Alcon's Fourth Quarter Sales Rise 10.7 Percent

Alcon, Inc. (NYSE:ACL) reported global sales of $1,054.9million for the fourth quarter of 2005, an increase of 10.7 percentover global sales in the fourth quarter of 2004, or 13.0 percentexcluding the impact of foreign exchange fluctuations. In the fourthquarter of 2005, Alcon accrued an after-tax charge of $196.7 million,or $0.63 per share on a diluted basis, associated with an unfavorablelower court judgment in a patent lawsuit. In addition, the companyaccrued estimated after-tax costs of $11.0 million, or $0.04 per shareon a diluted basis, related to damages to its United Kingdom facilityarising from a major explosion at an adjacent oil storage depot.Including these charges, reported net earnings for the fourth quarterof 2005 were $60.7 million, or $0.19 per share on a diluted basis,compared to 2004 net earnings of $187.3 million, or $0.60 cents pershare on a diluted basis. Excluding these items, adjusted net earningsfor the fourth quarter of 2005 increased 43.3 percent to $268.4million, or $0.86 per share on a diluted basis.

For the full year, Alcon reported global sales of $4,368.5million, an increase of 11.6 percent over 2004 global sales of$3,913.6 million, or 10.5 percent excluding the impact of foreignexchange fluctuations. Reported net earnings and earnings per share in2005 and 2004 included the impact of the above referenced patentjudgment and United Kingdom facility damage in 2005, and an after-taxbenefit of $57.6 million, or $0.18 per share on a diluted basis,related to realization of past research and development credits andthe resolution of several significant tax audit issues in 2004.Including these items, reported net earnings for the full year 2005were $931.0 million, or $2.98 per share on a diluted basis, comparedto $871.8 million in 2004, or $2.80 per share on a diluted basis.Excluding these items, adjusted net earnings for the full year 2005increased 39.9 percent to $1,138.7 million, or $3.65 per share on adiluted basis, compared to adjusted net earnings of $814.2 million or$2.62 per share in 2004.

"Our fourth quarter and full year sales came in above expectationson a reported and constant currency basis. This performancedemonstrates the capability of our sales and marketing organization toexecute our global plans and drive broad-based growth of our portfolioof leading-edge eye care products. While our reported earnings werenegatively affected by two unexpected events, our underlyingperformance was reflective of higher gross margins, carefully managedspending and a lower tax rate," said Cary Rayment, Alcon's chairman,president and chief executive officer.

Fourth Quarter Sales Highlights

Highlights of sales for the fourth quarter of 2005 are providedbelow. Unless otherwise noted, all comparisons are versus the fourthquarter of 2004.

-- U.S. sales grew 13.8 percent to $518.8 million, accounting for 49.2 percent of total sales.

-- International sales grew 7.9 percent to $536.1 million, accounting for 50.8 percent of total sales. Excluding the impact of foreign exchange fluctuations, International sales grew 12.2 percent.

-- Pharmaceutical sales grew 14.1 percent to $395.3 million and contributed 37.5 percent of total sales.

-- Sales of glaucoma products increased 19.7 percent, led by a 37.8 percent rise in sales of Travatan(R) ophthalmic solution. In the U.S., Travatan(R) increased its share of the prostaglandin market by 3.0 percentage points in 2005, making it the fastest growing glaucoma product in the U.S., while it also continued to build share in many other markets outside the U.S.

-- Sales of infection/inflammation products rose 13.6 percent led by increased sales of Vigamox(R) ophthalmic solution and the rapid market share gains of Nevanac(TM) ophthalmic suspension during the fourth quarter of 2005. Vigamox(R) is the leading ocular anti-infective in the U.S. with a 45.1 percent share of the fluoroquinolone category for the full year. In December 2005, only four months after its launch, Nevanac(TM) had garnered 19.4 percent of the U.S. non-steroidal anti-inflammatory market.

-- Sales of allergy products, including Patanol(R) ophthalmic solution, rose 18.3 percent. Patanol(R) maintained its number one share position in the U.S., accounting for 66.3 percent of total ocular allergy prescriptions in 2005.

