensing stock options per Financial Accounting Standards No. 123(R), which the Company estimates to be $0.12 per diluted share.

-- Diluted EPS growth is expected to be in the low double digits percentage range for the first half of 2006, and then to accelerate for the second half of the year due to the impact of seasonal influenza vaccine sales and the timing of certain expenses.

-- This 2006 diluted EPS guidance includes Henry Schein's expectations that it will distribute approximately 15 million to 17 million doses of influenza vaccine during 2006, including product manufactured by GlaxoSmithKline Biologicals (which includes the former ID Biomedical), Chiron Corporation and sanofi pasteur.

-- All guidance is for current continuing operations including completed acquisitions, and does not include the impact of potential future acquisitions.

Fourth Quarter Conference Call Webcast

The Company will hold a conference call to discuss fourth quarterfinancial results today, beginning at 10:00 a.m. Eastern time.Individual investors are invited to listen to the conference call overthe Internet through Henry Schein's Web site at www.henryschein.com.In addition, a replay will be available beginning shortly after thecall has ended.

About Henry Schein

Henry Schein, a Fortune 500(R) company, is recognized for itsexcellent customer service and highly competitive prices. TheCompany's four business groups - Dental, Medical, International andTechnology - serve more than 475,000 customers worldwide, includingdental practices and laboratories, physician practices and veterinaryclinics, as well as government and other institutions. The Company'ssales reached a record $4.6 billion in 2005. The Company operatesthrough a centralized and automated distribution network, whichprovides customers in more than 125 countries with a comprehensiveselection of more than 160,000 national and Henry Schein private-brandproducts.

Henry Schein also offers a wide range of innovative value-addedpractice solutions for healthcare professionals, such as ArubA(R), theCompany's electronic catalog and ordering system. Its leadingpractice-management software solutions have been installed in morethan 50,000 practices - DENTRIX(R) and Easy Dental(R) for dentalpractices, and AVImark(R) for veterinary clinics.

Headquartered in Melville, N.Y., Henry Schein employs nearly11,000 people and has operations in 19 countries. For moreinformation, visit the Henry Schein Web site at www.henryschein.com.

In accordance with the "Safe Harbor" provisions of the PrivateSecurities Litigation Reform Act of 1995, the Company provides thefollowing cautionary remarks regarding important factors which, amongothers, could cause future results to differ materially from theforward-looking statements, expectations and assumptions expressed orimplied herein. All forward-looking statements made by us are subjectto risks and uncertainties and are not guarantees of futureperformance. These forward-looking statements involve known andunknown risks, uncertainties and other factors that may cause theCompany's actual results, performance and achievements, or industryresults to be materially different from any future results,performance or achievements expressed or implied by suchforward-looking statements. These statements are identified by the useof such terms as "may," "could," "expect," "intend," "believe,""plan," "estimate," "forecast," "project," "anticipate" or othercomparable terms. A full discussion of the Company's operations andfinancial condition, including factors that may affect its businessand future prospects, is contained in documents the Company has filedwith the SEC and will be contained in all subsequent periodic filingsmade with the SEC. These documents identify in detail important riskfactors that could cause the Company's actual performance to differmaterially from current expectations.

Risk factors and uncertainties that could cause actual results todiffer materially from current and historical results include, but arenot limited to: competitive factors; changes in the healthcareindustry; changes in government regulations that affect the Company;financial risks associated with the Company's internationaloperations; fluctuations in quarterly earnings; transitionalchallenges associated with acquisitions; regulatory and litigationrisks; the dependence on the Company's continued product development,technical support and successful marketing in the technology segment;the Company's dependence upon sales personnel and key customers; theCompany's dependence on its senior management; the Company'sdependence on third parties for the manufacture and supply of itsproducts; possible increases in the cost of shipping the Company'sproducts or other service trouble with the Company's third-partyshippers; risks from rapid technological change; and risks frompotential increases in variable interest rates.

The order in which these factors appear should not be construed toindicate their relative importance or priority. The Company cautionsthat these factors may not be exhaustive and that many of thesefactors are beyond the Company's ability to control or predict.Accordingly, forward-looking statements should not be relied upon as aprediction of actual results. The Company undertakes no duty and hasno obligation to update forward-looking statements.
HENRY SCHEIN, INC.
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)

Three Months Ended Years Ended
------------------------- ---------------------------
December 31, December 25, December 31, December 25,
2005 2004 2005 2004
------------ ------------ ------------ ------------
(unaudited) (unaudited)

