Merck Announces Third-Quarter 2005 Earnings Per Share (EPS) of 65 Cents

Merck & Co., Inc. today announced that earnings per share (EPS)for the third quarter of 2005 were $0.65, compared to $0.60 for thethird quarter of 2004. Net income was $1,420.9 million, compared to$1,325.6 million in the third quarter of last year. Worldwide saleswere $5.4 billion for the quarter, compared to $5.5 billion for thethird quarter of 2004.

Total sales decreased 2% for the quarter, which reflects adecrease of 3% related to the VIOXX withdrawal, offset by otherrevenue growth of 1%.

For the first nine months of 2005, EPS were $1.59, including theimpact of a $640 million net tax charge ($0.29 per share) recorded inthe second quarter. Excluding the impact of the net tax charge, EPSfor the first nine months of 2005 were $1.88. Net income was $3,511.6million and worldwide sales were $16.2 billion for the first ninemonths of 2005. Total sales decreased 5% for the first nine months,which reflects a decrease of 9% related to the VIOXX withdrawal,offset by other revenue growth of 4%. Global sales performanceincludes a 1-point favorable effect from foreign exchange for thequarter and a 2-point favorable effect for the first nine months ofthe year.

"I am pleased to report that the quarter was consistent with ourexpectations," said Richard T. Clark, Chief Executive Officer andPresident. "We are focused on improving our core businessfundamentals--specifically successfully launching our anticipated newproducts, advancing the progression of our pipeline and reducing ourcost structure over and above what has been achieved to date. We mustimprove our performance over the long term, and I truly believe wecan. By the end of the year, I'll provide details about our plans, aswell as milestones and metrics that can be used to evaluate ourprogress against them."

Marketing and administrative expenses decreased 1% as compared tothe third quarter of 2004. Excluding the VIOXX withdrawal costs of$141 million recorded in the third quarter 2004 as well as costsrelating to ongoing global position eliminations of $80 million in thethird quarter 2005 and $34 million in the third quarter 2004,marketing and administrative costs increased 5% for the quarter. Theincrease reflects activities required to prepare for the launch offour new investigational vaccines and maintaining activities insupport of Merck's in-line products.

Research and development expenses were $943 million during thethird quarter, a 3% increase from the third quarter of 2004.

Full-Year 2005 EPS Guidance

Merck anticipates full-year 2005 EPS of $2.47 to $2.51, excludingthe net tax charge of $0.29 per share, reported in the second quarter,primarily relating to the American Jobs Creation Act. Merckanticipates reported full-year 2005 EPS of $2.18 to $2.22. Please seepages 12-13 of this news release for details of Merck's full-year 2005financial guidance.

Merck's Key Franchises Maintain Leadership Positions

Merck's major franchises continue to rank either first or secondin their classes, in terms of worldwide sales, and to benefit from newindications and treatment options, as well as clinical results thatsupport their safety and efficacy profiles.

Worldwide sales of SINGULAIR, a once-a-day oral medicine indicatedfor the treatment of chronic asthma and the relief of symptoms ofallergic rhinitis, were strong, reaching $692 million for the thirdquarter and representing growth of 11% as compared to the thirdquarter of 2004. Sales for the first nine months were $2.2 billion, a14% increase over the comparable 2004 period.

In August, Merck announced that the U.S. Food and DrugAdministration (FDA) has approved SINGULAIR for the relief of symptomsof perennial allergic rhinitis (PAR), or indoor allergies, in adultsand children six months of age and older. A convenient once-a-daytablet, SINGULAIR has been proven to help relieve a broad range ofindoor and outdoor allergy symptoms for up to 24 hours.

Global sales of Merck's antihypertensive medicines, COZAAR andHYZAAR*, remained solid, reaching $751 million for the third quarter,representing growth of 6% as compared to the third quarter of 2004.Sales for the first nine months were $2.3 billion, a 9% increase overthe comparable 2004 period.

COZAAR and HYZAAR belong to the AIIA class, which remains thefastest growing class in the antihypertensive market. The AIIA classgrew at 9.8% over the same period last year in the U.S. COZAAR/HYZAARremained the number one branded AIIA in Europe and number two brandedAIIA in the United States in the third quarter. In early October, theFDA approved a new tablet, HYZAAR 100-12.5 mg, a new dosage offeringthe once-daily efficacy of COZAAR 100mg with a low-dose diuretic.

