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Aventis Reports Second-Quarter and First-Half Results for 2004 All figures refer to 2004 Group vs. 2003 Core unless otherwise stated STRASBOURG, France, July 28 /PRNewswire-FirstCall/ -- Aventis Q2 results * Total revenues, including co-promotion income, rise 5.2% on activity growth to EUR 4.308 billion ($5.189 billion USD) reported revenues rise by 2.0%) -- compared to core revenues of EUR 4.223 billion ($5.087 billion USD) in 2003. [Group revenues EUR 4.480 billion ($5.397 billion USD) in Q2 2003] * Strategic brands and human vaccines sales rise 14.9% on an activity basis (reported growth 11.4%) * EPS up 15.2% to EUR 0.88 ($1.06 USD) before costs related to the tender offer initiated by Sanofi-Synthelabo; reported earnings per share up 2.4% to EUR 0.78 (.94 USD) from last year's core EPS of EUR 0.76 (.92 USD) [Group EPS EUR 0.77 (.93 USD) in Q2 2003] Aventis submissions and approvals program advances * FDA approves antibiotic Ketek, U.S. product launch planned for August 2 * FDA approves Taxotere for use in combination with prednisone for hormone-refractory prostate cancer * FDA grants Priority Review for Taxotere in early-stage breast cancer Taxotere planned to be submitted for gastric cancer late 2004, head and neck cancer in 2005 * FDA approves rapid-acting insulin analog Apidra, EMEA body issues positive opinion CONSOLIDATED GROUP RESULTS Aventis consolidated group sales were EUR 8.166 billion ($9.837 billion USD) in the first half of 2004 compared to EUR 8.622 billion ($10.386 billion USD in the year-ago period. The 2003 sales figure includes the consolidated sales from the therapeutic proteins business Aventis Behring, which was divested on March 31, 2004, and is being treated as a discontinued operation in the 2004 results (and therefore excluded from consolidated sales). Group net income was EUR 1.166 billion ($1.405 billion USD) in the first half of 2004 compared to EUR 813 million ($979 million USD) in the year-ago period, while consolidated earnings per share (EPS), including costs related to the tender offer initiated by Sanofi-Synthelabo, were EUR 1.50 ($1.81 USD) compared to EUR 1.03 ($1.24 USD). Before the costs related to the tender offer initiated by Sanofi-Synthelabo, EPS would have been EUR 1.64 ($1.98 USD). In the second quarter, consolidated group sales were EUR 4.220 billion ($5.083 billion USD) compared to EUR 4.427 billion ($5.333 billion USD) in the second quarter of 2003. (Logo: http://www.newscom.com/cgi-bin/prnh/20000501/NYM197 ) AVENTIS SUBMISSIONS AND APPROVALS PROGRAM ADVANCES Aventis made strong progress with its submissions and approvals program in the second quarter. The chemotherapy agent Taxotere (docetaxel) was approved in May by the U.S. Food and Drug Administration (FDA) for use in combination with prednisone for androgen-independent (hormone-refractory) metastatic prostate cancer, making Taxotere the only chemotherapeutic drug approved for breast, lung and prostate cancer, three of the most prevalent cancers. The FDA also granted a Priority Review designation for the registrational application to support Taxotere for the treatment of women with early-stage operable breast cancer with involved axillary lymph nodes. FDA agency action is expected on or before September 17, 2004. In addition, Taxotere is being studied extensively for use in head and neck, and gastric cancers. A submission for gastric cancer is planned in late 2004 and a submission for head and neck cancer is planned for 2005. In early April, the FDA approved Ketek (telithromycin), a first-in-class antibiotic, to treat acute exacerbation of chronic bronchitis; acute bacterial sinusitis; and mild to moderate community-acquired pneumonia, including those infections caused by multi-drug resistant Streptococcus pneumoniae, in patients age 18 and older. Ketek will be launched in the U.S. on August 2. Also in April, the FDA approved Nasacort HFA (triamcinolone acetonide) Nasal Aerosol for the treatment of nasal symptoms associated with seasonal and perennial allergic rhinitis in adults and children aged six and older. When marketed, this will be the only nasal aerosol intranasal corticosteroid available in the U.S. that contains hydrofluoroalkane (HFA) rather than chlorofluorocarbons (CFCs). The launch is