Boston Scientific Announces Results for Fourth Quarter and Year Ended December 31, 2007
PRNewswire-FirstCall
NATICK, Mass.
(NYSE:BSX)

NATICK, Mass., Feb. 4 /PRNewswire-FirstCall/ -- Boston Scientific Corporation (NYSE: BSX) today announced financial results for the fourth quarter and full year ended December 31, 2007, as well as guidance for net sales and earnings per share (EPS) for the first quarter of 2008.

  Fourth quarter highlights:

  -- Achieved adjusted EPS of $0.24 and record net sales of $2.152 billion,
     both exceeding most recently issued guidance
  -- Grew cardiac rhythm management (CRM) sales 11 percent
  -- Achieved 10 percent overall sales growth in product lines excluding
     drug-eluting stents (DES) and CRM
  -- Maintained leading position in the worldwide DES market
  -- Launched restructuring program to reduce expenses and head count
  -- Received CE Mark approvals for the use of the TAXUS® Liberte™
     stent system in diabetic patients, the CONFIENT™ ICD and the
     LIVIAN™ CRT-D

"The turn that began last quarter continued this quarter, with strong adjusted earnings and record sales," said Jim Tobin, President and Chief Executive Officer of Boston Scientific. "For the year, we made substantial progress toward our goals of increasing shareholder value, restoring profitable sales growth and strengthening Boston Scientific for the future. We implemented a series of initiatives designed to focus and simplify our business, including expense and head count reductions and the sale of non- strategic assets. We reported record sales, and we achieved the leadership position in the global stent market. Perhaps our most meaningful progress came in quality, where we revolutionized our approach and changed our culture. Many of the steps we took in 2007 will help position us for the challenges and opportunities of 2008 and beyond. In 2008, those opportunities are expected to include the introduction of a number of important new CRM products, the lifting of the Corporate Warning Letter, the approval of the TAXUS Liberte and PROMUS™ stent systems by the FDA, and the launch of profitable new products across our businesses."

Fourth Quarter 2007

Net sales for the fourth quarter of 2007 were $2.152 billion, as compared to $2.065 billion for the fourth quarter of 2006. Worldwide sales of the Company's drug-eluting coronary stent systems were $435 million, as compared to $506 million. U.S. sales of drug-eluting coronary stent systems were $224 million, as compared to $329 million. International sales of drug-eluting coronary stent systems were $211 million, as compared to $177 million. Worldwide sales of coronary stent systems were $496 million, as compared to $550 million. U.S. sales of coronary stent systems were $250 million, as compared to $347 million. International sales of coronary stent systems were $246 million, as compared to $203 million.

Worldwide sales of the Company's CRM business for the fourth quarter of 2007 were $544 million, which included $396 million of implantable cardioverter defibrillator (ICD) sales, as compared to worldwide CRM sales of $489 million for the fourth quarter of 2006, which included $356 million of ICD sales. U.S. CRM sales were $347 million, which included $266 million of ICD sales, as compared to $320 million, which included $250 million of ICD sales. International CRM sales were $197 million, which included $130 million of ICD sales, as compared to $169 million, which included $106 million of ICD sales.

Reported net loss for the fourth quarter of 2007 was $458 million, or $0.31 per share. Reported results included acquisition, divestiture, litigation and restructuring-related charges and amortization expense (pre-tax) of $939 million, or $0.55 per share, which consisted of:

  -- $208 million, primarily non-cash, associated with the write down of
     goodwill in connection with business divestitures;
  -- $8 million of other net acquisition-related charges;
  -- $365 million attributable to estimated potential losses associated with
     patent litigation involving the Company's Interventional Cardiology
     business;
  -- $184 million of restructuring charges associated with the Company's
     expense and head count reduction initiatives; and
  -- $174 million of amortization expense.

Adjusted net income for the quarter, excluding these charges and amortization expense, was $355 million, or $0.24 per share.

Reported net income for the fourth quarter of 2006 was $277 million, or $0.19 per share. Reported results included charges associated with the Company's 2006 acquisition of Guidant Corporation and amortization expense (pre-tax) of $197 million, or $0.11 per share. Adjusted net income for the fourth quarter of 2006, excluding these charges and amortization expense, was $442 million, or $0.30 per share.

Full Year 2007

Net sales for the full year 2007 were $8.357 billion, as compared to $7.821 billion in 2006. Worldwide sales of the Company's drug-eluting coronary stent systems were $1.788 billion, as compared to $2.358 billion. U.S. sales of drug-eluting coronary stent systems were $1.006 billion, as compared to $1.561 billion. International sales of drug-eluting coronary stent systems were $782 million, as compared to $797 million. Worldwide sales of coronary stent systems were $2.027 billion, as compared to $2.506 billion. U.S. sales of coronary stent systems were $1.110 billion, as compared to $1.613 billion. International sales of coronary stent systems were $917 million, as compared to $893 million.

