Henry Schein Reports Record First Quarter Results; Income from Continuing Operations grows by 17%

Net sales for the first quarter of 2006 were $1.16 billion, anincrease of 9.3% from the first quarter of 2005 (See Exhibit A fordetails of sales growth). This increase includes 11.7% local currencygrowth (8.3% internally generated and 3.4% from acquisitions) offsetby a 2.4% decline related to foreign currency exchange.

First quarter income from continuing operations was $35.6 million,up 16.8% compared with the first quarter of 2005, and earnings perdiluted share from continuing operations were $0.40, up 14.3% comparedwith the prior-year quarter. Income from continuing operationsexcludes an after-tax charge of $19.4 million, or $0.22 per dilutedshare, for the loss on disposal of the Hospital Supply business, whichhas previously been treated as a discontinued operation. EffectiveJanuary 1, 2006, the Company adopted the new accounting rules onexpensing stock-based compensation per Financial Accounting StandardsNo. 123(R) on a retrospective basis. All periods presented have beenadjusted to give effect to FAS No. 123(R) which amounted toapproximately $0.03 per share in Q1 2006 and Q1 2005.

"Our financial results from continuing operations feature firstquarter records for sales, income and diluted EPS," said Stanley M.Bergman, Chairman and Chief Executive Officer of Henry Schein."Internal sales growth in local currencies once again exceeded ourestimate for market growth and reflected strength in all businessGroups."

For the quarter, Dental sales increased 10.4%, including 9.8%growth in local currencies (9.1% internally generated and 0.7% fromacquisitions) and 0.6% related to foreign currency exchange. Of the9.8% local currency growth, Dental consumable merchandise salesincreased 9.9% (9.3% internal growth and 0.6% acquisition growth) andDental equipment sales and service revenues were up 9.1% (8.4%internal growth and 0.7% acquisition growth).

"The first quarter marks the 11th consecutive quarter ofdouble-digit sales growth in our Dental Group as we continue to gainmarket share. Dental sales growth reflects a highly trained fieldsales force, effective and innovative marketing initiatives, and anongoing commitment to expanding the products and services we bring toour customers," explained Mr. Bergman.

Medical sales increased 6.8% during the first quarter (4.9%internal growth and 1.9% acquisition growth).

"At the end of Q1 we completed the sale of our Hospital Supplybusiness," commented Mr. Bergman. "This divestiture sharpens our focuson our office-based physician operations, which represents our corecompetency and is our foundation for future growth. Also, at the endof the quarter we completed our acquisition of NLS Animal Health. Thisacquisition represents a significant increase in Henry Schein'sveterinary footprint in the United States, which along with ourgrowing European veterinary presence, offers Henry Schein's vendorpartners a unique opportunity to access veterinarians on aninternational basis."

For the quarter, International sales increased 10.3%, including20.3% growth in local currencies (10.8% internally generated and 9.5%from acquisitions) offset by a 10.0% 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.

"Internal International sales growth in local currencies isapproximately double our estimate for growth in the markets we serve.We enjoy tremendous opportunities overseas, and look forward tobuilding upon our formidable presence particularly in Europe," addedMr. Bergman.

Technology and Value-Added Services sales were 8.6% ahead of prioryear, including 8.3% growth in local currencies (all internal) and0.3% related to foreign currency exchange. Electronic servicesrevenues continued a strong double-digit growth trend.

2006 EPS Guidance

Henry Schein affirms 2006 financial guidance, as follows:

-- 2006 diluted EPS is expected to be $2.08 to $2.14 including the impact of expensing stock-based compensation per Financial Accounting Standards No. 123(R).

-- Diluted EPS growth is expected to be in the low double digits percentage range for the second quarter 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.

First Quarter Conference Call Webcast

The Company will hold a conference call to discuss first 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 500,000 customers worldwide, includingdental practices and laboratories, physician practices and veterinaryclinics, as well as government and other institutions. The Companyoperates through a centralized and automated distribution network,which provides customers in more than 200 countries with acomprehensive selection of more than 70,000 national and Henry Scheinprivate-brand products in stock, as well as over 100,000 additionalproducts available to our customers as special order items.

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, including DENTRIX(R) and Easy Dental(R) fordental practices, and AVImark(R) for veterinary clinics.

