News Release

Boston Scientific Announces Results for Second Quarter Ended June 30, 2009
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Boston Scientific Announces Results for Second Quarter Ended June 30, 2009
NATICK, Mass., July 20, 2009 /PRNewswire-FirstCall via COMTEX/ -- Boston Scientific Corporation (NYSE: BSX) today announced financial results for the second quarter ended June 30, 2009, as well as guidance for net sales and earnings per share (EPS) for the third quarter and full year 2009.

Second quarter highlights (Sales growth rates are constant currency):

    --  Increased sales seven percent to $2.074 billion and achieved adjusted
        EPS of $0.20, both at the high end of the Company's guidance range
        (GAAP EPS of $0.10)
    --  Increased worldwide sales of cardiac rhythm management (CRM) products 10
        percent, including a 13 percent increase in implantable cardioverter
        defibrillator (ICD) sales
    --  Increased worldwide sales of drug-eluting stent (DES) systems 14 percent
    --  Maintained leadership position in worldwide DES market, including a 50
        percent share of the U.S. market
    --  Increased worldwide Neuromodulation sales 18 percent

    --  Increased worldwide Endoscopy sales six percent, Urology/Gynecology
        seven percent

"I am excited about joining the Boston Scientific team and to help report a very good quarter," said Ray Elliott, President and Chief Executive Officer of Boston Scientific. "We delivered sales and earnings at the high end of our guidance range with almost all businesses and regions reporting solid results. The performance of our two largest businesses was particularly impressive, with Cardiovascular achieving mid-teens growth in DES sales and CRM recording its fifth consecutive quarter of double-digit growth in the U.S."

Net sales for the second quarter of 2009 were $2.074 billion, as compared to net sales of $2.024 billion for the second quarter of 2008, which included sales from divested businesses of $19 million. Excluding the impact of foreign currency and sales from divested businesses, net sales increased seven percent over the prior period.

Worldwide sales of the Company's CRM products for the second quarter -- on a reported basis -- were as follows:


    (in millions)              U.S.       International      Worldwide
    ------------         --------------- --------------- ---------------
                         Q2 2009 Q2 2008 Q2 2009 Q2 2008 Q2 2009 Q2 2008
                         ------- ------- ------- ------- ------- -------
      ICD systems           $315    $276    $139    $144    $454    $420
      Pacemaker systems       90      88      65      70     155     158

    Total CRM products      $405    $364    $204    $214    $609    $578
                            ====    ====    ====    ====    ====    ====

Worldwide sales of the Company's coronary stent systems for the second quarter -- on a reported basis -- were as follows:


    (in millions)              U.S.       International    Worldwide
    ------------         --------------- --------------- ---------------
                         Q2 2009 Q2 2008 Q2 2009 Q2 2008 Q2 2009 Q2 2008
                         ------- ------- ------- ------- ------- -------
      Drug-eluting          $238    $175    $203    $207    $441    $382
      Bare-metal              15      25      28      33      43      58
    Total coronary stent
     systems                $253    $200    $231    $240    $484    $440
                            ====    ====    ====    ====    ====    ====

Reported net income for the second quarter of 2009 was $158 million, or $0.10 per share. Reported results included intangible asset impairment charges, acquisition- and restructuring-related charges; discrete tax items and amortization expense (after-tax) of $139 million, or $0.10 per share, which consisted of:

    --  $8 million ($10 million pre-tax) of intangible asset impairment charges
        associated primarily with certain Urology-related intangible assets;
    --  $17 million, on both a pre-tax and after-tax basis, of purchased
        research and development charges, associated with the acquisition of
        certain technology rights;
    --  $22 million ($30 million pre-tax) of restructuring and
        restructuring-related charges associated with the Company's plant
        network optimization plan and expense and head count reduction
        initiatives;
    --  An $11 million credit for discrete tax items related to certain tax
        positions taken in a prior period; and

    --  $103 million ($126 million pre-tax) of amortization expense.

Adjusted net income for the second quarter of 2009, excluding these charges, was $297 million, or $0.20 per share.

Reported net income for the second quarter of 2008 was $98 million, or $0.07 per share. Reported results included acquisition-, divestiture-, and restructuring-related charges and amortization expense (after-tax) of $206 million, or $0.13 per share. Adjusted net income for the second quarter of 2008, excluding these charges, was $304 million, or $0.20 per share.