Worldwide sales of the Company's CRM business in 2007 were $2.124 billion, which included $1.542 billion of ICD sales, as compared to $1.371 billion in 2006, which included $988 million of ICD sales. On a pro forma basis for 2006 -- as though the Company had acquired Guidant on January 1, 2006 -- CRM sales were $2.026 billion, which included $1.473 billion of ICD sales. U.S. CRM sales in 2007 were $1.371 billion, which included $1.053 billion of ICD sales, as compared to U.S. CRM sales of $908 million, which included $696 million of ICD sales. Pro forma U.S. CRM sales were $1.358 billion, which included $1.053 billion of ICD sales. International CRM sales in 2007 were $753 million, which included $489 million of ICD sales, as compared to international CRM sales of $463 million, which included $292 million of ICD sales. Pro forma international CRM sales were $668 million, which included $420 million of ICD sales.

Reported net loss for 2007 was $495 million, or $0.33 per share. Reported results for 2007 included acquisition, divestiture, litigation and restructuring-related charges, and amortization expense (pre-tax) of $1.9 billion, or $1.10 per share, which consisted of:

  -- $560 million, primarily non-cash, associated with the write down of
     goodwill in connection with business divestitures;
  -- $85 million in-process research and development write offs, related
     primarily to the Company's acquisition of Remon Medical Technologies,
     Inc.;
  -- $37 million related to the Company's acquisition of Guidant;
  -- $365 million attributable to estimated potential losses associated with
     patent litigation involving the Company's Interventional Cardiology
     business;
  -- $184 million of restructuring charges associated with the Company's
     expense and head count reduction initiatives; and
  -- $641 million of amortization expense.

Adjusted net income for 2007, excluding these charges and amortization expense, was $1.2 billion, or $0.77 per share.

Reported net loss for 2006 was $3.6 billion, or $2.81 per share. Reported results for 2006 included acquisition-related charges and amortization expense (pre-tax) of $5.2 billion, or $3.90 per share. Adjusted net income for 2006, excluding these charges and amortization expense, was $1.4 billion, or $1.09 per share.

Guidance for First Quarter 2008

The Company estimates net sales for the first quarter of 2008 of between $1.96 billion and $2.08 billion. Adjusted earnings, excluding acquisition, divestiture, litigation and restructuring-related charges, and amortization expense, are estimated to range between $0.15 and $0.20 per share. The Company estimates net income on a GAAP basis of between $0.13 and $0.18 per share.

Full-year 2008 sales and earnings per share guidance will be provided during the Company's conference call with analysts tomorrow.

Boston Scientific officials will be discussing these results with analysts on a conference call at 8:30 am. (ET) Tuesday, February 5, 2008. The Company will webcast the call to all interested parties through its website: http://www.bostonscientific.com/. Please see the website for details on how to access the webcast. The webcast will be available for one year on the Boston Scientific website.

Boston Scientific is a worldwide developer, manufacturer and marketer of medical devices whose products are used in a broad range of interventional medical specialties. For more information, please visit: http://www.bostonscientific.com/.

Cautionary Statement Regarding Forward Looking Statements

This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. Forward-looking statements may be identified by words like "anticipate," "expect," "project," "believe," "plan," "estimate," "intend" and similar words. These forward- looking statements are based on our beliefs, assumptions and estimates using information available to us at the time and are not intended to be guarantees of future events or performance. These forward-looking statements include, among other things, statements regarding our financial performance, our restructuring plan, our programs to increase shareholder value, new product approvals, litigation, our growth strategy, market recovery and our market position. If our underlying assumptions turn out to be incorrect, or if certain risks or uncertainties materialize, actual results could vary materially from the expectations and projections expressed or implied by our forward-looking statements. These factors, in some cases, have affected and in the future (together with other factors) could affect our ability to implement our business strategy and may cause actual results to differ materially from those contemplated by the statements expressed in this press release. As a result, readers are cautioned not to place undue reliance on any of our forward-looking statements.

Factors that may cause such differences include, among other things: future economic, competitive, reimbursement and regulatory conditions; new product introductions; demographic trends; intellectual property; litigation; financial market conditions; and, future business decisions made by us and our competitors. All of these factors are difficult or impossible to predict accurately and many of them are beyond our control. For a further list and description of these and other important risks and uncertainties that may affect our future operations, see Part I, Item IA- Risk Factors in our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission, which we may update in Part II, Item 1A - Risk Factors in Quarterly Reports on Form 10-Q we have filed or will file thereafter. We disclaim any intention or obligation to publicly update or revise any forward- looking statements to reflect any change in our expectations or in events, conditions, or circumstances on which those expectations may be based, or that may affect the likelihood that actual results will differ from those contained in the forward-looking statements. This cautionary statement is applicable to all forward-looking statements contained in this document.