-- Sales growth of otic products softened to 4.3 percent, primarily due to fluctuations in wholesaler inventories between periods. The otic franchise, including Ciprodex(R) and Cipro(R) HC otic suspensions, gained 3.4 percentage points of market share in the U.S. in 2005 to reach 31.3 percent.

-- Surgical sales rose 10.7 percent to $523.5 million, accounting for 49.6 percent of total sales.

-- Sales of intraocular lenses increased 18.3 percent to $182.4 million. Sales growth was attributable to the rapid growth in sales of AcrySof(R) ReSTOR(R) intraocular lenses, continued conversion to single-piece intraocular lenses in general and to AcrySof(R) Natural IQ lenses specifically. Global sales of AcrySof(R) ReSTOR(R) lenses in the fourth quarter of 2005 were $25.6 million and $54.2 million for the full year.

-- Sales of cataract and vitrectomy products rose 7.9 percent, with sales of vitreoretinal surgical products, cataract removal systems and cataract procedure packs being key drivers of growth in this sector.

-- Refractive revenue declined 11.0 percent due to decreases in global equipment sales and procedure fees.

-- Consumer eye care sales increased 2.2 percent to $136.1 million, accounting for 12.9 percent of total sales.

-- Sales of contact lens disinfectants declined 2.6 percent due to a flat overall market, increased competition that led to reduced sales in some markets and the continuing decline of older lens cleaning products.

-- Sales of artificial tears increased 13.1 percent as Systane(R) lubricant eye drops continued to grow in global markets and as new versions of the product were introduced in markets around the world.

Fourth Quarter Earnings Highlights

Highlights of earnings for the fourth quarter of 2005 are providedbelow. Unless otherwise noted, all comparisons are fourth quarter of2005 versus fourth quarter of 2004.

-- Gross profit margin increased 4.0 percentage points to 75.8 percent of sales, primarily due to reduced royalty expense as a result of two royalty buyouts, favorable product mix trends and manufacturing efficiencies.

-- SG&A expense, including the patent judgment and the UK facility damage, rose to 55.5 percent of sales. Excluding these items, SG&A declined from 34.0 percent of sales to 32.3 percent of sales, as the company exercised good cost control and took advantage of its global operating infrastructure.

-- As a percent of sales, R&D expenses declined slightly to 11.3 percent of sales compared to 11.4 percent of sales. R&D expenses were broadly spread across projects in all therapeutic areas.

-- Including the patent judgment and UK facility damage, operating income declined to $73.4 million compared to $230.5 million. Excluding these items, operating income increased 39.7 percent to $322.1 million, or 30.5 percent of sales, primarily due to higher gross margins.

-- The reported effective tax rate for the full years 2005 and 2004 was 22.6 percent. Both years' rates reflect the resumption of funding a portion of research and development expenses in the U.S., settlements of several tax audits and adjustments to tax estimates.

New Product and R&D Pipeline Update

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

-- The FDA approved the AcrySof(R) Natural Toric intraocular lens, which is the blue light filtering model of the previously approved AcrySof(R) Toric lens for correcting astigmatism. The company plans to launch this lens in the U.S. in March of 2006. In addition, the company has commenced a controlled launch in Japan of its AcrySert(R) device, which is a lens insertion device pre-loaded with an AcrySof(R) lens.

-- The OZil(TM) torsional handpiece was added to the Infiniti(R) vision system as a fourth modality for cataract surgery. This innovative technology employs ultrasonic torsional oscillations of the tip to more efficiently emulsify and remove cataracts.

-- The company entered into a collaboration agreement with Kalypsys, Inc. with the objective of discovering ophthalmic drug candidates for development and commercialization.

-- The company was advised by the U.S. Food and Drug Administration (FDA) in October that it would have to reformulate Patanase(R) nasal spray to gain approval of the product. In January of 2006, the company met with the FDA to review plans for testing the new formula and has determined generation of the new data likely will lead to a re-filing during the second half of 2007.

-- In December, the company met with the FDA to review additional information the FDA had requested regarding the company's RETAANE(R) 15mg suspension submission for the treatment of age-related macular degeneration (AMD). Alcon is waiting for the agency's response to the information presented at that meeting and is continuing to pursue approvals in other countries outside of the U.S. The company may have to perform additional clinical studies to gain approval in some markets where it is under review.

