Alcon's Third Quarter Earnings Rise 52.2 Percent on 11.8 Percent Sales Growth

"Our third quarter results showed solid sales growth and continuedstrong improvement in gross margins as our sales mix shifted to higherprofit products," said Cary Rayment, Alcon's chairman, president andchief executive officer. "Our global brand teams and regionalmanagement continue to execute our key strategies to drive marketshare and increase sales of our featured brands. We also have beenable to manage our costs well and to capitalize on our globalinfrastructure to grow profits faster than sales."

Third Quarter Sales Highlights

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

-- U.S. sales grew 12.1 percent to $560.5 million, accounting for 52.3 percent of total sales.

-- International sales grew 11.4 percent to $510.6 million, accounting for 47.7 percent of total sales. Excluding the impact of foreign exchange fluctuations, International sales grew 8.7 percent.

-- Pharmaceutical sales grew 16.3 percent to $437.8 million and contributed 40.9 percent of total sales.

-- Sales of glaucoma products increased 13.6 percent, led by a 34.2 percent rise in sales of Travatan(R) ophthalmic solution. In the U.S., Travatan(R) solution has increased its share of the prostaglandin market 3.0 share points on a year-to-date (YTD) basis through August 2005 and continued to build share on a global basis.

-- Sales of infection/inflammation products rose 13.5 percent led by sales of Vigamox(R) ophthalmic solution and the launch of Nevanac(TM) ophthalmic suspension during the third quarter of 2005. Vigamox(R) solution is the leading ocular anti-infective in the U.S. with a 44.9 percent share of the fluoroquinolone category through August 2005 YTD.

-- Sales of allergy products, including Patanol(R) ophthalmic solution, rose 3.4 percent as the normal, seasonal reduction in wholesaler inventories had a greater impact in the third quarter of 2005. Patanol(R) solution has maintained its number one share position in the U.S., accounting for 67.0 percent of total ocular allergy prescriptions through August 2005 YTD.

-- Sales of otic products increased 38.4 percent, led by Ciprodex(R) otic suspension. The otic franchise, including Ciprodex(R) and Cipro(R) HC otic suspensions, increased 3.7 share points in the U.S. through August 2005 YTD, compared to August YTD 2004, to reach 31.4 percent.

-- Surgical sales rose 10.4 percent to $484.3 million, accounting for 45.2 percent of total sales.

-- Sales of intraocular lenses increased 18.2 percent to $165.0 million. Sales growth was attributable to market share gains, the launch of the AcrySof(R) ReSTOR(R) intraocular lens, continued conversion to single-piece intraocular lenses in general and the AcrySof(R) Natural lens specifically. Global sales of the AcrySof(R) ReSTOR(R) lens in the third quarter of 2005 and September 2005 YTD were $17.5 million and $27.9 million, respectively.

-- Sales of cataract and vitrectomy products rose 8.9 percent, with sales of vitreoretinal surgical products, cataract removal systems and cataract procedure paks being key drivers of growth in this sector.

-- Refractive revenue declined 29.1 percent due to a decrease in global equipment sales and procedures.

-- Consumer eye care sales increased 4.1 percent to $149.0 million, accounting for 13.9 percent of total sales.

-- Sales of contact lens disinfectants declined 1.5 percent as growth from Opti-Free(R) Express(R) contact lens disinfectant did not offset declines in older disinfecting solutions.

-- Sales of artificial tears products increased 15.6 percent as Systane(R) lubricant eye drops continued to gain global market share.

Third Quarter Earnings Highlights

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

-- Gross profit margin increased 2.9 percentage points to 77.0 percent of sales, primarily due to manufacturing efficiencies, product mix and reduced royalty expense.

-- As a percent of sales, SG&A expenses decreased to 30.9 percent from 32.4 percent of sales. The company continued to exercise good cost control by taking advantage of its global operating infrastructure.

-- As a percent of sales, R&D expenses decreased to 9.7 percent from 10.6 percent of sales due to prior year expenses associated with a license agreement executed in the third quarter of 2004.