"We were also encouraged during the quarter by positive outcomes from three important trials -- MADIT-CRT, MADIT II and SYNTAX -- all of which provided additional evidence of the effectiveness of our products," said Elliott. "New products accounted for more than 40 percent of our sales this quarter, and we continue to bring a wide range of innovations to market. We recently received FDA approval for the TAXUS((R)) Liberte((R)) Atom(TM) Paclitaxel-Eluting Coronary Stent System, the TAXUS((R)) Liberte((R)) Long Paclitaxel-Eluting Coronary Stent System and an expanded indication for the SpyScope((R)) Access and Delivery Catheter, as well as CE Mark for the ENDOTAK RELIANCE((R)) 4-SITE Defibrillation Lead System and the LATITUDE((R)) Patient Management System. These approvals position us well for the remainder of the year and, perhaps more important, provide a springboard into 2010."

Guidance for Third Quarter and Full Year 2009

The Company estimates net sales for the third quarter of 2009 of between $2.0 billion and $2.1 billion. Adjusted earnings, excluding intangible asset impairment charges; acquisition-, divestiture-, litigation- and restructuring-related charges; and amortization expense, are estimated to range between $0.17 and $0.21 per share. The Company estimates net income on a GAAP basis of between $0.08 and $0.13 per share.

The Company has updated its net sales estimate for the full year of 2009 to between $8.1 billion and $8.4 billion. The Company expects adjusted earnings, excluding intangible asset impairment charges; acquisition-, divestiture-, litigation- and restructuring-related charges; discrete tax items, and amortization expense, for the full year of between $0.82 and $0.86 per share. The Company expects net income on a GAAP basis of between $0.47 and $0.53 per share.

Boston Scientific officials will be discussing these results with analysts on a conference call at 8:00 a.m. (ET) Tuesday, July 21, 2009. The Company will webcast the call to all interested parties through its website: www.bostonscientific.com. Please see the website for details on how to access the webcast. The webcast will be available for one year on the Boston Scientific website.

Boston Scientific is a worldwide developer, manufacturer and marketer of medical devices whose products are used in a broad range of interventional medical specialties. For more information, please visit: www.bostonscientific.com.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. Forward-looking statements may be identified by words like "anticipate," "expect," "project," "believe," "plan," "estimate," "intend" and similar words. These forward-looking statements are based on our beliefs, assumptions and estimates using information available to us at the time and are not intended to be guarantees of future events or performance. These forward-looking statements include, among other things, statements regarding our financial performance, our growth strategy, new product approvals, our market position, acquisitions and divestitures, restructuring activities and litigation matters. If our underlying assumptions turn out to be incorrect, or if certain risks or uncertainties materialize, actual results could vary materially from the expectations and projections expressed or implied by our forward-looking statements. These factors, in some cases, have affected and in the future (together with other factors) could affect our ability to implement our business strategy and may cause actual results to differ materially from those contemplated by the statements expressed in this press release. As a result, readers are cautioned not to place undue reliance on any of our forward-looking statements.

Factors that may cause such differences include, among other things: future economic, competitive, reimbursement and regulatory conditions; new product introductions; demographic trends; intellectual property; litigation; financial market conditions; and future business decisions made by us and our competitors. All of these factors are difficult or impossible to predict accurately and many of them are beyond our control. For a further list and description of these and other important risks and uncertainties that may affect our future operations, see Part I, Item IA- Risk Factors in our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission, which we may update in Part II, Item 1A - Risk Factors in Quarterly Reports on Form 10-Q we have filed or will file thereafter. We disclaim any intention or obligation to publicly update or revise any forward-looking statements to reflect any change in our expectations or in events, conditions, or circumstances on which those expectations may be based, or that may affect the likelihood that actual results will differ from those contained in the forward-looking statements. This cautionary statement is applicable to all forward-looking statements contained in this document.

Use of non-GAAP Financial Information

A reconciliation of the Company's non-GAAP financial measures to the corresponding GAAP measures, and an explanation of the Company's use of these non-GAAP measures, is included in the exhibits attached to this press release.

    CONTACT:

    Paul Donovan
    508-650-8541 (office)
    508-667-5165 (mobile)
    Media Relations
    Boston Scientific Corporation

    Larry Neumann
    508-650-8696 (office)
    Investor Relations
    Boston Scientific Corporation



                             BOSTON SCIENTIFIC CORPORATION
                   CONDENSED CONSOLIDATED GAAP RESULTS OF OPERATIONS
                                      (Unaudited)

                                    Three Months Ended    Six Months Ended
                                         June 30,             June 30,
                                    ------------------   ------------------
    in millions, except
     per share data                   2009      2008       2009      2008
    -------------------               ----      ----       ----      ----

    Net sales                       $2,074    $2,024     $4,084    $4,071
    Cost of products sold              630       604      1,237     1,185
                                    ------------------   ------------------

