<SUBMISSION>
<ACCESSION-NUMBER>0000950135-04-003228
<TYPE>424B5
<PUBLIC-DOCUMENT-COUNT>2
<FILING-DATE>20040623
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>BOSTON SCIENTIFIC CORP
<CIK>0000885725
<ASSIGNED-SIC>3841
<IRS-NUMBER>042695240
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>424B5
<ACT>33
<FILE-NUMBER>333-64887
<FILM-NUMBER>04876238
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>ONE BOSTON SCIENTIFIC PL
<CITY>NATICK
<STATE>MA
<ZIP>01760-1537
<PHONE>5086508000
</BUSINESS-ADDRESS>
</FILER>
<DOCUMENT>
<TYPE>424B5
<SEQUENCE>1
<FILENAME>b50654b5e424b5.htm
<DESCRIPTION>BOSTON SCIENTIFIC CORPORATION
<TEXT>
<HTML>
<HEAD>
<TITLE>e424b5</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="right">
 <B><FONT size="2">Filed Pursuant to Rule 424(b)(5)</FONT></B>
</DIV>

<DIV align="right">
<B><FONT size="2">Registration No. 333-64887</FONT></B>
</DIV>

<DIV align="left">
<B><FONT size="2">Prospectus Supplement <BR>
 </FONT></B><FONT size="2">(To Prospectus dated June&nbsp;3,
1999) <BR>
 <BR>
 </FONT><B><FONT size="6">Boston Scientific
Corporation</FONT></B>
</DIV>

<P align="left">
<B><I><FONT size="5">$600,000,000 <BR>
 <BR>
 5.45% Notes due 2014</FONT></I></B>

<P align="left">
<I>Interest payable June&nbsp;15 and December&nbsp;15 <BR>
 <BR>
 </I><B>Issue price: 99.850%</B>

<P align="left">
<FONT size="2">The notes will mature on June&nbsp;15, 2014.
Interest will accrue from June&nbsp;25, 2004 and will be payable
each June&nbsp;15 and December&nbsp;15, beginning
December&nbsp;15, 2004. We may redeem the notes in whole or in
part at any time at the redemption price described herein.
</FONT>

<P align="left">
<FONT size="2">The notes will be senior unsecured obligations
and will rank equally with all of our other senior unsecured
indebtedness from time to time outstanding.
</FONT>

<P align="left">
<FONT size="2">Neither the Securities and Exchange Commission
nor any state securities commission has approved or disapproved
of the notes or determined that this prospectus supplement and
the accompanying prospectus is accurate or complete. Any
representation to the contrary is a criminal offense.
</FONT>

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

<TR>
    <TD width="47%"><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="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="8%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><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="6%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="13"></TD>
</TR>

<TR>
    <TD colspan="13" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Price to</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Underwriting</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Proceeds</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Public</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Discounts</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">to Us</FONT></B></TD>
</TR>

<TR>
    <TD colspan="13"></TD>
</TR>

<TR>
    <TD colspan="13" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Per Note
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">99.850%</FONT></TD>
    <TD><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" nowrap><FONT size="2">.650%</FONT></TD>
    <TD><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" nowrap><FONT size="2">99.200%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="13" align="left"><HR size="1" noshade></TD>

</TR>

<TR>
    <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><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">$599,100,000</FONT></TD>
    <TD><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" nowrap><FONT size="2">$3,900,000</FONT></TD>
    <TD><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" nowrap><FONT size="2">$595,200,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="13" align="left"><HR size="1" noshade></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">
<FONT size="2">The notes will not be listed on any securities
exchange. Currently, there is no public market for the notes.
</FONT>

<P align="left">
<FONT size="2">We expect that delivery of the notes will be made
to investors through the book-entry delivery system of The
Depository Trust Company and its direct participants, including
Euroclear and Clearstream, on or about June&nbsp;25, 2004.
</FONT>

<P align="center">
<I><FONT size="2">Joint Bookrunners</FONT></I>

<DIV>&nbsp;</DIV>

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

<TR>
    <TD width="33%"></TD>
    <TD width="33%"></TD>
    <TD width="33%"></TD>
</TR>

<TR valign="top">
    <TD align="left"><B><FONT size="5">Banc of America Securities LLC</FONT></B></TD>
    <TD align="center"><B><FONT size="5">Deutsche Bank Securities</FONT></B></TD>
    <TD align="right"><B><FONT size="5">JPMorgan</FONT></B></TD>
</TR>

</TABLE>

<P align="left">
<B><FONT size="5"> </FONT><FONT size="2">ABN AMRO
Incorporated</FONT></B>

<DIV align="center">

</DIV>

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

<TR>
    <TD width="10%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <B><FONT size="5"> </FONT><FONT size="2">Citigroup</FONT></B></TD>
</TR>

</TABLE>

<DIV align="center">

</DIV>

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

<TR>
    <TD width="21%"></TD>
    <TD width="79%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <B><FONT size="5"> </FONT><FONT size="2">Wachovia
    Securities</FONT></B></TD>
</TR>

</TABLE>

<DIV align="center">

</DIV>

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

<TR>
    <TD width="32%"></TD>
    <TD width="68%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <B><FONT size="5"> </FONT><FONT size="2">BNP PARIBAS</FONT></B></TD>
</TR>

</TABLE>

<DIV align="center">

</DIV>

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

<TR>
    <TD width="43%"></TD>
    <TD width="57%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <B><FONT size="5"> </FONT><FONT size="2">Daiwa Securities
    America Inc.</FONT></B></TD>
</TR>

</TABLE>

<DIV align="center">

</DIV>

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

<TR>
    <TD width="54%"></TD>
    <TD width="46%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <B><FONT size="5"> </FONT><FONT size="2">Lazard</FONT></B></TD>
</TR>

</TABLE>

<DIV align="center">

</DIV>

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

<TR>
    <TD width="64%"></TD>
    <TD width="36%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <B><FONT size="5"> </FONT><FONT size="2">Merrill Lynch &#38;
    Co.</FONT></B></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">June&nbsp;22, 2004
</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>

<DIV align="left">

</DIV>

<DIV align="left">
<!-- TOC -->
</DIV>

<DIV align="left">
<A name="tocpage"></A>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">You should rely only on the information contained
or incorporated by reference in this prospectus supplement and
the accompanying prospectus. We have not, and the underwriters
have not, authorized any other person to provide you with other
information. If anyone provides you with different or
inconsistent information, you should not rely on it. We are not,
and the underwriters are not, making an offer to sell these
securities in any jurisdiction where the offer or sale is not
permitted. You should assume that the information in this
prospectus supplement is accurate only as of the date on the
front cover of this prospectus supplement and the information in
the accompanying prospectus is accurate only as of the date on
the first page of the accompanying prospectus. Our business,
financial condition, results of operations and prospects may
have changed since these dates.
</FONT>

<P align="center">
<B><FONT size="2">TABLE OF CONTENTS</FONT></B>

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

<CENTER>
<TABLE width="60%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="90%"><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="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

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

<TR>
    <TD></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">&nbsp;<A HREF='#101'>Forward Looking
    Statements</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">S-3</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">&nbsp;<A HREF='#102'>Summary</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">S-6</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">&nbsp;<A HREF='#103'>Use of Proceeds</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">S-10</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">&nbsp;<A HREF='#104'>Capitalization</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">S-11</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">&nbsp;<A HREF='#105'>Ratios of Earnings to Fixed
    Charges</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">S-12</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">&nbsp;<A HREF='#106'>Selected Consolidated
    Financial Information</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">S-13</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">&nbsp;<A HREF='#107'>Description of the Notes</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">S-15</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">Material U.S.&nbsp;Federal Income Tax
    Considerations
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">S-20</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">&nbsp;<A HREF='#108'>Underwriting</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">S-23</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">&nbsp;<A HREF='#109'>Legal Matters</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">S-24</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">&nbsp;<A HREF='#110'>Experts</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">S-24</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">&nbsp;<A HREF='#111'>Where You Can Find More
    Information</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">S-24</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

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

<CENTER>
<TABLE width="60%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="90%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

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

<TR>
    <TD></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">&nbsp;<A HREF='#112'>Available Information</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom">
    <FONT size="2">4
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;<A HREF='#113'>Incorporation of Certain
    Documents by Reference</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom">
    <FONT size="2">5
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;<A HREF='#114'>Certain Forward-Looking
    Statements</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom">
    <FONT size="2">5
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;<A HREF='#115'>The Company</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom">
    <FONT size="2">7
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;<A HREF='#116'>Trusts</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom">
    <FONT size="2">7
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;<A HREF='#117'>Use of Proceeds</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom">
    <FONT size="2">9
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;<A HREF='#118'>Ratio of Earnings to Fixed
    Charges</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom">
    <FONT size="2">9
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;<A HREF='#119'>Description of Debt
    Securities</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom">
    <FONT size="2">10
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;<A HREF='#120'>Description of Preferred
    Stock</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom">
    <FONT size="2">19
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;<A HREF='#121'>Description of Depositary
    Shares</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom">
    <FONT size="2">22
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;<A HREF='#122'>Description of Common
    Stock</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom">
    <FONT size="2">25
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;<A HREF='#123'>Description of Warrants</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom">
    <FONT size="2">28
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;<A HREF='#124'>Description of Stock
    Purchase Contracts and Stock Purchase Units</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom">
    <FONT size="2">29
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;<A HREF='#125'>Description of Trust
    Preferred Securities</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom">
    <FONT size="2">29
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;<A HREF='#126'>Description of Trust
    Guarantee</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom">
    <FONT size="2">31
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;<A HREF='#127'>Plan of Distribution</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom">
    <FONT size="2">34
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;<A HREF='#128'>Legal Matters</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom">
    <FONT size="2">35
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;<A HREF='#129'>Experts</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom">
    <FONT size="2">36
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left">
<!-- /TOC -->
</DIV>