Headquartered in Melville, N.Y., Henry Schein employs nearly11,000 people and has operations in 19 countries. The Company's salesreached a record $4.6 billion in 2005. For more information, visit theHenry Schein Web site at www.henryschein.com.

In accordance with the "Safe Harbor" provisions of the PrivateSecurities Litigation Reform Act of 1995, we provide the followingcautionary remarks regarding important factors which, among others,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 ouractual results, performance and achievements, or industry results tobe materially different from any future results, performance orachievements expressed or implied by such forward-looking statements.These statements are identified by the use of such terms as "may,""could," "expect," "intend," "believe," "plan," "estimate,""forecast," "project," "anticipate" or other comparable terms. A fulldiscussion of our operations and financial condition, includingfactors that may affect our business and future prospects, iscontained in documents we have filed with the SEC and will becontained in all subsequent periodic filings we make with the SEC.These documents identify in detail important risk factors that couldcause our actual performance to differ materially from currentexpectations.

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 us; financialrisks associated with our international operations; fluctuations inquarterly earnings; our dependence on third parties for themanufacture and supply of our products; transitional challengesassociated with acquisitions; regulatory and litigation risks; thedependence on our continued product development, technical support andsuccessful marketing in the technology segment; our dependence uponsales personnel and key customers; our dependence on our seniormanagement; possible increases in the cost of shipping our products orother service trouble with our third-party shippers; risks from rapidtechnological change; risks from potential increases in variableinterest rates; financial risks associated with acquisitions; possiblevolatility of the market price of our common stock; certain provisionsin our governing documents that may discourage third-partyacquisitions of us; and changes in tax legislation that affect us. Theorder in which these factors appear should not be construed toindicate their relative importance or priority.

We caution that these factors may not be exhaustive and that manyof these factors are beyond our ability to control or predict.Accordingly, forward-looking statements should not be relied upon as aprediction of actual results. We undertake no duty and have noobligation to update forward-looking statements.

HENRY SCHEIN, INC.
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
(unaudited)

Three Months Ended
-------------------------------
April 1, March 26,
2006 2005
--------------- ---------------


Net sales $1,161,781 $1,062,997
Cost of sales 824,179 761,603
--------------- ---------------
Gross profit 337,602 301,394
Operating expenses:
Selling, general and administrative 276,684 248,132
--------------- ---------------
Operating income 60,918 53,262
Other income (expense):
Interest income 4,556 1,299
Interest expense (7,394) (6,226)
Other, net 221 (113)
--------------- ---------------
Income from continuing operations before
taxes, minority interest and equity in
earnings of affiliates 58,301 48,222
Income taxes (21,222) (17,861)
Minority interest in net income of
subsidiaries (1,560) (45)
Equity in earnings of affiliates 108 187
--------------- ---------------
Income from continuing operations 35,627 30,503

Discontinued operations:
Income (loss) from operations of
discontinued components
(including loss on disposal
of $32,272) (32,279) 560
Income tax benefit (expense) 12,911 (190)
--------------- ---------------
Income (loss) from discontinued
operations (19,368) 370
--------------- ---------------
Net income $ 16,259 $ 30,873
=============== ===============

Earnings from continuing operations
per share:
Basic $ 0.41 $ 0.35
=============== ===============
Diluted $ 0.40 $ 0.35
=============== ===============

Earnings (loss) from discontinued
operations per share:
Basic $ (0.22) $ 0.01
=============== ===============
Diluted $ (0.22) $ 0.00
=============== ===============

Earnings per share:
Basic $ 0.19 $ 0.36
=============== ===============
Diluted $ 0.18 $ 0.35
=============== ===============

Weighted-average common shares
outstanding:
Basic 87,310 86,679
=============== ===============
Diluted 89,242 88,221
=============== ===============

Note: The above prior period amounts have been restated to reflect the
effects of our discontinued operations and the expensing of
stock-based compensation pursuant to our adoption of FAS 123(R) using
the modified retrospective application.


