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<SEC-DOCUMENT>0000950123-06-003129.txt : 20060314
<SEC-HEADER>0000950123-06-003129.hdr.sgml : 20060314
<ACCEPTANCE-DATETIME>20060314161517
ACCESSION NUMBER:		0000950123-06-003129
CONFORMED SUBMISSION TYPE:	10-K
PUBLIC DOCUMENT COUNT:		12
CONFORMED PERIOD OF REPORT:	20060101
FILED AS OF DATE:		20060314
DATE AS OF CHANGE:		20060314

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			JOHNSON & JOHNSON
		CENTRAL INDEX KEY:			0000200406
		STANDARD INDUSTRIAL CLASSIFICATION:	PHARMACEUTICAL PREPARATIONS [2834]
		IRS NUMBER:				221024240
		STATE OF INCORPORATION:			NJ
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		10-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-03215
		FILM NUMBER:		06685283

	BUSINESS ADDRESS:	
		STREET 1:		ONE JOHNSON & JOHNSON PLZ
		CITY:			NEW BRUNSWICK
		STATE:			NJ
		ZIP:			08933
		BUSINESS PHONE:		732-524-2455

	MAIL ADDRESS:	
		STREET 1:		ONE JOHNSON & JOHNSON PLZ
		CITY:			NEW BRUNSWICK
		STATE:			NJ
		ZIP:			08933
</SEC-HEADER>
<DOCUMENT>
<TYPE>10-K
<SEQUENCE>1
<FILENAME>y17887e10vk.htm
<DESCRIPTION>FORM 10-K
<TEXT>
<HTML>
<HEAD>
<TITLE>10-k</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV align="left">
<HR size="1" width="100%" align="left" color="black" noshade>
</DIV>

<DIV align="left">
<HR size="1" width="100%" align="left" color="black" noshade>
</DIV>

<P align="center">
<B><FONT size="5">UNITED STATES</FONT></B>

<DIV align="center">
<B><FONT size="5">SECURITIES AND EXCHANGE COMMISSION</FONT></B>
</DIV>

<DIV align="center">
<B>Washington, D.C. 20549</B>
</DIV>

<P align="center">
<B><FONT size="5">FORM 10-K</FONT></B>

<P align="center">
<B>ANNUAL REPORT PURSUANT TO SECTION 13 OF</B>

<DIV align="center">
<B>THE SECURITIES EXCHANGE ACT OF 1934</B>
</DIV>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="50%"></TD>
    <TD width="50%"></TD>
</TR>

<TR valign="top">
    <TD align="left"><B><FONT size="2">For the fiscal year ended January&nbsp;1, 2006</FONT></B></TD>
    <TD align="right"><B><FONT size="2">Commission file number 1-3215</FONT></B></TD>
</TR>

</TABLE>

<P align="center">
<B><FONT size="6">JOHNSON &#38; JOHNSON</FONT></B>

<P align="center">
<B><FONT size="2">(Exact name of registrant as specified in its
charter)</FONT></B>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="57%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="40%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="center" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B><FONT size="2">New Jersey</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <B><FONT size="2">22-1024240</FONT></B></TD>
</TR>

<TR>
    <TD align="center" valign="top">
    <FONT size="2">(State of<BR>
    Incorporation)
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">(I.R.S. Employer<BR>
    Identification No.)
    </FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="center" valign="top">
    <B><FONT size="2">One Johnson &#38; Johnson Plaza<BR>
    New Brunswick, New Jersey</FONT></B></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <B><FONT size="2">08933</FONT></B></TD>
</TR>

<TR>
    <TD align="center" valign="top">
    <FONT size="2">(Address of principal executive offices)
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">(Zip Code)
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="center">
<FONT size="2">Registrant&#146;s telephone number, including
area code (732) 524-0400
</FONT>

<P align="center">
<B><FONT size="2">SECURITIES REGISTERED PURSUANT TO SECTION
12(b) OF THE ACT</FONT></B>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="50%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="47%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="center" nowrap><B><FONT size="1">Title of each class</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Name of each exchange on which registered</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD align="center" valign="top">
    <FONT size="2">Common Stock, Par Value $1.00
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">New York Stock Exchange
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Indicate by check mark if the registrant is a
well-known seasoned issuer, as defined in Rule 405 of the
Securities
Act.&nbsp;Yes&nbsp;<FONT face="wingdings">&#120;</FONT>&nbsp;&nbsp;No&nbsp;<FONT face="wingdings">&#111;</FONT>
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Indicate by check mark if the registrant is not
required to file reports pursuant to Section 13 or Section 15(d)
of the Exchange
Act.&nbsp;Yes&nbsp;<FONT face="wingdings">&#111;</FONT>&nbsp;&nbsp;No&nbsp;<FONT face="wingdings">&#120;</FONT>
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Indicate by check mark whether the registrant
(1)&nbsp;has filed all reports required to be filed by
Section&nbsp;13 or 15(d) of the Securities Exchange Act of 1934
during the preceding 12 months (or for such shorter period that
the registrant was required to file such reports), and
(2)&nbsp;has been subject to such filing requirements for the
past 90
days.&nbsp;&nbsp;Yes&nbsp;<FONT face="wingdings">&#120;</FONT>&nbsp;&nbsp;No&nbsp;<FONT face="wingdings">&#111;</FONT>
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Indicate by check mark if disclosure of
delinquent filers pursuant to Item&nbsp;405 of Regulation S-K is
not contained herein, and will not be contained, to the best of
registrant&#146;s knowledge, in definitive proxy or information
statements incorporated by reference in Part&nbsp;III of this
Form&nbsp;10-K or any amendment to this
Form&nbsp;10-K.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="wingdings">&#120;</FONT>
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Indicate by check mark whether the registrant is
a large accelerated filer, an accelerated filer, or a
non-accelerated filer.
</FONT>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="50%"></TD>
    <TD width="50%"></TD>
</TR>

<TR valign="top">
    <TD align="left"><FONT size="2">Large accelerated filer&nbsp;&nbsp;<FONT face="wingdings">&#120;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accelerated filer&nbsp;&nbsp;<FONT face="wingdings">&#111;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-accelerated filer&nbsp;&nbsp;<FONT face="wingdings">&#111;</FONT></FONT></TD>
    <TD align="right"></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Indicate by check mark whether the registrant is
a shell company (as defined in Rule 12b-2 of the Exchange
Act).&nbsp;&nbsp;Yes&nbsp;<FONT face="wingdings">&#111;</FONT>&nbsp;&nbsp;No&nbsp;<FONT face="wingdings">&#120;</FONT>
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The aggregate market value of the common stock
held by non-affiliates (computed by reference to the price at
which the common stock was last sold) as of the last business
day of the registrant&#146;s most recently completed second
fiscal quarter was approximately $193&nbsp;billion.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On February&nbsp;28, 2006 there were
2,976,068,976&nbsp;shares of Common Stock outstanding.
</FONT>

<P align="center">
<B><FONT size="2">DOCUMENTS INCORPORATED BY REFERENCE</FONT></B>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="21%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="76%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Parts&nbsp;I, II and III:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Portions of registrant&#146;s annual report to
    shareholders for fiscal year 2005 (the &#147;Annual
    Report&#148;).
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Parts I and III:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Portions of registrant&#146;s proxy statement for
    its 2006 annual meeting (the &#147;Proxy Statement&#148;).
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">
<HR size="1" width="100%" align="left" color="black" noshade>

<DIV align="left">
<HR size="1" width="100%" align="left" color="black" noshade>
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<P align="center">
<B><FONT size="2">PART I</FONT></B>

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="80%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Item</FONT></B></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Page</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">1.</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Business
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    &nbsp;&nbsp;<FONT size="2">General
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    &nbsp;&nbsp;<FONT size="2">Segments of Business
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    &nbsp;&nbsp;<FONT size="2">Consumer
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    &nbsp;&nbsp;<FONT size="2">Pharmaceutical
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    &nbsp;&nbsp;<FONT size="2">Medical Devices and Diagnostics
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    &nbsp;&nbsp;<FONT size="2">Geographic Areas
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    &nbsp;&nbsp;<FONT size="2">Raw Materials
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    &nbsp;&nbsp;<FONT size="2">Patents and Trademarks
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    &nbsp;&nbsp;<FONT size="2">Seasonality
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    &nbsp;&nbsp;<FONT size="2">Competition
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    &nbsp;&nbsp;<FONT size="2">Research
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    &nbsp;&nbsp;<FONT size="2">Environment
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    &nbsp;&nbsp;<FONT size="2">Regulation
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    &nbsp;&nbsp;<FONT size="2">Available Information
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">1A.</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Risk Factors
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">1B.</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Unresolved Staff Comments
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">2.</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Properties
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">3.</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Legal Proceedings
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4.</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Submission of Matters to a Vote of Security
    Holders
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    &nbsp;&nbsp;<FONT size="2">Executive Officers of the Registrant
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="9" align="center" valign="top">
    <BR>
    <B><FONT size="2">PART&nbsp;II</FONT></B></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">5.</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Market for the Registrant&#146;s Common Equity,
    Related Stockholder Matters and Issuer Purchases of Equity
    Securities
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">6.</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Selected Financial Data
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">7.</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Management&#146;s Discussion and Analysis of
    Financial Condition and Results of Operations
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">7A.</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Quantitative and Qualitative Disclosures About
    Market Risk
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">8.</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Financial Statements and Supplementary Data
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">9.</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Changes in and Disagreements With Accountants on
    Accounting and Financial Disclosure
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">9A.</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Controls and Procedures
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">9B.</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Other Information
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="9" align="center" valign="top">
    <BR>
    <B><FONT size="2">PART&nbsp;III</FONT></B></TD>
</TR>

<TR>
    <TD align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10.</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Directors and Executive Officers of the Registrant
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">11.</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Executive Compensation
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">12.</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Security Ownership of Certain Beneficial Owners
    and Management and Related Stockholder Matters
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">13.</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Certain Relationships and Related Transactions
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">14.</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Principal Accounting Fees and Services
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="9" align="center" valign="top">
    <BR>
    <B><FONT size="2">PART&nbsp;IV</FONT></B></TD>
</TR>

<TR>
    <TD align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">15.</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Exhibits, Financial Statement Schedules
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Signatures
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Report of Independent Registered Public
    Accounting Firm on Financial Statement Schedule
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">15</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Exhibit Index
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">16</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<P align="center">
<B><FONT size="2">PART I</FONT></B>

<P align="left">
<B><FONT size="2">Item 1.&nbsp;&nbsp;BUSINESS</FONT></B>

<P align="left">
<B><FONT size="2">General</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Johnson&nbsp;&#38; Johnson and its subsidiaries
have approximately 115,600 employees worldwide engaged in the
manufacture and sale of a broad range of products in the health
care field. Johnson &#38; Johnson has more than 230 operating
companies conducting business in virtually all countries of the
world. Johnson&nbsp;&#38; Johnson&#146;s primary focus has been
on products related to human health and well-being.
Johnson&nbsp;&#38; Johnson was incorporated in the State of New
Jersey in 1887.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company&#146;s structure is based on the
principle of decentralized management. The Executive Committee
of Johnson&nbsp;&#38; Johnson is the principal management group
responsible for the operations and allocation of the resources
of the Company. This Committee oversees and coordinates the
activities of the Consumer, Pharmaceutical and Medical Devices
and Diagnostics business segments. Each subsidiary within the
business segments is, with some exceptions, managed by citizens
of the country in which it is located.
</FONT>

<P align="left">
<B><FONT size="2">Segments of Business</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Johnson&nbsp;&#38; Johnson&#146;s worldwide
business is divided into three segments: Consumer,
Pharmaceutical and Medical Devices and Diagnostics. Additional
information required by this item is incorporated herein by
reference to the narrative and tabular (but not the graphic)
descriptions of segments and operating results under
&#147;Management&#146;s Discussion and Analysis of Results of
Operations and Financial Condition&#148; on pages&nbsp;28
through 38 and Note&nbsp;11 &#147;Segments of Business and
Geographic Areas&#148; under &#147;Notes to Consolidated
Financial Statements&#148; on page&nbsp;50 of the Annual Report,
filed as Exhibit&nbsp;13 to this Report on Form&nbsp;10-K.
</FONT>

<P align="left">
<B><FONT size="2">Consumer</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Consumer segment manufactures and markets a
broad range of products used in the baby and child&nbsp;care,
skin care, oral and wound care and women&#146;s health care
fields, as well as nutritional and over-the-counter
pharmaceutical products. Major brands include
AVEENO<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>
skin care products;
BAND-AID<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>
Brand Adhesive Bandages;
CAREFREE<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>
Pantiliners; CLEAN&nbsp;&#38;
CLEAR<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>
teen skin care products;
JOHNSON&#146;S<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>
Baby and Adult lines of products;
MOTRIN<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>
IB ibuprofen products;
PEPCID<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>
AC Acid Controller from Johnson&nbsp;&#38; Johnson&nbsp;&#149;
Merck Consumer Pharmaceuticals Co.;
NEUTROGENA<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>
skin and hair care products;
RoC<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>
skin care products;
SPLENDA<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>
No Calorie Sweetener;
STAYFREE<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>
sanitary protection products; and the broad family of
TYLENOL<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>
acetaminophen products. These products, available without
prescription, are marketed principally to the general public and
sold both to wholesalers and directly to independent and chain
retail outlets throughout the world.
</FONT>

<P align="left">
<B><FONT size="2">Pharmaceutical</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Pharmaceutical segment includes products in
the following therapeutic areas: anti-fungal, anti-infective,
cardiovascular, contraceptive, dermatology, gastrointestinal,
hematology, immunology, neurology, oncology, pain management,
psychotropic (central nervous system) and urology. These
products are distributed directly to retailers, wholesalers and
health care professionals for prescription use by the general
public. Key products in the Pharmaceutical segment include:
RISPERDAL<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>
(risperidone) and
RISPERDAL<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>
CONSTA<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>
(risperidone long-acting injection), for treatment of the
symptoms of schizophrenia;
PROCRIT<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>
(Epoetin alfa, sold outside the U.S. as
EPREX<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>),
a biotechnology-derived product that stimulates red blood cell
production;
REMICADE<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>
(infliximab), a monoclonal antibody therapy indicated to treat
the symptoms of Crohn&#146;s disease, rheumatoid arthritis,
ankylosing spondylitis, psoriatic arthritis and ulcerative
colitis;
TOPAMAX<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>
(topiramate), an anti-epileptic and migraine prevention
treatment;
DURAGESIC<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>
(fentanyl transdermal system, sold outside the U.S. as
DUROGESIC<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>),
a treatment for chronic pain that offers a novel delivery
system;
LEVAQUIN<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>
(levofloxacin) and
FLOXIN<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>
(ofloxacin), both in the anti-infective field; ORTHO
EVRA<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>
(norelgestromin/ethinyl estradiol transdermal system), the first
contraceptive patch approved by the U.S. Food and Drug
Administration (&#147;FDA&#148;) and
ORTHO&nbsp;TRI-CYCLEN<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>&nbsp;LO
(norgestimate/ethinyl estradiol), a low dose oral contraceptive;
</FONT>

<P align="center">

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV align="left">
<FONT size="2">DOXIL<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>
(doxorubicin HCI liposome injection), a cancer treatment;
DITROPAN<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>
XL (oxybutynin chloride), for the treatment of overactive
bladder; RAZADYNE<SUP>TM</SUP> (galantamine HBr), for patients
with mild to moderate Alzheimer&#146;s disease;
NATRECOR<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>
(nesiritide), a novel agent approved for congestive heart
failure;
VELCADE<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>
(bortezomib), an oncology treatment; and
CONCERTA<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>
(methylphenidate HCl) a product for the treatment of attention
deficit hyperactivity disorder.
</FONT>
</DIV>

<P align="left">
<B><FONT size="2">Medical Devices and Diagnostics</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Medical Devices and Diagnostics segment
includes a broad range of products distributed to wholesalers,
hospitals and retailers, used principally in the professional
fields by physicians, nurses, therapists, hospitals, diagnostic
laboratories and clinics. These products include Cordis&#146;
circulatory disease management products; DePuy&#146;s
orthopaedic joint reconstruction and spinal care products;
Ethicon&#146;s wound care and women&#146;s health products;
Ethicon Endo-Surgery&#146;s minimally invasive surgical
products; LifeScan&#146;s blood glucose monitoring products;
Ortho-Clinical Diagnostics&#146; professional diagnostic
products and Vision Care&#146;s disposable contact lenses.
Distribution to these health care professional markets is done
both directly and through surgical supply and other dealers.
</FONT>

<P align="left">
<B><FONT size="2">Geographic Areas</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The international business of Johnson &#38;
Johnson is conducted by subsidiaries located in 56 countries
outside the United States, which are selling products in
virtually all countries throughout the world. The products made
and sold in the international business include many of those
described above under &#147;Business&nbsp;&#151; Consumer,&#148;
&#147;&#151;&nbsp;Pharmaceutical&#148; and
&#147;&#151;&nbsp;Medical Devices and Diagnostics.&#148;
However, the principal markets, products and methods of
distribution in the international business vary with the country
and the culture. The products sold in international business
include not only those which were developed in the United
States, but also those which were developed by subsidiaries
abroad.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Investments and activities in some countries
outside the United States are subject to higher risks than
comparable U.S. activities because the investment and commercial
climate is influenced by restrictive economic policies and
political uncertainties.
</FONT>

<P align="left">
<B><FONT size="2">Raw Materials</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Raw materials essential to Johnson &#38;
Johnson&#146;s operating companies&#146; businesses are
generally readily available from multiple sources.
</FONT>

<P align="left">
<B><FONT size="2">Patents and Trademarks</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Johnson &#38; Johnson has made a practice of
obtaining patent protection on its products and processes where
possible. Johnson &#38; Johnson owns or is licensed under a
number of patents relating to its products and manufacturing
processes, which in the aggregate are believed to be of material
importance in the operation of its business. Sales of the
Company&#146;s two largest products,
RISPERDAL<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>
and
PROCRIT<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>/EPREX<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>,
accounted for approximately 6% and 7% of Johnson &#38;
Johnson&#146;s total revenues, respectively, for fiscal 2005.
Accordingly, the patents related to these products are believed
to be material in relation to Johnson &#38; Johnson as a whole.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">During 2004, 2005 and 2006,
DURAGESIC<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>
(fentanyl transdermal system) in the United States and certain
international markets and
EPREX<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>
(Epoetin alfa) in international markets have lost or will lose
their basic patent protection and are or will be subject to
generic competition.
DURAGESIC<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>
sales declined by 23.9% to $1.6&nbsp;billion in 2005 as compared
to 2004, due to the negative impact of generic competition
primarily in the United States. Regarding
EPREX<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>,
generic competition will be limited in the near term due to the
lack of approved generic compounds. Combined sales of
DURAGESIC<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>
and
EPREX<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>
accounted for approximately 5% of Johnson&nbsp;&#38;
Johnson&#146;s worldwide sales in 2005. The only material patent
scheduled to expire during the next two years is related to
RISPERDAL<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>,
which is scheduled to expire in the United States in December
2007, with the possibility of a pediatric extension.
</FONT>

<P align="center"><FONT size="2">2
</FONT>
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Johnson &#38; Johnson has made a practice of
selling its products under trademarks and of obtaining
protection for these trademarks by all available means. Johnson
&#38; Johnson&#146;s trademarks are protected by registration in
the United States and other countries where its products are
marketed. Johnson &#38; Johnson considers these trademarks in
the aggregate to be of material importance in the operation of
its business.
</FONT>

<P align="left">
<B><FONT size="2">Seasonality</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Worldwide sales do not reflect any significant
degree of seasonality; however, spending has been heavier in the
fourth quarter of each year than in other quarters. This
reflects increased spending decisions, principally for
advertising and research grants.
</FONT>

<P align="left">
<B><FONT size="2">Competition</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In all of their product lines, Johnson &#38;
Johnson companies compete with companies both large and small,
located throughout the world. Competition is strong in all
product lines without regard to the number and size of the
competing companies involved. Competition in research, involving
the development and the improvement of new and existing products
and processes, is particularly significant. The development of
new and improved products is important to Johnson &#38;
Johnson&#146;s success in all areas of its business. This
competitive environment requires substantial investments in
continuing research and multiple sales forces. In addition, the
development and maintenance of customer acceptance of the
products of Johnson &#38; Johnson&#146;s consumer businesses
involves significant expenditures for advertising and promotion.
</FONT>

<P align="left">
<B><FONT size="2">Research</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Research activities are important to all segments
of Johnson &#38; Johnson&#146;s business. Major research
facilities are located not only in the United States but also in
Australia, Belgium, Brazil, Canada, China, France, Germany,
Japan, the Netherlands and the United Kingdom. The costs of
worldwide Company-sponsored research activities relating to the
development of new products, improvement of existing products,
technical support of products and compliance with governmental
regulations for the protection of consumers and patients,
excluding in-process research and development charges, amounted
to $6,312&nbsp;million, $5,203&nbsp;million and
$4,684&nbsp;million for fiscal years 2005, 2004 and 2003,
respectively. These costs are charged directly to income in the
year in which incurred.
</FONT>

<P align="left">
<B><FONT size="2">Environment</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">During the past year Johnson &#38; Johnson
companies were subject to a variety of federal, state and local
environmental protection measures. Johnson &#38; Johnson
believes that its operations comply in all material respects
with applicable environmental laws and regulations. Johnson
&#38; Johnson&#146;s compliance with these requirements did not
and is not expected to have a material effect upon its capital
expenditures, cash flows, earnings or competitive position.
</FONT>

<P align="left">
<B><FONT size="2">Regulation</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Most of Johnson &#38; Johnson&#146;s business is
subject to varying degrees of governmental regulation in the
countries in which operations are conducted, and the general
trend is toward regulation of increasing stringency. In the
United States, the drug, device, diagnostics and cosmetic
industries have long been subject to regulation by various
federal and state agencies, primarily as to product safety,
efficacy, manufacturing, advertising and labeling. The exercise
of broad regulatory powers by the FDA continues to result in
increases in the amounts of testing and documentation required
for FDA clearance of new drugs and devices and a corresponding
increase in the expense of product introduction. Similar trends
are also evident in major markets outside of the United States.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The costs of human health care have been and
continue to be a subject of study, investigation and regulation
by governmental agencies and legislative bodies around the
world. In the United States, attention has been focused on drug
prices and profits and programs that encourage doctors to write
prescriptions for particular drugs or recommend, use or purchase
particular medical devices. Payers have become a more potent
</FONT>

<P align="center"><FONT size="2">3
</FONT>

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<DIV align="left">
<FONT size="2">force in the market place and increased attention
is being paid to drug and medical device pricing, appropriate
drug and medical device utilization and the quality and costs of
health care. There is also uncertainty in the United States as
to the impact of the Medicare Prescription Drug, Improvement and
Modernization Act, which was enacted in 2003.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The regulatory agencies under whose purview
Johnson &#38; Johnson companies operate have administrative
powers that may subject those companies to such actions as
product withdrawals, recalls, seizure of products and other
civil and criminal sanctions. In some cases, Johnson &#38;
Johnson&#146;s operating companies may deem it advisable to
initiate product recalls.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In addition, business practices in the health
care industry have come under increased scrutiny, particularly
in the United States, by government agencies and state attorneys
general, and resulting investigations and prosecutions carry the
risk of significant civil and criminal penalties.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="1%"></TD>
    <TD width="99%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><FONT size="2">Available Information</FONT></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Copies of Johnson &#38; Johnson&#146;s quarterly
reports on Form&nbsp;10-Q, annual report on Form&nbsp;10-K and
current reports on Form&nbsp;8-K, and any amendments to the
foregoing, will be provided without charge to any shareholder
submitting a written request to the Secretary at the principal
executive offices of the Company or by calling 800-328-9033. All
of the Company&#146;s Securities and Exchange Commission
(&#147;SEC&#148;) filings are also available on the
Company&#146;s Web site at
<I>www.investor.jnj.com/governance</I>, as soon as reasonably
practicable after having been electronically filed or furnished
to the SEC. All SEC filings are also available at the SEC&#146;s
Web site at <I>www.sec.gov</I>. In addition, the Charters of the
Audit Committee, the Compensation &#38; Benefits Committee and
the Nominating &#38; Corporate Governance Committee of the Board
of Directors and the Company&#146;s Principles of Corporate
Governance, Policy on Business Conduct for employees and Code of
Business Conduct &#38; Ethics for Members of the Board of
Directors and Executive Officers are available at the
<I>www.investor.jnj.com/governance</I> Web site address and will
be provided without charge to any shareholder submitting a
written request, as provided above.
</FONT>

<P align="left">
<B><FONT size="2">Item 1A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;RISK
FACTORS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Not applicable.
</FONT>

<P align="left">
<B><FONT size="2">Item
1B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;UNRESOLVED STAFF
COMMENTS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Not applicable.
</FONT>

<P align="left">
<B><FONT size="2">Item
2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PROPERTIES</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Johnson &#38; Johnson and its worldwide
subsidiaries operate 142 manufacturing facilities occupying
approximately 18.7&nbsp;million square feet of floor space.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The manufacturing facilities are used by the
industry segments of Johnson &#38; Johnson&#146;s business
approximately as follows:
</FONT>

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="76%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="9%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="8%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Square Feet</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2" align="center" nowrap><B><FONT size="1">Segment</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(in thousands)</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Consumer
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,561</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Pharmaceutical
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,664</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Medical Devices and Diagnostics
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,511</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Worldwide Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">18,736</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Within the United States, 5&nbsp;facilities are
used by the Consumer segment, 15 by the Pharmaceutical segment
and 43 by the Medical Devices and Diagnostics segment.
Johnson&nbsp;&#38; Johnson&#146;s manufacturing operations
outside the United States are often conducted in facilities that
serve more than one segment of the business.
</FONT>

<P align="center"><FONT size="2">4
</FONT>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The locations of the manufacturing facilities by
major geographic areas of the world are as follows:
</FONT>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="64%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Number</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Square Feet</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2" align="center" nowrap><B><FONT size="1">Geographic Area</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Facilities</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(in thousands)</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">United States
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">63</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,569</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Europe
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">35</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,225</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Western Hemisphere, excluding U.S.A.
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">15</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,732</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Africa, Asia and Pacific
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">29</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,210</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Worldwide Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">142</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">18,736</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In addition to the manufacturing facilities
discussed above, Johnson &#38; Johnson maintains numerous office
and warehouse facilities throughout the world. Research
facilities are also discussed in Item 1 under &#147;Business
&#151; Research.&#148;
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Johnson &#38; Johnson generally seeks to own its
manufacturing facilities, although some, principally in
locations abroad, are leased. Office and warehouse facilities
are often leased.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Johnson &#38; Johnson&#146;s properties are
maintained in good operating condition and repair and are well
utilized.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">For information regarding lease obligations see
Note&nbsp;4 &#147;Rental Expense and Lease Commitments&#148;
under &#147;Notes to Consolidated Financial Statements&#148; on
page&nbsp;46 of the Annual Report, filed as Exhibit&nbsp;13 to
this Report on Form&nbsp;10-K. Segment information on additions
to property, plant and equipment is contained in Note&nbsp;11
&#147;Segments of Business and Geographic Areas&#148; under
&#147;Notes to Consolidated Financial Statements&#148; on
page&nbsp;50 of the Annual Report, filed as Exhibit&nbsp;13 to
this Report on Form&nbsp;10-K.
</FONT>

<P align="left">
<B><FONT size="2">Item 3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LEGAL
PROCEEDINGS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The information set forth in Note 18 &#147;Legal
Proceedings&#148; under &#147;Notes to Consolidated Financial
Statements&#148; on pages&nbsp;57 through 63 of the Annual
Report is incorporated herein by reference and filed as
Exhibit&nbsp;13 to this Report on Form&nbsp;10-K.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company or its subsidiaries are parties to a
number of proceedings brought under the Comprehensive
Environmental Response, Compensation and Liability Act, commonly
known as Superfund, and comparable state laws, in which the
primary relief sought is the cost of past and future
remediation. While it is not feasible to predict or determine
the outcome of these proceedings, in the opinion of the Company,
such proceedings would not have a material adverse effect on the
results of operations, cash flows or financial position of the
Company.
</FONT>

<P align="left">
<B><FONT size="2">Item 4.&nbsp;&nbsp;SUBMISSION OF MATTERS TO A
VOTE OF SECURITY HOLDERS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Not applicable.
</FONT>

<P align="left">
<B><FONT size="2">Executive Officers of the Registrant</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Listed below are the executive officers of
Johnson &#38; Johnson as of March&nbsp;14, 2006, each of whom,
unless otherwise indicated below, has been an employee of the
Company or its affiliates and held the position indicated during
the past five years. There are no family relationships between
any of the executive officers, and there is no arrangement or
understanding between any executive officer and any other person
pursuant to which the executive officer was selected. At the
annual meeting of the Board of Directors, the executive officers
are elected by the Board to hold office for one year and until
their respective successors are elected and qualified, or until
earlier resignation or removal.
</FONT>

<P align="center"><FONT size="2">5
</FONT>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Information with regard to the directors of the
Company, including those of the following executive officers who
are directors, is incorporated herein by reference to
pages&nbsp;4 through 10 of Johnson &#38; Johnson&#146;s Proxy
Statement dated March&nbsp;15, 2006.
</FONT>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="37%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="53%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="center" nowrap><B><FONT size="1">Name</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Age</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Position</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Robert J. Darretta
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">59</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Vice Chairman, Board of Directors; Member,
    Executive Committee; Chief Financial Officer
    </FONT></DIV>
    </TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Russell C. Deyo
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">56</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Member, Executive Committee; Vice President,
    General Counsel and Chief Compliance Officer(a)
    </FONT></DIV>
    </TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Michael J. Dormer
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">54</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Member, Executive Committee; Worldwide Chairman,
    Medical Devices(b)
    </FONT></DIV>
    </TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Kaye I. Foster-Cheek
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">47</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Member, Executive Committee; Vice President,
    Human Resources(c)
    </FONT></DIV>
    </TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Colleen A. Goggins
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">51</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Member, Executive Committee; Worldwide Chairman,
    Consumer &#38; Personal Care Group(d)
    </FONT></DIV>
    </TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Per A. Peterson, M.D., Ph.D.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">61</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Member, Executive Committee; Chairman, Research
    &#38; Development, Pharmaceuticals Group(e)
    </FONT></DIV>
    </TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Christine A. Poon
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">53</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Vice Chairman, Board of Directors; Member,
    Executive Committee; Worldwide Chairman, Medicines &#38;
    Nutritionals
    </FONT></DIV>
    </TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Joseph C. Scodari
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">53</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Member, Executive Committee; Worldwide Chairman,
    Pharmaceuticals Group(f)
    </FONT></DIV>
    </TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Nicholas J. Valeriani
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">49</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Member, Executive Committee; Worldwide Chairman,
    Cardiovascular Devices and Diagnostics(g)
    </FONT></DIV>
    </TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">William C. Weldon
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">57</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Chairman, Board of Directors; Chairman, Executive
    Committee; Chief Executive Officer
    </FONT></DIV>
    </TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left">
<HR size="1" width="18%" align="left" color="black" noshade>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(a)</FONT></TD>
    <TD align="left">
    <FONT size="2">Mr. R. C. Deyo joined the Company in 1985 and
    became Associate General Counsel in 1991. He became a Member of
    the Executive Committee and Vice President, Administration, in
    1996 and Vice President, General Counsel and Chief Compliance
    Officer in April 2004.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(b)</FONT></TD>
    <TD align="left">
    <FONT size="2">Mr.&nbsp;M.&nbsp;J. Dormer joined the Company in
    1998 as Company Group Chairman, Worldwide Franchise Chairman for
    DePuy and Codman, when the Company acquired DePuy, Inc. At the
    time of that acquisition, he had been Chief Operating Officer of
    DePuy, Inc. since 1996. Mr.&nbsp;Dormer became a Member of the
    Executive Committee and Franchise Group Chairman for Medical
    Devices in 2001. In April&nbsp;2002, Mr.&nbsp;Dormer was named
    Worldwide Chairman, Medical Devices.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(c)</FONT></TD>
    <TD align="left">
    <FONT size="2">Ms.&nbsp;K.&nbsp;I. Foster-Cheek joined the
    Company in 2003 as Vice President, Human Resources, for the
    Johnson &#38; Johnson Consumer Products Companies. In March
    2004, she was named Vice President, Human Resources, for the
    Consumer &#38; Personal Care Group and was named a member of the
    Human Resources Leadership Team and the Consumer &#38; Personal
    Care Group Operating Committee. Ms. Foster-Cheek became a Member
    of the Executive Committee and Vice President, Human Resources,
    for the Company in January 2005. Prior to joining the Company,
    Ms.&nbsp;Foster-Cheek served in various human resources
    management positions with Pfizer Inc. for 13&nbsp;years, most
    recently supporting its pharmaceutical business in Japan, Asia,
    Africa, Middle East and Latin America.
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(d)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Ms.&nbsp;C. A. Goggins joined the Company in 1981
    and held various positions before becoming President of Personal
    Products Company in 1994. She was named President of Johnson
    &#38; Johnson Consumer Products Company in 1995 and Company
    Group Chairman, North America, Johnson &#38; Johnson Consumer
    Products in 1998. Ms.&nbsp;Goggins became a Member of the
    Executive Committee and Worldwide Chairman, Consumer &#38;
    Personal Care Group, in 2001.
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(e)</FONT></TD>
    <TD align="left">
    <FONT size="2">Dr.&nbsp;P.&nbsp;A. Peterson joined the Company
    in 1994 as Vice President, Drug Discovery, of The
    R.W.&nbsp;Johnson Pharmaceutical Research Institute. He was
    named Group Vice President of The Pharmaceutical Research
    Institute in April 1998 and its President in November 1998. In
    2000, Dr.&nbsp;Peterson was named Chairman, Research &#38;
    Development, Pharmaceuticals Group. Dr.&nbsp;Peterson became a
    Member of the Executive Committee in 2001.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">6
</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(f)</FONT></TD>
    <TD align="left">
    <FONT size="2">Mr.&nbsp;J.&nbsp;C. Scodari joined the Company in
    1999 as President of Centocor when the Company acquired
    Centocor. At the time of that acquisition, he had been the
    President and Chief Operating Officer of Centocor and a member
    of Centocor&#146;s Board of Directors since December 1997. In
    March 2001, he was named Company Group Chairman for the North
    American pharmaceutical business, and became a member of the
    Pharmaceuticals Group Operating Committee. In March 2003,
    Mr.&nbsp;Scodari was named Company Group Chairman,
    Biopharmaceutical Businesses. Mr.&nbsp;Scodari was named
    Worldwide Chairman, Pharmaceuticals Group, and became a Member
    of the Executive Committee on March&nbsp;1, 2005.
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(g)</FONT></TD>
    <TD align="left">
    <FONT size="2">Mr. N.&nbsp;J. Valeriani joined the Company in
    1978 and held various positions before becoming President of
    Ethicon Endo-Surgery, Inc. in 1997. In January 2001 he was named
    Company Group Chairman for Ethicon Endo-Surgery with additional
    responsibility for the Johnson&nbsp;&#38; Johnson Medical
    Products Medical Devices and Diagnostics business in Canada. He
    became Worldwide Franchise Chairman for the DePuy Franchise in
    2002. Mr.&nbsp;Valeriani became a Member of the Executive
    Committee and Vice President, Human Resources, in September
    2003. In February 2004 he assumed additional responsibilities as
    Worldwide Chairman, Diagnostics. In January 2005,
    Mr.&nbsp;Valeriani was appointed Worldwide Chairman,
    Cardiovascular Devices and Diagnostics and relinquished his
    Human Resources responsibilities.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">


<P align="center">
<B><FONT size="2">PART II</FONT></B>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">Item 5.</FONT></B></TD>
    <TD>
    <B><FONT size="2">MARKET FOR THE REGISTRANT&#146;S COMMON
    EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF
    EQUITY SECURITIES</FONT></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As of February&nbsp;28, 2006, there were 181,031
record holders of Common Stock of the Company. The other
information called for by this item is incorporated herein by
reference to: the material captioned &#147;Management&#146;s
Discussion and Analysis of Results of Operations and Financial
Condition&nbsp;&#151; Dividends&#148; on page&nbsp;35;
&#147;Common Stock Market Prices&#148; on page&nbsp;38; and
Note&nbsp;10 under the &#147;Notes to Consolidated Financial
Statements&#148; on page&nbsp;49 of the Annual Report, filed as
Exhibit&nbsp;13 to this Report on Form&nbsp;10-K.
</FONT>

<P align="left">
<B><FONT size="2">Issuer Purchases of Equity
Securities</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following table provides information with
respect to Common Stock share purchases by the Company during
the fiscal fourth quarter of 2005. Stock purchases are made as
part of a systematic plan to meet the Company&#146;s
compensation programs.
</FONT>

<CENTER>
<TABLE width="90%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="54%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="11%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="10%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="9%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="8%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Total Number of Shares</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Average Price Paid</FONT></B></TD>
</TR>

<TR>
    <TD align="left" nowrap><B><FONT size="1">Fiscal Month</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Purchased</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Per Share</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">October&nbsp;3, 2005 through October&nbsp;30, 2005
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,680,600</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">62.32</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">October&nbsp;31, 2005 through November&nbsp;27,
    2005
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,823,300</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">62.00</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">November&nbsp;28, 2005 through January&nbsp;1,
    2006
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,456,500</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">61.16</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">
<B><FONT size="2">Item 6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SELECTED
FINANCIAL DATA</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The information called for by this item is
incorporated herein by reference to the material captioned
&#147;Summary of Operations and Statistical Data 1995-2005&#148;
on page&nbsp;66 of the Annual Report, filed as Exhibit&nbsp;13
to this Report on Form&nbsp;10-K.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">Item 7.</FONT></B></TD>
    <TD>
    <B><FONT size="2">MANAGEMENT&#146;S DISCUSSION AND ANALYSIS OF
    FINANCIAL CONDITION AND RESULTS OF OPERATIONS</FONT></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The information called for by this item is
incorporated herein by reference to the narrative and tabular
(but not the graphic) material included under
&#147;Management&#146;s Discussion and Analysis of Results of
Operations and Financial Condition&#148; on pages&nbsp;28
through 38 of the Annual Report, filed as Exhibit&nbsp;13 to
this Report on Form&nbsp;10-K.
</FONT>

