Abbott Reports Fourth-Quarter and Full-Year 2012 Results

           Abbott Reports Fourth-Quarter and Full-Year 2012 Results

  PR Newswire

  ABBOTT PARK, Illinois, Jan. 23, 2013

-Fourth-Quarter Ongoing EPS of $1.51 (GAAP EPS of $0.66) -

- Full-Year Ongoing EPS of $5.07 (GAAP EPS of $3.72)-

- Completed Launch of AbbVie, a New Biopharmaceutical Company-

- Company Issues Strong Earnings Outlook for 2013–

ABBOTT PARK, Illinois, Jan. 23, 2013 /PRNewswire/ --Abbott today announced
financial results for the fourth quarter ended Dec. 31, 2012.

  *Fourth-quarter diluted earnings per share, excluding specified items, were
    $1.51. Diluted earnings per share under Generally Accepted Accounting
    Principles (GAAP) were $0.66, including specified items.
  *Full-year diluted earnings per share, excluding specified items, were
    $5.07, exceeding Abbott's initial guidance range. Diluted earnings per
    share under GAAP were $3.72, including specified items.
  *Excluding foreign exchange, worldwide sales increased 5.6 percent.
    Reported sales increased 4.4 percent, including an unfavorable 1.2 percent
    effect of foreign exchange.
  *On Jan. 1, 2013, Abbott completed the launch of AbbVie, a new
    research-based biopharmaceutical company.
  *Abbott launched numerous new products across its diversified businesses in
    2012, positioning the company well for future growth. Key pipeline
    innovations include the launch of its Absorb™ bioresorbable vascular
    scaffold; the next-generation drug-eluting stent, XIENCE Xpedition™; 80
    launches across its Nutrition business; new tests in Diagnostics; as well
    as several new product and geographic expansion initiatives in Established
    Pharmaceuticals, Diabetes Care and Vision Care.

"In 2012, we achieved a significant milestone in Abbott's 125-year history
with the creation of AbbVie while delivering another year of strong results,"
said Miles D. White, chairman and chief executive officer, Abbott. "Abbott's
mix of diversified healthcare businesses and pipeline is favorably aligned
with key healthcare and emerging market trends, and well positioned to deliver
top-tier growth in 2013."

The following is a summary of Fourth-Quarter 2012 sales by major business
category.

                                                                    % Change vs. 4Q11
                              Sales ($ in
                             millions) 4Q12                         Int'l                   Total
                          U.S.   Int'l  Total      U.S.     Operational  Reported   Operational  Reported
Total
Sales 4,669  6,168  10,837         4.4          6.6       4.4           5.6       4.4
Proprietary
Pharmaceuticals          3,020  2,122   5,142         7.6          9.6       7.0           8.5       7.4
Nutritionals               743    972   1,715         9.4         10.5      10.8          10.0      10.2
Established
Pharmaceuticals             --  1,346   1,346         n/a          0.6     (2.4)           0.6     (2.4)
Core Laboratory
Diagnostics                 174    734     908       (0.3)          7.2       4.8           5.7       3.8
Molecular Diagnostics        59     72     131       (3.3)         12.5      10.4           4.9       3.8
Point of Care Diagnostics    72     18      90        19.5        (1.0)     (0.8)          14.7      14.7
Vascular(a)                 282    478     760   (24.6)(a)          8.1       5.7      (6.8)(a)  (8.1)(a)
Diabetes Care               150    212     362         9.8          0.6     (1.2)           4.2       3.1
Medical Optics              100    185     285         1.5          1.2     (1.3)           1.4     (0.3)
Other Sales                  69     29      98      (14.7)          4.4       2.3         (9.9)    (10.4)

The following is a summary of Twelve-Month 2012 sales by major business
category.

