Johnson & Johnson Reports First Quarter Increases in Sales and Net Earnings

New Brunswick, NJ (April 16, 2002) -- Johnson & Johnson today announced sales of $8.7 billion and net earnings of $1.8 billion for the first quarter of 2002, increases of 11.3% and 18.2%, respectively, over first quarter 2001 results. Diluted earnings per share for the first quarter were $.59, up 18.0% from the same period in 2001. Excluding the impact of negative currency, worldwide sales increased 13.4%. Domestic sales were up 17.1%, while international sales increased 8.0% on an operational basis.

“I am particularly pleased with the ongoing strength of our Pharmaceutical business and the broad-based growth in the Medical Devices and Diagnostics segment,”said Ralph S. Larsen, Chairman and Chief Executive Officer.

Worldwide Pharmaceutical sales of $4.2 billion for the quarter resulted in an operational increase of 21.3% over the same period in 2001. Domestic sales increased 25.6%. International sales increased operationally 12.6% but were partially offset by a negative currency impact of 4.7%. Worldwide reported sales growth including a 1.5% negative currency impact was 19.8%.

Sales growth reflects the strong performance of PROCRIT/EPREX, for the treatment of anemia; RISPERDAL, an antipsychotic medication; DURAGESIC, a transdermal patch for chronic pain; REMICADE, a treatment for rheumatoid arthritis and Crohn’s disease; TOPAMAX, an antiepileptic, and ACIPHEX/PARIET, a proton pump inhibitor for gastrointestinal disorders.

During the quarter, the Company received U.S. Food and Drug Administration (FDA) approval for RISPERDAL for the additional indication of delaying relapse in the long-term treatment of schizophrenia. Clinical trials demonstrate that RISPERDAL significantly reduces the risk of relapse as compared to , a conventional antipsychotic previously considered to be the “standard”for treatment of psychosis. The Company also received FDA approval for REMICADE for improvement in physical function in patients with rheumatoid arthritis.

In February, the Medicines Control Agency (MCA) in the approved CONCERTA XL, a once-daily treatment for attention deficit hyperactivity disorder. The UK will serve as the reference member state for the mutual recognition of CONCERTA XL in the European Union.

In March, the Company announced a definitive agreement to acquire -Virco NV, a privately-held biopharmaceutical company focused on developing anti-viral treatments. The acquisition, valued at approximately $320 million in cash and debt, will expand drug discovery and development capabilities, particularly in the field of anti-viral therapies. The Company expects to incur a one-time charge of approximately $145 million, or $0.05 per share, upon closing of the transaction, reflecting the write- off of in-process research & development costs.

Worldwide sales for the Medical Devices and Diagnostics segment were $3.0 billion in the first quarter of 2002, which represented an increase of 11.1% in local currency as compared to the same period in 2001. Domestic sales were up 13.7%, while international sales increased 7.9% on an operational basis. Worldwide sales growth including the negative impact of currency was reported at 8.2%. Strong sales growth from Cordis’ circulatory disease management products; DePuy’s orthopaedic joint reconstruction and spinal products; LifeScan’s blood monitoring products; Endo-Surgery’s minimally invasive surgical products and Vistakon’s disposable contact lenses were the primary contributors to the Medical Devices and Diagnostics segment growth.

On April 15, 2002 the Company announced that it received CE Mark approval in Europe for its CYPHER Sirolimus-eluting Stent for treatment of de novo coronary artery lesions. In clinical trials, the CYPHER Sirolimus-eluting Stent demonstrated maintenance of zero restenosis (no reblockage) and sustainability of a low incidence of major adverse cardiac events (MACE) through one year follow-up in the pivotal European trial.

During the quarter, LifeScan and Novo Nordisk A/S launched the INDUO System, a state-of-the art combined blood glucose monitor and insulin doser for people with diabetes. The INDUO System offers insulin users a more convenient approach to informed dosing decisions with the benefit of blood glucose tests.

Worldwide Consumer sales for the first quarter of 2002 were $1.6 billion, an operational increase of 0.6% versus the same period a year ago. Domestic sales increased by 0.4%. International sales gains in local currency of 0.9% were offset by negative currency, resulting in a reported worldwide sales decline of 1.7%. Consumer sales experienced solid growth in and skin care products, the JOHNSON’S line of baby skin care products and McNeil Nutritional’s sweetener products.

Johnson & Johnson, with approximately 104,500 employees, is the world’s most comprehensive and broadly based manufacturer of health care products, as well as a provider of related services, for the consumer, pharmaceutical and medical devices and diagnostics markets. Johnson & Johnson has 197 operating companies in 54 countries around the world, selling products in more than 175 countries.

NOTE TO INVESTORS

Johnson & Johnson will conduct a conference call with financial analysts to discuss this news release today at 8:30 a.m., Eastern Standard Time. A simultaneous webcast of the call for interested investors and others may be accessed by visiting the Homepage of this Web site and clicking on the microphone. A replay of the webcast will be available two hours after the live webcast concludes. The replay can be accessed by clicking Webcast Archives in the Investor Relations section of the company's Web site.

(This press release contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or unknown risks or uncertainties materialize, actual results could vary materially from the Company's expectations and projections. Risks and uncertainties include general industry conditions and competition; economic conditions, such as interest rate and currency exchange rate fluctuations; technological advances and patents attained by competitors; challenges inherent in new product development, including obtaining regulatory approvals; domestic and foreign health care reforms and governmental laws and regulations; and trends toward health care cost containment. A further list and description of these risks, uncertainties and other factors can be found in Exhibit 99(b) of the Company's Annual Report on Form 10-K for the fiscal year ended December 30, 2001. Copies of this Form 10-K are available online www.sec.gov or on request from the Company. The Company assumes no obligation to update any forward-looking statements as a result of new information or future events or developments.)

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