<P align="center"><FONT size="2">7
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<P align="left">
<B><FONT size="2">Item&nbsp;7A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;QUANTITATIVE
AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The information called for by this item is
incorporated herein by reference to the narrative (but not the
graphic) material captioned &#147;Management&#146;s Discussion
and Analysis of Results of Operations and Financial
Condition&nbsp;&#151; Liquidity and Capital Resources&#148; on
pages&nbsp;34 and 35 of the Annual Report, filed as
Exhibit&nbsp;13 to this Report on Form&nbsp;10-K.
</FONT>

<P align="left">
<B><FONT size="2">Item 8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FINANCIAL
STATEMENTS AND SUPPLEMENTARY DATA</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The information called for by this item is
incorporated herein by reference to the Audited Consolidated
Financial Statements and Notes thereto and the material
captioned &#147;Report of Independent Registered Public
Accounting Firm&#148; on pages&nbsp;39 through 65 of the Annual
Report, filed as Exhibit&nbsp;13 to this Report on
Form&nbsp;10-K.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">Item 9.</FONT></B></TD>
    <TD>
    <B><FONT size="2">CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS
    ON ACCOUNTING AND FINANCIAL DISCLOSURE</FONT></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Not applicable.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">Item&nbsp;9A.</FONT></B></TD>
    <TD>
    <B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CONTROLS AND
    PROCEDURES</FONT></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Disclosure Controls and
Procedures.</FONT></I><FONT size="2"> At the end of the fiscal
fourth quarter, the Company evaluated the effectiveness of the
design and operation of its disclosure controls and procedures.
The Company&#146;s disclosure controls and procedures are
designed to ensure that information required to be disclosed by
the Company in the reports that it files or submits under the
Securities Exchange Act is recorded, processed, summarized and
reported, within the time periods specified in the SEC&#146;s
rules and forms. Disclosure controls and procedures include,
without limitation, controls and procedures designed to ensure
that information required to be disclosed by the Company in the
reports that it files or submits under the Securities Exchange
Act is accumulated and communicated to the Company&#146;s
management, including its principal executive and principal
financial officers, or persons performing similar functions, as
appropriate to allow timely decisions regarding required
disclosure. William&nbsp;C. Weldon, Chairman and Chief Executive
Officer, and Robert&nbsp;J. Darretta, Vice Chairman and Chief
Financial Officer, reviewed and participated in this evaluation.
Based on this evaluation, Messrs.&nbsp;Weldon and Darretta
concluded that, as of the date of their evaluation, the
Company&#146;s disclosure controls and procedures were effective.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Internal Control.</FONT></I><FONT size="2">
Management&#146;s Report on Internal Control Over Financial
Reporting is included in this Report on Form&nbsp;10-K in this
Item 9A. During the fiscal quarter ended January&nbsp;1, 2006,
there were no changes in the Company&#146;s internal control
over financial reporting that have materially affected, or are
reasonably likely to materially affect, the Company&#146;s
internal control over financial reporting.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Management&#146;s Report on Internal Control
Over Financial Reporting. </FONT></I><FONT size="2">Under
Section 404 of the Sarbanes-Oxley Act of 2002, management is
required to assess the effectiveness of the Company&#146;s
internal control over financial reporting as of the end of each
fiscal year and report, based on that assessment, whether the
Company&#146;s internal control over financial reporting is
effective.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Management of the Company is responsible for
establishing and maintaining adequate internal control over
financial reporting. The Company&#146;s internal control over
financial reporting is designed to provide reasonable assurance
as to the reliability of the Company&#146;s financial reporting
and the preparation of financial statements in accordance with
generally accepted accounting principles.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Internal controls over financial reporting, no
matter how well designed, have inherent limitations. Therefore,
internal control over financial reporting determined to be
effective can provide only reasonable assurance with respect to
financial statement preparation and may not prevent or detect
all misstatements. Moreover, projections of any evaluation of
effectiveness to future periods are subject to the risk that
controls may become inadequate because of changes in conditions,
or that the degree of compliance with the policies or procedures
may deteriorate.
</FONT>

<P align="center"><FONT size="2">8
</FONT>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company&#146;s management has assessed the
effectiveness of the Company&#146;s internal control over
financial reporting as of January&nbsp;1, 2006. In making this
assessment, the Company used the criteria established by the
Committee of Sponsoring Organizations of the Treadway Commission
(COSO) in &#147;Internal Control-Integrated Framework.&#148;
These criteria are in the areas of control environment, risk
assessment, control activities, information and communication,
and monitoring. The Company&#146;s assessment included extensive
documenting, evaluating and testing the design and operating
effectiveness of its internal control over financial reporting.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Based on the Company&#146;s processes and
assessment, as described above, management has concluded that,
as of January&nbsp;1, 2006, the Company&#146;s internal control
over financial reporting was effective.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Management&#146;s assessment of the effectiveness
of the Company&#146;s internal control over financial reporting
as of January&nbsp;1, 2006 has been audited by
PricewaterhouseCoopers LLP, an independent registered public
accounting firm, as stated in their report, which appears in the
&#147;Report of Independent Registered Public Accounting
Firm&#148; on page&nbsp;65 of the Annual Report, which is
incorporated herein by reference and filed as Exhibit&nbsp;13 to
this Report on Form&nbsp;10-K.
</FONT>

<P align="left">
<B><FONT size="2">Item 9B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;OTHER
INFORMATION</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On March&nbsp;8, 2006, the Company announced that
its Board of Directors has approved a stock repurchase program,
authorizing the Company to buy back up to $5&nbsp;billion of the
Company&#146;s common stock. Repurchases will take place on the
open market from time-to-time based on market conditions. The
repurchase program has no time limit and may be suspended for
periods or discontinued.
</FONT>

<P align="center">
<B><FONT size="2">PART III</FONT></B>

<P align="left">
<B><FONT size="2">Item 10.&nbsp;&nbsp;DIRECTORS AND EXECUTIVE
OFFICERS OF THE REGISTRANT</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The information called for by this item is
incorporated herein by reference to (a)&nbsp;the material under
the caption &#147;Election of Directors&nbsp;&#151;
Nominees&#148; and &#147;&#151;&nbsp;Other Information&#148; on
pages 4 through 10 of the Proxy Statement, (b)&nbsp;the material
in Part I hereof under the caption &#147;Executive Officers of
the Registrant,&#148; (c)&nbsp;the discussion of the Audit
Committee under the heading &#147;Directors&#146; Fees,
Committees and Meetings&#148; on pages&nbsp;12 and 13 of the
Proxy Statement and (d)&nbsp;the material under the caption
&#147;Section&nbsp;16(a) Beneficial Ownership Reporting
Compliance&#148; on page&nbsp;15 of the Proxy Statement.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company&#146;s Policy on Business Conduct,
which covers all employees (including the Chief Executive
Officer, Chief Financial Officer and Controller), meets the
requirements of the SEC rules promulgated under Section&nbsp;406
of the Sarbanes-Oxley Act of 2002. The Policy on Business
Conduct is available on the Company&#146;s Web site at
<I>www.investor.jnj.com/governance</I>, and copies are available
to shareholders without charge upon written request to the
Secretary at the Company&#146;s principal address. Any
substantive amendment to the Policy on Business Conduct or any
waiver of the Policy granted to the Chief Executive Officer, the
Chief Financial Officer or the Controller will be posted on the
Company&#146;s Web site at
<I>www.investor.jnj.com/governance</I> within five business days
(and retained on the Web site for at least one year).
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In addition, the Company has adopted a Code of
Business Conduct &#38; Ethics for Members of the Board of
Directors and Executive Officers. The Code of Business Conduct
&#38; Ethics for Members of the Board of Directors and Executive
Officers is available on the Company&#146;s Web site at
<I>www.investor.jnj.com/governance</I>, and copies are available
to shareholders without charge upon written request to the
Secretary at the Company&#146;s principal address. Any
substantive amendment to the Code or any waiver of the Code
granted to any member of the Board of Directors or any executive
officer will be posted on the Company&#146;s Web site at
<I>www.investor.jnj.com/governance</I> within five business days
(and retained on the Web site for at least one year).
</FONT>

<P align="left">
<B><FONT size="2">Item 11.&nbsp;&nbsp;EXECUTIVE
COMPENSATION</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The&nbsp;information called for by this item is
incorporated herein by reference to the following sections of
the Proxy Statement: &#147;Election of Directors&nbsp;&#151;
Directors&#146; Fees, Committees and Meetings&#148; on
pages&nbsp;12 through 13; &#147;Compensation&nbsp;&#38; Benefits
Committee Report on Executive Compensation&#148; on
pages&nbsp;17 through
</FONT>

<P align="center"><FONT size="2">9
</FONT>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV align="left">
<FONT size="2">22; &#147;Shareholder Return Performance
Graphs&#148; on pages&nbsp;23 and 24; and &#147;Executive
Compensation&#148; on pages&nbsp;25 through 31.
</FONT>
</DIV>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">Item 12.</FONT></B></TD>
    <TD>
    <B><FONT size="2">SECURITY OWNERSHIP OF CERTAIN BENEFICIAL
    OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS</FONT></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The information called for by this item is
incorporated herein by reference to the material captioned
&#147;Election of Directors&nbsp;&#151; Stock
Ownership/Control&#148; on page&nbsp;11 of the Proxy Statement
and Note&nbsp;10 under the &#147;Notes to Consolidated Financial
Statements&#148; on page&nbsp;49 of the Annual Report, filed as
Exhibit&nbsp;13 to this Report on Form&nbsp;10-K.
</FONT>

<P align="left">
<B><FONT size="2">Equity Compensation Plan Information</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following table provides certain information
as of January 1, 2006 concerning the shares of the
Company&#146;s Common Stock that may be issued under existing
equity compensation plans.
</FONT>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="29%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="9%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="9%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="9%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="8%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="12%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="12%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Number of Shares to be</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Weighted Average</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Number of Shares</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Issued Upon Exercise of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Exercise Price</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Remaining Available for</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Outstanding Options</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">of Outstanding</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Future Issuance Under</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">and Rights</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Options and Rights</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Equity Compensation Plans</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">as&nbsp;of&nbsp;Jan.&nbsp;1,&nbsp;2006</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">as&nbsp;of&nbsp;Jan.&nbsp;1,&nbsp;2006</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">as&nbsp;of&nbsp;Jan.&nbsp;1,&nbsp;2006</FONT></B><SUP><FONT size="1">(4)</FONT></SUP></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Equity Compensation Plans Approved by
    Shareholders<SUP>(1)</SUP>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">241,781,069</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">53.59</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">259,736,709</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Equity Compensation Plans Not Approved by
    Shareholders<SUP>(2)(3)</SUP>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,872,047</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">33.29</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">248,653,116</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">53.03</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">259,736,709</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">
<HR size="1" width="18%" align="left" color="black" noshade>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><SUP><FONT size="2">(1)</FONT></SUP><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Included in this category are the following
    equity compensation plans which have been approved by the
    Company&#146;s shareholders: 1995 Stock Option Plan, 2000 Stock
    Option Plan, 2000 Stock Compensation Plan and 2005 Long Term
    Incentive Plan.
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top">
    <TD><SUP><FONT size="2">(2)&nbsp;</FONT></SUP></TD>
    <TD align="left">
    <FONT size="2">Included in this category are
    6,699,547&nbsp;shares of Common Stock issuable under various
    equity compensation plans assumed by the Company upon
    acquisition of the following companies: ALZA Corporation,
    Scios&nbsp;Inc., Biosense,&nbsp;Inc., Innovasive
    Devices,&nbsp;Inc., Inverness Medical Technology,&nbsp;Inc. and
    Centocor,&nbsp;Inc. 2,976,157 of the shares listed as issuable
    in this category were issued under plans that were approved by
    the shareholders of these companies prior to the acquisition and
    the assumption of these plans by the Company. At the time of
    each of these acquisitions, options to acquire equity of the
    acquired company were replaced by options to acquire the Common
    Stock of the Company. No stock options or equity awards of any
    type have been made under any of these plans since the
    assumption of these plans by the Company, and no further stock
    options or other equity awards of any type will be made under
    any of these plans in the future.
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">The shares that are included in this column that
    were issued under plans not approved by shareholders of the
    applicable acquired company are: 5,742&nbsp;shares issuable
    under the 1996 Biosense Stock Option Plan; 2,507,295&nbsp;shares
    issuable under the 1996 Scios Non-Officer Stock Option Plan;
    1,175,036&nbsp;shares issuable under an ALZA non-statutory plan;
    and 35,317&nbsp;shares issuable under warrants under an
    Inverness Medical plan.
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top">
    <TD><SUP><FONT size="2">(3)&nbsp;</FONT></SUP></TD>
    <TD align="left">
    <FONT size="2">Also included in this category are
    172,500&nbsp;shares of Common Stock issuable upon the exercise
    of outstanding stock options under Company&#146;s Stock Option
    Plan for Non-Employee Directors.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><SUP><FONT size="2">(4)&nbsp;</FONT></SUP></TD>
    <TD align="left">
    <FONT size="2">This column excludes shares reflected under the
    column &#147;Number of Shares to be Issued Upon Exercise of
    Outstanding Options and Rights as of
    Jan.&nbsp;1,&nbsp;2006.&#148;
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<B><FONT size="2">Item 13.&nbsp;&nbsp;CERTAIN RELATIONSHIPS AND
RELATED TRANSACTIONS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The information called for by this item is
incorporated herein by reference to the material captioned
&#147;Election of Directors&nbsp;&#151; Certain Business
Relationships&#148; on page&nbsp;10 of the Proxy Statement.
</FONT>

<P align="center"><FONT size="2">10
</FONT>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<P align="left">
<B><FONT size="2">Item 14.&nbsp;&nbsp;PRINCIPAL ACCOUNTING FEES
AND SERVICES</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The information called for by this item is
incorporated herein by reference to the material under the
headings &#147;Ratification of Appointment of Independent
Registered Public Accounting Firm&#148; and &#147;Pre-Approval
of Audit and Non-Audit Services&#148; on pages&nbsp;33 through
35 of the Proxy Statement.
</FONT>

<P align="center">
<B><FONT size="2">PART IV</FONT></B>

<P align="left">
<B><FONT size="2">Item 15.&nbsp;&nbsp;EXHIBITS, FINANCIAL
STATEMENT SCHEDULES</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">(a)&nbsp;The following documents are filed as
part of this report:
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">1.<I>&nbsp;Financial Statements</I>
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following Audited Consolidated Financial
Statements and Notes thereto and the Report of Independent
Registered Public Accounting Firm on pages 39 through 65 of the
Annual Report are incorporated herein by reference and filed as
Exhibit&nbsp;13 to this Report on Form&nbsp;10-K:
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Consolidated Balance Sheets at end of Fiscal
Years 2005 and 2004
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Consolidated Statements of Earnings for Fiscal
Years 2005, 2004 and 2003
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Consolidated Statements of Equity for Fiscal
Years 2005, 2004 and 2003
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Consolidated Statements of Cash Flows for Fiscal
Years 2005, 2004
and &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2003
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Notes to Consolidated Financial Statements
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Report of Independent Registered Public
Accounting Firm
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">2.&nbsp;<I>Financial Statement Schedules</I>
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Schedule II&nbsp;&#151; Valuation and Qualifying
Accounts
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Schedules other than those listed above are
omitted because they are not required or are not applicable.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">3.&nbsp;<I>Exhibits Required to be Filed by Item
60l of Regulation S-K</I>
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The information called for by this item is
incorporated herein by reference to the Exhibit Index in this
report.
</FONT>

<P align="center"><FONT size="2">11
</FONT>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<P align="center">
<B><FONT size="2">JOHNSON &#38; JOHNSON AND
SUBSIDIARIES</FONT></B>

<P align="center">
<B><FONT size="2">SCHEDULE II&nbsp;&#151; VALUATION AND
QUALIFYING ACCOUNTS</FONT></B>

<P align="center">
<B><FONT size="2">Fiscal Years Ended January&nbsp;1, 2006,
January&nbsp;2, 2005 and December&nbsp;28, 2003</FONT></B>

<DIV align="center">
<B><FONT size="2">(Dollars in Millions)</FONT></B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="51%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Balance at</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Balance at</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Beginning</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Payments/</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">End of</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">of Period</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Accruals</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Other</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Period</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">2005
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Accrued rebates, returns and
    promotions<SUP>(1)</SUP>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,785</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,798</FONT></TD>
    <TD align="left" valign="bottom" nowrap><SUP><FONT size="2">(2)</FONT></SUP></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(8,095</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,488</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Reserve for doubtful accounts
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">206</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">19</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(61</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">164</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Reserve for cash discounts
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">62</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">861</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(866</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">57</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,053</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,678</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(9,022</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,709</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">2004
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Accrued rebates, returns and
    promotions<SUP>(1)</SUP>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,622</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,514</FONT></TD>
    <TD align="left" valign="bottom" nowrap><SUP><FONT size="2">(3)</FONT></SUP></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(7,351</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,785</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Reserve for doubtful accounts
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">192</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">29</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(15</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">206</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Reserve for cash discounts
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">55</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">736</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(729</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">62</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,869</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,279</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(8,095</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,053</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">2003
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Accrued rebates, returns and
    promotions<SUP>(1)</SUP>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,035</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,850</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(5,263</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,622</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Reserve for doubtful accounts
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">191</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">28</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(27</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">192</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Reserve for cash discounts
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">62</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">597</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(604</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">55</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,288</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,475</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(5,894</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,869</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left">
<HR size="1" width="18%" align="left" color="black" noshade>
</DIV>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top">
    <TD><SUP><FONT size="2">(1)&nbsp;</FONT></SUP></TD>
    <TD align="left">
    <FONT size="2">Includes reserve for customer rebates of $471
    million, $488 million and $314 million at January&nbsp;1, 2006,
    January&nbsp;2, 2005 and December&nbsp;28, 2003, respectively.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><SUP><FONT size="2">(2)&nbsp;</FONT></SUP></TD>
    <TD align="left">
    <FONT size="2">Includes $186&nbsp;million related to previously
    estimated performance-based rebate allowances in managed care
    contracts.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><SUP><FONT size="2">(3)&nbsp;</FONT></SUP></TD>
    <TD align="left">
    <FONT size="2">Includes $170 million related to previously
    estimated performance-based rebate allowances in managed care
    contracts.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">12
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<P align="center">
<B><FONT size="2">SIGNATURES</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Pursuant to the requirements of Section 13 of the
Securities Exchange Act of 1934, the registrant has duly caused
this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
</FONT>

<P align="left">
<FONT size="2">Date: March&nbsp;13, 2006
</FONT>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="38%"></TD>
    <TD width="62%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="center">
    <FONT size="2">JOHNSON &#38; JOHNSON
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <HR size="1" align="left" color="black" noshade></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="center">
    <FONT size="2">(Registrant)
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="38%"></TD>
    <TD width="2%"></TD>
    <TD width="60%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">By&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">/s/W. C. WELDON
    </FONT></TD>
</TR>

</TABLE>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="38%"></TD>
    <TD width="62%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <HR size="1" align="left" color="black" noshade></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="center">
    <FONT size="2">W. C. Weldon, Chairman, Board of Directors,
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="center">
    <FONT size="2">and Chief Executive Officer
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="38%"></TD>
    <TD width="62%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">Pursuant to the requirements of the Securities
    Exchange Act of 1934, this report has been signed below by the
    following persons on behalf of the registrant and in the
    capacities and on the dates indicated.
    </FONT></TD>
</TR>

</TABLE>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="42%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="39%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="13%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="center" nowrap><B><FONT size="1">Signature</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Title</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Date</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <FONT size="2">/s/ W. C. WELDON<BR>
    <HR size="1" noshade>W. C. Weldon
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Chairman, Board of Directors,<BR>
    Chief Executive Officer, and Director (Principal Executive
    Officer)
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">March&nbsp;13, 2006
    </FONT></TD>
</TR>

<TR>
    <TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <FONT size="2">/s/ R. J. DARRETTA<BR>
    <HR size="1" noshade>R. J. Darretta
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Vice Chairman, Board of Directors, Chief
    Financial Officer, and Director (Principal Financial Officer)
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">March&nbsp;13, 2006
    </FONT></TD>
</TR>

<TR>
    <TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <FONT size="2">/s/ C. A. POON<BR>
    <HR size="1" noshade>C. A. Poon
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Vice Chairman, Board of Directors, and Director
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">March&nbsp;14, 2006
    </FONT></TD>
</TR>

<TR>
    <TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <FONT size="2">/s/ S. J. COSGROVE<BR>
    <HR size="1" noshade>S. J. Cosgrove
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Controller
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">March&nbsp;13, 2006
    </FONT></TD>
</TR>

<TR>
    <TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <FONT size="2">/s/ M. S. COLEMAN<BR>
    <HR size="1" noshade>M. S. Coleman
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Director
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">March&nbsp;10, 2006
    </FONT></TD>
</TR>

<TR>
    <TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <FONT size="2">/s/ J. G. CULLEN<BR>
    <HR size="1" noshade>J. G. Cullen
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Director
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">March&nbsp;10, 2006
    </FONT></TD>
</TR>

<TR>
    <TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <FONT size="2">/s/ M. M. E. JOHNS<BR>
    <HR size="1" noshade>M. M. E. Johns
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Director
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">March&nbsp;8, 2006
    </FONT></TD>
</TR>

<TR>
    <TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <FONT size="2">/s/ A. D. JORDAN<BR>
    <HR size="1" noshade>A. D. Jordan
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Director
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">March&nbsp;8, 2006
    </FONT></TD>
</TR>

<TR>
    <TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <FONT size="2">/s/ A. G. LANGBO<BR>
    <HR size="1" noshade>A. G. Langbo
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Director
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">March&nbsp;8, 2006
    </FONT></TD>
</TR>

<TR>
    <TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">13
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="42%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="39%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="13%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="center" nowrap><B><FONT size="1">Signature</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Title</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Date</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <FONT size="2">/s/ S. L. LINDQUIST<BR>
    <HR size="1" noshade>S. L. Lindquist
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Director
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">March&nbsp;9, 2006
    </FONT></TD>
</TR>

<TR>
    <TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <FONT size="2">/s/ L.F. MULLIN<BR>
    <HR size="1" noshade>L.F. Mullin
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Director
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">March&nbsp;8, 2006
    </FONT></TD>
</TR>

<TR>
    <TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <FONT size="2">/s/ C. PRINCE<BR>
    <HR size="1" noshade>C. Prince
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Director
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">March&nbsp;10, 2006
    </FONT></TD>
</TR>

<TR>
    <TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <FONT size="2">/s/ S. S REINEMUND<BR>
    <HR size="1" noshade>S. S Reinemund
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Director
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">March&nbsp;13, 2006
    </FONT></TD>
</TR>

<TR>
    <TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <FONT size="2">/s/ D. SATCHER<BR>
    <HR size="1" noshade>D. Satcher
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Director
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">March&nbsp;9, 2006
    </FONT></TD>
</TR>

<TR>
    <TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">14
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<P align="center">
<B><FONT size="2">REPORT OF INDEPENDENT REGISTERED PUBLIC
ACCOUNTING FIRM ON</FONT></B>

<DIV align="center">
<B><FONT size="2">FINANCIAL STATEMENT SCHEDULE</FONT></B>
</DIV>

<P align="left">
<FONT size="2">To the Board of Directors of
</FONT>

<DIV align="left">
<FONT size="2">Johnson &#38; Johnson:
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our audits of the consolidated financial
statements, of management&#146;s assessment of the effectiveness
of internal control over financial reporting and of the
effectiveness of internal control over financial reporting
referred to in our report dated February&nbsp;28, 2006,
appearing in the 2005 Annual Report to Shareholders of Johnson
&#38; Johnson (which report, consolidated financial statements
and assessment are incorporated by reference in this Annual
Report on Form&nbsp;10-K) also included an audit of the
financial statement schedule listed in Item&nbsp;15(a)(2) of
this Form&nbsp;10-K. In our opinion, this financial statement
schedule presents fairly, in all material respects, the
information set forth therein when read in conjunction with the
related consolidated financial statements.
</FONT>

<P align="left">
<FONT size="2">/s/ PRICEWATERHOUSECOOPERS LLP
</FONT>

<DIV align="left">
<HR size="1" width="60%" align="left" color="black" noshade>
</DIV>

<DIV align="left">
<FONT size="2">PricewaterhouseCoopers LLP
</FONT>
</DIV>

<P align="left">
<FONT size="2">New York, New York
</FONT>

<DIV align="left">
<FONT size="2">February&nbsp;28, 2006
</FONT>
</DIV>

<P align="center"><FONT size="2">15
</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<P align="center">
<B><FONT size="2">EXHIBIT INDEX</FONT></B>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="8%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="8%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="80%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Reg. S-K</FONT></B></TD>
    <TD></TD>
    <TD></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Exhibit Table</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Description</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Item No.</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">of Exhibit</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">3</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">(a)(i)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Restated Certificate of Incorporation dated
    April&nbsp;26, 1990&nbsp;&#151; Incorporated herein by reference
    to Exhibit&nbsp;3(a) of the Registrant&#146;s Form&nbsp;10-K
    Annual Report for the year ended December&nbsp;30, 1990.
    </FONT></TD>
</TR>

<TR>
    <TD align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">3</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">(a)(ii)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Certificate of Amendment to the Restated
    Certificate of Incorporation of the Company dated May&nbsp;20,
    1992&nbsp;&#151; Incorporated herein by reference to
    Exhibit&nbsp;3(a) of the Registrant&#146;s Form&nbsp;10-K Annual
    Report for the year ended January&nbsp;3, 1993.
    </FONT></TD>
</TR>

<TR>
    <TD align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">3</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">(a)(iii)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Certificate of Amendment to the Restated
    Certificate of Incorporation of the Company dated May&nbsp;21,
    1996&nbsp;&#151; Incorporated herein by reference to
    Exhibit&nbsp;3(a)(iii) of the Registrant&#146;s Form&nbsp;10-K
    Annual Report for the year ended December&nbsp;29, 1996.
    </FONT></TD>
</TR>

<TR>
    <TD align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">3</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">(a)(iv)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Certificate of Amendment to the Restated
    Certificate of Incorporation of the Company effective
    May&nbsp;22, 2001&nbsp;&#151; Incorporated herein by reference
    to Exhibit&nbsp;3 of the Registrant&#146;s Form&nbsp;10-Q
    Quarterly Report for the quarter ended July&nbsp;1, 2001.
    </FONT></TD>
</TR>

<TR>
    <TD align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">3</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">(b)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">By-Laws of the Company, as amended effective
    June&nbsp;11, 2001&nbsp;&#151; Incorporated herein by reference
    to Exhibit&nbsp;99.2 of the Registrant&#146;s Form&nbsp;10-Q
    Quarterly Report for the quarter ended July&nbsp;1, 2001.
    </FONT></TD>
</TR>

<TR>
    <TD align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">(a)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Upon the request of the Securities and Exchange
    Commission, the Registrant will furnish a copy of all
    instruments defining the rights of holders of long term debt of
    the Registrant.
    </FONT></TD>
</TR>

<TR>
    <TD align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">(a)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Stock Option Plan for Non-Employee
    Directors&nbsp;&#151; Incorporated herein by reference to
    Exhibit&nbsp;10(a) of the Registrant&#146;s Form&nbsp;10-K
    Annual Report for the year ended December&nbsp;29, 1996.*
    </FONT></TD>
</TR>

<TR>
    <TD align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">(b)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">2000 Stock Option Plan (as amended)&nbsp;&#151;
    Incorporated herein by reference to Exhibit&nbsp;10(b) of the
    Registrant&#146;s Form&nbsp;10-K Annual Report for the year
    ended December&nbsp;29, 2002.*
    </FONT></TD>
</TR>

<TR>
    <TD align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">(c)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">1995 Stock Option Plan (as amended)&nbsp;&#151;
    Incorporated herein by reference to Exhibit&nbsp;10(b) of the
    Registrant&#146;s Form&nbsp;10-K Annual Report for the year
    ended January&nbsp;3, 1999.*
    </FONT></TD>
</TR>

<TR>
    <TD align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">(d)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">2000 Stock Compensation Plan&nbsp;&#151;
    Incorporated herein by reference to Exhibit&nbsp;10(e) of the
    Registrant&#146;s Form&nbsp;10-K Annual Report for the year
    ended December&nbsp;31, 2000.*
    </FONT></TD>
</TR>

<TR>
    <TD align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">(e)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">2005 Long-Term Incentive
    Plan&nbsp;&#151;&nbsp;Incorporated herein by reference to
    Exhibit&nbsp;4 of the Registrant&#146;s S-8 Registration
    Statement filed with the Commission on May&nbsp;10, 2005 (file
    no.&nbsp;333-124785).*
    </FONT></TD>
</TR>

<TR>
    <TD align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">(f)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Form of Stock Option Certificate and Restricted
    Shares to Non-Employee Directors Certificate under the 2005
    Long-Term Incentive Plan&nbsp;&#151; Incorporated herein by
    reference to Exhibit&nbsp;10.1 of the Registrant&#146;s
    Form&nbsp;10-Q Quarterly Report for the quarter ended
    July&nbsp;3, 2005.*
    </FONT></TD>
</TR>

<TR>
    <TD align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">(g)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Form of Restricted Stock Unit Certificate under
    the 2005 Long-Term Incentive Plan&nbsp;&#151; Incorporated
    herein by reference to Exhibit&nbsp;10.1 of the
    Registrant&#146;s Form&nbsp;10-Q Quarterly Report for the
    quarter ended October&nbsp;2, 2005.*
    </FONT></TD>
</TR>

<TR>
    <TD align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">(h)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Executive Bonus Plan&nbsp;&#151; Incorporated
    herein by reference to Exhibit&nbsp;4 of the Registrant&#146;s
    Form&nbsp;S-8 Registration Statement filed with the Commission
    on November&nbsp;8, 2005 (file no.&nbsp;333-129542).*
    </FONT></TD>
</TR>

<TR>
    <TD align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">(i)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Executive Incentive Plan (as amended)&nbsp;&#151;
    Incorporated herein by reference to Exhibit&nbsp;10(f) of the
    Registrant&#146;s Form&nbsp;10-K Annual Report for the year
    ended December&nbsp;31, 2000.*
    </FONT></TD>
</TR>

<TR>
    <TD align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">(j)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Domestic Deferred Compensation (Certificate of
    Extra Compensation) Plan (as amended)&nbsp;&#151; Incorporated
    herein by reference to Exhibit&nbsp;10(g) of the
    Registrant&#146;s Form&nbsp;10-K Annual Report for the year
    ended December&nbsp;28, 2003.*
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">16
</FONT>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="8%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="8%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="80%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Reg. S-K</FONT></B></TD>
    <TD></TD>
    <TD></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Exhibit Table</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Description</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Item No.</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">of Exhibit</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">(k)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Deferred Fee Plan for Non-Employee Directors (as
    amended) &#151; Incorporated herein by reference to
    Exhibit&nbsp;10(h) of the Registrant&#146;s Form&nbsp;10-K
    Annual Report for the year ended January&nbsp;2, 2005.*
    </FONT></TD>
</TR>

<TR>
    <TD align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">(l)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Executive Income Deferral Plan (as
    amended)&nbsp;&#151; Incorporated herein by reference to
    Exhibit&nbsp;10(i) of the Registrant&#146;s Form&nbsp;10-K
    Annual Report for the year ended December&nbsp;28, 2003.*
    </FONT></TD>
</TR>

<TR>
    <TD align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">(m)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Excess Savings Plan&nbsp;&#151; Incorporated
    herein by reference to Exhibit&nbsp;10(j) of the
    Registrant&#146;s Form&nbsp;10-K Annual Report for the year
    ended December&nbsp;29, 1996.*
    </FONT></TD>
</TR>

<TR>
    <TD align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">(n)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Supplemental Retirement Plan &#151; Incorporated
    herein by reference to Exhibit 10(h) of the Registrant&#146;s
    Form 10-K Annual Report for the year ended January&nbsp;3, 1993.*
    </FONT></TD>
</TR>

<TR>
    <TD align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">(o)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Executive Life Insurance Plan &#151; Incorporated
    herein by reference to Exhibit 10(i)&nbsp;of the
    Registrant&#146;s Form 10-K Annual Report for the year ended
    January&nbsp;3, 1993.*
    </FONT></TD>
</TR>

<TR>
    <TD align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">(p)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Stock Option Gain Deferral Plan&nbsp;&#151;
    Incorporated herein by reference to Exhibit&nbsp;10(m) of the
    Registrant&#146;s Form&nbsp;10-K Annual Report for the year
    ended January&nbsp;2, 2000.*
    </FONT></TD>
</TR>

<TR>
    <TD align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">(q)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Estate Preservation Plan&nbsp;&#151; Incorporated
    herein by reference to Exhibit&nbsp;10(n) of the
    Registrant&#146;s Form&nbsp;10-K Annual Report for the year
    ended January&nbsp;2, 2000.*
    </FONT></TD>
</TR>

<TR>
    <TD align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">(r)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Summary of employment arrangements for
    Michael&nbsp;J. Dormer&nbsp;&#151; Filed with this document.*
    </FONT></TD>
</TR>

<TR>
    <TD align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">(s)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Summary of compensation arrangements for Named
    Executive Officers and Directors &#151; Filed with this
    document.*
    </FONT></TD>
</TR>

<TR>
    <TD align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">12</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Statement of Computation of Ratio of Earnings to
    Fixed Charges &#151; Filed with this document.
    </FONT></TD>
</TR>

<TR>
    <TD align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">13</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;&nbsp;Pages 28 through 66 of the
    Company&#146;s Annual Report to Shareholders for fiscal year
    2005 (only those portions of the Annual Report incorporated by
    reference in this report are deemed &#147;filed&#148;) &#151;
    Filed with this document.
    </FONT></TD>
</TR>

<TR>
    <TD align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">21</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Subsidiaries &#151; Filed with this document.
    </FONT></TD>
</TR>

<TR>
    <TD align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">23</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Consent of Independent Registered Public
    Accounting Firm&nbsp;&#151; Filed with this document.
    </FONT></TD>
</TR>

<TR>
    <TD align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">31</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">(a)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Certification of Chief Executive Officer pursuant
    to Section&nbsp;302 of the Sarbanes-Oxley Act of
    2002&nbsp;&#151; Filed with this document.
    </FONT></TD>
</TR>

<TR>
    <TD align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">31</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">(b)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Certification of Chief Financial Officer pursuant
    to Section&nbsp;302 of the Sarbanes-Oxley Act of
    2002&nbsp;&#151; Filed with this document.
    </FONT></TD>
</TR>

<TR>
    <TD align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">32</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">(a)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Certification of Chief Executive Officer pursuant
    to Section&nbsp;906 of the Sarbanes-Oxley Act of
    2002&nbsp;&#151; Furnished with this document.
    </FONT></TD>
</TR>

<TR>
    <TD align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">32</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">(b)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Certification of Chief Financial Officer pursuant
    to Section&nbsp;906 of the Sarbanes-Oxley Act of
    2002&nbsp;&#151; Furnished with this document.
    </FONT></TD>
</TR>

<TR>
    <TD align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">99</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Cautionary Statement Pursuant to Private
    Securities Litigation Reform Act of 1995&nbsp;&#151; &#147;Safe
    Harbor&#148; for Forward-Looking Statements &#151; Filed with
    this document.
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left">
<HR size="1" width="18%" align="left" color="black" noshade>
</DIV>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="1%"></TD>
    <TD width="99%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">*&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Management contract or compensatory plan.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">A copy of any of the Exhibits listed above will
be provided without charge to any shareholder submitting a
written request specifying the desired exhibit(s) to the
Secretary at the principal executive offices of the Company.
</FONT>

<P align="center"><FONT size="2">17
</FONT>

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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.R
<SEQUENCE>2
<FILENAME>y17887exv10wr.htm
<DESCRIPTION>EX-10.R: SUMMARY OF EMPLOYMENT ARRANGEMENTS FOR MICHAEL J. DORMER
<TEXT>
<HTML>
<HEAD>
<TITLE>EX-10.R</TITLE>
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="right" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">EXHIBIT&#160;10(r)</FONT></B>
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Summary
    of Employment Arrangements for Michael J. Dormer</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    There are certain arrangements and benefits in place for
    Mr.&#160;Michael J. Dormer, Worldwide Chairman, Medical Devices,
    and a Member of the Executive Committee, arising from his prior
    employment as the Chief Operating Officer of DePuy, Inc. When
    Johnson&#160;&#38; Johnson acquired DePuy in 1998,
    Mr.&#160;Dormer was offered an employment agreement to replace
    his existing employment agreement with DePuy, Inc. In 2001,
    Mr.&#160;Dormer and the Company agreed to rescind his employment
    agreement when he was appointed to the Executive Committee and
    named Franchise Group Chairman for Medical Devices. Certain
    benefits and arrangements under Mr.&#160;Dormer&#146;s
    employment agreement were retained. The following arrangements
    and benefits were in place during 2005 and continue to be
    available to Mr.&#160;Dormer:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    If Mr.&#160;Dormer is terminated for reasons other than
    &#147;cause,&#148; he will receive severance pay equal to the
    greater of one year&#146;s compensation (based on the average of
    the previous two year&#146;s base salary and bonus) and the
    Company&#146;s severance pay policy.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Mr.&#160;Dormer&#146;s pension benefits will cover
    pre-acquisition service with DePuy, Inc.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Upon retirement or involuntary termination of employment, the
    Company will pay relocation costs associated with
    Mr.&#160;Dormer&#146;s relocation to the United Kingdom,
    pursuant to the Company&#146;s relocation policy. In the event
    that Mr.&#160;Dormer dies while residing in the United States
    during his employment, the Company will provide full relocation
    assistance for his family&#146;s relocation to the United
    Kingdom, including, managing the sale of his home in the United
    States.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The Company has funded a term life insurance policy for the
    benefit of Mr.&#160;Dormer&#146;s family to offset the negative
    estate tax implications should Mr.&#160;Dormer (or his spouse)
    die while residing in the United States during his employment by
    the Company.
</TD>
</TR>