currently planned for December. Shortly afterwards, the FDA gave its approval for Apidra (insulin glulisine [rDNA origin] injection), a rapid-acting insulin analog for the treatment of adults with type 1 and type 2 diabetes. In early June the Committee for Medicinal Products for Human Use (CHMP), the scientific body of the European Medicines Evaluation Agency (EMEA), followed with its positive opinion for Apidra for the treatment of type 1 and type 2 diabetes in adults. The CHMP's opinions generally serve as the basis for European Commission approvals, which are typically issued three months after the CHMP publishes its views. In the same month, the European Commission approved a new indication for Arava (leflunomide) for the treatment of adult patients with active psoriatic arthritis. Aventis is awaiting approval of its quadrivalent meningococcal conjugate vaccine, Menactra. The FDA's Vaccine and Related Biological Products Advisory Board (VRBPAC) review meeting for Menactra vaccine is scheduled for September 2004. Based on anticipated licensure of Menactra vaccine, a working group of the Centers for Disease Control & Prevention's Advisory Committee on Immunization Practices is considering expanding the current meningococcal immunization recommendation beyond college freshman living in dormitories to cover younger adolescents as well. In addition, the Biological License Application (BLA) for Adacel, a trivalent booster vaccine for adults and adolescents against pertussis, diphtheria and tetanus, will be submitted to the FDA in the second half of 2004. PHARMACEUTICAL BUSINESS FOCUS Aventis made further progress in the second quarter with the divestment of non-core activities. In May, an agreement was signed to sell Frankfurt-based textiles dyes manufacturer DyStar to Platinum Equity, a global investment firm. Hoechst holds 35 percent of DyStar. At the end of the first quarter, Aventis divested its therapeutic proteins business (Aventis Behring) to Australia's CSL Ltd for which Aventis will receive total proceeds of up to $925 million. Aventis management's objective is to complete the divestment of the remaining non-core activities, which comprise equity stakes in the chemical companies Wacker and Rhodia. As a consequence of its divestment program of non-core activities, Aventis has simplified its reporting structure since the beginning of 2004. The 2004 consolidated financial statements are reported at the level of Aventis Group, eliminating the split between core and the remaining non-core business activities. Aventis Group represents the on-going core business activities in prescription drugs, human vaccines, the Merial animal health equity joint venture and corporate activities. It also includes the remaining non-core businesses. Aventis Behring is treated as a discontinued operation in 2004. As a result, the performance of Aventis presented as a Group in 2004 is compared with the 2003 Aventis core business results. BUSINESS OVERVIEW - 2004 GROUP VS 2003 CORE BUSINESS Total Group revenues, including co-promotion income, rose 5.2% to EUR 4.308 billion ($5.189 billion USD) in the second quarter from a year earlier. Aventis consolidated net sales rose by 4.3% on an activity basis to EUR 4.220 billion ($5.083 billion USD) in the second quarter of 2004 compared to EUR 4.170 billion ($5.023 billion USD) for the core business in the year-earlier quarter. For the first half, group sales rose by 5.3% (activity) to EUR 8.166 billion ($9.837 billion USD) from EUR 8.141 billion ($9.807 billion USD) a year earlier. Group net income was affected by costs related to the Sanofi-Synthelabo tender offer of EUR 76 million ($92 million USD) in the second quarter and of EUR 109 million ($131 million USD) in the first half. Excluding costs related to the Sanofi-Synthelabo tender offer, consolidated earnings per share (EPS) grew by 15.2% to EUR 0.88 ($1.06 USD) in the second quarter and by 18.9% to EUR 1.64 ($1.98 USD) for the first half. On a reported basis, consolidated earnings per share in the second quarter of this year were EUR 0.78 (.94 USD) compared to core EPS of EUR 0.76 (.92 USD), an increase of 2.4% from the comparable period. For the first half, EPS rose 8.7% to EUR 1.50 ($1.81 USD). H1 H1 Total AVENTIS KEY Q2 2004 Q2 2003 Total Group Core variance FIGURES (1) (2) (2) variance 