    Gross profit                     1,444     1,420      2,847     2,886

    Operating expenses:
      Selling, general and
       administrative expenses         671       655      1,321     1,315
      Research and development
       expenses                        263       253        520       497
      Royalty expense                   53        48         98        94
      Loss on program termination       16                   16
      Amortization expense             126       135        255       279
      Intangible asset impairment
       charges                          10                   10
      Purchased research and
       development                      17        16         17        29
      Gain on divestitures                                           (250)
      Restructuring charges             13        10         36        39
      Litigation-related charges                            287
                                    ------------------   ------------------
                                     1,169     1,117      2,560     2,003
                                    ------------------   ------------------
    Operating income                   275       303        287       883

    Other income (expense):
      Interest expense                 (92)     (118)      (194)     (249)
      Other, net                        (3)      (85)       (10)      (72)
                                    ------------------   ------------------

    Income before income taxes         180       100         83       562
      Income tax expense
       (benefit)                        22         2        (62)      142
                                    ------------------   ------------------

    Net income                        $158       $98       $145      $420
                                    ==================   ==================

    Net income per common
     share - basic                   $0.10     $0.07      $0.10     $0.28
    Net income per common
     share - assuming dilution       $0.10     $0.07      $0.10     $0.28

    Weighted-average shares
     outstanding
    -----------------------
    Basic                          1,506.8   1,497.6    1,505.8   1,495.8
    Assuming dilution              1,514.5   1,505.2    1,511.6   1,502.6



                           BOSTON SCIENTIFIC CORPORATION
                      CONDENSED CONDOLIDATED BALANCE SHEETS

                                                  June 30,       December 31,
    in millions, except share data                  2009              2008
                                                (Unaudited)
    ------------------------------------------------------------------------
    ASSETS
    Current assets:
      Cash and cash equivalents                   $ 1,194           $ 1,641
      Trade accounts receivable, net                1,444             1,402
      Inventories                                     878               853
      Deferred income taxes                           870               911
      Prepaid expenses and other current assets       410               645
                                                  -------------------------
    Total current assets                            4,796             5,452

    Property, plant and equipment, net              1,719             1,728
    Goodwill                                       12,425            12,421
    Other intangible assets, net                    6,981             7,244
    Other long-term assets                            272               294
                                                  -------------------------
                                                  $26,193           $27,139
                                                  =========================

    LIABILITIES AND STOCKHOLDERS' EQUITY
    Current liabilities:
      Current debt obligations                    $   330           $     2
      Accounts payable                                213               239
      Accrued expenses                              2,021             2,612
      Other current liabilities                       186               380
                                                  -------------------------
    Total current liabilities                       2,750             3,233

    Long-term debt                                  5,920             6,743
    Deferred income taxes                           2,165             2,262
    Other long-term liabilities                     1,944             1,727

    Commitments and contingencies

    Stockholders' equity
      Preferred stock, $.01 par value -
       authorized 50,000,000 shares,
       none issued and outstanding
      Common stock, $.01 par value -
       authorized 2,000,000,000 shares
       and issued 1,507,258,301 shares
       as of June 30, 2009 and 1,501,635,679
       shares as of December 31, 2008                  15                15
      Additional paid-in capital                   16,009            15,944
      Accumulated deficit                          (2,588)           (2,732)
      Other stockholders' deficit                     (22)              (53)
                                                  -------------------------
    Total stockholders' equity                     13,414            13,174
                                                  -------------------------
                                                  $26,193           $27,139
                                                  =========================



                           BOSTON SCIENTIFIC CORPORATION
       NON-GAAP NET INCOME AND NET INCOME PER COMMON SHARE RECONCILIATIONS
                                     (Unaudited)

                        Three Months Ended June 30, Six Months Ended June 30,
                        ----------------------------------------------------
                            2009         2008         2009         2008
                        ------------- ------------ ------------ ------------
                               Impact       Impact       Impact       Impact
                                per          per          per          per
    in millions, except  Net  diluted Net  diluted Net  diluted Net  diluted
     per share data     income share income share income share income share
    ------------------------------------------------------------------------

    GAAP results         $158  $0.10   $98  $0.07  $145  $0.10  $420  $0.28
    Non-GAAP adjustments:
      Intangible asset
       impairment
       charges              8   0.01                  8   0.01
      Acquisition-
       related charges     17   0.01    19   0.01    17   0.01    27   0.02
      Divestiture-
       related losses
       (gains)                          64   0.04    (2) (0.00)  (51) (0.04)
      Restructuring-
       related charges     22   0.02    15   0.01    47   0.03    47   0.03
      Litigation-
       related charges                              240   0.15
      Discrete tax
       items              (11) (0.01)               (74) (0.05)
      Amortization
       expense            103   0.07   108   0.07   205   0.14   218   0.15
                        ------------- ------------ ------------ ------------
    Adjusted results     $297  $0.20  $304  $0.20  $586  $0.39  $661  $0.44
                        ============= ============ ============ ============


    An explanation of the Company's use of these non-GAAP measures is
    provided at the end of this document.



