Net earnings attributable to MeadJohnson Nutrition Company (MJN) for the first quarter of 2009 totaled $103.5million, or $0.55 per diluted share, compared with $130.6 million, or $0.77 perdiluted share, for the year-ago quarter. This decline in earnings per share isdue to the factors affecting comparability noted above. In addition, there wereapproximately 188.8 million weighted-average shares outstanding in the firstquarter of 2009, versus 170.0 million shares in the first quarter of 2008. First Quarter GAAP Segment ResultsThe Asia/Latin America segment reported net sales of $389.8 million for thefirst quarter of 2009, up from $349.2 million for the first quarter of 2008.Earnings before interest and taxes (EBIT) totaled $148.7 million for the firstquarter of 2009, compared with $131.5 million in the year-ago first quarter. The North America/Europe segment reported net sales of $303.2 million for thefirst quarter of 2009, down from $354.1 million for the first quarter of 2008.EBIT totaled $101.2 million for the first quarter of 2009, compared with $122.8million for the year-ago first quarter.

First Quarter Non-GAAP ResultsSpecified IPO costs and other items affect the comparability of the company`sfinancial results between 2008 and 2009. Therefore, the company believes thatusing non-GAAP financial measures adjusted for the impact of the IPO and otheritems provide a better indication of the company`s underlying operating resultsand enhance an investor`s ability to understand the company`s financialperformance. For the first quarter of 2009, non-GAAP net sales were down slightly to $693.0million from $696.0 million a year earlier. Sales benefited from higher pricingby 8 percent, which was offset by the effect of currency, which reduced sales by7 percent, and volume, which was down 1 percent. Significant volume growth wasreported in international markets, particularly in Asia where volume grew indouble digits. These gains were offset by declines in the United States.Non-GAAP EBIT decreased 2 percent to $203.6 million in the first quarter of2009, down from $207.3 million. Non-GAAP net earnings attributable to MJNincreased 2 percent in the first quarter of 2009 to $115.8 million, or $0.57 perdiluted share, up from $113.5 million, or $0.56 per diluted share, for the samequarter a year ago.

Non-GAAP gross margin for the first quarter of 2009 was unchanged compared withthe year-ago quarter. The benefits from higher prices and ongoing productivityimprovements completely offset the adverse effect of changes in geographic andproduct mix and lower fixed-cost absorption due to the increase in manufacturingcapacity to support future growth. The increase in operating expenses in thefirst quarter of 2009 was primarily due to higher investment spending to buildthe sales force in China and approximately $6 million of costs associated withbeing a stand-alone public company. The expense increase was partially offset bylower advertising and promotional spending, which reflects the timing of newproducts scheduled to be introduced later in the year. Non-GAAP earnings attributable to MJN and EPS in 2009 benefited from a lower ETRcompared with 2008. The non-GAAP ETR in the first quarter of 2009 was 32.3percent versus 36.3 percent for the year-ago first quarter.

The lower rate wasachieved by permanently reinvesting earnings from certain internationalsubsidiaries outside the United States. First Quarter Non-GAAP Segment ResultsThe Asia/Latin America segment reported non-GAAP sales of $389.8 million for thefirst quarter of 2009, a 13 percent increase from $344.0 million for the firstquarter a year ago. The 13 percent sales increase was comprised of a 15 percentbenefit from price and 8 percent from volume, which was reduced by 10 percentdue to the impact of foreign exchange. The Asia/Latin America segment reported non-GAAP EBIT of $148.7 million for thefirst quarter of 2009, up 14 percent from $130.6 million a year earlier. Theincrease in EBIT was primarily related to sales growth and the timing of expensespending for new product introductions, offset by the adverse impact fromforeign exchange.