-- Approval of RETAANE(R) suspension was received in Australia, and the company is currently negotiating with the regulatory authorities to determine reimbursement.

-- The two AMD risk reduction clinical trials on RETAANE(R) suspension completed combined enrollment of more than 2,500 patients. These studies are expected to last four years and are designed to determine if RETAANE(R) suspension can reduce the conversion rate from dry to wet AMD.

-- Clinical results from the latest clinical study of 15(s)HETE did not show statistical significance of the active ingredient versus the placebo. The company is evaluating clinical study designs to test the drug in specific subgroups of dry eye patients where the clinical benefit may be more evident.

-- The company received U.S. approval of the Travatan(R) Dosing Aid, which is designed to facilitate patient compliance and to allow doctors to better monitor compliance. While it is not expected to generate direct sales revenue, the device is expected to support increased sales of Travatan(R) ophthalmic solution.

-- The company commenced launches of three new consumer products - Systane(R) Free lubricant eye drops for dry eyes, ICAPS(R) MV multi-vitamin and OPTI-FREE(R) RepleniSH(R) multi-purpose disinfecting solution for contact lenses.

Financial Guidance

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

-- Total sales are expected to be between $4,750 million and $4,800 million.

-- Sales of ReSTOR(R) intraocular lenses are expected to be between $150 and $170 million.

-- Diluted earnings per share are expected to be between $3.98 and $4.07 on a reported basis or between $4.18 and $4.27 excluding stock option expense resulting from the adoption of FAS 123R.

-- Approximately 45 percent of stock option expense will be accrued in the first quarter, with the remaining 55 percent spread evenly through the remaining three quarters.

Other Items

-- Alcon's board of directors will propose to shareholders a dividend of 1.68 Swiss francs per share. The proposal will be voted on at the company's Annual General Meeting for shareholders on May 2, 2006 in Zug, Switzerland.

-- Alcon's board of directors approved the repurchase of up to an additional 5.0 million shares of the company's outstanding common stock. Including prior authorizations, the company has authority to repurchase approximately 6.7 million shares.

-- The board of directors will propose to shareholders, at the May 2, 2006 Annual General Meeting, the cancellation of a portion of shares repurchased in 2006 and the corresponding reduction in the share capital of Alcon, Inc.

-- Approximately 4.9 million employee stock options vest on February 18, 2006.

-- Mr. Peter Brabeck-Letmathe advised the Alcon Board of Directors that he will not stand for re-election at the Annual General Meeting scheduled for May 2, 2006, and therefore will be stepping down from his position as director and vice chairman of Alcon, effective May 2, 2006. Mr. Brabeck-Letmathe has been a director of Alcon since its initial public offering in 2002 and has contributed greatly to Alcon's strategic business and financial direction over the past four years. Alcon extends its thanks and appreciation to Mr. Brabeck-Letmathe for his decisive support to the company's success since the IPO and for many years before that while Alcon was wholly-owned by Nestle, S.A.

-- Alcon's board of directors will propose to shareholders that Mr. Joe Weller, former Chairman and Chief Executive Officer of Nestle USA, be elected to a three-year term of office, effective May 2, 2006, replacing Mr. Peter Brabeck-Letmathe's position as a director of Alcon. Mr. Weller retired on January 31, 2006 from Nestle USA after 37 years of service to the Nestle Group including with the Carnation Company, Nestle Australia and Nestle USA.

-- Alcon's board of directors will propose to shareholders that Mr. Paul Polman be elected for a two-year term of office, effective May 2, 2006, replacing Mr. Wolfgang Reichenberger who resigned from his position as a director of Alcon, effective December 31, 2005 and whose term of office would have expired in 2008. Mr. Polman, formerly Group President of Procter & Gamble Europe, was appointed by the Board of Nestle S.A. to the position of Chief Financial Officer of Nestle, S.A. on January 1, 2006. Mr. Polman, a Dutch national, holds a degree in finance and a master's degree in business administration and had a very successful career with Procter & Gamble for 26 years prior to joining Nestle.

