Alcon's First Quarter Sales Rise 8.1 Percent, Net Earnings Increase 18.5 Percent

Alcon, Inc. (NYSE:ACL) reported global sales of $1,157.1million for the first quarter of 2006, an increase of 8.1 percent overglobal sales in the first quarter of 2005, or 10.5 percent excludingthe impact of foreign exchange fluctuations. Net earnings for thefirst quarter of 2006 increased 18.5 percent to $295.7 million, or$0.95 per share on a diluted basis, compared to $249.5 million, or$0.80 per share for the first quarter of 2005. Earnings per share inthe first quarter of 2006 were reduced by approximately $0.07 pershare due to the expensing of share-based compensation expense as aresult of the implementation of Statement of Financial AccountingStandards (SFAS) 123(R). If SFAS 123(R) had been in effect in thefirst quarter of 2005, a charge of $0.08 would have been incurred inthat quarter.

"Our strong sales and profit results for the first quarter wereconsistent with our expectations and reflected the continued successof our brand building across many product lines and gross marginimprovement due to favorable mix shift," said Cary Rayment, Alcon'schairman, president and chief executive officer. "The breadth of ourproduct line as well as global new product introductions are integralto our consistent performance and will be important contributors toour performance in the future."

First Quarter Sales Highlights

Highlights of sales for the first quarter of 2006 are providedbelow. Unless otherwise noted, all comparisons are versus the firstquarter of 2005.

-- U.S. sales grew 10.6 percent to $576.7 million, accounting for 49.8 percent of total sales. International sales grew 5.7 percent to $580.4 million, accounting for 50.2 percent of total sales. Excluding the impact of foreign exchange fluctuations, International sales grew 10.3 percent.

-- Pharmaceutical sales grew 10.0 percent to $475.1 million and contributed 41.1 percent of total sales. On a constant currency basis, pharmaceutical sales grew 11.5 percent. Sales of glaucoma products increased 2.9 percent, due to growth in sales of Travatan(R) and Azopt(R) ophthalmic solutions which offset declines in older glaucoma products. On a global basis, Travatan(R) sales rose 13.0 percent on unit growth of 22.9 percent. In the U.S., prescription data showed a 22.4 percent increase in prescriptions year to date through February, 2006 compared to the same period last year. Sales of infection/inflammation products rose 8.4 percent led by increased penetration of Vigamox(R) ophthalmic solution in the U.S. and the contribution to sales of Nevanac(TM) ophthalmic suspension, which was introduced in the third quarter of 2005. Sales of allergy products rose 23.4 percent as the allergy category grew in the U.S. and because major U.S. wholesalers increased their inventories of Patanol(R) ophthalmic solution in advance of the allergy season by more than they did in last year's first quarter. Sales of otic products grew by 7.9 percent, as Ciprodex(R) and Cipro(R) HC otic suspensions gained share on a combined basis in the U.S.

-- Surgical sales rose 7.6 percent to $525.2 million, accounting for 45.4 percent of total sales. On a constant currency basis, surgical sales rose 11.0%. Sales of intraocular lenses increased 18.7 percent to $188.5 million, primarily driven by an increase in sales of AcrySof(R) ReSTOR(R) intraocular lenses, especially in the U.S. where it was not available in the first quarter of 2005. Global sales of AcrySof(R) ReSTOR(R) lenses in the first quarter of 2006 were $23.3 million compared to $3.2 million in the first quarter of 2005. If AcrySof(R) ReSTOR(R) sales are adjusted for the premium pricing versus conventional lenses, the underlying sales growth of the intraocular lens business was about 9.4 percent, significantly higher than the rate of growth in cataract surgery. Sales of cataract and vitrectomy products rose 3.4 percent, as stable growth in consumables was offset by a decline in sales of new cataract systems compared to a strong first quarter in 2005. Vitreoretinal surgical products, including equipment and disposables, continued to grow faster than the market and also benefited from the continued transition to higher value 25 gauge technology. Refractive revenue declined 19.3 percent due mainly to a decrease in procedure fees in the U.S.

-- Consumer eye care sales increased 4.4 percent to $156.8 million, accounting for 13.5 percent of total sales. On a constant currency basis, consumer eye care sales rose 5.6%. Sales of contact lens disinfectants grew 2.5 percent, as the launch of OPTI-FREE(R) RepleniSH(TM) multipurpose disinfecting solution in the U.S. offset the decline of older lens cleaning products. Sales of artificial tears increased 14.6 percent led by the continued growth of Systane(R) lubricant eye drops on a global basis.