</TABLE>

</DIV>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.S
<SEQUENCE>3
<FILENAME>y17887exv10ws.htm
<DESCRIPTION>EX-10.S: SUMMARY OF COMPENSATION ARRANGEMENTS
<TEXT>
<HTML>
<HEAD>
<TITLE>EX-10.S</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="right" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">EXHIBIT&#160;10(s)</FONT></B>
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Summary
    of Compensation Arrangements for<BR>
    Named Executive Officers and Directors</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Compensation
    Arrangements for Named Executive Officers</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Following is a description of the compensation arrangements that
    have been approved by the Compensation&#160;&#38; Benefits
    Committee of the Board of Directors of Johnson&#160;&#38;
    Johnson (the &#147;Compensation Committee&#148;) on
    February&#160;13, 2006 for the Company&#146;s Chief Executive
    Officer and the other four most highly compensated executive
    officers in 2005 (the &#147;Named Executive Officers&#148;).
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Annual
    Base Salary:</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Compensation Committee approved the following base salaries,
    effective February&#160;27, 2006, for the Named Executive
    Officers:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="80%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="87%">&nbsp;</TD>         <!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=02 type=lead -->
    <TD width="10%" align="right">&nbsp;</TD>   <!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=02 type=hang1 -->
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">William C. Weldon
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="left" valign="bottom">
    1,670,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Chairman/CEO
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>


<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">&nbsp;
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>

<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Robert J. Darretta
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="left" valign="bottom">
    1,030,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Vice Chairman/CFO
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">&nbsp;
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>

<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Christine A. Poon
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="left" valign="bottom">
975,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Vice Chairman/Worldwide Chairman,
    Medicines&#160;&#38; Nutritionals
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">&nbsp;
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>

<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Michael J. Dormer
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="left" valign="bottom">
735,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Worldwide Chairman, Medical Devices
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">&nbsp;
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>

<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Per A. Peterson
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="left" valign="bottom">
835,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Chairman, R&#38;D Pharmaceuticals
    Group
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Bonus:</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Compensation Committee has approved the following bonus
    payments for performance in 2005 (divided at the discretion of
    the Compensation Committee between cash and the fair market
    value of Common Stock awards on February&#160;17, 2006):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="80%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="10%">&nbsp;</TD>         <!-- colindex=01 type=maindata -->
    <TD width="10%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="25%">&nbsp;</TD>         <!-- colindex=02 type=maindata -->
    <TD width="55%">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Mr.&#160;Weldon
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $3,000,000
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Mr.&#160;Darretta
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $891,000
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Ms.&#160;Poon
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
$945,000
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Mr.&#160;Dormer
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
$940,500
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Dr.&#160;Peterson
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
$750,268
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Stock
    Option and Restricted Share Unit Grants:</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Compensation Committee approved the following stock option
    and Restricted Share Unit (&#147;RSU&#148;) grants under the
    Company&#146;s 2005 Long-Term Incentive Plan. The stock options
    were granted at an exercise price of $58.34, which was the fair
    market value of the Company&#146;s Common Stock on the date of
    grant. The options will become exercisable on February&#160;13,
    2009
</DIV>
<P align="center"><FONT style="font-size: 10pt">1</FONT>
</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    and expire on February&#160;12, 2016. The RSUs were granted at
    the fair market value of the Company&#146;s Common Stock on the
    date of grant. The RSUs will vest on February&#160;13, 2009,
    upon which for each RSU, the holder, if still employed by the
    Company on such date, will receive one share of the
    Company&#146;s Common Stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="80%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="10%">&nbsp;</TD>         <!-- colindex=01 type=maindata -->
    <TD width="6%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="30%">&nbsp;</TD>         <!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=03 type=gutter -->
    <TD width="5%">&nbsp;</TD>         <!-- colindex=03 type=maindata -->
    <TD width="48%">&nbsp;</TD>

</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Mr.&#160;Weldon
    </FONT></DIV></TD>
<TD>&nbsp;</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">452,520 stock options
    </FONT></TD>
<TD>&nbsp;</TD>
<TD nowrap align="left" valign="bottom">
    <FONT style="font-size: 10pt">37,710 RSUs
    </FONT></TD>
</TR>

<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Mr.&#160;Darretta
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">138,841 stock options
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <FONT style="font-size: 10pt">11,570 RSUs
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Ms.&#160;Poon
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">205,691 stock options
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <FONT style="font-size: 10pt">17,141 RSUs
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Mr.&#160;Dormer
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">128,557 stock options
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <FONT style="font-size: 10pt">10,713 RSUs
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Dr.&#160;Peterson
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">128,557 stock options
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">10,713 RSUs
    </FONT>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Long
    Term Incentive Plan Awards:</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Compensation Committee approved the following long-term
    incentive plan awards on February&#160;13, 2006 in recognition
    of performance during 2005 under the Company&#146;s Certificate
    of Extra Compensation (&#147;CEC&#148;) program. Awards are not
    paid out until retirement or other termination of employment. As
    of the end of fiscal year 2005, the CEC value per unit was
    $23.16. The value of the CEC units is preliminary and is subject
    to increase or decrease based on the performance of the Company.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="80%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="10%">&nbsp;</TD>         <!-- colindex=01 type=maindata -->
    <TD width="10%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="25%">&nbsp;</TD>         <!-- colindex=02 type=maindata -->
    <TD width="55%">&nbsp;</TD>

</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Mr.&#160;Weldon
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">150,000 CEC units
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Mr.&#160;Darretta
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">85,000 CEC units
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Ms.&#160;Poon
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">200,000 CEC units
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Mr.&#160;Dormer
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">80,000 CEC units
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Dr.&#160;Peterson
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">25,000 CEC units
    </FONT>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Compensation
    Arrangements for Non-Employee Directors</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each Non-Employee Director receives an annual fee of $85,000 for
    his or her services as director. In addition, directors receive
    $5,000 for service on a committee of the Board of Directors or
    $15,000 if chairperson of the committee. The Presiding Director
    is paid an annual fee of $10,000.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the 2005 Long-Term Incentive Plan, each Non-Employee
    Director receives non-retainer equity compensation each year in
    the form of restricted or deferred stock having a value of
    $100,000. Each Non-Employee Director received a grant of
    1,714&#160;shares of restricted stock, based upon the fair
    market value of the Common Stock of the Company on
    February&#160;13, 2006, for service on the Board in 2005, except
    for Mr.&#160;Charles Prince, who was elected to the Board on
    that date. Each director receives a one-time grant of
    1,000&#160;shares of Company Common Stock upon first becoming a
    member of the Board of Directors.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2
</DIV><!-- END LOGICAL PAGE -->
</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-12
<SEQUENCE>4
<FILENAME>y17887exv12.htm
<DESCRIPTION>EX-12: STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
<TEXT>
<HTML>
<HEAD>
<TITLE>EX-12</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<P align="right">
<B><FONT size="2">EXHIBIT&nbsp;12</FONT></B>

<P align="center">
<B><FONT size="2">JOHNSON &#38; JOHNSON AND
SUBSIDIARIES</FONT></B>

<P align="center">
<B><FONT size="2">STATEMENT OF COMPUTATION OF RATIO OF EARNINGS
TO FIXED CHARGES<SUP>(1)</SUP></FONT></B>

<DIV align="center">
<B><FONT size="2">(Dollars in Millions)</FONT></B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="30%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="19"></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="19" align="center" nowrap><B><FONT size="1">Fiscal Year Ended</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="19" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">January&nbsp;1,</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">January 2,</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">December&nbsp;28,</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">December 29,</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">December 30,</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2006</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2005</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2003</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Determination of Earnings:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Earnings Before Provision for Taxes on Income
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13,656</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">12,838</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10,308</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,291</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,898</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Fixed Charges
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">137</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">272</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">300</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">259</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">245</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Total Earnings as Defined
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13,793</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13,110</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10,608</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,550</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,143</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Fixed Charges and Other:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Rents
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">83</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">85</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">93</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">99</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">92</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Interest Expense Before Capitalization of Interest
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">165</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">323</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">315</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">258</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">248</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Total Fixed Charges
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">248</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">408</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">408</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">357</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">340</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Ratio of Earnings to Fixed Charges
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">55.62</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">32.13</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">26.00</FONT></TD>
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    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">26.75</FONT></TD>
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    <TD align="right" valign="bottom"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">23.95</FONT></TD>
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    <TD><SUP><FONT size="2">(1)</FONT></SUP><FONT size="2">&nbsp;</FONT></TD>
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    <FONT size="2">The ratio of earnings to fixed charges is
    computed by dividing the sum of earnings before provision for
    taxes on income and fixed charges by fixed charges. Fixed
    charges represent interest expense (before interest is
    capitalized), amortization of debt discount and an appropriate
    interest factor on operating leases.
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<DOCUMENT>
<TYPE>EX-13
<SEQUENCE>5
<FILENAME>y17887exv13.txt
<DESCRIPTION>EX-13: PAGES 28 THROUGH 66 OF THE ANNUAL REPORT TO SHAREHOLDERS
<TEXT>
<PAGE>
                                                                      Exhibit 13

MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL
CONDITION

ORGANIZATION AND BUSINESS SEGMENTS
DESCRIPTION OF THE COMPANY AND BUSINESS SEGMENTS
The Company and its subsidiaries have approximately 115,600 employees worldwide
engaged in the manufacture and sale of a broad range of products in the health
care field. The Company conducts business in virtually all countries of the
world and its primary focus has been on products related to human health and
well-being.
     The Company is organized into three business segments: Consumer,
Pharmaceutical, and Medical Devices and Diagnostics. The Consumer segment
manufactures and markets a broad range of products used in the baby and child
care, skin care, oral and wound care and women's health care fields, as well as
nutritional and over-the-counter pharmaceutical products. These products are
marketed principally to the general public and sold both to wholesalers and
directly to independent and chain retail outlets throughout the world. The
Pharmaceutical segment includes products in the following therapeutic areas:
anti-fungal, anti-infective, cardiovascular, contraceptive, dermatology,
gastrointestinal, hematology, immunology, neurology, oncology, pain management,
psychotropic (central nervous system) and urology areas. These products are
distributed directly to retailers, wholesalers and health care professionals for
prescription use by the general public. The Medical Devices and Diagnostics
segment includes a broad range of products used principally in the professional
fields by physicians, nurses, therapists, hospitals, diagnostic laboratories and
clinics. These products include Cordis' circulatory disease management products;
DePuy's orthopaedic joint reconstruction and spinal care products; Ethicon's
wound care and women's health products; Ethicon Endo-Surgery's minimally
invasive surgical products; LifeScan's blood glucose monitoring products;
Ortho-Clinical Diagnostics' professional diagnostic products and Vision Care's
disposable contact lenses.
     The Company's structure is based upon the principle of decentralized
management. The Executive Committee of Johnson & Johnson is the principal
management group responsible for the operations and allocation of the resources
of the Company. This Committee oversees and coordinates the activities of the
Consumer, Pharmaceutical and Medical Devices and Diagnostics business segments.
Each subsidiary within the business segments is, with some exceptions, managed
by citizens of the country where it is located.
     In all of its product lines, the Company competes with companies both large
and small, located throughout the world. Competition is strong in all product
lines without regard to the number and size of the competing companies involved.
Competition in research, involving the development and the improvement of new
and existing products and processes, is particularly significant. The
development of new and improved products is important to the Company's success
in all areas of its business. This also includes protecting the Company's
portfolio of intellectual property. The competitive environment requires
substantial investments in continuing research and multiple sales forces. In
addition, the development and maintenance of customer acceptance of the
Company's consumer products involves significant expenditures for advertising
and promotion.

MANAGEMENT'S OBJECTIVES

The Company's objective is to achieve superior levels of capital efficient
profitable growth. To accomplish this, the Company's management operates the
business consistent with certain strategic principles that have proven
successful over time. To this end, the Company participates in growth areas in
human health care and is committed to attaining leadership positions in these
growth segments through the development of innovative products and services.
New products introduced within the past five years accounted for over 33% of
2005 sales. In 2005, $6.3 billion, or 12.5% of sales were invested in research
and development, an increase of $1.1 billion over 2004. This significant
increase reflects management's commitment to the importance of on-going
development of new and differentiated products and services, and to sustain long
term growth.
     With more than 230 operating companies located in 57 countries, the Company
views its principle of decentralized management as an asset and fundamental to
the success of a broadly based business. It also fosters an entrepreneurial
spirit, combining the extensive resources of a large organization with the
ability to react quickly to local market changes and challenges.
     The  Company  is  committed  to  developing global business leaders who can
drive  growth  objectives. Businesses are managed for the long term in order to
sustain leadership positions and achieve growth that provides an enduring source
of  value  to  our  shareholders.
     Unifying the management team and the Company's dedicated employees in
achieving these objectives is the Johnson & Johnson Credo. The Credo provides a
common set of values and serves as a constant reminder of the Company's
responsibilities to its customers, employees, communities and shareholders. The
Company believes that these basic principles, along with its overall mission of
improving the quality of life for people everywhere, will enable Johnson &
Johnson to continue to be among the leaders in the health care industry.

RESULTS OF OPERATIONS
ANALYSIS OF CONSOLIDATED SALES
In  2005, worldwide sales increased 6.7% to $50.5 billion, compared to increases
of  13.1%  in  2004  and  15.3%  in 2003. These sales increases consisted of the
following:

<TABLE>
<CAPTION>
Sales increase due to:  2005   2004  2003
- -----------------------------------------
<S>                     <C>    <C>   <C>
Volume                   5.4%   8.7   9.4
Price                    0.6    1.0   1.3
Currency                 0.7    3.4   4.6
Total                    6.7%  13.1  15.3
</TABLE>

Sales by U.S. companies were $28.4 billion in 2005, $27.7 billion in 2004 and
$25.3 billion in 2003. This represents an increase of 2.2% in 2005, 9.9% in 2004
and 12.6% in 2003. Sales by international companies were $22.1 billion in 2005,
$19.6 billion in 2004 and $16.6 billion in 2003. This represents an increase of
13.1% in 2005, 18.0% in 2004 and 19.8% in 2003.


PAGE 28                                     JOHNSON & JOHNSON 2005 ANNUAL REPORT
<PAGE>


     The five-year compound annual growth rates for worldwide, U.S. and
international sales were 11.6%, 10.4% and 13.3%, respectively. The ten-year
compound annual growth rates for worldwide, U.S. and international sales were
10.5%, 12.1% and 8.9%, respectively.




     All international geographic regions experienced sales growth during 2005,
consisting of 9.3% in Europe, 19.2% in the Western Hemisphere (excluding the
U.S.) and 17.6% in the Asia-Pacific, Africa regions. These sales gains include a
positive impact of currency fluctuations between the U.S. dollar and foreign
currencies in Europe of 0.5%, in the Western Hemisphere (excluding the U.S.) of
9.2% and in the Asia-Pacific, Africa region of 0.8%.
     In 2005, the Company did not have a customer that represented 10% of total
revenues. In 2004, sales to Cardinal Distribution and McKesson HBOC accounted
for 10.2% and 10.0% of total revenues. In 2003, sales to McKesson HBOC accounted
for 10.5% of total revenues.
     2004 results benefited from the inclusion of a 53rd week. (See Note 1 for
Annual Closing Date details.) The Company estimated that the fiscal fourth
quarter growth rate in 2004 was enhanced by approximately 2% and the year by
approximately 0.5%. The net earnings impact of the additional week in 2004 was
negligible.




ANALYSIS OF SALES BY BUSINESS SEGMENTS
CONSUMER SEGMENT
Consumer segment sales in 2005 were $9.1 billion, an increase of 9.2%, over 2004
with operational growth accounting for 7.8% of the total growth and 1.4% due to
positive currency fluctuations. U.S. Consumer segment sales were $4.4 billion,
an increase of 4.3%. International sales were $4.7 billion, an increase of
14.2%, with 11.3% as a result of operations and 2.9% due to currency
fluctuations over 2004.
     Consumer segment sales growth in 2005 was attributable to strong sales
performance in the major franchises including Over-the-Counter (OTC)
Pharmaceuticals and Nutritionals products, Skin Care, Women's Health and Baby &
Kids Care. OTC franchise sales were $2.7 billion, an increase of 11.8% over
2004. Overall growth in this franchise primarily resulted from the rapid growth
of SPLENDA(R) No Calorie Sweetener in the tabletop category and adult and
pediatric analgesics. This sales growth was partially offset by the negative
impact of retail restrictions implemented on products containing
pseudoephedrine. This will continue to negatively impact the business until
products containing pseudoephedrine are reformulated.
     The Skin Care franchise sales in 2005 were $2.4 billion, representing a
12.2% increase over 2004. This was attributable to sales growth in RoC(R),
AVEENO(R), CLEAN & CLEAR(R) and NEUTROGENA(R) brand products. The Women's Health
franchise grew by 6.7% to $1.6 billion in 2005, with strong contributions from
the K-Y(R) and STAYFREE(R) product lines. The Baby & Kids Care franchise grew by
7.9% to $1.6 billion in 2005. Growth in this franchise was led by the success of
the JOHNSON'S(R) SOFTWASH(R) and SOFTLOTION(TM) product lines and
BabyCenter.com(R).

<TABLE>
<CAPTION>
MAJOR CONSUMER FRANCHISE SALES:                                   % Change
(Millions of Dollars)                 2005   2004   2003   '05 vs.'04   '04 vs. '03
- -----------------------------------  ------  -----  -----  -----------  ------------
<S>                                  <C>     <C>    <C>    <C>          <C>
OTC Pharmaceuticals & Nutritionals   $2,678  2,395  2,044        11.8%         17.2
Skin Care                             2,401  2,140  1,797        12.2          19.1
Women's Health                        1,568  1,470  1,369         6.7           7.4
Baby & Kids Care                      1,561  1,447  1,309         7.9          10.5
Other                                   888    881    912         0.8          (3.4)
                                     ------  -----  -----  -----------  ------------
Total                                $9,096  8,333  7,431         9.2%         12.1
                                     ======  =====  =====  ===========  ============
</TABLE>


MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL
CONDITION                                                                PAGE 29
<PAGE>
     Consumer segment sales in 2004 were $8.3 billion, an increase of 12.1% over
2003, with operational growth accounting for 8.8% of the total growth, and 3.3%
due to a positive currency impact. U.S. sales increased by 6.5% while
international sales increased by 18.7%, with 11.5% due to operational gains and
a positive currency impact of 7.2% over 2003. Consumer segment sales in 2003
were $7.4 billion, an increase of 13.2% over 2002, with 9.4% of the increase due
to operational growth and 3.8% due to a positive currency impact. U.S. sales
increased by 10.1% while international sales gains were 17.0%, with 8.6% due to
operational gains and a positive currency impact of 8.4%.

PHARMACEUTICAL SEGMENT

Pharmaceutical segment sales in 2005 were $22.3 billion, an increase of 0.9%
over 2004, with 0.4% of this change due to operational growth and the remaining
0.5% increase related to the positive impact of currency. U.S. Pharmaceutical
segment sales decreased 3.2% while international Pharmaceutical segment sales
increased 9.4%, which included 7.8% of operational growth and 1.6% related to
the positive impact of currency.
     Pharmaceutical segment sales in 2005 included a benefit from adjustments
related to previously estimated performance based rebate allowances and managed
care contracts. These adjustments were less than 1.0% of sales in both 2005 and
2004.
     Sales growth within the segment was led by strong performances from
RISPERDAL(R) (risperidone), REMICADE(R) (infliximab), TOPAMAX(R) (topiramate)
and LEVAQUIN(R) (levofloxacin). However, this growth was offset by generic
competition related to DURAGESIC(R) (fentanyl transdermal system), ULTRACET(R)
(tramadol hydrochloride/acetaminophen), SPORANOX(R) (itraconazole) and hormonal
contraceptives.
     A key driver of growth for the segment in 2005 was the continued success of
RISPERDAL(R) (risperidone), and RISPERDAL(R) CONSTA(R) (risperidone), a long
acting injection medication that treats the symptoms of schizophrenia. These
products achieved $3.6 billion in sales, an increase of 16.5% over the prior
year. Ongoing country approvals for the use of RISPERDAL(R) for additional
indications have been a key factor in product growth.
     PROCRIT(R) (Epoetin alfa) and EPREX(R) (Epoetin alfa) performance continued
to be adversely affected by competition. Combined, these two products had sales
of $3.3 billion in 2005, a decline of 7.4% as compared to 2004. Volume
associated with share loss to competitive products was the primary driver of the
decline.
     REMICADE(R) (infliximab), a biologic approved for the treatment of Crohn's
disease, ankylosing spondylitis, and use in the treatment of rheumatoid and
psoriatic arthritis experienced sales of $2.5 billion, with strong growth of
18.2% over the prior year. The U.S. FDA granted approval for REMICADE(R) to be
used in the treatment of psoriatic arthritis, during the fiscal second quarter
of 2005. REMICADE(R) received approval for the treatment of ulcerative colitis
by the FDA in the fiscal third quarter of 2005 and by the European Commission in
the fiscal first quarter of 2006. Additionally, the European Commission granted
approval for use in the treatment of severe plaque psoriasis during the fiscal
fourth quarter of 2005. These approvals contributed to strong growth of
REMICADE(R) in 2005.
     Sales of TOPAMAX(R) (topiramate), which has been approved for adjunctive
use in epilepsy, as well as for the prophylactic treatment of migraines,
accounted for $1.7 billion in sales, achieving strong growth of 19.1% over the
prior year. In June of 2005, TOPAMAX(R) was also approved by the FDA for use as
an initial monotherapy in the treatment of epilepsy.
     DURAGESIC(R) (fentanyl transdermal system) sales declined to $1.6 billion
in 2005, a 23.9% reduction over 2004, primarily driven by the negative impact of
generic competition in the U.S. beginning in January 2005. Additionally, generic
versions of DURAGESIC(R) have been launched in Europe. An authorized generic
version of DURAGESIC(R), being marketed for the Company in the U.S., was
launched in the fiscal first quarter of 2005.
     LEVAQUIN(R) (levofloxacin) and FLOXIN(R) (ofloxacin) achieved combined
sales of $1.5 billion in 2005, representing growth of 15.2% over the prior year,
benefiting from strong market growth. During the fiscal third quarter of 2005,
LEVAQUIN(R) obtained FDA approval for short course treatment of acute bacterial
sinusitis.
     The hormonal contraceptive franchise accounted for $1.1 billion in sales,
declining by 11.1% over the prior year. Reduced sales of ORTHO TRI-CYCLEN(R)
(norgestimate/ethinyl estradiol), resulting from generic competition, were
partially offset by strong growth in ORTHO TRI-CYCLEN(R) LO
(norgestimate/ethinyl estradiol), a low dose oral contraceptive. While there was
an overall sales increase in 2005 as compared to 2004 in ORTHO EVRA(R)
(norelgestromin/ethinyl estradiol), the first contraceptive patch approved by
the FDA, labeling changes and negative media coverage concerning product safety
are expected to impact sales in 2006.

<TABLE>
<CAPTION>
MAJOR PHARMACEUTICAL PRODUCT REVENUES:                                                              % Change
(Millions of Dollars)                                               2005     2004    2003   '05 vs. '04   '04 vs. '03
- ----------------------------------------------------------------  -------  ------  ------  ------------  ------------
<S>                                                               <C>      <C>     <C>     <C>           <C>
RISPERDAL(R) (risperidone)/RISPERDAL(R) CONSTA(R) (risperidone)   $ 3,552   3,050   2,512         16.5%         21.4
PROCRIT(R)/EPREX(R) (Epoetin alfa)                                  3,324   3,589   3,984         (7.4)         (9.9)
REMICADE(R) (infliximab)                                            2,535   2,145   1,729         18.2          24.1
TOPAMAX(R) (topiramate)                                             1,680   1,410   1,043         19.1          35.2
DURAGESIC(R) (fentanyl transdermal system)/Fentanyl Transdermal     1,585   2,083   1,631        (23.9)         27.7
LEVAQUIN(R)/FLOXIN(R) (levofloxacin/ofloxacin)                      1,492   1,296   1,149         15.2          12.8
ACIPHEX(R)/PARIET(R) (rabeprazole sodium)                           1,169   1,116     966          4.7          15.5
Hormonal Contraceptives                                             1,136   1,278   1,175        (11.1)          8.8
Other                                                               5,849   6,161   5,328         (5.1)         15.6
                                                                  -------  ------  ------  ------------  ------------
Total                                                             $22,322  22,128  19,517          0.9%         13.4
                                                                  =======  ======  ======  ============  ============
</TABLE>


PAGE 30                                     JOHNSON & JOHNSON 2005 ANNUAL REPORT
<PAGE>
     CONCERTA(R) (methylphenidate HCl), a product for the treatment of attention
deficit hyperactivity disorder, achieved sales of $0.8 billion in 2005,
representing an increase of 11.4% over 2004. At present, the FDA has not
approved any generic version that is substitutable for CONCERTA(R). Abbreviated
New Drug Applications (ANDAs) for generic versions of CONCERTA(R) are pending
and may be approved at any time. Recent negative publicity and FDA activities
concerning attention deficit hyperactivity products may impact CONCERTA(R)
sales in 2006.
     NATRECOR(R) (nesiritide), a product for the treatment of patients with
acutely decompensated congestive heart failure who have dyspnea at rest or with
minimal activity, has experienced a significant decline in demand due to recent
negative media coverage regarding a meta analysis of selected historical
clinical trials. The Company believes that there are no new data supporting the
conclusions of these medical and consumer publications and the currently
approved label for NATRECOR(R) reflects all available data to date. In response,
the Company assembled an expert panel to review the available data and clinical
development plans for the product and engaged in dialogue with the FDA. Both the
panel and the FDA support the continued appropriate use of NATRECOR(R).
     NATRECOR(R), a Scios Inc. product, was purchased by the Company in 2003 and
resulted in the recording of an intangible asset, which is being amortized over
15 years. The remaining unamortized intangible value associated with NATRECOR(R)
was $1.1 billion at the end of the fiscal fourth quarter of 2005, and based on
the current estimate of projected future cash flows, no adjustment to this
intangible asset is required.
     Pharmaceutical segment sales in 2004 included the benefit from adjustments
related to previously estimated performance-based rebate allowances in managed
care contracts. These adjustments were made based on a review of actual
performance levels as achieved by customers, compared to expected performance
levels. These favorable adjustments amounted to less than one percentage point
of the Pharmaceutical segment's operational growth in 2004. The vast majority of
the impact of this adjustment was in the hormonal contraceptive franchise.
     Pharmaceutical segment sales in 2004 were $22.1 billion, an increase of
13.4% over 2003, with 10.7% of this change due to operational growth and the
remaining 2.7% increase related to the positive impact of currency. U.S.
Pharmaceutical segment sales increased 12.7% while international Pharmaceutical
segment sales increased 14.8%, which included 6.4% growth operationally and 8.4%
related to the positive impact of currency. Pharmaceutical segment sales in 2003
were $19.5 billion, an increase of 13.8% over 2002, with 9.7% due to operational
growth and 4.1% due to positive currency fluctuations. U.S. sales increased by
11.3% while international sales grew 19.4% over 2002. This included operational
growth of 6.0% and a 13.4% positive impact from currency.

MEDICAL DEVICES AND DIAGNOSTICS SEGMENT

The Medical Devices and Diagnostics segment achieved sales of $19.1 billion in
2005, representing an increase over the prior year of 13.1%, with operational
growth of 12.5% and a positive impact from currency of 0.6%. U.S. sales
increased 10.6% while international sales increased 15.7%, with 14.5% from
operations and 1.2% from currency.
     Strong sales growth in the Medical Devices and Diagnostics segment was
achieved by multiple franchises.
     The Cordis franchise was a key contributor to the segment results with
reported sales of $4.0 billion, an increase of 24.0% over the prior year. The
primary growth driver of the Cordis franchise was the CYPHER(R)
Sirolimus-eluting Stent in both U.S. and international markets, with excellent
growth in Japan. Biosense Webster also contributed to the success of the Cordis
franchise, with continued solid double-digit growth. During the fiscal fourth
quarter of 2005, Biosense Webster received approval for the use of the
CELSIUS(TM) RMT diagnostic ablation steerable tip catheter.
     In April and July of 2004, the Cordis Cardiology Division of Cordis
Corporation received warning letters from the FDA regarding Good Manufacturing
Practice regulations and Good Clinical Practice regulations. These observations
followed post-approval site inspections completed in 2003 and early 2004,
including sites involved in the production of the CYPHER(R) Sirolimus-eluting
Stent. In response to the warning letters, Cordis has made improvements to its
quality systems and anticipates follow-up site inspections in the fiscal first
and second quarters of 2006.

<TABLE>
<CAPTION>
MAJOR MEDICAL DEVICES AND DIAGNOSTICS FRANCHISE SALES:
                                                                % Change
                                --------------------------------------------------
(Millions of Dollars)            2005     2004    2003   '05 vs.'04   '04 vs. '03
- ------------------------------  -------  ------  ------  -----------  ------------
<S>                             <C>      <C>     <C>     <C>          <C>
CORDIS(R)                       $ 3,982   3,213   2,707        24.0%         18.7
DEPUY(R)                          3,847   3,420   3,008        12.5          13.7
ETHICON(R)                        3,101   2,838   2,639         9.3           7.5
ETHICON ENDO-SURGERY(R)           3,096   2,849   2,587         8.7          10.1
LIFESCAN(R)                       1,909   1,701   1,426        12.3          19.3
Vision Care                       1,694   1,530   1,297        10.7          18.0
ORTHO-CLINICAL DIAGNOSTICS(R)     1,408   1,273   1,176        10.6           8.2
Other                                59      63      74        (6.3)        (14.9)
                                -------  ------  ------  -----------  ------------
Total                           $19,096  16,887  14,914        13.1%         13.2
                                =======  ======  ======  ===========  ============
</TABLE>


MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL
CONDITION                                                                PAGE 31
<PAGE>
     The DePuy franchise reported $3.8 billion in sales, which represents 12.5%
growth over the prior year. Double-digit growth in DePuy's orthopaedic joint
reconstruction unit led the increase for this franchise. Strong sales growth was
also achieved in DePuy's spine unit and Mitek sports medicine products.
     The Ethicon worldwide franchise achieved $3.1 billion of sales in 2005,
representing 9.3% growth over the prior year. Contributing to the strong results
was the continued growth of suture and mesh products, including VICRYL(R)
(polyglactin 910) Plus, an anti-bacterial coated suture, MULTIPASS(R) Needles
and PROCEED(R) tissue separating mesh.
     The Ethicon Endo-Surgery franchise reported $3.1 billion of sales in 2005,
representing 8.7% growth over the prior year. This growth was mainly driven by
endocutter sales that include products used in performing bariatric procedures
for the treatment of obesity, an important focus area for the franchise.
Double-digit sales increases in the Advanced Sterilization Products line were
also a key contributor to the overall sales growth of the franchise.
     The LifeScan franchise reported $1.9 billion of sales in 2005, a growth
rate of 12.3% over the prior year. The ONETOUCH(R) ULTRA(R) product line
achieved strong growth in 2005.
     The Vision Care franchise achieved $1.7 billion of sales in 2005, which was
a growth rate of 10.7% over the prior year, led by the continued success of
ACUVUE(R) ADVANCE(TM) Brand Contact Lenses with HYDRACLEAR(TM) and 1-DAY
ACUVUE(R). An additional contributor was ACUVUE(R) OASYS(TM) with
HYDRACLEAR(TM), for tired and dry eyes, which was launched in the fiscal third
quarter of 2005.
     The Ortho-Clinical Diagnostics franchise reported $1.4 billion of sales in
2005, representing 10.6% growth over the prior year. This growth was mainly
driven by the continued market penetration of automated blood typing products,
ongoing growth of the ECI product line and the success of the VITROS(R) 5, 1 FS
Clinical Chemistry system.
     The Medical Devices and Diagnostics segment achieved sales of $16.9 billion
in 2004, representing an increase over the prior year of 13.2%, with operational
growth of 9.0% and a positive impact from currency of 4.2%. U.S. sales increased
6.9% while international sales increased 20.7%, with 11.4% from operations and
9.3% from currency. In 2003, the Medical Devices and Diagnostics segment
achieved sales of $14.9 billion, representing an increase over the prior year of
18.5% with operational growth of 12.8% and a positive impact from currency of
5.7%. U.S. sales increased 15.9% while international sales increased 21.7%, with
9.0% from operations and 12.7% from currency.

ANALYSIS OF CONSOLIDATED EARNINGS BEFORE PROVISION FOR TAXES ON INCOME

Consolidated earnings before provision for taxes on income increased to $13.7
billion, or 6.4%, over the $12.8 billion earned in 2004. The increase in 2004
was 24.5% over the $10.3 billion in 2003. As a percent to sales, consolidated
earnings before provision for taxes on income in 2005 was 27.0%, representing a
decrease of 0.1% over the 27.1% in 2004. For 2004, the improvement was 2.5% over
the 24.6% in 2003, and the decline in 2003 was 1.0% over 2002. The sections that
follow highlight the significant components of the changes in consolidated
earnings before provision for taxes on income.

COST OF PRODUCTS SOLD AND SELLING, MARKETING AND ADMINISTRATIVE EXPENSES: Cost
of products sold and selling, marketing and administrative expenses as a percent
to sales were as follows:

<TABLE>
<CAPTION>
                             ------------------
% of Sales                   2005   2004   2003
- ---------------------------  -----  -----  ----
<S>                          <C>    <C>    <C>
Cost of products sold        27.6%  28.4   29.1
Percent increase/(decrease)
  over the prior year        (0.8)  (0.7)   0.3
Selling, marketing and
  administrative expenses    33.4%  33.5   33.7
Percent increase/(decrease)
  over the prior year        (0.1)  (0.2)     -
                             -----
</TABLE>

In 2005, there was a decrease in the percent to sales of cost of products sold.
This was due to lower manufacturing costs primarily related to the CYPHER(R)
Sirolimus-eluting Stent, as well as ongoing cost containment activity across the
organization, partially offset by the negative impact of pharmaceutical product
mix. There was also a decrease in the percent to sales of selling, marketing and
administrative expenses. This was due to cost containment initiatives in the
Pharmaceutical segment partially offset by increases in investment spending in
the Medical Devices and Diagnostics segment.
     In 2004, there was a decrease in the percent to sales of cost of products
sold. This was due to favorable mix, as well as cost improvement initiatives.
There was also a decrease in the percent to sales of selling, marketing and
administrative expenses. This was due to the Company's focus on managing
expenses, partially offset by an increase in investment spending across a number
of businesses focused on driving future growth. In 2003, there was no change in
the percent to sales of selling, marketing and administrative expenses and an
increase in the percent to sales of cost of products sold. This was due to the
changes in the mix of products with varying cost structures, as well as the cost
of the retirement enhancement program of $95 million expensed in the fiscal
fourth quarter of 2003.

RESEARCH AND DEVELOPMENT: Research activities represent a significant part of
the Company's business. These expenditures relate to the development of new
products, improvement of existing products, technical support of products and
compliance with governmental regulations for the protection of consumers and
patients. Worldwide costs of research activities, excluding in process research
and development charges, were as follows:

<TABLE>
<CAPTION>
(Millions of Dollars)                   2005    2004   2003
                                       -------  -----  -----
<S>                                    <C>      <C>    <C>
Research expense                       $6,312   5,203  4,684
Percent increase over the
  prior year                             21.3%   11.1   18.4
Percent of sales                         12.5%   11.0   11.2
</TABLE>

Research and development expense as a percent of sales for the Pharmaceutical
segment was 19.9% for 2005, 16.4% for 2004 and 16.4% for 2003. Combined the
Consumer and Medical Devices and Diagnostics segments averaged 6.6%, 6.2% and
6.7% in 2005, 2004 and 2003, respectively.


PAGE 32                                     JOHNSON & JOHNSON 2005 ANNUAL REPORT
<PAGE>
     Research activities accelerated in the Pharmaceutical segment, increasing
to $4.4 billion, or 22.3%, over 2004. The compound annual growth rate was
approximately 16.4% for the five-year period since 2000.
     The increased investment in research and development in all segments
demonstrates the Company's focus on knowledge based products, and reflects a
significant number of projects in late stage development.

IN-PROCESS RESEARCH AND DEVELOPMENT: In 2005, the Company recorded in-process
research and development (IPR&D) charges of $362 million before tax related to
the acquisitions of TransForm Pharmaceuticals, Inc., Closure Medical
Corporation, Peninsula Pharmaceuticals, Inc., and the international commercial
rights to certain patents and know-how in the field of sedation and analgesia
from Scott Lab, Inc. TransForm Pharmaceuticals, Inc., a company specializing in
the discovery of superior formulations and novel crystalline forms of drug
molecules, accounted for $50 million before tax of the IPR&D charges and was
included in the operating profit of the Pharmaceutical segment. Closure Medical
Corporation, a company with expertise and intellectual property in the
biosurgicals market, accounted for $51 million before tax of the IPR&D charges
and was included in the operating profit of the Medical Devices and Diagnostics
segment. Peninsula Pharmaceuticals, Inc., a biopharmaceutical company focused on
developing and commercializing antibiotics to treat life-threatening infections,
accounted for $252 million before tax of the IPR&D charges and was included in
the operating profit of the Pharmaceutical segment. The $9 million before tax
IPR&D charge related to Scott Lab, Inc. referred to above was included in the
operating profit of the Medical Devices and Diagnostics segment.
     In 2004, the Company recorded IPR&D charges of $18 million before tax as a
result of the acquisition of U.S. commercial rights to certain patents and
know-how in the field of sedation and analgesia from Scott Lab, Inc. This charge
was included in the operating profit of the Medical Devices and Diagnostics
segment.
     In 2003, the Company recorded IPR&D charges of $918 million before tax
related to the acquisitions of Scios Inc., Link Spine Group, Inc., certain
assets of Orquest, Inc. and 3-Dimensional Pharmaceuticals, Inc. Scios Inc. is a
biopharmaceutical company with a marketed product for cardiovascular disease and
research projects focused on autoimmune diseases. The acquisition of Scios Inc.
accounted for $730 million before tax of the IPR&D charges and was included in
the operating profit of the Pharmaceutical segment. Link Spine Group, Inc. was
acquired to provide the Company with exclusive worldwide rights to the
CHARITE(TM) Artificial Disc for the treatment of spine disorders. The
acquisition of Link Spine Group, Inc. accounted for $170 million before tax of
the IPR&D charges and was included in the operating profit of the Medical
Devices and Diagnostics segment. Orquest, Inc. is a biotechnology company
focused on developing biologically-based implants for orthopaedic spine surgery.
The acquisition of certain assets of Orquest, Inc. accounted for $11 million
before tax of the IPR&D charges and was included in the operating profit of the
Medical Devices and Diagnostics segment. 3-Dimensional Pharmaceuticals, Inc. is
a company with a technology platform focused on the discovery and development of
potential new drugs in early stage development for inflammation. The acquisition
of 3-Dimensional Pharmaceuticals, Inc. accounted for $7 million before tax of
the IPR&D charges and was included in the operating profit of the Pharmaceutical
segment.