                            BOSTON SCIENTIFIC CORPORATION
       NON-GAAP NET INCOME AND NET INCOME PER COMMON SHARE RECONCILIATIONS
                                        (CONT.)
                                      (Unaudited)

                                      Three Months Ended    Six Months Ended
    (in millions)                           June 30,            June 30,
    ----------------------------      ------------------   ------------------
                                         2009      2008      2009      2008
                                      ------------------   ------------------
    Intangible asset impairment
     charges:
      Intangible asset
       impairment charges                $10                 $10
        Income tax benefit (a)            (2)                 (2)
                                      ------------------   ------------------
    Intangible asset impairment
     charges, net of tax                  $8                  $8
                                      ==================   ==================
    Acquisition-related charges:
      Purchased research and
       development                       $17       $16       $17       $29
        Income tax expense
         (benefit) (a)                               3                  (2)
                                      ------------------   ------------------
    Acquisition-related charges,
     net of tax                          $17       $19       $17       $27
                                      ==================   ==================

    Divestiture-related losses
     (gains):
      Gain on divestitures                                           $(250)
      Loss (gain) on sale of non-
       strategic investments (b)                   $96       $(3)       96
                                      ------------------   ------------------
                                                    96        (3)     (154)
        Income tax (benefit)
         expense (a)                               (32)        1       103
                                      ------------------   ------------------
    Divestiture-related losses
     (gains), net of tax                           $64       $(2)     $(51)
                                      ==================   ==================

    Restructuring-related charges:
      Restructuring charges              $13       $10       $36       $39
      Restructuring-related charges (c)   17        11        30        26
                                      ------------------   ------------------
                                          30        21        66        65
        Income tax benefit (a)            (8)       (6)      (19)      (18)
    Restructuring-related charges,
     net of tax                          $22       $15       $47       $47
                                      ==================   ==================

    Litigation-related charges:
      Litigation-related charges:                           $287
        Income tax benefit (a)                               (47)
                                      ------------------   ------------------
    Litigation-related charges,
     net of tax                                             $240
                                      ==================   ==================

    Discrete tax items:
      Income tax benefit (a)            $(11)               $(74)
                                      ==================   ==================

    Amortization expense:
      Amortization expense              $126      $135      $255      $279
        Income tax benefit (a)           (23)      (27)      (50)      (61)
                                      ------------------   ------------------
    Amortization expense,
     net of tax                         $103      $108      $205      $218
                                      ==================   ==================


    (a) Amounts are tax effected at the Company's effective tax rate,
        unless the amount is a significant unusual or infrequently occurring
        item in accordance with FASB Interpretation No. 18, "Accounting for
        Income Taxes in Interim Periods."
    (b) Recorded to other, net.
    (c) In the second quarter of 2009, recorded $12 million to cost of
        products sold; $4 million to selling, general and administrative
        expenses; and $1 million to research and development expenses. In
        the second quarter of 2008, recorded $3 million to cost of products
        sold; $6 million to selling, general and administrative expenses;
        and $2 million to research and development expenses. In the first
        half of 2009, recorded $22 million to cost of products sold;
        $6 million to selling, general and administrative expenses; and
        $2 million to research and development expenses. In the first half
        of 2008, recorded $7 million to cost of products sold; $15 million
        to selling, general and administrative expenses; and $4 million to
        research and development expenses.


    An explanation of the Company's use of these non-GAAP measures is
    provided at the end of this document.



                         BOSTON SCIENTIFIC CORPORATION
                                 WORLDWIDE SALES
                                    (Unaudited)

                                                                Change
                                     Three Months Ended  --------------------
                                           June 30,    As Reported  Constant
                                     ------------------   Currency  Currency
    in millions                         2009      2008      Basis    Basis
    ------------------------------------------------------------------------
    United States                     $1,194    $1,088        10 %     10 %

      EMEA                               469       531       (12)%      2 %
      Japan                              240       205        17 %      9 %
      Inter-Continental                  169       181        (6)%      8 %
                                      ------    ------     ------   ------
      International                      878       917        (4)%      5 %
                                      ------    ------     ------   ------

    Subtotal                           2,072     2,005         3 %      7 %

      Divested Businesses                  2        19       N/A      N/A
                                      ------    ------     ------   ------

    Worldwide                         $2,074    $2,024         2 %      7 %
                                      ======    ======     ======   ======