<P align="center"><FONT size="2">S-2
</FONT>
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<DIV align="left">
<A name='101'></A>
</DIV>

<!-- link1 "FORWARD LOOKING STATEMENTS" -->

<P align="center">
<B><FONT size="2">FORWARD LOOKING STATEMENTS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">This prospectus supplement and the accompanying
prospectus and the documents incorporated herein and therein by
reference include forward-looking statements within the meaning
of Section&nbsp;27A of the Securities Act of 1933, as amended,
and Section&nbsp;21E of the Securities Exchange Act of 1934, as
amended. We intend such forward-looking statements to be covered
by the safe harbor provisions for forward-looking statements in
these provisions. These forward-looking statements include,
without limitation, statements about our market opportunity,
strategies, competition, expected activities, expected
profitability and investments as we pursue our business plan,
and the adequacy of our available cash resources. These
forward-looking statements are usually accompanied by words such
as &#147;believe,&#148; &#147;anticipate,&#148;
&#147;plan,&#148; &#147;seek,&#148; &#147;expect,&#148;
&#147;intend&#148; and similar expressions. The forward-looking
information is based on various factors and was derived using
numerous assumptions.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Forward-looking statements necessarily involve
risks and uncertainties, and our actual results could differ
materially from those anticipated in the forward-looking
statements due to a number of factors, including those set forth
below and elsewhere in this prospectus supplement and the
accompanying prospectus. The factors set forth below and other
cautionary statements made in this prospectus supplement and the
accompanying prospectus should be read and understood as being
applicable to all related forward-looking statements wherever
they appear in this prospectus supplement and the accompanying
prospectus (including the documents incorporated by reference
herein and therein). The forward-looking statements contained in
this prospectus supplement and the accompanying prospectus
(including the documents incorporated by reference herein and
therein) represent our judgment as of the dates of this
prospectus supplement, the accompanying prospectus or the
documents incorporated by reference, as the case may be. We
caution readers not to place undue reliance on such statements.
We undertake no obligation to update publicly any
forward-looking statements for any reason, even if new
information becomes available or other events occur in the
future.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Examples of forward-looking statements discussed
in this prospectus supplement and the accompanying prospectus
(including the documents incorporated by reference herein and
therein) include, but are not limited to, statements with
respect to, and our performance may be affected by:
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">volatility in the coronary stent market,
    competitive offerings and the timing of receipt of regulatory
    approvals to market existing and anticipated drug-eluting stent
    technology and other coronary and peripheral stent platforms;
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">our ability to achieve significant growth in
    revenue, gross profit, earnings and cash flow throughout 2004
    following the launch of the TAXUS drug-eluting stent system in
    the United States, and to launch the TAXUS stent system in Japan
    in late 2005 or early 2006;
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">our ability to prevent disruptions to our TAXUS
    manufacturing processes and to maintain inventory levels
    consistent with forecasted demand around the world;
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the overall rate of physician conversion to
    drug-eluting stents and the expected slow but steady increase in
    drug-eluting stent adoption rates in Europe;
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the impact of the introduction of drug-eluting
    stents and third-party alliances on the size of the coronary
    stent market and distribution of share within the coronary stent
    market in the United States and around the world;
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the overall performance of drug-eluting stents
    and the results of drug-eluting stent clinical trials undertaken
    by us or our competitors;
    </FONT></TD>
</TR>

</TABLE>

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

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

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">our ability to capitalize on the opportunity in
    the drug-eluting stent market for significant growth in revenue
    and earnings and to achieve sustained worldwide market
    leadership positions through reinvestment in our drug-eluting
    stent program;
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">our ability to take advantage of our position as
    one of two early entrants in the United States drug-eluting
    stent market, to anticipate competitor products as they enter
    the market and to take advantage of opportunities that exist in
    the markets we serve;
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">our ability to manage research and development
    and other operating expenses, including royalty obligations, in
    light of significant expected revenue growth;
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">our ability to manage inventory levels, accounts
    receivables and gross margins relating to our TAXUS stent system
    and other products and to react effectively to worldwide
    economic and political conditions;
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">our ability to achieve benefits from our
    increased focus on internal research and development and our
    ability to capitalize on opportunities across our businesses;
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">our ability to integrate the acquisitions and
    other strategic alliances consummated since early 2001;
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">our ability to successfully complete planned
    clinical trials, to obtain and maintain regulatory approvals and
    to develop and launch products on a timely basis within cost
    estimates, including products resulting from purchased research
    and development;
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the timing, size and nature of strategic
    initiatives, market opportunities and research and development
    platforms available to us and the ultimate cost and success of
    these initiatives;
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">our ability to maintain a 24&nbsp;percent
    effective tax rate, excluding net special charges, during 2004;
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">our ability to meet our projected cash needs over
    the next twelve months, to maintain borrowing flexibility and to
    refinance our borrowings beyond the next twelve months;
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">risks associated with international operations
    including compliance with local legal and regulatory
    requirements;
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the potential effect of foreign currency
    fluctuations on revenues, expenses and resulting margins;
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the effect of litigation, risk management
    practices and compliance activities on our loss contingency,
    legal provision and cash flow;
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the impact of stockholder, patent, product
    liability, Medinol Ltd. and other litigation, as well as the
    ultimate outcome of the United States Department of Justice
    investigation;&nbsp;and
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the actual amount of future contingent
    consideration payments associated with and the actual future
    revenue for our acquisition of Advanced Bionics Corporation.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Several other important factors, in addition to
the specific factors discussed in connection with each
forward-looking statement individually, could affect our future
results and growth rates and could cause those results and rates
to differ materially from those expressed in the forward-looking
statements contained in this prospectus supplement and the
accompanying prospectus (including the documents incorporated by
reference herein). These additional factors include, among other
things, future economic, competitive, reimbursement and
regulatory conditions, new product introductions, demographic
trends, third-party intellectual property, financial market
conditions, our future business decisions and those of our
competitors, all of which are difficult or impossible to predict
accurately and many of which
</FONT>

<P align="center"><FONT size="2">S-4
</FONT>
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<DIV align="left">
<FONT size="2">are beyond our control. Therefore, we wish to
caution each reader of this prospectus supplement and the
accompanying prospectus (including the documents incorporated by
reference herein) to consider carefully these factors as well as
the specific factors discussed with each forward-looking
statement in this prospectus supplement and the accompanying
prospectus and the documents incorporated by reference herein
and as disclosed in our filings with the Securities and Exchange
Commission, or SEC. These factors, in some cases, have affected,
and in the future (together with other factors) could affect,
our ability to implement our business strategy and may cause
actual results to differ materially from those contemplated by
the statements expressed in this prospectus supplement and the
accompanying prospectus.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">For additional information relating to these and
other risks, uncertainties and assumptions, see
&#147;Management&#146;s Discussion and Analysis of Financial
Condition and Results of Operations&#148; and &#147;Boston
Scientific Corporation&#148; in our Form&nbsp;10-K for the year
ended December&nbsp;31, 2003 (the &#147;2003
Form&nbsp;10-K&#148;), as filed with the SEC on March&nbsp;15,
2004, and our Form&nbsp;10-Q for the quarter ended
March&nbsp;31, 2004 (the &#147;March 2004 Form&nbsp;10-Q&#148;),
as filed with the SEC on May&nbsp;7, 2004, each incorporated by
reference herein.
</FONT>

<P align="center"><FONT size="2">S-5
</FONT>
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<DIV align="left">
<A name='102'></A>
</DIV>

<!-- link1 "SUMMARY" -->

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">This summary description of our business may
not contain all the information that may be important to you.
You should read this entire prospectus supplement and the
accompanying prospectus, including the financial data and
related notes included or incorporated by reference herein,
before making an investment decision. The terms &#147;Boston
Scientific,&#148; &#147;our company&#148; and &#147;we&#148; as
used in this prospectus supplement refer to &#147;Boston
Scientific Corporation&#148; and its subsidiaries and
predecessors as a combined entity, except where it is made clear
that such term means only the parent company.</FONT></I>

<P align="center">
<B><FONT size="2">Boston Scientific Corporation</FONT></B>

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We are a worldwide developer, manufacturer and
marketer of medical devices whose products are used in a broad
range of interventional medical specialties, including
interventional cardiology, peripheral interventions,
neurovascular intervention, electrophysiology, vascular surgery,
endoscopy, oncology, urology and gynecology. Since we were
formed in 1979, we have advanced the practice of less-invasive
medicine by providing a broad portfolio of innovative products,
technologies and services across a wide range of medical
specialties. Our products are generally inserted into the human
body through natural openings or small incisions in the skin and
can be guided to most areas of the anatomy to diagnose and treat
a wide range of medical problems. These products help physicians
and other medical professionals improve their patients&#146;
quality of life by providing alternatives to surgery. We
recorded net sales of $3.5 billion in 2003 and $1.1&nbsp;billion
in the first quarter of 2004.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Since 1995, we have undertaken a strategic
acquisition program to assemble the lines of business necessary
to achieve the critical mass that allows us to continue to be a
leader in the medical industry. In 2003, we invested more than
$350&nbsp;million in approximately 25 strategic initiatives.
These initiatives are each intended to further expand our
product offerings by adding new or complementary technologies to
our already diverse technology portfolio. As the health care
environment continues to undergo rapid change, we expect that we
will continue to focus on strategic acquisitions and alliances
in order to provide new products and technology platforms to our
customers. In addition, we expect to make additional investments
in several of our existing relationships.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We operate through four business segments divided
among the geographic regions of the United States, Europe, Japan
and Inter-Continental. Maintaining and expanding our
international presence is an important component of our
long-term growth plan. Through our international presence, we
seek to increase net sales and market share, leverage
relationships with leading physicians and their clinical
research programs, accelerate the time within which new products
can be brought to market and gain access to worldwide
technological developments that may be implemented across our
product lines. Sales outside of the United States accounted for
approximately 45&nbsp;percent of our net sales in 2003 and in
the first quarter of 2004.
</FONT>

