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Bard Reports Fourth Quarter Results; Sales up 11 Percent on Constant Currency Basis

MURRAY HILL, N.J.--(BUSINESS WIRE)--Jan. 28, 2004--C. R. Bard, Inc. (NYSE-BCR) today reported 2003 fourth quarter and full year financial results. Fourth quarter 2003 net sales were $381.2 million, an increase of 15 percent over the prior-year period. On a constant currency basis, fourth quarter 2003 net sales increased 11 percent. Fourth quarter 2003 net sales in the U.S. were $268.4 million, up 12 percent over the prior-year period. Net sales outside the U.S. were $112.8 million, up 22 percent over the prior-year period. On a constant currency basis, fourth quarter 2003 net sales outside the U.S. increased by 10 percent over the prior-year period.

For the fourth quarter 2003, net income was $20.6 million and diluted earnings per share were 39 cents, both down 56 percent over the same period in the prior year. Included in these results were certain unusual items that reduced net income by $35.2 million (after tax), or 67 cents per diluted share, thereby affecting comparability with the prior-year quarter. This includes a charge of $35.5 million (after tax) related to a previously announced legal verdict. Excluding these unusual items, net income was $55.8 million and diluted earnings per share were $1.06 in the fourth quarter of 2003, an increase of 20 percent and 19 percent, respectively, over the same period in the prior year.

Net sales for the full year 2003 were $1,433.1 million, an increase of 13 percent over the prior-year period. On a constant currency basis, full year 2003 net sales increased 9 percent. Full year 2003 net sales in the U.S. were $1,020.4 million, up 10 percent over the prior-year period. Net sales outside the U.S. were $412.7 million, up 20 percent over the prior-year period. On a constant currency basis, full year 2003 net sales outside the U.S. increased by 8 percent over the prior-year period.

For the full year 2003, net income was $168.5 million and diluted earnings per share were $3.20. Excluding the impact of the unusual items identified above, net income for the full year 2003 was $203.7 million and diluted earnings per share were $3.87.

For the full year 2002, Bard reported net income of $155.0 million and diluted earnings per share of $2.94. Included in these results were unusual items reducing net income by $21.7 million (after tax), or 41 cents per diluted share, related to the termination of the proposed merger with Tyco International Ltd., the realignment and consolidation of certain divisional and manufacturing operations and corporate severance costs, offset in part by the reversal of certain legal accruals and a tax credit. Excluding the impact of these unusual items in 2002 and the unusual items identified above for 2003, net income and diluted earnings per share in 2003 grew 15 percent and 16 percent, respectively, as compared to the prior year.

"Today Bard reported record sales results for both the quarter and the year, reflecting solid contributions across the majority of our businesses and geographies as well as from our key new products," commented Timothy M. Ring, chairman and chief executive officer. "We are pleased with the progress of our strategic initiatives as we work to achieve a higher level of sustainable revenue growth. The significant improvements in our gross margin continue to provide us with the means to fund these initiatives. Our objective to make strategic investments in our future, while providing investors with 12 percent annual growth in earnings per share, remains unchanged."

C. R. Bard, Inc. (www.crbard.com) headquartered in Murray Hill, N.J., is a leading multinational developer, manufacturer and marketer of innovative, life-enhancing medical technologies in the fields of vascular, urology, oncology, and surgical specialty products.

This press release contains forward-looking statements, the accuracy of which is necessarily subject to risks and uncertainties. Please refer to our September 30, 2003 Form 10-Q for a statement with regard to forward-looking statements, including disclosure of the factors that could cause actual results to differ materially from those expressed or implied.


                           C. R. Bard, Inc.
                  Consolidated Statements of Income
      (thousands of dollars except per share amounts, unaudited)

                              Quarter Ended       Twelve Months Ended
                              December 31,          December 31,
                             2003      2002        2003        2002
                          -------------------- -----------------------

Net sales                  $381,200  $331,700  $1,433,100  $1,273,800

Costs and expenses:
   Cost of goods sold       155,900   147,000     609,400     582,700
   Marketing, selling &
    administrative expense  121,800   100,900     448,100     377,200
   Research & development
    expense                  24,500    17,600      87,400      61,700
   Interest expense           3,000     3,100      12,500      12,600
   Other (income) expense,
    net(1)(2)                56,800    (1,400)     52,500      28,600
                          ---------- --------- ----------- -----------
Total costs and expenses    362,000   267,200   1,209,900   1,062,800
                          ---------- --------- ----------- -----------

Income before tax provision  19,200    64,500     223,200     211,000
   Income tax provision(3)   (1,400)   17,900      54,700      56,000
                          ---------- --------- ----------- -----------