                                                                Change
                                     Three Months Ended --------------------
                                           June 30,    As Reported  Constant
                                     ------------------   Currency  Currency
    in millions                         2009      2008      Basis    Basis
    ------------------------------------------------------------------------
      Cardiac Rhythm Management        $ 609     $ 578         5 %     10 %
      Electrophysiology                   37        38        (3)%     (1)%
                                      ------    ------     ------   ------
    Cardiac Rhythm Management Group      646       616         5 %      9 %

      Interventional Cardiology          736       707         4 %      8 %
      Peripheral Interventions           171       177        (4)%      2 %
                                      ------    ------     ------   ------
    Cardiovascular Group                 907       884         3 %      7 %

    Neurovascular                         87        92        (5)%      0 %

      Endoscopy                          246       243         1 %      6 %
      Urology/Gynecology                 114       109         5 %      7 %
                                      ------    ------     ------   ------
    Endosurgery Group                    360       352         2 %      6 %

    Neuromodulation                       72        61        17 %     18 %
                                      ------    ------     ------   ------

    Subtotal                           2,072     2,005         3 %      7 %

      Divested Businesses                  2        19       N/A      N/A
                                      ------    ------     ------   ------

    Worldwide                         $2,074    $2,024         2 %      7 %
                                      ======    ======     ======   ======


    Growth rates are based on actual, non-rounded amounts and may not
    recalculate precisely.

    An explanation of the Company's use of these non-GAAP measures is
    provided at the end of this document.



                              BOSTON SCIENTIFIC CORPORATION
                 NON-GAAP CONSTANT CURRENCY NET SALES RECONCILIATIONS
                                        (Unaudited)

                                     Q2 2009 Net Sales as compared to Q2 2008
                                     ----------------------------------------
                                                 Change
                                     --------------------------  Estimated
                                        As Reported   Constant   Impact of
                                         Currency     Currency    Foreign
    in millions                           Basis        Basis     Currency
    -------------------------------------------------------------------------

    United States                         $ 106        $ 106
      EMEA                                  (62)          11       $ (73)
      Japan                                  35           19          16
      Inter-Continental                     (12)          14         (26)
                                     ----------------------------------------
    International                           (39)          44         (83)
                                     ----------------------------------------

    Subtotal                                 67          150         (83)

      Divested Businesses                   (17)         (17)          0
                                     ----------------------------------------

    Worldwide                             $  50        $ 133       $ (83)
                                     ========================================


                                     Q2 2009 Net Sales as compared to Q2 2008
                                     ----------------------------------------
                                                 Change
                                     --------------------------  Estimated
                                        As Reported   Constant   Impact of
                                         Currency     Currency    Foreign
    in millions                           Basis        Basis     Currency
    -------------------------------------------------------------------------
      Cardiac Rhythm Management           $  31        $  57       $ (26)
      Electrophysiology                      (1)           0          (1)
                                     ----------------------------------------
    Cardiac Rhythm Management Group          30           57         (27)

      Interventional Cardiology              29           57         (28)
      Peripheral Interventions               (6)           3          (9)
                                     ----------------------------------------
    Cardiovascular Group                     23           60         (37)

    Neurovascular                            (5)           0          (5)

      Endoscopy                               3           14         (11)
      Urology/Gynecology                      5            7          (2)
                                     ----------------------------------------
    Endosurgery Group                         8           21         (13)

    Neuromodulation                          11           12          (1)
                                     ----------------------------------------
    Subtotal                                 67          150         (83)

      Divested Businesses                   (17)         (17)          0
                                     ----------------------------------------

    Worldwide                             $  50        $ 133       $ (83)
                                     ========================================


    An explanation of the Company's use of these non-GAAP measures is provided at the end of this document.



                            BOSTON SCIENTIFIC CORPORATION
                                   WORLDWIDE SALES
                                     (Unaudited)

                                                              Change
                                     Six Months Ended --------------------
                                          June 30,    As Reported Constant
                                     -----------------  Currency  Currency
    in millions                        2009      2008     Basis     Basis
    ----------------------------------------------------------------------

    United States                     $2,364    $2,205       7 %       7 %

      EMEA                               915     1,039     (12)%       3 %
      Japan                              482       427      13 %       3 %
      Inter-Continental                  316       349     (10)%       7 %
                                     -----------------   ------    ------
    International                      1,713     1,815      (6)%       4 %
                                     -----------------   ------    ------

    Subtotal                           4,077     4,020       1 %       6 %

      Divested Businesses                  7        51     N/A       N/A
                                     -----------------   ------    ------

    Worldwide                         $4,084    $4,071       0 %       4 %
                                     =================   ======    ======