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our products are offered for sale by two
dedicated business groups: Cardiovascular and Endosurgery. The
Cardiovascular organization focuses on products and technologies
for use in interventional cardiology, peripheral interventions,
vascular surgery, electrophysiology, and neurovascular
procedures. The Endosurgery organization focuses on products and
technologies for use in oncology, endoscopy, urology and
gynecology procedures. During 2003, approximately
72&nbsp;percent of our net sales were derived from the
Cardiovascular business and approximately 28&nbsp;percent from
the Endosurgery business. For the three months ended
</FONT>

<P align="center"><FONT size="2">S-6
</FONT>
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<DIV align="left">
<FONT size="2">March&nbsp;31, 2004, approximately
76&nbsp;percent of our net sales were derived from the
Cardiovascular business and approximately 24&nbsp;percent from
the Endosurgery business.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Cardiovascular. </FONT></I><FONT size="2">Our
principal Cardiovascular products are offered in the following
medical areas:
</FONT>

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

<TR>
    <TD width="58%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="39%"><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">&#149;&nbsp;Coronary Stents
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#149;&nbsp;Peripheral Interventions
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&#149;&nbsp;Coronary Revascularization
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#149;&nbsp;Caval Interruption Systems
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&#149;&nbsp;Embolic Protection
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#149;&nbsp;Electrophysiology
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&#149;&nbsp;Intraluminal Ultrasound Imaging
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#149;&nbsp;Neurovascular Intervention
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&#149;&nbsp;Fluid Management
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#149;&nbsp;Vascular Surgery
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Endosurgery. </FONT></I><FONT size="2">Our
principal Endosurgery products are offered in the following
medical areas:
</FONT>

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

<TR>
    <TD width="63%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="34%"><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">&#149;&nbsp;Esophageal, Gastric and Duodenal
    (Small Intestine) Intervention
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#149;&nbsp;Prostate Intervention
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&#149;&nbsp;Colorectal Intervention
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#149;&nbsp;Urinary Incontinence
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&#149;&nbsp;Pancreatico-Biliary Intervention
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#149;&nbsp;Gynecology
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&#149;&nbsp;Pulmonary Intervention
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#149;&nbsp;Oncology Intervention
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&#149;&nbsp;Urinary Tract Intervention and
    Bladder Disease
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#149;&nbsp;Central Venous Access
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our mission is to improve the quality of patient
care and the productivity of health care delivery through the
development and advocacy of less-invasive medical devices and
procedures. This is accomplished through the continuing
refinement of existing products and procedures and the
investigation and development of new technologies that can
reduce risk, trauma, cost, procedure time and the need for
aftercare. Our approach to innovation combines internally
developed products and technologies with those obtained
externally through strategic acquisitions and alliances.
Building relationships with development companies and inventors
helps us enrich our current franchises as well as expand into
complementary businesses.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Key elements of our overall business strategy
include the following:
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Innovation. </FONT></I><FONT size="2">We are
committed to harnessing technological innovation and our
approach to technology innovation includes a mixture of tactical
and strategic initiatives that are designed to offer sustainable
growth in the near and long term. Combining internally developed
products and technologies with those obtained through
acquisition and alliances allows us to focus on and deliver
products currently in our pipeline as well as strengthen our
technology portfolio by accessing third party technologies.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Clinical Excellence.</FONT></I><FONT size="2">
Our commitment to innovation is further demonstrated by our
rapidly expanding clinical capabilities. Our clinical teams are
organized by therapeutic specialty to better support our
research and development pipeline and marketing and sales
efforts.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Product Diversity.
</FONT></I><FONT size="2">We offer products in numerous product
categories, which are used by physicians throughout the world in
a broad range of diagnostic and therapeutic procedures. The
breadth and diversity of our product lines permit medical
specialists and purchasing organizations to satisfy many of
their less-invasive medical device requirements from a single
source.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Operational Excellence.
</FONT></I><FONT size="2">We are focused on continuously
improving our supply chain effectiveness, strengthening our
manufacturing processes and optimizing our plant network in
</FONT>

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

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left">
<FONT size="2">order to increase operational efficiencies within
the organization. By centralizing operations at the corporate
level and shifting global manufacturing along product lines, we
believe we are able to leverage our existing resources and
concentrate on new product development, including enhancement of
existing products, and their commercial launch.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Focused Marketing.
</FONT></I><FONT size="2">Each of our business groups maintain
dedicated sales forces and marketing teams focusing on
physicians who specialize in the diagnosis and treatment of
different medical conditions. We believe that this focused
disease state management enables us to develop highly
knowledgeable and dedicated sales representatives and to foster
close professional relationships with physicians.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Active Participation In The Medical Community.
</FONT></I><FONT size="2">We believe that we have excellent
working relationships with physicians and others in the medical
industry, which enable us to gain a detailed understanding of
new therapeutic and diagnostic alternatives, and to respond
quickly to the changing needs of physicians and patients. Active
participation in the medical community contributes to physician
understanding and adoption of less-invasive techniques and the
expansion of these techniques into new therapeutic and
diagnostic areas.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Corporate Culture.
</FONT></I><FONT size="2">Our management believes that success
and leadership evolve from a motivating corporate culture which
rewards achievement, respects and values individual employees
and customers, and focuses on quality, technology, integrity and
service. We believe that our success is attributable in large
part to the high caliber of our employees and our commitment to
respecting the values on which our success has been based.
</FONT>

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On June&nbsp;1, 2004, we acquired
100&nbsp;percent of the fully diluted equity of Advanced Bionics
Corporation, a privately-held company located in Valencia,
California, for an initial payment of approximately
$740&nbsp;million in cash, plus earn out payments tied to future
performance milestones. The initial purchase price was funded by
the issuance of commercial paper.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The acquisition will expand our technology
portfolio into the rapidly growing implantable microelectronic
device market. Advanced Bionics has developed implantable
microelectronics for treating numerous neurological disorders.
Its neuromodulation technology includes a range of
neurostimulators (or implantable pulse generators), programmable
drug pumps and cochlear implants.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The acquisition has been structured to include a
substantial earnout mechanism. Performance milestones are
primarily based on the achievement of net sales, with certain
milestone payments also tied to profitability. The milestones
are segmented by the four principal technology platforms
(cochlear implants, implantable pulse generators, drug pumps and
bion microstimulators), each with a 72-month earnout horizon.
Base earnout payments on these performance milestones
approximate two and a quarter times incremental sales for each
annual period. There are also bonus earnout payments available
based on the attainment of certain aggregate sales performance
targets and a certain gross margin level.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our best estimate of future contingent
consideration (undiscounted) that we would be required to make
associated with our acquisition of Advanced Bionics is
approximately $2.0&nbsp;billion. The estimated cumulative
specified revenue level associated with our best estimate is
approximately $4.5&nbsp;billion during the period from 2004
through 2013.
</FONT>

<P align="center">
<HR size="1" width="38%" align="center" noshade>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">Our principal executives offices are located
at One Boston Scientific Place, Natick, MA 01760-1537. Our
telephone number is (508)&nbsp;650-8000. Our website is located
at www.bostonscientific.com. Information contained on our
website is not incorporated in this prospectus supplement or the
accompanying prospectus. <BR>
</FONT></B>

<P align="center"><FONT size="2">S-8
</FONT>
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<P align="center">
<B><FONT size="2">The Offering</FONT></B>

<DIV>&nbsp;</DIV>

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

<TR>
    <TD width="36%"></TD>
    <TD width="1%"></TD>
    <TD width="63%"></TD>
</TR>

<TR>
    <TD valign="top">
    <B><FONT size="2">Notes Offered</FONT></B></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">$600&nbsp;million initial principal amount of
    5.45% notes due 2014.
    </FONT></TD>
</TR>

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

<TR>
    <TD valign="top">
    <B><FONT size="2">Maturity Date</FONT></B></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">June&nbsp;15, 2014.
    </FONT></TD>
</TR>

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

<TR>
    <TD valign="top">
    <B><FONT size="2">Interest Payment Dates</FONT></B></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">June&nbsp;15 and December&nbsp;15 of each year,
    commencing December&nbsp;15, 2004.
    </FONT></TD>
</TR>

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

<TR>
    <TD valign="top">
    <B><FONT size="2">Redemption</FONT></B></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">At our option, we may redeem any or all of the
    notes, in whole or in part, at any time, as described on
    pages&nbsp;S-16 and S-17 under the heading &#147;Description of
    the Notes&nbsp;&#151; Optional Redemption&#148; in this
    prospectus supplement.
    </FONT></TD>
</TR>

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

<TR>
    <TD valign="top">
    <B><FONT size="2">Ranking</FONT></B></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">The notes:
    </FONT></TD>
</TR>

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

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">&#149;&nbsp;are unsecured;
    </FONT></TD>
</TR>

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

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">&#149;&nbsp;rank equally with all of our other
    unsecured and unsubordinated debt;
    </FONT></TD>
</TR>

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

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">&#149;&nbsp;are senior to any existing or future
    subordinated debt;
    </FONT></TD>
</TR>

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

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">&#149;&nbsp;are effectively junior to any
    existing or future secured debt; and
    </FONT></TD>
</TR>

