Henry Schein Reports Record Second Quarter Results; Net Sales Increase 10.5% to $1.22 Billion, Diluted EPS from Continuing Operations up 16% to $0.50

Net sales for the second quarter of 2006 were $1.22 billion, anincrease of 10.5% from the second quarter of 2005 (See Exhibit A fordetails of sales growth). This increase includes 10.3% local currencygrowth (5.9% internally generated and 4.4% from acquisitions net ofdivestiture) and 0.2% related to foreign currency exchange.

Net income and income from continuing operations for the secondquarter of 2006 were both $45.2 million or $0.50 per diluted share.There was no impact of discontinued operations for the quarter. Secondquarter 2006 income and diluted earnings per share from continuingoperations were up 19.7% and 16.3% respectively, compared to the prioryear quarter. Effective January 1, 2006, the Company adopted the newaccounting rules on expensing stock-based compensation per FinancialAccounting Standards No. 123(R) on a retrospective basis. All periodspresented have been adjusted to give effect to FAS No. 123(R), whichamounted to approximately $0.04 per share in the second quarter of2006, and $0.03 per share in the second quarter of 2005.

"Our second quarter financial results from continuing operationswere strong, with solid top-line internal growth bolstered by thecontribution of several strategic acquisitions," said Stanley M.Bergman, Chairman and Chief Executive Officer of Henry Schein."Internal sales growth in local currencies exceeded our estimate formarket growth, and reflects particular strength in our Dental Group."

For the quarter, Dental sales increased 10.8%, including 9.4%growth in local currencies (essentially all internally generated) and1.4% related to foreign currency exchange. Of the 9.4% local currencygrowth, Dental consumable merchandise sales increased 6.9% and Dentalequipment sales and service revenues were up 18.1%.

"Our Dental Group has posted double-digit sales growth eachquarter for the past three years. Dental sales growth reflects anongoing commitment to expanding the products and services we bring toour customers, as well as effective and innovative marketinginitiatives and a highly trained field sales force," explained Mr.Bergman. "As an example of our commitment to an expanding productoffering, we were delighted to announce earlier this month that HenrySchein was named the exclusive distributor for Imaging SciencesInternational's line of 3-D diagnostic imaging technology, whichpreviously was sold directly to dentists." Mr. Bergman continued, "Welook forward to closing our acquisition of certain businesses of DarbyGroup Companies during the third quarter, which will afford deeperpenetration by our Dental and Medical divisions."

Medical sales increased 14.3% during the second quarter (3.3%internal growth and 11.0% acquisition growth net of divestiture)."Medical Group growth was highlighted by our acquisition of NLS AnimalHealth, which is performing well in its first quarter as a HenrySchein company," said Mr. Bergman. "Our Medical group is in theprocess of planning and executing our influenza vaccine strategy forthe upcoming season, and at this time pre-bookings for influenzavaccine are strong. We continue to estimate that we will distributeapproximately 15 to 17 million doses of flu vaccine this year."

For the quarter, International sales increased 6.9%, including8.1% growth in local currencies (3.6% internally generated and 4.5%from acquisitions) offset by a 1.2% decline related to foreigncurrency exchange.

Mr. Bergman noted that after the close of the second quarter thecompany announced its acquisition of Provet AG, the leading veterinarydistribution company in Switzerland. Together with the purchase of NLSAnimal Health, Henry Schein has essentially doubled the size of itsworldwide veterinary business.

Technology and Value-Added Services sales during the secondquarter of 2006 were 3.7% ahead of prior year, including 3.1% growthin local currencies (all internal) and 0.6% related to foreigncurrency exchange. Electronic claims services revenues continued astrong double-digit growth trend.

Year-to-Date Results

For the year-to-date, net sales of $2.4 billion represents anincrease of 9.9% compared to the prior year-to-date. This increaseincludes 10.9% local currency growth (7.1% internally generated and3.8% from acquisitions net of divestiture) offset by a 1.0% declinerelated to foreign currency exchange. Income from continuingoperations for the first half of 2006 was $80.8 million reflecting18.4% growth compared to the prior year. Earnings per diluted sharefrom continuing operations of $0.90 for the first half of 2006represents 16.9% growth over the same period in the prior year.

Stock Repurchase Plan

The Company announced that 512,034 shares were repurchased duringthe second quarter at an average price of $45.78 per share.Approximately $88 million remains authorized for future stockrepurchases. The impact of the repurchase of shares under this programon second quarter diluted EPS was immaterial.

2006 EPS Guidance

Henry Schein provides 2006 financial guidance, as follows:

-- 2006 diluted EPS is expected to be $2.10 to $2.16 including the impact of expensing stock-based compensation per Financial Accounting Standards No. 123(R).