Use of non-GAAP Financial Information

To supplement Boston Scientific's consolidated condensed financial statements presented on a GAAP basis, the Company discloses certain non-GAAP measures that exclude certain charges, including non-GAAP net income/loss and non-GAAP net income/loss per diluted share. These non-GAAP measures are not in accordance with, or an alternative for, generally accepted accounting principles in the United States. A reconciliation of the non-GAAP financial measures to the corresponding GAAP measures is included in the tables below. In addition, an explanation of the ways in which Boston Scientific management uses these non-GAAP measures to evaluate its business, the substance behind Boston Scientific management's decision to use these non-GAAP measures, the material limitations associated with the use of these non-GAAP measures, the manner in which Boston Scientific management compensates for those limitations, and the substantive reasons why Boston Scientific management believes that these non-GAAP measures provide useful information to investors is included under "Use of Non-GAAP Financial Measures" after the tables below. This additional non-GAAP financial information is not meant to be considered in isolation or as a substitute for financial information prepared in accordance with GAAP.

   CONTACT:

   Paul Donovan
   508-650-8541 (office)
   508-667-5165 (mobile)
   Media Relations
   Boston Scientific Corporation

   Dan Brennan
   508-650-8538 (office)
   Investor Relations
   Boston Scientific Corporation



                      BOSTON SCIENTIFIC CORPORATION
                   CONDENSED GAAP RESULTS OF OPERATIONS
                               (Unaudited)

                                                      Three Months Ended
                                                        December 31,
  In millions, except per share data                2007              2006

  Net sales                                       $2,152            $2,065
  Cost of products sold                              635               526
  Gross profit                                     1,517             1,539

  Operating expenses
    Selling, general and administrative expenses     704               758
    Research and development expenses                256               267
    Royalty expense                                   51                54
    Amortization expense                             174               174
    Purchased research and development                13                 2
    Restructuring charges                            176
    Litigation-related charges                       365
    Loss on assets held for sale                     208
                                                   1,947             1,255

  Operating (loss) income                           (430)              284

  Other income (expense):
    Interest expense                                (137)             (144)
    Other, net                                       (29)               29

  (Loss) income before income taxes                 (596)              169
    Income tax benefit                              (138)             (108)
  Net (loss) income                                $(458)             $277

  Net (loss) income per common share -
   assuming dilution                              $(0.31)            $0.19

  Weighted average shares outstanding -
   assuming dilution                             1,490.8           1,493.6



                      BOSTON SCIENTIFIC CORPORATION
NON-GAAP NET (LOSS) INCOME AND NET (LOSS) INCOME PER SHARE RECONCILIATIONS
                               (Unaudited)

  An explanation of the ways in which Boston Scientific management uses
  these non-GAAP measures to evaluate its business, the substance behind
  Boston Scientific management's decision to use these non-GAAP measures,
  the material limitations associated with the use of these non-GAAP
  measures, the manner in which Boston Scientific management compensates for
  those limitations, and the substantive reasons why Boston Scientific
  management believes that these non-GAAP measures provide useful
  information to investors is included in the exhibit labeled "Use of Non-
  GAAP Financial Measures.


                                       Three Months Ended Three Months Ended
                                       December 31, 2007  December 31, 2006
                                         Net   Impact per        Impact per
                                        income  diluted      Net  diluted
  In millions, except per share data    (loss)   share     income  share

  GAAP results                          $(458)  $(0.31)     $277   $0.19
  Non-GAAP adjustments:
    Acquisition and divestiture-
     related charges                      211     0.14        23    0.02
    Restructuring charges                 131     0.09
    Litigation-related charges            294     0.20
    Amortization expense                  177     0.12       142    0.09
  Adjusted results                       $355    $0.24 (1)  $442   $0.30

  (1) Calculated by assuming stock-based dilution of 9.0 million shares



                                                     Three Months Ended
                                                        December 31,
                                                    2007            2006
  Acquisition and divestiture-related charges:
    Loss on assets held for sale                    $208
    Purchased research and development                13               2
    Integration costs (a)                             (5)            $19
    Business optimization charges (b)                                 19
    Step-up value of inventory sold ( c )                            (12)
    Fair-value adjustment for the sharing
     of proceeds feature of the Abbott
     Laboratories stock purchase (d)                                  (5)
                                                     216              23
      Income tax benefit (f)                          (5)              -
  Acquisition and divestiture-related
   charges, net of tax                              $211             $23

  Restructuring charges:
    Restructuring charges (e)                       $184
      Income tax benefit (f)                         (53)
  Restructuring charges, net of tax                 $131

  Litigation-related charges:
    Litigation-related charges                      $365
      Income tax benefit (f)                         (71)
  Litigation-related charges, net of tax            $294

  Amortization expense:
    Amortization expense                            $174            $174
      Income tax expense (benefit) (f)                 3             (32)
  Amortization expense, net of tax                  $177            $142


  (a)   Recorded credits of $4 million in 2007 to selling, general and
        administrative expenses and $1 million to research and development
        expenses; recorded expenses of $2 million in 2006 to cost of
        products sold, $7 million to selling, general and administrative
        expenses and $10 million to research and development expenses.

  (b)   Recorded to selling, general and administrative expenses.

  ( c ) Recorded to cost of products sold.

  (d)   Recorded to other, net.