OTHER (INCOME) EXPENSE, NET: Other (income) expense includes gains and losses
related to the sale and write-down of certain investments in equity securities
held by Johnson & Johnson Development Corporation, gains and losses on the
disposal of property, plant and equipment, currency gains and losses, minority
interests, litigation settlement (income) expense and royalty income. The change
in net other (income) expense from 2004 to 2005 was an increase in income of
$229 million.
     For 2005, the other income balance of $214 million included royalty income
partially offset by several expense items, none of which were individually
significant.
     For 2004, the other expense balance of $15 million included several expense
items, none of which were individually significant, partially offset by royalty
income.
     In 2003, other income of $385 million included a favorable ruling from a
stent patent settlement of $230 million. This amount was received during the
fourth quarter of 2003 and was included in the Medical Devices and Diagnostics
segment operating profit. Also included in the Medical Devices and Diagnostics
segment operating profit was the gain on the sale of various product lines that
were no longer compatible with this segment's strategic goals. Other income for
2003 also included the recovery of a $40 million loan, previously written off,
included in the Pharmaceutical segment operating profit.

OPERATING PROFIT BY SEGMENT
Operating profits by segment of business were as follows:

<TABLE>
<CAPTION>
                                               Percent of
                                             Segment Sales
                        ------------------------------------
(Millions of Dollars)     2005     2004      2005     2004
- ----------------------  --------  -------  --------  -------
<S>                     <C>       <C>      <C>       <C>
Consumer                $  1,667    1,514     18.3%     18.2
Pharmaceutical             6,610    7,608     29.6      34.4
Med Devices and Diag       5,418    4,091     28.4      24.2
                        --------  -------  --------  -------
Segments total            13,695   13,213     27.1      27.9
Less: Expenses not
  allocated to
  segments(1)                 39      375
                        --------  -------  --------  -------
Earnings before
  provision for taxes
  on income             $ 13,656   12,838     27.0%     27.1
                        ========  =======  ========  =======
</TABLE>

(1)  Amounts not allocated to segments include interest (income)/expense,
     minority interest, and general corporate (income)/expense.


MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL
CONDITION                                                                PAGE 33
<PAGE>
CONSUMER SEGMENT: Consumer segment operating profit in 2005 increased 10.1% over
the prior year. As a percent to sales, 2005 increased slightly to 18.3%, despite
increases in investment spending in advertising and research and development.
Consumer segment operating profit in 2004 increased 8.7% over the prior year. As
a percent to sales, 2004 experienced a decrease of 0.5% from 2003, primarily due
to additional investment in consumer promotions and advertising in the
Over-the-Counter Pharmaceuticals and Nutritionals franchise.

PHARMACEUTICAL SEGMENT: In 2005, Pharmaceutical segment operating profit
decreased 13.1%, and as a percent to sales declined 4.8% from 2004 to 29.6%.
This change was primarily due to increased investment in research and
development spending, as well as the impact of $302 million of IPR&D expenses in
2005. In 2004, Pharmaceutical segment operating profit increased 29.0% and
reflected an operating profit as a percent to sales improvement of 4.2% over
2003 to 34.4%. This change was primarily due to the impact of $737 million of
IPR&D expenses in 2003.

MEDICAL DEVICES AND DIAGNOSTICS SEGMENT: In 2005, the Medical Devices and
Diagnostics segment operating profit increased 32.4%, and as a percent to sales
increased 4.2% from 2004 to 28.4%. This increase was driven by improved gross
margins due to cost reduction programs and product mix, primarily related to the
CYPHER(R) Sirolimus-eluting Stent. This was partially offset by an increased
investment in research and development spending. In 2004, the Medical Devices
and Diagnostics segment operating profit increased 21.4%. The increase over the
prior year was achieved through improved gross margins, resulting from cost
reduction programs and product mix, and the impact of $181 million of IPR&D
expenses related to acquisitions in 2003.

INTEREST (INCOME) EXPENSE: Interest income in 2005 increased by $292 million due
primarily to higher rates of interest, as well as a higher average cash balance.
The cash balance, including current marketable securities, was $16.1 billion at
the end of 2005 and averaged $14.3 billion, as compared to the $11.3 billion
average cash balance in 2004.
     Interest expense in 2005 decreased as compared to 2004 due in part to a
decrease in the average debt balance, from $3.5 billion in 2004 to $2.6 billion
in 2005.
     Interest  income in 2004 increased by $18 million due primarily to a higher
cash balance. The cash and marketable securities combined balance at the end of
2004 was $12.9 billion and averaged $11.3 billion, which is significantly higher
than the $8.6 billion average cash balance in 2003.
     Interest expense in 2004 decreased by $20 million as compared to 2003
primarily due to a decrease in the average debt balance, from $5.0 billion in
2003 to $3.5 billion in 2004.

PROVISION FOR TAXES ON INCOME: The worldwide effective income tax rate was 23.8%
in 2005, 33.7% in 2004 and 30.2% in 2003. The decrease in the tax rate was
attributable to a tax benefit of $225 million, recorded in 2005, related to a
technical correction associated with the American Jobs Creation Act of 2004.
Also contributing to the decrease in the 2005 tax rate was the increase in
taxable income in lower tax jurisdictions relative to taxable income in higher
tax jurisdictions, as a result of increased expenditures in higher tax
jurisdictions and a shift in sales mix. These benefits were partially offset by
non-deductible IPR&D charges. The increase in the effective tax rate in 2004 was
primarily due to the $789 million tax cost on the intended repatriation of
undistributed international earnings associated with the American Jobs Creation
Act of 2004, which added 6.1% to the effective income tax rate.

LIQUIDITY AND CAPITAL RESOURCES
CASH FLOWS
Cash generated from operations and selected borrowings provide the major
sources of funds for the growth of the business, including working capital,
capital expenditures and acquisitions. Other uses of cash include share
repurchases, dividends and debt repayments.
     In 2005, cash flow from operations was $11.9 billion, an increase of $0.7
billion over 2004. The increase in cash generated from operations was a result
of a net income increase of $2.2 billion, net of the non-cash impact of IPR&D
charges. A $1.0 billion decrease in other current and non-current assets also
contributed to this increase. This was partially offset by a $1.5 billion
decrease in accounts payable and accrued liabilities. Additionally, cash
payments of approximately $0.5 billion were made for previously accrued taxes on
the repatriation of undistributed international earnings in accordance with the
American Jobs Creation Act of 2004. There was also an increase of approximately
$0.2 billion in pension funding in 2005 as compared to 2004.
     Net cash used for investing activities decreased by $2.1 billion in 2005
due to a $3.1 billion net increase in the sales of investments. This was
partially offset by a $0.5 billion increase in capital expenditures and a $0.4
billion increase in acquisition activity. For a more detailed discussion on
mergers and acquisitions, see Note 17.
     Net cash used for financing activities decreased by $0.6 billion in 2005
due to a net issuance of debt partially offset by an increase in dividends and
increased levels of common stock repurchases.
     Cash and current marketable securities were $16.1 billion at the end of
2005 as compared with $12.9 billion at the end of 2004.
     Cash generated from operations amounted to $11.1 billion in 2004, which was
$0.5 billion more than the cash generated from operations in 2003 of $10.6
billion. The major factor contributing to the increase was a net income increase
of $0.4 billion, net of the non-cash impact of IPR&D charges.


PAGE 34                                     JOHNSON & JOHNSON 2005 ANNUAL REPORT
<PAGE>
FINANCING AND MARKET RISK

The Company uses financial instruments to manage the impact of foreign exchange
rate changes on cash flows. Accordingly, the Company enters into forward foreign
exchange contracts to protect the value of existing foreign currency assets and
liabilities and to hedge future foreign currency product costs. Gains or losses
on these contracts are offset by the gains or losses on the underlying
transactions. A 10% appreciation of the U.S. Dollar from the January 1, 2006
market rates would increase the unrealized value of the Company's forward
contracts by $267 million. Conversely, a 10% depreciation of the U.S. Dollar
from the January 1, 2006 market rates would decrease the unrealized value of the
Company's forward contracts by $326 million. In either scenario, the gain or
loss on the forward contract would be offset by the change in value of the
forecasted transaction, and therefore, would have no impact on future earnings
and cash flows.
     The Company hedges the exposure to fluctuations in currency exchange rates,
and the effect on certain assets and liabilities in foreign currency, by
entering into currency swap contracts. A 1% change in the spread between U.S.
and foreign interest rates on the Company's interest rate sensitive financial
instruments would either increase or decrease the unrealized value of the
Company's swap contracts by approximately $60 million. In either scenario, at
maturity, the gain or loss on the swap contract would be offset by the gain or
loss on the underlying transaction and therefore would have no impact on future
earnings or cash flows.
     The Company does not use financial instruments for trading or speculative
purposes. Further, the Company has a policy of only entering into contracts with
parties that have at least an "A" (or equivalent) credit rating. The
counterparties to these contracts are major financial institutions and there is
no significant concentration of exposure with any one counterparty. Management
believes the risk of loss is remote.
     Total unused credit available to the Company approximates $3.6 billion,
including $1.5 billion of credit commitments, of which $0.75 billion expire
September 28, 2006 and $0.75 billion expire September 29, 2010. Also included
are $0.8 billion of uncommitted lines with various banks worldwide that expire
during 2006.
     Total borrowings at the end of 2005 and 2004 were $2.7 billion and $2.8
billion, respectively. In 2005, net cash (cash and current marketable
securities, net of debt) was $13.5 billion compared to net cash of $10.0 billion
in 2004. Total debt represented 6.6% of total capital (shareholders' equity and
total debt) in 2005 and 8.2% of total capital in 2004. Shareholders' equity per
share at the end of 2005 was $12.73 compared with $10.71 at year-end 2004, an
increase of 18.9%.
     On August 19, 2005, Scios Inc. exercised its right to redeem all of its
outstanding $150 million original principal amount of 5.50% Convertible
Subordinated Notes due in 2009. The redemption price was 103.143% of the
principal amount or $1,031.43 per $1,000 principal amount of Debentures, with
accrued interest to, but excluding, the date of redemption.
     For the period ended January 1, 2006, there were no material cash
commitments. Johnson & Johnson continues to be one of a few industrial companies
with a Triple A credit rating. A summary of borrowings can be found in Note 6.

LONG-TERM CONTRACTUAL OBLIGATIONS AND COMMITMENTS
The Company has long-term contractual obligations, primarily lease, debt
obligations and unfunded retirement plans, with no other significant
obligations. To satisfy these obligations, the Company will use cash from
operations. The following table summarizes the Company's contractual obligations
and their aggregate maturities as of January 1, 2006 (see Notes 4, 6 and 13 for
further details):

<TABLE>
<CAPTION>
                                        Long-Term    Unfunded
                        Operating            Debt  Retirement
(Millions of Dollars)      Leases  Obligations(1)       Plans  Total
- ---------------------  ----------  --------------  ----------  -----
<S>                    <C>         <C>             <C>         <C>
2006                   $      162              12          37    211
2007                          142              17          40    199
2008                          119               8          41    168
2009                          103             208          44    355
2010                           88               9          46    143
After 2010                    151           1,776         267  2,194
                       ----------  --------------  ----------  -----
Total                  $      765           2,030         475  3,270
                       ==========  ==============  ==========  =====
</TABLE>

(1) Amounts do not include interest expense.

DIVIDENDS
The Company increased its dividend in 2005 for the 43rd consecutive year. Cash
dividends paid were $1.275 per share in 2005, compared with dividends of $1.095
per share in 2004 and $0.925 per share in 2003. The dividends were distributed
as follows:

<TABLE>
<CAPTION>
                 2005   2004   2003
- --------------  ------  -----  -----
<S>             <C>     <C>    <C>
First quarter   $0.285  0.240  0.205
Second quarter   0.330  0.285  0.240
Third quarter    0.330  0.285  0.240
Fourth quarter   0.330  0.285  0.240
                ------  -----  -----
Total           $1.275  1.095  0.925
                ======  =====  =====
</TABLE>

On January 4, 2006, the Board of Directors declared a regular cash dividend of
$0.33 per share, payable on March 14, 2006, to shareholders of record as of
February 28, 2006. The Company expects to continue the practice of paying
regular cash dividends.


MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL
CONDITION                                                                PAGE 35
<PAGE>
OTHER INFORMATION
CRITICAL ACCOUNTING POLICIES AND ESTIMATES
Management's discussion and analysis of results of operations and financial
condition are based on the Company's consolidated financial statements that have
been prepared in accordance with accounting principles generally accepted in the
U.S. The preparation of these financial statements requires that management make
estimates and assumptions that affect the amounts reported for revenues,
expenses, assets, liabilities and other related disclosures. Actual results may
or may not differ from these estimates. The Company believes that the
understanding of certain key accounting policies and estimates are essential in
achieving more insight into the Company's operating results and financial
condition. These key accounting policies include revenue recognition, income
taxes, legal and self insurance contingencies, valuation of long-lived assets
and assumptions used to determine the amounts recorded for pensions and other
employee benefit plans and accounting for stock options.

REVENUE RECOGNITION: The Company recognizes revenue from product sales when
goods are shipped or delivered and title and risk of loss pass to the customer.
Provisions for certain rebates, sales incentives, trade promotions, coupons,
product returns and discounts to customers are accounted for as reductions in
sales in the same period the related sales are recorded.
     Product discounts granted are based on the terms of arrangements with
direct, indirect and other market participants, as well as market conditions,
including prices charged by competitors. Rebates, the largest being the Medicaid
rebate provision, are estimated based on sales terms, historical experience,
trend analysis and projected market conditions in the various markets served.
The Company evaluates market conditions for products or groups of products
primarily through the analysis of wholesaler and other third party sell-through
and market research data, as well as internally generated information.
     Sales returns are generally estimated and recorded based
on historical sales and returns information. Products that exhibit unusual sales
or return patterns due to dating, competition or other marketing matters are
specifically investigated and analyzed as part of the accounting for sales
return accruals.
     The Company also earns service revenue for co-promotion of certain
products. For all years presented, service revenues were less than 2% of total
revenues and are included in sales to customers.

INCOME TAXES: Income taxes are recorded based on amounts refundable or payable
for the current year and include the results of any difference between U.S. GAAP
accounting and U.S. tax reporting that are recorded as deferred tax assets or
liabilities. The Company estimates deferred tax assets and liabilities based on
current tax regulations and rates. Changes in tax laws and rates may affect
recorded deferred tax assets and liabilities in the future. Management believes
that changes in these estimates would not result in a material effect on the
Company's results of operations, cash flows or financial position.
     In 2005, the Company repatriated the previously disclosed $10.8 billion of
undistributed international earnings in accordance with the American Jobs
Creation Act of 2004 (AJCA), and recorded a tax charge of $789 million during
the fiscal fourth quarter of 2004. During the fiscal second quarter of 2005, the
Company recorded a tax benefit of $225 million, due to the reversal of the tax
liability previously recorded during the fiscal fourth quarter of 2004,
associated with a technical correction made to the AJCA in May 2005. At January
1, 2006 and January 2, 2005, the cumulative amount of undistributed
international earnings were approximately $12.0 billion and $18.6 billion,
respectively. The Company intends to continue to reinvest its undistributed
international earnings to expand its international operations; therefore, no
U.S. tax expense has been recorded to cover the undistributed portion not
intended for repatriation.

LEGAL AND SELF INSURANCE CONTINGENCIES: The Company records accruals for various
contingencies including legal proceedings and product liability cases as these
arise in the normal course of business. The accruals are based on management's
judgment as to the probability of losses, opinions of legal counsel and, where
applicable, actuarially determined estimates. Additionally, the Company records
insurance receivable amounts from third party insurers when recovery is
probable. As appropriate, reserves against these receivables are recorded for
estimated amounts that may not be collected from third party insurers.

LONG-LIVED AND INTANGIBLE ASSETS: The Company assesses changes in economic
conditions and makes assumptions regarding estimated future cash flows in
evaluating the value of the Company's property, plant and equipment, goodwill
and intangible assets. As these assumptions and estimates may change over time,
it may or may not be necessary for the Company to record impairment charges. In
fiscal years 2005, 2004 and 2003, certain tangible and intangible assets were
written down to fair value with the resulting charge recorded in cost of
products sold, which was insignificant.

EMPLOYEE BENEFIT PLANS: The Company sponsors various retirement and pension
plans, including defined benefit, defined contribution and termination indemnity
plans, that cover most employees worldwide. These plans are based on assumptions
for the discount rate, expected return on plan assets, expected salary increases
and health care cost trend rates. See Note 13 for further detail on these rates
and the effect a rate change would have on the Company's results of operations.


PAGE 36                                     JOHNSON & JOHNSON 2005 ANNUAL REPORT
<PAGE>
STOCK OPTIONS: The Company has elected to use Accounting Principles Board
Opinion No. 25, Accounting for Stock Issued to Employees (APB 25), that does not
require compensation costs related to stock options to be charged against net
income, as all options granted under the various stock options plans had an
exercise price equal to the market value of the underlying common stock at grant
date. Statement of Financial Accounting Standard (SFAS) No. 148 Accounting for
Stock-Based Compensation-Transition and Disclosure-an amendment of FASB
Statement No. 123, requires pro forma disclosure of net income and earnings per
share determined as if the fair value method of accounting for stock options had
been applied in measuring compensation cost. See Notes 1 and 10 for further
information regarding stock options.

NEW ACCOUNTING STANDARDS

In December 2004, the FASB issued SFAS No. 123(R), Share Based Payment. This
statement establishes standards for the accounting for transactions in which an
entity exchanges its equity instruments for goods and services. It focuses
primarily on accounting for transactions in which an entity obtains employee
services in share-based payment transactions (such as employee stock options and
restricted stock units). The statement requires the measurement of the cost of
employee services received in exchange for an award of equity instruments (such
as employee stock options and restricted stock units) at fair value on the grant
date. That cost will be recognized over the period during which an employee is
required to provide services in exchange for the award (the requisite service
period). On April 14, 2005 the SEC approved a new rule that delayed the
effective date of SFAS No. 123(R) for annual, rather than interim, periods that
begin after June 15, 2005. As a result, the Company will adopt this statement in
the fiscal first quarter of 2006.
     Upon adoption of this standard, the Company currently intends to apply the
modified retrospective transition method. Previously reported financial
statements will be restated to reflect SFAS No. 123 disclosure amounts. As
required by SFAS No. 148, Accounting for Stock Based Compensation-Transition
and Disclosure-an amendment of FASB Statement No. 123, the Company has
disclosed the net income and earnings per share effect had the Company applied
the fair value recognition provision of SFAS No. 123. The disclosure impact in
2005 and 2004 was compensation expense, net of tax, of $351 million and $329
million and earnings per share of $0.12 and $0.11, respectively.
     The Company will implement SFAS 151, Inventory Costs, an amendment of ARB
No. 43 in the fiscal first quarter of 2006. The Company believes the adoption of
this statement will not have a material effect on its results of operations,
cash flows or financial position.
     The Company implemented FIN 47, Accounting for Conditional Asset Retirement
Obligations-an interpretation of FASB Statement No. 143, during the fiscal
fourth quarter of 2005. The implementation of this Standard did not have a
material effect on the Company's results of operations, cash flows or financial
position.
     The Company implemented SFAS 153, Exchanges of Non-monetary Assets, an
amendment of APB 29 during the fiscal third quarter of 2005, which did not have
a material effect on its results of operations, cash flows or financial
position.
     The following accounting pronouncements became effective in 2004 and did
not have a material impact on the Company's results of operations, cash flows or
financial position.
- -    EITF Issue 02-14: Whether an Investor should apply the Equity Method of
     Accounting to Investments other than Common Stock.
- -    EITF Issue 04-1: Accounting for Preexisting Relationships between the
     Parties to a Business Combination.
     The following accounting pronouncements became effective in 2003 and did
not have a material impact on the Company's results of operations, cash flows or
financial position.
- -    FSP FAS No. 106-1: Accounting and Disclosure Requirements Related to the
     Medicare Prescription Drug, Improvement and Modernization Act of 2003.
- -    SFAS No. 149: Amendment of Statement 133 on Derivative Instruments and
     Hedging Activities.
- -    FIN 46 and FIN 46(R): Consolidation of Variable Interest Entities - an
     interpretation of ARB No. 51.

ECONOMIC AND MARKET FACTORS
Johnson & Johnson is aware that its products are used in an environment where,
for more than a decade, policymakers, consumers and businesses have expressed
concerns about the rising cost of health care. In response to these concerns,
Johnson & Johnson has a long standing policy of pricing products responsibly.
For the period 1995-2005, in the U.S., the weighted average compound annual
growth rate of Johnson & Johnson net price increases for health care products
(prescription and over-the-counter drugs, hospital and professional products)
was below the U.S. Consumer Price Index (CPI).
     Inflation rates, even though moderate in many parts of the world during
2005, continue to have an effect on worldwide economies and, consequently, on
the way companies operate. In the face of increasing costs, the Company strives
to maintain its profit margins through cost reduction programs, productivity
improvements and periodic price increases. The Company faces various worldwide
health care changes that may result in pricing pressures that include health
care cost containment and government legislation relating to sales, promotions
and reimbursement.


MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL
CONDITION                                                                PAGE 37
<PAGE>
     The Company also operates in an environment which has become increasingly
hostile to intellectual property rights. Generic drug firms have filed
Abbreviated New Drug Applications seeking to market generic forms of most of the
Company's key pharmaceutical products, prior to expiration of the applicable
patents covering those products. In the event the Company is not successful in
defending the patent claims challenged in Abbreviated New Drug Application
filings, the generic firms will then introduce generic versions of the product
at issue, resulting in the potential for substantial market share and revenue
losses for that product. For further information see the discussion on
"Litigation Against Filers of Abbreviated New Drug Applications" in Note 18.

LEGAL PROCEEDINGS

The Company is involved in numerous product liability cases in the U.S., many of
which concern adverse reactions to drugs and medical devices. The damages
claimed are substantial, and while the Company is confident of the adequacy of
the warnings and instructions for use which accompany such products, it is not
feasible to predict the ultimate outcome of litigation. However, the Company
believes that if any liability results from such cases, it will be substantially
covered by existing amounts accrued in the Company's balance sheet, and where
available by third-party product liability insurance.
     The Company is also involved in a number of patent, trademark and other
lawsuits incidental to its business. The ultimate legal and financial liability
of the Company in respect to all claims, lawsuits and proceedings referred to
above cannot be estimated with any certainty. However, in the Company's opinion,
based on its examination of these matters, its experience to date and
discussions with counsel, the ultimate outcome of legal proceedings, net of
liabilities already accrued in the Company's balance sheet, is not expected to
have a material adverse effect on the Company's financial position, although the
resolution in any reporting period of one or more of these matters could have a
significant impact on the Company's results of operations and cash flows for
that period.
     See Note 18 for further information regarding legal proceedings.

COMMON STOCK MARKET PRICES

The  Company's  common  stock is listed on the New York Stock Exchange under the
symbol JNJ. The composite market price ranges for Johnson & Johnson common stock
during  2005  and 2004 were:

<TABLE>
<CAPTION>
                         2005                  2004
                ---------------------  --------------------
                 High            Low    High           Low
- --------------  ---------------------  --------------------
<S>             <C>     <C>     <C>    <C>    <C>     <C>
First quarter   $68.68          61.20  54.90          49.25
Second quarter   69.99          64.43  57.28          49.90
Third quarter    65.35          61.65  58.80          54.37
Fourth quarter   64.60          59.76  64.25          54.81
Year-end close          $60.10                63.42
                ---------------------
</TABLE>

CAUTIONARY FACTORS THAT MAY AFFECT FUTURE RESULTS
This Annual Report contains forward-looking statements. Forward-looking
statements do not relate strictly to historical or current facts and anticipate
results based on management's plans that are subject to uncertainty.
Forward-looking statements may be identified by the use of words like "plans,"
"expects," "will," "anticipates," "estimates" and other words of similar meaning
in conjunction with, among other things, discussions of future operations,
financial performance, the Company's strategy for growth, product development,
regulatory approval, market position and expenditures.
     Forward-looking statements are based on current expectations of future
events. The Company cannot guarantee that any forward-looking statement will be
accurate, although the Company believes that it has been reasonable in its
expectations and assumptions. Investors should realize that if underlying
assumptions prove inaccurate or that unknown risks or uncertainties materialize,
actual results could vary materially from the Company's expectations and
projections. Investors are therefore cautioned not to place undue reliance on
any forward-looking statements. The Company assumes no obligation to update any
forward-looking statements as a result of new information or future events or
developments.
     Risks and uncertainties include general industry conditions and
competition; economic conditions, such as interest rate and currency exchange
rate fluctuations; technological advances, new products and patents attained by
competitors; challenges inherent in new product development, including obtaining
regulatory approvals; challenges to patents; U.S. and foreign health care
reforms and governmental laws and regulations; trends toward health care cost
containment; increased scrutiny of the health care industry by government
agencies; product efficacy or safety concerns resulting in product recalls or
regulatory action.
     The Company's report on Form 10-K for the year ended January 1, 2006
includes Exhibit 99(b), a discussion of additional factors that could cause
actual results to differ from expectations. The Company notes these factors as
permitted by the Private Securities Litigation Reform Act of 1995.


PAGE 38                                     JOHNSON & JOHNSON 2005 ANNUAL REPORT
<PAGE>
<TABLE>
<CAPTION>
CONSOLIDATED BALANCE SHEETS                                                             JOHNSON & JOHNSON AND SUBSIDIARIES


At January 1,2006 and January 2,2005 (Dollars in Millions Except Share and Per Share Data) (Note 1)        2005     2004
- -------------------------------------------------------------------------------------------------------  --------  -------
ASSETS
- -------------------------------------------------------------------------------------------------------  --------  -------
<S>                                                                                                      <C>       <C>
CURRENT ASSETS
Cash and cash equivalents (Notes 1, 14 and 15)                                                           $16,055    9,203
Marketable securities (Notes 1, 14 and 15)                                                                    83    3,681
Accounts receivable trade, less allowances for doubtful accounts $164 (2004, $206)                         7,010    6,831
Inventories (Notes 1 and 2)                                                                                3,959    3,744
Deferred taxes on income (Note 8)                                                                          1,845    1,737
Prepaid expenses and other receivables                                                                     2,442    2,124
                                                                                                         --------  -------

TOTAL CURRENT ASSETS                                                                                      31,394   27,320
                                                                                                         ========  =======

Marketable securities, non-current (Notes 1, 14 and 15)                                                       20       46
Property, plant and equipment, net (Notes 1 and 3)                                                        10,830   10,436
Intangible assets, net (Notes 1 and 7)                                                                     6,185    5,979
Goodwill, net (Notes 1 and 7)                                                                              5,990    5,863
Deferred taxes on income (Note 8)                                                                            385      551
Other assets (Note 5)                                                                                      3,221    3,122
                                                                                                         --------  -------

TOTAL ASSETS                                                                                             $58,025   53,317
                                                                                                         ========  =======

LIABILITIES AND SHAREHOLDERS' EQUITY
- -------------------------------------------------------------------------------------------------------  --------  -------
CURRENT LIABILITIES
Loans and notes payable (Note 6)                                                                         $   668      280
Accounts payable                                                                                           4,315    5,227
Accrued liabilities                                                                                        3,529    3,523
Accrued rebates, returns and promotions                                                                    2,017    2,297
Accrued salaries, wages and commissions                                                                    1,166    1,094
Accrued taxes on income                                                                                      940    1,506
                                                                                                         --------  -------

TOTAL CURRENT LIABILITIES                                                                                 12,635   13,927
                                                                                                         ========  =======

Long-term debt (Note 6)                                                                                    2,017    2,565
Deferred taxes on income (Note 8)                                                                            211      403
Employee related obligations (Notes 5 and 13)                                                              3,065    2,631
Other liabilities                                                                                          2,226    1,978
                                                                                                         --------  -------
Total liabilities                                                                                         20,154   21,504
                                                                                                         ========  =======

SHAREHOLDERS' EQUITY
Preferred stock-without par value
  (authorized and unissued 2,000,000 shares)                                                                   -        -
Common stock-par value $1.00 per share (Note 20)
  (authorized 4,320,000,000 shares; issued 3,119,842,000 shares)                                           3,120    3,120
Note receivable from employee stock ownership plan (Note 16)                                                   -      (11)
Accumulated other comprehensive income (Note 12)                                                            (755)    (515)
Retained earnings                                                                                         41,471   35,223
                                                                                                         --------  -------
                                                                                                          43,836   37,817

Less: common stock held in treasury, at cost (Note 20)
  (145,364,000 shares and 148,819,000 shares)                                                              5,965    6,004
                                                                                                         --------  -------
TOTAL SHAREHOLDERS' EQUITY                                                                                37,871   31,813
                                                                                                         ========  =======
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                                                               $58,025   53,317
                                                                                                         ========  =======
</TABLE>

See Notes to Consolidated Financial Statements


CONSOLIDATED FINANCIAL STATEMENTS                                        PAGE 39
<PAGE>
<TABLE>
<CAPTION>
CONSOLIDATED STATEMENTS OF EARNINGS              JOHNSON & JOHNSON AND SUBSIDIARIES

(Dollars in Millions Except Per Share Figures) (Note 1)    2005     2004     2003
- -------------------------------------------------------  --------  -------  -------
<S>                                                      <C>       <C>      <C>

SALES TO CUSTOMERS                                       $50,514   47,348   41,862
                                                         ========  =======  =======

Cost of products sold                                     13,954   13,422   12,176
                                                         --------  -------  -------

Gross profit                                              36,560   33,926   29,686

Selling, marketing and administrative expenses            16,877   15,860   14,131
Research expense                                           6,312    5,203    4,684
Purchased in-process research and development (Note 17)      362       18      918
Interest income                                             (487)    (195)    (177)
Interest expense, net of portion capitalized (Note 3)         54      187      207
Other (income) expense, net                                 (214)      15     (385)
                                                         --------  -------  -------
                                                          22,904   21,088   19,378
                                                         --------  -------  -------
Earnings before provision for taxes on income             13,656   12,838   10,308
Provision for taxes on income (Note 8)                     3,245    4,329    3,111
                                                         --------  -------  -------

NET EARNINGS                                             $10,411    8,509    7,197
                                                         ========  =======  =======

BASIC NET EARNINGS PER SHARE (NOTES 1 AND 19)            $  3.50     2.87     2.42
                                                         ========  =======  =======

DILUTED NET EARNINGS PER SHARE (NOTES 1 AND 19)          $  3.46     2.84     2.40
                                                         ========  =======  =======
</TABLE>

See Notes to Consolidated Financial Statements


PAGE 40                                     JOHNSON & JOHNSON 2005 ANNUAL REPORT
<PAGE>
<TABLE>
<CAPTION>
CONSOLIDATED STATEMENTS OF EQUITY                                                    JOHNSON & JOHNSON AND SUBSIDIARIES

                                                                                        Note
                                                                                  Receivable
                                                                               From Employee     Accumulated   Common
                                                                                       Stock           Other    Stock   Treasury
                                                    Comprehensive   Retained       Ownership   Comprehensive   Issued      Stock
(Dollars in Millions) (Note 1)             Total           Income   Earnings     Plan (ESOP)          Income   Amount     Amount
- --------------------------------------------------------------------------------------------------------------------------------
<S>                                       <C>       <C>             <C>        <C>             <C>             <C>     <C>
BALANCE, DECEMBER 29, 2002                $22,697                     26,571             (25)           (842)   3,120    (6,127)
                                          ======================================================================================
Net earnings                                7,197           7,197      7,197
Cash dividends paid                        (2,746)                    (2,746)
Employee stock compensation
  and stock option plans                      534                       (626)                                             1,160
Conversion of subordinated debentures           2                         (2)                                                 4
Repurchase of common stock                 (1,183)                                                                       (1,183)
Business combinations                         109                        109
Other comprehensive income, net of tax:
  Currency translation adjustment             334             334                                        334
  Unrealized gains on securities               29              29                                         29
  Pension liability adjustment                (31)            (31)                                       (31)
  Losses on derivatives & hedges              (80)            (80)                                       (80)
Reclassification adjustment                                    (2)
                                                    --------------
Total comprehensive income                                  7,447
                                                    ==============
Note receivable from ESOP                       7                                          7
                                          --------                  ------------------------------------------------------------
BALANCE, DECEMBER 28, 2003                $26,869                     30,503             (18)           (590)   3,120    (6,146)
                                          ======================================================================================
Net earnings                                8,509           8,509      8,509
Cash dividends paid                        (3,251)                    (3,251)
Employee stock compensation
  and stock option plans                      883                       (520)                                             1,403
Conversion of subordinated debentures         105                        (18)                                               123
Repurchase of common stock                 (1,384)                                                                       (1,384)
Other comprehensive income, net of tax:
  Currency translation adjustment             268             268                                        268
  Unrealized gains on securities               59              59                                         59
  Pension liability adjustment               (282)           (282)                                      (282)
  Gains on derivatives & hedges                30              30                                         30
Reclassification adjustment                                   (10)
                                                    --------------
Total comprehensive income                                  8,574
                                                    ==============
Note receivable from ESOP                       7                                          7
                                          --------                  ------------------------------------------------------------
BALANCE, JANUARY 2, 2005                  $31,813                     35,223             (11)           (515)   3,120    (6,004)
                                          ======================================================================================
Net earnings                               10,411          10,411     10,411
Cash dividends paid                        (3,793)                    (3,793)
Employee stock compensation
  and stock option plans                    1,017                       (441)                                             1,458
Conversion of subordinated debentures         369                       (132)                                               501
Repurchase of common stock                 (1,717)                       203                                             (1,920)
Other comprehensive income, net of tax:
  Currency translation adjustment            (415)           (415)                                      (415)
  Unrealized losses on securities             (16)            (16)                                       (16)
  Pension liability adjustment                 26              26                                         26
  Gains on derivatives & hedges               165             165                                        165
Reclassification adjustment                                   (15)
                                                    --------------
Total comprehensive income                                 10,156
                                                    ==============
Note receivable from ESOP                      11                                         11
                                          --------                  ------------------------------------------------------------
BALANCE, JANUARY 1, 2006                  $37,871                     41,471               -            (755)   3,120    (5,965)
                                          ======================================================================================
</TABLE>
See Notes to Consolidated Financial Statements


CONSOLIDATED FINANCIAL STATEMENTS                                        PAGE 41
<PAGE>
<TABLE>
<CAPTION>
CONSOLIDATED STATEMENTS OF CASH FLOWS                                                   JOHNSON & JOHNSON AND SUBSIDIARIES


(Dollars in Millions) (Note 1)                                                                   2005      2004     2003
- --------------------------------------------------------------------------------------------------------------------------
<S>                                                                                            <C>       <C>       <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net earnings                                                                                   $10,411     8,509    7,197
Adjustments to reconcile net earnings to cash flows:
  Depreciation and amortization of property and intangibles                                      2,093     2,124    1,869
  Purchased in-process research and development                                                    362        18      918
  Deferred tax provision                                                                           (46)     (498)    (720)
  Accounts receivable allowances                                                                   (31)        3        6
Changes in assets and liabilities, net of effects from acquisitions:
  Increase in accounts receivable                                                                 (568)     (111)    (691)
  (Increase)/decrease in inventories                                                              (396)       11       39
  (Decrease)/increase in accounts payable and accrued liabilities                                 (911)      607    2,192
  Decrease/(increase) in other current and non-current assets                                      620      (395)    (746)
  Increase in other current and non-current liabilities                                            343       863      531
                                                                                               --------  --------  -------

NET CASH FLOWS FROM OPERATING ACTIVITIES                                                        11,877    11,131   10,595
                                                                                               ========  ========  =======

CASH FLOWS FROM INVESTING ACTIVITIES
Additions to property, plant and equipment                                                      (2,632)   (2,175)  (2,262)
Proceeds from the disposal of assets                                                               154       237      335
Acquisitions, net of cash acquired (Note 17)                                                      (987)     (580)  (2,812)
Purchases of investments                                                                        (5,660)  (11,617)  (7,590)
Sales of investments                                                                             9,187    12,061    8,062
Other (primarily intangibles)                                                                     (341)     (273)    (259)
                                                                                               --------  --------  -------

NET CASH USED BY INVESTING ACTIVITIES                                                             (279)   (2,347)  (4,526)
                                                                                               ========  ========  =======

CASH FLOWS FROM FINANCING ACTIVITIES
Dividends to shareholders                                                                       (3,793)   (3,251)  (2,746)
Repurchase of common stock                                                                      (1,717)   (1,384)  (1,183)
Proceeds from short-term debt                                                                    1,215       514    3,062
Retirement of short-term debt                                                                     (732)   (1,291)  (4,134)
Proceeds from long-term debt                                                                         6        17    1,023
Retirement of long-term debt                                                                      (196)     (395)    (196)
Proceeds from the exercise of stock options                                                        696       642      311
                                                                                               --------  --------  -------

NET CASH USED BY FINANCING ACTIVITIES                                                           (4,521)   (5,148)  (3,863)
                                                                                               ========  ========  =======

Effect of exchange rate changes on cash and cash equivalents                                      (225)      190      277
                                                                                               --------  --------  -------
Increase in cash and cash equivalents                                                            6,852     3,826    2,483
Cash and cash equivalents, beginning of year (Note 1)                                            9,203     5,377    2,894
                                                                                               --------  --------  -------

CASH AND CASH EQUIVALENTS, END OF YEAR (NOTE 1)                                                $16,055     9,203    5,377
                                                                                               ========  ========  =======

- --------------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL CASH FLOW DATA
Cash paid during the year for:
  Interest                                                                                     $   151       222      206
  Income taxes                                                                                   3,429     3,880    3,146

SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES
Treasury stock issued for employee compensation and stock option plans, net of cash proceeds   $   818       802      905
Conversion of debt                                                                                 369       105        2

ACQUISITIONS
Fair value of assets acquired                                                                  $ 1,128       595    3,135
Fair value of liabilities assumed                                                                 (141)      (15)    (323)
                                                                                               --------  --------  -------

Net cash paid for acquisitions                                                                 $   987       580    2,812
                                                                                               ========  ========  =======
</TABLE>
See Notes to Consolidated Financial Statements


PAGE 42                                     JOHNSON & JOHNSON 2005 ANNUAL REPORT
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

PRINCIPLES OF CONSOLIDATION
The  consolidated financial statements include the accounts of Johnson & Johnson
and  subsidiaries.  Intercompany  accounts  and  transactions  are  eliminated.

