Pfizer Achieves Key 2006 Financial Targets

Full-Year 2006 Pfizer Revenues Grew 2 Percent to $48.4 Billion, Key Products Substantially Attained Targets, Nine Exceeded $1 Billion in Sales

- Full-Year 2006 Reported Diluted EPS Increased to $2.66, Which Included Significant Gain From Sale of Consumer Healthcare Business; Full-Year 2006 Adjusted Diluted EPS(1) Grew 6 Percent to $2.06

- During Quarter, Pfizer Submitted U.S. Regulatory Filings for Lyrica for Fibromyalgia and for Maraviroc, Four Product Candidates Entered Phase 3 Testing

Pfizer Inc today announced that revenues for full-year 2006 increased 2 percent, reported diluted EPS grew 144 percent, and adjusted diluted EPS(1) grew 6 percent versus 2005. Revenues in the fourth quarter of 2006 were substantially unchanged, reported diluted EPS grew 257 percent, and adjusted diluted EPS(1) decreased 12 percent versus the comparable quarter in 2005.

"In the face of many challenges in 2006, we substantially achieved a number of financial targets that we set early in the year," said Pfizer Chairman and Chief Executive Officer Jeffrey B. Kindler. "We took decisive action and delivered solid performance despite challenges, including the significant revenue impact due to the loss of exclusivity of Zithromax and Zoloft in the U.S. We achieved revenue growth of 2 percent for the year. We delivered adjusted diluted EPS(1) of $2.06, in line with our upwardly revised guidance.

"While we attained nearly all of our financial targets for the year, we continue to face a difficult operating environment, including competitive challenges and the risks inherent in drug development. Our decision to discontinue development of torcetrapib/atorvastatin in early December 2006 was disappointing and brought into sharper focus the need to transform Pfizer over time to succeed in a dynamic healthcare marketplace. We are reviewing every aspect of our business, and I look forward to discussing our priorities when we meet with analysts in New York later today," Mr. Kindler concluded.

"During the fourth quarter of 2006, we strengthened our commitment to enhancing total return to shareholders," said Vice Chairman David Shedlarz. "We completed the divestiture of the Consumer Healthcare business in the quarter, receiving approximately $16.6 billion in proceeds. Combined with projected strong cash flow from operations over the next several years, these proceeds will be used to make key investments in new products and technologies and to support a strong dividend and an active share purchase program.

"In December 2006, Pfizer announced a 21-percent increase in its first- quarter 2007 dividend to 29 cents per share. This significant increase builds on a 26-percent dividend increase in 2006. Pfizer has now increased its dividend every year for 40 consecutive years, and in the past 10 years the company's dividend has increased on average 18 percent per year. The company also continued its substantial share purchase program by buying $2.5 billion of its common stock in the fourth quarter of 2006. Pfizer purchased $7.0 billion of common stock during 2006. During the past five years, Pfizer has purchased more than $35 billion of its common stock." - Pfizer

Teaser

Full-Year 2006 Pfizer Revenues Grew 2 Percent to $48.4 Billion, Key Products Substantially Attained Targets, Nine Exceeded $1 Billion in Sales

Body Text

- Full-Year 2006 Reported Diluted EPS Increased to $2.66, Which Included Significant Gain From Sale of Consumer Healthcare Business; Full-Year 2006 Adjusted Diluted EPS(1) Grew 6 Percent to $2.06

- During Quarter, Pfizer Submitted U.S. Regulatory Filings for Lyrica for Fibromyalgia and for Maraviroc, Four Product Candidates Entered Phase 3 Testing

Pfizer Inc today announced that revenues for full-year 2006 increased 2 percent, reported diluted EPS grew 144 percent, and adjusted diluted EPS(1) grew 6 percent versus 2005. Revenues in the fourth quarter of 2006 were substantially unchanged, reported diluted EPS grew 257 percent, and adjusted diluted EPS(1) decreased 12 percent versus the comparable quarter in 2005.

"In the face of many challenges in 2006, we substantially achieved a number of financial targets that we set early in the year," said Pfizer Chairman and Chief Executive Officer Jeffrey B. Kindler. "We took decisive action and delivered solid performance despite challenges, including the significant revenue impact due to the loss of exclusivity of Zithromax and Zoloft in the U.S. We achieved revenue growth of 2 percent for the year. We delivered adjusted diluted EPS(1) of $2.06, in line with our upwardly revised guidance.

"While we attained nearly all of our financial targets for the year, we continue to face a difficult operating environment, including competitive challenges and the risks inherent in drug development. Our decision to discontinue development of torcetrapib/atorvastatin in early December 2006 was disappointing and brought into sharper focus the need to transform Pfizer over time to succeed in a dynamic healthcare marketplace. We are reviewing every aspect of our business, and I look forward to discussing our priorities when we meet with analysts in New York later today," Mr. Kindler concluded.

"During the fourth quarter of 2006, we strengthened our commitment to enhancing total return to shareholders," said Vice Chairman David Shedlarz. "We completed the divestiture of the Consumer Healthcare business in the quarter, receiving approximately $16.6 billion in proceeds. Combined with projected strong cash flow from operations over the next several years, these proceeds will be used to make key investments in new products and technologies and to support a strong dividend and an active share purchase program.

"In December 2006, Pfizer announced a 21-percent increase in its first- quarter 2007 dividend to 29 cents per share. This significant increase builds on a 26-percent dividend increase in 2006. Pfizer has now increased its dividend every year for 40 consecutive years, and in the past 10 years the company's dividend has increased on average 18 percent per year. The company also continued its substantial share purchase program by buying $2.5 billion of its common stock in the fourth quarter of 2006. Pfizer purchased $7.0 billion of common stock during 2006. During the past five years, Pfizer has purchased more than $35 billion of its common stock." - Pfizer