2004 2003 (4) (in EUR Group Core (4) (1) (2) million, except EPS) EUR 8,166 EUR 8,141 0.3% Sales EUR 4,220 EUR 4,170 1.2% 5.3% Activity 4.3% variance(3) EUR 1,166 EUR 1,088 7.2% Net income EUR 610 EUR 603 1.2% EUR 1,275 EUR 1,088 17.2% Net income EUR 686 EUR 603 13.8% before tender offer related costs EUR 1.50 EUR 1.38 8.7% EPS (in EUR) EUR 0.78 EUR 0.76 2.4% EUR 1.64 EUR 1.38 18.9% EPS (in EUR) EUR 0.88 EUR 0.76 15.2% before tender offer related costs (1) The consolidated income statement of Aventis for the 6-month period ended June 30, 2004, has been subject to a limited review by the auditors. (2) Not subject to limited review by the auditors. (3) Excluding currency translation effects (4) Percentages are calculated before rounding the data Note: Unless otherwise stated, all references below to sales activity growth are on a constant exchange rate basis. Sales activity rose 4.3% to EUR 4.220 billion ($5.083 billion USD) in the second quarter of 2004. Reported sales rose 1.2% mainly because of the negative impact of the strength of the euro against other currencies. On a like-for-like basis (excluding divested products) sales activity rose 5.5%. Sales of strategic products, which comprise strategic brands (1) and human vaccines, amounted to EUR 2.445 billion ($2.945 billion USD) in the second quarter of 2004, an activity increase of 14.9% from a year earlier, and accounted for 57.9% of total Group sales. Strategic brand sales activity rose 18.5% to EUR 2.144 billion ($2.583 billion USD) in the second quarter. Sales activity of other prescription drugs, which generally do not receive marketing and promotional support, fell 8.5% in the second quarter, due mainly to the negative impact of healthcare cost-containment measures in many European countries. On a like-for-like basis, excluding divested products, sales activity for this group of products declined 3.4%. Bulk and toll manufacturing, which includes the production of active pharmaceutical ingredients for third parties, reported a sales activity decrease of 13.6% to EUR 121 million ($146 million USD) in the second quarter. (1) The Aventis strategic brands are Actonel, Lovenox/Clexane, Ketek, Lantus, Taxotere, Amaryl, Arava, Campto, Copaxone, Insuman, Nasacort, Targocid, Tavanic and Delix/Tritace. Since January 1, 2004, Allegra is no longer classified as a strategic brand and its sales are reported separately. Q2 2004 Q2 2003 Activity % share % share Group Core variance Group Core Sales Sales (2) sales sales (1) (1) 2004 2003 (in EUR (in EUR mln) mln) EUR 2,445 EUR 2,195 14.9% Strategic brands 57.9% 52.4% and human vaccines EUR 435 EUR 501 -7.8% Allegra / Telfast 10.3% 12.0% EUR 121 EUR 142 -13.6% Bulk and toll 2.9% 3.4% manufacturing EUR 1,201 EUR 1,337 -8.5% Other prescription drugs 28.5% 31.9% (1) Not subject to a limited review by the auditors (2) At constant exchange rates In the United States, sales activity rose 6.0% to EUR 1.596 billion in the second quarter of 2004, with most strategic products continuing to grow. Lovenox and Lantus recorded strong sales growth. Sales of Taxotere remained under pressure from a Medicare reimbursement policy currently in place, which favours generic products. In Europe, sales activity rose 1.3% in the second quarter, driven by strong sales of all core strategic brands: Actonel, Lantus, Ketek and Lovenox, and oncology products Taxotere and Campto. However, government cost-containment policies continue to impact the pharmaceutical market and the rest-of-portfolio products. Strategic brands accounted for 58.1% of total sales in Europe compared to 52.1% in the year-ago period. In France, strategic product sales grew strongly, driven by Lantus and Taxotere. Germany also showed strong sales of strategic brands, helped by the successful launch of the Copaxone pre-filled syringe. However, strong generic competition affected Delix/Tritace sales in Germany and the UK. In Japan, second-quarter sales activity advanced 4.0% to EUR 214 million, mainly due to the success of Ketek, launched in December 2003, and to Amaryl and Actonel. After a weak pollen season in the first quarter, Allegra is increasing its market share in Japan's significant dermatology segment. SELECTED SALES OF AVENTIS STRATEGIC BRANDS AND HUMAN VACCINES (1) (in EUR million) H1 H1 Activity Q2 Q2 Activity 