-- Led primarily by increased gross margins, operating income increased 32.8 percent to $367.9 million, or 34.3 percent of sales, from 28.9 percent of sales.

-- The company's nine month effective tax rate was 22.7 percent. This represents a decline in the effective tax rate of 5.0 percentage points compared to the 2004 full year adjusted tax rate of 27.7 percent. The reduction in the effective tax rate was primarily due to the resumption of funding a portion of research and development expenses in the U.S. and favorable mix between tax jurisdictions. The 2004 full year adjusted effective tax rate includes non-GAAP adjustments reconciled in the table below. The reported effective tax rate for the full year 2004 was 22.6 percent.

Third Quarter Research and Development Update

Summarized below are updates on key research and developmentactivities.

-- The company received approval from the U.S. Food and Drug Administration (FDA) for Nevanac(TM) ophthalmic suspension for the treatment of pain and inflammation associated with cataract surgery.

-- The company received approval from the FDA for the AcrySof(R) ReSTOR(R) Natural intraocular lens. The lens contains a blue-light absorbing chromophore and is designed for cataract patients with and without presbyopia.

-- The company received approval from the FDA for the AcrySof(R) Toric intraocular lens for use in cataract patients with pre-existing corneal astigmatism. The company is pursuing approval of the lens with a blue-light absorbing chromophore and plans to launch the lens in the spring of 2006.

-- The company received clearance from the FDA to market Opti-Free(R) RepleniSH(TM) multi-purpose disinfecting solution for soft contact lenses and expects full commercial launch in the first quarter of 2006.

-- The company received approval for its Travoprost plus Timolol Fixed Combination glaucoma treatment in Australia.

-- The company launched ICaps(R) MV dietary supplement, a next generation ocular supplement that provides an advanced ocular nutrition formula and a complete multivitamin in one formula.

-- The company has enrolled more than 2,100 patients in the two risk reduction clinical trials on RETAANE(R) suspension. The company expects to enroll the full complement of 2,500 patients for the trials by the end of 2005. Once fully enrolled, these studies are expected to last four years.

-- During October 2005, the company presented 24 month data on RETAANE(R) suspension. The results confirmed the safety of the drug after two years of administration, which was the purpose of the 24 month analysis. The company is continuing its discussions with the FDA and other international regulatory bodies regarding approval of the drug.

Financial Guidance

-- Sales for the full year 2005 are expected to be between $4,350 million and $4,400 million.

-- Diluted earnings per share for the full year 2005 are expected to be between $3.58 and $3.60.

-- Guidance for sales of the AcrySof(R) ReSTOR(R) lens remains unchanged.

Company Description

Alcon, Inc. is the world's leading eye care company, with sales of$3.9 billion in 2004. 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) solution is licensed toAlcon, Inc. by Bayer AG.
ALCON, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Earnings (Unaudited)
(USD in millions, except share and per share data)

Three Months Ended Nine Months Ended
September 30, September 30,
------------------------- -------------------------
2005 2004 2005 2004
------------ ------------ ------------ ------------

Sales $1,071.1 $958.1 $3,313.6 $2,960.9
Cost of goods sold 246.4 248.6 822.7 812.6
------------ ------------ ------------ ------------

Gross profit 824.7 709.5 2,490.9 2,148.3

Selling, general
and
administrative 331.1 310.1 1,009.4 913.2
Research and
development 103.6 101.8 302.9 282.0
Amortization of
intangibles 22.1 20.6 64.1 51.8
------------ ------------ ------------ ------------

Operating income 367.9 277.0 1,114.5 901.3

Other income
(expense):
Gain (loss) from
foreign
currency, net 0.5 1.4 2.3 (1.8)
Interest income 12.8 5.7 33.4 15.9
Interest expense (10.1) (6.5) (28.2) (19.8)
Other, net 3.9 (0.1) 3.9 (0.1)
------------ ------------ ------------ ------------

