Novartis successfully launches EUR 1.5 billion notes issue

Corporate news announcement processed and transmitted by Hugin AS. The issuer is solely responsible for the content of this announcement. ---------------------------------------------------------------------- -------------- Basel, Switzerland, June 2, 2009 - Novartis has successfully launched a notes issue of EUR 1.5 billion with a coupon of 4.25% under its EUR 15 billion Euro Medium Term Note Programme. Proceeds will be used for general corporate purposes. The seven-year note was priced at 99.757% and has a maturity date of June 15, 2016. It is guaranteed by Novartis AG, which is incorporated in Switzerland and is the ultimate parent company of Novartis Finance S.A., Luxembourg, the issuing entity. This offering was met with considerable interest, reflected by the fact it was oversubscribed more than four times and was placed to a diversified and international investor base. Novartis AG is rated Aa2 (stable outlook) by Moody's, AA- (stable outlook) by Standard & Poor's and AA (stable outlook) by Fitch. Barclays, BNP Paribas and Deutsche Bank were joint book-runners. Disclaimer This release contains certain forward-looking statements relating to the Group's business, which can generally be identified by the terminology such as "will," or similar expressions, or by express or implied discussions regarding the potential value of the notes described in this release, the Group's ability to repay all or any part of the notes, or potential future sales or earnings of the Group; or by discussions of strategy, plans, expectations or intentions. You should not place undue reliance on these statements. Such forward-looking statements reflect the current views of the Group regarding future events, and involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any future results, performance or achievements expressed or implied by such statements. There can be no guarantee that the notes will have any particular value or can be sold or re-sold for any particular value. Nor can there be any guarantee that the Group will be able to repay all or any part of the notes. Neither can there be any guarantee that the Group, or any of its divisions or business units, will achieve any particular financial results. In particular, management's expectations could be affected by, among other things, whether or not a market develops for the notes; whether or not we issue additional secured or unsecured debt in the future; whether we decide to redeem the notes; uncertainties involved in the development of new pharmaceutical products; unexpected clinical trial results, including additional analysis of existing clinical data or unexpected new clinical data; unexpected regulatory actions or delays with respect to our regulated products, or government regulation generally; the Group's ability to obtain or maintain patent or other proprietary intellectual property protection, including the uncertainties involved in the US litigation process; competition in general; government, industry and general public pricing and other political pressures; the impact that the foregoing factors could have on the values attributed to the Group's assets and liabilities as recorded in the Prospectus and Prospectus Supplement relating to the Programme and any notes thereunder, and in Novartis AG's current Form 20-F filed with the US Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated or expected. Novartis is providing the information in this release as of this date and does not undertake any obligation to update any forward-looking statements as a result of new information, future events or otherwise. About Novartis Novartis AG provides healthcare solutions that address the evolving needs of patients and societies. Focused solely on healthcare, Novartis offers a diversified portfolio to best meet these needs: innovative medicines, cost-saving generic pharmaceuticals, preventive vaccines, diagnostic tools and consumer health products. Novartis is the only company with leading positions in these areas. In 2008, the Group's continuing operations achieved net sales of USD 41.5 billion and net income of USD 8.2 billion. Approximately USD 7.2 billion was invested in R&D activities throughout the Group. Headquartered in Basel, Switzerland, Novartis Group companies employ approximately 98,000 full-time-equivalent associates and operate in more than 140 countries around the world. For more information, please visit # # # Novartis Media Relations Central media line: +41 61 324 2200 Eric Althoff Novartis Global Media Relations +41 61 324 7999 (direct) +41 79 593 4202 (mobile) e-mail: Novartis Investor Relations Central phone: +41 61 324 7944 Ruth Metzler-Arnold +41 61 324 North America: 9980 Pierre-Michel +41 61 324 Richard Jarvis +1 212 830 Bringer 1065 2433 John Gilardi +41 61 324 Jill Pozarek +1 212 830 3018 2445 Thomas Hungerbuehler +41 61 324 Edwin Valeriano +1 212 830 8425 2456 Isabella Zinck +41 61 324 7188 e-mail: e-mail: --- End of Message --- Novartis International AG Posfach Basel WKN: 904278; ISIN: CH0012005267; Index: SLCI, SMI, SPI, SLIFE; Listed: Main Market in SIX Swiss Exchange, ZLS in BX Berne eXchange;