DESCRIPTION OF THE COMPANY AND BUSINESS SEGMENTS
The Company and its subsidiaries have approximately 115,600 employees worldwide
engaged in the manufacture and sale of a broad range of products in the health
care field. The Company conducts business in virtually all countries of the
world and its primary focus is on products related to human health and
well-being.
     The Company is organized into three business segments: Consumer,
Pharmaceutical and Medical Devices and Diagnostics. The Consumer segment
manufactures and markets a broad range of products used in the baby and child
care, skin care, oral and wound care and women's health care fields, as well as
nutritional and over-the-counter pharmaceutical products. These products are
marketed principally to the general public and sold both to wholesalers and
directly to independent and chain retail outlets throughout the world. The
Pharmaceutical segment includes products in the following therapeutic areas:
anti-fungal, anti-infective, cardiovascular, contraceptive, dermatology,
gastrointestinal, hematology, immunology, neurology, oncology, pain management,
psychotropic (central nervous system) and urology areas. These products are
distributed directly to retailers, wholesalers and health care professionals for
prescription use by the general public. The Medical Devices and Diagnostics
segment includes a broad range of products used principally in the professional
fields by physicians, nurses, therapists, hospitals, diagnostic laboratories and
clinics. These products include Cordis' circulatory disease management products;
DePuy's orthopaedic joint reconstruction and spinal care products; Ethicon's
wound care and women's health products; Ethicon Endo-Surgery's minimally
invasive surgical products; LifeScan's blood glucose monitoring products;
Ortho-Clinical Diagnostics' professional diagnostic products and Vision Care's
disposable contact lenses.

NEW ACCOUNTING PRONOUNCEMENTS

In December 2004, the FASB issued SFAS No. 123(R), Share Based Payment. This
statement establishes standards for the accounting for transactions in which an
entity exchanges its equity instruments for goods and services. It focuses
primarily on accounting for transactions in which an entity obtains employee
services in share-based payment transactions (such as employee stock options and
restricted stock units). The statement requires the measurement of the cost of
employee services received in exchange for an award of equity instruments (such
as employee stock options and restricted stock units) at fair value on the grant
date. That cost will be recognized over the period during which an employee is
required to provide services in exchange for the award (the requisite service
period). On April 14, 2005 the SEC approved a new rule that delayed the
effective date of SFAS No. 123(R) for annual, rather than interim, periods that
begin after June 15, 2005. As a result, the Company will adopt this statement in
the fiscal first quarter of 2006.
     Upon adoption of this standard, the Company currently intends to apply the
modified retrospective transition method. Previously reported financial
statements will be restated to reflect SFAS No. 123 disclosure amounts. As
required by SFAS No. 148, Accounting for Stock Based Compensation-Transition
and Disclosure-an amendment of FASB Statement No. 123, the Company has disclosed
the net earnings and earnings per share effect had the Company applied the fair
value recognition provision of SFAS No. 123. The disclosure impact in 2005 and
2004 was compensation expense, net of tax, of $351 million and $329 million and
earnings per share of $0.12 and $0.11, respectively.
     The Company will implement SFAS 151, Inventory Costs, an amendment of ARB
No. 43 in the fiscal first quarter of 2006. The Company believes the adoption of
this statement will not have a material effect on its results of operations,
cash flows or financial position.
     The Company implemented FIN 47, Accounting for Conditional Asset Retirement
Obligations-an interpretation of FASB Statement No. 143, during the fiscal
fourth quarter of 2005. The implementation of this Standard did not have a
material effect on the Company's results of operations, cash flows or financial
position.
     The Company implemented SFAS 153, Exchanges of Non-monetary Assets, an
amendment of APB 29 during the fiscal third quarter of 2005, which did not have
a material effect on its results of operations, cash flows or financial
position.
     The following accounting pronouncements became effective in 2004 and did
not have a material impact on the Company's results of operations, cash flows or
financial position.
- -    EITF Issue 02-14: Whether an Investor should apply the Equity Method of
     Accounting to Investments other than
     Common Stock.
- -    EITF Issue 04-1: Accounting for Preexisting Relationships between the
     Parties to a Business Combination.
     The following accounting pronouncements became effective in 2003 and did
not have a material impact on the Company's results of operations, cash flows or
financial position.
- -    FSP FAS No. 106-1: Accounting and Disclosure Requirements Related to the
     Medicare Prescription Drug, Improvement and Modernization Act of 2003.
- -    SFAS No. 149: Amendment of Statement 133 on Derivative Instruments and
     Hedging Activities.
- -    FIN 46 and FIN 46(R): Consolidation of Variable Interest Entities-an
     interpretation of ARB No. 51.

CASH EQUIVALENTS
The Company considers securities with maturities of three months or less, when
purchased, to be cash equivalents.

INVESTMENTS
Short-term marketable securities are carried at cost, which approximates fair
value. Investments classified as available-for-sale are carried at estimated
fair value with unrealized gains and losses recorded as a component of
accumulated other comprehensive income. Long-term debt securities that the
Company has the ability and intent to hold until maturity are carried at
amortized cost, which also approximates fair value.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS                               PAGE 43
<PAGE>
Management determines the appropriate classification of its investment in debt
and equity securities at the time of purchase and re-evaluates such
determination at each balance sheet date. The Company periodically reviews its
investments in equity securities for impairment and adjusts these investments to
their fair value when a decline in market value is deemed to be other than
temporary.

PROPERTY, PLANT AND EQUIPMENT AND DEPRECIATION

Property, plant and equipment are stated at cost. The Company utilizes the
straight-line method of depreciation over the estimated useful lives of the
assets:

<TABLE>
<CAPTION>
<S>                              <C>
Building and building equipment  20-40 years
Land and leasehold improvements  10-20 years
Machinery and equipment           2-13 years
</TABLE>

The Company capitalizes certain computer software and development costs,
included in machinery and equipment, when incurred in connection with developing
or obtaining computer software for internal use. Capitalized software costs are
amortized over the estimated useful lives of the software, which generally range
from 3 to 5 years.
     The Company reviews long-lived assets to assess recoverability using
undiscounted cash flows. When necessary, charges for impairments of long-lived
assets are recorded for the amount by which the present value of future cash
flows is less than the carrying value of these assets.

REVENUE RECOGNITION

The Company recognizes revenue from product sales when the goods are shipped or
delivered and title and risk of loss pass to the customer. Provisions for
certain rebates, sales incentives, trade promotions, coupons, product returns
and discounts to customers are accounted for as reductions in sales in the same
period the related sales are recorded.
     Product discounts granted are based on the terms of arrangements with
direct, indirect and other market participants, as well as market conditions,
including prices charged by competitors. Rebates, the largest being the Medicaid
rebate provision, are estimated based on sales terms, historical experience,
trend analysis and projected market conditions in the various markets served.
The Company evaluates market conditions for products or groups of products
primarily through the analysis of wholesaler and other third party sell-through
and market research data, as well as internally generated information.
     Sales returns are generally estimated and recorded based on historical
sales and returns information. Products that exhibit unusual sales or return
patterns due to dating, competition or other marketing matters are specifically
investigated and analyzed as part of the accounting for sales return accruals.
The Company also earns service revenue for co-promotion of certain products and
includes it in sales to customers.

SHIPPING AND HANDLING

Shipping and handling costs incurred were $736 million, $679 million and $604
million in 2005, 2004 and 2003, respectively, and are included in selling,
marketing and administrative expense. The amount of revenue received for
shipping and handling is less than 0.5% of sales to customers for all periods
presented.

INVENTORIES

Inventories are stated at the lower of cost or market determined by the
first-in, first-out method.

GOODWILL AND INTANGIBLE ASSETS

Effective at the beginning of fiscal year 2002 in accordance with SFAS No. 142,
the Company discontinued the amortization relating to all existing goodwill and
indefinite lived intangible assets, which are non-amortizable. SFAS No. 142
requires that goodwill and non-amortizable intangible assets be assessed
annually for impairment. The Company completed the annual impairment test for
2005 in the fiscal fourth quarter and no impairment was determined. Future
impairment tests will be performed annually in the fiscal fourth quarter, or
sooner if a triggering event occurs.
     Intangible  assets  that  have finite useful lives continue to be amortized
over  their  useful  lives,  and  are  reviewed for impairment when warranted by
economic  conditions.  See  Note  7  for  further  details on Intangible Assets.

FINANCIAL INSTRUMENTS

The Company follows the provisions of SFAS No. 133, Accounting for Derivative
Instruments and Hedging Activities, as amended by SFAS No. 138, Accounting for
Certain Derivative Instruments and Certain Hedging Activities, and SFAS No. 149,
Amendment of Statement 133 on Derivative Instruments and Hedging Activities,
collectively referred to as SFAS No. 133. SFAS No. 133 requires that all
derivative instruments be recorded on the balance sheet at fair value. Changes
in the fair value of derivatives are recorded each period in current earnings or
other comprehensive income, depending on whether the derivative is designated as
part of a hedge transaction, and if so, what type of hedge transaction.
     The Company uses forward exchange contracts to manage its exposure to the
variability of cash flows, primarily related to the foreign exchange rate
changes of future intercompany product and third party purchases of raw
materials denominated in foreign currency. The Company also uses currency swaps
to manage currency risk primarily related to borrowings. Both of these types of
derivatives are designated as cash flow hedges. Additionally, the Company uses
forward exchange contracts to offset its exposure to certain foreign currency
assets and liabilities. These forward exchange contracts are not designated as
hedges and, therefore, changes in the fair values of these derivatives are
recognized in earnings, thereby offsetting the current earnings effect of the
related foreign currency assets and liabilities.
     The designation as a cash flow hedge is made at the entrance date into the
derivative contract. At inception, all derivatives are expected to be highly
effective. Changes in the fair value of a derivative that is designated as a
cash flow hedge and is highly effective are recorded in accumulated other
comprehensive income until the underlying transaction affects earnings, and are
then reclassified to earnings in the same account as the hedged transaction. The
fair value of a derivative instrument (i.e. Forward Foreign Exchange Contract,
Currency Swap) is the aggregation, by currency, of all


PAGE 44                                     JOHNSON & JOHNSON 2005 ANNUAL REPORT
<PAGE>
future  cash flows discounted to its present value at prevailing market interest
rates  and subsequently converted to the U.S. dollar at the current spot foreign
exchange  rate.
     On an ongoing basis, the Company assesses whether each derivative continues
to be highly effective in offsetting changes in the cash flows of hedged items.
If and when a derivative is no longer expected to be highly effective, hedge
accounting is discontinued. Hedge ineffectiveness, if any, is included in
current period earnings, and was insignificant in 2005, 2004 and 2003.
     The Company documents all relationships between hedged items and
derivatives. The overall risk management strategy includes reasons for
undertaking hedge transactions and entering into derivatives. The objectives of
this strategy are: (1) minimize foreign currency exposure's impact on the
Company's financial performance; (2) protect the Company's cash flow from
adverse movements in foreign exchange rates; (3) ensure the appropriateness of
financial instruments; and (4) manage the enterprise risk associated with
financial institutions.

PRODUCT LIABILITY

Accruals for product liability claims are recorded, on an undiscounted basis,
when it is probable that a liability has been incurred and the amount of the
liability can be reasonably estimated based on existing information. The
accruals are adjusted periodically as additional information becomes available.
As a result of cost and availability factors, effective November 1, 2005, the
Company ceased purchasing third party product liability insurance. Based on the
availability of prior coverage, receivables for insurance recoveries related to
product liability claims are recorded on an undiscounted basis, when it is
probable that a recovery will be realized.

RESEARCH AND DEVELOPMENT

Research and development expenses are expensed as incurred. Upfront and
milestone payments made to third parties in connection with research and
development collaborations are expensed as incurred up to the point of
regulatory approval. Payments made to third parties subsequent to regulatory
approval are capitalized and amortized over the remaining useful life of the
related product. Amounts capitalized for such payments are included in other
intangibles, net of accumulated amortization.

ADVERTISING

Costs associated with advertising are expensed in the year incurred and are
included in the selling, marketing and administrative expenses. Advertising
expenses worldwide, which are comprised of television, radio, print media and
Internet advertising, were $2.1 billion in 2005, $1.9 billion in 2004 and $1.7
billion in 2003.

INCOME TAXES

The Company intends to continue to reinvest its undistributed international
earnings to expand its international operations; therefore, no U.S. tax expense
has been recorded to cover the undistributed portion not intended for
repatriation. At January 1, 2006 and January 2, 2005, the cumulative amount of
undistributed international earnings were approximately $12.0 billion and $18.6
billion, respectively.

Deferred income taxes are recognized for tax consequences of temporary
differences by applying enacted statutory tax rates, applicable to future years,
to differences between the financial reporting and the tax basis of existing
assets and liabilities.

NET EARNINGS PER SHARE

Basic net earnings per share is computed by dividing net earnings available to
common shareholders by the weighted average number of common shares outstanding
for the period. Diluted net earnings per share reflects the potential dilution
that could occur if securities were exercised or converted into common stock
using the treasury stock method.

STOCK OPTIONS

At January 1, 2006, the Company had 17 stock-based employee compensation plans
that are described in Note 10. The Company accounts for those plans under the
recognition and measurement principles of Accounting Principle Board Opinion No.
25, Accounting for Stock Issued to Employees (APB 25), and its related
Interpretations. Compensation costs are not recorded in net earnings for stock
options as all options granted under those plans had an exercise price equal to
the market value of the underlying common stock on the date of grant.
     As required by SFAS No. 148, Accounting for Stock-Based
Compensation-Transition and Disclosure-an amendment of FASB Statement No. 123,
the following table shows the estimated effect on net income and earnings per
share if the Company had applied the fair value recognition provision of SFAS
No. 123, Accounting for Stock-Based Compensation, to stock-based employee
compensation.

<TABLE>
<CAPTION>
(Dollars in Millions
Except Per Share Data)       2005    2004   2003
- --------------------------  -------  -----  -----
<S>                         <C>      <C>    <C>
Net earnings, as reported   $10,411  8,509  7,197
                            -------  -----  -----
Less:
  Compensation expense(1)       351    329    349
                            -------  -----  -----
Net earnings, pro forma      10,060  8,180  6,848
                            =======  =====  =====

Net earnings per share:
  Basic -as reported        $  3.50   2.87   2.42
        -pro forma             3.38   2.76   2.31
  Diluted -as reported         3.46   2.84   2.40
        -pro forma             3.35   2.74   2.29
                            =======  =====  =====
</TABLE>

(1) Determined under fair value based method for all awards, net of tax.

USE OF ESTIMATES

The preparation of consolidated financial statements in conformity with
accounting principles generally accepted in the U.S. requires management to make
estimates and assumptions that affect the amounts reported. Estimates are used
when accounting for sales discounts, rebates, allowances and incentives, product
liabilities, income taxes, depreciation, amortization, employee benefits,
contingencies and asset and liability valuations. For instance, in determining
annual pension and post-employment benefit costs, the Company estimates the rate
of return on plan assets, and the cost of future health care benefits. Actual
results may or may not differ from those estimates.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS                               PAGE 45
<PAGE>
ANNUAL CLOSING DATE

The Company follows the concept of a fiscal year which ends on the Sunday
nearest to the end of the month of December. Normally each fiscal year consists
of 52 weeks, but every five or six years, the fiscal year consists of 53 weeks,
as was the case in 2004.

RECLASSIFICATION

Certain prior year amounts have been reclassified to conform with current year
presentation.

2. INVENTORIES

At the end of 2005 and 2004, inventories were comprised of:

<TABLE>
<CAPTION>
(Dollars in Millions)         2005   2004
- ------------------------------------------
<S>                          <C>     <C>
Raw materials and supplies   $  931    964
Goods in process              1,073  1,113
Finished goods                1,955  1,667
                             ------  -----
                             $3,959  3,744
                             ======  =====
</TABLE>

3. PROPERTY, PLANT AND EQUIPMENT

At the end of 2005 and 2004, property, plant and equipment at cost and
accumulated depreciation were:

<TABLE>
<CAPTION>
(Dollars in Millions)               2005     2004
- --------------------------------------------------
<S>                                <C>      <C>
Land and land improvements         $   502     515
Buildings and building equipment     5,875   5,907
Machinery and equipment             10,835  10,455
Construction in progress             2,504   1,787
                                   -------  ------
                                    19,716  18,664
Less accumulated depreciation        8,886   8,228
                                   -------  ------
                                   $10,830  10,436
                                   =======  ======
</TABLE>

The Company capitalizes interest expense as part of the cost of construction of
facilities and equipment. Interest expense capitalized in 2005, 2004 and 2003
was $111 million, $136 million and $108 million, respectively.
     Depreciation expense, including the amortization of capitalized interest in
2005,  2004  and  2003  was  $1.5  billion,  $1.5  billion  and  $1.4  billion,
respectively.
     Upon retirement or other disposal of property, plant and equipment, the
cost and related amount of accumulated depreciation or amortization are
eliminated from the asset and accumulated depreciation accounts, respectively.
The difference, if any, between the net asset value and the proceeds is recorded
in earnings.

4. RENTAL EXPENSE AND LEASE COMMITMENTS

Rentals of space, vehicles, manufacturing equipment and office and data
processing equipment under operating leases were approximately $248 million in
2005, $254 million in 2004 and $279 million in 2003.
     The approximate minimum rental payments required under operating leases
that have initial or remaining noncancelable lease terms in excess of one year
at January 1, 2006 are:

<TABLE>
<CAPTION>
(Dollars                                     After
in Millions)  2006   2007  2008  2009  2010  2010   Total
              -----  ----  ----  ----  ----  -----  -----
<S>           <C>    <C>   <C>   <C>   <C>   <C>    <C>
              $ 162   142   119   103    88    151    765
</TABLE>

Commitments under capital leases are not significant.

5. EMPLOYEE RELATED OBLIGATIONS

At the end of 2005 and 2004, employee related obligations were:

<TABLE>
<CAPTION>
(Dollars in Millions)            2005   2004
- ---------------------------------------------
<S>                             <C>     <C>
Pension benefits                $1,264  1,109
Postretirement benefits          1,157  1,071
Postemployment benefits            322    244
Deferred compensation              511    397
                                ------  -----
                                $3,254  2,821
Less current benefits payable      189    190
                                ------  -----
Employee related obligations    $3,065  2,631
                                ======  =====
</TABLE>

Prepaid employee related obligations of $1,218 million and $1,001 million for
2005 and 2004, respectively, are included in other assets on the consolidated
balance sheet.

6. BORROWINGS

The components of long-term debt are as follows:

<TABLE>
<CAPTION>
                                          Effective              Effective
(Dollars in Millions)            2005       Rate%       2004       Rate%
- ---------------------------  ----------  ----------  ---------  ----------
<S>                          <C>         <C>         <C>        <C>
3% Zero Coupon
  Convertible Subordinated
  Debentures due 2020        $      202        3.00        560        3.00
4.95% Debentures due 2033           500        4.95        500        4.95
3.80% Debentures due 2013           500        3.82        500        3.82
6.95% Notes due 2029                293        7.14        293        7.14
6.73% Debentures due 2023           250        6.73        250        6.73
6.625% Notes due 2009               199        6.80        198        6.80
5.50% Convertible
  Subordinated Notes
  due 2009(2)                         -           -        177        2.00
Industrial Revenue Bonds             31        3.90         34        2.76
Other                                55           -         71           -
                             ----------  ----------  ---------  ----------
                                  2,030      5.18(1)      2,583      4.63(1)
Less current portion                 13                     18
                             ----------  ----------  ---------  ----------
                             $    2,017                  2,565
                             ==========  ==========  =========  ==========
</TABLE>

(1)  Weighted average effective rate.
(2)  5.50% Convertible Subordinated Notes redeemed by Scios Inc. in August 2005.


PAGE 46                                     JOHNSON & JOHNSON 2005 ANNUAL REPORT
<PAGE>
The Company has access to substantial sources of funds at numerous banks
worldwide. Total unused credit available to the Company approximates $3.6
billion, including $1.5 billion of credit commitments, of which $0.75 billion
expire September 28, 2006 and $0.75 billion expire September 29, 2010. Also
included are $0.8 billion of uncommitted lines with various banks worldwide
that expire during 2006. Interest charged on borrowings under the credit line
agreements is based on either bids provided by banks, the prime rate or London
Interbank Offered Rates (LIBOR), plus applicable margins. Commitment fees under
the agreements are not material for all periods presented.
     The Company filed a shelf registration with the Securities and Exchange
Commission that became effective January 21, 2004, which enables the Company to
issue up to $1.985 billion in debt securities and warrants for the purchase of
debt securities. No debt was issued off the shelf during 2005 and the full
amount remained available as of January 1, 2006.
     On August 19, 2005, Scios Inc. exercised its right to redeem all of its
outstanding $150 million original principal amount of 5.50% Convertible
Subordinated Notes due 2009. The redemption price was 103.143% of the principal
amount or $1,031.43 per $1,000 principal amount of Debentures, with accrued
interest to, but excluding, the date of redemption.
     On July 28, 2000, ALZA Corporation completed a private offering of the 3%
Zero Coupon Convertible Subordinated Debentures, which were issued at a price of
$551.26 per $1,000 principal amount at maturity. At January 1, 2006, the
outstanding 3% Debentures had a total principal amount at maturity of $311.6
million with a yield to maturity of 3% per annum, computed on a semiannual bond
equivalent basis. There are no periodic interest payments. Under the terms of
the 3% Debentures, holders are entitled to convert their Debentures into
approximately 15.0 million shares of Johnson & Johnson stock at a price of
$40.102 per share. Approximately 10.7 million shares have been issued as of
January 1, 2006, due to voluntary conversions by note holders. At the option of
the holder, the 3% Debentures may be repurchased by the Company on July 28, 2008
or 2013, at a purchase price equal to the issue price plus accreted original
issue discount to such purchase date. The Company, at its option, may elect to
deliver either Johnson & Johnson common stock or cash, or a combination of stock
and cash, in the event of repurchase of the 3% Debentures. The Company, at its
option, may also redeem any or all of the 3% Debentures after July 28, 2003 at
the issue price plus accreted original issue discount. At January 1, 2006, and
January 2, 2005, the fair value based on quoted market value of the 3%
Debentures was $260.6 million and $780.5 million, respectively.
     Short-term borrowings and current portion of long term debt amounted to
$668 million at the end of 2005, of which $381 million relates to a commercial
paper program. The remainder represents principally local borrowing by
international subsidiaries.
     On November 1, 2004 the Company exercised its right to redeem all of its
$300 million aggregate principal amount of 8.72% Debentures due in 2024. The
redemption price was 104.360% of the principal amount or $1,043.36 per $1,000
principal amount of Debentures, with accrued interest to the date of redemption.
     Short-term borrowings and current portion of long-term debt amounted to
$280 million at the end of 2004, principally local borrowing by international
subsidiaries.
     Aggregate maturities of long-term obligations commencing in 2006 are:

<TABLE>
<CAPTION>
                                                            After
(Dollars in Millions)        2006   2007  2008  2009  2010  2010
                             -----  ----  ----  ----  ----  -----
<S>                          <C>    <C>   <C>   <C>   <C>   <C>
                             $  12    17     8   208     9  1,776
</TABLE>

7. INTANGIBLE ASSETS AND GOODWILL

At the end of 2005 and 2004, the gross and net amounts of intangible assets
were:

<TABLE>
<CAPTION>
(Dollars in Millions)                   2005     2004
- ------------------------------------  -------  ------
<S>                                   <C>      <C>
Trademarks (non-amortizable) -gross   $ 1,400   1,232
Less accumulated amortization             134     142
                                      -------  ------
Trademarks (non-amortizable) -net     $ 1,266   1,090
                                      =======  ======

Patents and trademarks-gross          $ 4,128   3,974
Less accumulated amortization           1,370   1,125
                                      -------  ------
Patents and trademarks-net            $ 2,758   2,849
                                      =======  ======

Other intangibles-gross               $ 3,544   3,302
Less accumulated amortization           1,383   1,262
                                      -------  ------
Other intangibles -net                $ 2,161   2,040
                                      =======  ======

Subtotal intangible assets-gross      $ 9,072   8,508
Less accumulated amortization           2,887   2,529
                                      -------  ------
Subtotal intangible assets-net        $ 6,185   5,979
                                      =======  ======

Goodwill -gross                       $ 6,703   6,597
Less accumulated amortization             713     734
                                      -------  ------
Goodwill -net                         $ 5,990   5,863
                                      =======  ======

Total intangible assets-gross         $15,775  15,105
Less accumulated amortization           3,600   3,263
                                      -------  ------
Total intangible assets-net           $12,175  11,842
                                      =======  ======
</TABLE>

Goodwill as of January 1, 2006 and January 2, 2005, as allocated by segment of
business is as follows:

<TABLE>
<CAPTION>
                                            Med Dev
(Dollars in Millions)   Consumer   Pharm   and Diag   Total
- ------------------------------------------------------------
<S>                    <C>         <C>     <C>        <C>
Goodwill at
  December 28,2003     $     882     781      3,727   5,390
Acquisitions                 232      32        138     402
Translation/other             46      19          6      71
                       -------------------------------------
Goodwill at
  January 2,2005       $   1,160     832      3,871   5,863
Acquisitions                   -      71        194     265
Translation/other            (70)    (29)       (39)   (138)
                       -------------------------------------
Goodwill at
  January 1,2006       $   1,090     874      4,026   5,990
                       =====================================
</TABLE>


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS                               PAGE 47
<PAGE>
The weighted average amortization periods for patents and trademarks and other
intangible assets are 15 years and 17 years, respectively. The amortization
expense of amortizable intangible assets for the fiscal years ended January 1,
2006, January 2, 2005 and December 28, 2003, was $521 million, $603 million and
$454 million before tax, respectively. Certain patents and intangibles were
written down to fair value during fiscal years 2005, 2004 and 2003, with the
resulting charge included in amortization expense. The estimated amortization
expense for the five succeeding years approximates $565 million before tax, per
year. Substantially all of the amortization expense is included in cost of
products sold.

8. INCOME TAXES

The provision for taxes on income consists of:

<TABLE>
<CAPTION>
(Dollars in Millions)    2005     2004    2003
- -----------------------------------------------
<S>                     <C>      <C>     <C>
Currently payable:
  U.S. taxes            $2,181   3,654   2,934
  International taxes    1,110   1,173     897
                        -----------------------
                         3,291   4,827   3,831
                        -----------------------
Deferred:
  U.S. taxes               228     (70)   (409)
  International taxes     (274)   (428)   (311)
                        -----------------------
                           (46)   (498)   (720)
                        -----------------------
                        $3,245   4,329   3,111
                        =======================
</TABLE>

A comparison of income tax expense at the federal statutory rate of 35% in 2005,
2004 and 2003, to the Company's effective tax rate is as follows:

<TABLE>
<CAPTION>
(Dollars in Millions)          2005     2004     2003
- -------------------------------------------------------
<S>                          <C>       <C>      <C>
U.S.                         $ 7,381    7,895    6,333
International                  6,275    4,943    3,975
                             --------------------------
Earnings before taxes
  on income:                 $13,656   12,838   10,308
                             --------------------------
Tax rates:
Statutory                       35.0%    35.0%    35.0%
Puerto Rico and
  Ireland operations            (7.0)    (5.6)    (6.1)
Research tax credits            (0.6)    (0.8)    (1.0)
U.S. state and local             1.0      1.6      2.0
International subsidiaries
  excluding Ireland             (2.6)    (1.7)    (2.0)
Repatriation of
  International earnings        (1.6)     6.1        -
IPR&D                            0.9        -      3.1
All other                       (1.3)    (0.9)    (0.8)
                             --------------------------
Effective tax rate              23.8%    33.7%    30.2%
                             ==========================
</TABLE>

During 2005, the Company had subsidiaries operating in Puerto Rico under various
tax incentive grants. Also, the U.S. possessions tax credit, which expires in
2006, applies to certain operations in Puerto Rico. In addition, the Company had
subsidiaries manufacturing in Ireland under an incentive tax rate. During the
second quarter of 2005, a tax benefit of $225 million was recorded due to the
reversal of a tax liability related to a technical correction associated with
the American Jobs Creation Act of 2004. The decrease in the 2005 tax rate was
attributed to increases in taxable income in lower tax jurisdictions relative to
taxable income in higher tax jurisdictions, as a result of increased
expenditures in higher tax jurisdictions and a shift in sales mix.
     Temporary differences and carry forwards for 2005 and 2004 are as follows:

<TABLE>
<CAPTION>
                                2005               2004
                            Deferred Tax        Deferred Tax
                          ------------------  -----------------
(Dollars in Millions)     Asset   Liability   Asset  Liability
- ---------------------------------------------------------------
<S>                       <C>     <C>         <C>    <C>
Employee related
  obligations             $  670                483
Depreciation                           (428)              (378)
Non-deductible
  intangibles                        (1,401)            (1,366)
International R&D
  capitalized for tax        999                905
Reserves & liabilities       788                720
Income reported
  for tax purposes           458                463
Miscellaneous
  international              495       (149)    535       (236)
Capitalized intangibles      140                147
Miscellaneous U.S.           342                515
                          -------------------------------------
Total deferred
  income taxes            $3,892     (1,978)  3,768     (1,980)
                          =====================================
</TABLE>

The difference between the net deferred tax on income per the balance sheet and
the net deferred tax above is included in taxes on income on the balance sheet.


PAGE 48                                     JOHNSON & JOHNSON 2005 ANNUAL REPORT
<PAGE>
9. INTERNATIONAL CURRENCY TRANSLATION

For translation of its subsidiaries operating in non-U.S. dollar currencies, the
Company has determined that the local currencies of its international
subsidiaries are the functional currencies except those in highly inflationary
economies, which are defined as those which have had compound cumulative rates
of inflation of 100% or more during the past three years, or where a substantial
portion of its cash flows are not in the local currency.
     In consolidating international subsidiaries, balance sheet currency effects
are recorded as a component of accumulated other comprehensive income. This
equity account includes the results of translating all balance sheet assets and
liabilities at current exchange rates, except for those located in highly
inflationary economies that are reflected in operating results.
     An analysis of the changes during 2005 and 2004 for foreign currency
translation adjustments is included in Note 12.
     Net currency transaction and translation gains and losses included in other
(income) expense were losses of $32 million, $38 million, and $22 million in
2005, 2004 and 2003, respectively.

10. COMMON STOCK, STOCK OPTION PLANS AND STOCK COMPENSATION AGREEMENTS

At January 1, 2006, the Company had 17 stock-based compensation plans. The
shares outstanding are for contracts under the Company's 1995 and 2000 Stock
Option Plans, the 2005 Long Term Incentive Plan, the 1997 Non-Employee
Director's Plan and the Biosense, Centocor, Innovasive Devices, ALZA, Inverness
and Scios Stock Option Plans. During 2005, no options were granted under any of
these plans except the 2000 Stock Option Plan and 2005 Long Term Incentive Plan.
The 2000 Stock Option Plan expired April 19, 2005. All options granted
subsequent to that date were under the 2005 Long Term Incentive Plan.
     Stock options expire 10 years from the date they are granted and vest over
service periods that range from one to five years. All options are granted at
current market price on the date of grant. Under the 2005 Long Term Incentive
Plan, the Company may issue up to 260 million shares of common stock. Shares
available for future grants under the 2005 Long Term Incentive Plan were 259.2
million at the end of 2005.
     A summary of the status of the Company's stock option plans as of January
1, 2006, January 2, 2005, and December 28, 2003, and changes during the years
ending on those dates are presented below:

<TABLE>
<CAPTION>
                                                  Weighted
                                  Options          Average
(Shares in Thousands)         Outstanding   Exercise Price
- -----------------------------------------------------------
<S>                           <C>           <C>
Balance at December 29,2002       189,741   $         41.42
Options granted                    50,880             49.15
Options exercised                 (21,242)            17.22
Options canceled/forfeited         (5,430)            52.68
                              -----------------------------
Balance at December 28,2003       213,949             45.37
Options granted                    47,815             53.94
Options exercised                 (24,066)            28.50
Options canceled/forfeited         (8,694)            53.77
                              -----------------------------
Balance at January 2,2005         229,004             48.62
Options granted                    47,556             66.16
Options exercised                 (21,733)            34.19
Options canceled/forfeited         (6,285)            55.84
                              -----------------------------
Balance at January 1,2006         248,542   $         53.05
                              =============================
</TABLE>

The average fair value of options granted was $15.48 in 2005, $13.11 in 2004,
and $13.58 in 2003. The fair value was estimated using the Black-Scholes option
pricing model based on the weighted average assumptions of:

<TABLE>
<CAPTION>
                  2005      2004      2003
- --------------------------------------------
<S>             <C>       <C>       <C>
Risk-free rate     3.72%     3.15%     3.09%
Volatility         25.0%     27.0%     28.0%
Expected life   5.0 yrs   5.0 yrs   5.0 yrs
Dividend yield     1.93%     1.76%     1.35%
</TABLE>

The following table summarizes stock options outstanding and exercisable at
January 1, 2006:

<TABLE>
<CAPTION>
(Shares in Thousands)       Outstanding          Exercisable
- --------------------------------------------  ------------------
                                     Average             Average
Exercise                  Average   Exercise            Exercise
Price Range     Options   Life(1)      Price  Options      Price
- ----------------------------------------------------------------
<S>             <C>      <C>       <C>        <C>      <C>
$ 3.62-$27.00     6,735       1.8  $   23.27    6,733  $   23.27
$27.06-$40.16    24,997       2.6      35.82   24,912      35.81
$40.53-$50.08    20,470       4.1      49.18   20,239      49.18
$50.11-$52.11    29,394       4.8      50.70   29,174      50.69
$52.20-$53.89    37,709       7.1      52.22      177      52.79
$53.93-$54.89    43,789       8.1      53.94      672      54.54
$55.01-$66.08    40,180       6.1      57.46   37,473      57.35
$66.18-$91.89    45,268       9.1      66.20       10      87.08
                ------------------------------------------------
                248,542       6.4  $   53.05  119,390  $   47.90
                ================================================
</TABLE>
(1)  Average contractual life remaining in years.

Stock options exercisable at January 2, 2005 and December 28, 2003 were 100,488
options at an average price of $41.26 and 119,663 options at an average price of
$38.51, respectively.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS                               PAGE 49
<PAGE>
<TABLE>
<CAPTION>
11. SEGMENTS OF BUSINESS(1) AND GEOGRAPHIC AREAS

                                                          Sales to Customers(2)
                                                          ---------------------
(Dollars in Millions)                                     2005     2004    2003
- --------------------------------------------------------------------------------
<S>                                                      <C>      <C>     <C>
Consumer-United States                                   $ 4,405   4,224   3,968
         International                                     4,691   4,109   3,463
                                                         -----------------------
Total                                                      9,096   8,333   7,431
                                                         -----------------------
Pharmaceutical -United States                             14,478  14,960  13,271
                International                              7,844   7,168   6,246
                                                         -----------------------
Total                                                     22,322  22,128  19,517
                                                         -----------------------
Medical Devices and Diagnostics -United States             9,494   8,586   8,035
                                 International             9,602   8,301   6,879
                                                         -----------------------
Total                                                     19,096  16,887  14,914
                                                         -----------------------
Worldwide total                                          $50,514  47,348  41,862
                                                         =======================
</TABLE>

<TABLE>
<CAPTION>
                                  Operating Profit         Identifiable Assets
                             --------------------------  -----------------------
(Dollars in Millions)        2005(5)   2004(6)  2003(7)   2005     2004    2003
- --------------------------------------------------------------------------------
<S>                          <C>       <C>      <C>      <C>      <C>     <C>
Consumer                     $ 1,667    1,514    1,393   $ 6,275   6,142   5,371
Pharmaceutical                 6,610    7,608    5,896    16,091  16,058  15,001
Medical Devices and            5,418    4,091    3,370    16,540  15,805  16,082
 Diagnostics                 ---------------------------------------------------
Segments total                13,695   13,213   10,659    38,906  38,005  36,454
Less: Expenses not                39      375      351
 allocated to segments(3)
General corporate(4)                                      19,119  15,312  11,809
                             ---------------------------------------------------
Worldwide total              $13,656   12,838   10,308   $58,025  53,317  48,263
                             ===================================================
</TABLE>

<TABLE>
<CAPTION>
                                   Additions to Property      Depreciation and
                                     Plant & Equipment          Amortization
                                --------------------------  --------------------
 (Dollars in Millions)            2005      2004      2003    2005   2004   2003
- --------------------------------------------------------------------------------
<S>                             <C>      <C>        <C>     <C>     <C>    <C>
Consumer                        $   321        227     229  $  232    222    246
Pharmaceutical                    1,388      1,197   1,236     918  1,008    765
Medical Devices and Diagnostics     785        630     639     821    769    761
                                ------------------------------------------------
Segments total                    2,494      2,054   2,104   1,971  1,999  1,772
General corporate                   138        121     158     122    125     97
                                ------------------------------------------------
Worldwide total                 $ 2,632      2,175   2,262  $2,093  2,124  1,869
                                ================================================
</TABLE>

<TABLE>
<CAPTION>
                                  Sales to Customers(2)     Long-Lived Assets(8)
                                 ----------------------  -----------------------
(Dollars in Millions)             2005     2004    2003    2005     2004    2003
- --------------------------------------------------------------------------------
<S>                             <C>      <C>     <C>     <C>      <C>     <C>
United States                   $28,377  27,770  25,274  $15,355  14,324  14,367
Europe                           12,187  11,151   9,483    5,646   6,142   5,193
Western Hemisphere excluding U.S. 3,087   2,589   2,236      957     748     772
Asia-Pacific, Africa              6,863   5,838   4,869      596     620     605
                                ------------------------------------------------
Segments total                   50,514  47,348  41,862   22,554  21,834  20,937
General corporate                                            451     444     448
Other non long-lived assets                               35,020  31,039  26,878
                                ------------------------------------------------
Worldwide total                 $50,514  47,348  41,862  $58,025  53,317  48,263
                                ================================================
</TABLE>

(1)  See Note 1 for a description of the segments in which the Company operates.
(2)  Export sales and intersegment sales are not significant. In 2005, the
     Company did not have a customer that represented 10% of total revenues.
     Sales to our top distributors accounted for 10.2% and 10.0% of total
     revenues in 2004 and 10.5% of total revenues in 2003.
(3)  Amounts not allocated to segments include interest (income)/expense,
     minority interest and general corporate (income)/expense.
(4)  General corporate includes cash and marketable securities.
(5)  Includes $302 million and $60 million of In-Process Research and
     Development (IPR&D) for the Pharmaceutical and Medical Devices and
     Diagnostics segments, respectively.
(6)  Includes $18 million of IPR&D in the Medical Devices and Diagnostics
     segment.
(7)  Includes $737 million of IPR&D in the Pharmaceutical segment and $181
     million of IPR&D and $230 million of an arbitration ruling on stent patents
     in the Medical Devices and Diagnostics segment.
(8)  Long-lived assets include property, plant and equipment, net for 2005, 2004
     and 2003 of $10,830, $10,436 and $9,846, respectively, and intangible
     assets, net for 2005, 2004 and 2003 of $12,175, $11,842 and $11,539,
     respectively.


