In the first quarter of 1999, Novartis Group sales from continuing businesses reached CHF 7.9 billion, an increase of 1% in local currencies (-1% in Swiss francs). Healthcare sales grew 6%, despite the negative currency development seen in Brazil, and Consumer Health increased sales by 8%. The quarter was, however, marked by difficult market conditions in Agribusiness.

Novartis' efforts to focus its business portfolio and prioritize its resources have led to the sustained performance of key growth drivers in Pharmaceuticals and to a strong upturn in the new, streamlined Consumer Health Division.

Healthcare (+6% in local currencies)

In Pharmaceuticals (+5%), resources were shifted to strategic products to continue the dynamic
performance of key growth drivers. Grouped together, sales of these products rose 17%, with an
increased proportion coming from the US. In particular, the new class antihypertensive Diovan®
and Co-Diovan® (Diovan combined with the diuretic hydrochlorothiazide) jumped 111% in the
rapidly expanding angiotensin II receptor blocker category. This outstanding performance will be
further driven by an increase in the specialized and dedicated cardiovascular field force. Other
growth drivers, including Aredia® (bone metastasis, +58%), Lamisil® (fungal infections, +28%),
Foradil® (Asthma, +24%), Sandostatin® (acromegaly, +18%) and Miacalcic® (osteoporosis,
+14%), all posted strong sales. Lescol® (+12%) benefited from the successful launch in Japan
(Lochol®) and the product's repositioning following FDA approval for its use in the reduction of
triglycerides and apolipoprotein B. Sandimmun®/Neoral® (transplantation, +11%) continued to
grow well, particularly in the US in spite of generic competition. As expected, sales of Voltaren®
(anti-rheumatic, -11%) declined as a result of patent expiration and recently increased competition.

In regional terms, Europe, especially Germany and Spain, performed well. Comtan® the new
treatment for Parkinson's disease, was introduced in its first markets in Europe. In the US, the
outstanding performance of key growth drivers more than offset the drop in sales of older products. Sandostatin LAR®, a once-a-month therapy for acromegaly, was successfully launched in the US in January. Latin America, in particular Brazil, which reports in US dollars, was affected by the adverse economic situation. In contrast, Japan reported excellent growth, boosted by the recent launch of Lochol® and market penetration by Lamisil®.

In Generics (+15%), retail generics developed impressively, spurred by the substantial growth of
Geneva in the US and Azupharma in Germany. Biochemie's finished drugs business grew
significantly worldwide. Sales of bulk generics and intermediates showed satisfactory growth,
primarily thanks to the development of the cefalosporin business.

CIBA Vision (+2%) was driven by Ophthalmics, Focus® Monthly Toric (monthly disposable soft
contact lenses to correct astigmatism) and the continued success of Focus® DAILIES(TM) (daily
disposable contact lenses), which were recently launched in several major European markets. The
conventional lens and lens-care businesses faced strong competition particularly in the US.
Performance in Japan and in the Nordic countries was very strong. Initial responses to Focus®
NIGHT & DAY(TM), the revolutionary extended-wear lenses recently introduced in Spain and
Mexico, have been very positive.

Agribusiness (-8% in local currencies)

In Crop Protection (-8%), the weak farming economy in the US, acreage reductions in Europe and
strong competition had a significant impact, particularly on Herbicides and Fungicides. Sales were also affected by the economic crises in some Eastern European markets. Sales development was positive in Brazil, and dynamic in Japan and Australia. A sharp focus on key strategic products helped to lift sales in Insecticides. Actara®/Cruiser®, a key future product in Insecticides/Seed Treatment, has now received registration in 14 countries.

Seeds (-9%) was also hit by acreage reductions in addition to heavy market pressures, mainly in
corn and soybeans, resulting from the weak farming economy, major industry consolidation and
difficulties with the acceptance of genetically improved varieties in Europe. Strong growth was
achieved in vegetables, sugar beet and sunflowers.

Sales in Animal Health (-4%) were negatively affected by inventory reductions in the US. Strong
growth in the farm animal segment lifted sales in the Asia Pacific region. Sentinel®, the combined flea, intestinal and heart worm treatment for pets, continued to expand its share of the main markets in North America.

Consumer Health (+8% in local currencies)

The new Consumer Health Division has made an impressive start to the year. OTC sales grew well, particularly in the US, driven by the cough and cold brands. In March, The FDA approved
over-the-counter availability for Lamisil® cream, making this the first product for athlete's foot to be switched from prescription-only to OTC status in the US for almost a decade. Medical Nutrition
posted remarkable growth. In particular, Health Care Food Services expanded geographically and
increased market penetration. In Health & Functional Foods, good growth was driven by Gerber®
and the Health Food brands Gerble®, Gerlinea®and Pesoforma®. The divestments of the
remaining non-core nutrition brands Wasa® and Eden® are progressing as planned.

Outlook

Novartis will intensify its strategy of further focusing and committing resources to key assets by
increasing investments in its product growth drivers. The company anticipates continued good sales growth in Healthcare and Consumer Health for the full year in 1999, with overall operating income above the previous year's level.

Novartis is a world leader in Life Sciences with core businesses in Healthcare, Agribusiness and
Consumer Health. In 1998, Novartis Group sales were CHF 31.7 billion, of which CHF 17.5
billion were in Healthcare, CHF 8.4 billion in Agribusiness and CHF 5.8 billion in Consumer Health. The Group annually invests more than CHF 3.7 billion in R&D. Headquartered in Basel,
Switzerland, Novartis employs about 82,000 people and operates in over 100 countries around the
world.

NOVARTIS GROUP
First Quarter Sales

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