First Quarter Earnings Details

Highlights of earnings for the first quarter of 2006 are providedbelow. Unless otherwise noted, all increases are versus first quarterof 2005.

-- Gross profits increased 11.1 percent, while gross profit margin rose 2.1 percentage points to 75.1 percent of sales. This was primarily due to favorable product mix, manufacturing efficiencies and lower royalty expense.

-- Selling, general and administrative expenses as a percent of sales rose 2.0 percentage points to 33.4, due primarily to the impact of share-based compensation expenses, as well as additional sales force and expanded promotional spending. Research and development expenses as a percent of sales increased 1.1 percentage points to 10.3 percent of sales, because of share-based compensation and increased project spending.

-- Operating profits increased 4.8 percent to $342.4 million, or 29.6 percent of sales. Effective January 1, 2006, the company adopted SFAS 123(R) related to share-based compensation. The adoption reduced operating income by $31.3 million in 2006 and partially offset strong underlying operating profit growth.

-- Net income rose 18.5 percent as a result of healthy sales growth, operating expense control, operational leverage, and a lower effective tax rate, offset by the unfavorable impact of share-based compensation of $21.1 million.

New Product and R&D Pipeline Update

Summarized below are updates on new products and significantresearch and development activities.

-- Alcon and Amgen signed an agreement to jointly research, develop and commercialize new pharmaceutical products in the field of ophthalmology that are based on compounds selected from Amgen's pipeline. The collaboration is directed to the discovery and development of novel treatments for multiple ophthalmic conditions, including retinal diseases such as age-related macular degeneration (AMD) and macular edema, as well as glaucoma, allergy and dry eye.

-- The company received approval of AcrySof(R) Natural intraocular lens by the Ministry of Health, Labor, and Welfare (MHLW) in Japan and expects to launch this lens along with the AcrySert(R) IOL insertion device in the second quarter of 2006.

-- DuoTrav(TM), a fixed combination of travoprost 0.004% and timolol 0.5%, received a positive recommendation for approval in the European Union by the Committee for Medicinal Products for Human Use (CHMP), with marketing approval expected in the second quarter of 2006. The company also received approvals of DuoTrav(TM) in Canada and Chile.

-- The U.S. Food and Drug Administration (FDA) concluded its inspection of Alcon's refractive surgical equipment operations as a part of the process to clear the outstanding warning letter related to its complaint resolution processes. Once the items in the warning letter have been cleared, the FDA can proceed with the approval process on the company's open applications for the LADAR6000(TM) and expanded ranges of refractive correction.

Financial Guidance

Financial guidance for the full year 2006 and factors impactingthis guidance are provided below.

-- Total sales are expected to be between $4,800 and $4,850 million.

-- Sales of AcrySof(R) ReSTOR(R) intraocular lenses are expected to be between $130 and $150 million.

-- Diluted earnings per share are expected to be between $4.03 and $4.12, which includes $0.17 per share for share-based compensation expense resulting from the adoption of SFAS 123(R).

Other Items

-- Alcon is increasing its production of OPTI-FREE(R) Express and RepleniSH(TM) contact lens solutions to meet expected demand for these solutions due to the suspension of production of a competing product. This expansion will not involve additional capital spending.

-- Alcon filed a motion for a new trial and commenced its appeal of the lower court's December 2005 judgment in a patent litigation case. It also commenced shipments of its newly-designed FMS cassette design for the Infiniti(R) vision system and the company has ceased production of the prior version of the cassette which was a subject of the patent litigation.

Company Description

Alcon, Inc. is the world's leading eye care company, with sales of$4.37 billion in 2005. Alcon, which has been dedicated to theophthalmic industry for more than 50 years, researches, develops,manufactures and markets pharmaceuticals, surgical equipment anddevices, contact lens care solutions and other vision care productsthat treat diseases, disorders and other conditions of the eye.Alcon's majority shareholder is Nestle, S.A., the world's largest foodcompany. All trademarks noted in this release are the property ofAlcon, Inc., with the exception of Cipro(R) and Ciprodex(R), which arethe property of Bayer AG and licensed to Alcon. Vigamox(R) is licensedto Alcon from Bayer AG.