FOSAMAX remains the most prescribed medicine worldwide for thetreatment of postmenopausal, male and glucocorticoid-inducedosteoporosis. FOSAMAX PLUS D, a new product that provides the provenpower of FOSAMAX to reduce the risk of both hip and spine fracturesplus the assurance of providing vitamin D consistent with therecommended guidelines, became available in the United States earlierthis year. On Aug. 25, the European Commission granted marketingauthorization for this product, which is known in Europe as FOSAVANCE.

Additionally, new one-year extension results of the U.S. FACTstudy showed that FOSAMAX delivered significantly greater increases inbone mineral density (BMD) at both the hip and spine than risedronateover two years. The increases in BMD seen with FOSAMAX were evengreater compared to risedronate at year two than at year one. Aftertwo years, FOSAMAX also delivered superior reductions in bone turnoverthan risedronate, with a significantly greater effect after only threemonths of treatment.

Global sales for the franchise reached $777 million during thethird quarter, which was comparable to the third quarter of 2004.Sales for the first nine months were $2.4 billion, a 3% increasecompared to the first nine months of 2004.

On Oct. 17, Merck was notified that the U.S. Supreme Court wouldnot review the previous court ruling where its claims regarding thepatent covering once-weekly administration of FOSAMAX were found to beinvalid. As a result, the earliest date for marketing of any genericalendronate in the United States continues to be February 2008.

ZOCOR, Merck's statin for modifying cholesterol, achievedworldwide sales of $1.0 billion in the third quarter, representing adecrease of 14% over the third quarter of 2004. Sales for the firstnine months were $3.3 billion, a 15% decrease over the comparable 2004period.

Merck's Other Promoted Medicines

Sales of Merck's other promoted medicines and vaccines were $1.6billion for the third quarter, representing growth of 10% as comparedwith the third quarter of 2004. Sales for the first nine months were$4.4 billion, a 10% increase over the comparable 2004 period. Theseproducts treat or prevent a broad range of medical conditions,including infectious disease, glaucoma, benign prostate enlargement,migraine, arthritis and pain.

On Sept. 6, the FDA approved PROQUAD, a vaccine to help protectchildren against measles, mumps, rubella and chickenpox in a singleinjection. PROQUAD combines two well-established Merck vaccines --M-M-R II and VARIVAX -- and builds on the tradition of these Merckvaccines in helping to protect children against these four potentiallyserious diseases.

Merck's vaccine for hepatitis A, VAQTA, was approved by the FDA inAugust for use in children 12 months of age and older. Previously,VAQTA was approved for use in people two years of age and older.

Merck's Partnerships and Alliances

As reported by the Merck/Schering-Plough partnership, global salesof ZETIA and VYTORIN in the aggregate reached $630 million for thethird quarter and combined new prescriptions reached 13.7% of the U.S.lipid-lowering market, according to the most recent weekly IMS Healthdata. Sales for the first nine months were $1.7 billion.

Global sales by the Merck/Schering-Plough cholesterol partnershipof ZETIA, the cholesterol-absorption inhibitor also marketed asEZETROL outside the United States, reached $356 million in the thirdquarter, an increase of 21% compared with the third quarter of 2004.Sales for the first nine months were $1.0 billion, a 39% increase overthe comparable 2004 period. In the third quarter, ZETIA newprescriptions reached 6.4% of the U.S. lipid-lowering market,according to the most recent weekly IMS Health data.

Global sales of VYTORIN, also developed and marketed by theMerck/Schering-Plough partnership, reached $274 million in the thirdquarter. VYTORIN, marketed outside the United States as INEGY, is thefirst single cholesterol treatment to provide LDL cholesterol loweringthrough the dual inhibition of cholesterol production and absorption.Sales for the first nine months were $673 million. In the thirdquarter, VYTORIN new prescriptions reached 7.3% of the U.S.lipid-lowering market, according to the most recent weekly IMS Healthdata.