PAGE 50                                     JOHNSON & JOHNSON 2005 ANNUAL REPORT
<PAGE>

<TABLE>
<CAPTION>
12. ACCUMULATED OTHER COMPREHENSIVE INCOME

Components of other comprehensive income/(loss) consist of the following:

                                                                                            Total
                                           Unrealized                      Gains/     Accumulated
                                Foreign        Gains/       Pension   (Losses) on           Other
                               Currency   (Losses) on     Liability   Derivatives   Comprehensive
(Dollars in Millions)       Translation    Securities   Adjustments      & Hedges   Income/(Loss)
- --------------------------------------------------------------------------------------------------
<S>                        <C>            <C>           <C>           <C>           <C>
Dec. 29, 2002              $       (707)           (2)          (33)         (100)           (842)
2003 changes
  Net change due to
    hedging transactions              -             -             -          (567)
  Net amount reclassed
    to net earnings                   -             -             -           487
  Net 2003 changes                  334            29           (31)          (80)            252
                           -----------------------------------------------------------------------
Dec. 28, 2003              $       (373)           27           (64)         (180)           (590)
2004 changes
  Net change due to
    hedging transactions              -             -             -            15
  Net amount reclassed
    to net earnings                   -             -             -            15
  Net 2004 changes                  268            59          (282)           30              75
                           -----------------------------------------------------------------------
Jan. 2, 2005               $       (105)           86          (346)         (150)           (515)
2005 changes
  Net change due to
    hedging transactions              -             -             -           112
  Net amount reclassed
    to net earnings                   -             -             -            53
  Net 2005 changes                 (415)          (16)           26           165            (240)
                           -----------------------------------------------------------------------
Jan. 1,2006                $       (520)           70          (320)           15            (755)
                           =======================================================================
</TABLE>

Total other comprehensive income for 2005 includes reclassification adjustment
gains of $23 million realized from the sale of equity securities and the
associated tax expense of $8 million. Total other comprehensive income for 2004
includes reclassification adjustment gains of $16 million realized from the sale
of equity securities and the associated tax expense of $6 million. Total other
comprehensive income for 2003 includes reclassification adjustment gains of $3
million realized from the sale of equity securities and the associated tax
expense of $1 million.
     The tax effect on the unrealized gains/(losses) on the equity securities
balance is an expense of $38 million, $47 million and $15 million in 2005, 2004
and 2003, respectively. The tax effect related to the minimum pension liability
was $160 million in 2005. The tax effect on the gains/(losses) on derivatives
and hedges are a loss of $11 million in 2005 and benefits of $81 million and
$99 million in 2004 and 2003, respectively. See Note 15 for additional
information relating to derivatives and hedging.
     The currency translation adjustments are not currently adjusted for income
taxes as they relate to permanent investments in international subsidiaries.



13. PENSIONS AND OTHER BENEFIT PLANS

The Company sponsors various retirement and pension plans, including defined
benefit, defined contribution and termination indemnity plans, which cover most
employees worldwide. The Company also provides postretirement benefits,
primarily health care, to all U.S. retired employees and their dependents.
     Many international employees are covered by government-sponsored programs
for which the direct cost to the Company is not significant.
     Retirement plan benefits are primarily based on the employee's compensation
during the last three to five years before retirement and the number of years of
service. International subsidiaries have plans under which funds are deposited
with trustees, annuities are purchased under group contracts or reserves are
provided.
     The Company does not fund retiree health care benefits in advance and has
the right to modify these plans in the future.
     The Company uses the date of its consolidated financial statements (January
1, 2006 and January 2, 2005, respectively) as the measurement date for all U.S.
and international retirement and other benefit plans.
     Net  periodic  benefit  cost  for  the Company's defined benefit retirement
plans  and  other  benefit  plans for 2005, 2004 and 2003 included the following
components:

<TABLE>
<CAPTION>
                                        Retirement Plans     Other Benefit Plans
                                      ---------------------  -------------------
(Dollars in Millions)                  2005   2004   2003    2005   2004   2003
- --------------------------------------------------------------------------------
<S>                                   <C>     <C>    <C>    <C>     <C>    <C>
Service cost                          $ 462    409    325   $  56     56     28
Interest cost                           488    444    391      87     91     70
Expected return on plan assets         (579)  (529)  (495)     (3)    (3)    (3)
Amortization of prior service cost       12     15     18      (7)    (4)    (3)
Amortization of net transition asset     (2)    (3)    (4)      -      -      -
Recognized actuarial losses             219    173    109      25     27      3
Curtailments and settlements              2      3      1       -      -      -
Special termination benefits              -      -     95       -      -      -
- --------------------------------------------------------------------------------
Net periodic benefit cost             $ 602    512    440   $ 158    167     95
                                      ==========================================
</TABLE>


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS                               PAGE 51
<PAGE>
The net periodic benefit cost attributable to U.S. retirement plans was $370
million in 2005, $329 million in 2004 and $309 million in 2003.
     During 2003, the Company offered a voluntary retirement program with
enhanced benefits called the Retirement Enhancement Program (REP) to eligible
U.S. regular, full-time employees who have attained age 55 with at least 10
years of pension credited service by June 30, 2004. The program enhancements
included the elimination of the early retirement reduction for pension benefit
purposes (normally 4% per year prior to age 62) and a special termination
benefit (one week of pay per year of credited service). The program resulted in
a one-time increase in U.S. pension expense of $95 million in 2003 to reflect
the value of the retirement enhancement.
     The weighted-average assumptions in the following table represent the rates
used to develop the actuarial present value of projected benefit obligation for
the year listed and also the net periodic benefit cost for the following year.

<TABLE>
<CAPTION>
                                             Retirement Plans       Other Benefit Plans
- -----------------------------------------------------------------------------------------
U.S. Benefit Plans                       2005   2004  2003  2002  2005   2004  2003  2002
- -----------------------------------------------------------------------------------------
<S>                                      <C>    <C>   <C>   <C>   <C>    <C>   <C>   <C>
Discount rate                            5.75%  5.75  6.00  6.75  5.75%  5.75  6.00  6.75
Expected long-term rate of return
  on plan assets                         9.00   9.00  9.00  9.00  9.00   9.00  9.00  9.00
Rate of increase in compensation levels  4.50   4.50  4.50  4.50  4.50   4.50  4.50  4.50

INTERNATIONAL BENEFIT PLANS
- -----------------------------------------------------------------------------------------
Discount rate                            4.75%  5.00  5.25  5.75  5.00%  5.50  6.00  6.75
Expected long-term rate of return
  on plan assets                         8.25   8.00  7.50  7.50     -      -     -     -
Rate of increase in compensation levels  3.75   3.75  3.50  3.50  4.25   4.25  4.25  4.25
                                         ================================================
</TABLE>

The Company's discount rates are determined by considering current yield curves
representing high quality, long-term fixed income instruments. The resulting
discount rates are consistent with the duration of plan liabilities.

     The expected long-term rate of return on plan assets assumptions is
determined using a building block approach, considering historical averages and
real returns of each asset class. In certain countries, where historical returns
are not meaningful, consideration is given to local market expectations of
long-term returns.

     The following table displays the assumed health care cost trend rates, for
all individuals:

<TABLE>
<CAPTION>
HEALTH CARE PLANS                                   2005   2004
- ---------------------------------------------------------------
<S>                                                 <C>    <C>
Health care cost trend rate assumed for next year   9.00%  9.00
Rate to which the cost trend rate is assumed
  to decline (ultimate trend)                       4.50%  4.50
Year the rate reaches the ultimate trend rate       2010   2010
                                                    ===========
</TABLE>

A one-percentage-point change in assumed health care cost trend rates would have
the following effect:

<TABLE>
<CAPTION>
                                    One-Percentage-    One-Percentage-
(Dollars in Millions)                Point Increase    Point Decrease
- -----------------------------------------------------------------------
<S>                                 <C>               <C>
HEALTH CARE PLANS
- -----------------------------------------------------------------------
Total interest and service cost     $             25  $            (20)
Postretirement benefit obligation                257              (206)
=======================================================================
</TABLE>


PAGE 52                                     JOHNSON & JOHNSON 2005 ANNUAL REPORT
<PAGE>
The following table sets forth information related to the benefit obligation and
the fair value of plan assets at year-end 2005 and 2004 for the Company's
defined benefit retirement plans and other postretirement plans:



<TABLE>
<CAPTION>
(Dollars in Millions)                                  Retirement Plans         Other Benefit Plans
- ------------------------------------------------------------------------------------------------------
CHANGE IN BENEFIT OBLIGATION                          2005         2004          2005         2004
- ------------------------------------------------------------------------------------------------------
<S>                                               <C>           <C>          <C>           <C>
Projected benefit obligation - beginning of year  $     8,941        7,680   $     1,593        1,329
Service cost                                              462          409            56           56
Interest cost                                             488          444            87           91
Plan participant contributions                             22           21             -            -
Amendments                                                 13          (65)            -          (46)
Actuarial losses                                          932          609            57          229
Divestitures & acquisitions                                 -           (1)            -            -
Curtailments & settlements                                 (1)          (7)            -            -
Benefits paid from plan                                  (366)        (401)          (75)         (73)
Effect of exchange rates                                 (320)         252            (1)           7
                                                  ----------------------------------------------------
Projected benefit obligation -end of year         $    10,171        8,941   $     1,717        1,593
                                                  ====================================================
CHANGE IN PLAN ASSETS
- ------------------------------------------------------------------------------------------------------
Plan assets at fair value -beginning of year      $     7,125        6,050   $        37           39
Actual return on plan assets                              801          713             1            4
Company contributions                                     714          531            71           65
Plan participant contributions                             22           21             -            -
Divestitures                                                -           (2)            -            -
Benefits paid from plan assets                           (366)        (359)          (75)         (71)
Effect of exchange rates                                 (188)         171             -            -
                                                  ----------------------------------------------------
Plan assets at fair value-end of year             $     8,108        7,125   $        34           37
                                                  ====================================================
</TABLE>

Strategic asset allocations are determined by country, based on the nature of
the liabilities and consideration of the demographic composition of the plan
participants (average age, years of service and active versus retiree status).
The Company's plans are considered non-mature plans and the long-term strategic
asset allocations are consistent with these types of plans. Emphasis is placed
on diversifying equities on a broad basis combined with currency matching of the
fixed income assets.

The following table displays the projected future benefit payments from the
Company's retirement and other benefit plans:

<TABLE>
<CAPTION>
(Dollars in Millions)
- -------------------------------------------------------------------------------
PROJECTED FUTURE BENEFIT PAYMENTS  2006   2007   2008   2009   2010   2011-2015
- -------------------------------------------------------------------------------
<S>                               <C>     <C>    <C>    <C>    <C>    <C>
Retirement plans                  $ 357    374    379    404    416       2,583
===============================================================================
Other benefit plans -gross        $  79     84     89     95    100         587
Medicare rebates                     (5)    (6)    (6)    (7)    (8)        (49)
- -------------------------------------------------------------------------------
Other benefit plans -net          $  74     78     83     88     92         538
===============================================================================
</TABLE>

The Company is not required to fund its U.S. retirement plans in 2006 in order
to meet minimum statutory funding requirements. International plans will be
funded in accordance with local regulations. Additional discretionary
contributions will be made when deemed appropriate to meet the long-term
obligations of the plans. In certain countries other than the U.S., the funding
of pension plans is not a common practice as funding provides no economic
benefit. Consequently, the Company has several pension plans which are not
funded.

The following table displays the projected future minimum contributions to the
Company's U.S. and international unfunded retirement plans. These amounts do not
include any discretionary contributions that the Company may elect to make in
the future.

<TABLE>
<CAPTION>
(Dollars in Millions)
- --------------------------------------------------------------------------------
PROJECTED FUTURE CONTRIBUTIONS          2006   2007  2008  2009  2010  2011-2015
- --------------------------------------------------------------------------------
<S>                                     <C>    <C>   <C>   <C>   <C>   <C>
Unfunded U.S. retirement plans          $  21    22    23    24    25        140
- --------------------------------------------------------------------------------
Unfunded International retirement plans $  16    18    18    20    21        127
================================================================================
</TABLE>


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS                               PAGE 53
<PAGE>

<TABLE>
<CAPTION>
The Company's retirement plan asset allocation at January 1, 2006 and January 2,
2005 and target allocations for 2006 are as follows:

                                       Percent of          Target
                                       Plan Assets       Allocation
- --------------------------------------------------------------------
U.S. RETIREMENT PLANS              2005         2004        2006
- --------------------------------------------------------------------
<S>                             <C>          <C>         <C>
Equity securities                       76%         76%          75%
Debt securities                         24          24           25
                                ------------------------------------
Total plan assets                      100%        100%         100%
                                ====================================
INTERNATIONAL RETIREMENT PLANS
- --------------------------------------------------------------------
Equity securities                       69%         69%          75%
Debt securities                         30          30           25
Real estate and other                    1           1            -
                                ------------------------------------
Total plan assets                      100%        100%         100%
                                ====================================
</TABLE>

The Company's other benefit plans are unfunded except for U.S. life insurance
contract assets of $34 million and $37 million at January 1, 2006 and January 2,
2005, respectively.
     The fair value of Johnson & Johnson common stock directly held in plan
assets was $419 million (5.2% of total plan assets) and $440 million (6.2% of
total plan assets) at January 1, 2006 and January 2, 2005, respectively.

Amounts recognized in the Company's balance sheet consist of the following:

<TABLE>
<CAPTION>
                                                          Retirement Plans         Other Benefit Plans
- ---------------------------------------------------------------------------------------------------------
(Dollars in Millions)                                    2005         2004          2005         2004
- ---------------------------------------------------------------------------------------------------------
<S>                                                  <C>           <C>          <C>           <C>
Plan assets at fair value                            $     8,108        7,125   $        34           37
Projected benefit obligation                              10,171        8,941         1,717        1,593
                                                     ----------------------------------------------------
Funded status                                             (2,063)      (1,816)       (1,683)      (1,556)
Unrecognized actuarial losses                              2,484        2,055           574          541
Unrecognized prior service cost                               49           46           (48)         (56)
Unrecognized net transition asset                              5            3
                                                     ----------------------------------------------------
Total recognized in the consolidated balance sheet   $       475          288   $    (1,157)      (1,071)
                                                     ====================================================
Book accruals                                        $    (1,264)      (1,109)  $    (1,157)      (1,071)
Prepaid benefits                                           1,218        1,001             -            -
Intangible assets                                             41           50             _            _
Accumulated comprehensive income                             480          346             -            -
                                                     ----------------------------------------------------
Total recognized in the consolidated balance sheet   $       475          288   $    (1,157)      (1,071)
                                                     ====================================================
</TABLE>

The accumulated benefit obligation for all U.S. and international defined
benefit retirement plans was $8,570 million and $7,488 million at January 1,
2006 and January 2, 2005, respectively.
     A minimum pension liability adjustment is required when the actuarial
present value of the accumulated benefits obligation (ABO) exceeds the fair
value of plan assets and accrued pension liabilities. The minimum pension
liabilities (intangible assets and accumulated comprehensive income) in 2005 and
2004 of $521 million and $396 million, respectively, relate primarily to plans
outside of the U.S.

     Plans with accumulated benefit obligations in excess of plan assets consist
of the following:

<TABLE>
<CAPTION>
                                     Retirement Plans
                                 -------------------------
Dollars in Millions)                 2005         2004
- ----------------------------------------------------------
<S>                              <C>           <C>
Accumulated benefit obligation   $    (2,759)      (2,703)
Projected benefit obligation          (3,230)      (3,327)
Plan assets at fair value              1,570        1,727
                                 =========================
</TABLE>


PAGE 54                                     JOHNSON & JOHNSON 2005 ANNUAL REPORT
<PAGE>
On December 8, 2003, the Medicare Prescription Drug Improvement and
Modernization Act of 2003 was enacted that introduces a prescription drug
benefit under Medicare as well as a subsidy to sponsors of retiree health care
benefit plans. The Company's application to the Centers for Medicare and
Medicaid Services attesting to the plan's "actuarial equivalence" to Medicare
has been accepted, and subsidy reimbursements are expected beginning in 2006.
There is no change in estimated participation rates or per capita claims costs
as a result of the Act. The Company has recognized the effect of the subsidy on
a prospective basis from June 28, 2004. The recognition reduces before-tax and
after-tax expense by $16 million and the accumulated postretirement benefit
obligation by $163 million.

14. CASH EQUIVALENTS AND MARKETABLE SECURITIES

<TABLE>
<CAPTION>
                                                  January 1,2006                      January 2, 2005
                                      -------------------------------------  ------------------------------------
                                       Amortized      Unrealized  Estimated  Amortized      Unrealized  Estimated
(Dollars in Millions)                       Cost  Gains/(Losses)  FairValue       Cost  Gains/(Losses)  FairValue
- -----------------------------------------------------------------------------------------------------------------
<S>                                   <C>         <C>             <C>        <C>        <C>             <C>
CURRENT INVESTMENTS
- -----------------------------------------------------------------------------------------------------------------
Government securities
  and obligations                     $    1,743               -      1,743      4,213             (1)      4,212
Corporate debt securities                     67               -         67      2,798             (1)      2,797
Money market funds                        11,918               -     11,918      2,153              -       2,153
Time deposits                                985               -        985      1,325              -       1,325
Collateralized mortgage obligations
  and asset backed securities                  -               -          -        397              -         397
Bank notes                                     -               -          -         20              -          20
                                      ---------------------------------------------------------------------------
Total cash equivalents and current
  marketable securities               $   14,713               -     14,713     10,906             (2)     10,904
                                      ===========================================================================
NON-CURRENT INVESTMENTS
- -----------------------------------------------------------------------------------------------------------------
Marketable securities                 $       20               -         20         46              -          46
                                      ===========================================================================
</TABLE>

Current marketable securities include $14.6 billion and $7.2 billion that are
classified as cash equivalents on the balance sheet at January 1, 2006 and
January 2, 2005, respectively.


15. FINANCIAL INSTRUMENTS

The Company follows the provisions of SFAS 133 requiring that all derivative
instruments be recorded on the balance sheet at fair value.
     As of January 1, 2006, the balance of deferred net gains on derivatives
included in accumulated other comprehensive income was $15 million after-tax.
For additional information, see Note 12. The Company expects that substantially
all of this amount will be reclassified into earnings over the next 12 months as
a result of transactions that are expected to occur over that period. The
maximum length of time over which the Company is hedging transaction exposure is
18 months. The amount ultimately realized in earnings will differ as foreign
exchange rates change. Realized gains and losses are ultimately determined by
actual exchange rates at maturity of the derivative. Derivative gains/(losses),
initially reported as a component of other comprehensive income, are
reclassified to earnings in the period when the forecasted transaction affects
earnings.
     For the years ended January 1, 2006, January 2, 2005 and December 28, 2003,
the net impact of hedge ineffectiveness, transactions not qualifying for hedge
accounting and discontinuance of hedges, to the Company's financial statements
was insignificant.
     Refer to Note 12 for disclosures of movements in Accumulated Other
Comprehensive Income.

CONCENTRATION OF CREDIT RISK

     The Company invests its excess cash in both deposits with major banks
throughout the world and other high quality money market instruments. The
Company has a policy of making investments only with commercial institutions
that have at least an A (or equivalent) credit rating. On average, these
investments mature within six months, and the Company has not incurred any
related losses.

16. SAVINGS PLAN

The Company has voluntary 401(k) savings plans designed to enhance the existing
retirement programs covering eligible employees. The Company matches a
percentage of each employee's contributions consistent with the provisions of
the plan for which he/she is eligible.
     In the U.S. salaried plan, through 2004, one-third of the Company match was
paid in Company stock under an employee stock ownership plan (ESOP) unless the
employee chose to


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS                               PAGE 55
<PAGE>
redirect his or her investment. In 1990, to establish the ESOP, the Company
loaned $100 million to the ESOP Trust to purchase shares of the Company stock on
the open market. In exchange, the Company received a note, the balance of which
was recorded as a reduction of shareholders' equity. The remaining shares held
by the ESOP trust were allocated to participant accounts by the end of February
2005. From March 2005, and going forward, all company match will be made in cash
and will follow the individual employee's investment elections.
     Total Company contributions to the plans were $148 million in 2005, $143
million in 2004 and $128 million in 2003.

17. MERGERS, ACQUISITIONS AND DIVESTITURES

Certain  businesses  were  acquired for $987 million in cash and $141 million of
liabilities  assumed  during  2005. These acquisitions were accounted for by the
purchase  method  and,  accordingly, results of operations have been included in
the  financial  statements  from  their  respective  dates  of  acquisition.
     The  2005 acquisitions included: TransForm Pharmaceuticals, Inc., a company
specializing  in  the  discovery  of superior formulations and novel crystalline
forms  of  drug molecules; Closure Medical Corporation, a company with expertise
and intellectual property in the biosurgicals market; Peninsula Pharmaceuticals,
Inc.,  a  biopharmaceutical  company  focused  on developing and commercializing
antibiotics to treat life-threatening infections; and rights to all consumer and
professionally  dispensed  REMBRANDT(R)  Brand  of  oral  care products, such as
whitening  toothpastes,  strips,  systems  and  mouth  rinses.
     The excess of purchase price over the estimated fair value of tangible
assets acquired amounted to $720 million and has been assigned to identifiable
intangible assets, with any residual recorded to goodwill. Approximately $362
million has been identified as the value of in-process research and development
(IPR&D) primarily associated with the acquisitions of TransForm Pharmaceuticals,
Inc., Closure Medical Corporation and Peninsula Pharmaceuticals, Inc.
     The  IPR&D  charge related to the acquisition of TransForm Pharmaceuticals,
Inc.  was  $50  million and is associated with research related to the discovery
and  application of superior formulations. The value of the IPR&D was calculated
using  cash  flow projections discounted for the risk inherent in such projects.
The  discount  rate  applied  was  10%.
     The IPR&D charge related to the acquisition of Closure Medical Corporation
was $51 million and is associated with the OMNEX(TM) Surgical Sealant in
vascular indications outside Europe and in other potential indications
worldwide. The value of the IPR&D was calculated using cash flow projections
discounted for the risk inherent in such projects. A probability of success
factor of 90% for vascular indications and 60% for all other indications was
used to reflect inherent clinical and regulatory risk. The discount rate applied
to both vascular and other indications was 15%.
     The  IPR&D  charge related to the acquisition of Peninsula Pharmaceuticals,
Inc. was $252 million and is associated with the development of doripenem, which
is  in  Phase  III  clinical trials. The value of the IPR&D was calculated using
cash  flow  projections  discounted  for  the  risk inherent in such projects. A
probability  of  success factor of 80% was used to reflect inherent clinical and
regulatory  risk  and  the  discount  rate  applied  was  14%.
     The remaining $9 million in IPR&D was associated with the acquisition of
international commercial rights to certain patents and know-how in the field of
sedation and analgesia from Scott Lab, Inc. The value of the IPR&D was
calculated using cash flow projections discounted for the risk inherent in such
projects. The discount rate was 17%.
     Certain businesses were acquired for $455 million in cash and $15 million
of liabilities assumed during 2004. These acquisitions were accounted for by the
purchase method and, accordingly, results of operations have been included in
the financial statements from their respective dates of acquisition.
     In addition, per the terms of the 2003 acquisition agreement with the Link
Spine Group, Inc., $125 million in cash was paid to the owners of the Link Spine
Group, Inc. in 2004 based on the date the U.S. Food and Drug Administration
(FDA) approved the CHARITE (TM) Artificial Disc. Thus, the 2004 total cash
expenditures related to acquisitions were $580 million.
     The 2004 acquisitions included: Merck's 50% interest in the Johnson &
Johnson-Merck Consumer Pharmaceuticals Co. European non-prescription
pharmaceutical joint venture including all of the infrastructure and brand
assets managed by the European joint venture; Egea Biosciences, Inc. through the
exercise of the option to acquire the remaining outstanding stock not owned by
Johnson & Johnson, which has developed a proprietary technology platform called
Gene Writer, that allows for the rapid and highly accurate synthesis of DNA
sequences, gene assembly, and construction of large synthetic gene libraries;
Artemis Medical, Inc., a privately held company with ultrasound and x-ray
visible biopsy site breast markers as well as hybrid markers; U.S. commercial
rights to certain patents and know-how in the field of sedation and analgesia
from Scott Lab, Inc.; Biapharm SAS, a privately held French producer and
marketer of skin care products centered around the leading brand BIAFINE(R); the
assets of Micomed, a privately owned manufacturer of spinal implants primarily
focused on supplying the German market; and the acquisition of the AMBI(R) skin
care brand for women of color.
     The excess of purchase price over the estimated fair value of tangible
assets acquired amounted to $425 million and has been assigned to identifiable
intangible assets, with any residual recorded to goodwill. The $125 million
related to the U.S. FDA approval of the CHARITE (TM) Artificial Disc was
recorded as additional goodwill associated with the 2003 Link Spine Group, Inc.
acquisition. Thus, total additions to intangibles and goodwill in 2004 were $550
million. Approximately $18 million has been identified as the value of IPR&D
associated with the Scott Lab, Inc. acquisition. The value of the IPR&D was
calculated using cash flow projections discounted for the risk inherent in such
projects. The discount rate was 25%.
     Certain businesses were acquired for $2.8 billion in cash and $323 million
of liabilities assumed during 2003. These acquisitions were accounted for by the
purchase method and, accordingly, results of operations have been included in
the financial statements from their respective dates of acquisition.
     The 2003 acquisitions included: Link Spine Group, Inc., a privately owned
corporation with exclusive worldwide rights


PAGE 56                                     JOHNSON & JOHNSON 2005 ANNUAL REPORT
<PAGE>
to the CHARITE(TM) Artificial Disc; Scios Inc., a biopharmaceutical company with
a marketed product for cardiovascular disease and research projects focused on
auto-immune diseases; 3-Dimensional Pharmaceuticals, Inc., a company with a
technology platform focused on the discovery and development of therapeutic
small molecules; OraPharma, Inc., a specialty pharmaceutical company focused on
the development and commercialization of unique oral therapeutics; and certain
assets of Orquest, Inc., a privately held biotechnology company focused on
developing biologically-based implants for orthopaedics and spine surgery.
     The excess of purchase price over the estimated fair value of tangible
assets acquired amounted to $1.8 billion and has been assigned to identifiable
intangible assets, with any residual recorded to goodwill. Approximately $918
million has been identified as the value of IPR&D primarily associated with the
acquisition of Link Spine Group, Inc. and Scios Inc.
     The IPR&D charge related to the Link Spine Group, Inc. acquisition was $170
million and is associated with the CHARITE(TM) Artificial Disc. The value of the
IPR&D was calculated using cash flow projections discounted for the risk
inherent in such projects. A probability of success factor of 95% was used to
reflect inherent clinical and regulatory risk. The discount rate was 19%. The
purchase price for the Link Spine Group, Inc. acquisition was allocated to the
tangible and identifiable intangible assets acquired and liabilities assumed
based on their estimated fair values at the acquisition date. The excess of the
purchase price over the fair values of assets and liabilities acquired was
approximately $84 million and was allocated to goodwill. Substantially all of
the amount allocated to goodwill will not be deductible for tax purposes.
     The IPR&D charge related to Scios Inc. was $730 million and is largely
associated with its p-38 kinase inhibitor program. The value of the IPR&D was
calculated using cash flow projections discounted for the risk inherent in such
projects using a 16% probability of success factor and a 9% discount rate. The
purchase price for the Scios Inc. acquisition was allocated to the tangible and
identifiable intangible assets acquired and liabilities assumed based on their
estimated fair values at the acquisition date. Identifiable intangible assets
included patents and trademarks valued at approximately $1.5 billion. The excess
of the purchase price over the fair values of assets and liabilities acquired
was approximately $440 million and was allocated to goodwill. Substantially all
of the amount allocated to goodwill will not be deductible for tax purposes.
     The remaining IPR&D was associated with Orquest, Inc., and 3-Dimensional
Pharmaceuticals, Inc., with charges of $11 million and $7 million, respectively.
     Supplemental pro forma information  for 2005, 2004 and 2003 per SFAS No.
141, Business  Combinations, and SFAS No. 142, Goodwill and Other Intangible
Assets, is not provided, as the impact of the aforementioned acquisitions did
not have a material effect on the Company's results of operations, cash flows or
financial position.
     Divestitures in 2005, 2004 and 2003 did not have a material effect on the
Company's results of operations, cash flows or financial position.

18. LEGAL PROCEEDINGS

PRODUCT LIABILITY
The Company is involved in numerous product liability cases in the United
States, many of which concern adverse reactions to drugs and medical devices.
The damages claimed are substantial, and while the Company is confident of the
adequacy of the warnings and instructions for use that accompany such products,
it is not feasible to predict the ultimate outcome of litigation. However, the
Company believes that if any liability results from such cases, it will be
substantially covered by existing amounts accrued in the Company's balance
sheet, and where available by third-party product liability insurance.
     One group of cases against the Company concerns a product of the Company's
subsidiary, Janssen Pharmaceutica Inc. (Janssen), PROPULSID(R) (cisapride),
which was withdrawn from general sale and restricted to limited use in 2000. In
the wake of publicity about those events, numerous lawsuits were filed against
Janssen and the Company regarding PROPULSID(R) in state and federal courts
across the country.
     These actions seek substantial compensatory and punitive damages and accuse
Janssen and the Company of inadequately testing for and warning about the drug's
side effects, of promoting it for off-label use and over promotion. In addition,
Janssen and the Company have entered into tolling agreements with various
plaintiffs' counsel halting the running of the statutes of limitations with
respect to the potential claims of a significant number of individuals while
those attorneys evaluate whether or not to sue Janssen and the Company on their
behalf.
     On February 5, 2004, Janssen announced that it had reached an agreement in
principle with the Plaintiffs Steering Committee (PSC) of the PROPULSID(R)
Federal Multi-District Litigation (MDL), to resolve federal lawsuits related to
PROPULSID(R). The agreement was to become effective once 85% of the death
claimants, and 75% of the remainder, agreed to the terms of the settlement. In
addition, 12,000 individuals who had not filed lawsuits, but whose claims were
the subject of tolling agreements suspending the running of the statutes of
limitations against those claims, also had to agree to participate in the
settlement before it became effective.
     On March 24, 2005, it was confirmed that the PSC of the MDL had enrolled
enough plaintiffs and claimants in the settlement program to make the agreement
effective. Of the 282 death plaintiffs subject to the program, 267 (94%) are
confirmed enrolled. Of the 3,538 other plaintiffs subject to the program,
3,189 (90%) are confirmed enrolled. In addition, 19,865 "tolled" claimants are
confirmed as enrolled. Those participating in the settlement will submit medical
records to an independent panel of physicians who will determine whether the
claimed injuries were caused by PROPULSID(R) and otherwise meet the standards
for compensation. If those standards are met, a court-appointed special master
will determine compensatory damages. Janssen has paid into a compensation escrow
account $82.6 million, established an administrative fund of $15 million, and
paid legal fees to the PSC of $22.5 million, which amount was approved by the
court.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS                               PAGE 57
<PAGE>
     Not participating in the settlement program are 2,407 plaintiffs and 7,723
tolled claimants. Of those, 329 plaintiffs are potentially subject to the MDL
settlement but did not enroll in it; 1,529 plaintiffs filed cases in federal
court subsequent to February 1, 2004, and thus are not subject to the MDL
settlement; and 529 have state court actions and thus are not subject to the
settlement. Of those not participating in or subject to the MDL settlement, 133
plaintiffs  are alleged to have died from use of the drug and 2,274 assert other
personal injury claims. The nature of the claims of the tolled claimants are
unknown. Of the remaining federal and state plaintiffs, 2,264 cases (94%) are
venued in Mississippi.
     On December 15, 2005, Janssen reached agreement with the MDL PSC and the
plaintiffs' State Liaison Committee (SLC) to create a second settlement program
for resolving the remaining state and federal lawsuits filed before November 15,
2005, as well as remaining unfiled claims subject to tolling agreements. The new
program becomes effective once 90% of the plaintiffs representing decedents and
95% of the other plaintiffs agree to the terms of the settlement. The new
program allows enrollment by any claimant who was eligible for the prior
settlement program but chose not to enroll, plus state court plaintiffs and
federal court plaintiffs filing after February 1, 2004, and thus not eligible.
Janssen will pay as compensation a minimum of $14.5 million and a maximum of $15
million into the new settlement program, depending upon the percentage of
enrollment above the 90% and 95% thresholds. Janssen will also establish an
administrative fund not to exceed $3 million and pay legal fees not to exceed $4
million subject to court approval.
     Janssen and the Company believe they have adequate self-insurance accruals
and third-party product liability insurance with respect to these cases. In
communications to the Company, the excess insurance carriers have raised certain
defenses to their liability under the policies and to date have declined
voluntarily to reimburse Janssen and the Company for PROPULSID(R)-related costs
despite demand for payment. In May 2005, hearings were held in London in the
arbitration proceeding commenced by Janssen and the Company against Allianz
Underwriters Insurance Company, which issued the first layer of applicable
excess insurance coverage, to obtain reimbursement of PROPULSID(R)-related
costs. That proceeding was resolved in a fashion satisfactory to Janssen and the
Company in November 2005. In May 2005, the Company commenced arbitration against
Lexington Insurance Company, which issued the second layer of excess insurance
coverage. In the opinion of the Company, the excess carriers remain legally
obligated to provide coverage for the PROPULSID(R)-related losses at issue.

AFFIRMATIVE STENT PATENT LITIGATION

In patent infringement actions tried in Delaware Federal District Court in late
2000, Cordis Corporation (Cordis), a subsidiary of Johnson & Johnson, obtained
verdicts of infringement and patent validity, and damage awards against Boston
Scientific Corporation (Boston Scientific) and Medtronic AVE, Inc. (Medtronic)
based on a number of Cordis vascular stent patents. On December 15, 2000, the
jury in the damage action against Boston Scientific returned a verdict of $324
million and on December 21, 2000, the jury in the Medtronic action returned a
verdict of $271 million. These sums represent lost profit and reasonable royalty
damages to compensate Cordis for infringement but do not include pre or post
judgment interest.
     In March and May 2002, the district judge granted Boston Scientific a new
trial on liability and damages and vacated the verdict against Medtronic on
legal grounds. On August 12, 2003, the Court of Appeals for the Federal Circuit
found the trial judge erred in vacating the verdict against Medtronic and
remanded the case to the trial judge for further proceedings. In March 2005, the
remaining issues were tried in the remanded case against Medtronic and the
retrial proceeded against Boston Scientific. Juries returned verdicts of
infringement and patent validity in favor of Cordis in both retrials. Cordis has
requested the trial court to reinstate with interest the verdicts obtained
against those entities in 2000. Defendants in both cases have filed post-trial
motions seeking to vacate the jury verdicts or, alternatively, grant them a new
trial on damages. Cordis also has pending in Delaware Federal District Court a
second action against Medtronic AVE accusing Medtronic of infringement by sale
of stent products introduced by Medtronic subsequent to its GFX(R) and
MicroStent(R) products, the subject of the earlier action referenced above. That
second action was stayed in April 2005 pending the outcome of an arbitration
held in late 2005 concerning Medtronic's claim that the products at issue in
that case are licensed pursuant to a 1997 license.
     In January 2003, Cordis filed a patent infringement action against Boston
Scientific in Delaware Federal District Court accusing its Express2(TM),Taxus(R)
and Liberte stents of infringing the Palmaz patent that expired in November
2005. The Liberte stent was also accused of infringing Cordis' Gray patent that
expires in 2016. In June 2005, a jury found that the Express2(TM), Taxus(R) and
Liberte stents infringed the Palmaz patent and that the Liberte stent also
infringed the Gray patent. Boston Scientific has filed post-trial motions
seeking to vacate the verdict or obtain a new trial. If those motions are
denied, there will be a trial on damages and willfulness in the future.


PAGE 58                                     JOHNSON & JOHNSON 2005 ANNUAL REPORT
<PAGE>
PATENT LITIGATION AGAINST VARIOUS
JOHNSON & JOHNSON SUBSIDIARIES

     The products of various Johnson & Johnson subsidiaries are the subject of
various patent lawsuits, the outcomes of which could potentially adversely
affect the ability of those subsidiaries to sell those products, or require the
payment of past damages and future royalties. With respect to all of these
matters, the Johnson & Johnson subsidiary involved is vigorously defending
against the claims of infringement and disputing, where appropriate, the
validity and enforceability of the patent claims asserted against it. On July 1,
2005, a jury in Federal District Court in Delaware found that the Cordis
CYPHER(R) stent infringed Boston Scientific's Ding `536 patent and that the
Cordis CYPHER(R) and BX VELOCITY(R) stents also infringed Boston Scientific
Corporation's Jang `021 patent. The jury also found both those patents valid.
Cordis has asked the judge to overturn the jury verdicts or grant a new trial.
If the judge does not overturn the jury verdicts, there will be a damage and
willfulness trial in 2006 and Boston Scientific will seek an injunction against
CYPHER(R). If upheld by the trial court, Cordis will appeal the jury verdicts to
the Court of Appeals for the Federal Circuit.
     In March 2006, Boston Scientific's case asserting infringement by the
CYPHER(R) stent of another Boston Scientific patent is scheduled for trial in
Delaware Federal District Court. In that case as well, Boston Scientific seeks
an injunction and substantial damages.
     On January 26, 2005, the Federal District Court for the Southern District
of Florida granted Cordis summary judgment dismissing a breach of contract and
patent infringement suit filed against Cordis by Arlaine and Gina Rockey seeking
royalties on the sales of all Cordis balloon expandable stents. Plaintiffs
have filed an appeal with the Court of Appeals for the Federal Circuit.
     In an action filed in Belgium by Boston Scientific under its Kastenhofer
patent, Boston Scientific is seeking a pan-European injunction against the sale
of infringing catheters, i.e., an injunction that would be effective not just in
Belgium but in all of the countries served by the European Patent Office. Trial
has not been scheduled but could occur during 2006.
     The following chart summarizes various patent lawsuits concerning products
of Johnson & Johnson subsidiaries.