                                                                      % Change vs. 12M11
                          Sales ($ in millions)
                                  12M12                               Int'l                   Total
                           U.S.   Int'l   Total      U.S.     Operational  Reported   Operational  Reported
Total
Sales 16,784  23,090  39,874         4.8          6.1       1.1           5.5       2.6
Proprietary
Pharmaceuticals          10,158   7,854  18,012         7.4          8.9       3.0           8.2       5.5
Nutritionals              2,907   3,564   6,471         9.5          8.1       6.3           8.7       7.7
Established
Pharmaceuticals              --   5,121   5,121         n/a          2.1     (4.4)           2.1     (4.4)
Core Laboratory
Diagnostics                  685   2,814   3,499         7.3          6.9       2.5           7.0       3.4
Molecular Diagnostics        201     244     445       (2.3)          8.3       3.0           3.3       0.5
Point of Care Diagnostics    274      74     348        18.1          8.9       7.6          16.0      15.7
Vascular(b)                1,226   1,845   3,071   (20.7)(b)          7.6       3.3      (5.6)(b)  (7.9)(b)
Diabetes Care                568     759   1,327         4.4        (3.0)     (7.5)         (0.1)     (2.8)
Medical Optics               399     698   1,097         0.7          0.8     (2.4)           0.8     (1.3)
Other Sales                  366     117     483         6.7        (5.0)    (11.3)           3.5       1.7
Notes:                        1) See "Consolidated Statement of Earnings" for more information.
                                 "Operational" growth reflects percentage change over the prior year
                              2) excluding the impact of exchange rates.
                      (a) In the fourth quarter, excluding the expected decline of certain royalty and supply
                          arrangement revenues (including Promus), worldwide operational sales increased 0.7
                          percent, worldwide reported sales decreased 0.9 percent, and U.S. sales decreased
                          11.7 percent. This decline in U.S. Vascular sales primarily relates to a decrease
                          in XIENCE sales due to market dynamics and the comparison to 4Q11 when XIENCE PRIME
                          was launched.
                      (b) For the full year 2012, excluding the expected decline of certain royalty and
                          supply arrangement revenues (including Promus), worldwide operational sales
                          increased 3.4 percent, worldwide reported sales increased 0.7 percent, and U.S.
                          Vascular sales decreased 3.9 percent.
n/a = Not applicable

The following is a summary of Fourth-Quarter 2012 sales for select products.

                                                      % Change vs. 4Q11
                    Sales ($ in
                  millions) 4Q12                     Int'l                  Total
                U.S.   Int'l  Total   U.S.   Operational  Reported  Operational  Reported
HUMIRA          1,413  1,268  2,681    31.1         17.9      15.2         24.5      23.1
TRILIPIX/TriCor
(fenofibrate)     202     67    269  (50.7)        (3.7)     (5.2)       (43.7)    (43.9)
AndroGel          364      9    373    40.5          7.5      10.1         39.5      39.6
Kaletra            83    167    250  (17.0)        (9.4)    (11.4)       (12.1)    (13.4)
Lupron            155     56    211    11.3       (17.4)    (18.1)          1.8       1.6
Niaspan           277     --    277     7.4          n/a       n/a          7.4       7.4
Synthroid         168     26    194    24.9          7.5       3.4         22.2      21.5
Creon             105     83    188     3.9         13.8      11.8          8.0       7.2
Pediatric
Nutritionals      366    581    947     8.5         14.1      15.0         11.9      12.4
Adult
Nutritionals      377    391    768    11.5          5.6       5.2          8.4       8.2
Xience
Drug-Eluting
Stents(c)         128    272    400  (15.3)         12.6      10.3          2.0       0.5
Other Coronary
Products(d)        49    101    150   (2.7)          3.0       0.1          1.0     (0.9)
Endovascular(e)    59     55    114   (3.2)         11.6       9.6          3.5       2.6

The following is a summary of Twelve-Month 2012 sales for select products.

                                                      % Change vs. 12M11
                    Sales ($ in
                  millions) 12M12                    Int'l                  Total
                U.S.   Int'l  Total   U.S.   Operational  Reported  Operational  Reported
HUMIRA          4,376  4,889  9,265    27.7         15.4       8.5         20.7      16.8
TRILIPIX/TriCor
(fenofibrate)   1,098    292  1,390  (19.9)          1.3     (5.2)       (16.0)    (17.2)
AndroGel        1,152     33  1,185    31.7          6.7       4.9         30.9      30.8
Kaletra           280    733  1,013  (14.1)        (7.6)    (13.2)        (9.4)    (13.4)
Lupron            569    231    800     5.4       (10.5)    (14.4)          0.1     (1.2)
Niaspan           911     --    911   (6.7)          n/a       n/a        (6.7)     (6.7)
Synthroid         551    105    656     5.7         10.0       1.5          6.4       5.0
Creon             353    306    659     6.5         10.6       3.5          8.4       5.1
Pediatric
Nutritionals    1,445  2,080  3,525    14.0          9.1       8.0         11.1      10.4
Adult
Nutritionals    1,452  1,484  2,936     6.1          6.6       4.0          6.3       5.0
Xience
Drug-Eluting
Stents(c)         555  1,044  1,599   (1.1)          8.5       4.8          5.1       2.7
Other Coronary
Products(d)       196    402    598   (2.5)          4.1     (0.6)          1.9     (1.2)
Endovascular(e)   241    211    452   (1.9)          9.0       3.4          3.0       0.5
Notes:            1) See "Consolidated Statement of Earnings" for more information.
                     "Operational" growth reflects percentage change over the prior year
                  2) excluding the impact of exchange rates.
            (c) International sales include Abbott's Absorb bioresorbable vascular scaffold
                (BVS).
            (d) Includes guide wires, balloon catheters and other coronary products.
            (e) Includes vessel closure, carotid stents and other peripheral products.
n/a = Not applicable