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, develops, manufactures andmarkets pharmaceuticals, surgical equipment and devices, contact lenscare solutions and other vision care products that treat diseases,disorders and other conditions of the eye. Alcon's majorityshareholder is Nestle, S.A., the world's largest food company. Alltrademarks noted in this release are the property of Alcon, Inc., withthe exception of Cipro(R) and Ciprodex(R), which are the property ofBayer AG and licensed to Alcon. Vigamox(R) is licensed to Alcon fromBayer AG.
ALCON, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Earnings (Unaudited)
(USD in millions, except share and per share data)

Three Months Ended Twelve Months Ended
December 31, December 31,
--------------------------- ---------------------------
2005 2004 2005 2004
------------- ------------- ------------- -------------

Sales $ 1,054.9 $ 952.7 $ 4,368.5 $ 3,913.6
Cost of goods
sold 255.7 269.0 1,078.4 1,081.6
------------- ------------- ------------- -------------

Gross profit 799.2 683.7 3,290.1 2,832.0

Selling, general
and
administrative 585.3 324.1 1,594.7 1,237.3
Research and
development 118.9 108.4 421.8 390.4
Amortization of
intangibles 21.6 20.7 85.7 72.5
------------- ------------- ------------- -------------

Operating
income 73.4 230.5 1,187.9 1,131.8

Other income
(expense):
Gain (loss)
from foreign
currency,
net (1.6) (0.4) 0.7 (2.2)
Interest
income 15.3 7.4 48.7 23.3
Interest
expense (10.6) (7.1) (38.8) (26.9)
Other, net 0.5 (0.2) 4.4 (0.3)
------------- ------------- ------------- -------------

Earnings
before
income taxes 77.0 230.2 1,202.9 1,125.7

Income taxes 16.3 42.9 271.9 253.9
------------- ------------- ------------- -------------

Net earnings $ 60.7 $ 187.3 $ 931.0 $ 871.8
============= ============= ============= =============


Basic earnings
per common
share $ 0.20 $ 0.61 $ 3.04 $ 2.85
============= ============= ============= =============

Diluted
earnings per
common share $ 0.19 $ 0.60 $ 2.98 $ 2.80
============= ============= ============= =============

Basic weighted
average common
shares 306,138,519 305,318,023 306,036,089 305,761,128
Diluted
weighted
average common
shares 312,505,431 310,534,995 311,903,177 310,837,194
ALCON, INC. AND SUBSIDIARIES
Global Sales
(USD in millions)

Three Months Ended %Change
December 31, %Foreign in
---------------- Currency Constant
2005 2004 %Change Change Currency
--------- ------ -------- -------- --------
GEOGRAPHIC SALES
United States:
Pharmaceutical $ 223.2 $195.2 14.3% -% 14.3%
Surgical 233.1 199.9 16.6 - 16.6
Consumer Eye Care 62.5 60.7 3.0 - 3.0
--------- ------

Total United States
Sales 518.8 455.8 13.8 - 13.8
--------- -------

International:
Pharmaceutical 172.1 151.4 13.7 (3.5) 17.2
Surgical 290.4 273.0 6.4 (5.2) 11.6
Consumer Eye Care 73.6 72.5 1.5 (2.4) 3.9
--------- -------

Total International
Sales 536.1 496.9 7.9 (4.3) 12.2
--------- -------

Total Global Sales $1,054.9 $952.7 10.7% (2.3)% 13.0%
========= =======

PRODUCT SALES
Infection/inflammation $ 149.7 $131.8 13.6%
Glaucoma 157.6 131.7 19.7
Allergy 62.1 52.5 18.3
Otic 33.9 32.5 4.3
Other
pharmaceuticals/rebates (8.0) (1.9) N/M
--------- -------

Total Pharmaceutical 395.3 346.6 14.1 (1.5)% 15.6%
--------- -------

Intraocular lenses 182.4 154.2 18.3
Cataract/vitreoretinal 328.1 304.1 7.9
Refractive 13.0 14.6 (11.0)
--------- -------