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

April 1, December 31,
2006 2005
--------------- --------------
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 159,890 $ 254,498
Available-for-sale securities 80,175 80,195
Accounts receivable, net of
reserves of $39,494 and $52,308 546,414 582,617
Inventories 511,949 505,542
Deferred income taxes 30,108 35,505
Prepaid expenses and other 164,970 126,052
--------------- ---------------
Total current assets 1,493,506 1,584,409
Property and equipment, net 194,258 190,746
Goodwill 682,482 626,869
Other intangibles, net 133,936 123,204
Investments and other 62,762 57,892
--------------- ---------------
Total assets $2,566,944 $2,583,120
=============== ===============

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 340,651 $ 371,392
Bank credit lines 3,380 2,093
Current maturities of long-term
debt 30,717 33,013
Accrued expenses:
Payroll and related 83,318 96,113
Taxes 44,532 65,070
Other 146,477 156,433
--------------- ---------------
Total current liabilities 649,075 724,114
Long-term debt 488,214 489,520
Deferred income taxes 60,374 54,432
Other liabilities 56,146 53,547

Minority interest 14,258 12,353
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,
88,256,957 outstanding on
April 1, 2006 and 87,092,238
outstanding on December 31, 2005 883 871
Additional paid-in capital 587,107 559,266
Retained earnings 684,217 667,958
Accumulated other comprehensive
income 26,670 21,059
--------------- ---------------
Total stockholders' equity 1,298,877 1,249,154
--------------- ---------------
Total liabilities and
stockholders' equity $2,566,944 $2,583,120
=============== ===============

Note: The above prior period amounts have been restated to reflect the
effects of our adoption of FAS 123(R) using the modified retrospective
application. Also, 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 which were sold during the three months ended
April 1, 2006.


HENRY SCHEIN, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)

Three Months Ended
-----------------------------
April 1, March 26,
2006 2005
-------------- --------------

Cash flows from operating activities:
Net income $ 16,259 $ 30,873
Adjustments to reconcile net income
to net cash
used in operating activities:
Loss on sale of discontinued
operation, net of tax 19,363 -
Depreciation and amortization 14,352 13,237
Stock-based compensation expense 3,857 3,740
Provision for (recovery of) losses
on trade and other accounts
receivable 118 (208)
Deferred income taxes 4,978 1,638
Undistributed earnings of
affiliates (108) (187)
Minority interest in net income of
subsidiaries 1,560 45
Other (1,113) 1,089
Changes in operating assets and
liabilities, net of acquisitions:
Accounts receivable 4,599 14,434
Inventories (12,481) 8,610
Other current assets 3,143 29,908
Accounts payable and accrued
expenses (92,527) (121,356)
-------------- --------------
Net cash used in operating activities (38,000) (18,177)
-------------- --------------

Cash flows from investing activities:
Purchases of fixed assets (11,168) (8,138)
Payments for business acquisitions,
net of cash acquired (72,712) (39,046)
Purchases of available-for-sale
securities (60,875) -
Proceeds from sales of available-
for-sale securities 60,895 -
Net payments for foreign exchange
forward contract settlements (1,161) (4,478)
Other 191 (2,302)
-------------- --------------
Net cash used in investing activities (84,830) (53,964)
-------------- --------------

Cash flows from financing activities:
Net proceeds from bank borrowings 1,223 183
Principal payments for long-term
debt (2,645) (696)
Proceeds from issuance of stock upon
exercise of stock options 17,108 10,944
Payments for repurchases of common
stock - (16,310)
Proceeds from excess tax benefits
related to stock-based compensation 6,925 2,882
Other (186) (401)
-------------- --------------
Net cash provided by (used in) financing
activities 22,425 (3,398)
-------------- --------------

Net change in cash and cash equivalents (100,405) (75,539)
Effect of exchange rate changes on cash
and cash equivalents 5,797 3,659
Cash and cash equivalents, beginning of
period 254,498 186,621
-------------- --------------
Cash and cash equivalents, end of period $ 159,890 $ 114,741
============== ==============

Note: The above prior period amounts have been restated to reflect the
effects of our adoption of FAS 123(R) using the modified retrospective
application.


Exhibit A

Henry Schein, Inc.
2006 First Quarter
Sales Growth Rate Summary
(unaudited)


Q1 2006 over Q1 2005
--------------------


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

Internal 8.3% 9.1% 4.9% 10.8% 8.3%

Acquisitions 3.4% 0.7% 1.9% 9.5% -
------------ ------ ------- ------------- ----------

Local Currency
Sales Growth 11.7% 9.8% 6.8% 20.3% 8.3%

Foreign Currency
Exchange -2.4% 0.6% - -10.0% 0.3%
------------ ------ ------- ------------- ----------

Total Sales
Growth 9.3% 10.4% 6.8% 10.3% 8.6%
============ ====== ======= ============= ==========