  (e)   Recorded $176 million to restructuring charges in 2007, $4 million
        to selling, general and administrative expenses, $2 million to cost
        of products sold, and $2 million to research and development
        expenses.

  (f)   Amounts are tax effected at the Company's effective tax rate, unless
        the amount is a significant unusual or infrequently occurring item
        in accordance with FASB Interpretation No. 18, "Accounting for
        Income Taxes in Interim Periods.



                      BOSTON SCIENTIFIC CORPORATION
                   CONDENSED GAAP RESULTS OF OPERATIONS
                               (Unaudited)

                                                         Year Ended
                                                        December 31,
  In millions, except per share data                2007              2006

  Net sales                                       $8,357            $7,821
  Cost of products sold                            2,342             2,207
  Gross profit                                     6,015             5,614

  Operating expenses
    Selling, general and administrative expenses   2,909             2,675
    Research and development expenses              1,091             1,008
    Royalty expense                                  202               231
    Amortization expense                             641               530
    Purchased research and development                85             4,119
    Restructuring charges                            176
    Litigation-related charges                       365
    Loss on assets held for sale                     560
                                                   6,029             8,563

  Operating loss                                     (14)           (2,949)

  Other income (expense):
    Interest expense                                (570)             (435)
    Other, net                                        15              (151)

  Loss before income taxes                          (569)           (3,535)
    Income tax (benefit) expense                     (74)               42
  Net loss                                         $(495)          $(3,577)


  Net loss per common share - assuming dilution   $(0.33)           $(2.81)

  Weighted average shares outstanding -
   assuming dilution                             1,486.9           1,273.7



                      BOSTON SCIENTIFIC CORPORATION
    NON-GAAP NET (LOSS) INCOME AND NET (LOSS) INCOME PER COMMON SHARE
                             RECONCILIATIONS
                               (Unaudited)

  An explanation of the ways in which Boston Scientific management uses
  these non-GAAP measures to evaluate its business, the substance behind
  Boston Scientific management's decision to use these non-GAAP measures,
  the material limitations associated with the use of these non-GAAP
  measures, the manner in which Boston Scientific management compensates for
  those limitations, and the substantive reasons why Boston Scientific
  management believes that these non-GAAP measures provide useful
  information to investors is included in the exhibit labeled "Use of Non-
  GAAP Financial Measures.


                                   Year Ended             Year Ended
                               December 31, 2007       December 31, 2006
                                         Impact per              Impact per
  In millions, except per      Net income diluted     Net income  diluted
   share data                    (loss)    share        (loss)     share

  GAAP results                   $(495)   $(0.33)      $(3,577)   $(2.81)
  Non-GAAP adjustments:
    Acquisition and
     divestiture-related
     charges                       667      0.44         4,566      3.58
    Restructuring charges          131      0.09
    Litigation-related charges     294      0.20
    Amortization expense           560      0.37           421      0.32
  Adjusted results              $1,157     $0.77 (1)    $1,410     $1.09 (2)


  (1) Calculated by assuming stock-based dilution of 13.1 million shares

  (2) Calculated by assuming stock-based dilution of 15.6 million shares



                      BOSTON SCIENTIFIC CORPORATION
        NON-GAAP NET (LOSS) INCOME AND NET (LOSS) INCOME PER SHARE
                         RECONCILIATIONS (CONT.)
                               (Unaudited)

                                                         Year Ended
                                                        December 31,
                                                   2007               2006
  Acquisition and divestiture-related charges:
    Loss on assets held for sale                   $560
    Purchased research and development               85             $4,186
    Integration costs (a)                            29                 61
    Fair-value adjustment for the sharing
     of proceeds feature of the Abbott
     Laboratories stock purchase (b)                  8                 95
    Step-up value of inventory sold (c)                                267
    CRM technology offering charge (c)                                  31
    Charitable donation (b)                                              5
    Business optimization charges (d)                                   19
    AAA program cancellation net credit (e)                            (36)
                                                    682              4,628
      Income tax benefit (g)                        (15)               (62)
  Acquisition and divestiture-related
   charges, net of tax                             $667             $4,566

  Restructuring charges:
    Restructuring charges (f)                      $184
      Income tax benefit (g)                        (53)
  Restructuring charges, net of tax                $131

  Litigation-related charges:
    Litigation-related charges                     $365
      Income tax benefit (g)                        (71)
  Litigation-related charges, net of tax           $294

  Amortization expense:
    Amortization expense                           $641               $530
      Income tax benefit (g)                        (81)              (109)
  Amortization expense, net of tax                 $560               $421


  (a)   Recorded $6 million in 2007 to cost of products sold, $20 million to
        selling, general and administrative expenses and $3 million to
        research and development expenses; recorded $2 million in 2006 to
        cost of products sold, $46 million to selling, general and
        administrative expenses, and $13 million to research and development
        expenses.

  (b)   Recorded to other, net.

  ( c ) Recorded to cost of products sold.

  (d)   Recorded in 2006 to selling, general and administrative expenses.

  (e)   Recorded a credit of $67 million to purchased research and
        development and a charge of $31 million to research and development
        expenses.