Total Surgical 523.5 472.9 10.7 (3.0) 13.7
--------- -------

Contact lens
disinfectants 67.2 69.0 (2.6)
Artificial tears 41.4 36.6 13.1
Other 27.5 27.6 (0.4)
--------- -------

Total Consumer Eye Care 136.1 133.2 2.2 (1.3) 3.5
--------- -------

Total Global Sales $1,054.9 $952.7 10.7% (2.3)% 13.0%
========= =======

N/M - Not Meaningful

Note: Percent Change in Constant Currency calculates sales growth
without the impact of foreign exchange fluctuations. Management
believes constant currency sales growth is an important measure of the
company's operations because it provides investors with a clearer
picture of the core rate of sales growth due to changes in unit
volumes and local currency prices.
ALCON, INC. AND SUBSIDIARIES
Global Sales
(USD in millions)

Twelve months ended %Change
December 31, %Foreign in
------------------- Currency Constant
2005 2004 %Change Change Currency
-------- -------- ------- ------- --------
GEOGRAPHIC SALES
United States:
Pharmaceutical $1,047.7 $941.3 11.3% -% 11.3%
Surgical 870.1 778.0 11.8 - 11.8
Consumer Eye Care 277.6 271.0 2.4 - 2.4
--------- ---------

Total United States Sales 2,195.4 1,990.3 10.3 - 10.3
--------- ---------

International:
Pharmaceutical 720.0 601.3 19.7 2.9 16.8
Surgical 1,146.8 1,036.4 10.7 1.7 9.0
Consumer Eye Care 306.3 285.6 7.2 2.9 4.3
--------- ---------

Total International Sales 2,173.1 1,923.3 13.0 2.2 10.8
--------- ---------

Total Global Sales $4,368.5 $3,913.6 11.6% 1.1% 10.5%
========= =========

PRODUCT SALES
Infection/inflammation $ 639.9 $ 572.7 11.7%
Glaucoma 621.4 526.3 18.1
Allergy 357.5 321.4 11.2
Otic 211.9 171.3 23.7
Other
pharmaceuticals/rebates (63.0) (49.1) N/M
--------- ---------

Total Pharmaceutical 1,767.7 1,542.6 14.6 1.1% 13.5%
--------- ---------

Intraocular lenses 676.3 583.9 15.8
Cataract/vitreoretinal 1,284.4 1,167.7 10.0
Refractive 56.2 62.8 (10.5)
--------- ---------

Total Surgical 2,016.9 1,814.4 11.2 1.0 10.2
--------- ---------

Contact lens disinfectants 296.7 298.9 (0.7)
Artificial tears 170.8 141.5 20.7
Other 116.4 116.2 0.2
--------- ---------

Total Consumer Eye Care 583.9 556.6 4.9 1.5 3.4
--------- ---------

Total Global Sales $4,368.5 $3,913.6 11.6% 1.1% 10.5%
========= =========

N/M - Not Meaningful

Note: Percent Change in Constant Currency calculates sales growth
without the impact of foreign exchange fluctuations. Management
believes constant currency sales growth is an important measure of the
company's operations because it provides investors with a clearer
picture of the core rate of sales growth due to changes in unit
volumes and local currency prices.
ALCON, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets (Unaudited)
(USD in millions)

Dec 31, Dec 31,
2005 2004
--------- ---------
Assets
Current assets:
Cash and cash equivalents $1,457.2 $1,093.4
Short term investments 377.7 138.2
Trade receivables, net 725.4 696.8
Inventories 427.2 455.2
Deferred income tax assets 178.9 176.1
Other current assets 101.6 84.4
--------- ---------

Total current assets 3,268.0 2,644.1

Long term investments 154.8 --
Property, plant and equipment, net 829.6 830.2
Intangible assets, net 293.7 329.3
Goodwill 550.0 549.2
Long term deferred income tax assets 77.5 66.4
Other assets 54.6 48.9
--------- ---------

Total assets $5,228.2 $4,468.1
========= =========

Liabilities and Shareholders' Equity

Current liabilities:
Accounts payable $ 156.0 $ 126.2
Short term borrowings 1,021.5 911.6
Current maturities of long term debt 5.9 4.5
Other current liabilities 1,095.1 835.1
--------- ---------