Earnings before
income taxes 375.0 277.5 1,125.9 895.5

Income taxes 79.2 83.2 255.6 211.0
------------ ------------ ------------ ------------

Net earnings $295.8 $194.3 $870.3 $684.5
============ ============ ============ ============


Basic earnings per
common share $0.96 $0.64 $2.84 $2.24
============ ============ ============ ============

Diluted earnings
per common share $0.95 $0.62 $2.79 $2.20
============ ============ ============ ============

Basic weighted
average common
shares 306,536,803 305,519,598 306,001,571 305,909,907
Diluted weighted
average common
shares 312,525,956 311,019,235 311,700,220 310,941,464


ALCON, INC. AND SUBSIDIARIES
Global Sales
(USD in millions)

Three Months
Ended %Change
September 30, %Foreign in
----------------- Currency Constant
2005 2004 %Change Change Currency
--------- ------- -------- -------- --------
GEOGRAPHIC SALES
United States:
Pharmaceutical $260.9 $226.5 15.2% --% 15.2%
Surgical 225.3 200.7 12.3 -- 12.3
Consumer Eye Care 74.3 72.7 2.2 -- 2.2
--------- -------

Total United States
Sales 560.5 499.9 12.1 -- 12.1
--------- -------

International:
Pharmaceutical 176.9 149.9 18.0 3.3 14.7
Surgical 259.0 237.8 8.9 2.0 6.9
Consumer Eye Care 74.7 70.5 6.0 3.7 2.3
--------- -------

Total International
Sales 510.6 458.2 11.4 2.7 8.7
--------- -------

Total Global Sales $1,071.1 $958.1 11.8% 1.3% 10.5%
========= =======

PRODUCT SALES
Infection/inflammation $157.6 $138.8 13.5%
Glaucoma 153.3 134.9 13.6
Allergy 73.3 70.9 3.4
Otic 74.9 54.1 38.4
Other
pharmaceuticals/rebates (21.3) (22.3) N/M
--------- -------

Total Pharmaceutical 437.8 376.4 16.3 1.3% 15.0%
--------- -------

Intraocular lenses 165.0 139.6 18.2
Cataract/vitreoretinal 307.6 282.4 8.9
Refractive 11.7 16.5 (29.1)
--------- -------

Total Surgical 484.3 438.5 10.4 1.1 9.3
--------- -------

Contact lens
disinfectants 78.3 79.5 (1.5)
Artificial tears 42.2 36.5 15.6
Other 28.5 27.2 4.8
--------- -------

Total Consumer Eye Care 149.0 143.2 4.1 1.9 2.2
--------- -------

Total Global Sales $1,071.1 $958.1 11.8% 1.3% 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
Global Sales
(USD in millions)

Nine months ended %Change
September 30, %Foreign in
------------------- Currency Constant
2005 2004 %Change Change Currency
--------- --------- -------- -------- --------
GEOGRAPHIC SALES
United States:
Pharmaceutical $824.5 $746.1 10.5% --% 10.5%
Surgical 637.0 578.1 10.2 -- 10.2
Consumer Eye Care 215.1 210.3 2.3 -- 2.3
--------- ---------

Total United States
Sales 1,676.6 1,534.5 9.3 -- 9.3
--------- ---------

International:
Pharmaceutical 547.9 449.9 21.8 5.1 16.7
Surgical 856.4 763.4 12.2 4.1 8.1
Consumer Eye Care 232.7 213.1 9.2 4.8 4.4
--------- ---------

Total International
Sales 1,637.0 1,426.4 14.8 4.6 10.2
--------- ---------

Total Global Sales $3,313.6 $2,960.9 11.9% 2.2% 9.7%
========= =========

PRODUCT SALES
Infection/inflammation $490.2 $440.9 11.2%
Glaucoma 463.8 394.6 17.5
Allergy 295.4 268.9 9.9
Otic 178.0 138.8 28.2
Other pharmaceuticals/
rebates (55.0) (47.2) N/M
--------- ---------

