Eric*

The values that guide our decision making are spelled out in Our Credo. Put simply, Our Credo challenges us to put the needs and well-being of the people we serve first.

Robert Wood Johnson, former chairman from 1932 to 1963 and a member of the Company’s founding family, crafted Our Credo himself in 1943, just before Johnson & Johnson became a publicly traded company. This was long before anyone ever heard the term “corporate social responsibility.” Our Credo is more than just a moral compass. We believe it’s a recipe for business success. The fact that Johnson & Johnson is one of only a handful of companies that have flourished through more than a century of change is proof of that.

2007 Ad Spending: $2.409 billion 2006 Ad Spending: $2.401 billion •	Magazines: $ 402.1 million •	Newspaper: $ 50.9 million •	Outdoor: $ 4.8 million •	TV: $ 879.4 million •	Radio: $ 34.8 million •	Internet: $ 49.2 million None of J&J's top five ad campaigns included spending on prescription drug advertising. Remicade was the only prescription drug that had an increased budget in 2007 (there was no budget for the biologic in 2007). Topamax dropped 16.2 percent and Zyrtec dropped 17.8 percent. Newspaper advertising fell a whopping 98 percent to a paltry $149,000 from 7.4 million.

Codman will continue to market and distribute certain bipolar generators and related disposables and accessories supplied by Synergetics.

CREDO We believe our first responsibility is to the doctors, nurses, and patients, to mothers and fathers and all others who use our products and services. In meeting their needs everything we do must be of high quality We must constantly strive to reduce our costs in order to maintain reasonable princes. Customer’s orders must be serviced promptly and accurately. Our suppliers and distributors must have an opportunity to make a fair profit.

We are responsible to our employees, the men and women who work with us throughout the world. Everyone must be considered as an individual. We must respect their dignity and recognize their merit. They must have a sense of security in their jobs. Compensation must be fair and adequate, and working conditions clean, orderly, and safe. We must be mindful of ways to help our employees fulfill their family responsibilities. Employees must feel free to make suggestions and complaints. There must be equal opportunity for employment, development, and advancement for those qualified. We must provide competent management, And their actions must be just and ethical.

We are responsible to the communities in which we live and work and to the world community as well. We must be good citizens – support good works and charities and bear our fair share of taxes. We must encourage civic improvements and better health and education. We must maintain in good order the property we are privileged to use, protecting the environment and natural resources.

Our final responsibility is to our stockholders. Business must make a sound profit. We must experiment with new ideas. Research must be carried on, innovative programs developed, and mistakes paid for. New equipment must be purchased, new facilities provided and new products launched. Reserves must be created for adverse times. When we operate according to these principles, the stockholders should realize a fair return.

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The principles •	That medical decision-making must be kept free of improper company influence •	That regulated products must be promoted lawfully •	And, in the United States, that pricing information must be disclosed accurately to assure appropriate reimbursement