Total current liabilities 2,278.5 1,877.4
--------- ---------

Long term debt, net of current maturities 56.0 71.9
Long term deferred income tax liabilities 15.8 23.3
Other long term liabilities 321.8 307.6
Contingencies

Shareholders' equity:
Common shares 43.4 42.7
Additional paid-in capital 806.3 547.3
Accumulated other comprehensive income 90.9 225.4
Deferred compensation -- (2.6)
Retained earnings 2,282.3 1,653.6
Treasury shares, at cost (666.8) (278.5)
--------- ---------

Total shareholders' equity 2,556.1 2,187.9
--------- ---------

Total liabilities and shareholders'
equity $5,228.2 $4,468.1
========= =========
ALCON, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows (Unaudited)
(in millions)

Year ended December 31,
-----------------------
2005 2004
----------- ----------

Cash provided by operating activities:
Net cash from operating activities $ 1,235.0 $ 1,047.8
----------- ----------

Cash provided by (used in) investing
activities:
Purchases of property, plant and equipment (162.2) (146.2)
Purchases of intangible assets (43.2) (69.9)
Net purchases of available-for-sale
investments (180.6) (41.0)
Proceeds from sale of assets 3.7 1.6
----------- ----------

Net cash from investing activities (382.3) (255.5)
----------- ----------

Cash provided by (used in) financing
activities:
Net proceeds from (repayment of) short term
debt 123.9 (434.5)
Repayment of long term debt (16.1) (9.3)
Dividends on common shares (302.0) (169.4)
Proceeds from exercise of stock options 153.1 26.8
Acquisition of treasury shares (391.9) (236.3)
----------- ----------

Net cash from financing activities (433.0) (822.7)
----------- ----------

Effect of exchange rates on cash and cash
equivalents (55.9) 37.8
----------- ----------

Net increase (decrease) in cash and cash
equivalents 363.8 7.4

Cash and cash equivalents, beginning of period 1,093.4 1,086.0
----------- ----------

Cash and cash equivalents, end of period $ 1,457.2 $ 1,093.4
=========== ==========

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

Interest expense, net of amount
capitalized $ 37.8 $ 28.0
=========== ==========

Income taxes $ 157.4 $ 327.8
=========== ==========
ALCON, INC. AND SUBSIDIARIES
Reconciliation of Non-GAAP Disclosures (Unaudited)
(USD in Millions, except per share data)

Three Months ended December 31, 2005 (1)
-----------------------------------------
Non-GAAP Adjustments
-------------------- Non-GAAP
Reported AMO Suit Damages Adjusted
--------- -------- --------- --------

Sales $ 1,054.9 $ -- $ -- $1,054.9
Cost of goods sold 255.7 -- (3.2) 252.5
---------- --------- ---------- ---------

Gross profit 799.2 -- 3.2 802.4

Selling, general and
administrative 585.3 (240.0) (5.5) 339.8
Research and development 118.9 -- -- 118.9
Amortization of intangibles 21.6 -- -- 21.6
---------- --------- ---------- ---------

Operating income 73.4 240.0 8.7 322.1

Other income (expense):
Gain (loss) from foreign
currency, net (1.6) -- -- (1.6)
Interest income 15.3 -- -- 15.3
Interest expense (10.6) -- -- (10.6)
Other, net 0.5 -- -- 0.5
---------- --------- ---------- ---------

Earnings before income
taxes 77.0 240.0 8.7 325.7

Income taxes 16.3 43.3 (2.3) 57.3
---------- --------- ---------- ---------

Net earnings $ 60.7 $ 196.7 $ 11.0 $ 268.4
========== ========= ========== =========

Diluted earnings per common
share $ 0.19 $ 0.63 $ 0.04 $ 0.86
========== ========= ========== =========

Selected ratios as percent of
sales
-----------------------------

Selling, general and
administrative 55.5% (22.8)% (0.4)% 32.3%
Operating income 7.0 22.8 0.7 30.5

Other selected financial
ratios
-----------------------------
% Operating Income Growth (68.2) 39.7
% Net Income Growth (67.6) 43.3