ALCON, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Earnings (Unaudited)
(USD in millions, except share and per share data)


Three months ended
March 31,
-------------------------
2006 2005
------------ ------------

Sales $1,157.1 $1,070.5
Cost of goods sold 288.2 288.6
------------ ------------

Gross profit 868.9 781.9

Selling, general and administrative 386.7 336.5
Research and development 119.3 98.5
Amortization of intangibles 20.5 20.1
------------ ------------

Operating income 342.4 326.8

Other income (expense):
Gain (loss) from foreign currency, net (1.9) 2.4
Interest income 18.8 8.1
Interest expense (12.5) (8.7)
Other, net 7.3 (0.3)
------------ ------------

Earnings before income taxes 354.1 328.3

Income taxes 58.4 78.8
------------ ------------

Net earnings $295.7 $249.5
============ ============


Basic earnings per common share $0.96 $0.82
============ ============

Diluted earnings per common share $0.95 $0.80
============ ============

Basic weighted average common shares 306,487,627 304,929,915
Diluted weighted average common shares 311,647,291 310,505,089


ALCON, INC. AND SUBSIDIARIES
Global Sales
(USD in millions)


Three months ended %Change
March 31, Foreign in
------------------ Currency Constant
2006 2005 %Change %Change Currency
--------- --------- -------- -------- --------
GEOGRAPHIC SALES
United States:
Pharmaceutical $279.1 $252.6 10.5 % -- % 10.5 %
Surgical 223.5 197.4 13.2 -- 13.2
Consumer eye care 74.1 71.2 4.1 -- 4.1
--------- ---------

Total United States
Sales 576.7 521.2 10.6 -- 10.6
--------- ---------

International:
Pharmaceutical 196.0 179.4 9.3 (3.6) 12.9
Surgical 301.7 290.9 3.7 (5.8) 9.5
Consumer eye care 82.7 79.0 4.7 (2.3) 7.0
--------- ---------

Total International
Sales 580.4 549.3 5.7 (4.6) 10.3
--------- ---------

Total Global Sales $1,157.1 $1,070.5 8.1 % (2.4)% 10.5 %
========= =========

PRODUCT SALES
Infection/inflammation $175.8 $162.2 8.4 %
Glaucoma 158.8 154.3 2.9
Allergy 107.0 86.7 23.4
Otic 46.4 43.0 7.9
Other pharmaceuticals/
rebates (12.9) (14.2) N/M
--------- ---------

Total Pharmaceutical 475.1 432.0 10.0 (1.5)% 11.5 %
--------- ---------

Intraocular lenses 188.5 158.8 18.7
Cataract/vitreoretinal 322.9 312.4 3.4
Refractive 13.8 17.1 (19.3)
--------- ---------

Total Surgical 525.2 488.3 7.6 (3.4) 11.0
--------- ---------

Contact lens
disinfectants 77.7 75.8 2.5
Artificial tears 50.1 43.7 14.6
Other 29.0 30.7 (5.5)
--------- ---------

Total Consumer Eye
Care 156.8 150.2 4.4 (1.2) 5.6
--------- ---------

Total Global Sales $1,157.1 $1,070.5 8.1 % (2.4)% 10.5 %
========= =========

N/M -- Not Meaningful

Note: Percent Change in Constant Currency calculates sales growthwithout the impact of foreign exchange fluctuations. Managementbelieves constant currency sales growth is an important measure of thecompany's operations because it provides investors with a clearerpicture of the core rate of sales growth due to changes in unitvolumes and local currency prices. Certain 2005 product sales detailshave been reclassified to conform to the current period presentation.

ALCON, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets (Unaudited)
(USD in millions)


March 31, December 31,
2006 2005
------------- ------------
Assets
Current assets:
Cash and cash equivalents $1,547.9 $1,457.2
Short term investments 353.5 377.7
Trade receivables, net 829.8 725.4
Inventories 443.1 427.2
Deferred income tax assets 180.0 178.9
Other current assets 92.8 101.6
------------- ------------

Total current assets 3,447.1 3,268.0

Long term investments 158.3 154.8
Property, plant and equipment, net 839.7 829.6
Intangible assets, net 273.3 293.7
Goodwill 550.6 550.0
Long term deferred income tax assets 86.2 77.5
Other assets 53.3 54.6
------------- ------------

Total assets $5,408.5 $5,228.2
============= ============

Liabilities and Shareholders' Equity

Current liabilities:
Accounts payable $154.9 $156.0
Short term borrowings 917.6 1,021.5
Current maturities of long term debt 6.1 5.9
Other current liabilities 1,031.2 1,095.1
------------- ------------

