• First-half results for continuing operations led by improving Pharmaceuticals performance ahead of expectations and expansion in Vaccines and Diagnostics
• Net sales rise 11% (+2% in local currencies) to USD 20.6 billion
• Operating income advances 12% to USD 4.9 billion on business expansion, productivity gains and currency benefits
• Net income up 13% to USD 4.6 billion; basic EPS rises 17% to USD 2.01
• Dynamic growth from new products – including Tekturna/Rasilez, Exforge, Lucentis, Exelon Patch and Aclasta/Reclast – provides USD 1.3 billion in first-half net sales
• Key R&D projects on track for 2008 submissions, particularly Afinitor (RAD001) for advanced kidney cancer and Menveo meningococcal meningitis vaccine
• 25% stake in Alcon, the world leader in eye care, purchased in July; strategic acquisitions strengthen portfolio and complement internal growth drivers
• Novartis on track for record sales and earnings in 2008 from continuing operations

Commenting on the results, Dr. Daniel Vasella, Chairman and CEO of Novartis said: "The growth acceleration in the second quarter of 2008 and our R&D successes, especially in Pharmaceuticals and Vaccines, demonstrate that our strategy is delivering results and that we are heading towards a promising future despite a weak economy. Speed and productivity of operations are improving and growth in most countries is dynamic. "