-- This represents an increase to previous guidance of $2.08 to $2.14. The increase in guidance is related to a number of factors including the strength of first half results, contributions from recent acquisitions, and expansion of product portfolio.

-- 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 or previously announced acquisitions, and does not include the impact of potential future acquisitions.

Second Quarter Conference Call Webcast

The Company will hold a conference call to discuss second 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 Six Months Ended
----------------------- -----------------------
July 1, June 25, July 1, June 25,
2006 2005 2006 2005
----------- ----------- ----------- -----------


Net sales $1,220,360 $1,104,428 $2,382,141 $2,167,425
Cost of sales 860,900 783,092 1,685,079 1,544,695
----------- ----------- ----------- -----------
Gross profit 359,460 321,336 697,062 622,730
Operating expenses:
Selling, general and
administrative 282,712 254,278 559,396 502,410
----------- ----------- ----------- -----------
Operating income 76,748 67,058 137,666 120,320
Other income
(expense):
Interest income 3,969 1,228 8,525 2,527
Interest expense (7,302) (5,084) (14,696) (11,310)
Other, net (339) - (118) (113)
----------- ----------- ----------- -----------
Income from
continuing
operations before
taxes, minority
interest and
equity in
earnings of
affiliates 73,076 63,202 131,377 111,424
Income taxes (26,379) (23,211) (47,601) (41,072)
Minority interest in
net income of
subsidiaries (1,706) (2,469) (3,266) (2,514)
Equity in earnings of
affiliates 227 248 335 435
----------- ----------- ----------- -----------
Income from continuing
operations 45,218 37,770 80,845 68,273

Discontinued operations:
Loss from operations
of discontinued
components - (1,008) (32,279) (448)
Income tax benefit - 195 12,911 5
----------- ----------- ----------- -----------
Loss from discontinued
operations - (813) (19,368) (443)
----------- ----------- ----------- -----------
Net income $ 45,218 $ 36,957 $ 61,477 $ 67,830
=========== =========== =========== ===========

Earnings from continuing
operations per share:
Basic $ 0.51 $ 0.43 $ 0.92 $ 0.79
=========== =========== =========== ===========
Diluted $ 0.50 $ 0.43 $ 0.90 $ 0.77
=========== =========== =========== ===========

Loss from discontinued
operations per share:
Basic $ - $ 0.00 $ (0.22) $ (0.01)
=========== =========== =========== ===========
Diluted $ - $ (0.01) $ (0.21) $ 0.00
=========== =========== =========== ===========

Earnings per share:
Basic $ 0.51 $ 0.43 $ 0.70 $ 0.78
=========== =========== =========== ===========
Diluted $ 0.50 $ 0.42 $ 0.69 $ 0.77
=========== =========== =========== ===========

Weighted-average common
shares outstanding:
Basic 88,381 86,927 87,713 86,818
=========== =========== =========== ===========
Diluted 89,823 88,154 89,344 88,196
=========== =========== =========== ===========

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)

July 1, December 31,
2006 2005
----------- ------------
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 138,334 $ 210,683
Available-for-sale securities 101,107 124,010
Accounts receivable, net of reserves of
$41,648 and $52,308 579,766 582,617
Inventories 551,552 505,542
Deferred income taxes 27,868 35,505
Prepaid expenses and other 124,113 126,052
----------- ------------
Total current assets 1,522,740 1,584,409
Property and equipment, net 209,876 190,746
Goodwill 717,734 626,869
Other intangibles, net 140,270 123,204
Investments and other 59,433 57,892
----------- ------------
Total assets $2,650,053 $ 2,583,120
=========== ============

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 351,566 $ 371,392
Bank credit lines 2,262 2,093
Current maturities of long-term debt 31,182 33,013
Accrued expenses:
Payroll and related 87,538 96,113
Taxes 41,414 65,070
Other 158,122 156,433
----------- ------------
Total current liabilities 672,084 724,114
Long-term debt 486,014 489,520
Deferred income taxes 60,282 54,432
Other liabilities 59,572 53,547

Minority interest 17,253 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, 88,160,672 outstanding
on July 1, 2006 and 87,092,238 outstanding
on December 31, 2005 882 871
Additional paid-in capital 593,120 559,266
Retained earnings 716,100 667,958
Accumulated other comprehensive income 44,746 21,059
----------- ------------
Total stockholders' equity 1,354,848 1,249,154
----------- ------------
Total liabilities and stockholders'
equity $2,650,053 $ 2,583,120
=========== ============

Note: Certain prior period amounts have been restated to reflect the
effects of our adoption of FAS 123(R) using the modified retrospective
application and our reclassification of variable rate demand notes
from 'cash and cash equivalents' to 'available-for-sale securities'.
Also, included in the prior period amounts 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 on April 1, 2006.