Diversified Healthcare Products Business Highlights

Initiated Clinical Trial of Absorb Bioresorbable Vascular Scaffold (BVS) in
the United States Announced the initiation of the ABSORB III clinical trial in
patients in the U.S. The trial is designed to enroll approximately 2,250
patients and will compare the performance of Abbott's Absorb BVS, a
first-of-its kind device for the treatment of coronary artery disease, to the
company's XIENCE™ family of drug eluting stents. Data from the ABSORB III
trial will support U.S. regulatory filings for Absorb.

Announced FDA Approval and U.S. Launch of XIENCE Xpedition Announced the U.S.
launch of the XIENCE Xpedition Drug Eluting Stent System, providing physicians
a next-generation technology with the largest size matrix in the U.S. market.
XIENCE Xpedition features a new stent delivery system designed to optimize
deliverability, particularly in challenging coronary anatomies. XIENCE
Xpedition is also available in Europe and other international markets.

Received Approval for Two New Diagnostic Tests Announced clearance from the
U.S. Food and Drug Administration for ARCHITECT 2nd Generation Testosterone
Assay, a more sensitive, accurate and precise test, that allows physicians to
obtain more reliable measurements of testosterone in both men and women. In
addition, received CE Marking for the ARCHITECT STAT High Sensitive Troponin-I
Assay, which may help clinicians reduce time in diagnosing heart attacks and
assist in determining risk for those who may have future heart attacks.

Introduced Ensure Complete Shakes for Adults Introduced in the U.S. Ensure
Complete™, a nutritional shake that provides targeted muscle, heart, immune
system, and bone support to help meet adults' daily dietary needs. Ensure
Complete shakes are suitable for gluten-free and lactose intolerant diets.
Ensure Complete shakes feature Abbott's proprietary ingredient, Revigor®, and
13 grams of protein to help protect, preserve and promote muscle health.

Received Approval for ALK Test as a Companion Diagnostic in Europe Announced
expansion of the current CE-IVD product labeling for Abbott's Vysis® ALK Break
Apart FISH Probe Kit, allowing the test to be marketed in the European Union
as a companion diagnostic. The test is designed to detect rearrangements of
the ALK gene in advanced non-small cell lung cancer patients who may be
eligible for treatment with XALKORI® (crizotinib), Pfizer's ALK inhibitor.

Proprietary Pharmaceuticals Business Highlights

Presented Data from the Phase 2b Aviator Study in Hepatitis C Presented the
full results from the Phase 2b Aviator study of AbbVie's investigational
all-oral interferon-free regimen for the treatment of hepatitis C (HCV). Data
showed sustained virological response at 12 weeks post treatment (SVR12) in 98
percent of treatment-naive and 93 percent of null responders (intent to treat)
for genotype 1 (GT1) patients taking a combination of ABT-450/r, ABT-267,
ABT-333 and ribavirin.

Initiated Phase 3 Hepatitis C Registrational Program Announced details of the
Phase 3 clinical trials designed to evaluate safety and efficacy of a 12-week
regimen of three direct-acting antivirals, with and without ribavirin, for the
treatment of HCV in GT1 patients. The Phase 3 program, which is currently open
for enrollment, will include more than 2,000 patients with HCV GT1, with trial
sites in 29 countries.

Received Approval for Ninth HUMIRA Indication in Europe Announced approval of
HUMIRA® in Europe for the treatment of pediatric patients with severe active
Crohn's disease. With this approval, HUMIRA becomes the first biologic
treatment approved for these patients in more than five years.This marks the
ninth indication for HUMIRA in the European Union.