Merck earns ongoing revenue based on sales of products that areassociated with alliances, the most significant of which isAstraZeneca LP. Revenue from AstraZeneca LP recorded by Merck was $444million in the third quarter and $1.2 billion in the first nine monthsof the year.

Merck's Pipeline Continues to Progress

Merck continued to make progress on its three investigationalvaccines in late-stage development, two of which--ROTATEQ andZOSTAVAX--are under review by the FDA and other regulatory agenciesaround the world. These vaccines represent significant newopportunities for Merck in the pediatric, adolescent and adult vaccinemarkets.

On Oct. 7th, Merck presented the first Phase III data on aninvestigational vaccine, GARDASIL. These data, presented at theInfectious Diseases Society of America (IDSA) annual meeting, reportedthat GARDASIL prevented 100% of high-grade cervical pre-cancers andnon-invasive cancers (CIN 2/3 and AIS) associated with humanpapillomavirus (HPV) types 16 and 18. CIN (cervical intraepithelialneoplasia) 2 is a moderate-grade lesion of the cervix while CIN 3represents both high-grade lesions and CIS (carcinoma in situ), theimmediate pre-cursor to invasive squamous cell cervical cancer. AIS isthe early development of adenocarcinoma (or glandular cancer) of thecervix.

The analysis compared GARDASIL to placebo in women who were notinfected with HPV 16 and 18 at enrollment and who remained free ofinfection through the completion of the seven-month vaccinationregimen. Women were followed for an average of two years afterenrollment. No cases of CIN 2/3 or AIS were observed in the vaccinegroup (n=5,301) compared to 21 cases in the placebo group (n=5,258).

A secondary analysis, also presented at IDSA, evaluated theincidence of CIN 2/3 and AIS starting 30 days after the administrationof the first dose in all of the women in the primary analysis group,as well as women who may have become infected with HPV 16 or 18 duringthe vaccination period. Women who may have violated the protocol insignificant ways (for example, by missing certain protocol visits)were also included. On average, these women were followed forapproximately two years. In this group, GARDASIL reduced the risk ofdeveloping high-grade pre-cancer and non-invasive cancer (CIN 2/3, orAIS) associated with HPV 16 and 18 by 97% (n=5,736); one case wasobserved in the vaccine group compared to 36 in the placebo group(n=5,766).

This trial is part of the ongoing Phase III program for GARDASIL,which involves more than 25,000 people in 33 countries worldwide.Merck remains on track to submit a Biologics License Application forGARDASIL to the FDA in the fourth quarter of 2005.

In other pipeline news, Merck presented two studies of Phase IIdata on Merck's DPP-4 inhibitor, sitagliptin (MK-0431), a potentialnew approach in the treatment of type 2 diabetes, at the 41st annualmeeting of the European Association for the Study of Diabetes (EASD)held in September. The studies showed that sitagliptin significantlyimproved glycemic control in patients with primarily mild-to-moderatehyperglycemia and in patients with more severe hyperglycemia, ascompared with placebo. In these studies, sitagliptin was generallywell tolerated. The Phase III studies of sitagliptin are under way andMerck anticipates filing the New Drug Application (NDA) with the FDAin 2006.

Last week, Merck and Bristol-Myers Squibb jointly announced thatthe FDA issued an approvable letter for PARGLUVA, the companies'investigational oral medicine for the treatment of type 2 diabetes.The FDA requested additional safety information from ongoing trials,or those completed since the safety data from the last formalregulatory submission, to address more fully the cardiovascular safetyprofile of PARGLUVA. The companies are eager to begin discussions withthe FDA to address this issue and to determine what additionalinformation may be necessary.

In September, the FDA's Endocrinologic and Metabolic DrugsAdvisory Committee voted to recommend approval of PARGLUVA for use asmonotherapy and in combination with metformin for type 2 diabetes.

Merck continues its strategy of establishing strong externalalliances to complement our substantial internal researchcapabilities, including research collaborations, licensingpre-clinical and clinical compounds and technology transfers to driveboth near- and long-term growth. This year to date, a substantialnumber of agreements have been executed or are in the final stages ofnegotiation.