2004 2003 variance(2) 2004 2003 variance EUR 915 EUR 799 22.7% Lovenox/Clexane EUR 475 EUR 411 20.5% global sales EUR 548 EUR 490 24.2% U.S. sales EUR 287 EUR 248 22.8% EUR 716 EUR 667 13.7% Taxotere global sales EUR 382 EUR 343 15.1% EUR 327 EUR 363 0.1% U.S. sales EUR 175 EUR 185 0.7% EUR 454 EUR 504 -9.4% Delix/Tritace EUR 230 EUR 263 -12.0% global sales (Not sold by Aventis in the U.S.) EUR 375 EUR 199 102.1% Lantus global sales EUR 207 EUR 109 96.5% EUR 229 EUR 153 66.3% U.S. sales EUR 123 EUR 83 58.2% EUR 77 EUR 39 100.6% Ketek global sales EUR 31 EUR 13 141.0% (U.S. launch set for August) EUR 470 EUR 295 59.2% Actonel total Alliance EUR 251 EUR 158 58.5% sales(3) EUR 140 EUR 81 74.6% Actonel sales EUR 78 EUR 48 64.2% consolidated by Aventis (4) EUR 667 EUR 683 4.4% Human vaccines sales EUR 301 EUR 333 -5.4% consolidated by Aventis(5) EUR 380 EUR 385 9.5% U.S. sales EUR 192 EUR 182 11.7% (1) Not subject to a limited review by the auditors (2) Excluding currency translation effects (3) Cooperation with Procter & Gamble (4) Actonel sales as consolidated by Aventis, including sales in Japan (5) Vaccines sales in Europe through the Aventis Pasteur MSD joint venture are not consolidated by Aventis N.S. Not significant Lovenox/Clexane (enoxaparin sodium): Sales activity of the anti-thrombotic agent grew 20.5% in the second quarter and 22.7% in the first half, while U.S. sales activity rose 22.8% in the second quarter and 24.2% in the first half due to increasing penetration in key geographic markets at the expense of unfractionated heparin, the main competitor, in the treatment of medical patients at risk for deep vein thrombosis (DVT) as well as in patients with acute coronary syndrome. U.S. growth has been driven by an enlarged sales force and increased efforts to raise DVT awareness. As previously announced, Aventis filed an application with the United States Patent Office (USPTO) in May 2003 for the reissuance of U.S. Patent 5,389,618 ('618 patent'), related to Lovenox. A reissuance application is typically used to seek modification in the specifications of a granted patent. During the reissuance process, the '618 patent remains in force. Aventis recently received a second rejection of the reissuance application from the USPTO. A first rejection was received in the second quarter. Even though the second rejection was characterized as a "final rejection" by the USPTO, Aventis has the option of continuing the reissuance process or filing an appeal. Aventis believes that if its arguments in response to the second rejection are favorably received, the USPTO could issue a notice of approval of Aventis' application for reissuance by the end of 2004 and finally reissue the patent in 2005. Aventis remains committed to continuing the reissue process. Taxotere (docetaxel): Global sales activity of the chemotherapy agent rose 15.1% in the second quarter of 2004 from a year earlier. In the U.S., Taxotere sales remained stable in a changing reimbursement environment. Compelling clinical data in breast cancer presented in late 2003 helped to fuel Taxotere sales in Europe. Delix/Tritace (ramipril): The cardiovascular drug recorded a sales activity decline of 12% in the second quarter, primarily as a result of the introduction of generic versions of the drug in Germany and the United Kingdom. However, other European markets and Canada showed strong growth rates, reflecting the benefits of the ACE inhibitor in treating patients with hypertension and/or diabetes seeking to reduce the risk of cardiovascular events. Lantus (insulin glargine): Sales activity of the 24-hour insulin analog remained strong, rising 96.5% worldwide in the second quarter of 2004 and advancing 58.2% in the U.S., where the product remains the leading branded insulin in terms of total prescriptions. Lantus is the largest brand in the total insulin market (value) in France. In Germany, Lantus currently holds a 50% market share in the basal (long-acting) insulin market. In June at the American Diabetes Association annual meeting, the first data comparing Lantus to premixed insulins was presented. The data showed effective glycemic control and less hypoglycemia with Lantus plus oral anti-diabetes drugs versus premixed insulins 70/30. Ketek (telithromycin): Worldwide sales activity of the antibiotic, which