Abbott issues ongoing earnings-per-share outlook for 2013

Abbott is issuing ongoing earnings-per-share guidance for the full-year 2013
of $1.98 to $2.04.

Abbott forecasts net specified items for the full-year 2013 of approximately
$0.59 per share, primarily associated with intangible amortization expense,
separation costs and cost-reduction initiatives. Including these net specified
items, projected earnings per share under Generally Accepted Accounting
Principles (GAAP) would be $1.39 to $1.45 for the full-year 2013.

Abbott declares 356th quarterly dividend

On Dec. 14, 2012, the board of directors of Abbott declared the company's
quarterly common dividend of $0.14 per share. Abbott's cash dividend is
payable Feb. 15, 2013, to shareholders of record at the close of business on
Jan. 15, 2013. On Jan. 4, 2013, the board of directors of AbbVie declared the
company's quarterly cash dividend of $0.40 per share. AbbVie's cash dividend
is also payable on Feb. 15, 2013, to shareholders of record at the close of
business on Jan. 15, 2013.

Abbott's annualized cash dividend of $0.56 per share, combined with AbbVie's
annualized cash dividend of $1.60 per share, equals a total annualized cash
dividend of $2.16 per share, compared to the annualized cash dividend of
Abbott, prior to separation, of $2.04 per share. Future quarterly dividends
are subject to approval by each company's board of directors.

About Abbott

Abbott (NYSE: ABT) is a global healthcare company devoted to improving life
through the development of products and technologies that span the breadth of
healthcare. With a portfolio of leading, science-based offerings in
diagnostics, medical devices, nutritionals and branded generic
pharmaceuticals, Abbott serves people in more than 150 countries and employs
approximately 70,000 people.

Visit Abbott at www.abbott.com and connect with us on Twitter at @AbbottNews.

Abbott will webcast its live fourth-quarter earnings conference call through
its Investor Relations website at www.abbottinvestor.com at 8 a.m. Central
time today. An archived edition of the call will be available after 11 a.m.
Central time.

— Private Securities Litigation Reform Act of 1995 — A Caution Concerning
Forward-Looking Statements

Some statements in this news release may be forward-looking statements for
purposes of the Private Securities Litigation Reform Act of 1995, including
Abbott's expected financial results after the separation of its research-based
pharmaceutical business. Abbott cautions that these forward-looking statements
are subject to risks and uncertainties that may cause actual results to differ
materially from those indicated in the forward-looking statements. Economic,
competitive, governmental, technological and other factors that may affect
Abbott's operations are discussed in Item 1A, "Risk Factors," to our Annual
Report on Securities and Exchange Commission Form 10-K for the year ended Dec.
31, 2011, and in Item 1A, "Risk Factors," to our quarterly reports filed on
Securities and Exchange Commission Form 10-Q for the quarters ended September
30, 2012 and June 30, 2012, and are incorporated by reference. Abbott
undertakes no obligation to release publicly any revisions to forward-looking
statements as a result of subsequent events or developments, except as
required by law.

                 Abbott Laboratories and Subsidiaries

                  Consolidated Statement of Earnings

           Fourth Quarter Ended December 31, 2012 and 2011

                 (in millions, except per share data)

                             (unaudited)
                               2012             2011        % Change
Net Sales                   $10,837          $10,377               4.4
Cost of products sold         4,060            3,838               5.8
Research and
development                   1,141            1,152             (0.9)
Acquired in-process
and collaborations
research and
development                      28              400               n/m
Selling, general and
administrative                3,193            2,905               9.9
Total Operating Cost
and Expenses                  8,422            8,295               1.5
Operating earnings            2,415            2,082              16.0
Net interest expense            163              102              59.6
Loss on extinguishment
of debt                       1,351               --               n/m     1)
Net foreign exchange
(gain) loss                    (12)              (2)               n/m
Other (income)
expense, net                     39               28              38.7
Earnings before taxes           874            1,954            (55.3)
Taxes on earnings             (179)              335               n/m
Net Earnings                 $1,053           $1,619            (34.9)
Net Earnings Excluding
Specified Items, as
described below              $2,421           $2,295               5.5     2)
Diluted Earnings per
Common Share                  $0.66            $1.02            (35.3)
Diluted Earnings per
Common Share,
Excluding Specified
Items, as described
below                         $1.51            $1.45               4.1     2)
Average Number of
Common Shares
Outstanding Plus
Dilutive Common Stock
Options and Awards            1,596            1,577
1)                     Loss on extinguishment of debt are expenses associated
                       with the early payment of long-term debt as previously
                       discussed.
2)                     2012 Net Earnings Excluding Specified Items excludes
                       after-tax charges of $858 million, or $0.54 per share,
                       for loss on extinguishment of debt, $265 million, or
                       $0.16 per share, for separation costs, $97 million, or
                       $0.06 per share, for asset impairments, $122 million,
                       or $0.07 per share, for restructuring, integration
                       costs and other and $26 million, or $0.02 per share,
                       for acquired in-process research and development.
                       2011 Net Earnings Excluding Specified Items excludes
                       after-tax charges of $400 million, or $0.25 per share,
                       relating to acquired in-process research and
                       development related to the Reata collaboration, $124
                       million, or $0.08 per share, associated with the
                       acquisition of Solvay Pharmaceuticals, and $152
                       million, or $0.10 per share, for other restructuring
                       and integration charges.
NOTE: See attached questions and answers section for further explanation of
Consolidated Statement of Earnings line items.
n/m = Percent change is not meaningful.