  (f)   Recorded $176 million to restructuring charges in 2007, $4 million
        to selling, general and administrative expenses, $2 million to cost
        of products sold, and $2 million to research and development
        expenses.

  (g)   Amounts are tax effected at the Company's effective tax rate, unless
        the amount is a significant unusual or infrequently occurring item
        in accordance with FASB Interpretation No. 18, "Accounting for
        Income Taxes in Interim Periods.



                      BOSTON SCIENTIFIC CORPORATION
                  CONDENSED CONSOLIDATED BALANCE SHEETS
                               (Unaudited)

                                                         December 31,
  In millions                                       2007              2006

  Assets
  Current assets:
    Cash and cash equivalents                     $1,452            $1,668
    Trade accounts receivable, net                 1,502             1,388
    Inventories                                      725               684
    Deferred income taxes                            963               583
    Assets held for sale                           1,099             1,447
    Other current assets                             464               474
      Total current assets                         6,205             6,244

  Property, plant and equipment, net               1,735             1,644
  Investments                                        317               596
  Other assets                                       157               234
  Intangible assets, net                          23,067            22,378
                                                 $31,481           $31,096

  Liabilities and Stockholders' Equity
  Current liabilities:
    Borrowings due within one year                  $256                $7
    Accounts payable and accrued expenses          2,680             2,020
    Liabilities associated with assets
     held for sale                                    71                93
    Other current liabilities                        275               552
      Total current liabilities                    3,282             2,672

  Long-term debt                                   7,933             8,895
  Deferred income taxes                            2,536             2,743
  Other long-term liabilities                      2,633             1,488

  Stockholders' equity                            15,097            15,298
                                                 $31,481           $31,096



                      BOSTON SCIENTIFIC CORPORATION
                             WORLDWIDE SALES
                               (Unaudited)

                                   Three Months Ended
                                        December 31,            Change
                                                       As Reported  Constant
                                                        Currency    Currency
  In millions                          2007      2006     Basis       Basis

  DOMESTIC                           $1,226    $1,261      (3%)        (3%)

    Europe                              479       426      13%          1%
    Asia Pacific                        326       262      24%         18%
    Inter-Continental                   121       116       4%         (6%)
  INTERNATIONAL                         926       804      15%          6%

  WORLDWIDE                          $2,152    $2,065       4%          1%


                                   Three Months Ended
                                        December 31,            Change
                                                       As Reported  Constant
                                                        Currency    Currency
  In millions                          2007      2006     Basis       Basis

    Interventional Cardiology          $785      $831      (6%)        (9%)
    Peripheral Interventions/
     Vascular Surgery                   158       160      (1%)        (5%)
    Electrophysiology                    38        35      11%          8%
    Neurovascular                        92        83      10%          5%
    Cardiac Surgery                      50        49       3%          3%
    Cardiac Rhythm Management           544       489      11%          7%
  CARDIOVASCULAR                      1,667     1,647       1%         (2%)

    Oncology                             60        55       8%          4%
    Endoscopy                           223       198      13%          8%
    Urology                             108        98      10%          8%
  ENDOSURGERY                           391       351      11%          7%

  NEUROMODULATION                        94        67      40%         38%

  WORLDWIDE                          $2,152    $2,065       4%          1%

  Growth rates are based on actual, non-rounded amounts



                      BOSTON SCIENTIFIC CORPORATION
                             WORLDWIDE SALES
                               (Unaudited)

                                        Year Ended
                                        December 31,           Change
                                                      As Reported   Constant
                                                        Currency    Currency
  In millions                          2007      2006     Basis       Basis

  DOMESTIC                           $4,923    $4,840       2%          2%

    Europe                            1,807     1,576      15%          5%
    Asia Pacific                      1,176       948      24%         23%
    Inter-Continental                   451       457      (1%)        (6%)
  INTERNATIONAL                       3,434     2,981      15%          9%

  WORLDWIDE                          $8,357    $7,821       7%          5%


                                        Year Ended
                                        December 31,           Change
                                                      As Reported   Constant
                                                        Currency    Currency
  In millions                          2007      2006     Basis       Basis

    Interventional Cardiology        $3,117    $3,612     (14%)       (15%)
    Peripheral Interventions/
     Vascular Surgery                   627       666      (6%)        (9%)
    Electrophysiology                   147       134      10%          8%
    Neurovascular                       352       326       8%          4%
    Cardiac Surgery                     194       132      47%         47%
    Cardiac Rhythm Management         2,124     1,371      55%         51%
  CARDIOVASCULAR                      6,561     6,241       5%          3%

    Oncology                            233       221       5%          3%
    Endoscopy                           843       754      12%          9%
    Urology                             403       371       9%          8%
  ENDOSURGERY                         1,479     1,346      10%          7%

  NEUROMODULATION                       317       234      36%         33%

  WORLDWIDE                          $8,357    $7,821       7%          5%

  Growth rates are based on actual, non-rounded amounts



                      BOSTON SCIENTIFIC CORPORATION
           NON-GAAP CONSTANT CURRENCY NET SALES RECONCILIATIONS
                               (Unaudited)

