2009 EPS Guidance

Henry Schein affirmed 2009 financial guidance, as follows:

Looking ahead for 2009, Henry expects diluted EPS to be $3.11 to $3.26, representing growth of 7% to 12% against restated 2008 results of $2.92, excluding charges related to the Lehman Brothers bankruptcy as well as restructuring costs. The 2009 guidance also excludes the effects of restructuring costs.

Income from continuing operations attributable to Henry Schein, Inc. for the first quarter of 2009 was $54.9 million, or $0.61 per diluted share. These results include restructuring costs of $4.0 million (or $0.03 per diluted share, after-tax) related to the completion of the expense reduction program announced in November 2008. Excluding the impact of these restructuring costs, income from continuing operations attributable to Henry for the quarter was $57.6 million, or $0.64 per diluted share, an up of 11.9% and 14.3%, respectively, against the first quarter of 2008

Income from continuing operations for the first quarter of 2008 has been restated for the adoption of FASB Staff Position APB 14-1, which requires the recognition of non-cash interest expense related to convertible debt. The impact of this adoption decreased first quarter 2008 diluted EPS by approximately $0.01.

“With market conditions largely as we expected during the quarter, we remain committed to managing expenses and delivering growth in diluted EPS from continuing operations,” said Stanley M. Bergman, chairman and chief executive officer of Henry. “Our operating margin excluding restructuring costs once again expanded, up 77 basis points for the quarter to 6.4%. This is primarily a reflection of effective expense management. We continue to have a very strong balance sheet with $308 million in cash at quarter-end, and access to capital at favorable terms.”

Dental Group sales of $597 million declined 2.4%, consisting of a 0.4% decline in local currencies and a 2% decline related to foreign currency exchange. The 0.4% decline in local currencies consists of 1% growth in Dental consumable merchandise sales and a 5.1% decline in Dental equipment sales and service revenues.

Medical Group sales of $327 million declined 1.2%, and were negatively impacted by higher sales of private label products, increased sales of generic pharmaceuticals, and manufacturer shortages of certain vaccines.

International Group sales of $524 million declined 3.0%, consisting of 16.2% growth in local currencies and a 19.2% decline related to foreign currency exchange.

“International internal sales growth in local currencies was nearly 6%, reflecting particular strength in Australia and New Zealand, as well as with our European veterinary business,” added Bergman. “We were encouraged by the excellent attendance at the biennial International Dental Show held late in the quarter in Cologne, Germany, which is one of the largest and most important gatherings of dentists from across Europe. Our booth was busy, and equipment orders exceeded those received at the 2007 show.”

Technology and Value-Added Services Group sales of $40 million increased 3.9% during first quarter of 2009, consisting of 8.8% growth in local currencies and a 4.9% decline related to foreign currency exchange.

“Our electronic services business was particularly strong during the quarter, up more than 20%, while financial services revenue reflects 3.5% growth in equipment and practice financing,” stated Bergman.

Restructuring Costs

The company reported $4.0 million of costs in the first quarter of 2009 for restructuring actions taken to complete the expense reduction program initiated in the fourth quarter of 2008. The program, which resulted in the elimination of about 400 positions and the closure of several smaller facilities, is now complete and is expected to provide about $24 to $27 million in annual pretax cost savings.