Contacts

Darcie Peck
Investor Relations              
(203) 845-5237     
dpeck@imshealth.com

Gary Gatyas
Communications
(610) 834-4596
ggatyas@us.imshealth.com

Results in U.S., Consulting Drive Growth

NORWALK, CT, October 17, 2007 – IMS Health (NYSE: RX), the world’s leading provider of market intelligence to the pharmaceutical and healthcare industries, today announced third-quarter 2007 revenue of $538.8 million, up 12 percent or 8 percent on a constant-dollar basis, compared with revenue of $482.7 million for the third quarter of 2006.

Operating income in the third quarter of 2007 was $117.1 million, up 1 percent on both a reported and constant-dollar basis, compared with $115.4 million in the year-earlier period.

“IMS’s results for the third quarter reflect solid gains in our U.S. operations and more moderate growth in Europe,” said David R. Carlucci, IMS chairman and chief executive officer. “In an increasingly demanding healthcare environment, momentum in our consulting business was very strong as clients continue to recognize the value of our strategic recommendations and industry perspective. Our clients’ challenges present considerable opportunities for us. We’re focused on these opportunities, and remain well-positioned to help drive their continued success.”

Third-quarter 2007 diluted earnings per share on a GAAP basis was $0.29, compared with $0.34 in the prior-year quarter, a 15 percent decline. Earnings per share for the third quarter of 2007 included a tax provision related to a change in the German federal tax rate. When adjusted for this item, and the phasing of tax benefits, tax provisions, and foreign exchange hedge gains and losses, earnings per share on a non-GAAP basis for this year’s third quarter would have been $0.36, unchanged year over year (See Note c to the financial tables).
 
Net income on a GAAP basis was $57.1 million, compared with $69.3 million in the year-earlier quarter, down 18 percent.  Net income for the third quarter of 2007 included the German tax provision. When adjusted for this item, and the phasing of tax benefits, tax provisions, and foreign exchange hedge gains and losses, net income on a non-GAAP basis for this year’s third quarter would have been $71.6 million, a decline of $1.9 million (See Note c to the financial tables).

Year-to-Date Results
For the first nine months of 2007, revenues were $1,586.6 million, up 12 percent or 9 percent constant dollar, compared with revenue of $1,415.1 million for the first nine months of 2006. Operating income for the first nine months of 2007 was $346.3 million, up 9 percent on a reported and constant-dollar basis, compared with $318.5 million in the year-earlier period.

For the first nine months of 2007, diluted earnings per share on a GAAP basis was $1.08, compared with $1.20 in the prior-year period. Earnings per share for the first nine months of 2007 and 2006 included net tax benefits and foreign exchange hedge gains and losses, while the second quarter of 2006 included income and expenses related to the terminated merger with The Nielsen Company (formerly VNU, N.V.). When adjusted for these items, on a non-GAAP basis, earnings per share for the first nine months of 2007 would have grown $0.09 year over year to $1.10 (See Note c to the financial tables).

Net income on a GAAP basis was $216.1 million, compared with $250.0 million in the first nine months of 2006.  Net income for the first nine months of 2007 and 2006 included net tax benefits and foreign exchange hedge gains and losses, while the second quarter of 2006 included merger-related income and expenses.  Adjusted for these items, on a non-GAAP basis, net income for this year’s first nine months would have grown $11.3 million to $220.9 million (See Note c to the financial tables).

Balance Sheet Highlights
IMS’s cash and cash equivalents as of September 30, 2007 totaled $196.0 million, compared with $157.3 million on December 31, 2006.  Total debt as of September 30, 2007 was $1,197.6 million, up from $975.4 million at the end of 2006, due to borrowings in connection with 2007 share repurchases.

Share Repurchase Program, Shares Outstanding
During the third quarter, 2.0 million shares were repurchased at a total cost of $59.2 million, bringing the total shares repurchased in the first nine months of 2007 to 13.2 million shares at a total cost of $392.8 million.  There remain approximately 3.3 million shares available to repurchase under the current Board of Directors’ authorization.

The number of shares outstanding as of September 30, 2007 was approximately 194.0 million, compared with 198.4 million as of September 30, 2006.

About IMS
Operating in more than 100 countries, IMS Health is the world’s leading provider of market intelligence to the pharmaceutical and healthcare industries. With $2.0 billion in 2006 revenue and more than 50 years of industry experience, IMS offers leading-edge market intelligence products and services that are integral to clients’ day-to-day operations, including portfolio optimization capabilities; launch and brand management solutions; sales force effectiveness innovations; managed care and consumer health offerings; and consulting and services solutions that improve ROI and the delivery of quality healthcare worldwide. Additional information is available at http://www.imshealth.com.

Conference Call and Webcast Details 
IMS will host a conference call at 5:00 p.m. Eastern time today to discuss its third-quarter results. To participate, please dial 1-800-952-6697 (U.S. and Canada) and 1-212-231-2939 (outside the U.S. and Canada) approximately 15 minutes before the scheduled start of the call. The conference call also will be accessible live on the Investor Relations section of the IMS Website at www.imshealth.com. Prior to the conference call, a copy of this press release and any other financial or statistical information presented during the call will be made available in the “Investors” area of IMS’s Website.

A replay of the conference call will be available online on the “Investors” section of the IMS Website and via telephone by dialing 1-800-633-8284 (U.S. and Canada) or 1-402-977-9140 (outside the U.S. and Canada), and entering access code 21351004 beginning at 7:30 p.m. Eastern time today.

Third-Quarter 2007 Earnings Table (pdf)

Forward-Looking Statements
This press release includes statements that may constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.  Although IMS Health believes the expectations contained in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove correct.  This information may involve risks and uncertainties that could cause actual results of IMS Health to differ materially from the forward-looking statements.  Factors that could cause or contribute to such differences include, but are not limited to (i) the risks associated with operating on a global basis, including fluctuations in the value of foreign currencies relative to the U.S. dollar, and the ability to successfully hedge such risks, (ii) regulatory, legislative and enforcement initiatives, particularly in the areas of data access and utilization and tax, (iii) to the extent unforeseen cash needs arise, the ability to obtain financing on favorable terms, (iv) to the extent IMS Health seeks growth through acquisitions and joint ventures, the ability to identify, consummate and integrate acquisitions and joint ventures on satisfactory terms, (v) the ability to develop new or advanced technologies and systems for its businesses on time and on a cost-effective basis, and (vi) deterioration in economic conditions, particularly in the pharmaceutical, healthcare or other industries in which IMS Health’s customers operate. Additional information on factors that may affect the business and financial results of the Company can be found in the filings of the company made from time to time with the Securities and Exchange Commission.