Total current liabilities 2,109.8 2,278.5
------------- ------------

Long term debt, net of current maturities 49.7 56.0
Long term deferred income tax liabilities 16.3 15.8
Other long term liabilities 336.5 321.8
Contingencies

Shareholders' equity:
Common shares 43.5 43.4
Additional paid-in capital 873.0 806.3
Accumulated other comprehensive income 106.5 90.9
Retained earnings 2,577.4 2,282.3
Treasury shares, at cost (704.2) (666.8)
------------- ------------

Total shareholders' equity 2,896.2 2,556.1
------------- ------------

Total liabilities and
shareholders' equity $5,408.5 $5,228.2
============= ============


ALCON, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows (Unaudited)
(USD in millions)


Three months ended
March 31,
----------------------
2006 2005
----------- ----------

Cash provided by operating activities:
Net cash from operating activities $267.6 $266.4
----------- ----------

Cash provided by (used in) investing
activities:
Purchases of property, plant and equipment (36.4) (32.7)
Purchases of intangible assets -- (2.8)
Net purchases of available-for-sale
investments (25.4) (24.4)
Other 0.1 0.8
----------- ----------

Net cash from investing activities (61.7) (59.1)
----------- ----------

Cash provided by (used in) financing
activities:
Net proceeds from (repayment of) short term
debt (110.8) 84.4
Repayment of long term debt (4.8) (4.4)
Proceeds from exercise of stock options 24.1 48.5
Tax benefits from share-based payment
arrangements 34.4 --
Acquisition of treasury shares (64.0) (87.6)
Other -- 0.8
----------- ----------

Net cash from financing activities (121.1) 41.7
----------- ----------

Effect of exchange rates on cash and cash
equivalents 5.9 (30.4)
----------- ----------

Net increase (decrease) in cash and cash
equivalents 90.7 218.6

Cash and cash equivalents, beginning of period 1,457.2 1,093.4
----------- ----------

Cash and cash equivalents, end of period $1,547.9 $1,312.0
=========== ==========

Supplemental disclosure of cash flow
information:
Cash paid during the period for the
following:

Interest expense, net of amount capitalized $11.2 $9.3
=========== ==========

Income taxes $52.3 $51.9
=========== ==========

Caution Concerning Forward-Looking Statements

This press release contains forward-looking statements within themeaning of the Private Securities Litigation Reform Act of 1995. Theseforward-looking statements principally relate to statements regardingthe expectations of our management with respect to the futureperformance of various aspects of our business. These statementsinvolve known and unknown risks, uncertainties and other factors whichmay cause our actual results, performance or achievements to bematerially different from any future results, performances orachievements expressed or implied by our forward-looking statements.Words such as "may," "will," "should," "could," "would," "expect,""plan," "anticipate," "believe," "hope," "intend," "estimate,""project," "predict," "potential" and similar expressions are intendedto identify forward-looking statements. These statements reflect theviews of our management as of the date of this press release withrespect to future events and are based on assumptions and subject torisks and uncertainties and are not intended to give any assurance asto future results. Given these uncertainties, you should not placeundue reliance on these forward-looking statements. Factors that mightcause future results to differ include, but are not limited to, thefollowing: the development of commercially viable products may takelonger and cost more than expected; changes in reimbursementprocedures by third party payers may affect our sales and profits;competition may lead to worse than expected financial condition andresults of operations; currency exchange rate fluctuations maynegatively affect our financial condition and results of operations;pending or future litigation may negatively impact our financialcondition and results of operations; litigation settlements mayadversely impact our financial condition; the occurrence of excessiveproperty and casualty, general liability or business interruptionlosses, for which we are self-insured, may adversely impact ourfinancial condition; product recalls or withdrawals may negativelyimpact our financial condition or results of operations; governmentregulation or legislation may negatively impact our financialcondition or results of operations; changes in tax laws or regulationsin the jurisdictions in which we and our subsidiaries are subject totaxation may adversely impact our financial performance; supply andmanufacturing disruptions could negatively impact our financialcondition or results of operations. You should read this press releasewith the understanding that our actual future results may bematerially different from what we expect. We qualify all of ourforward-looking statements by these cautionary statements. Except tothe extent required under the federal securities laws and the rulesand regulations promulgated by the Securities and Exchange Commission,we undertake no obligation to publicly update or revise any of theseforward-looking statements, whether to reflect new information orfuture events or circumstances or otherwise.