In September, for example, FoxHollow Technologies and Merckannounced the formation of a novel pharmacogenomics collaboration. Thecollaboration will focus on analyzing atherosclerotic plaque removedfrom patient arteries as a means of identifying new biomarkers ofatherosclerotic disease progression for use in the development ofcardiovascular compounds in Merck's pipeline. The agreement includes aresearch collaboration of up to three years.

Agensys, Inc., a cancer biotechnology company, and Merck announcedlast week that they have formed a global alliance to jointly developand commercialize AGS-PSCA, Agensys' fully human monoclonal antibody(MAb) to Prostate Stem Cell Antigen (PSCA).

VIOXX Update

This update supplements information previously provided by theCompany. Commencing with the Company's report on Form 10-Q for thefirst quarter of 2006, the Company generally intends to give updateson VIOXX litigation through its periodic filings with the Securitiesand Exchange Commission (SEC).

As previously disclosed, individual and putative class actionshave been filed against the Company in state and federal courtsalleging personal injury and/or economic loss with respect to thepurchase or use of VIOXX. A number of these actions are coordinated inseparate proceedings in a multidistrict litigation in the U.S.District Court for the Eastern District of Louisiana (the "MDL"), NewJersey state court, California state court, Texas state court andPhiladelphia, Pennsylvania. As of Sept. 30, 2005 the Company has beenserved or is aware that it has been named as a defendant inapproximately 6,400 lawsuits, which include approximately 11,700plaintiff groups alleging personal injuries resulting from the use ofVIOXX, and in approximately 160 putative class actions allegingpersonal injuries and/or economic loss (all of the actions discussedin this paragraph are collectively referred to as the "VIOXX ProductLiability Lawsuits"). Of these lawsuits, approximately 2,900representing approximately 6,300 plaintiff groups are or are slated tobe in the federal MDL and approximately 2,750 representingapproximately 2,750 plaintiff groups are included in a coordinatedproceeding in New Jersey Superior Court before Judge Carol E. Higbee.In addition, as of Sept. 30, 2005, approximately 3,000 claimants hadentered into Tolling Agreements with the Company, which halt therunning of applicable statutes of limitations.

As previously disclosed, on Aug. 19, 2005, in a trial in statecourt in Texas, the jury in Ernst v. Merck reached a verdict in favorof the plaintiff and purported to award her a total of $253 million incompensatory and punitive damages. Under Texas law, the maximum amountthat could be awarded to the plaintiff is capped at approximately $26million. The Company intends to appeal this verdict after thecompletion of post-trial proceedings in the trial court. The Companybelieves that it has strong points to raise on appeal and is hopefulthat the appeals process will correct the verdict.

As previously reported, the trial in Humeston v. Merck iscurrently ongoing in New Jersey state Superior Court before a jury,with Judge Higbee presiding.

On Aug. 3, 2005, Judge Eldon E. Fallon issued an order setting theEvelyn Irvin Plunkett v. Merck case as the first case to be tried inthe MDL. The trial currently is scheduled to begin on Nov. 28, 2005,in Houston, Texas and has been brought by Evelyn Irvin Plunkett, onbehalf of her late husband Richard Irvin, Jr., who died from anapparent heart attack. Plaintiff alleges that Mr. Irvin took VIOXX forapproximately one month.

Judge Fallon has also scheduled three additional trials in the MDLwhich are currently scheduled to commence in February, March, andApril 2006, respectively. In addition, there are other state courttrials currently scheduled in the next six months and beyond,including Zajicek v. Merck and Guerra v. Merck, each in Texas, inMarch and April 2006, respectively.

Also, the Company has been named as a defendant in separatelawsuits brought by the Attorneys General of Louisiana, Mississippi,and Texas. These actions allege the Company misrepresented the safetyof VIOXX and seek (i) recovery of the cost of VIOXX purchased orreimbursed by the state and its agencies; (ii) reimbursement of allsums paid by the state and its agencies for medical services for thetreatment of persons injured by VIOXX; (iii) damages under variouscommon law theories; and/or (iv) various remedies under state consumerfraud and fair business practices or Medicaid fraud statutes,including civil penalties.