  Abbott Laboratories and SubsidiariesConsolidated Statement of Earnings
  Twelve Months Ended December 31, 2012 and 2011(in millions, except per
                          share data)(unaudited)
                                    2012           2011         % Change
Net Sales                           $39,874        $38,851             2.6
Cost of products sold                15,120         15,541           (2.7) 1)
Research and development              4,322          4,129             4.7
Acquired in-process and
collaborations research and
development                             288            673             n/m
Selling, general and
administrative                       12,059         12,756           (5.5) 2)
Total Operating Cost and
Expenses                             31,789         33,099           (4.0)
Operating earnings                    8,085          5,752            40.6
Net interest expense                    513            445            15.3
Loss on extinguishment of debt        1,351             --             n/m 3)
Net foreign exchange (gain) loss        (8)           (50)             n/m
Other (income) expense, net            (34)            158             n/m 4)
Earnings before taxes                 6,263          5,199            20.5
Taxes on earnings                       300            470          (36.3) 5)
Net Earnings                         $5,963         $4,729            26.1
Net Earnings Excluding Specified
Items, as described below            $8,119         $7,331            10.7 6)
Diluted Earnings per Common
Share                                 $3.72          $3.01            23.6
Diluted Earnings per Common
Share, Excluding Specified
Items,

as described below                    $5.07          $4.66             8.8 6)
Average Number of Common Shares
Outstanding Plus Dilutive

Common Stock Options and Awards       1,592          1,567

1) 2012 Cost of products sold decline was due in part to foreign exchange
   rates.
2) 2011 Selling, general and administrative expense includes $1.5 billion of
   litigation reserves related to previously disclosed litigation.
3) Loss on extinguishment of debt are expenses associated with the early
   payment of long-term debt.
4) Other (income) expense, net for 2011 includes a charge of $137 million for
   the impact of Abbott's change to a calendar year end for the international
   operations that were previously reported on a November30 year-end.
5) 2012 Taxes on earnings includes a favorable adjustment to tax expense of
   $408 million, or $0.26 per share, as a result of the resolution of various
   tax positions from a previous year. 2011 Taxes on earnings includes a
   favorable adjustment to tax expense of $580 million, or $0.37 per share,
   as a result of the resolution of various international and U.S. tax
   positions from prior years. These favorable items are classified as
   specified items and excluded from ongoing results, as discussed below.
6) 2012 Net Earnings Excluding Specified Items excludes after-tax charges of
   $858 million, or $0.54 per share, for loss on extinguishment of debt, $573
   million, or $0.36 per share, for restructuring, $485 million, or $0.30 per
   share, for separation costs, $325 million, or $0.21 per share, for
   acquired in-process R&D and R&D milestone payments, $115 million, or $0.07
   per share, related to litigation reserves, $112 million, or $0.07 per
   share, for integration-related expenses and $96 million, or $0.06 per
   share, for asset impairments. These items were partially offset by a
   favorable adjustment from the resolution of a prior year's tax positions
   for $408 million, or $0.26 per share.
   2011 Net Earnings Excluding Specified Items excludes after-tax charges of
   $1.454 billion, or $0.92 per share, related to litigation reserves, $673
   million, or $0.43 per share, relating to acquired in-process research and
   development related to the Reata and Biotest collaborations, $341 million,
   or $0.22 per share, associated with the acquisition of Solvay
   Pharmaceuticals, $76 million, or $0.05 per share, for the impairment of an
   R&D intangible asset, $137 million, or $0.09 per share, for the 2009 and
   2010 impact of the change to a calendar year end for international
   operations, $110 million, or $0.07 per share, for restructuring in the
   pharmaceutical business, $311 million, or $0.19 per share, for cost
   reduction initiatives and other, and $80 million, or $0.05 per share, for
   other litigation reserves. These items were partially offset by a
   favorable adjustment from the resolution of prior years' international and
   U.S. tax positions for $580 million, or $0.37 per share.
n/m = Percent change is not meaningful.