                                                              Change
                                     Six Months Ended --------------------
                                          June 30,    As Reported Constant
                                     -----------------  Currency  Currency
    in millions                        2009      2008     Basis     Basis
    ----------------------------------------------------------------------

      Cardiac Rhythm Management       $1,197    $1,143       5 %       9 %
      Electrophysiology                   74        76      (3)%      (1)%
                                     -----------------   ------    ------
    Cardiac Rhythm Management Group    1,271     1,219       4 %       9 %

      Interventional Cardiology        1,473     1,463       1 %       5 %
      Peripheral Interventions           329       355      (8)%      (3)%
                                     -----------------   ------    ------
    Cardiovascular Group               1,802     1,818      (1)%       3 %

    Neurovascular                        174       184      (5)%       0 %

      Endoscopy                          478       472       1 %       6 %
      Urology/Gynecology                 219       209       5 %       7 %
                                     -----------------   ------    ------
    Endosurgery Group                    697       681       2 %       6 %

    Neuromodulation                      133       118      13 %      14 %
                                     -----------------   ------    ------

    Subtotal                           4,077     4,020       1 %       6 %

      Divested Businesses                  7        51     N/A       N/A
                                     -----------------   ------    ------

    Worldwide                         $4,084    $4,071       0 %       4 %
                                     =================   ======    ======


    Growth rates are based on actual, non-rounded amounts and may not
    recalculate precisely.

    An explanation of the Company's use of these non-GAAP measures is
    provided at the end of this document.



                            BOSTON SCIENTIFIC CORPORATION
             NON-GAAP CONSTANT CURRENCY NET SALES RECONCILIATIONS
                                    (Unaudited)

                            Q2 2009 YTD Net Sales as compared to Q2 2008 YTD
                            ------------------------------------------------
                                              Change
                                    ----------------------    Estimated
                                    As Reported   Constant    Impact of
                                     Currency     Currency    Foreign
    in millions                       Basis        Basis      Currency
    ------------------------------------------------------------------------

    United States                     $ 159        $ 159

      EMEA                             (124)          26        $(150)
      Japan                              55           13           42
      Inter-Continental                 (33)          26          (59)
                                    ----------------------------------------
    International                      (102)          65         (167)
                                    ----------------------------------------

    Subtotal                             57          224         (167)

      Divested Businesses               (44)         (44)           0
                                    ----------------------------------------

    Worldwide                         $  13        $ 180        $(167)
                                    ========================================


                            Q2 2009 YTD Net Sales as compared to Q2 2008 YTD
                            ------------------------------------------------
                                              Change
                                    ----------------------    Estimated
                                    As Reported   Constant    Impact of
                                     Currency     Currency    Foreign
    in millions                       Basis        Basis      Currency
    ------------------------------------------------------------------------

      Cardiac Rhythm Management       $  54        $ 107       $  (53)
      Electrophysiology                  (2)           0           (2)
                                    ----------------------------------------
    Cardiac Rhythm Management Group      52          107          (55)

      Interventional Cardiology          10           67          (57)
      Peripheral Interventions          (26)          (9)         (17)
                                    ----------------------------------------
    Cardiovascular Group                (16)          58          (74)

    Neurovascular                       (10)          (1)          (9)

      Endoscopy                           6           29          (23)
      Urology/Gynecology                 10           15           (5)
                                    ----------------------------------------
    Endosurgery Group                    16           44          (28)

    Neuromodulation                      15           16           (1)
                                    ----------------------------------------

    Subtotal                             57          224         (167)

    Divested Businesses                 (44)         (44)           0
                                    ----------------------------------------

    Worldwide                         $  13        $ 180        $(167)
                                    ========================================



    An explanation of the Company's use of these non-GAAP measures is
    provided at the end of this document.



                            BOSTON SCIENTIFIC CORPORATION
            ESTIMATED NON-GAAP NET INCOME PER COMMON SHARE RECONCILIATIONS
                                     (Unaudited)

                                     Q3 2009 Estimate    Q3 2009 Estimate
                                          (Low)               (High)
                                           ----                -----
    GAAP results                          $0.08               $0.13
    ------------                          -----               -----
    Estimated restructuring-
     related charges                       0.02                0.01
    Estimated amortization expense         0.07                0.07
    Adjusted results                      $0.17               $0.21
    ----------------                      -----               -----


                                        2009 Estimate       2009 Estimate
                                          (Low)               (High)
                                           ----                -----
    GAAP results                          $0.47               $0.53
    ------------                           ----                -----

    Estimated intangible asset
     impairment charges                    0.01                0.01
    Estimated acquisition-related net
     credits                              (0.11)              (0.11)
    Estimated restructuring-related
     charges                               0.08                0.06
    Estimated litigation-related charges   0.15                0.15
    Estimated discrete tax items          (0.05)              (0.05)
    Estimated amortization expense         0.27                0.27

    Adjusted results                      $0.82               $0.86
    ------------                           ----                -----


    An explanation of the Company's use of these non-GAAP measures is
    provided at the end of this document.