On Aug. 15, 2005, a complaint was filed in Oregon state court bythe State of Oregon through the Oregon state treasurer on behalf ofthe Oregon Public Employee Retirement Fund against the Company andcertain current and former officers and directors. The complaint,which was brought under Oregon securities law, alleges that plaintiffhas suffered damages in connection with its purchases of Merck commonstock at artificially inflated prices due to the Company's allegedviolations of law related to disclosures about VIOXX.

In addition, as previously disclosed, on July 29, 2005, a NewJersey state trial court certified a nationwide class of third-partypayors (such as unions and health insurance plans) that paid in wholeor in part for the VIOXX used by their plan members or insureds. Thenamed plaintiff in that case seeks recovery of certain VIOXX purchasecosts (plus penalties) based on allegations that the purported classmembers paid more for VIOXX than they would have had they known of theproduct's alleged risks. Merck believes that the class was improperlycertified. The trial court's ruling is procedural only; it does notaddress the merits of the plaintiff's allegations, which the Companyintends to defend vigorously. The New Jersey state Superior Court,Appellate Division, has accepted Merck's appeal for review on anexpedited basis.

As reported above, the Humeston v. Merck product liability trialis currently ongoing in New Jersey. Additional product liabilitytrials have also been scheduled. The Company cannot predict the timingof any trials with respect to the VIOXX Shareholder Lawsuits. TheCompany believes that it has meritorious defenses to the VIOXXLawsuits and will vigorously defend against them. In view of theinherent difficulty of predicting the outcome of litigation,particularly where there are many claimants and the claimants seekindeterminate damages, the Company is unable to predict the outcome ofthese matters, and at this time cannot reasonably estimate thepossible loss or range of loss with respect to the VIOXX Lawsuits. Asof Dec. 31, 2004, the Company had established a reserve of $675million solely for its future legal defense costs related to the VIOXXLawsuits and the VIOXX Investigations. In the third quarter, theCompany did not increase the VIOXX legal defense reserve. The Companywill continue to monitor its legal defense costs and review theadequacy of the associated reserves.

The Company has not established any reserves for any potentialliability relating to the VIOXX Lawsuits and the VIOXX Investigations.Unfavorable outcomes in the VIOXX Lawsuits or resulting from the VIOXXInvestigations could have a material adverse effect on the Company'sfinancial position, liquidity and results of operations.

Merck's Response to Global Natural Disasters

Merck's facilities were not affected by Hurricanes Katrina orRita. During the quarter, Merck assisted with the hurricane reliefefforts by making cash grants and donations of medicines and vaccinestotalling more than $12 million. The Company also committed toreplacing prescription medicines for patients (through retailpharmacies or Merck's Patient Assistance Program) who may have losttheir existing prescriptions as a result of Hurricanes Katrina andRita. In addition, Merck and its employees have made contributions tothe relief efforts in Pakistan and Central America.

Earnings Conference Call

Investors are invited to a live Web cast of Merck's third-quarterearnings conference call today at 9 a.m. EDT, by visiting the Newsroomsection of Merck's Web site (www.merck.com/newsroom/webcast).Institutional investors and analysts can participate in the call bydialing (706) 758-9927. Journalists are invited to listen by calling(706) 758-9928. A replay of the Web cast will be available starting at1 p.m. EDT today through 5 p.m. EST on Oct. 31. To listen to thereplay, dial (706) 645-9291 or (800) 642-1687 and enter ID # 9255693.

* COZAAR and HYZAAR are registered trademarks of E.I. DuPont deNemours & Company, Wilmington, Del.

About Merck

Merck & Co., Inc. is a global research-driven pharmaceuticalcompany dedicated to putting patients first. Established in 1891,Merck discovers, develops, manufactures and markets vaccines andmedicines in more than 20 therapeutic categories. The Company devotesextensive efforts to increase access to medicines through far-reachingprograms that not only donate Merck medicines but help deliver them tothe people who need them. Merck also publishes unbiased healthinformation as a not-for-profit service. For more information, visitwww.merck.com.