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

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">&#149;&nbsp;are effectively junior to any
    existing and future liabilities of our subsidiaries.
    </FONT></TD>
</TR>

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

<TR>
    <TD valign="top">
    <B><FONT size="2">Covenants</FONT></B></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">We will issue the notes under an indenture
    containing covenants for your benefit. These covenants restrict
    our ability, with certain exceptions, to:
    </FONT></TD>
</TR>

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

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">&#149;&nbsp;merge or consolidate with another
    entity or transfer all or substantially all of our property and
    assets; and
    </FONT></TD>
</TR>

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

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">&#149;&nbsp;incur liens.
    </FONT></TD>
</TR>

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

<TR>
    <TD valign="top">
    <B><FONT size="2">Additional Notes</FONT></B></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">We may create and issue further notes ranking
    equally and ratably with the notes in all respects, so that such
    further notes will be consolidated and form a single series with
    the notes and will have the same terms as to status, redemption
    or otherwise as the notes.
    </FONT></TD>
</TR>

</TABLE>

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

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<DIV align="left">
<A name='103'></A>
</DIV>

<!-- link1 "USE OF PROCEEDS" -->

<P align="center">
<B><FONT size="2">USE OF PROCEEDS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We estimate that the net proceeds to us from this
notes offering will be approximately $594.3&nbsp;million after
deducting estimated underwriting discounts and commissions, and
estimated expenses. A significant portion of the net proceeds
from this notes offering will be used to repay commercial paper
borrowings. The amount outstanding under our commercial paper
program as of March&nbsp;31, 2004 was approximately
$946&nbsp;million, at a weighted average interest rate of 1.13
percent per year, which rate is subject to change over time. Our
commercial paper borrowings financed strategic alliances and
acquisitions, facility expansions, common stock repurchases and
other general corporate purposes. Approximately
$740&nbsp;million of commercial paper borrowings were incurred
after March&nbsp;31, 2004 to finance our recent acquisition of
Advanced Bionics Corporation. See &#147;Summary&nbsp;&#151;
Recent Developments.&#148; We expect to use the remainder of the
net proceeds of this offering, if any, principally for general
corporate purposes.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">To the extent that the net proceeds are not used
immediately for the above purposes, these funds will be invested
in short- and/or medium-term investment grade securities.
</FONT>

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

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left">
<A name='104'></A>
</DIV>

<!-- link1 "CAPITALIZATION" -->

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following table sets forth our capitalization
as of March&nbsp;31, 2004 and as adjusted to reflect the
issuance of the notes offered hereby and application of the net
proceeds of the offering as described above under &#147;Use of
Proceeds.&#148; For further discussion of our capitalization,
see the March 2004 Form&nbsp;10-Q, incorporated by reference
herein.
</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="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="66%"><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="7%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">March&nbsp;31, 2004</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7" 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">Actual</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">As Adjusted</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>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">(in millions)</FONT></B></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">Commercial paper&nbsp;&#151;
    short-term<SUP>(1)</SUP>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">546</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">546</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Notes payable and current maturities of long-term
    debt
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">518</FONT></TD>
    <TD><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" nowrap><FONT size="2">518</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>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <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 short-term debt
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,064</FONT></TD>
    <TD><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" nowrap><FONT size="2">1,064</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Notes offered hereby
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><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" nowrap><FONT size="2">600</FONT></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">Long-term debt, net of current
    portion<SUP>(2)</SUP>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">611</FONT></TD>
    <TD><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" nowrap><FONT size="2">11</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>

</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 debt
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,675</FONT></TD>
    <TD><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" nowrap><FONT size="2">1,675</FONT></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">Stockholders&#146; equity:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></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 colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Preferred stock, $.01 par value&nbsp;&#151;
    authorized 50,000,000&nbsp;shares, none issued and outstanding
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</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">Common stock, $.01 par value&nbsp;&#151;
    authorized 1,200,000,000&nbsp;shares, 835,084,057&nbsp;shares
    issued and outstanding
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><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>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><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><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Additional paid-in capital
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,355</FONT></TD>
    <TD><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" nowrap><FONT size="2">1,355</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">Retained earnings
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,928</FONT></TD>
    <TD><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" nowrap><FONT size="2">1,928</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">Accumulated other comprehensive loss
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(72</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(72</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</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>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <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 stockholders&#146; equity
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,219</FONT></TD>
    <TD><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" nowrap><FONT size="2">3,219</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>

</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 capitalization
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,894</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,894</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>

</TR>

</TABLE>
</CENTER>

<P align="left">
<HR size="1" width="27%" align="left" 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">Amounts shown do not reflect commercial paper
    issued after March&nbsp;31, 2004, including approximately
    $740&nbsp;million of commercial paper issued to finance our
    acquisition of Advanced Bionics Corporation in June 2004. See
    &#147;Summary&nbsp;&#151; Recent Developments.&#148;
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD><SUP><FONT size="2">(2)</FONT></SUP><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">At March&nbsp;31, 2004, we expected that a
    minimum of $600&nbsp;million of our short-term obligations would
    remain outstanding beyond the twelve month period following such
    date and accordingly, we classified this portion of our
    obligations as long-term debt.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">S-11
</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left">
<A name='105'></A>
</DIV>

<!-- link1 "RATIOS OF EARNINGS TO FIXED CHARGES" -->

<P align="center">
<B><FONT size="2">RATIOS OF EARNINGS TO FIXED CHARGES</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our ratios of earnings to fixed charges on a
consolidated basis for the periods indicated were as follows
(unaudited):
</FONT>

<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="39%"><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="1%"><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="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><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="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><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="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><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="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><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="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><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="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Three Months</FONT></B></TD>
    <TD></TD>
    <TD colspan="19"></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Ended March&nbsp;31,</FONT></B></TD>
    <TD></TD>
    <TD colspan="19" align="center" nowrap><B><FONT size="1">Year Ended December&nbsp;31,</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></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">2004</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">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>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2000</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">1999</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>
    <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>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="27"></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="27" align="center" nowrap><B><FONT size="1">(in millions)</FONT></B></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Fixed charges:</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></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 colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Interest expense and debt issuance costs
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">46</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">43</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">59</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">70</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">122</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 portion of rental expense
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><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>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><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>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><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>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><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>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">12</FONT></TD>
    <TD><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" nowrap><FONT size="2">15</FONT></TD>
    <TD><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" nowrap><FONT size="2">15</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>
    <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">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">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">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">56</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">54</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">71</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">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">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">137</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>
    <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">
    <B><FONT size="2">Earnings:</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></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 colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Income before income taxes
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">255</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">140</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">643</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">549</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">44</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">527</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">562</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 per above
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><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>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><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>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">56</FONT></TD>
    <TD><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" nowrap><FONT size="2">54</FONT></TD>
    <TD><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" nowrap><FONT size="2">71</FONT></TD>
    <TD><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" nowrap><FONT size="2">85</FONT></TD>
    <TD><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" nowrap><FONT size="2">137</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">Net distributed/(undistributed) equity in
    earnings of equity investees
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><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" nowrap><FONT size="2">(13</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><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>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</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">Less: capitalized interest
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><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" nowrap><FONT size="2">1</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>
    <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 adjusted
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">268</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">153</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">699</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">603</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">102</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">625</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">697</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>
    <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">
    <B><FONT size="2">Ratio of earnings to fixed charges</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">20.62</FONT></TD>
    <TD><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" nowrap><FONT size="2">11.77</FONT></TD>
    <TD><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" nowrap><FONT size="2">12.48</FONT></TD>
    <TD><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" nowrap><FONT size="2">11.17</FONT></TD>
    <TD><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" nowrap><FONT size="2">1.44</FONT></TD>
    <TD><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" nowrap><FONT size="2">7.35</FONT></TD>
    <TD><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" nowrap><FONT size="2">5.09</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The ratios of earnings to fixed charges for the
three months ended March&nbsp;31, 2004 are not necessarily
indicative of the results that may be expected for the entire
year. The data above include merger-related and special charges
(credits) recorded in conjunction with acquisitions, strategic
alliances and litigation. The ratios above should be read in
conjunction with our consolidated financial statements
(including the notes thereto) included in the 2003
Form&nbsp;10-K and the March 2004 Form&nbsp;10-Q, which are
incorporated by reference herein.
</FONT>

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

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left">
<A name='106'></A>
</DIV>

<!-- link1 "SELECTED CONSOLIDATED FINANCIAL INFORMATION" -->

<P align="center">
<B><FONT size="2">SELECTED CONSOLIDATED FINANCIAL
INFORMATION</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following table sets forth certain of our
financial information and other operating information. The
consolidated financial information for each of the five years
ended December&nbsp;31, 2003, set forth below, has been derived
from our audited consolidated financial statements. The
consolidated financial statements for the three years ended
December&nbsp;31, 2003 have been audited by Ernst &#38; Young
LLP, independent auditors. The selected financial information
for the three month periods ended March&nbsp;31, 2004 and 2003
has been derived from unaudited consolidated financial
statements included in the March 2004 Form 10-Q, incorporated by
reference herein, which, in the opinion of our management,
include all adjustments (consisting of normal recurring
accruals) that are necessary for a fair presentation of the
financial position and the results of operations for such
periods. The operating results for the three months ended
March&nbsp;31, 2004 are not necessarily indicative of the
financial position and the results that may be expected for the
entire year. As shown below, operating data includes
merger-related and special charges (credits) recorded in
conjunction with acquisitions, strategic alliances and
litigation. The following information should be read in
conjunction with our consolidated financial statements
(including the notes thereto) included in the 2003
Form&nbsp;10-K and our unaudited condensed consolidated
financial statements (including the notes thereto) included in
the March 2004 Form&nbsp;10-Q, each of which is incorporated by
reference herein.
</FONT>