Questions & Answers

Q1) What were sources of sales growth in the quarter?

A1) Excluding foreign exchange, worldwide sales increased 5.6 percent.
Reported sales increased 4.4 percent, including an unfavorable 1.2 percent
effect of foreign exchange. In emerging markets, sales increased more than 10
percent, excluding foreign exchange, with strong double-digit growth in many
of the key emerging markets across Abbott's businesses.

Worldwide Nutrition sales increased 10.0 percent in the quarter, excluding a
favorable 0.2 percent effect of foreign exchange. This was driven by strong
growth across the U.S. and International Nutrition businesses, increasing 9.4
percent and 10.5 percent (excluding foreign exchange), respectively, driven by
growth of key products, including Similac®, PediaSure®, Ensure® and Glucerna®,
as well as emerging market growth. Sales in emerging markets represent more
than 40 percent of total Nutrition sales and increased double digits. Global
sales of Core Laboratory Diagnostics increased 5.7 percent, excluding an
unfavorable 1.9 percent effect of foreign exchange, driven by 7.2 percent
international growth, excluding an unfavorable 2.4 percent effect of foreign
exchange, with strong growth in key emerging markets, such as China, Russia
and Brazil. Point of Care Diagnostics also contributed to strong sales growth,
increasing double digits in the quarter. 

Worldwide Proprietary Pharmaceuticals sales increased 8.5 percent, excluding
an unfavorable 1.1 percent effect of foreign exchange, driven by strong growth
in key franchises including HUMIRA worldwide and AndroGel® in the U.S.,
partially offset by the impact of Tricor® generic competition in the U.S.

Q2)How did specified items affect reported results?

A2) Specified items impacted fourth-quarter results as follows:

                                                           4Q12
(dollars in millions, except earnings-per-share)         Earnings
                                                  Pre-tax After-tax  EPS
As reported (GAAP)                                    $874    $1,053 $0.66
Adjusted for specified items:
Loss on extinguishment of debt                      $1,351      $858 $0.54
Separation costs                                      $282      $265 $0.16
Asset impairments                                     $119       $97 $0.06
Acquired IPR&D                                         $28       $26 $0.02
Restructuring/Integration/Other                 $171      $122 $0.07
As adjusted                                         $2,825    $2,421 $1.51

Loss on extinguishment of debt relates to the payment of long-term debt as
discussed previously. Separation costs are expenses related to the separation
of AbbVie. Asset impairments relate to the write down of certain acquired
research and development assets and equity investments. Acquired IPR&D relates
to a previously announced Proprietary Pharmaceuticals collaboration.
Restructuring/Integration/Other is associated primarily with previously
announced restructuring actions across the businesses. The impact of the
specified items by line item is as follows (dollars in millions):

                                                                  4Q12
                                Cost of                           Net       Loss on
                                Products        Acquired        Interest extinguishment      Other
                                  Sold    R&D    IPR&D    SG&A  Expense     of Debt     (Income)/Expense
As reported (GAAP)                $4,060 $1,141      $28 $3,193     $163         $1,351              $39
Adjusted for specified items:
Loss on extinguishment of debt        --     --       --     --       --       ($1,351)               --
Separation costs                    ($6)   ($8)       -- ($212)    ($56)             --               --
Asset impairments                     --  ($58)       --     --       --             --            ($61)
Acquired IPR&D                        --     --    ($28)     --       --             --               --
Restructuring/Integration/Other    ($75)  ($45)       --  ($47)       --             --             ($4)
As adjusted                       $3,979 $1,030       -- $2,934     $107             --            ($26)

Q3) What was the gross margin ratio in the quarter?