specifically targets mild to moderate respiratory tract infections, rose 141% due to its launch in several new markets during 2003 and its use in more than 10 million patients in over 40 countries to date. Ketek received U.S. FDA approval in April, and the U.S. product launch is scheduled for August 2 in time for the start of the fall 2004 respiratory tract infection season. Actonel (risedronate): Worldwide sales of the osteoporosis treatment marketed through the Alliance for Better Bone Health with Procter & Gamble totaled EUR 251 million in the second quarter, a sales increase of 58.5% over the 2003 second quarter. Sales consolidated by Aventis were EUR 78 million, an activity increase of 64.2%. Aventis reported co-promotion income related to Actonel of EUR 82 million in the second quarter compared to EUR 50 million in the prior year, an activity increase of 71%. Teva Pharmaceuticals USA, Inc. (Teva) has filed an Abbreviated New Drug Application (ANDA) with the FDA with Paragraph IV certifications against the five U.S. patents listed for risedronate sodium tablets in the FDA's list of Approved Drug Products with Therapeutic Equivalence Evaluations (also known as the "Orange Book"). Teva is seeking approval to market generic versions of risedronate sodium tablets in the U.S. Aventis is currently reviewing legal options. The vaccines business, Aventis Pasteur, generated sales of EUR 301 million. This decline of 5.4% on an activity basis was mainly due to the positive impact of biosecurity sales in the second quarter of 2003, as well as the phasing of sales of certain vaccines in international markets. In Europe, sales by the joint venture Aventis Pasteur MSD, which are not consolidated by Aventis, rose to EUR 132 million in the second quarter of 2004, a slight increase compared to the same period last year. A record number of pre-booking orders for Fluzone vaccine have been received in the U.S. this year. This will be the first influenza season since the Centers for Disease Control (CDC) expanded its recommendations to cover all infants from six through 23 months of age. Aventis Pasteur's Fluzone vaccine is the only influenza vaccine approved for this age group. Sales activity of the seasonal allergy drug Allegra (fexofenadine HCI) declined 7.8% worldwide to EUR 435 million in the second quarter, while U.S. sales activity fell 10.5% to EUR 360 million. The performance of Allegra in the U.S. continues to be affected by over-the-counter (OTC) branded and private-label products as well as changes in reimbursement for prescription antihistamines by managed care organizations. Patent infringement lawsuits have been filed against seven companies currently seeking to market generic versions of fexofenadine. In addition, patent infringement lawsuits have been filed against suppliers of bulk fexofenadine to generic drug companies. These lawsuits are pending in the U.S. District Court of New Jersey. The previously communicated trial date of September 2004 is no longer in effect. No new trial date has been set. SECOND-QUARTER PROFITABILITY ANALYSIS -- 2004 Group vs. 2003 Core Business Total revenues (which includes co-promotion income from Actonel and other prescription drugs) rose 5.2% on an activity basis growth to EUR 4.308 billion. Net sales totaled EUR 4.220 billion compared to EUR 4.170 billion (up 4.3% on an activity basis). Gross margin as a percentage of total revenues decreased to 73.9% in the second quarter of 2004 from 74.6% in the second quarter of 2003, due mainly to the negative currency translation impact. On a constant exchange rate basis, gross margin was 74.3%, being negatively impacted mainly by the sales decline of Allegra especially in the U.S., and the volume losses and new reference prices of Delix/Tritace (ramipril) in the UK and Germany. Selling, general and administrative expenses and other operating income (expenses) were EUR 1.273 billion in the second quarter (29.6 % of total revenues) compared to EUR 1.339 billion (31.7% of total revenues) a year earlier. Excluding currency translation effects, SG&A and other operating income (expenses) were flat compared to last year. The increased investments in new indications for strategic brands and in product launches (Ketek, Lantus, Sculptra) were offset by the income from product divestment. Research