<TABLE>
<CAPTION>
                     J&J                       Plaintiff/
Product              Company      Patents      Patent Holder            Court          Trial Date  Date Filed
=============================================================================================================
<S>                  <C>          <C>          <C>                      <C>            <C>         <C>
Drug Eluting Stents  Cordis       Grainger     Boston Scientific Corp.  D. Del.              3/06       12/03
- -------------------------------------------------------------------------------------------------------------
Stents               Cordis       Boneau       Medtronic Inc.           D. Del.                 *        4/02
- -------------------------------------------------------------------------------------------------------------
Two-layer Catheters  Cordis       Kastenhofer  Boston Scientific Corp.  N.D. Cal                *        2/02
                                  Forman                                Belgium                         12/03
- -------------------------------------------------------------------------------------------------------------
Stents               Cordis       Israel       Medinol                  Multiple E.U.           *        5/03
                                                                        jurisdictions
- -------------------------------------------------------------------------------------------------------------
Contact Lenses       Vision Care  Nicolson     CIBA Vision              M.D. Fla.               *        9/03
- -------------------------------------------------------------------------------------------------------------
</TABLE>

* Trial date to be established.

LITIGATION AGAINST FILERS OF ABBREVIATED NEW DRUG
APPLICATIONS (ANDAS)

The following chart indicates lawsuits pending against generic firms that filed
Abbreviated New Drug Applications seeking to market generic forms of products
sold by various subsidiaries of the Company prior to expiration of the
applicable patents covering those products. These ANDAs typically include
allegations of non-infringement, invalidity and unenforceability of these
patents. In the event the subsidiary of the Company involved is not successful
in these actions, or the 30-month stay expires before a ruling from the district
court is obtained, the firms involved will have the ability to introduce generic
versions of the product at issue resulting in very substantial market share and
revenue losses for the product of the Company's subsidiary.
     As previously communicated and noted from the following chart, 30-month
stays are scheduled to expire during 2006 with respect to ANDA challenges
regarding ORTHO TRI-CYCLEN(R) LO, RISPERDAL(R) and TOPAMAX(R). Trial did not
occur before the expiration of the stays with respect to ORTHO TRI-CYCLEN(R) LO,
is unlikely to occur with respect to RISPERDAL(R), but could occur in the case
of TOPAMAX(R). Unless 30-month stays are extended or preliminary injunctions
granted, outcomes which are uncertain, final FDA approval to market will occur
shortly after expiration of the 30-month stays. Because a firm that launches an
ANDA product before trial would be liable potentially for lost profits if found
at trial to infringe a valid patent, typically ANDA products are not launched
under such circumstances. Nonetheless, such "at risk" launches have occurred in
cases involving drugs of Johnson & Johnson subsidiaries, and the risk of such a
launch cannot be ruled out.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS                               PAGE 59
<PAGE>
<TABLE>
<CAPTION>
Brand Name                     Patent/NDA       Generic                      Trial  Date   30-Month
Product                        Holder           Challenger       Court       Date   Filed  Stay Expires
=======================================================================================================
<S>                            <C>              <C>              <C>         <C>    <C>    <C>
ACIPHEX(R) 20 mg delay         Eisai            Teva             S.D.N.Y.    *      11/03  02/07
release tablet                 (for Janssen)    Dr. Reddy's      S.D.N.Y.    *      11/03  02/07
                                                Mylan            S.D.N.Y.    *      01/04  02/07
- -------------------------------------------------------------------------------------------------------
CONCERTA(R)                    McNeil-PPC       Impax            D.Del.      *      09/05  None
18,27,36 and 54 mg             ALZA             Andrx
controlled release tablet
- -------------------------------------------------------------------------------------------------------
DITROPAN XL(R), 5, 10, 15 mg   Ortho-McNeil     Mylan            D.W.V.      02/05  05/03  09/05
controlled release tablet      ALZA             Impax            N. D.Cal.   12/05  09/03  01/06
- -------------------------------------------------------------------------------------------------------
LEVAQUIN(R) Tablets            Daiichi,         Mylan            D.W.V.      05/04  02/02  07/04
250,500, 750 mg tablets        JJPRD
                               Ortho-McNeil     Teva             D.N.J.      04/06  06/02  11/04
- -------------------------------------------------------------------------------------------------------
LEVAQUIN(R) Injectable         Daiichi, JJPRD   Sicor (Teva)     D.N.J.      04/06  12/03  05/06
Single use vials and           Ortho-McNeil
5 mg/ml premix
- -------------------------------------------------------------------------------------------------------
LEVAQUIN(R) Injectable         Daiichi, JJPRD   American         D.N.J.      04/06  12/03  05/06
Single use vials               Ortho-McNeil     Pharmaceutical
                                                Partners
- -------------------------------------------------------------------------------------------------------
QUIXIN(R) Ophthalmic           Daiichi,         Hi-Tech          D.N.J.      04/06  12/03  05/06
Solution (Levofloxacin)        Ortho-McNeil     Pharmacal
Ophthalmic solution
- -------------------------------------------------------------------------------------------------------
ORTHO TRI CYCLEN(R) LO         Ortho-McNeil     Barr             D.N.J.      *      10/03  02/06
0.18 mg/0.025 mg
0.215 mg/0.025 mg
and 0.25 mg/0.025 mg
- -------------------------------------------------------------------------------------------------------
PEPCID(R) Complete             McNeil-PPC       Perrigo          S.D.N.Y.    *      02/05  06/07
- -------------------------------------------------------------------------------------------------------
RAZADYNE(TM)                   Janssen          Teva             D. Del      06/07  07/05  01/08
                                                Mylan            D. Del      06/07  07/05  01/08
                                                Dr. Reddy's      D. Del      06/07  07/05  01/08
                                                Purepac          D. Del      06/07  07/05  01/08
                                                Barr             D. Del      06/07  07/05  01/08
                                                Par              D. Del      06/07  07/05  01/08
                                                AlphaPharm       D. Del      06/07  07/05  01/08
- -------------------------------------------------------------------------------------------------------
RISPERDAL(R) Tablets           Janssen          Mylan            D.N.J.      *      12/03  05/06
..25,0.5, 1,2,3,4                                Dr. Reddy's      D.N.J.      *      12/03  06/06
mg tablets
- -------------------------------------------------------------------------------------------------------
RISPERDAL(R) M-Tab             Janssen          Dr. Reddy's      D.N.J.      *      02/05  07/07
0.5,1,2,3,4 mg                                  Barr             D.N.J.      *      10/05  02/08
- -------------------------------------------------------------------------------------------------------
TOPAMAX(R)                     Ortho-McNeil     Mylan            D.N.J.      *      04/04  09/06
25,50,100,200 mg tablet                         Cobalt           D.N.J.      *      10/05  03/08
- -------------------------------------------------------------------------------------------------------
TOPAMAX(R) SPRINKLE            Ortho-McNeil     Cobalt           D.N.J.      *      12/05  05/08
25,50 mg capsule
- -------------------------------------------------------------------------------------------------------
ULTRACET(R) 37.5 tram/         Ortho-McNeil     Kali (Par)       D.N.J.      *      11/02  04/05
325 apap tablet                                 Teva             D.N.J.      *      02/04  07/06
                                                Caraco           E.D. Mich   *      09/04  02/07
- -------------------------------------------------------------------------------------------------------
</TABLE>
* Trial date to be established.

In the action against Mylan Pharmaceuticals USA (Mylan) involving the Company's
subsidiary Ortho-McNeil Pharmaceutical, Inc.'s (Ortho-McNeil) product, DITROPAN
XL(R) (oxybutynin chloride), the court on September 27, 2005, found the DITROPAN
XL(R) patent invalid and not infringed by Mylan's ANDA product. Ortho-McNeil and
ALZA Corporation (ALZA), a subsidiary of the Company, have appealed. In the
action against Impax, Impax also received judgment of invalidity based on the
decision in the Mylan suit and Ortho-McNeil and ALZA have appealed that
decision. Both appeals have been consolidated. Neither Mylan nor Impax has
received final FDA approval to launch its ANDA product, but such approval could
come at any point.


PAGE 60                                     JOHNSON & JOHNSON 2005 ANNUAL REPORT
<PAGE>
     On December 20, 2005, Mylan announced that it had entered into two
agreements with Ortho-McNeil Pharmaceutical, Inc. regarding oxybutynin chloride
extended release tablets. One agreement relates to Ortho-McNeil's supply of
certain dosages of oxybutynin chloride extended release tablets and the second
relates to a patent license to ALZA intellectual property regarding DITROPAN
XL(R). The terms of the agreements, which are confidential, depend on the
outcome of the appeal of the West Virginia court's decision and are subject to
review by the Federal Trade Commission.
     In the weeks following the adverse ruling in the DITROPAN XL(R) ANDA
litigation against Mylan in September 2005, Ortho-McNeil and ALZA received five
antitrust class action complaints filed by indirect purchasers of the product.
The complaints were filed in various federal courts, but all claim damages based
on the laws of over 25 states. They allege that Ortho-McNeil and ALZA violated
the antitrust laws of the various states by knowingly pursuing baseless patent
litigation, and thereby delaying entry in the market by Mylan and Impax.
     In the action against Mylan involving Ortho-McNeil for LEVAQUIN(R)
(levofloxacin), the trial judge on December 23, 2004 found the patent at issue
valid, enforceable and infringed by Mylan's ANDA product and issued an
injunction precluding sale of the product until patent expiration in late 2010.
On December 19, 2005, the Court of Appeals for the Federal Circuit, affirmed the
judgment of validity, enforceability and infringement. Mylan has filed a motion
for rehearing by the Court of Appeals.
     In the consolidated actions against Teva, Sicor, Hi-Tech Pharmacal, and
American Pharmaceutical Partners involving the ANDAs for various Levofloxacin
preparations, a trial is tentatively scheduled to begin in April 2006 on the
claim that the Levaquin patent was obtained by inequitable conduct and is
therefore unenforceable.
     In the action against Kali involving Ortho-McNeil's ULTRACET(R) (tramadol
hydrochloride/acetaminophen), Kali moved for summary judgment on the issues of
infringement and invalidity. The briefing on that motion was completed in
October 2004 and a decision is expected anytime. With respect to claims other
than that at issue in the litigation against Kali, Ortho-McNeil has filed a
reissue application in the U.S. Patent and Trademark Office seeking to narrow
the scope of the claims. Notice of allowance of that patent was received on
October 21, 2005. Kali obtained final approval of its ANDA at expiration of the
30-month stay on April 21, 2005, and launched its generic product the same day.
If Ortho-McNeil ultimately prevails in its patent infringement action against
Kali, Kali will be subject to an injunction and damages.
     In the action against Teva Pharmaceuticals USA (Teva) involving
Ortho-McNeil's ULTRACET(R) (tramadol hydrocholoride/acetaminophen), Teva has
moved for summary judgment on the issues of infringement and validity. The
briefing on that motion was completed in March 2005. A ruling could issue at any
point.
     In the action against Caraco involving Ortho-McNeil's ULTRACET(R) (tramadol
hydrocholoride/acetaminophen), Caraco's motion for summary judgment of
non-infringement was granted on October 20, 2005. Ortho-McNeil has appealed that
decision. Caraco launched its generic ULTRACET(R) "at risk" in December 2005.
     With respect to all of the above matters, the Johnson & Johnson subsidiary
involved is vigorously defending the validity and enforceability and asserting
the infringement of its own or its licensor's patents.

AVERAGE WHOLESALE PRICE (AWP) LITIGATION

Johnson & Johnson and its pharmaceutical subsidiaries, along with numerous other
pharmaceutical companies, are defendants in a series of lawsuits in state and
federal courts involving allegations that the pricing and marketing of certain
pharmaceutical products amounted to fraudulent and otherwise actionable conduct
because, among other things, the companies allegedly reported an inflated
Average Wholesale Price (AWP) for the drugs at issue. Most of these cases, both
federal actions and state actions removed to federal court, have been
consolidated for pre-trial purposes in a Multi-District Litigation (MDL) in
federal district court in Boston, Massachusetts. The plaintiffs in these cases
include classes of private persons or entities that paid for any portion of the
purchase of the drugs at issue based on AWP, and state government entities that
made Medicaid payments for the drugs at issue based on AWP. In the MDL
proceeding in Boston, plaintiffs moved for class certification of all or some
portion of their claims. On August 16, 2005, the trial judge certified
Massachusetts only classes of private insurers providing "Medi-gap" insurance
coverage and private payers for physician-administered drugs where payments were
based on AWP. The judge also allowed plaintiffs to file a new complaint seeking
to name proper parties to represent a national class of individuals who made
co-payments for physician-administered drugs covered by Medicare. The Court of
Appeals declined to allow an appeal of those issues and on January 19, 2006, at
a hearing on class certification issues, the court indicated its intent to
certify the national class as noted above.

OTHER

The New York State Attorney General's office (N.Y. AG) and the Federal Trade
Commission issued subpoenas in January and February 2003 seeking documents
relating to the marketing of sutures and endoscopic instruments by the Company's
Ethicon and Ethicon Endo-Surgery subsidiaries. In February 2005, the N.Y. AG
advised that it had closed its investigation. The Connecticut State Attorney
General's office also issued a subpoena for the same documents. These subpoenas
focus on the bundling of sutures and endoscopic instruments in contracts offered
to group purchasing organizations and individual hospitals in which discounts
are predicated on the hospital achieving specified market share targets for both
categories of products. The operating companies involved have responded to the
subpoenas.
     In June 2003, the Company received a request for records and information
from the U.S. House of Representatives' Committee on Energy and Commerce in
connection with its investigation into pharmaceutical reimbursements and rebates
under Medicaid. The Committee's request focuses on the drug REMICADE(R)
(infliximab), marketed by the Company's Centocor, Inc. (Centocor) subsidiary. In
July 2003, Centocor received a


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS                               PAGE 61
<PAGE>
request that it voluntarily provide documents and information to the criminal
division of the U.S. Attorney's Office, District of New Jersey, in connection
with its investigation into various Centocor marketing practices. Subsequent
requests for documents have been received from the U.S. Attorney's Office. Both
the Company and Centocor responded, or are in the process of responding, to
these requests for documents and information.
     In August 2003, the Securities and Exchange Commission (SEC) advised the
Company of its informal investigation under the Foreign Corrupt Practices Act of
allegations of payments to Polish governmental officials by U.S. pharmaceutical
companies. In November 2003, the SEC advised the Company that the investigation
had become formal and issued a subpoena for the information previously requested
in an informal fashion, in addition to other background documents. The Company
and its operating units in Poland have responded to these requests.
     In December 2003, Ortho-McNeil received a subpoena from the United States
Attorney's Office in Boston, Massachusetts seeking documents relating to the
marketing, including alleged off-label marketing, of the drug TOPAMAX(R)
(topiramate). Ortho-McNeil is cooperating in responding to the subpoena. In
October 2004, the U.S. Attorney's Office in Boston asked attorneys for
Ortho-McNeil to cooperate in facilitating the subpoenaed testimony of several
present and former Ortho-McNeil employees before a grand jury in Boston.
Cooperation in securing the testimony of additional witnesses before the grand
jury has been requested and is being provided.
     In January 2004, Janssen received a subpoena from the Office of the
Inspector General of the United States Office of Personnel Management seeking
documents concerning sales and marketing of, any and all payments to physicians
in connection with sales and marketing of, and clinical trials for, RISPERDAL(R)
(risperidone) from 1997 to 2002. Documents subsequent to 2002 have also been
requested. An additional subpoena seeking information about marketing of and
adverse reactions to RISPERDAL(R) was received from the United States Attorney's
Office for the Eastern District of Pennsylvania in November 2005. Janssen is
cooperating in responding to these subpoenas.
     In April 2004, the Company's pharmaceutical companies were requested to
submit information to the U.S. Senate Finance Committee on their use of the
"nominal pricing exception" in calculating Best Price under the Medicaid Rebate
Program. This request was sent to manufacturers for the top twenty drugs
reimbursed under the Medicaid Program. The Company's pharmaceutical companies
have responded to the request. In February 2005 a request for supplemental
information was received from the Senate Finance Committee, which has been
responded to by the Company's pharmaceutical companies.
     In July 2004, the Company received a letter request from the New York State
Attorney General's Office for documents pertaining to marketing, off-label sales
and clinical trials for TOPAMAX(R) (topiramate), RISPERDAL(R) (risperidone),
PROCRIT(R) (Epoetin alfa), RAZADYNE(TM) (galantamine HBr), REMICADE(R)
(infliximab) and ACIPHEX(R) (rabeprazole sodium). The Company has responded to
the request.
     In August 2004, Johnson & Johnson Health Care Systems, Inc. (HCS), a
Johnson & Johnson subsidiary, received a subpoena from the Dallas, Texas U. S.
Attorney's Office seeking documents relating to the relationships between the
group purchasing organization Novation and HCS and other Johnson & Johnson
subsidiaries. The Company's subsidiaries involved have responded to the
subpoena.
     In September 2004, Ortho Biotech Inc. (Ortho Biotech), a Johnson & Johnson
subsidiary, received a subpoena from the U.S. Office of Inspector General's
Denver, Colorado field office seeking documents directed to sales and marketing
of PROCRIT(R) (Epoetin alfa) from 1997 to the present, as well as to dealings
with U.S. Oncology Inc., a healthcare services network for oncologists. Ortho
Biotech has responded to the subpoena.
     In March 2005, DePuy Orthopaedics, Inc. (DePuy), a Johnson & Johnson
subsidiary, received a subpoena from the U.S. Attorney's Office, District of New
Jersey, seeking records concerning contractual relationships between DePuy and
surgeons or surgeons in training involved in hip and knee replacement and
reconstructive surgery. Other leading orthopaedic companies are known to have
received the same subpoena. DePuy is responding to the subpoena.
     In June 2005, The United States Senate Committee on Finance requested the
Company to produce information regarding its use of educational grants. A
similar request was sent to other major pharmaceutical companies. In July 2005,
the Committee specifically requested information about educational grants in
connection with the drug PROPULSID(R). A follow up request was received from the
Committee for additional information in January 2006. The Company is in the
process of responding to the most recent request.
     In July 2005, Scios Inc. (Scios), a Johnson & Johnson subsidiary, received
a subpoena from the United States Attorney's Office, District of Massachusetts,
seeking documents related to the sales and marketing of NATRECOR(R). Scios is
responding to the subpoena. In early August 2005, Scios was advised that the
investigation will be handled by the United States Attorney's Office for the
Northern District of California in San Francisco.
     In September 2005, Johnson & Johnson received a subpoena from the United
States Attorney's Office, District of Massachusetts, seeking documents related
to sales and marketing of eight drugs to Omnicare, Inc., a manager of
pharmaceutical benefits for long-term care facilities. The Johnson & Johnson
subsidiaries involved are in the process of responding to the subpoena.
     In January 2006, Janssen received a civil investigative demand from the
Texas Attorney General seeking broad categories of documents related to sales
and marketing of RISPERDAL(R). Janssen is in the process of responding to the
request.
     In September 2004, plaintiffs in an employment discrimination litigation
initiated against the Company in 2001 in Federal District Court in New Jersey
moved to certify a class of all African American and Hispanic salaried employees
of the Company and its affiliates in the U.S., who were employed at any time
from November 1997 to the present. Plaintiffs seek monetary damages for the
period 1997 through the present (including punitive damages) and equitable
relief. The Company filed its response to plaintiffs' class certification motion
in


PAGE 62                                     JOHNSON & JOHNSON 2005 ANNUAL REPORT
<PAGE>
May 2005. The Company disputes the allegations in the lawsuit and is vigorously
defending against them.
     The Company, along with its wholly owned Ethicon and Ethicon Endo-Surgery
subsidiaries, are defendants in three federal antitrust actions challenging
suture and endo-mechanical contracts with group purchasing organizations and
hospitals in which discounts are predicated on a hospital achieving specified
market share targets for both categories of products. In each case, plaintiffs
seek substantial monetary damages and injunctive relief. These actions are:
Applied Medical v. Ethicon Inc. et al. (C.D.CA, filed September 5, 2003); Conmed
v. Johnson & Johnson et al. (S.D.N.Y., filed November 6, 2003); and Genico v.
Ethicon, Inc. et al. (E.D. TX, filed October 15, 2004). In December 2005, two
purported class actions were filed on behalf of purchasers of endo-mechanical
instruments. These actions, captioned Delaware Valley Surgical Supply Co., Inc.
v. Johnson & Johnson et al. and Niagara Falls Memorial Medical Center v. Johnson
& Johnson et al., were both filed in the federal district court for the Central
District of California.
     After a remand from the Federal Circuit Court of Appeals in January 2003, a
partial retrial was commenced in October and concluded in November 2003 in
Federal District Court in Boston, Massachusetts in the action Amgen, Inc.
(Amgen) v. Transkaryotic Therapies, Inc. (TKT) and Aventis Pharmaceutical, Inc.
(Aventis). The matter is a patent infringement action brought by Amgen against
TKT, the developer of a gene-activated EPO product, and Aventis, which held
marketing rights to the TKT product, asserting that TKT's product infringes
various Amgen patent claims. TKT and Aventis dispute infringement and are
seeking to invalidate the Amgen patents asserted against them. On October 15,
2004, the district court issued rulings that upheld its initial findings in 2001
that Amgen's patent claims were valid and infringed. An appeal to the Court of
Appeals for the Federal Circuit was argued on December 7, 2005. The Amgen
patents at issue in the case are exclusively licensed to Ortho Biotech in the
U.S. for non-dialysis indications. Ortho Biotech is not a party to the action.
     In November 2005, Amgen filed suit against Hoffmann-LaRoche, Inc. in the
United States District Court for the District of Massachusetts seeking a
declaration that the Roche product CERA, which Roche has indicated it will seek
to introduce into the United States, infringes a number of Amgen patents
concerning EPO. The suit is in its preliminary stages.
     The Company is also involved in a number of other patent, trademark and
other lawsuits incidental to its business. The ultimate legal and financial
liability of the Company in respect to all claims, lawsuits and proceedings
referred to above cannot be estimated with any certainty. However, in the
Company's opinion, based on its examination of these matters, its experience to
date and discussions with counsel, the ultimate outcome of legal proceedings,
net of liabilities already accrued in the Company's balance sheet, is not
expected to have a material adverse effect on the Company's financial position,
although the resolution in any reporting period of one or more of these matters
could have a significant impact on the Company's results of operations and cash
flows for that period.

19. EARNINGS PER SHARE

The following is a reconciliation of basic net earnings per share to diluted net
earnings  per  share  for  the  years ended January 1, 2006, January 2, 2005 and
December  28,  2003:

<TABLE>
<CAPTION>
(Shares in Millions)               2005       2004      2003
- --------------------------------------------------------------
<S>                              <C>        <C>       <C>
Basic net earnings per share     $   3.50      2.87      2.42
Average shares
  outstanding-basic               2,973.9   2,968.4   2,968.1
Potential shares exercisable
  under stock option plans          203.1     186.5     166.6
Less: shares repurchased
  under treasury stock method      (168.9)   (163.8)   (141.4)
Convertible debt shares               4.4      12.4      14.8
                                 -----------------------------
Adjusted average shares
  outstanding-diluted             3,012.5   3,003.5   3,008.1
Diluted net earnings per share   $   3.46      2.84      2.40
                                 =============================
</TABLE>

The diluted net earnings per share calculation includes the dilutive effect of
convertible debt: a decrease in interest expense of $11 million, $14 million and
$15 million after tax for years 2005, 2004 and 2003, respectively.
     Diluted net earnings per share excludes 45 million, 42 million and 47
million shares underlying stock options for 2005, 2004 and 2003, respectively,
as the exercise price of these options was greater than their average market
value, which would result in an anti-dilutive effect on diluted earnings per
share.

20. CAPITAL AND TREASURY STOCK

Changes in treasury stock were:

<TABLE>
<CAPTION>
                                                    Treasury Stock
(Amounts in Millions Except Treasury Stock    -------------------------
Number of Shares in Thousands)                  Shares        Amount
- -----------------------------------------------------------------------
<S>                                           <C>          <C>
Balance at December 29,2002                      151,547   $     6,127
Employee compensation and stock option plans     (21,729)       (1,160)
Conversion of subordinated debentures                (83)           (4)
Repurchase of common stock                        22,134         1,183
                                              -------------------------
Balance at December 28,2003                      151,869         6,146
Employee compensation and stock option plans     (25,340)       (1,403)
Conversion of subordinated debentures             (2,432)         (123)
Repurchase of common stock                        24,722         1,384
                                              -------------------------
Balance at January 2,2005                        148,819         6,004
Employee compensation and stock option plans     (22,708)       (1,458)
Conversion of subordinated debentures             (7,976)         (501)
Repurchase of common stock                        27,229         1,920
                                              -------------------------
Balance at January 1,2006                        145,364   $     5,965
                                              =========================
</TABLE>

Shares of common stock issued were 3,119,842,000 shares at the end of 2005, 2004
and 2003.
     Cash dividends paid were $1.275 per share in 2005, compared with dividends
of $1.095 per share in 2004 and $0.925 per share in 2003.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS                               PAGE 63
<PAGE>
<TABLE>
<CAPTION>
21. SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)

Selected unaudited quarterly financial data for the years 2005 and 2004 are
summarized below:

                                                                2005                                      2004
                                             -----------------------------------------  ----------------------------------------
                                              First      Second     Third     Fourth     First   Second     Third       Fourth
(Dollars in Millions Except Per Share Data)  Quarter   Quarter(1)  Quarter  Quarter(2)  Quarter  Quarter  Quarter(3)  Quarter(4)
- -------------------------------------------  --------  ----------  -------  ----------  -------  -------  ----------  ----------
<S>                                          <C>       <C>         <C>      <C>         <C>      <C>      <C>         <C>
Segment sales to customers
Consumer                                     $  2,280       2,278    2,231       2,307    2,047    2,000       2,024       2,262
Pharmaceutical                                  5,755       5,628    5,457       5,482    5,376    5,427       5,485       5,840
Med Devices & Diagnostics                       4,797       4,856    4,622       4,821    4,136    4,057       4,044       4,650
                                             -----------------------------------------------------------------------------------
Total sales                                  $ 12,832      12,762   12,310      12,610   11,559   11,484      11,553      12,752
                                             ===================================================================================
Gross profit                                    9,350       9,254    8,970       8,986    8,192    8,322       8,366       9,046

Earnings before provision
  for taxes on income                           4,062       3,402    3,554       2,638    3,504    3,435       3,274       2,625
Net earnings                                    2,927       2,676    2,625       2,183    2,493    2,458       2,341       1,217
                                             -----------------------------------------------------------------------------------
Basic net earnings per share                 $   0.98        0.90     0.88        0.74     0.84     0.83        0.79        0.41
                                             ===================================================================================
Diluted net earnings per share               $   0.97        0.89     0.87        0.73     0.83     0.82        0.78        0.41
                                             ===================================================================================
</TABLE>

(1)  The second quarter of 2005 includes an after-tax charge of $353 million for
     In-Process Research and Development (IPR&D) and a $225 million tax benefit,
     due to the reversal of a tax liability related to a technical correction
     associated with the American Jobs Creation Act of 2004.
(2)  The fourth quarter of 2005 includes an after-tax charge of $6 million for
     IPR&D. Shifts in sales to lower tax jurisdictions and expenditures to
     higher tax jurisdictions had a more significant impact on the fiscal fourth
     quarter's tax rate.
(3)  The third quarter of 2004 includes an after-tax charge of $12 million for
     IPR&D.
(4)  The fourth quarter of 2004 includes $789 million for taxes on the
     repatriation of unremitted foreign earnings associated with the American
     Jobs Creation Act of 2004.

22. SUBSEQUENT EVENTS

     On January 25, 2006, the definitive agreement to acquire Guidant
Corporation (Guidant) was terminated by Guidant in accordance with its terms.
Pursuant to the terms of the agreement, Guidant paid the Company a fee of $705
million on January 26, 2006.
     During the fiscal fourth quarter of 2005, the Company announced its
acquisition of Animas Corporation, a leading maker of insulin infusion pumps and
related products. The purchase price, net of cash acquired, of the transaction
is approximately $518 million and closed in the fiscal first quarter of 2006.
     During the fiscal first quarter of 2006, the Company completed the
acquisition of Hand Innovations LLC, a privately held manufacturer of widely
used fracture fixation products for the upper extremities.

MANAGEMENT'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

Under Section 404 of The Sarbanes-Oxley Act of 2002, management is required to
assess the effectiveness of the Company's internal control over financial
reporting as of the end of each fiscal year and report, based on that
assessment, whether the Company's internal control over financial reporting is
effective.
     Management of the Company is responsible for establishing and maintaining
adequate internal control over financial reporting. The Company's internal
control over financial reporting is designed to provide reasonable assurance as
to the reliability of the Company's financial reporting and the preparation of
financial statements in accordance with generally accepted accounting
principles.
     Internal controls over financial reporting, no matter how well designed,
have inherent limitations. Therefore, internal control over financial reporting
determined to be effective can provide only reasonable assurance with respect to
financial statement preparation and may not prevent or detect all misstatements.
Moreover, projections of any evaluation of effectiveness to future periods are
subject to the risk that controls may become inadequate because of changes in
conditions, or that the degree of compliance with the policies or procedures may
deteriorate.
     The Company's management has assessed the effectiveness of the Company's
internal control over financial reporting as of January 1, 2006. In making this
assessment, the Company used the criteria established by the Committee of
Sponsoring Organizations of the Treadway Commission (COSO) in "Internal
Control-Integrated Framework." These criteria are in the areas of control
environment, risk assessment, control activities, information and communication,
and monitoring. The Company's assessment included extensive documenting,
evaluating and testing the design and operating effectiveness of its internal
controls over financial reporting.
     Based on the Company's processes and assessment, as described above,
management has concluded that, as of January 1, 2006, the Company's internal
control over financial reporting was effective.
     Management's assessment of the effectiveness of the Company's internal
control over financial reporting as of January 1, 2006 has been audited by
PricewaterhouseCoopers LLP, an independent registered public accounting firm, as
stated in their report which appears herein.


PAGE 64                                     JOHNSON & JOHNSON 2005 ANNUAL REPORT
<PAGE>
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM


To the Shareholders and Board of Directors of Johnson & Johnson:

We have completed integrated audits of Johnson & Johnson's consolidated
financial statements as of and for the years ended January 1, 2006 and January
2, 2005, and of its internal control over financial reporting as of January 1,
2006, and an audit of its consolidated financial statements for the year ended
December 28, 2003, in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Our opinions, based on our audits,
are presented below.

CONSOLIDATED FINANCIAL STATEMENTS

In our opinion, the accompanying consolidated balance sheets and the related
consolidated statements of earnings, statements of equity and statements of cash
flows present fairly, in all material respects, the financial position of
Johnson & Johnson and Subsidiaries (the "Company") at January 1, 2006 and
January 2, 2005, and the results of their operations and their cash flows for
each of the three years in the period ended January 1, 2006 in conformity with
accounting principles generally accepted in the United States of America. These
financial statements are the responsibility of the Company's management. Our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these statements in accordance with the
standards of the Public Company Accounting Oversight Board (United States).
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit of financial statements includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.

INTERNAL CONTROL OVER FINANCIAL REPORTING

Also, in our opinion, management's assessment included in the accompanying,
"Management's Report on Internal Control over Financial Reporting," that the
Company maintained effective internal control over financial reporting as of
January 1, 2006 based on criteria established in Internal Control-Integrated
Framework issued by the Committee of Sponsoring Organizations of the Treadway
Commission (COSO), is fairly stated, in all material respects, based on those
criteria. Furthermore, in our opinion, the Company maintained, in all material
respects, effective internal control over financial reporting as of January 1,
2006, based on criteria established in Internal Control-Integrated Framework
issued by the COSO. The Company's management is responsible for maintaining
effective internal control over financial reporting and for its assessment of
the effectiveness of internal control over financial reporting. Our
responsibility is to express opinions on management's assessment and on the
effectiveness of the Company's internal control over financial reporting based
on our audit. We conducted our audit of internal control over financial
reporting in accordance with the standards of the Public Company Accounting
Oversight Board (United States). Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether effective
internal control over financial reporting was maintained in all material
respects. An audit of internal control over financial reporting includes
obtaining an understanding of internal control over financial reporting,
evaluating management's assessment, testing and evaluating the design and
operating effectiveness of internal control, and performing such other
procedures as we consider necessary in the circumstances. We believe that our
audit provides a reasonable basis for our opinions.
     A company's internal control over financial reporting is a process designed
to provide reasonable assurance regarding the reliability of financial reporting
and the preparation of financial statements for external purposes in accordance
with generally accepted accounting principles. A company's internal control over
financial reporting includes those policies and procedures that (i) pertain to
the maintenance of records that, in reasonable detail, accurately and fairly
reflect the transactions and dispositions of the assets of the company; (ii)
provide reasonable assurance that transactions are recorded as necessary to
permit preparation of financial statements in accordance with generally accepted
accounting principles, and that receipts and expenditures of the company are
being made only in accordance with authorizations of management and directors of
the company; and (iii) provide reasonable assurance regarding prevention or
timely detection of unauthorized acquisition, use, or disposition of the
company's assets that could have a material effect on the financial statements.
     Because of its inherent limitations, internal control over financial
reporting may not prevent or detect misstatements. Also, projections of any
evaluation of effectiveness to future periods are subject to the risk that
controls may become inadequate because of changes in conditions, or that the
degree of compliance with the policies or procedures may deteriorate.


/s/  PRICEWATERHOUSECOOPERS LLP

New York, New York
February 28, 2006


REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM                  PAGE 65
<PAGE>
<TABLE>
<CAPTION>
SUMMARY OF OPERATIONS AND STATISTICAL DATA 1995-2005                                          JOHNSON & JOHNSON AND SUBSIDIARIES


(Dollars in Millions Except Per Share Figures)     2005       2004      2003      2002      2001      2000      1999      1998
- --------------------------------------------------------------------------------------------------------------------------------
<S>                                              <C>        <C>       <C>       <C>       <C>       <C>       <C>       <C>
Sales to customers-U.S.                          $ 28,377    27,770    25,274    22,455    19,825    17,316    15,532    12,901
Sales to customers-International                   22,137    19,578    16,588    13,843    12,492    11,856    11,825    10,910
                                                 -------------------------------------------------------------------------------
TOTAL SALES                                        50,514    47,348    41,862    36,298    32,317    29,172    27,357    23,811
                                                 ===============================================================================
Cost of products sold                              13,954    13,422    12,176    10,447     9,581     8,957     8,539     7,700
Selling, marketing and administrative expenses     16,877    15,860    14,131    12,216    11,260    10,495    10,065     8,525
Research expense                                    6,312     5,203     4,684     3,957     3,591     3,105     2,768     2,506
Purchased in-process research and development         362        18       918       189       105        66         -       298
Interest income                                      (487)     (195)     (177)     (256)     (456)     (429)     (266)     (302)
Interest expense, net of portion capitalized           54       187       207       160       153       204       255       186
Other (income) expense, net                          (214)       15      (385)      294       185       (94)      119       565
                                                 -------------------------------------------------------------------------------
                                                   36,858    34,510    31,554    27,007    24,419    22,304    21,480    19,478
                                                 -------------------------------------------------------------------------------
EARNINGS BEFORE PROVISION FOR TAXES ON INCOME      13,656    12,838    10,308     9,291     7,898     6,868     5,877     4,333
Provision for taxes on income                       3,245     4,329     3,111     2,694     2,230     1,915     1,604     1,232
                                                 -------------------------------------------------------------------------------
NET EARNINGS                                       10,411     8,509     7,197     6,597     5,668     4,953     4,273     3,101
                                                 ===============================================================================
Percent of sales to customers                        20.6      18.0      17.2      18.2      17.5      17.0      15.6      13.0
Diluted net earnings per share of common stock   $   3.46      2.84      2.40      2.16      1.84      1.61      1.39      1.02
Percent return on average shareholders' equity       29.9      29.0      29.0      28.1      25.4      26.5      27.0      22.2
                                                 ===============================================================================

PERCENT INCREASE OVER PREVIOUS YEAR:
Sales to customers                                    6.7      13.1      15.3      12.3      10.8       6.6      14.9       5.7
Diluted net earnings per share                       21.8      18.3      11.1      17.4      14.3      15.8      36.3         -
                                                 ===============================================================================

SUPPLEMENTARY EXPENSE DATA:
Cost of materials and services(1)                $ 22,328    21,053    18,568    16,540    15,333    14,113    13,922    11,779
Total employment costs                             11,824    11,074    10,005     8,450     7,749     7,085     6,537     5,908
Depreciation and amortization                       2,093     2,124     1,869     1,662     1,605     1,592     1,510     1,335
Maintenance and repairs(2)                            510       462       395       360       372       327       322       286
Total tax expense(3)                                4,474     5,393     4,078     3,497     2,995     2,619     2,271     1,881
                                                 ===============================================================================

SUPPLEMENTARY BALANCE SHEET DATA:
Property, plant and equipment, net                 10,830    10,436     9,846     8,710     7,719     7,409     7,155     6,767
Additions to property, plant and equipment          2,632     2,175     2,262     2,099     1,731     1,689     1,822     1,610
Total assets                                       58,025    53,317    48,263    40,556    38,488    34,245    31,064    28,966
Long-term debt                                      2,017     2,565     2,955     2,022     2,217     3,163     3,429     2,652
Operating cash flow                                11,877    11,131    10,595     8,176     8,864     6,903     5,920     5,106
                                                 ===============================================================================

COMMON STOCK INFORMATION
Dividends paid per share                         $  1.275     1.095      .925      .795       .70       .62       .55       .49
Shareholders' equity per share                   $  12.73     10.71      9.05      7.65      7.95      6.77      5.70      4.93
Market price per share (year-end close)          $  60.10     63.42     50.62     53.11     59.86     52.53     46.63     41.94
Average shares outstanding (millions) -basic      2,973.9   2,968.4   2,968.1   2,998.3   3,033.8   2,993.5   2,978.2   2,973.6
                                      -diluted    3,012.5   3,003.5   3,008.1   3,054.1   3,099.3   3,099.2   3,100.4   3,082.7
                                                 ===============================================================================
EMPLOYEES (THOUSANDS)                               115.6     109.9     110.6     108.3     101.8     100.9      99.8      96.1
                                                 ===============================================================================


(Dollars in Millions Except Per Share Figures)     1997      1996      1995
- -----------------------------------------------------------------------------
<S>                                              <C>       <C>       <C>
Sales to customers-U.S.                           11,814    10,851     9,065
Sales to customers-International                  10,708    10,536     9,472
                                                 ----------------------------
TOTAL SALES                                       22,522    21,387    18,537
                                                 ============================
Cost of products sold                              7,350     7,185     6,352
Selling, marketing and administrative expenses     8,185     7,848     6,950
Research expense                                   2,373     2,109     1,788
Purchased in-process research and development        108         -         -
Interest income                                     (263)     (196)     (151)
Interest expense, net of portion capitalized         179       176       184
Other (income) expense, net                          248       122        70
                                                 ----------------------------
                                                  18,180    17,244    15,193
                                                 ----------------------------
Earnings before provision for taxes on income      4,342     4,143     3,344
Provision for taxes on income                      1,237     1,185       926
                                                 ----------------------------
NET EARNINGS                                       3,105     2,958     2,418
                                                 ============================
Percent of sales to customers                       13.8      13.8      13.0
Diluted net earnings per share of common stock      1.02       .98       .84
Percent return on average shareholders' equity      24.6      27.2      27.6
                                                 ============================

PERCENT INCREASE OVER PREVIOUS YEAR:
Sales to customers                                   5.3      15.4      19.9
Diluted net earnings per share                       4.1      16.7      21.7
                                                 ============================

SUPPLEMENTARY EXPENSE DATA:
Cost of materials and services(1)                 11,702    11,341     9,984
Total employment costs                             5,586     5,447     4,849
Depreciation and amortization                      1,117     1,047       886
Maintenance and repairs(2)                           270       285       257
Total tax expense(3)                               1,824     1,753     1,458
                                                 ============================
SUPPLEMENTARY BALANCE SHEET DATA:
Property, plant and equipment, net                 6,204     6,025     5,544
Additions to property, plant and equipment         1,454     1,427     1,307
Total assets                                      23,615    22,248    19,355
Long-term debt                                     2,084     2,347     2,702
Operating cash flow                                4,210     4,001     3,436
                                                 ============================

COMMON STOCK INFORMATION
Dividends paid per share                            .425      .368       .32
Shareholders' equity per share                      4.51      4.07      3.46
Market price per share (year-end close)            32.44     25.25     21.38
Average shares outstanding (millions) -basic     2,951.9   2,938.0   2,820.1
                                      -diluted   3,073.0   3,046.2   2,890.0
                                                 ============================
EMPLOYEES (THOUSANDS)                               92.6      91.5      84.2
                                                 ============================
</TABLE>

(1)  Net of interest and other income.
(2)  Also included in cost of materials and services category.
(3)  Includes taxes on income, payroll, property and other business taxes.