Net sales $1,343,141 $1,156,122 $4,635,929 $3,898,485
Cost of sales 965,666 841,792 3,318,993 2,844,020
------------ ------------ ------------ ------------
Gross profit 377,475 314,330 1,316,936 1,054,465
Operating
expenses:
Selling,
general and
administrative 288,240 264,085 1,035,848 844,715
------------ ------------ ------------ ------------
Operating
income 89,235 50,245 281,088 209,750
Other income
(expense):
Interest income 2,846 1,143 7,315 6,110
Interest
expense (7,222) (5,582) (25,508) (17,596)
Other, net 744 (83) 1,659 365
------------ ------------ ------------ ------------
Income from
continuing
operations
before
taxes,
minority
interest and
equity in
earnings of
affiliates 85,603 45,723 264,554 198,629
Income taxes (31,247) (16,913) (97,002) (73,506)
Minority interest
in net loss
(income) of
subsidiaries (2,215) 221 (5,991) (1,486)
Equity in
earnings of
affiliates 313 368 827 1,699
------------ ------------ ------------ ------------
Income from
continuing
operations 52,454 29,399 162,388 125,336

Discontinued
operations:
Income (loss)
from
operations of
discontinued
components (1,268) 176 (18,448)(1) 4,745
Income tax
benefit
(expense) 514 (25) 7,386 (1,898)
------------ ------------ ------------ ------------
Income (loss)
from
discontinued
operations (754) 151 (11,062) 2,847
------------ ------------ ------------ ------------
Net income $51,700 $29,550 $151,326 $128,183
============ ============ ============ ============

Earnings from
continuing
operations per
share:
Basic $0.60 $0.34 $1.87 $1.44
============ ============ ============ ============
Diluted $0.59 $0.33 $1.82 $1.40
============ ============ ============ ============

Earnings (loss)
from
discontinued
operations per
share:
Basic $(0.01) $0.00 $(0.13) $0.03
============ ============ ============ ============
Diluted $(0.01) $0.00 $(0.12) $0.03
============ ============ ============ ============

Earnings per
share:
Basic $0.59 $0.34 $1.74 $1.47
============ ============ ============ ============
Diluted $0.58 $0.33 $1.70 $1.43
============ ============ ============ ============

Weighted-average
common shares
outstanding:
Basic 87,075 86,595 87,006 87,253
============ ============ ============ ============
Diluted 89,261 88,546 89,187 89,462
============ ============ ============ ============

Note: The above prior period amounts have been adjusted to reflect the
effects of our discontinued operations.

(1) Includes write-down of long-lived assets of $11.9 million recorded
in the third quarter of 2005.

HENRY SCHEIN, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share data)

December 31, December 25,
2005 2004
------------ ------------

ASSETS
Current assets:
Cash and cash equivalents $ 254,498 $ 186,621
Available-for-sale securities 80,195 -
Accounts receivable, net of reserves of
$52,308 and $44,852 582,617 554,666
Inventories 505,542 486,494
Deferred income taxes 35,505 28,795
Prepaid expenses and other 126,052 174,167
------------ ------------
Total current assets 1,584,409 1,430,743
Property and equipment, net 190,746 176,103
Goodwill 626,869 627,215
Other intangibles, net 123,204 129,285
Investments and other 57,892 70,324
------------ ------------
Total assets $ 2,583,120 $ 2,433,670
============ ============

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 371,392 $ 367,213
Bank credit lines 2,093 5,969
Current maturities of long-term debt 33,013 3,906
Accrued expenses:
Payroll and related 96,113 89,431
Taxes 65,070 70,970
Other 156,433 156,410
------------ ------------
Total current liabilities 724,114 693,899
Long-term debt 489,520 525,682
Deferred income taxes 74,042 66,599
Other liabilities 53,547 28,999

Minority interest 12,353 12,438
Commitments and contingencies

Stockholders' equity:
Preferred stock, $.01 par value,
1,000,000 shares authorized, none
outstanding - -
Common stock, $.01 par value, 240,000,000
shares authorized, 87,092,238
outstanding on December 31, 2005 and
120,000,000 shares authorized,
86,650,428 outstanding on December 25,
2004 871 867
Additional paid-in capital 472,960 445,573
Retained earnings 735,079 615,265
Accumulated other comprehensive income 21,059 44,785
Deferred compensation (425) (437)
------------ ------------
Total stockholders' equity 1,229,544 1,106,053
------------ ------------
Total liabilities and
stockholders' equity $ 2,583,120 $ 2,433,670
============ ============

Note: Included above, as of December 31, 2005, there are approximately
$44 million of accounts receivable, net of reserves, and
approximately $16 million of inventories, net of reserves, related to
discontinued operations.