and development spending totaled EUR 674 million (15.6% of total revenues) compared to EUR 691 million in the second quarter of 2003 (16.4% of total revenues). Excluding currency translation effects, R&D expenses were almost flat compared to the second quarter of 2003, which included milestone payments to Zealand and ProSkelia. Higher development costs related to VEGF Trap (developed in cooperation with Regeneron Pharmaceuticals, Inc.) and Lovenox were partly offset by less spending on Allegra and Ketek, relative to 2003. Additional savings came from organizational effectiveness and productivity initiatives. Restructuring expenses amounted to EUR 46 million in the second quarter of 2004 compared to EUR 44 million in the year-ago period. These costs relate to the productivity initiatives launched in 2003 and 2004 in the prescription drugs business, which refer to the reorganization of research and development activities, the continued rationalization of industrial sites, and the enhancement of operational effectiveness in commercial operations. Equity in earnings of affiliated companies amounted to EUR 66 million in the second quarter of 2004 compared with EUR 63 million in the second quarter of 2003. EBITA (operating income and equity in earnings of affiliated companies before goodwill amortization) was EUR 1.256 billion in the second quarter of 2004, versus EUR 1.141 billion in the year-earlier period. EBITA rose by 10% on a reported basis and by 13.9% at constant exchange rates. As a percentage of total revenues, the EBITA margin rose 2.1 percentage points to 29.1% from 27.0% in the year-ago period. Miscellaneous non-operating income and expenses -- net amounted to a loss of EUR 186 million, compared to a loss of EUR 15 million in the prior year period. The Q2 2004 loss includes a market adjustment for investment in Rhodia and in biotech companies (mainly Genta) as well as the costs related to the tender offer initiated by Sanofi-Synthelabo. Income (loss) from discontinued operations (net of income taxes) amounted to an income of EUR 5 million and relates to the therapeutic proteins business Aventis Behring, which has been accounted for as a discontinued operation in 2004 following its divestiture to CSL Limited on March 31, 2004. Net income rose 1.2% to EUR 610 million in the second quarter from EUR 603 million in the year-earlier quarter, while earnings per share (EPS) rose 2.4% to EUR 0.78 from EUR 0.76 in the second quarter of 2003. Costs incurred in connection with the tender offer initiated by Sanofi-Synthelabo impacted EPS negatively by EUR 0.10. Excluding this impact, the EPS growth would have been 15.2% to EUR 0.88 from EUR 0.76. Before goodwill amortization, EPS rose 1.5% to EUR 0.93 from EUR 0.91 in the year-ago period. Aventis generated free cash flow of EUR 994 million in the first half of 2004 compared to EUR 157 million in the year-ago period. Free cash flow benefited from a reduced demand for industrial working capital and significant reduction of cash-out related to the divested non-core businesses. Aventis net debt at the end of June 2004 was EUR 2.379 billion, reflecting a decrease of EUR 1.581 billion compared to the end of 2003. The main cash transactions that led to the reduction were the strong free cash flow, proceeds received from the divestment of Aventis Behring, the divestiture of non-strategic products. The decrease in net debt includes a payment of EUR 327 million to Bayer related to the adjustment of the original purchase price for Aventis CropScience, which was divested in June 2002. About Aventis Aventis is dedicated to treating and preventing disease by discovering and developing innovative prescription drugs and human vaccines. In 2003, Aventis generated sales of EUR 16.79 billion, invested EUR 2.86 billion in research and development and employed approximately 69,000 people in its core business. Aventis corporate headquarters are in Strasbourg, France. For more information, please visit: http://www.aventis.com/. The press releases, IR presentation and links to live and on-demand audiocasts are available at http://www.aventis.com/2004Q2. Conference calls Patrick Langlois, Vice Chairman of the Management Board and Chief Financial Officer, will be available for an analysts conference call at 2:00 p.m. CET. The press