                                    Q4 2007 Net Sales as compared to Q4 2006
                                             Change             Estimated
                                      As Reported Constant      Impact of
                                       Currency   Currency       Foreign
  In millions                            Basis      Basis        Currency

  DOMESTIC                               $(35)      $(35)

    Europe                                 53          6           $47
    Asia Pacific                           64         48            16
    Inter-Continental                       5         (7)           12
  INTERNATIONAL                           122         47            75

  WORLDWIDE                               $87        $12           $75


                                    Q4 2007 Net Sales as compared to Q4 2006
                                              Change            Estimated
                                      As Reported Constant      Impact of
                                       Currency   Currency       Foreign
  In millions                            Basis      Basis        Currency

    Interventional Cardiology            $(46)      $(74)          $28
    Peripheral Interventions/
     Vascular Surgery                      (2)        (8)            6
    Electrophysiology                       3          3             -
    Neurovascular                           9          3             6
    Cardiac Surgery                         1          2            (1)
    Cardiac Rhythm Management              55         36            19
  CARDIOVASCULAR                           20        (38)           58

    Oncology                                5          2             3
    Endoscopy                              25         15            10
    Urology                                10          8             2
  ENDOSURGERY                              40         25            15

  NEUROMODULATION                          27          25            2

  WORLDWIDE                               $87         $12          $75


  An explanation of the ways in which Boston Scientific management uses
  these non-GAAP measures to evaluate its business, the substance behind
  Boston Scientific management's decision to use these non-GAAP measures,
  the material limitations associated with the use of these non-GAAP
  measures, the manner in which Boston Scientific management compensates for
  those limitations, and the substantive reasons why Boston Scientific
  management believes that these non-GAAP measures provide useful
  information to investors is included in the exhibit labeled "Use of Non-
  GAAP Financial Measures.



                      BOSTON SCIENTIFIC CORPORATION
           NON-GAAP CONSTANT CURRENCY NET SALES RECONCILIATIONS
                               (Unaudited)

                                       2007 Net Sales as compared to 2006
                                                 Change          Estimated
                                        As Reported   Constant   Impact of
                                         Currency     Currency    Foreign
  In millions                              Basis        Basis     Currency

  DOMESTIC                                  $83          $83

    Europe                                  231           87        $144
    Asia Pacific                            228          214          14
    Inter-Continental                        (6)         (28)         22
  INTERNATIONAL                             453          273         180

  WORLDWIDE                                $536        $356       $180


                                       2007 Net Sales as compared to 2006
                                                 Change          Estimated
                                        As Reported   Constant   Impact of
                                         Currency     Currency    Foreign
  In millions                              Basis        Basis     Currency

    Interventional Cardiology             $(495)       $(555)        $60
    Peripheral Interventions/
     Vascular Surgery                       (39)         (57)         18
    Electrophysiology                        13           11           2
    Neurovascular                            26           15          11
    Cardiac Surgery                          62           62           -
    Cardiac Rhythm Management               753          702          51
  CARDIOVASCULAR                            320          178         142

    Oncology                                 12            7           5
    Endoscopy                                89           65          24
    Urology                                  32           28           4
  ENDOSURGERY                               133          100          33

  NEUROMODULATION                            83           78           5

  WORLDWIDE                                $536         $356        $180


  An explanation of the ways in which Boston Scientific management uses
  these non-GAAP measures to evaluate its business, the substance behind
  Boston Scientific management's decision to use these non-GAAP measures,
  the material limitations associated with the use of these non-GAAP
  measures, the manner in which Boston Scientific management compensates for
  those limitations, and the substantive reasons why Boston Scientific
  management believes that these non-GAAP measures provide useful
  information to investors is included in the exhibit labeled "Use of Non-
  GAAP Financial Measures.



                      BOSTON SCIENTIFIC CORPORATION
         ESTIMATED NON-GAAP NET INCOME PER SHARE RECONCILIATIONS
                               (Unaudited)

                                        Q1 2008 Estimate   Q1 2008 Estimate
                                             (Low)              (High)
  GAAP results                               $0.13              $0.18

  Estimated acquisition and
   divestiture-related net gains             (0.07)             (0.07)
  Estimated restructuring charges             0.02               0.02
  Estimated amortization expense              0.07               0.07

  Adjusted results                           $0.15              $0.20

  An explanation of the ways in which Boston Scientific management uses
  these non-GAAP measures to evaluate its business, the substance behind
  Boston Scientific management's decision to use these non-GAAP measures,
  the material limitations associated with the use of these non-GAAP
  measures, the manner in which Boston Scientific management compensates for
  those limitations, and the substantive reasons why Boston Scientific
  management believes that these non-GAAP measures provide useful
  information to investors is included in the exhibit labeled "Use of Non-
  GAAP Financial Measures.