Net income                  $20,600   $46,600    $168,500    $155,000
                          ========== ========= =========== ===========

Basic earnings per share      $0.40     $0.90       $3.26       $2.98
                          ========== ========= =========== ===========

Diluted earnings per share    $0.39     $0.89       $3.20       $2.94
                          ========== ========= =========== ===========

Wt. avg. common shares
 outstanding - basic         51,800    51,700      51,700      52,000

Wt. avg. common shares
 outstanding - diluted       52,800    52,400      52,600      52,800

(1) In addition to interest income and foreign exchange gains and
 losses, other (income) expense, net in 2002 included the following
 unusual items: divisional and manufacturing restructuring costs of
 $33.7 million before tax ($0.39 diluted earnings per share), merger
 termination costs of $6.2 million before tax ($0.08 diluted earnings
 per share) and the reversal of certain legal accruals in the amount
 of $5.0 million before tax ($0.06 diluted earnings per share).  These
 items were recorded in the first and third quarter of 2002.
(2)  In addition to interest income and foreign exchange gains and
 losses, other (income) expense, net in 2003 included the following
 unusual items: a charge for a legal verdict in the amount of $58.0
 million before tax  ($0.67 diluted earnings per share), a gain from a
 legal settlement of $3.5 million before tax ($0.04 diluted earnings
 per share) and the final adjustment of 2002 restructuring charges and
 reserves for unusual items of $2.9 million before tax ($0.03 diluted
 earnings per share) offset by a charge for product line asset write-
 downs of $6.1 million before tax ($0.07 diluted earnings per share).
(3) In the third quarter of 2002, the company recorded a $3.5 million
 tax credit related to a change in a statutory tax rate.


                  Product Group Summary of Net Sales

                                  Quarter Ended December 31,
                         ---------------------------------------------
                                                            Constant
                              2003        2002    Change    Currency
                         ----------- ----------- ---------- ----------
Vascular                   $86,500     $70,500         23%        15%
Urology                    114,400     107,300          7%         4%
Oncology                    92,300      77,100         20%        17%
Surgery                     72,000      60,400         19%        17%
Other                       16,000      16,400         (2)%       (4)%
                         ----------- ----------
Total net sales           $381,200    $331,700         15%        11%
                         =========== ==========


                  Product Group Summary of Net Sales

                                 Twelve Months Ended December 31,
                            ------------------------------------------
                                                             Constant
                                  2003       2002    Change  Currency
                            ------------ ---------- -------- ---------
Vascular                      $307,300    $259,700     18%        11%
Urology                        451,500     419,700      8%         5%
Oncology                       336,300     299,000     12%        10%
Surgery                        272,300     229,500     19%        17%
Other                           65,700      65,900     ---        (1)%
                           ----------- ------------
Total net sales             $1,433,100  $1,273,800     13%         9%
                         ============= ============


                           C. R. BARD, INC.
                 CONDENSED CONSOLIDATED BALANCE SHEETS
                        (thousands of dollars)
                              (UNAUDITED)

                                                       December 31,
ASSETS                                              2003         2002
                                                ----------  ----------
Cash and short-term investments                   $422,000    $383,200
Accounts receivable, net                           224,100     183,400
Inventories                                        156,500     147,100
Other current assets                                72,500      44,300
                                                ----------  ----------
   Total current assets                            875,100     758,000
                                                ----------  ----------
Property, plant and equipment, net                 222,700     168,000
Intangible assets                                  137,800      65,200
Goodwill                                           354,000     316,100
Other assets                                       102,400     109,400
                                                ----------  ----------
   TOTAL ASSETS                                 $1,692,000  $1,416,700
                                                ==========  ==========

LIABILITIES AND SHAREHOLDERS' INVESTMENT

Short-term debt                                    $16,600        $900
Accounts payable                                    56,100      46,900
Accrued liabilities                                349,200     269,100
                                                ----------  ----------
     Total current liabilities                     421,900     316,900
                                                ----------  ----------
Long-term debt                                     151,500     152,200
Other long-term liabilities                         72,900      67,200
Total shareholders' investment                   1,045,700     880,400
                                                ----------  ----------
TOTAL LIABILITIES AND SHAREHOLDERS'
 INVESTMENT                                     $1,692,000  $1,416,700
                                                ==========  ==========


    CONTACT: C. R. Bard, Inc.
             Investor Relations:
             Eric J. Shick, 908-277-8413
             or
             Media Relations:
             Holly P. Glass, 703-754-2848

    SOURCE: C. R. Bard, Inc.

bard-pubs

Primary Media Relations Contact

Scott Lowry
Vice President and Treasurer
C. R. Bard, Inc.
730 Central Avenue
Murray Hill, NJ 07974

Tel: 908-277-8365