A3) The gross margin ratio before and after specified items is shown below
(dollars in millions):

                                                    4Q12
                                 Cost of Products
                                       Sold        Gross Margin GrossMargin %
As reported (GAAP)                          $4,060       $6,777         62.5%
Adjusted for specified items:
Restructuring/Integration/Other              ($81)          $81          0.8%
As adjusted                                 $3,979       $6,858         63.3%

The adjusted gross margin ratio was 63.3 percent in the fourth quarter, a
decrease of 50 basis points from the prior year quarter due to the negative
impact of foreign exchange of 130 basis points.

Q4) What was the tax rate?

A4) The ongoing tax rate for the full year was 14.8 percent, in line with
previous guidance, as detailed below (dollars in millions):

                                  12M12
                          Pre-Tax Taxes on  Tax
                          Income  Earnings Rate
As reported (GAAP)         $6,263     $300  4.8%
Specified items            $3,266   $1,110 34.0%
Excluding specified items  $9,529   $1,410 14.8%

The ongoing tax rate for the fourth quarter was 14.3 percent, as detailed
below.

                                    4Q12
                          Pre-Tax Taxes on   Tax
                          Income  Earnings  Rate
As reported (GAAP)           $874   ($179) (20.5%)
Specified items            $1,951     $583   29.9%
Excluding specified items  $2,825     $404   14.3%

Q5) What are the key areas of focus in Abbott's diversified medical products
pipeline? 

A5) Abbott's diversified medical products pipeline includes revolutionary
medical technologies, next-generation diagnostic systems, new formulations,
new packaging, new flavors and other brand enhancements. Following are
highlights:

  *Vascular Devices

       *Abbott has one of the industry's most robust vascular pipelines and
         is working on well-staged incremental advances and transformational
         technologies that have the potential to restate the market.
       *Drug Eluting Stents (DES) – Abbott is the global leader in drug
         eluting stents with several leading products on the market and
         next-generation platforms in development. XIENCE Xpedition, our
         next-generation DES technology, features a new stent delivery system
         for enhanced deliverability as well as a broader size matrix. XIENCE
         Xpedition was launched in the U.S. earlier this month and also is
         available in Europe and parts of Asia and Latin America. We expect to
         launch XIENCE Xpedition in additional markets this year.
       *Bioresorbable Vascular Scaffold (BVS) – Absorb is the world's first
         drug eluting BVS for the treatment of coronary artery disease. It
         restores blood flow to the heart by opening a clogged vessel and
         providing support to the vessel until the device dissolves, leaving
         patients with a treated vessel that may resume more natural function
         and movement because it is free of a permanent metallic stent. Absorb
         is now launched in more than 30 countries across Europe and parts of
         Latin America and Asia, including India. In January, Abbott announced
         the initiation of its U.S. clinical trial, ABSORB III, which will be
         used to support the U.S. regulatory filing of Absorb.
       *Endovascular products – Abbott's endovascular business key product
         launches in 2012 included the Absolute Pro® Vascular Self-Expanding
         Stent System and the Omnilink Elite® Vascular Balloon-Expandable
         Stent System, both for the treatment of iliac artery disease, a form
         of peripheral artery disease (PAD) that affects the lower
         extremities. We continue to develop innovative products to treat PAD
         and expand indications for stents and vessel closure systems.
       *MitraClip – MitraClip® is a less invasive device for the treatment of
         select patients with mitral regurgitation (MR), the most common valve
         disease in the world. MR affects more than 8 million people in the
         United States and Europe, and is four times more prevalent than
         aortic stenosis. Abbott's MitraClip system is available in Europe and
         parts of Asia and is currently under U.S. FDA review.

  *Nutrition

       *Abbott is focused on six key areas through nutrition: immunity,
         cognition, lean body mass, inflammation, metabolism and tolerance.
         Through these platforms, we are helping to solve global health needs
         with nutrition science that matters to our customers. Demographic
         shifts also shape our innovation pipeline, as we focus on new and
         existing technologies to support the challenges of an aging
         population, including malnutrition, increase in chronic disease and
         the targeted needs of critical care. We have initiated more than 100
         clinical trials over the last three years.
       *We have expanded our R&D capabilities, reduced innovation cycle times
         and accelerated product introductions. In 2012 we launched 80
         products in key markets around the world. We're also expanding R&D
         infrastructure closer to our customers to deliver relevant regional
         innovation, and building external partnerships to expand on our core
         capabilities and identify emerging technologies.
       *Key highlights from the second half of 2012 include:

            *Continued the global roll-out of Similac Total Comfort with four
              additional launches in key markets: Hong Kong, Taiwan, Malaysia
              and Russia. With these launches, Similac Total Comfort is now
              available in 19 key international markets.
            *Initiated the global introduction of specialty tolerance
              products with first market launches of Similac Alimentum® in
              Singapore and Similac Spit-UpRelief™ in Saudi Arabia.
            *Continued to build our portfolio in India with the launch of
              Similac Stage 2 and HQPro, a protein powder product.
            *Completed the U.S. launch of Myoplex® Original and Lite
              Ready-To-Drink with Revigor®, Similac Liquid Protein Fortifier,
              as well as a ZonePerfect® brand redesign.