  Use of Non-GAAP Financial Measures

  To supplement Boston Scientific's consolidated condensed financial
  statements presented on a GAAP basis; the Company discloses certain non-
  GAAP measures that exclude certain amounts, including non-GAAP net income,
  non-GAAP net income per diluted share, and regional and divisional revenue
  growth rates that exclude the impact of foreign exchange. These non-GAAP
  measures are not in accordance with, or an alternative for, generally
  accepted accounting principles in the United States.

  The GAAP measure most comparable to non-GAAP net income is GAAP net income
  and the GAAP measure most comparable to non-GAAP net income per diluted
  share is GAAP net income per diluted share. Reconciliations of each of
  these non-GAAP financial measures to the corresponding GAAP measure are
  included in the accompanying schedules.

  To calculate regional and divisional revenue growth rates that exclude the
  impact of foreign exchange, the Company converts actual current-period net
  sales from local currency to U.S. dollars using constant foreign exchange
  rates. The GAAP measure most comparable to this non-GAAP measure is growth
  rate percentages based on GAAP revenue. A reconciliation of this non-GAAP
  financial measure to the corresponding GAAP measure is included in the
  accompanying schedules.

  Use and Economic Substance of Non-GAAP Financial Measures Used by Boston
   Scientific
  Management uses these supplemental non-GAAP measures to evaluate
  performance period over period, to analyze the underlying trends in the
  Company's business, to assess its performance relative to its competitors,
  and to establish operational goals and forecasts that are used in
  allocating resources. In addition, management uses these non-GAAP measures
  to further its understanding of the performance of the Company's operating
  segments. The adjustments excluded from the Company's non-GAAP measures
  are consistent with those excluded from its reportable segments' measure
  of profit or loss. These adjustments are excluded from the segment
  measures that are reported to the Company's chief operating decision maker
  and are used to make operating decisions and assess performance.

  The following is an explanation of each of the adjustments that management
  excluded as part of its non-GAAP measures for the three and twelve month
  periods ending December 31, 2007 and December 31, 2006 and for the
  forecasted three month period ending March 31, 2008, as well as reasons
  for excluding each of these individual items:

  -- Acquisition and divestiture-related charges -- For the three and twelve
     months ending December 31, 2007 and December 31, 2006, these
     adjustments primarily consisted of: purchased research and development;
     a loss on assets held for sale related to the Company's divestiture of
     certain businesses; integration costs associated with the Company's
     acquisition of Guidant; the fair value adjustment related to the
     sharing of proceeds feature of the Abbott stock purchase; the step-up
     value of acquired Guidant inventory sold during the period; the AAA
     program cancellation net credit, which consisted of a credit to
     purchased research and development and facility and severance costs
     associated with the program termination; a CRM technology offering
     charge to make available the Latitude® Patient Management System;
     costs that resulted from certain business optimization initiatives
     following the Company's acquisition of Guidant; and a charitable
     contribution. Purchased research and development is a highly variable
     charge based on valuation assumptions. Management removes the impact of
     purchased research and development from the Company's operating results
     to assist in assessing the Company's operating performance and cash
     generated from operations.  The loss on assets held for sale represents
     charges associated with the sale of certain components of the Company's
     Neuromodulation business and its Cardiac Surgery and Vascular Surgery
     businesses, and is not indicative of future operating performance and
     is not used by management to assess operating performance. The
     integration costs associated with the Company's acquisition of Guidant
     do not reflect expected on-going future operating expenses. The fair
     value adjustment related to the sharing of proceeds feature of the
     Abbott stock purchase is a non-cash adjustment and is not indicative of
     the Company's on-going operations. The step-up value of acquired
     inventory is a cost directly attributable to the Guidant acquisition
     and is not indicative of the Company's on-going operations, or on-going
     cost of products sold.  The facility and severance costs related to the
     AAA program cancellation do not reflect expected future operating
     expenses. The CRM technology offering charge represents a one-time cost
     associated with making this technology available to existing patients
     and the cost is not indicative of future expenses associated with the
     technology. The business optimization costs do not reflect expected
     future operating expenses and Boston Scientific management excludes
     them in assessing current operating performance. The charitable
     contribution does not reflect expected future operating expenses.
     Accordingly, management excluded these charges for purposes of
     calculating these non-GAAP measures to facilitate an evaluation of the
     Company's current operating performance and a comparison to the
     Company's past operating performance.

  -- Restructuring charges -- These expenses primarily represent employee-
     related termination benefits, asset write-downs and other costs
     associated with the Company's restructuring initiatives. These expenses
     are not indicative of the Company's on-going operating performance and
     are excluded by management in assessing the Company's operating
     performance, and are also excluded from the Company's operating
     segments' measures of profit and loss used for making operating
     decisions and assessing performance. Accordingly, management excluded
     these charges for purposes of calculating these non-GAAP measures to
     facilitate an evaluation of the Company's current operating performance
     and a comparison to the Company's past operating performance.