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

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

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Three Months</FONT></B></TD>
    <TD></TD>
    <TD colspan="19"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Ended March&nbsp;31,</FONT></B></TD>
    <TD></TD>
    <TD colspan="19" align="center" nowrap><B><FONT size="1">Year Ended December&nbsp;31,</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="19" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2004</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">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>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2000</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">1999</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></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>
    <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>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="27"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="27" align="center" nowrap><B><FONT size="1">(in millions, except per share data)</FONT></B></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Operating Data:</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</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">Net sales
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,082</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">807</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,476</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,919</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,673</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,664</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">2,842</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">Cost of products sold
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">292</FONT></TD>
    <TD><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" nowrap><FONT size="2">226</FONT></TD>
    <TD><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" nowrap><FONT size="2">961</FONT></TD>
    <TD><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" nowrap><FONT size="2">870</FONT></TD>
    <TD><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" nowrap><FONT size="2">919</FONT></TD>
    <TD><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" nowrap><FONT size="2">832</FONT></TD>
    <TD><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" nowrap><FONT size="2">986</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>
    <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 colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Gross profit
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">790</FONT></TD>
    <TD><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" nowrap><FONT size="2">581</FONT></TD>
    <TD><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" nowrap><FONT size="2">2,515</FONT></TD>
    <TD><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" nowrap><FONT size="2">2,049</FONT></TD>
    <TD><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" nowrap><FONT size="2">1,754</FONT></TD>
    <TD><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" nowrap><FONT size="2">1,832</FONT></TD>
    <TD><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" nowrap><FONT size="2">1,856</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">Selling, general and administrative expenses
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">348</FONT></TD>
    <TD><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" nowrap><FONT size="2">271</FONT></TD>
    <TD><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" nowrap><FONT size="2">1,171</FONT></TD>
    <TD><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" nowrap><FONT size="2">1,002</FONT></TD>
    <TD><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" nowrap><FONT size="2">926</FONT></TD>
    <TD><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" nowrap><FONT size="2">867</FONT></TD>
    <TD><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" nowrap><FONT size="2">842</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">Amortization expense
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">22</FONT></TD>
    <TD><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" nowrap><FONT size="2">20</FONT></TD>
    <TD><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" nowrap><FONT size="2">89</FONT></TD>
    <TD><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" nowrap><FONT size="2">72</FONT></TD>
    <TD><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" nowrap><FONT size="2">136</FONT></TD>
    <TD><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" nowrap><FONT size="2">91</FONT></TD>
    <TD><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" nowrap><FONT size="2">92</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">Royalties
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">22</FONT></TD>
    <TD><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" nowrap><FONT size="2">12</FONT></TD>
    <TD><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" nowrap><FONT size="2">54</FONT></TD>
    <TD><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" nowrap><FONT size="2">36</FONT></TD>
    <TD><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" nowrap><FONT size="2">35</FONT></TD>
    <TD><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" nowrap><FONT size="2">37</FONT></TD>
    <TD><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" nowrap><FONT size="2">46</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">Research and development expenses
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">134</FONT></TD>
    <TD><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" nowrap><FONT size="2">103</FONT></TD>
    <TD><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" nowrap><FONT size="2">452</FONT></TD>
    <TD><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" nowrap><FONT size="2">343</FONT></TD>
    <TD><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" nowrap><FONT size="2">275</FONT></TD>
    <TD><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" nowrap><FONT size="2">199</FONT></TD>
    <TD><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" nowrap><FONT size="2">197</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">Purchased research and development
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><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" nowrap><FONT size="2">13</FONT></TD>
    <TD><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" nowrap><FONT size="2">37</FONT></TD>
    <TD><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" nowrap><FONT size="2">85</FONT></TD>
    <TD><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" nowrap><FONT size="2">282</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</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">Litigation-related charges (credits), net
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><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" nowrap><FONT size="2">7</FONT></TD>
    <TD><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" nowrap><FONT size="2">15</FONT></TD>
    <TD><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" nowrap><FONT size="2">(99</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</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">Restructuring and merger-related charges (credits)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><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" nowrap><FONT size="2">58</FONT></TD>
    <TD><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" nowrap><FONT size="2">(10</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</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>
    <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 colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total operating expenses
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">526</FONT></TD>
    <TD><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" nowrap><FONT size="2">426</FONT></TD>
    <TD><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" nowrap><FONT size="2">1,818</FONT></TD>
    <TD><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" nowrap><FONT size="2">1,439</FONT></TD>
    <TD><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" nowrap><FONT size="2">1,654</FONT></TD>
    <TD><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" nowrap><FONT size="2">1,252</FONT></TD>
    <TD><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" nowrap><FONT size="2">1,167</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>
    <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 valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Operating income
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">264</FONT></TD>
    <TD><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" nowrap><FONT size="2">155</FONT></TD>
    <TD><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" nowrap><FONT size="2">697</FONT></TD>
    <TD><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" nowrap><FONT size="2">610</FONT></TD>
    <TD><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" nowrap><FONT size="2">100</FONT></TD>
    <TD><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" nowrap><FONT size="2">580</FONT></TD>
    <TD><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" nowrap><FONT size="2">689</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">Other income (expense):
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</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">Interest expense
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(11</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(11</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(46</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(43</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(59</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(70</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(118</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other, net
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><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>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(4</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(8</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(18</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><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>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">17</FONT></TD>
    <TD><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" nowrap><FONT size="2">(9</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</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>
    <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 valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Income before income taxes
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">255</FONT></TD>
    <TD><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" nowrap><FONT size="2">140</FONT></TD>
    <TD><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" nowrap><FONT size="2">643</FONT></TD>
    <TD><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" nowrap><FONT size="2">549</FONT></TD>
    <TD><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" nowrap><FONT size="2">44</FONT></TD>
    <TD><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" nowrap><FONT size="2">527</FONT></TD>
    <TD><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" nowrap><FONT size="2">562</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">Income taxes
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">61</FONT></TD>
    <TD><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" nowrap><FONT size="2">43</FONT></TD>
    <TD><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" nowrap><FONT size="2">171</FONT></TD>
    <TD><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" nowrap><FONT size="2">176</FONT></TD>
    <TD><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" nowrap><FONT size="2">98</FONT></TD>
    <TD><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" nowrap><FONT size="2">154</FONT></TD>
    <TD><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" nowrap><FONT size="2">191</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>
    <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 valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net income (loss)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">194</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">97</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">472</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">373</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(54</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">373</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">371</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>
    <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>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net income (loss) per common share:<SUP>(1)</SUP>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></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">Basic
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.23</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.12</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.57</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.46</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(0.07</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.46</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">0.46</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">Assuming dilution
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.23</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.11</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.56</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.45</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(0.07</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.46</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">0.45</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">Weighted average shares outstanding&nbsp;&#151;
    assuming dilution<SUP>(1)</SUP>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">855.2</FONT></TD>
    <TD><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" nowrap><FONT size="2">844.0</FONT></TD>
    <TD><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" nowrap><FONT size="2">845.4</FONT></TD>
    <TD><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" nowrap><FONT size="2">830.0</FONT></TD>
    <TD><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" nowrap><FONT size="2">802.8</FONT></TD>
    <TD><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" nowrap><FONT size="2">816.6</FONT></TD>
    <TD><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" nowrap><FONT size="2">822.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">S-13
</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></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="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><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="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><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="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><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="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><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="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><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="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><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="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Three Months</FONT></B></TD>
    <TD></TD>
    <TD colspan="19"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Ended March&nbsp;31,</FONT></B></TD>
    <TD></TD>
    <TD colspan="19" align="center" nowrap><B><FONT size="1">Year Ended December&nbsp;31,</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="19" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2004</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">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>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2000</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">1999</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>
    <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>
    <TD></TD>
    <TD></TD>
    <TD colspan="27"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="27" align="center" nowrap><B><FONT size="1">(in millions, except per share data)</FONT></B></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Balance Sheet Data:</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><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">Cash, cash equivalents and short- term investments
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">691</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">294</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">752</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">277</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">180</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">54</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">64</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">Working capital
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">246</FONT></TD>
    <TD><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" nowrap><FONT size="2">148</FONT></TD>
    <TD><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" nowrap><FONT size="2">487</FONT></TD>
    <TD><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" nowrap><FONT size="2">285</FONT></TD>
    <TD><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" nowrap><FONT size="2">275</FONT></TD>
    <TD><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" nowrap><FONT size="2">173</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><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">Total assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,844</FONT></TD>
    <TD><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" nowrap><FONT size="2">4,612</FONT></TD>
    <TD><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" nowrap><FONT size="2">5,699</FONT></TD>
    <TD><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" nowrap><FONT size="2">4,450</FONT></TD>
    <TD><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" nowrap><FONT size="2">3,974</FONT></TD>
    <TD><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" nowrap><FONT size="2">3,427</FONT></TD>
    <TD><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" nowrap><FONT size="2">3,572</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">Commercial paper&nbsp;&#151; short-term
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">546</FONT></TD>
    <TD><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" nowrap><FONT size="2">421</FONT></TD>
    <TD><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" nowrap><FONT size="2">547</FONT></TD>
    <TD><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" nowrap><FONT size="2">88</FONT></TD>
    <TD><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" nowrap><FONT size="2">99</FONT></TD>
    <TD><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" nowrap><FONT size="2">56</FONT></TD>
    <TD><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" nowrap><FONT size="2">277</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">Notes payable and current maturities of long-term
    debt
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">518</FONT></TD>
    <TD><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" nowrap><FONT size="2">4</FONT></TD>
    <TD><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" nowrap><FONT size="2">6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><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" nowrap><FONT size="2">132</FONT></TD>
    <TD><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" nowrap><FONT size="2">204</FONT></TD>
    <TD><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" nowrap><FONT size="2">323</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">Long-term debt, net of current
    portion<SUP>(2)</SUP>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">611</FONT></TD>
    <TD><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" nowrap><FONT size="2">826</FONT></TD>
    <TD><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" nowrap><FONT size="2">1,172</FONT></TD>
    <TD><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" nowrap><FONT size="2">847</FONT></TD>
    <TD><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" nowrap><FONT size="2">973</FONT></TD>
    <TD><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" nowrap><FONT size="2">574</FONT></TD>
    <TD><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" nowrap><FONT size="2">688</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">Stockholders&#146; equity
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,219</FONT></TD>
    <TD><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" nowrap><FONT size="2">2,475</FONT></TD>
    <TD><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" nowrap><FONT size="2">2,862</FONT></TD>
    <TD><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" nowrap><FONT size="2">2,467</FONT></TD>
    <TD><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" nowrap><FONT size="2">2,015</FONT></TD>
    <TD><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" nowrap><FONT size="2">1,935</FONT></TD>
    <TD><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" nowrap><FONT size="2">1,724</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">Book value per common share<SUP>(1)</SUP>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3.85</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3.02</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3.46</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3.00</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2.49</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2.42</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">2.11</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Other Data:</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><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">Cash provided by operating activities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">42</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">109</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">787</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">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">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">490</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">739</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">776</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">Cash used for investing activities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(147</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(289</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(871</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(485</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(800</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(107</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(185</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cash provided by (used for) financing activities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">49</FONT></TD>
    <TD><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" nowrap><FONT size="2">195</FONT></TD>
    <TD><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" nowrap><FONT size="2">487</FONT></TD>
    <TD><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" nowrap><FONT size="2">(175</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">437</FONT></TD>
    <TD><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" nowrap><FONT size="2">(638</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(593</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">EBITDA<SUP>(3)</SUP>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">320</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">193</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">879</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">748</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">332</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">777</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">856</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">
<HR size="1" width="27%" align="left" 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">We paid a two-for-one stock split that was
    effected in the form of a 100&nbsp;percent stock dividend on
    November&nbsp;5, 2003. All historical amounts have been restated
    to reflect the stock split.
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD><SUP><FONT size="2">(2)</FONT></SUP><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">At March&nbsp;31, 2004, we expected that a
    minimum of $600&nbsp;million of our short-term obligations would
    remain outstanding beyond the twelve month period following such
    date and, accordingly, we classified this portion of our
    obligations as long-term debt.
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD><SUP><FONT size="2">(3)</FONT></SUP><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Management uses EBITDA to assess operating
    performance and believes it may assist users of our financial
    statements in analyzing the underlying trends in our business
    over time. Users of our financial statements should consider
    this non-GAAP financial information in addition to, not as a
    substitute for, or as superior to, financial information
    prepared in accordance with GAAP. The following represents a
    reconciliation of EBITDA to net income (loss), the most directly
    comparable financial measure calculated in accordance with GAAP:
    </FONT></TD>
</TR>