  *Established Pharmaceuticals

       *Abbott's large and growing portfolio of hundreds of established
         pharmaceuticals consists of trusted, well-known brands that have
         broad use throughout the world. Our strategy is focused on increasing
         access and being closer to patients and other customers by operating
         locally in each market and building country-specific portfolios made
         up of global and local pharmaceutical brands that best meet each
         local market's needs.
       *We continue to strengthen the depth and breadth of our established
         pharmaceuticals portfolio across several therapeutic areas including
         gastroenterology, women's health, cardiology, metabolic disorders and
         primary care. This includes launching new and improved formulations
         of our current trusted brands, such as Creon and Brufen, as well as
         launching new products, such as Amitiza®, a prescription medicine for
         the treatment of chronic constipation, which recently launched in
         Japan.
       *Over the next several years, we expect to bring these medicines to
         broader patient populations through registrations across multiple
         geographies, including key emerging markets. 

  *Diagnostics

       *Abbott is focusing on near-term launches of important automation
         solutions, such as its next-generation track system called
         ACCELERATOR a3600, to help improve efficiencies in the laboratory.
         These important innovations will play a critical role in reducing the
         time it takes for a test result to be delivered to the physician to
         aid in patient diagnosis. Recent launches include two new tests for
         the ARCHITECT platform: an innovative, highly sensitive troponin
         assay available outside the U.S. and a second-generation testosterone
         assay now available worldwide. Additionally, Abbott expects to launch
         assays in the areas of cardiac care, fertility, metabolics and
         infectious disease later this year, which will further broaden and
         differentiate its industry-leading menu.
       *Future growth for the Core Laboratory Diagnostics business will be
         driven by its next-generation blood screening, hematology and
         immunochemistry analyzers, as well as advanced automation and
         informatics solutions to provide high-quality results and
         information, while enhancing laboratory productivity and reducing
         costs.
       *Abbott expects to launch more than 15 new molecular diagnostic
         products over the next few years, including several novel oncology,
         infectious disease and companion diagnostic assays.

  *Vision Care

       *Abbott expects numerous new products and technology advancements over
         the next five years from its cataract, refractive and corneal
         business units. In its market-leading LASIK business, Abbott is
         expanding its proprietary laser platform into new vision correction
         applications, including cataract surgery. Abbott also continues to
         expand its portfolio of cataract technologies which includes
         intraocular lenses (IOLs), phacoemulsification systems and
         viscoelastics.
       *Key highlights of 2012 include:

            *Completed the European launch of the TECNIS ® Multifocal Toric
              1-Piece IOL, which is the latest advancement in the TECNIS
              portfolio of high-quality IOLs. The TECNIS iTec Preloaded
              Delivery System, also launched in Europe, allows a cataract
              surgeon to implant the TECNIS 1-Piece IOL safely into the eye
              through a smaller incision.
            *Received U.S. FDA clearance to use Abbott's iFS Advanced
              Femtosecond Laser in cataract surgery, giving surgeons the
              ability to make precise, bladeless bow-shaper or curved arcuate
              incisions during surgery and customize for each individual
              patient.
            *Received FDA approval of Healon ® EndoCoat OVD, a device
              intended for use as a surgical aid in cataract extraction and
              IOL implantation.
            *Launched in Europe and Japan the iDesign Advanced WaveScan
              Studio aberrometer, a next-generation diagnostic tool for
              mapping and analyzing corneal aberrations in the eye.

Website: http://www.abbott.com
Contact: Abbott, Financial, Brian Yoor, +1-847-937-6343, or Tina Ventura,
+1-847-935-9390, or Media, Melissa Brotz, +1-847-935-3456, or Scott Stoffel,
+1-847-936-9502, or AbbVie, Financial, Larry Peepo, +1-847-935-6722, or Media,
Adelle Infante, +1-847-938-8745