Merck Announces Dividend Increase and $5 Billion Share Repurchase Program

Business Wire, July 28, 1998

WHITEHOUSE STATION, N.J.--(BUSINESS WIRE)--July 28, 1998--The Board of Directors of Merck & Co., Inc., in two separate actions, declared a quarterly dividend of 54 cents a share and approved a new $5 billion treasury stock purchase program.

The Board declared a quarterly dividend of 54 cents a share on the Company's common stock for the fourth quarter of 1998 versus the 45 cents a share dividend paid in the third quarter of 1998. The 54 cent dividend is payable October 1, 1998 to stockholders of record at the close of business on September 4, 1998. The Company's total dividends paid during 1998 will be $1.89 per share -- a 12% increase over the amount paid in 1997.

The Board today also approved purchases over time of up to an additional $5 billion of its common stock for its treasury.

The Company is currently making purchases under a February 1997, $5 billion authorization. Through June 30, 1998 the Company spent $2.5 billion to acquire 24 million shares under the February 1997, $5 billion authorization. Under prior approvals during the period 1988 through 1997, the Company spent $8.0 billion to acquire 153 million shares of its stock on the open market. Merck currently has approximately 1,194 million shares outstanding.

The Company has received additional cash flow as a result of the recently announced transactions with DuPont and Astra AB of Sweden, both of which closed on July 1. While the Company's cash flows are used primarily to fund research and development programs and invest in business operations, the Company remains committed to returning excess cash to shareholders through dividends and share repurchase programs.

Treasury stock purchases will be made on the open market in block transactions and in privately negotiated transactions. Purchases may be suspended from time to time or discontinued. Shares acquired will be available for use under the Company's employee benefit programs and for other general corporate purposes.

Merck & Co., Inc. is a global, research-driven pharmaceutical company that discovers, develops, manufactures and markets a broad range of human and animal health products, directly and through its joint ventures, and provides pharmaceutical benefits services through Merck-Medco Managed Care.

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