</TABLE>

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

<TR>
    <TD width="40%"><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="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="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="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><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="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><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="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><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="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><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="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Three Months</FONT></B></TD>
    <TD></TD>
    <TD colspan="19"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Ended March&nbsp;31,</FONT></B></TD>
    <TD></TD>
    <TD colspan="19" align="center" nowrap><B><FONT size="1">Year Ended December&nbsp;31,</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="19" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2004</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">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>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2000</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">1999</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>
    <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>
    <TD></TD>
    <TD></TD>
    <TD colspan="27"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="27" align="center" nowrap><B><FONT size="1">(in millions)</FONT></B></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Reconciliation between EBITDA and net income
    (loss):</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><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">Net income (loss)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">194</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">97</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">472</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">373</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(54</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">373</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">371</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">Income taxes
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">61</FONT></TD>
    <TD><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" nowrap><FONT size="2">43</FONT></TD>
    <TD><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" nowrap><FONT size="2">171</FONT></TD>
    <TD><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" nowrap><FONT size="2">176</FONT></TD>
    <TD><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" nowrap><FONT size="2">98</FONT></TD>
    <TD><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" nowrap><FONT size="2">154</FONT></TD>
    <TD><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" nowrap><FONT size="2">191</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">Interest expense
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><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>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><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>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">46</FONT></TD>
    <TD><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" nowrap><FONT size="2">43</FONT></TD>
    <TD><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" nowrap><FONT size="2">59</FONT></TD>
    <TD><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" nowrap><FONT size="2">70</FONT></TD>
    <TD><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" nowrap><FONT size="2">118</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">Interest income
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(6</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(5</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(3</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Depreciation and amortization
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><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><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">43</FONT></TD>
    <TD><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" nowrap><FONT size="2">196</FONT></TD>
    <TD><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" nowrap><FONT size="2">161</FONT></TD>
    <TD><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" nowrap><FONT size="2">232</FONT></TD>
    <TD><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" nowrap><FONT size="2">181</FONT></TD>
    <TD><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" nowrap><FONT size="2">178</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>
    <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 align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">EBITDA
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">320</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">193</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">879</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">748</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">332</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">777</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">856</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>
    <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>

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

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<DIV align="left">
<A name='107'></A>
</DIV>

<!-- link1 "DESCRIPTION OF THE NOTES" -->

<P align="center">
<B><FONT size="2">DESCRIPTION OF THE NOTES</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">The following description of the particular
terms of the notes offered hereby (referred to in the
accompanying prospectus as the &#147;Debt Securities&#148;)
supplements, and to the extent inconsistent therewith replaces,
the description of the general terms and provisions of the Debt
Securities set forth in the accompanying prospectus under the
caption &#147;Description of Debt Securities&#148;, to which
description reference is hereby made. Capitalized terms not
defined in this section have the meanings assigned to such terms
in the accompanying prospectus.</FONT></I>

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The notes offered hereby will be limited
initially to $600&nbsp;million aggregate principal amount and
will mature on June&nbsp;15, 2014. The notes will not be
entitled to a sinking fund. Interest at the applicable annual
rate set forth on the cover page of this prospectus supplement
will be payable semiannually on June&nbsp;15 and
December&nbsp;15, commencing December&nbsp;15, 2004, to the
persons in whose names the notes are registered at the close of
business on June&nbsp;1 or December&nbsp;1, as the case may be,
preceding such interest payment date. Interest on the notes will
accrue from June&nbsp;25, 2004 or from the most recent interest
payment date to which interest has been paid or provided for to,
but excluding, the next interest payment date. The notes
constitute a separate series of Debt Securities under the
Indenture to be dated on or about June&nbsp;25, 2004, between us
and the trustee (the &#147;Indenture&#148;), and will be issued
in denominations of $1,000 and integral multiples thereof.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The notes will be unsecured and will rank on a
parity with each other and with all other of our unsecured and
unsubordinated indebtedness from time to time outstanding. The
notes will rank senior to any future unsecured and subordinated
debt, effectively junior to our secured debt and effectively
junior to liabilities of our subsidiaries, in each case as may
be outstanding from time to time.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The provisions described in the accompanying
prospectus under &#147;Description of Debt Securities&#148; will
be applicable to the notes, except to the extent such provisions
are inconsistent with this Description of the Notes. In
particular, the Limitation on Liens covenant described below
replaces the Limitation on Liens covenant found in the
accompanying prospectus under the caption &#147;Description of
Debt Securities&#148; in its entirety.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We may create and issue further notes ranking
equally and ratably with the notes in all respects, so that such
further notes will be consolidated and form a single series with
the notes and will have the same terms as to status, redemption
or otherwise as the notes.
</FONT>

<P align="left">
<B><FONT size="2">Limitation on Liens</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We will not, and will not permit any of our
Subsidiaries to, directly or indirectly, create, incur, assume
or suffer to exist any Lien upon any of our property, assets or
revenues, whether now owned or hereafter acquired, except for:
(i)&nbsp;Liens for taxes not yet due or which are being
contested in good faith by appropriate proceedings; <I>provided
</I>that adequate reserves with respect thereto are maintained
on our or our Subsidiaries&#146; books, as the case may be, in
conformity with GAAP; (ii)&nbsp;carriers&#146;,
warehousemen&#146;s, mechanics&#146;, materialmen&#146;s,
repairmen&#146;s or other like Liens arising in the ordinary
course of business that are not overdue for a period of more
than 60&nbsp;days or which are being contested in good faith by
appropriate proceedings; (iii)&nbsp;pledges or deposits in
connection with workers&#146; compensation, unemployment
insurance and other social security legislation and deposits
securing liability to insurance carriers under insurance or
self-insurance arrangements; (iv)&nbsp;deposits to secure the
performance of bids, trade contracts (other than for borrowed
money), leases, statutory obligations, surety and appeal bonds,
performance bonds and other obligations of a like nature
incurred in the ordinary course of business; (v)&nbsp;easements,
rights-of-way, restrictions and other similar encumbrances
incurred in the ordinary course of business which, in the
aggregate, are not substantial in
</FONT>

