Nestle Sells Alcon Shares to Novartis

As a result of the conclusion of the regulatory process, Nestle completed its sale of 24.8 percent of Alcon's issued and outstanding capital to Novartis on July 7, 2008. The cash transaction concerns 74 million Alcon shares at $143.1783 per share, with an aggregate value of $10.4 billion after dividend adjustment. There is no capital gains tax impact on Nestle, and the company retains close to 52 percent of Alcon's issued and outstanding capital, continuing to fully consolidate Alcon. The proceeds of the transaction will be used to reduce debt as Nestle pursues its share buy-back program. Furthermore, as already announced on April 7, 2008, Nestle has a put option and Novartis a call option exercisable in the period from January 2010 to July 2011 on the remaining Alcon shares owned by Nestle.