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Bard Reports Second Quarter Results; Net Sales up 15 Percent on Constant Currency Basis

MURRAY HILL, N.J.--(BUSINESS WIRE)--July 20, 2004--C. R. Bard, Inc. (NYSE-BCR) today reported net sales of $416.3 million for the quarter ended June 30, 2004, up 18 percent over the prior year's net sales of $354.2 million. On a constant currency basis, second quarter 2004 net sales increased 15 percent. Net sales in the U.S. were $290.6 million, up 16 percent over the prior-year period, and net sales outside the U.S. were $125.7 million, up 21 percent over the prior-year period. On a constant currency basis, net sales outside the U.S. increased by 13 percent over the prior-year period.

For the second quarter of 2004, net income was $58.7 million and diluted earnings per share were 55 cents, up 19 percent and 17 percent, respectively, over the same period in the prior year. Included in the second quarter 2004 results were certain items that decreased net income by $2.6 million, or 2 cents per diluted share, thereby affecting comparability with the prior-year quarter. For the second quarter of 2003, Bard reported net income of $49.5 million and diluted earnings per share of 47 cents. Excluding the items comprising the $2.6 million, net income and diluted earnings per share increased 24 percent and 21 percent, respectively, in the second quarter of 2004 as compared to the same period in the prior year. The earnings per share figures reported in this press release reflect the Company's two-for-one common stock split that became effective on May 28, 2004.

Timothy M. Ring, chairman and chief executive officer, commented, "We had another strong quarter as we continue to work toward a sustainable, higher growth profile. Many of our new products are meeting with strong initial demand, particularly in our Vascular and Oncology product groups. Operationally, gross margin continues to expand allowing significantly greater R&D investment this quarter. We were active on the business development front as well, concluding several "tuck-in" transactions during the period. Overall, we are very pleased with the execution of our growth strategy."

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 may contain forward-looking statements, the accuracy of which is necessarily subject to risks and uncertainties. Please refer to our March 31, 2004 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     Six Months Ended
                                    June 30,            June 30,
                               ------------------  ------------------
                                  2004     2003      2004      2003
                               --------  --------  --------  --------

Net sales                      $416,300  $354,200  $810,100  $690,100

Costs and expenses:
 Cost of goods sold             169,000   152,600   330,600   298,800
 Marketing, selling &
  administrative expense        130,500   109,900   251,200   214,000
 Research & development
  expense (1)                    31,600    21,800    54,800    41,300
 Interest expense                 3,000     3,200     6,400     6,300
 Other (income) expense, net      3,100    (1,500)  (10,300)   (3,200)
                               --------  --------  --------  --------
Total costs and expenses        337,200   286,000   632,700   557,200
                               --------  --------  --------  --------

Income before tax provision      79,100    68,200   177,400   132,900
 Income tax provision            20,400    18,700    46,800    36,500
                               --------  --------  --------  --------

Net income (2)                  $58,700   $49,500  $130,600   $96,400
                               ========  ========  ========  ========

Basic earnings per share          $0.56     $0.48     $1.25     $0.93
                               ========  ========  ========  ========

Diluted earnings per share        $0.55     $0.47     $1.22     $0.92
                               ========  ========  ========  ========

Wt. avg. common shares
 outstanding - basic            104,500   103,400   104,300   103,400

Wt. avg. common shares
 outstanding - diluted          107,500   105,600   107,100   105,200

(1) Included in research and development expense is approximately $6.7
    million and $1.0 million in acquired in-process research and
    development for the quarters ended June 30, 2004 and 2003,
    respectively.

(2) In addition to interest income and exchange gains and losses,
    first quarter 2004 other (income) expense, net included the
    adjustment of a 2003 reserve recorded in connection with the legal
    action entitled Nelson N. Stone, M.D., et al. v. C. R. Bard, Inc.,
    et. al. This adjustment resulted in additional pretax income of
    $16.0 million ($9.8 million after-tax; $0.09 diluted earnings per
    share), partially offset by a charge for an unrelated legal
    settlement of $3.9 million pretax ($2.3 million after-tax; $0.02
    diluted earnings per share). In addition the company recorded a
    $1.1 million tax credit in income tax provision related to the
    retroactive effective date of its Malaysian high-technology
    pioneer grant ($0.01 diluted earnings per share). In addition to
    interest income and exchange gains and losses, second quarter 2004
    other (income) expense, net included a charge for a legal
    settlement partially offset by an investment gain, which resulted
    in a net pretax charge of $4.3 million ($2.6 million after-tax;
    $0.02 diluted earnings per share).



                  Product Group Summary of Net Sales

                                        Quarter Ended June 30,
                                  -----------------------------------
                                                             Constant
                                    2004      2003    Change Currency
                                  --------  --------  ------ --------
Vascular                          $100,100   $75,800     32%      27%
Urology                            121,500   114,500      6%       4%
Oncology                           100,300    80,000     25%      23%
Surgery                             76,900    67,400     14%      13%
Other                               17,500    16,500      6%       4%
                                  --------  --------
Total net sales                   $416,300  $354,200     18%      15%
                                  ========  ========



                                        Six Months Ended June 30,
                                   -----------------------------------
                                                              Constant
                                      2004      2003   Change Currency
                                   --------  --------  ------ --------
Vascular                           $192,200  $143,400     34%      27%
Urology                             238,000   223,800      6%       4%
Oncology                            194,500   157,700     23%      20%
Surgery                             152,100   131,800     15%      14%
Other                                33,300    33,400    ---      (2)%
                                   --------  --------
Total net sales                    $810,100  $690,100     17%      14%
                                   ========  ========

    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