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

Three Months Ended Six Months Ended
------------------- --------------------
July 1, June 25, July 1, June 25,
2006 2005 2006 2005
--------- --------- ---------- ---------

Cash flows from operating
activities:
Net income $ 45,218 $ 36,957 $ 61,477 $ 67,830
Adjustments to reconcile
net income to net cash
provided by operating
activities:
Loss on sale of
discontinued operation,
net of tax - - 19,363 -
Depreciation and
amortization 15,806 15,111 30,158 28,348
Stock-based compensation
expense 5,517 4,796 9,374 8,536
Provision for (recovery
of) losses on trade and
other accounts
receivable 561 158 679 (50)
Provision (benefit) for
deferred income taxes 959 (153) 5,937 1,485
Undistributed earnings of
affiliates (227) (248) (335) (435)
Minority interest in net
income of subsidiaries 1,706 2,469 3,266 2,514
Other 701 (1,079) (412) 10
Changes in operating
assets and liabilities,
net of acquisitions:
Accounts receivable (7,622) (19,500) (3,023) (5,066)
Inventories (19,274) 12,653 (31,755) 21,263
Other current assets 5,003 (1,351) 8,146 28,557
Accounts payable and
accrued expenses (9,731) 35,521 (102,258) (85,835)
--------- --------- ---------- ---------
Net cash provided by
operating activities 38,617 85,334 617 67,157
--------- --------- ---------- ---------

Cash flows from investing
activities:
Purchases of fixed assets (21,486) (13,895) (32,654) (22,033)
Payments for business
acquisitions, net of cash
acquired (32,475) (15,706) (105,187) (54,752)
Cash received from business
divestiture 36,527 - 36,527 -
Purchases of available-for-
sale securities (62,919) - (147,340) -
Proceeds from sales of
available-for-sale
securities 61,930 - 168,961 -
Proceeds from maturities of
available-for-sale
securities 1,200 - 1,280 -
Net proceeds from (payments
for) foreign exchange
forward contract
settlements (13,644) 19,993 (14,805) 15,515
Other (26) 415 165 (1,887)
--------- --------- ---------- ---------
Net cash used in investing
activities (30,893) (9,193) (93,053) (63,157)
--------- --------- ---------- ---------

Cash flows from financing
activities:
Net payments on bank
borrowings (1,223) (1,599) - (1,416)
Principal payments for
long-term debt (3,830) (1,869) (6,475) (2,565)
Payments for establishing a
new credit facility - (650) - (650)
Proceeds from issuance of
stock upon exercise of
stock options 8,492 8,109 25,600 19,053
Payments for repurchases of
common stock (23,439) (4,699) (23,439) (21,009)
Proceeds from excess tax
benefits related to stock-
based compensation 2,863 2,576 9,788 5,458
Other 2,235 (158) 2,049 (559)
--------- --------- ---------- ---------
Net cash provided by (used
in) financing activities (14,902) 1,710 7,523 (1,688)
--------- --------- ---------- ---------

Net change in cash and cash
equivalents (7,178) 77,851 (84,913) 2,312
Effect of exchange rate
changes on cash and cash
equivalents 6,767 (5,484) 12,564 (1,825)
Cash and cash equivalents,
beginning of period 138,745 114,741 210,683 186,621
--------- --------- ---------- ---------
Cash and cash equivalents,
end of period $138,334 $187,108 $ 138,334 $187,108
========= ========= ========== =========

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. Additionally, for the three and six months ended July 1,
2006 we reflected the effects of a reclassification of variable rate
demand notes from 'cash and cash equivalents' to 'available-for-sale
securities' retrospective to December 31, 2005.



Exhibit A

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


Q2 2006 over Q2 2005
--------------------


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

Internal 5.9% 9.3% 3.3% 3.6% 3.1%

Acquisitions, net
of divestiture 4.4% 0.1% 11.0% 4.5% -
------------ ------ ------- ------------- ----------

Local Currency
Sales Growth 10.3% 9.4% 14.3% 8.1% 3.1%

Foreign Currency
Exchange 0.2% 1.4% - -1.2% 0.6%
------------ ------ ------- ------------- ----------

Total Sales
Growth 10.5% 10.8% 14.3% 6.9% 3.7%
============ ====== ======= ============= ==========



Q2 YTD 2006 over Q2 YTD 2005
----------------------------


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

Internal 7.1% 9.2% 4.3% 7.0% 5.6%

Acquisitions, net
of divestiture 3.8% 0.4% 6.2% 6.8% -
------------ ------ ------- ------------- ----------

Local Currency
Sales Growth 10.9% 9.6% 10.5% 13.8% 5.6%

Foreign Currency
Exchange -1.0% 1.0% - -5.2% 0.4%
------------ ------ ------- ------------- ----------

Total Sales
Growth 9.9% 10.6% 10.5% 8.6% 6.0%
============ ====== ======= ============= ==========