HENRY SCHEIN, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Periods Ended December 31, 2005 and December 25, 2004
(in thousands)

Three Months Ended Years Ended
----------------------- -----------------------
2005 2004 2005 2004
----------- ----------- ----------- -----------
(unaudited) (unaudited)
Cash flows from
operating
activities:
Net income $ 51,700 $ 29,550 $ 151,326 $ 128,183
Adjustments to
reconcile net
income to net
cash provided by
operating
activities:
Depreciation and
amortization 17,798 18,095 60,345 51,326
Impairment from
write-down of
long-lived
assets - - 11,928 -
Provision for
losses on trade
and other
accounts
receivable 889 2,031 6,524 3,820
Deferred income
taxes 1,609 10,095 2,792 13,294
Stock issued to
401(k) plan - - 3,223 2,805
Undistributed
earnings of
affiliates (313) (368) (827) (1,699)
Minority
interest in net
income (loss)
of subsidiaries 2,215 (221) 5,991 1,486
Other (1,299) (2,514) (231) 1,519
Changes in
operating
assets and
liabilities,
net of
acquisitions:
Accounts
receivable 27,643 (2,023) (14,002) (35,075)
Inventories (27,641) (18,338) 6,484 (28,614)
Other current
assets (11,505) (18,406) 30,147 (13,919)
Accounts
payable and
accrued
expenses 90,463 114,629 1,441 67,873
----------- ----------- ----------- -----------
Net cash provided by
operating
activities 151,559 132,530 265,141 190,999
----------- ----------- ----------- -----------

Cash flows from
investing
activities:
Purchases of fixed
assets (14,625) (13,150) (50,829) (37,837)
Payments for
business
acquisitions, net
of cash acquired (9,665) 19,654 (1) (68,213) (132,375)
Payments related
to pending
business
acquisitions - (3,950) - (17,439)
Purchases of
available-for-
sale securities (103,520) - (111,945) -
Proceeds from
sales of
marketable
securities 31,749 - 31,749 14,472
Proceeds from
settlement of
note receivable 2,616 - 14,395 -
Net proceeds from
(payments for)
foreign exchange
forward contract
settlements 7,188 (5,013) 30,818 (8,234)
Other (9,414) 10,717 (8,841) 9,584
----------- ----------- ----------- -----------
Net cash provided by
(used in) investing
activities (95,671) 8,258 (162,866) (171,829)
----------- ----------- ----------- -----------

Cash flows from
financing
activities:
Proceeds from
issuance of long-
term debt - - - 240,000
Payments for debt
issuance costs - (627) (650) (5,781)
Net payments for
bank borrowings (637) (1,258) (3,525) (7,339)
Repayments of debt
assumed in
business
acquisitions - - - (135,718)
Principal payments
for long-term
debt (3,005) (295) (8,483) (3,359)
Proceeds from
issuance of stock
upon exercise of
stock options 4,222 2,172 29,500 21,425
Payments for
repurchases of
common stock (25,159) (11,547) (52,276) (82,213)
Other 182 144 (3,432) (645)
----------- ----------- ----------- -----------
Net cash provided by
(used in) financing
activities (24,397) (11,411) (38,866) 26,370
----------- ----------- ----------- -----------

Net change in cash
and cash
equivalents 31,491 129,377 63,409 45,540
Effect of exchange
rate changes on
cash and cash
equivalents 2,930 (15,727) 4,468 (16,270)
Cash and cash
equivalents,
beginning of period 220,077 72,971 186,621 157,351
----------- ----------- ----------- -----------
Cash and cash
equivalents, end of
period $ 254,498 $ 186,621 $ 254,498 $ 186,621
=========== =========== =========== ===========

NOTE: Certain prior period amounts have been reclassified to conform
with the current period presentation.

(1) Primarily reflects proceeds received from the divestiture of
DentalMV GmbH in July 2004 which was treated as a reduction of
purchase price of the Demedis Group acquired in June 2004.

Exhibit A

Henry Schein, Inc.
2005 Fourth Quarter and Full Year
Sales Growth Rate Summary
(unaudited)

Q4 2005 over Q4 2004
--------------------

Consolidated Dental Medical International Technology
------------ ------ ------- ------------- ----------

Internal 13.5% 12.2% 19.6% 9.3% 4.5%

Acquisitions 4.9% 4.9% 1.2% 9.2% -
------------ ------ ------- ------------- ----------

Local Currency
Sales Growth 18.4% 17.1% 20.8% 18.5% 4.5%

Foreign Currency
Exchange -2.2% 0.3% - -8.2% 0.2%
------------ ------ ------- ------------- ----------

Total Sales
Growth 16.2% 17.4% 20.8% 10.3% 4.7%
============ ====== ======= ============= ==========