Use of Non-GAAP Financial Measures

To supplement Boston Scientific's condensed consolidated financial statements presented on a GAAP basis; the Company discloses certain non-GAAP measures that exclude certain amounts, including non-GAAP net income, non-GAAP net income per share, and regional and divisional revenue growth rates that exclude the impact of foreign exchange. These non-GAAP measures are not in accordance with, or an alternative for, generally accepted accounting principles in the United States.

The GAAP measure most comparable to non-GAAP net income is GAAP net income and the GAAP measure most comparable to non-GAAP net income per share is GAAP net income per share. Reconciliations of each of these non-GAAP financial measures to the corresponding GAAP measure are included in the accompanying schedules.

To calculate regional and divisional revenue growth rates that exclude the impact of foreign exchange, the Company converts actual current-period net sales from local currency to U.S. dollars using constant foreign exchange rates. The GAAP measure most comparable to this non-GAAP measure is growth rate percentages based on GAAP revenue. A reconciliation of this non-GAAP financial measure to the corresponding GAAP measure is included in the accompanying schedules.

Use and Economic Substance of Non-GAAP Financial Measures Used by Boston Scientific

Management uses these supplemental non-GAAP measures to evaluate performance period over period, to analyze the underlying trends in the Company's business, to assess its performance relative to its competitors, and to establish operational goals and forecasts that are used in allocating resources. In addition, management uses these non-GAAP measures to further its understanding of the performance of the Company's operating segments. The adjustments excluded from the Company's non-GAAP measures are consistent with those excluded from its reportable segments' measure of profit or loss. These adjustments are excluded from the segment measures that are reported to the Company's chief operating decision maker and are used to make operating decisions and assess performance.

The following is an explanation of each of the adjustments that management excluded as part of its non-GAAP measures for the six months ended June 30, 2009 and 2008 and for the forecasted three month period ending September 30, 2009 and full year ending December 31, 2009, as well as reasons for excluding each of these individual items:

    --  Intangible asset impairment charges - These amounts represent non-cash
        write-downs of certain of the Company's intangible assets.
        Following the Company's acquisition of Guidant in 2006, and the
        related increase in the Company's debt, management has heightened
        its focus on cash generation and debt pay down. Management removes the
        impact of these charges from the Company's operating performance to
        assist in assessing the Company's cash generated from operations.
        Management believes this is a critical metric for the Company in
        measuring the Company's ability to generate cash and pay down debt.
        Therefore, these charges are excluded from management's assessment
        of operating performance and are also excluded from the measures
        management uses to set employee compensation. Accordingly, management
        believes this may be useful information to users of its financial
        statements and therefore has excluded these charges for purposes of
        calculating these non-GAAP measures to facilitate an evaluation of the
        Company's current operating performance, particularly in terms of
        liquidity.

    --  Acquisition-related charges - These adjustments consist of purchased
        research and development. Purchased research and development is a highly
        variable charge based on the extent and nature of external technology
        acquisitions during the period. Management removes the impact of
        purchased research and development from the Company's operating
        results to facilitate an evaluation of the Company's current
        operating performance and a comparison to the Company's past
        operating performance.

    --  Divestiture-related gains and losses - These amounts represent gains and
        losses, and related tax impacts, that the Company recognized related to
        the sale of non-strategic assets, including the sale of certain
        businesses, development programs and non-strategic investments. The sale
        and transfer of these non-strategic assets were substantially completed
        during 2008. These gains and losses are not indicative of future
        operating performance and are not used by management to assess operating
        performance. Accordingly, management excluded these amounts for purposes
        of calculating these non-GAAP measures to facilitate an evaluation of
        the Company's current operating performance and a comparison to the
        Company's past operating performance.

    --  Restructuring and restructuring-related charges - These adjustments
        primarily represent severance, employee-related retention incentives,
        asset write-offs, accelerated depreciation, costs to transfer production
        lines from one facility to another, and other costs associated with the
        Company's plant network optimization and expense and head count
        reduction initiatives. These expenses are not indicative of the
        Company's on-going operating performance and are excluded by
        management in assessing the Company's operating performance, as
        well as from the Company's operating segments' measures of
        profit and loss used for making operating decisions and assessing
        performance. Accordingly, management excluded these charges for purposes
        of calculating these non-GAAP measures to facilitate an evaluation of
        the Company's current operating performance and a comparison to the
        Company's past operating performance.