PAGE 66                                     JOHNSON & JOHNSON 2005 ANNUAL REPORT
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-21
<SEQUENCE>6
<FILENAME>y17887exv21.htm
<DESCRIPTION>EX-21: SUBSIDIARIES
<TEXT>
<HTML>
<HEAD>
<TITLE>EX-21</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<P align="right">
<B><FONT size="2">EXHIBIT 21</FONT></B>

<P align="center">
<B><FONT size="2">SUBSIDIARIES</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Johnson &#38; Johnson, a New Jersey corporation,
had the domestic and international subsidiaries shown below as
of January&nbsp;1, 2006. Certain U.S. subsidiaries and
international subsidiaries are not named because they were not
significant in the aggregate. Johnson &#38; Johnson has no
parent.
</FONT>

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="74%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="20%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Jurisdiction of</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2" align="center" nowrap><B><FONT size="1">Name of Subsidiary</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Organization</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">U.S. Subsidiaries:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Advanced Sterilization Products Services
    Inc.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">New Jersey
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">ALZA Corporation
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Delaware
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">ALZA Land Management, Inc.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Delaware
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Biosense Webster, Inc.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">California
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Centocor Biologics,&nbsp;LLC
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Pennsylvania
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Centocor, Inc.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Pennsylvania
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Centocor Research&nbsp;&#38;&nbsp;Development,
    Inc.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Pennsylvania
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Closure Medical Corporation
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Delaware
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">CNA Development LLC
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Delaware
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Codman &#38; Shurtleff, Inc.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">New Jersey
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Cordis Corporation
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Florida
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Cordis Development Corporation
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Florida
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Cordis International Corporation
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Delaware
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Cordis LLC
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Delaware
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Cordis Neurovascular,&nbsp;Inc.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Florida
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">DePuy Disc, Inc.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Delaware
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">DePuy, Inc.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Delaware
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">DePuy Mitek, Inc.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Massachusetts
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">DePuy Orthopaedics, Inc.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Indiana
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">DePuy Products, Inc.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Indiana
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">DePuy Spine, Inc.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Ohio
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">DePuy Spine Sales Limited Partnership
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Massachusetts
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Diabetes Diagnostics, Inc.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Delaware
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Ethicon Endo-Surgery, Inc.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Ohio
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Ethicon Endo-Surgery, LLC.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Delaware
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Ethicon Endo-Surgery
    Services,&nbsp;L.P.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Texas
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Ethicon, Inc.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">New Jersey
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Ethicon LLC
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Delaware
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Global Biologics Supply Chain,&nbsp;LLC
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Pennsylvania
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">GynoPharma Inc.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Delaware
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">ISO Holding Corp.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Delaware
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">J&#38;J Holdings (Nevada), Inc.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Nevada
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Janssen Finance Company
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Florida
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Janssen Inc.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Delaware
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Janssen Ortho LLC
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Delaware
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Janssen L.P.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">New Jersey
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">JJHC,&nbsp;LLC
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Delaware
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Johnson &#38; Johnson Baby Products,
    Inc.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Delaware
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="77%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="20%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Jurisdiction of</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><B><FONT size="1">Name of Subsidiary</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Organization</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Johnson &#38; Johnson Consumer Companies,
    Inc.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">New Jersey
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Johnson &#38; Johnson Development Corporation
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">New Jersey
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Johnson &#38; Johnson Finance Corporation
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">New Jersey
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Johnson &#38; Johnson Health Care Systems
    Inc.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">New Jersey
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Johnson &#38; Johnson International
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">New Jersey
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Johnson &#38; Johnson Japan Inc.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">New Jersey
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Johnson &#38; Johnson&nbsp;&#149;&nbsp;Merck
    Consumer Pharmaceuticals Co.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">New Jersey
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Johnson &#38; Johnson (Middle East)
    Inc.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">New Jersey
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Johnson &#38; Johnson Pharmaceutical Research
    &#38; Development, L.L.C.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">New Jersey
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Johnson &#38; Johnson Pharmaceutical Services, LLC
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">New Jersey
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Johnson &#38; Johnson Pharmaceutical Trading Co.,
    Inc.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Delaware
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Johnson&nbsp;&#38; Johnson Professional Co.
    (P.R.) Inc.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Delaware
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Johnson &#38; Johnson Sales and Logistics
    Company, LLC
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">New Jersey
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Johnson &#38; Johnson Services, Inc.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">New Jersey
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Johnson &#38; Johnson Urban Renewal Associates
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">New Jersey
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Johnson &#38; Johnson Vision Care,
    Inc.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Florida
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Joint Medical Products Corporation
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Delaware
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">LifeScan, Inc.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">California
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">LifeScan LLC
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Delaware
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">McNeil Healthcare LLC&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Delaware
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">McNeil Nutritionals,&nbsp;LLC
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Delaware
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">McNEIL-PPC, Inc.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">New Jersey
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Middlesex Assurance Company Limited
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Vermont
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Neutrogena Corporation
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Delaware
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Nitinol Development Corporation
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">California
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Noramco, Inc.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Georgia
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">OMJ Pharmaceuticals, Inc.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Delaware
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">OraPharma, Inc.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Delaware
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Ortho Biologics LLC
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Delaware
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Ortho Biotech Clinical Affairs, LLC
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">New Jersey
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Ortho Biotech Holding Corp.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Delaware
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Ortho Biotech Inc.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">New Jersey
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Ortho Biotech Products, L.P.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">New Jersey
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Ortho-Clinical Diagnostics, Inc.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">New York
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Ortho-McNeil Finance Co.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Florida
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Ortho-McNeil, Inc.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">New Jersey
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Ortho-McNeil Neurologics, Inc.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">New Jersey
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Ortho-McNeil Pharmaceutical, Inc.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Delaware
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Rutan Realty LLC
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">New Jersey
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Scios Inc.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Delaware
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">TERAMed Corporation
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Delaware
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Therapeutic Discovery Corporation
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Delaware
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">The Tylenol Company
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">New Jersey
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">TransForm Pharmaceuticals, Inc.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Delaware
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Winthorpe &#38; Valentine, Inc.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Delaware
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="74%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="20%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Jurisdiction of</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2" align="center" nowrap><B><FONT size="1">Name of Subsidiary</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Organization</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">International Subsidiaries:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">ALZA Ireland Limited
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Ireland
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Apsis S.A.S.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">France
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Centocor Biologics (Ireland) Limited
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Ireland
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Centocor&nbsp;B.V.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Netherlands
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Cilag Advanced Technologies&nbsp;GmbH
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Switzerland
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Cilag AG
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Switzerland
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Cilag de Mexico, S. de R.L. de C.V.
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Mexico
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Cilag GmbH International
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Switzerland
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Cilag Holding AG
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Switzerland
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Codman Sarl
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Switzerland
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Cordis Europa N.V.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Netherlands
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Cordis Medizinische Apparate GmbH&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Germany
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Cordis S.A.S.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">France
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">DePuy Ace Sarl&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Switzerland
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">DePuy France S.A.S.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">France
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">DePuy International Limited
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">United Kingdom
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">DePuy International (Holdings) Limited
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">United Kingdom
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">DePuy (Ireland) Limited
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Ireland
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">DePuy Mitek Sarl
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Switzerland
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">DePuy Orthopadie GmbH
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Germany
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">DePuy Orthopedie S.A.S.
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">France
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">DePuy Spine Sarl&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Switzerland
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">DePuy UK Holdings Limited
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">United Kingdom
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Drumbeat Limited
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Ireland
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Ethicon GmbH
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Germany
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Ethicon Ireland Limited
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Ireland
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Ethicon Sarl
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Scotland
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Ethicon SAS
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">France
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Ethnor (Proprietary) Limited
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">South Africa
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Greiter AG
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Switzerland
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Greiter (International) AG
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Switzerland
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">High Wycombe Property Management Limited
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">United Kingdom
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Janssen Animal Health BVBA
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Belgium
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Janssen-Cilag A/S
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Norway
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Janssen-Cilag AB
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Sweden
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Janssen-Cilag AG
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Switzerland
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Janssen-Cilag B.V.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Netherlands
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Janssen-Cilag Farmaceutica, Lda.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Portugal
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Janssen-Cilag Farmaceutica Ltda.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Brazil
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Janssen-Cilag GmbH
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Germany
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Janssen-Cilag Ltd.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">United Kingdom
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Janssen-Cilag NV&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Belgium
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Janssen-Cilag Pharmaceutical S.A.C.I.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Greece
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Janssen-Cilag Pharma GmbH
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Austria
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="77%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="20%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Jurisdiction of</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><B><FONT size="1">Name of Subsidiary</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Organization</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Janssen-Cilag Polska,&nbsp;Sp.&nbsp;z&nbsp;o.o
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Poland
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Janssen-Cilag Pty. Ltd.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Australia
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Janssen-Cilag S.A.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Spain
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Janssen-Cilag, S.A. de C.V.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Mexico
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Janssen-Cilag S.A.S.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">France
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Janssen-Cilag S.p.A.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Italy
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Janssen Korea, Ltd.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Korea
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Janssen-Ortho Inc.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Canada
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Janssen Pharmaceutica NV&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Belgium
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Janssen Pharmaceutica (Pty) Limited
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">South Africa
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Janssen Pharmaceutical K.K.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Japan
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Janssen Pharmaceutical Limited
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Ireland
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">J.C.&nbsp;General Services&nbsp;CVBA
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Belgium
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">J-C Healthcare Ltd.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Israel
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">JHC Nederland B.V.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Netherlands
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Johnson &#38; Johnson AB
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Sweden
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Johnson &#38; Johnson AG
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Switzerland
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Johnson&nbsp;&#38; Johnson (China)
    Investment&nbsp;Co., Ltd.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">China
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Johnson &#38; Johnson (China) Ltd.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">China
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Johnson &#38; Johnson Comercio E Distribuicao
    Ltda.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Brazil
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Johnson &#38; Johnson Consumer France
    SAS&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">France
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Johnson &#38; Johnson Consumer (Hong&nbsp;Kong)
    Limited
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Hong Kong
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Johnson &#38; Johnson de Argentina, S.A.C.e
    I.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Argentina
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Johnson &#38; Johnson de Colombia
    S.A.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Colombia
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Johnson &#38; Johnson de Venezuela,
    S.A.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Venezuela
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Johnson &#38; Johnson European Treasury Company
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Ireland
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Johnson &#38; Johnson (Egypt) S.A.E.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Egypt
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Johnson &#38; Johnson Finance Limited
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">England
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Johnson &#38; Johnson Gesellschaft m.b.H.
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Austria
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Johnson &#38; Johnson GmbH
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Germany
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Johnson &#38; Johnson Group Holdings
    G.m.b.H&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Germany
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Johnson &#38; Johnson Hellas S.A.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Greece
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Johnson &#38; Johnson Holding AB
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Sweden
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Johnson &#38; Johnson Holding GmbH
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Germany
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Johnson &#38; Johnson (Hong Kong) Limited
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Hong Kong
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Johnson &#38; Johnson Inc.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Canada
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Johnson &#38; Johnson Industrial
    Ltda.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Brazil
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Johnson &#38; Johnson International Financial
    Services Company
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Ireland
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Johnson &#38; Johnson (Ireland) Limited
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Ireland
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Johnson &#38; Johnson Kft.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Hungary
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Johnson &#38; Johnson K.K.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Japan
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Johnson&nbsp;&#38; Johnson
    Korea,&nbsp;Ltd.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Korea
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Johnson &#38; Johnson Limitada
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Portugal
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Johnson &#38; Johnson Limited
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">India
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Johnson &#38; Johnson Management Limited
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">England
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="77%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="20%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Jurisdiction of</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><B><FONT size="1">Name of Subsidiary</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Organization</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Johnson &#38; Johnson Medical B.V.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Netherlands
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Johnson &#38; Johnson Medical (China)
    Ltd.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">China
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Johnson&nbsp;&#38;&nbsp;Johnson Medical
    Holding&nbsp;S.p.A.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Italy
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Johnson &#38; Johnson Medical Korea Limited
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Korea
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Johnson &#38; Johnson Medical Limited
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">United Kingdom
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Johnson &#38; Johnson Medical Mexico, S.A. de
    C.V.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Mexico
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Johnson&nbsp;&#38;&nbsp;Johnson Medical
    Products&nbsp;GmbH
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Austria
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Johnson &#38; Johnson Medical (Pty)
    Limited&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">South Africa
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Johnson &#38; Johnson Medical Pty.
    Limited&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Australia
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Johnson &#38; Johnson Medical S.A.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Argentina
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Johnson &#38; Johnson Medical (Shanghai)
    Ltd.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">China
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Johnson&nbsp;&#38;&nbsp;Johnson
    Medical&nbsp;S.p.A.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Italy
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Johnson&nbsp;&#38;&nbsp;Johnson&nbsp;&#149;&nbsp;Merck
    Consumer Pharmaceuticals of Canada
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Canada
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Johnson &#38; Johnson Pacific Pty.
    Limited&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Australia
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Johnson &#38; Johnson Pakistan (Private) Limited
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Pakistan
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Johnson &#38; Johnson (Philippines),
    Inc.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Philippines
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Johnson &#38; Johnson Poland Sp. z
    o.o&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Poland
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Johnson &#38; Johnson Produtos Profissionais
    Ltda.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Brazil
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Johnson &#38; Johnson (Proprietary) Limited
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">South Africa
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Johnson &#38; Johnson Pte. Ltd.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Singapore
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Johnson &#38; Johnson Pty. Limited
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Australia
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Johnson &#38; Johnson Research Pty.
    Ltd.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Australia
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Johnson &#38; Johnson S.A.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Spain
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Johnson &#38; Johnson, S.A. de C.V.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Mexico
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Johnson &#38; Johnson SDN. BHD.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Malaysia
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Johnson &#38; Johnson S.p.A&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Italy
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Johnson &#38; Johnson,&nbsp;s.r.o.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Czech Republic
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Johnson &#38; Johnson Swiss Finance Company
    Limited&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">United Kingdom
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Johnson &#38; Johnson Taiwan Ltd.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Taiwan
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Johnson &#38; Johnson (Thailand) Ltd.
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Thailand
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Johnson &#38; Johnson Vision Care (Ireland)
    Limited&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Ireland
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Laboratoires Polive&nbsp;S.N.C.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">France
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Latam Properties Holdings
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Ireland
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Lifescan Canada Ltd.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Canada
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Lifescan Scotland&nbsp;Ltd.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Scotland
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">McNeil GmbH&nbsp;&#38;&nbsp;Co.&nbsp;oHG
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Germany
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">McNeil Iberica&nbsp;S.L.U.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Spain
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">McNEIL&nbsp;PDI&nbsp;Inc.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Canada
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">McNeil&nbsp;SAS
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">France
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Medos International Sarl
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Switzerland
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Medos Sarl
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Switzerland
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">OMJ Ireland Limited
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Ireland
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">OMJ Manufacturing Limited
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Ireland
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Ortho-Clinical Diagnostics
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">United Kingdom
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Ortho-Clinical Diagnostics GmbH
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Germany
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="77%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="20%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Jurisdiction of</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><B><FONT size="1">Name of Subsidiary</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Organization</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Ortho-Clinical Diagnostics K.K.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Japan
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Ortho-Clinical Diagnostics NV
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Belgium
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Ortho-Clinical Diagnostics S.A.S.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">France
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">P.T. Johnson &#38; Johnson Indonesia
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Indonesia
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Shanghai Johnson &#38; Johnson Pharmaceuticals,
    Ltd.
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">China
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Tasmanian Alkaloids Pty. Ltd.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Australia
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Tibotec BVBA
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Belgium
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Tibotec Pharmaceuticals Ltd.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Ireland
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Tibotec-Virco Comm. VA
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Belgium
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Turnbuckle Investment Company
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Ireland
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Vania Expansion, S.N.C.
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">France
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT size="2">Xian-Janssen Pharmaceutical Ltd.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">China
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-23
<SEQUENCE>7
<FILENAME>y17887exv23.htm
<DESCRIPTION>EX-23: CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
<TEXT>
<HTML>
<HEAD>
<TITLE>EX-23</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<P align="right">
<B><FONT size="2">EXHIBIT 23</FONT></B>

<P align="center">
<B><FONT size="2">CONSENT OF INDEPENDENT REGISTERED PUBLIC
ACCOUNTING FIRM</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We hereby consent to the incorporation by
reference in the Registration Statements on Form S-8
(No.&nbsp;333-129542, 333-124785, 333-106007, 333-104828,
333-96541, 333-87736, 333-67370, 333-59380, 333-39238,
333-94367, 333-86611, 333-40681, 333-38055, 333-26979, 33-59009,
33-57583, 33-52252, 33-40295, 33-40294, 33-32875) and
Form&nbsp;S-3 (No.&nbsp;333-111082, 333-104821, 333-67020,
333-91349, 33-55977, 33-47424) of Johnson &#38; Johnson of our
report dated February&nbsp;28, 2006, relating to the financial
statements, management&#146;s assessment of the effectiveness of
internal control over financial reporting and the effectiveness
of internal control over financial reporting, which appears in
the Annual Report to Shareholders, which is incorporated in this
Annual Report on Form&nbsp;10-K. We also consent to the
incorporation by reference of our report dated February&nbsp;28,
2006 relating to the financial statement schedule, which appears
in this Form&nbsp;10-K.
</FONT>

<P align="left">
<FONT size="2">/s/ PRICEWATERHOUSECOOPERS LLP
</FONT>

<DIV align="left">
<HR size="1" width="56%" align="left" color="black" noshade>
</DIV>

<DIV align="left">
<FONT size="2">PricewaterhouseCoopers LLP
</FONT>
</DIV>

<P align="left">
<FONT size="2">New York, New York
</FONT>

<DIV align="left">
<FONT size="2">March&nbsp;14, 2006
</FONT>
</DIV>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.A
<SEQUENCE>8
<FILENAME>y17887exv31wa.htm
<DESCRIPTION>EX-31:A CERTIFICATION
<TEXT>
<HTML>
<HEAD>
<TITLE>EX-31.A</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<P align="right">
<B><FONT size="2">EXHIBIT 31(a)</FONT></B>

<P align="center">
<B><FONT size="2">CERTIFICATION OF CHIEF EXECUTIVE
OFFICER</FONT></B>

<DIV align="center">
<B><FONT size="2">PURSUANT TO SECTION&nbsp;302 OF THE
SARBANES-OXLEY ACT</FONT></B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">I, William C. Weldon, certify that:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I have reviewed
    this Annual Report on Form&nbsp;10-K for the fiscal year ended
    January&nbsp;1, 2006 (the &#147;report&#148;) of Johnson &#38;
    Johnson (the &#147;Company&#148;);
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based on my
    knowledge, this report does not contain any untrue statement of
    a material fact or omit to state a material fact necessary to
    make the statements made, in light of the circumstances under
    which such statements were made, not misleading with respect to
    the period covered by this report;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based on my
    knowledge, the financial statements, and other financial
    information included in this report, fairly present in all
    material respects the financial condition, results of operations
    and cash flows of the Company as of, and for, the periods
    presented in this report;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
    Company&#146;s other certifying officer and I are responsible
    for establishing and maintaining disclosure controls and
    procedures (as defined in Exchange Act Rule&nbsp;13a-15(e)) and
    internal control over financial reporting (as defined in
    Exchange Act Rule 13a-15(f)) for the Company and have:
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">a)&nbsp;Designed such disclosure controls and
    procedures, or caused such disclosure controls and procedures to
    be designed under our supervision, to ensure that material
    information relating to the Company, including its consolidated
    subsidiaries, is made known to us by others within those
    entities, particularly during the period in which this report is
    being prepared;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">b)&nbsp;Designed such internal control over
    financial reporting, or caused such internal control over
    financial reporting to be designed under our supervision, to
    provide reasonable assurance regarding the reliability of
    financial reporting and the preparation of financial statements
    for external purposes in accordance with generally accepted
    accounting principles;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">c)&nbsp;Evaluated the effectiveness of the
    Company&#146;s disclosure controls and procedures and presented
    in this report our conclusions about the effectiveness of the
    disclosure controls and procedures, as of the end of the period
    covered by this report based on such evaluation; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">d)&nbsp;Disclosed in this report any change in
    the Company&#146;s internal control over financial reporting
    that occurred during the Company&#146;s fourth fiscal quarter
    that has materially affected, or is reasonably likely to
    materially affect, the Company&#146;s internal control over
    financial reporting; and
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
    Company&#146;s other certifying officer and I have disclosed,
    based on our most recent evaluation of internal control over
    financial reporting, to the Company&#146;s auditors and the
    audit committee of the Company&#146;s board of directors (or
    persons performing the equivalent functions):
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">a)&nbsp;All significant deficiencies and material
    weaknesses in the design or operation of internal control over
    financial reporting which are reasonably likely to adversely
    affect the Company&#146;s ability to record, process, summarize
    and report financial information; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">b)&nbsp;Any fraud, whether or not material, that
    involves management or other employees who have a significant
    role in the Company&#146;s internal control over financial
    reporting.
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="40%"></TD>
    <TD width="60%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">/s/ WILLIAM C. WELDON
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <HR size="1" align="left" color="black" noshade></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="center">
    <FONT size="2">William C. Weldon
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="center">
    <I><FONT size="2">Chief Executive Officer</FONT></I></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">Date:&nbsp;March&nbsp;13, 2006
</FONT>
</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.B
<SEQUENCE>9
<FILENAME>y17887exv31wb.htm
<DESCRIPTION>EX-31.B: CERTIFICATION
<TEXT>
<HTML>
<HEAD>
<TITLE>EX-31.B</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<P align="right">
<B><FONT size="2">EXHIBIT 31(b)</FONT></B>

<P align="center">
<B><FONT size="2">CERTIFICATION OF CHIEF FINANCIAL
OFFICER</FONT></B>

<DIV align="center">
<B><FONT size="2">PURSUANT TO SECTION&nbsp;302 OF THE
SARBANES-OXLEY ACT</FONT></B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">I, Robert&nbsp;J. Darretta, certify that:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I have reviewed
    this Annual Report on Form&nbsp;10-K for the fiscal year ended
    January&nbsp;1, 2006 (the &#147;report&#148;) of Johnson &#38;
    Johnson (the &#147;Company&#148;);
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based on my
    knowledge, this report does not contain any untrue statement of
    a material fact or omit to state a material fact necessary to
    make the statements made, in light of the circumstances under
    which such statements were made, not misleading with respect to
    the period covered by this report;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based on my
    knowledge, the financial statements, and other financial
    information included in this report, fairly present in all
    material respects the financial condition, results of operations
    and cash flows of the Company as of, and for, the periods
    presented in this report;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
    Company&#146;s other certifying officer and I are responsible
    for establishing and maintaining disclosure controls and
    procedures (as defined in Exchange Act Rule&nbsp;13a-15(e)) and
    internal control over financial reporting (as defined in
    Exchange Act Rule 13a-15(f)) for the Company and have:
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">a)&nbsp;Designed such disclosure controls and
    procedures, or caused such disclosure controls and procedures to
    be designed under our supervision, to ensure that material
    information relating to the Company, including its consolidated
    subsidiaries, is made known to us by others within those
    entities, particularly during the period in which this report is
    being prepared;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">b)&nbsp;Designed such internal control over
    financial reporting, or caused such internal control over
    financial reporting to be designed under our supervision, to
    provide reasonable assurance regarding the reliability of
    financial reporting and the preparation of financial statements
    for external purposes in accordance with generally accepted
    accounting principles;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">c)&nbsp;Evaluated the effectiveness of the
    Company&#146;s disclosure controls and procedures and presented
    in this report our conclusions about the effectiveness of the
    disclosure controls and procedures, as of the end of the period
    covered by this report based on such evaluation; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">d)&nbsp;Disclosed in this report any change in
    the Company&#146;s internal control over financial reporting
    that occurred during the Company&#146;s fourth fiscal quarter
    that has materially affected, or is reasonably likely to
    materially affect, the Company&#146;s internal control over
    financial reporting; and
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
    Company&#146;s other certifying officer and I have disclosed,
    based on our most recent evaluation of internal control over
    financial reporting, to the Company&#146;s auditors and the
    audit committee of the Company&#146;s board of directors (or
    persons performing the equivalent functions):
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">a)&nbsp;All significant deficiencies and material
    weaknesses in the design or operation of internal control over
    financial reporting which are reasonably likely to adversely
    affect the Company&#146;s ability to record, process, summarize
    and report financial information; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">b)&nbsp;Any fraud, whether or not material, that
    involves management or other employees who have a significant
    role in the Company&#146;s internal control over financial
    reporting.
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="40%"></TD>
    <TD width="60%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">/s/ ROBERT J. DARRETTA
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <HR size="1" align="left" color="black" noshade></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="center">
    <FONT size="2">Robert J. Darretta
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="center">
    <I><FONT size="2">Chief Financial Officer</FONT></I></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">Date:&nbsp;March&nbsp;13, 2006
</FONT>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32.A
<SEQUENCE>10
<FILENAME>y17887exv32wa.htm
<DESCRIPTION>EX-32.A: CERTIFICATION
<TEXT>
<HTML>
<HEAD>
<TITLE>EX-32.A</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<P align="right">
<B><FONT size="2">EXHIBIT 32(a)</FONT></B>

<P align="center">
<B><FONT size="2">CERTIFICATION OF CHIEF EXECUTIVE
OFFICER</FONT></B>

<DIV align="center">
<B><FONT size="2">PURSUANT TO SECTION&nbsp;906 OF THE
SARBANES-OXLEY ACT</FONT></B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The undersigned, William C. Weldon, the Chief
Executive Officer of Johnson &#38; Johnson, a New Jersey
corporation (the &#147;Company&#148;), pursuant to
18&nbsp;U.S.C.&nbsp;1350, as adopted pursuant to
Section&nbsp;906 of the Sarbanes-Oxley Act of 2002, hereby
certifies that, to the best of my knowledge:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">(1)&nbsp;the Company&#146;s Annual Report on
    Form&nbsp;10-K for the fiscal year ended January&nbsp;1, 2006
    (the &#147;Report&#148;) fully complies with the requirements of
    Section&nbsp;13(a) of the Securities Exchange Act of 1934; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">(2)&nbsp;the information contained in the Report
    fairly presents, in all material respects, the financial
    condition and results of operations of the Company.
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="40%"></TD>
    <TD width="60%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">/s/ WILLIAM C. WELDON
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <HR size="1" align="left" color="black" noshade></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="center">
    <FONT size="2">William C. Weldon
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="center">
    <I><FONT size="2">Chief Executive Officer</FONT></I></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">Dated:&nbsp;March&nbsp;13, 2006
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">This certification is being furnished to the SEC
with this Report on Form&nbsp;10-K pursuant to Section&nbsp;906
of the Sarbanes-Oxley Act of 2002 and shall not, except to the
extent required by such Act, be deemed filed by the Company for
purposes of Section&nbsp;18 of the Securities Exchange Act of
1934.
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<TYPE>EX-32.B
<SEQUENCE>11
<FILENAME>y17887exv32wb.htm
<DESCRIPTION>EX-32.B: CERTIFICATION
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<B><FONT size="2">EXHIBIT 32(b)</FONT></B>

<P align="center">
<B><FONT size="2">CERTIFICATION OF CHIEF FINANCIAL
OFFICER</FONT></B>

<DIV align="center">
<B><FONT size="2">PURSUANT TO SECTION&nbsp;906 OF THE
SARBANES-OXLEY ACT</FONT></B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The undersigned, Robert&nbsp;J. Darretta, the
Chief Financial Officer of Johnson &#38; Johnson, a New Jersey
corporation (the &#147;Company&#148;), pursuant to
18&nbsp;U.S.C.&nbsp;1350, as adopted pursuant to
Section&nbsp;906 of the Sarbanes-Oxley Act of 2002, hereby
certifies that, to the best of my knowledge:
</FONT>
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    <FONT size="2">(1)&nbsp;the Company&#146;s Annual Report on
    Form&nbsp;10-K for the fiscal year ended January&nbsp;1, 2006
    (the &#147;Report&#148;) fully complies with the requirements of
    Section&nbsp;13(a) of the Securities Exchange Act of 1934; and
    </FONT></TD>
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    <TD>&nbsp;</TD>
</TR>

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    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">(2)&nbsp;the information contained in the Report
    fairly presents, in all material respects, the financial
    condition and results of operations of the Company.
    </FONT></TD>
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    <FONT size="2">/s/ ROBERT J. DARRETTA
    </FONT></TD>
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    <TD>&nbsp;</TD>
    <TD align="left">
    <HR size="1" align="left" color="black" noshade></TD>
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    <TD>&nbsp;</TD>
    <TD align="center">
    <FONT size="2">Robert J. Darretta
    </FONT></TD>
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    <TD>&nbsp;</TD>
    <TD align="center">
    <I><FONT size="2">Chief Financial Officer</FONT></I></TD>
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<P align="left">
<FONT size="2">Dated:&nbsp;March&nbsp;13, 2006
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">This certification is being furnished to the SEC
with this Report on Form&nbsp;10-K pursuant to Section&nbsp;906
of the Sarbanes-Oxley Act of 2002 and shall not, except to the
extent required by such Act, be deemed filed by the Company for
purposes of Section&nbsp;18 of the Securities Exchange Act of
1934.
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<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>12
<FILENAME>y17887exv99.htm
<DESCRIPTION>EX-99: CAUTIONARY STATEMENT
<TEXT>
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<B><FONT size="2">EXHIBIT 99</FONT></B>

<P align="center">
<B><FONT size="2">CAUTIONARY STATEMENT PURSUANT TO PRIVATE
SECURITIES LITIGATION REFORM</FONT></B>

<DIV align="center">
<B><FONT size="2">ACT OF 1995&nbsp;&#151; &#147;SAFE
HARBOR&#148; FOR FORWARD-LOOKING STATEMENTS</FONT></B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company may from time to time make certain
forward-looking statements in publicly-released materials, both
written and oral. Forward-looking statements do not relate
strictly to historical or current facts and anticipate results
based on management&#146;s plans that are subject to
uncertainty. Forward-looking statements may be identified by the
use of words like &#147;plans,&#148; &#147;expects,&#148;
&#147;will,&#148; &#147;anticipates,&#148; &#147;estimates&#148;
and other words of similar meaning in conjunction with, among
other things, discussions of future operations, financial
performance, the Company&#146;s strategy for growth, product
development, regulatory approvals, market position and
expenditures.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Forward-looking statements are based on current
expectations of future events. The Company cannot guarantee that
any forward-looking statement will be accurate, although the
Company believes that it has been reasonable in its expectations
and assumptions. Investors should realize that if underlying
assumptions prove inaccurate or unknown risks or uncertainties
materialize, actual results could vary materially from the
Company&#146;s expectations and projections. Investors are
therefore cautioned not to place undue reliance on any
forward-looking statements. Furthermore, the Company assumes no
obligation to update any forward-looking statements as a result
of new information or future events or developments.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Some important factors that could cause the
Company&#146;s actual results to differ from the Company&#146;s
expectations in any forward-looking statements are as follows:
</FONT>
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    <FONT size="2">Economic factors, including inflation and
    fluctuations in interest rates and currency exchange rates and
    the potential effect of such fluctuations on revenues, expenses
    and resulting margins;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">Competitive factors, including technological
    advances achieved and patents attained by competitors as well as
    new products introduced by competitors;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

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    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">Challenges to the Company&#146;s patents by
    competitors or allegations that the Company&#146;s products
    infringe the patents of third parties, which could potentially
    affect the Company&#146;s competitive position and ability to
    sell the products in question and require the payment of past
    damages and future royalties. In particular, generic drug firms
    have filed Abbreviated New Drug Applications seeking to market
    generic forms of most of the Company&#146;s key pharmaceutical
    products, prior to expiration of the applicable patents covering
    those products. In the event that the Company is not successful
    in defending the resulting lawsuits, generic versions of the
    product at issue will be introduced, resulting in very
    substantial market share and revenue losses;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">Financial distress and bankruptcies experienced
    by significant customers and suppliers that could impair their
    ability, as the case may be, to purchase the Company&#146;s
    products, pay for products previously purchased or meet their
    obligations to the Company under supply arrangements;
    </FONT></TD>
</TR>

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    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">The impact on political and economic conditions
    due to terrorist attacks in the U.S. and other parts of the
    world or U.S. military action overseas, as well as instability
    in the financial markets which could result from such terrorism
    or military actions;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">Interruptions of computer and communication
    systems, including computer viruses, that could impair the
    Company&#146;s ability to conduct business and communicate
    internally and with its customers;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">Health care changes in the U.S. and other
    countries resulting in pricing pressures, including the
    continued consolidation among health care providers, trends
    toward managed care and health care cost containment, the shift
    towards governments becoming the primary payers of health care
    expenses and government laws and regulations relating to sales
    and promotion, reimbursement and pricing generally;
    </FONT></TD>
</TR>

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    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">Government laws and regulations, affecting U.S.
    and foreign operations, including those relating to securities
    laws compliance, trade, monetary and fiscal policies, taxes,
    price controls, regulatory approval of new products, licensing
    and patent rights, and including, in particular, proposed
    amendments to the Hatch-Waxman Act, implementation of the
    Medicare Prescription Drug, Improvement and Modernization Act of
    2003 and possible drug reimportation legislation;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">Competition in research, involving the
    development and the improvement of new and existing products and
    processes, is particularly significant and results from time to
    time in product and process obsolescence. The development of new
    and improved products is important to the Company&#146;s success
    in all areas of its business;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">Challenges and difficulties inherent in product
    development, including the potential inability to successfully
    continue technological innovation, complete clinical trials,
    obtain regulatory approvals in the United States and abroad,
    gain and maintain market approval of products and the
    possibility of encountering infringement claims by competitors
    with respect to patent or other intellectual property rights
    which can preclude or delay commercialization of a product;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">Significant litigation adverse to the Company
    including product liability claims, patent infringement claims
    and antitrust claims;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">The health care industry has come under increased
    scrutiny by government agencies and state attorneys general and
    resulting investigations and prosecutions carry the risk of
    significant civil and criminal penalties, including debarment
    from government business;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">Product efficacy or safety concerns, whether or
    not based on scientific evidence, resulting in product
    withdrawals, recalls, regulatory action on the part of the FDA
    (or foreign counterparts) or declining sales;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">The impact of business combinations, including
    acquisitions and divestitures, both internally for the Company
    and externally in the pharmaceutical, medical device and health
    care industries; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">Issuance of new or revised accounting standards
    by the American Institute of Certified Public Accountants, the
    Financial Accounting Standards Board, the Securities and
    Exchange Commission and the Public Company Accounting Oversight
    Board.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The foregoing list sets forth many, but not all,
of the factors that could impact upon the Company&#146;s ability
to achieve results described in any forward-looking statements.
Investors should understand that it is not possible to predict
or identify all such factors and should not consider this list
to be a complete statement of all potential risks and
uncertainties. The Company has identified the factors on this
list as permitted by the Private Securities Litigation Reform
Act of 1995.
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