  -- Litigation-related charges -- These charges are attributable to
     estimated potential losses associated with patent litigation involving
     the Company's interventional cardiology business. These amounts
     represent significant one-time charges during the fourth quarter of
     2007 and do not reflect expected on-going operating expenses.
     Accordingly, management excluded these charges for purposes of
     calculating these non-GAAP measures to facilitate an evaluation of the
     Company's current operating performance and for comparison to the
     Company's past operating performance.

  -- Amortization expense -- Amortization expense is a non-cash charge and
     does not impact the Company's liquidity or compliance with the
     covenants included in its debt agreements. Following the Company's
     acquisition of Guidant, and the related increase in the Company's debt,
     management has heightened its focus on cash generation and debt pay
     down. Management removes the impact of amortization from the Company's
     operating performance to assist in assessing the Company's cash
     generated from operations. Management believes this is a critical
     metric for the Company in measuring the Company's ability to generate
     cash and pay down debt. Therefore, amortization expense is excluded
     from management's assessment of operating performance and is also
     excluded from the measures management uses to set employee
     compensation. Accordingly, management believes this may be useful
     information to users of its financial statements and therefore has
     excluded these charges for purposes of calculating these non-GAAP
     measures to facilitate an evaluation of the Company's current operating
     performance, particularly in terms of liquidity.

  -- Foreign exchange on net sales -- The impact of foreign exchange is
     highly variable and difficult to predict. Accordingly, management
     excludes the impact of foreign exchange for purposes of reviewing
     regional and divisional revenue growth rates to facilitate an
     evaluation of the Company's current operating performance and
     comparison to the Company's past operating performance.

  Material Limitations Associated with the Use of Non-GAAP Financial
   Measures
  Non-GAAP net income, non-GAAP net income per diluted share, and regional
  and divisional revenue growth rates that exclude the impact of foreign
  exchange may have limitations as analytical tools, and these non-GAAP
  measures should not be considered in isolation or as a replacement for
  GAAP financial measures. Some of the limitations associated with the use
  of these non-GAAP financial measures are:

  -- Items such as purchased research and development, the step-up value of
     acquired Guidant inventory sold during the period, the CRM technology
     offering charge, the loss on assets held for sale, and the fair value
     adjustment related to the sharing of proceeds feature of the Abbott
     stock purchase reflect economic costs to the Company and are not
     reflected in non-GAAP net income and non-GAAP net income per diluted
     share.

  -- Items such as Guidant integration costs, facility and severance costs,
     employee-related costs associated with certain business optimization
     initiatives, the charitable contribution, and restructuring and
     litigation-related expenses that are excluded from non-GAAP net income
     and non-GAAP net income per diluted share can have a material impact on
     cash flows and GAAP net income and net income per diluted share.

  -- Items such as amortization of purchased intangible assets, though not
     directly affecting Boston Scientific's cash flow position, represent a
     reduction in value of intangible assets over time. The expense
     associated with this reduction in value is not included in Boston
     Scientific's non-GAAP net income or non-GAAP net income per diluted
     share and therefore these measures do not reflect the full economic
     effect of the reduction in value of those intangible assets.

  -- Revenue growth rates stated on a constant currency basis, by their
     nature, exclude the impact of foreign exchange, which may have a
     material impact on GAAP net sales.

  -- Other companies may calculate non-GAAP net income, non-GAAP net income
     per diluted share, or regional and divisional revenue growth rates that
     exclude the impact of foreign exchange differently than Boston
     Scientific does, limiting the usefulness of those measures for
     comparative purposes.

  Compensation for Limitations Associated with Use of Non-GAAP Financial
   Measures
  Boston Scientific compensates for the limitations on its non-GAAP
  financial measures by relying upon its GAAP results to gain a complete
  picture of the Company's performance. The non-GAAP numbers focus instead
  upon the core business of the Company, which is only a subset, albeit a
  critical one, of the Company's performance.

  The Company provides detailed reconciliations of each non-GAAP financial
  measure to its most directly comparable GAAP measure in the accompanying
  schedules, and Boston Scientific encourages investors to review these
  reconciliations.

  Usefulness of Non-GAAP Financial Measures to Investors
  The Company believes that presenting non-GAAP net income, non-GAAP net
  income per share, and regional and divisional revenue growth rates that
  exclude the impact of foreign exchange in addition to the related GAAP
  measures provides investors greater transparency to the information used
  by Boston Scientific management for its financial and operational
  decision-making and allows investors to see Boston Scientific's results
  "through the eyes" of management. The Company further believes that
  providing this information better enables Boston Scientific's investors to
  understand the Company's operating performance and to evaluate the
  methodology used by management to evaluate and measure such performance.
  Disclosure of these non-GAAP financial measures may also facilitate
  comparisons of Boston Scientific's operating performance with the
  performance of other companies that supplement their GAAP results with
  non-GAAP financial measures.

SOURCE: Boston Scientific Corporation

CONTACT: Paul Donovan, Media Relations, +1-508-650-8541, office,
+1-508-667-5165, mobile, or Dan Brennan, Investor Relations, +1-508-650-8538,
office, both of Boston Scientific Corporation

Web site: http://www.bostonscientific.com/

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