Total Pharmaceutical 1,372.4 1,196.0 14.7 1.9% 12.8%
--------- ---------


Intraocular lenses 493.9 429.7 14.9
Cataract/vitreoretinal 956.3 863.6 10.7
Refractive 43.2 48.2 (10.4)
--------- ---------

Total Surgical 1,493.4 1,341.5 11.3 2.3 9.0
--------- ---------

Contact lens
disinfectants 229.5 229.9 (0.2)
Artificial tears 129.4 104.9 23.4
Other 88.9 88.6 0.3
--------- ---------

Total Consumer Eye
Care 447.8 423.4 5.8 2.4 3.4
--------- ---------

Total Global Sales $3,313.6 $2,960.9 11.9% 2.2% 9.7%
========= =========
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)

Sept 30, Dec 31,
2005 2004
--------- ---------
Assets
Current assets:
Cash and cash equivalents $1,112.5 $1,093.4
Short term investments 287.1 138.2
Trade receivables, net 770.4 696.8
Inventories 424.6 455.2
Deferred income tax assets 175.4 176.1
Other current assets 85.2 84.4
--------- ---------

Total current assets 2,855.2 2,644.1

Long term investments 239.9 --
Property, plant and equipment, net 812.2 830.2
Intangible assets, net 315.4 329.3
Goodwill 550.4 549.2
Long term deferred income tax assets 83.9 66.4
Other assets 55.2 48.9
--------- ---------

Total assets $4,912.2 $4,468.1
========= =========

Liabilities and Shareholders' Equity

Current liabilities:
Accounts payable $131.1 $126.2
Short term borrowings 890.5 911.6
Current maturities of long term debt 5.7 4.5
Other current liabilities 908.3 835.1
--------- ---------

Total current liabilities 1,935.6 1,877.4
--------- ---------

Long term debt, net of current maturities 68.6 71.9
Long term deferred income tax liabilities 20.5 23.3
Other long term liabilities 327.1 307.6
Contingencies

Shareholders' equity:
Common shares 43.3 42.7
Additional paid-in capital 762.8 547.3
Accumulated other comprehensive income 101.5 225.4
Deferred compensation (0.6) (2.6)
Retained earnings 2,221.6 1,653.6
Treasury shares, at cost (568.2) (278.5)
--------- ---------

Total shareholders' equity 2,560.4 2,187.9
--------- ---------

Total liabilities and shareholders' equity $4,912.2 $4,468.1
========= =========


ALCON, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows (Unaudited)
(in millions)

Nine months ended
Sept 30,
------------------
2005 2004
--------- --------

Cash provided by operating activities:
Net cash from operating activities $1,073.1 $862.5
--------- --------

Cash provided by (used in) investing activities:
Purchases of property, plant and equipment (106.7) (109.1)
Purchases of intangible assets (43.2) (69.9)
Net purchases of investments (381.3) (39.7)
Other 2.2 1.2
--------- --------

Net cash from investing activities (529.0) (217.5)
--------- --------

Cash provided by (used in) financing activities:
Net proceeds from (repayment of) short term debt (11.7) (505.2)
Repayment of long term debt (5.2) (9.0)
Dividends on common shares (302.0) (169.4)
Proceeds from exercise of stock options 138.1 19.9
Acquisition of treasury shares (292.7) (174.2)
--------- --------

Net cash from financing activities (473.5) (837.9)
--------- --------

Effect of exchange rates on cash and cash
equivalents (51.5) (12.9)
--------- --------

Net increase (decrease) in cash and cash
equivalents 19.1 (205.8)

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

Cash and cash equivalents, end of period $1,112.5 $880.2
========= ========

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

Interest expense, net of amount capitalized $28.1 $21.2
========= ========

Income taxes $111.8 $199.4
========= ========


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
------------ ------------ ------------
Effective Tax Rate 22.6% 5.1% 27.7%

(1) The adjusted item above is considered a non-GAAP financial measure
as defined by Regulation G promulgated by the U.S. Securities and
Exchange Commission 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. 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.