    --  Litigation-related charges - These charges are attributable to certain
        patent litigation matters. These amounts represent significant charges
        during the first quarter of 2009 and do not reflect expected on-going
        operating expenses. Accordingly, management excluded these charges for
        purposes of calculating these non-GAAP measures to facilitate an
        evaluation of the Company's current operating performance and for
        comparison to the Company's past operating performance.

    --  Discrete tax items - These items represent current period adjustments of
        certain tax positions, which were initially established in prior periods
        as a result of acquisitions or as a result of divestiture-, significant
        litigation- or restructuring-related charges. These adjustments do not
        reflect expected on-going operating results. Accordingly, management
        excluded these amounts for purposes of calculating these non-GAAP
        measures to facilitate an evaluation of the Company's current
        operating performance and for comparison to the Company's past
        operating performance.

    --  Amortization expense - Amortization expense is a non-cash charge and
        does not impact the Company's liquidity or compliance with the
        covenants included in its debt agreements. Management removes the impact
        of amortization from the Company's operating performance to assist
        in assessing the Company's cash generated from operations.
        Management believes this is a critical metric for the Company in
        measuring the Company's ability to generate cash and pay down debt.
        Therefore, amortization expense is excluded from management's
        assessment of operating performance and is also excluded from the
        measures management uses to set employee compensation. Accordingly,
        management believes this may be useful information to users of its
        financial statements and therefore has excluded amortization expense for
        purposes of calculating these non-GAAP measures to facilitate an
        evaluation of the Company's current operating performance,
        particularly in terms of liquidity.

    --  Foreign exchange on net sales - The impact of foreign exchange is highly
        variable and difficult to predict. Accordingly, management excludes the
        impact of foreign exchange for purposes of reviewing regional and
        divisional revenue growth rates to facilitate an evaluation of the
        Company's current operating performance and comparison to the
        Company's past operating performance.

Material Limitations Associated with the Use of Non-GAAP Financial Measures

Non-GAAP net income, non-GAAP net income per diluted share, and regional and divisional revenue growth rates that exclude the impact of foreign exchange may have limitations as analytical tools, and these non-GAAP measures should not be considered in isolation from or as a replacement for GAAP financial measures. Some of the limitations associated with the use of these non-GAAP financial measures are:

    --  Items such as purchased research and development and divestiture-related
        gains and losses reflect economic costs to the Company and are not
        reflected in non-GAAP net income and non-GAAP net income per diluted
        share.

    --  Items such as restructuring and restructuring-related expenses,
        litigation-related charges, and discrete tax items that are excluded
        from non-GAAP net income and non-GAAP net income per diluted share can
        have a material impact on cash flows and GAAP net income and net income
        per diluted share.

    --  Amortization expense and intangible asset impairment charges, though not
        directly affecting Boston Scientific's cash flow position,
        represent a reduction in value of intangible assets. The expense
        associated with this reduction in value is not included in Boston
        Scientific's non-GAAP net income or non-GAAP net income per diluted
        share and therefore these measures do not reflect the full effect of the
        reduction in value of those intangible assets.

    --  Revenue growth rates stated on a constant currency basis, by their
        nature, exclude the impact of foreign exchange, which may have a
        material impact on GAAP net sales.

    --  Other companies may calculate non-GAAP net income, non-GAAP net income
        per diluted share, or regional and divisional revenue growth rates that
        exclude the impact of foreign exchange differently than Boston
        Scientific does, limiting the usefulness of those measures for
        comparative purposes.

Compensation for Limitations Associated with Use of Non-GAAP Financial Measures

Boston Scientific compensates for the limitations on its non-GAAP financial measures by relying upon its GAAP results to gain a complete picture of the Company's performance. The non-GAAP numbers focus instead upon the core business of the Company, which is only a subset, albeit a critical one, of the Company's performance.

The Company provides detailed reconciliations of each non-GAAP financial measure to its most directly comparable GAAP measure in the accompanying schedules, and Boston Scientific encourages investors to review these reconciliations.

Usefulness of Non-GAAP Financial Measures to Investors

The Company believes that presenting non-GAAP net income, non-GAAP net income per share, and regional and divisional revenue growth rates that exclude the impact of foreign exchange in addition to the related GAAP measures provides investors greater transparency to the information used by Boston Scientific management for its financial and operational decision-making and allows investors to see Boston Scientific's results "through the eyes" of management. The Company further believes that providing this information better enables Boston Scientific's investors to understand the Company's operating performance and to evaluate the methodology used by management to evaluate and measure such performance.

SOURCE Boston Scientific Corporation


http://www.bostonscientific.com