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RATING RESEARCH DOWNGRADES BRISTOL-MYERS SQUIBB’S REPUTATION RATING

BMS Assigned a Medium-Quality BBB Rating in Second Annual Industry Study

Bedminster, N.J. (4 June 2003) — Bristol-Myers Squibb Company’s Reputation Strength Rating was downgraded this year to a medium-quality BBB reputation rating from an upper-medium quality A rating last year, according to Rating Research LLC (RRC), the leading reputation rating agency. The complete list of reputation strength ratings of the 19 companies included in this year’s study of the pharmaceutical industry is scheduled to be released on Friday, June 6th .

“BMS’s downgrade reflects the ongoing problems the company has faced over the past year,” said Dory Gasorek, Principal and Rating Committee Chair of RRC. “The underwhelming performance of its anti-hypertension agent Vanlev, the company’s questionable patent protection strategies, and concerns over its wholesaler inventory practices, among other factors, contributed to the downgrade.”

The RRC Reputation Strength Study of the pharmaceutical industry included in-depth telephone interviews with senior industry executives and financial analysts conducted during the time period January – March 2003. A cover story in the June 2003 issue of Pharmaceutical Executive will focus on highlights of the study.

Roche Earns Most-Improved

While BMS lost ground from a reputation perspective, Roche Holding AG performed significantly better in this year’s study than last year’s, although it maintains its BBB reputation strength rating. Last year Roche’s overall reputation scores ranked it 11th out of 16 surveyed companies; this year it is12th out of 19 companies. The company displayed significant improvement on reputation components such as “being customer-focused” and “being open and honest with the public”, among other factors.

“Although it may take time, comments of respondents indicate that Roche may be positioning itself for a turnaround in business and reputation performance,” notes Ms. Gasorek. “The sale of its vitamin and fine chemicals division, coupled with the potential synergy between its pharmaceutical and diagnostic divisions, have been favorably perceived.”

At the same time, financial analysts are generally less enthusiastic than their executive counterparts. “Responses indicate that Roche may need to adopt a more American versus Swiss style in its communications with this audience,” said Ms. Gasorek.

The Pharmaceutical Reputation Strength Study, providing the findings and analysis that support the ratings, is sold to analysts, investors, regulators, rated companies and other interested parties.

RRC, a joint venture between The Ratrix Group and Opinion Research Corporation (NASDAQ), assigns Reputation Strength Ratings and Ethics Reputation Ratings to leading companies and publishes those rating opinions as a public service.

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For more information on RRC’s Corporate Reputation Ratings contact Jane Barr.