Forward-Looking Statement

This press release, including the financial information thatfollows, contains "forward-looking statements" as that term is definedin the Private Securities Litigation Reform Act of 1995. Thesestatements involve risks and uncertainties, which may cause results todiffer materially from those set forth in the statements. Theforward-looking statements may include statements regarding productdevelopment, product potential or financial performance. Noforward-looking statement can be guaranteed, and actual results maydiffer materially from those projected. Merck undertakes no obligationto publicly update any forward-looking statement, whether as a resultof new information, future events, or otherwise. Forward-lookingstatements in this press release should be evaluated together with themany uncertainties that affect Merck's business, particularly thosementioned in the cautionary statements in Item 1 of Merck's Form 10-Kfor the year ended Dec. 31, 2004, and in its periodic reports on Form10-Q and Form 8-K, which the Company incorporates by reference.

Merck Financial Guidance for 2005

Worldwide net sales will be driven by the Company's majorproducts, including the impact of new studies and indications. Salesforecasts for those products for 2005 are as follows:
WORLDWIDE
PRODUCT 2005 NET SALES
ZOCOR (Cholesterol modifying) $4.2 to $4.5 billion
FOSAMAX (Osteoporosis) $3.1 to $3.4 billion
COZAAR/HYZAAR (Hypertension) $2.9 to $3.2 billion
SINGULAIR (Respiratory) $2.9 to $3.2 billion
Other reported products* $5.9 to $6.2 billion

*Other reported products comprise: AGGRASTAT, ARCOXIA, CANCIDAS,COSOPT, CRIXIVAN, EMEND, INVANZ, MAXALT, PRIMAXIN, PROPECIA, PROSCAR,STOCRIN, TIMOPTIC/TIMOPTIC XE, TRUSOPT, Vaccines andVASOTEC/VASERETIC.

-- Under an agreement with AstraZeneca (AZN), Merck receives revenue at predetermined percentages of the U.S. sales of certain products by AZN, most notably NEXIUM. In 2005, Merck anticipates these revenues to be approximately $1.5 to $1.7 billion.

-- The income contribution related to the Merck and Schering-Plough collaboration is expected to be positive in 2005. Equity Income from Affiliates includes the results of the Merck and Schering-Plough collaboration combined with the results of Merck's other joint venture relationships. Equity Income from Affiliates is expected to be approximately $1.5 to $1.7 billion for 2005.

-- Merck continues to expect that manufacturing productivity will offset inflation on product costs.

-- Product gross margin percentage is estimated to be approximately 77 to 78% for the full-year 2005.

-- Research and Development expense (which excludes joint ventures) is estimated to decline at a low-to-mid single-digit percentage rate versus the full-year 2004 level. The full-year 2004 level referred to includes acquired R&D expenses in that year.

-- Marketing and Administrative expense is anticipated to increase at a mid single-digit percentage growth rate over the full-year 2004 level. The full-year 2004 level excludes the costs related to the withdrawal of VIOXX and the charge taken in the fourth quarter related solely to future legal defense costs of VIOXX litigation. The full-year 2004 and full-year 2005 exclude the costs associated with position eliminations that occurred in 2004 and in the third quarter of 2005.

-- The consolidated 2005 tax rate is estimated to be approximately 27.5 to 28.5% (excluding the net tax charge in the second quarter).

-- Merck plans to continue its stock buyback program in 2005. As of Sept. 30, $7.8 billion remains under the current buyback authorizations approved by Merck's Board of Directors.

Given these guidance elements, Merck anticipates full-year 2005EPS of $2.47 to $2.51, excluding the net tax charge of $0.29 cents inthe second quarter. Merck anticipates reported full-year 2005 EPS of$2.18 to $2.22.

This guidance does not reflect the establishment of any reservesfor any potential liability relating to the VIOXX litigation.

About Merck

Merck & Co., Inc. is a global research-driven pharmaceuticalcompany dedicated to putting patients first. Established in 1891,Merck discovers, develops, manufactures and markets vaccines andmedicines in more than 20 therapeutic categories. The Company devotesextensive efforts to increase access to medicines through far-reachingprograms that not only donate Merck medicines but help deliver them tothe people who need them. Merck also publishes unbiased healthinformation as a not-for-profit service. For more information, visitwww.merck.com.