Full Year 2005 over Full Year 2004
----------------------------------

Consolidated Dental Medical International Technology
------------ ------ ------- ------------- ----------

Internal 8.4% 11.3% 7.6% 4.8% 5.4%

Acquisitions 10.4% 6.6% 1.0% 30.9% -
------------ ------ ------- ------------- ----------

Local Currency
Sales Growth 18.8% 17.9% 8.6% 35.7% 5.4%

Foreign Currency
Exchange 0.1% 0.5% - -0.3% 0.2%
------------ ------ ------- ------------- ----------

Total Sales
Growth 18.9% 18.4% 8.6% 35.4% 5.6%
============ ====== ======= ============= ==========

Exhibit B

Henry Schein, Inc.
2005 Fourth Quarter and Full Year
Details of Growth Comparison
Income Statement Summary
(in thousands, except per share data)
(unaudited)

Fourth Quarter % Full Year %
2005 2004 Growth 2005 2004 Growth
As Reported
----------------------------------------------------------------------
Net Sales $1,343,141 $1,156,122 16.2% $4,635,929 $3,898,485 18.9%

Operating
Income $89,235 $50,245 77.6% $281,088 $209,750 34.0%
Margin 6.6% 4.3% 230 bp 6.1% 5.4% 68 bp

Income from
Continuing
Operations $52,454 $29,399 78.4% $162,388 $125,336 29.6%

Diluted EPS
from
Continuing
Operations $0.59 $0.33 78.8% $1.82 $1.40 30.0%

Net Income $51,700 $29,550 75.0% $151,326 $128,183 18.1%

Diluted EPS $0.58 $0.33 75.8% $1.70 $1.43 18.9%
----------------------------------------------------------------------

Add: One-Time Charge
Related to Influenza
Vaccine Contract (1)
Net Sales - - - -
Operating
Income - $13,246 - $13,246
Income from
Continuing
Operations - 8,358 - 8,358
Diluted EPS
from
Continuing
Operations - 0.10 - 0.10
Net Income - 8,358 - 8,358
Diluted EPS - 0.10 - 0.10

Comparable Basis
----------------------------------------------------------------------
Net Sales $1,343,141 $1,156,122 16.2% $4,635,929 $3,898,485 18.9%

Operating
Income $89,235 $63,491 40.5% $281,088 $222,996 26.1%
Margin 6.6% 5.5% 115 bp 6.1% 5.7% 34 bp

Income from
Continuing
Operations $52,454 $37,757 38.9% $162,388 $133,694 21.5%

Diluted EPS
from
Continuing
Operations $0.59 $0.43 37.2% $1.82 $1.50 21.3%

Net Income $51,700 $37,908 36.4% $151,326 $136,541 10.8%

Diluted EPS $0.58 $0.43 34.9% $1.70 $1.53 11.1%
----------------------------------------------------------------------

(1) In the fourth quarter of 2004, there was a $13.2 million pre-tax
($8.4 million after tax) one-time charge associated with an
agreement with Chiron Corporation to distribute Fluvirin influenza
vaccine. This one-time charge was included in the "Selling,
general and administrative" expense line on the statements of
income.

Use of Non-GAAP Measures: The above information includes financial
measures that are not calculated and presented in accordance with
accounting principles generally accepted in the United States
("GAAP"). The above table reconciles operating income from continuing
operations, net income and diluted earnings per share, the Company's
most directly comparable measure calculated and presented in
accordance with GAAP, to comparable amounts as adjusted to eliminate
the effect of a one-time item.

Management eliminated the effect of such one-time item to assist in
evaluating the underlying operational performance of the Company's
business, excluding such one-time item, over the periods presented.
Management believes that this presentation is appropriate and
facilitates such an evaluation by management, investors and analysts.
This measure should be considered supplemental to, and not a
substitute for or superior to, financial measures calculated in
accordance with GAAP.

Note: Prior periods adjusted to reflect the effect of our discontinued
operations.

Exhibit C

Henry Schein, Inc.
Discontinued Operations 2005 Quarterly and Full Year Results
(in thousands, except per share data)
(unaudited)

YTD
Q1 2005 Q2 2005 Q3 2005 Q4 2005 Q4 2005
------- ------- ------- ------- -------

Sales $38,413 $37,192 $37,306 $39,845 $152,756

Income (loss) from
discontinued operations
(including write-down of
long-lived assets of $7.0
million, after tax) $407 $(762)$(9,953) $(754)$(11,062)

Earnings (loss) from
discontinued operations per
share:
Basic $0.00 $0.00 $(0.12) $(0.01) $(0.13)
Diluted $0.00 $0.00 $(0.12) $(0.01) $(0.12)