(1) The adjusted items above related to an unfavorable court
judgment and damages to the company's United Kingdom facility. These
numbers are considered non-GAAP financial measures as defined by
Regulation G promulgated by the U.S. Securities and Exchange
Commission. Alcon presents these non-GAAP measures to improve the
comparability and consistency of financial results of Alcon's core
business activities and to enhance the overall understanding of
Alcon's performance and future prospects. Growth rates reflect
performance versus the same period in the prior year.
ALCON, INC. AND SUBSIDIARIES
Reconciliation of Non-GAAP Disclosures (Unaudited)
(USD in Millions, except per share data)

Year ended December 31, 2005(1)
---------------------------------------
Non-GAAP Adjustments
-------------------- Non-GAAP
Reported AMO Suit Damages Adjusted
-------- -------- --------- ---------

Sales $4,368.5 $ -- $ -- $4,368.5
Cost of goods sold 1,078.4 -- (3.2) 1,075.2
--------- -------- -------- ---------

Gross profit 3,290.1 -- 3.2 3,293.3

Selling, general and
administrative 1,594.7 (240.0) (5.5) 1,349.2
Research and development 421.8 -- -- 421.8
Amortization of intangibles 85.7 -- -- 85.7
--------- -------- -------- ---------

Operating income 1,187.9 240.0 8.7 1,436.6

Other income (expense):
Gain (loss) from foreign
currency, net 0.7 -- -- 0.7
Interest income 48.7 -- -- 48.7
Interest expense (38.8) -- -- (38.8)
Other, net 4.4 -- -- 4.4
--------- -------- -------- ---------

Earnings before income taxes 1,202.9 240.0 8.7 1,451.6

Income taxes 271.9 43.3 (2.3) 312.9
--------- -------- -------- ---------

Net earnings $ 931.0 $ 196.7 $ 11.0 $1,138.7
========= ======== ======== =========

Diluted earnings per common
share $ 2.98 $ 0.63 $ 0.04 $ 3.65
========= ======== ======== =========

Selected ratios as percent of
sales
------------------------------

Selling, general and
administrative 36.5% (5.5)% (0.1)% 30.9%
Operating income 27.2 5.5 0.2 32.9

Other selected financial ratios
-------------------------------
% Operating Income Growth 5.0 26.9
% Net Income Growth 6.8 39.9

(1) The adjusted items above related to an unfavorable court
judgment and damages to the company's United Kingdom facility in 2005
and non-GAAP adjusted growth rates also reflect the favorable impact
of recovery of past research and development credits and the
resolution of several significant tax audit issues in 2004. These
adjusted numbers are considered non-GAAP financial measures as defined
by Regulation G promulgated by the U.S. Securities and Exchange
Commission. Alcon presents these non-GAAP measures to improve the
comparability and consistency of financial results of Alcon's core
business activities and to enhance the overall understanding of
Alcon's performance and future prospects. Growth rates reflect
performance versus the same period in the prior year.
ALCON, INC. AND SUBSIDIARIES
Reconciliation of Non-GAAP Disclosures (Unaudited)
(USD in Millions, except per share data)

Year ended December 31, 2004 (1)
----------------------------------
Non-GAAP Non-GAAP
Reported Adjustment Adjusted
---------- ---------- ---------
----------- ----------- ----------

Earnings before income taxes $ 1,125.7 $ -- $ 1,125.7

Income taxes 253.9 57.6 311.5
----------- ----------- ----------

Net earnings $ 871.8 $ (57.6) $ 814.2
=========== =========== ==========

Diluted earnings per common share $ 2.80 $ (0.18) $ 2.62
=========== =========== ==========

(1) The adjusted item above related to the favorable impact of
filing amended federal income tax returns to claim research and
experimentation tax credits for prior years and to the resolution of
several significant tax audit issues is considered a non-GAAP
financial measure as defined by Regulation G promulgated by the U.S.
Securities and Exchange Commission. Alcon presents this non-GAAP
measure to improve the comparability and consistency of financial
results of Alcon's core business activities and to enhance the overall
understanding of Alcon's performance and future prospects.

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.