Forward-Looking Statement

This press release contains "forward-looking statements" as thatterm is defined in the Private Securities Litigation Reform Act of1995. These statements involve risks and uncertainties, which maycause results to differ materially from those set forth in thestatements. The forward-looking statements may include statementsregarding product development, product potential or financialperformance. No forward-looking statement can be guaranteed, andactual results may differ materially from those projected. Merckundertakes no obligation to publicly update any forward-lookingstatement, whether as a result of new information, future events, orotherwise. Forward-looking statements in this press release should beevaluated together with the many uncertainties that affect Merck'sbusiness, particularly those mentioned in the cautionary statements inItem 1 of Merck's Form 10-K for the year ended Dec. 31, 2004, and inits periodic reports on Form 10-Q and Form 8-K, which the companyincorporates by reference.
The following table shows the financial results for Merck & Co., Inc.
and subsidiaries for the quarter ended September 30, 2005, compared
with the corresponding period of the prior year.

Merck & Co., Inc.
Consolidated Results
(In Millions Except Earnings per Common Share)
Quarter Ended September 30
(Unaudited)
%
2005 2004 Change
-----------------------------
Sales $5,416.2 $5,538.1 -2%

Costs, Expenses and Other
Materials and production 1,238.8 1,364.2 -9
Marketing and administrative (1) 1,741.2 1,752.9 -1
Research and development 942.6 919.3 3
Equity income from affiliates (480.1) (307.1) 56
Other (income) expense, net (24.7) (4.2) *

Income Before Taxes 1,998.4 1,813.0 10

Taxes on Income (2) 577.5 487.4

Net Income $1,420.9 $1,325.6 7

Average Shares Outstanding
Assuming Dilution 2,197.0 2,226.2

Earnings per Common Share
Assuming Dilution $0.65 $0.60 8


* (Greater than) 100%


(1) Marketing and administrative expense includes $80 million and $34
million for restructuring costs recorded in 2005 and 2004,
respectively.

(2) The effective tax rate was 28.9% and 26.9% for the third quarter
of 2005 and 2004, respectively.


The following table shows the financial results for Merck & Co., Inc.
and subsidiaries for the nine months ended September 30, 2005,
compared with the corresponding period of the prior year.

Merck & Co., Inc.
Consolidated Results
(In Millions Except Earnings per Common Share)
Nine Months Ended September 30
(Unaudited)
%
2005 2004 Change
------------------------------
Sales $16,246.0 $17,190.7 -5%

Costs, Expenses and Other
Materials and production 3,670.9 3,676.2 --
Marketing and administrative (1) 5,109.8 4,980.5 3
Research and development (2) 2,736.0 2,901.6 -6
Equity income from affiliates (1,130.5) (722.3) 57
Other (income) expense, net 15.8 (240.0) *

Income Before Taxes 5,844.0 6,594.7 -11

Taxes on Income (3) 2,332.4 1,882.4

Net Income $3,511.6 $4,712.3 -25

Average Shares Outstanding
Assuming Dilution 2,204.3 2,229.5

Earnings per Common Share
Assuming Dilution $1.59 $2.11 -25

Adjusted Net Income and Earnings per
Common Share
Net Income (4) $4,151.9 $4,712.3 -12
Earnings per Common Share
Assuming Dilution (4) $1.88 $2.11 -11
Effective Tax Rate 29.0% 28.5%

* (Greater than) 100%

(1) Marketing and administrative expense includes $95 million and $90
million for restructuring costs recorded for the first nine months
of 2005 and 2004, respectively.

(2) Research and development expense includes acquired research
expense of $125 million resulting from the acquisition of Aton
Pharma, Inc. in 2004 and licensing expense for research
collaborations, including the initial payments of $100 million to
Bristol-Myers Squibb and $70 million to Lundbeck in 2004.

(3) The effective tax rate was 39.9% and 28.5% for the first nine
months of 2005 and 2004, respectively. Included in the second
quarter 2005 is a net tax charge of $640 million primarily related
to the American Jobs Creation Act. This net tax charge resulted in
an increase of 10.9 percentage points to the effective tax rate
for the first nine months of 2005.

(4) The difference between as reported net income and earnings per
common share and adjusted net income and earnings per common share
is the exclusion of $640 million of net tax charge, or $0.29 per
share, as described in footnote (3).