<P align="center"><FONT size="2">S-15
</FONT>

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<DIV align="left">
<FONT size="2">amount and which do not in any case materially
detract from the value of the property subject thereto or
materially interfere with the ordinary conduct of our business
or that of such Subsidiary; (vi)&nbsp;Liens in existence on the
date of the first issuance by us of Senior Debt Securities
issued pursuant to the Indenture; <I>provided </I>that no such
Lien is spread to cover any additional property after such date
and that the amount of Debt secured thereby is not increased;
(vii)&nbsp;Liens securing our and our Subsidiaries&#146; Debt
incurred to finance the acquisition of fixed or capital assets;
<I>provided </I>that (A)&nbsp;such Liens will be created
substantially simultaneously with the acquisition of such fixed
or capital assets, (B)&nbsp;such Liens do not at any time
encumber any property other than the property financed by such
Debt and (C)&nbsp;the amount of Debt secured thereby is not
increased; (viii)&nbsp;Liens on the property or assets of a
corporation that becomes a Subsidiary after the date hereof;
provided that (A)&nbsp;such Liens existed at the time such
corporation became a Subsidiary and were not created in
anticipation thereof, (B)&nbsp;any such Lien is not spread to
cover any property or assets or such corporation after the time
such corporation becomes a Subsidiary, and (C)&nbsp;the amount
of Debt secured thereby is not increased; (ix)&nbsp;Liens
pursuant to any Receivables Transactions in an aggregate
principal amount not exceeding 20% of Consolidated Tangible
Assets, and (x)&nbsp;Liens (not otherwise permitted hereunder)
(A)&nbsp;which secure obligations not exceeding the greater of
(X)&nbsp;$100.0&nbsp;million or (Y)&nbsp;20% of Consolidated Net
Worth, in each case in aggregate amount at any time outstanding,
or (B)&nbsp;with respect to which we effectively provide that
the Senior Debt Securities outstanding under the Indenture are
secured equally and ratably with (or, at our option prior to)
the Debt secured by such Liens.
</FONT>
</DIV>

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We may redeem the notes, in whole or in part, at
our option, at any time at a redemption price equal to the
greater of:
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">100% of the principal amount of the notes to be
    redeemed or
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">as determined by a Quotation Agent (as defined
    below), the sum of the present values of the remaining scheduled
    payments of principal and interest thereon (not including any
    portion of such payments of interest accrued to the date of
    redemption) discounted to the redemption date on a semiannual
    basis (assuming a 360-day year consisting of twelve 30-day
    months) at the Adjusted Treasury Rate (as defined below) plus
    12.5&nbsp;basis points
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">plus, in each case, accrued and unpaid interest
on the notes to the redemption date.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">&#147;Adjusted Treasury Rate&#148; means, with
respect to any redemption date, the rate per year equal to the
semiannual equivalent yield to maturity of the Comparable
Treasury Issue, assuming a price for the Comparable Treasury
Issue (expressed as a percentage of its principal amount) equal
to the Comparable Treasury Price for such redemption date.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">&#147;Comparable Treasury Issue&#148; means the
United States Treasury security selected by a Quotation Agent as
having maturity comparable to the remaining term of the notes to
be redeemed that would be utilized, at the time of selection and
in accordance with customary financial practice, in pricing new
issues of corporate debt securities of comparable maturity to
the remaining term of such notes.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">&#147;Quotation Agent&#148; means the Reference
Treasury Dealer appointed by the trustee after consultation with
us.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">&#147;Reference Treasury Dealer&#148; means
(1)&nbsp;Banc of America Securities LLC, Deutsche Bank
Securities Inc. and J.P. Morgan Securities Inc. and their
respective successors; provided, however, that if any of the
foregoing shall cease to be a primary United States Government
securities dealer in New York City (a &#147;Primary Treasury
Dealer&#148;), we shall substitute therefore another
</FONT>

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

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<DIV align="left">
<FONT size="2">Primary Treasury Dealer; and (2)&nbsp;any other
Primary Treasury Dealers selected by the trustee after
consultation with us.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">&#147;Comparable Treasury Price&#148; means, with
respect to any redemption date, (1)&nbsp;the average of the
Reference Treasury Dealer Quotations for such redemption date,
after excluding the highest and lowest such Reference Treasury
Dealer Quotations, or (2)&nbsp;if the trustee obtains fewer than
four such Reference Treasury Dealer Quotations, the average of
all such quotations.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">&#147;Reference Treasury Dealer Quotations&#148;
means, with respect to each Reference Treasury Dealer and any
redemption date, the average, as determined by the trustee, of
the bid and ask prices for the Comparable Treasury Issue
(expressed in each case as a percentage of its principal amount)
quoted in writing to the trustee by such Reference Treasury
Dealer at 5:00&nbsp;p.m. on the third business day preceding
such redemption date.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We will give notice to The Depository Trust
Company (&#147;DTC&#148;) of any redemption we propose to make
at least 30&nbsp;days, but not more than 60&nbsp;days, before
the redemption date. If we redeem only some of the notes, it is
the practice of DTC to determine by lot the amount of notes to
be redeemed of each of its participating institutions. Notice by
DTC to these participants and by participants to &#147;street
name&#148; holders of indirect interests in the notes will be
made according to arrangements among them and may be subject to
statutory or regulatory requirements.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Unless we default in payment of the redemption
price, on and after the redemption date, interest will cease to
accrue on the notes or portions of the notes called for
redemption.
</FONT>

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The notes will not be entitled to the benefit of
a sinking fund.
</FONT>

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The notes are subject to the company&#146;s
defeasance option. See &#147;Description of Debt Securities
&#151;&nbsp;Defeasance&#148; in the accompanying prospectus.
</FONT>

<P align="left">
<B><FONT size="2">Book-Entry Procedures</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The notes will be issued in the form of one or
more fully registered Global Securities (the &#147;Global
Securities&#148;), which will be deposited with, or on behalf
of, DTC (the &#147;Depositary&#148;), and registered in the name
of the Depositary&#146;s nominee. Except as set forth below, the
Global Securities may be transferred, in whole or in part, only
to another nominee of the Depositary or to a successor of the
Depositary or its nominee.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Depositary has advised us and the
underwriters as follows: The Depositary is a limited-purpose
trust company that was created to hold securities for its
participating organizations (the &#147;Participants&#148;) and
to facilitate the clearance and settlement of securities
transactions between Participants in such securities through
electronic book-entry changes in accounts of its Participants.
Participants include securities brokers and dealers (including
certain of the underwriters), banks (including the trustee) and
trust companies, clearing corporations and certain other
organizations and include Euroclear Bank S.A./N.V., as operator
of the Euroclear System (&#147;Euroclear&#148;), and Clearstream
Banking Soci&#233;t&#233; Anonyme (&#147;Clearstream&#148;).
Access to the Depositary&#146;s system is also available to
others such as banks, brokers, dealers and trust companies that
clear through or maintain a custodial relationship with a
Participant, either directly or indirectly (&#147;indirect
participants&#148;). Persons who are not Participants may
beneficially own securities held by the Depositary only through
Participants or indirect participants.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Pursuant to procedures established by the
Depositary, (i)&nbsp;upon issuance of the notes by us, the
Depositary will credit the accounts of Participants designated
by the underwriters with the
</FONT>

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

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<DIV align="left">
<FONT size="2">principal amounts of the notes purchased by the
underwriters, and (ii)&nbsp;ownership of beneficial interests in
the Global Securities will be shown on, and the transfer of that
ownership will be effected only through, records maintained by
the Depositary (with respect to the Participants&#146;
interests), the Participants and the indirect participants. The
laws of some states require that certain persons take physical
delivery in definitive form of securities that they own.
Consequently, the ability to transfer beneficial interests in
the Global Securities is limited to such extent.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">So long as a nominee of the Depositary is the
registered owner of the Global Securities, such nominee for all
purposes will be considered the sole owner or holder of the
corresponding notes under the Indenture. Except as provided
below, owners of beneficial interests in the Global Securities
will not be entitled to have notes registered in their names,
will not receive or be entitled to receive physical delivery of
notes in definitive form, and will not be considered the owners
or holders thereof under the Indenture.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The trustee, any Paying Agent and the Security
Registrar will not have any responsibility or liability for any
aspect of the records relating to or payments made on account of
beneficial ownership interests in the Global Securities, or for
maintaining, supervising or reviewing any records relating to
such beneficial ownership interests.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Principal and interest payments on the notes
registered in the name of the Depositary&#146;s nominee will be
made by the trustee to the Depositary&#146;s nominee as the
registered owner of the Global Securities. Under the terms of
the Indenture, we and the trustee will treat the persons in
whose names the notes are registered as the owners of such notes
for the purpose of receiving payment of principal and interest
on the notes and for all other purposes whatsoever. Therefore,
neither we, the trustee nor any Paying Agent has any direct
responsibility or liability for the payment of principal or
interest on the notes to owners of beneficial interests in the
Global Securities. The Depositary has advised the trustee and us
that its present practice is, upon receipt of any payment of
principal or interest, to immediately credit the accounts of the
Participants with such payment in amounts proportionate to their
respective holdings in principal amount of beneficial interests
in the Global Securities as shown on the records of the
Depositary. Payments by Participants and indirect participants
to owners of beneficial interests in the Global Securities will
be governed by standing instructions and customary practices, as
is now the case with securities held for the accounts of
customers in bearer form or registered in &#147;street
name&#148; and will be the responsibility of the Participants or
indirect participants.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Investors may hold interests in the notes outside
the United States through Euroclear or Clearstream if they are
participants in those systems, or indirectly through
organizations which are participants in those systems. Euroclear
and Clearstream will hold interests on behalf of their
participants through customers&#146; securities accounts in
Euroclear&#146;s and Clearstream&#146;s names on the books of
their respective depositaries which in turn will hold such
positions in customers&#146; securities accounts in the names of
the nominees of the depositaries on the books of the Depositary.
All securities in Euroclear or Clearstream are held on a
fungible basis without attribution of specific certificates to
specific securities clearance accounts.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Transfers of notes by persons holding through
Euroclear or Clearstream participants will be effected through
the Depositary, in accordance with the Depositary&#146;s rules,
on behalf of the relevant European international clearing system
by its depositaries; however, such transactions will require
delivery of exercise instructions to the relevant European
international clearing system by the participant in such system
in accordance with its rules and procedures and within its
established deadlines (European time). The relevant European
international clearing system will, if the exercise meets its
requirements, deliver instructions to it depositaries to take
action to effect exercise of the notes on its behalf by
delivering notes through the Depositary and receiving payment in
accordance with its normal procedures for next-day funds
settlement.
</FONT>