releases and a live and replay audio webcast of the analyst conference call will be available on the Internet at: http://www.aventis.com/2004Q2. Definition of Basic Earnings Per Share (EPS) before goodwill amortization: Basic EPS before goodwill amortization is an unaudited non-GAAP financial measure that we define as our consolidated net income excluding goodwill amortization divided by the unaudited number of our shares outstanding (at period end). We have included basic EPS before goodwill amortization in addition to the corresponding GAAP measure EPS which includes non-cash charges for goodwill amortization, because we consider this non-GAAP measurement to more closely reflect the underlying business performance of our operations. Definition of EBITA: EBITA is an unaudited non-GAAP financial measure that we define as operating income and equity in earnings of affiliated companies before goodwill amortization. We have included EBITA in addition to the corresponding GAAP measure operating income, which includes non-cash charges for goodwill amortization because we consider this non-GAAP measurement to more closely reflect the underlying business performance of our operations. Additionally, we use this measure to assess our financial performance Definition of Free Cash Flow: Free Cash Flow is an unaudited non-GAAP measure that we define as cash from operational activities net of capital expenditures. Statements in this news release containing projections or estimates of revenues, income, earnings per share, capital expenditures, capital structure, or other financial items; plans and objectives relating to future operations, products, or services; future economic performance; or assumptions underlying or relating to any such statements, are forward-looking statements subject to risks and uncertainties. Actual results could differ materially depending on factors such as the timing and effects of regulatory actions, the results of clinical trials, the company's relative success developing and gaining market acceptance for new products, the outcome of significant litigation, and the effectiveness of patent protection. Additional information regarding risks and uncertainties is set forth in the current Annual Report on Form 20-F of Aventis on file with the Securities and Exchange Commission and in the current Annual Report -"Document de Reference"- on file with the "Autorite des marches financiers" in France. Aventis shareholders are advised to read Aventis' Note d'information en reponse registered under visa no. 04-510 with the Autorite des marches financiers (the "AMF"). This document contains important information. Aventis shareholders are also advised to read Aventis' Solicitation/Recommendation Statement on Schedule 14D-9 filed by Aventis with the U.S. Securities and Exchange Commission (the "SEC"), as contains important information. The Note d'information en reponse and the Solicitation/ Recommendation Statement and other public filings made from time to time by Aventis with the AMF or the SEC are available without charge from the AMF's website at http://www.amf-france.org/ and from the SEC's website at http://www.sec.gov/. Brand names appearing in italics throughout this document are trademarks of Aventis, and/or its affiliates, with the exception of trademarks that may be used under license by Aventis and/or its affiliates, such as Actonel, a trademark of Procter & Gamble Pharmaceuticals; Alvesco, a trademark of ALTANA Pharma AG; Genasense, a trademark of Genta Inc. Pursuant to Article 7 of the COB Regulation no. 2002-04, this press release was transmitted to the Autorite des marches financiers before its release. Note to Editors: This press release was issued earlier today in France by Aventis S.A. (NYSE:AVE). This version contains key figures converted from euros into U.S. dollars (USD) at the exchange rate of 1 euro = 1.2046 USD. Complete financial tables are available on our website at: http://www.aventis.com/ or by calling 908/243-2305. http://www.newscom.com/cgi-bin/prnh/20000501/NYM197DATASOURCE: Aventis CONTACT: Patti Munzer, Aventis Global Media Relations, +1-908-243-2298, , or Tony Roddam, Aventis Media Relations, +33-(0)-38899-1138, Web site: http://www.aventis.com/ http://www.aventis.com/2004Q2

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