<P align="center"><FONT size="2">S-18
</FONT>

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<DIV align="left">
<FONT size="2">Payments with respect to the notes held through
Euroclear or Clearstream will be credited to the cash accounts
of Euroclear participants or Clearstream participants in
accordance with the relevant system&#146;s rules and procedures,
to the extent received by its depositaries.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If the Depositary is at any time unwilling or
unable to continue as depositary and a successor depositary is
not appointed by us within 90&nbsp;days, we will issue notes in
definitive form in exchange for the Global Securities. In
addition, we may at any time determine not to have the notes
represented by Global Securities and, in such event, will issue
notes in definitive form in exchange for the Global Securities.
In either instance, an owner of a beneficial interest in the
Global Securities will be entitled to have notes equal in
principal amount to such beneficial interest registered in its
name and will be entitled to physical delivery of such notes in
definitive form. Notes so issued in the definitive form will be
issued in denominations of $1,000 and integral multiples thereof
and will be issued in registered form only, without coupon.
</FONT>

<P align="center"><FONT size="2">S-19
</FONT>

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<P align="center">
<B><FONT size="2">MATERIAL U.S.&nbsp;FEDERAL INCOME TAX
CONSIDERATIONS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following summary discusses the material
U.S.&nbsp;federal income tax consequences of the acquisition,
ownership and disposition of the notes. This discussion is based
upon the Internal Revenue Code of 1986, as amended (the
&#147;Code&#148;), the Treasury regulations proposed or
promulgated thereunder, and judicial and administrative
interpretations thereof, all as in effect as of the date hereof
and all of which are subject to change, possibly with
retroactive effect, and to different interpretations. This
discussion is applicable only to holders who purchase the notes
in the initial offering at their original issue price and deals
only with the notes held as capital assets for U.S.&nbsp;federal
income tax purposes (generally, property held for investment)
and not held as part of a straddle, a hedge, a conversion
transaction or other integrated investment. This discussion is
intended for general information only, and does not address all
of the tax consequences that may be relevant to holders in light
of their particular circumstances, or to certain types of
holders (such as financial institutions, insurance companies,
regulated investment companies, real estate investment trusts,
tax-exempt entities, partnerships and other pass-through
entities for U.S.&nbsp;federal income tax purposes, certain
former citizens or residents of the United States,
&#147;controlled foreign corporations,&#148; &#147;passive
foreign investment companies,&#148; &#147;foreign personal
holding companies,&#148; traders in securities that elect to use
a mark-to-market method of accounting for their securities
holdings, dealers in securities or currencies, or
U.S.&nbsp;Holders (as defined below) whose functional currency
is not the U.S.&nbsp;dollar). Moreover, this discussion does not
describe any state, local or non-U.S.&nbsp;tax implications, or
any alternative minimum tax consequences or any aspect of
U.S.&nbsp;federal tax law other than income taxation.
Prospective investors should consult their tax advisors with
regard to the application of the U.S.&nbsp;federal income tax
laws to their particular situations, as well as any tax
consequences arising under the laws of any state, local, or
non-U.S.&nbsp;taxing jurisdiction.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As used herein, a &#147;U.S.&nbsp;Holder&#148;
means a beneficial owner of a note that is, for
U.S.&nbsp;federal income tax purposes, (i)&nbsp;a citizen or
individual resident of the United States, (ii)&nbsp;a
corporation (including an entity treated as a corporation for
U.S.&nbsp;federal income tax purposes) created or organized in
or under the laws of the United States, any State thereof or the
District of Columbia, (iii)&nbsp;an estate the income of which
is subject to U.S.&nbsp;federal income taxation regardless of
its source, or (iv)&nbsp;a trust, if a court within the United
States is able to exercise primary supervision over the
trust&#146;s administration and one or more U.S.&nbsp;persons
have the authority to control all of its substantial decisions
or if a valid election to be treated as a U.S.&nbsp;person is in
effect with respect to such trust.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">A &#147;Non-U.S.&nbsp;Holder&#148; means a
beneficial owner of a note that is neither a U.S.&nbsp;Holder
nor a partnership for U.S.&nbsp;federal income tax purposes.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The U.S.&nbsp;federal income tax treatment of
partners in partnerships holding the notes generally will depend
on the activities of the partnership and the status of the
partner. Prospective investors that are partnerships (or
entities treated as partnerships for U.S.&nbsp;federal income
tax purposes) should consult their own tax advisors regarding
the U.S.&nbsp;federal income tax consequences to them and their
partners of the acquisition, ownership and disposition of the
notes.
</FONT>

<P align="left">
<B><FONT size="2">U.S.&nbsp;Federal Income Taxation of
U.S.&nbsp;Holders</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Payments of
Interest.</FONT></I><FONT size="2"> A U.S.&nbsp;Holder must
include in gross income, as ordinary interest income, the stated
interest on the notes at the time such interest accrues or is
received, in accordance with the U.S.&nbsp;Holder&#146;s regular
method of accounting for U.S.&nbsp;federal income tax purposes.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Sale, Retirement or Other Taxable
Disposition.</FONT></I><FONT size="2"> Upon the sale, retirement
or other taxable disposition of a note, a U.S.&nbsp;Holder
generally will recognize taxable gain or loss equal to the
difference between (i)&nbsp;the sum of cash plus the fair market
value of other property received on
</FONT>

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</FONT>

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<DIV align="left">
<FONT size="2">the sale, retirement or other taxable disposition
(except to the extent such cash or property is attributable to
accrued but unpaid interest, which will be treated in the manner
described above under &#147;&#151;&nbsp;Payments of
Interest&#148; to the extent not previously included in income)
and (ii)&nbsp;the U.S.&nbsp;Holder&#146;s adjusted tax basis in
the note. A U.S.&nbsp;Holder&#146;s adjusted tax basis in a note
generally will equal the amount paid for the note. Gain or loss
recognized on the sale, retirement or other taxable disposition
of a note generally will be capital gain or loss and will be
long-term capital gain or loss if, at the time of sale,
retirement or other taxable disposition, the note has been held
for more than one year. Certain noncorporate U.S.&nbsp;Holders
(including individuals) are eligible for preferential rates of
U.S.&nbsp;federal income tax in respect of long-term capital
gain. The deductibility of capital losses by U.S.&nbsp;Holders
is subject to limitations under the Code.
</FONT>
</DIV>

<P align="left">
<B><FONT size="2">U.S.&nbsp;Federal Income Taxation of
Non-U.S.&nbsp;Holders</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Payments of
Interest.</FONT></I><FONT size="2"> Subject to the discussion of
backup withholding below and provided that a
Non-U.S.&nbsp;Holder&#146;s income and gains in respect of a
note are not effectively connected with the conduct by the
Non-U.S.&nbsp;Holder of a U.S.&nbsp;trade or business, payments
of interest on a note to the Non-U.S.&nbsp;Holder generally will
not be subject to U.S.&nbsp;federal income or withholding tax,
provided that (i)&nbsp;the Non-U.S.&nbsp;Holder does not own,
directly or constructively, 10% or more of the total combined
voting power of all classes of our stock entitled to vote;
(ii)&nbsp;the Non-U.S.&nbsp;Holder is not, for U.S.&nbsp;federal
income tax purposes, a &#147;controlled foreign
corporation&#148; related, directly or constructively, to us
through stock ownership; (iii)&nbsp;the Non-U.S.&nbsp;Holder is
not a bank receiving interest described in
Section&nbsp;881(c)(3)(A) of the Code; and (iv)&nbsp;certain
certification requirements (as described below) are met.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under the Code and the Treasury regulations
thereunder, in order to obtain the exemption from
U.S.&nbsp;federal withholding tax discussed above, either
(1)&nbsp;a Non-U.S.&nbsp;Holder must provide its name and
address, and certify, under penalties of perjury, that the
Non-U.S.&nbsp;Holder is not a U.S.&nbsp;person, or (2)&nbsp;a
securities clearing organization, bank or other financial
institution that holds customers&#146; securities in the
ordinary course of its trade or business (a &#147;Financial
Institution&#148;), and that holds the notes on behalf of the
Non-U.S.&nbsp;Holder, must certify, under penalties of perjury,
that such certificate has been received from such
Non-U.S.&nbsp;Holder by it or by a Financial Institution between
it and such Non-U.S.&nbsp;Holder and, if required, must furnish
the payor with a copy thereof. Generally, the foregoing
certification requirement may be met if a Non-U.S.&nbsp;Holder
delivers a properly executed IRS Form&nbsp;W-8BEN to the payor.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Payments of interest on a note that do not
satisfy all of the foregoing requirements generally will be
subject to U.S.&nbsp;federal withholding tax at a rate of 30%
(or a lower applicable treaty rate, provided certain
certification requirements are met). A Non-U.S.&nbsp;Holder
generally will be subject to U.S.&nbsp;federal income tax in the
same manner as a U.S.&nbsp;Holder with respect to interest on a
note if such interest is effectively connected with a
U.S.&nbsp;trade or business conducted by the
Non-U.S.&nbsp;Holder (and, if an income tax treaty applies, is
attributable to a permanent establishment or fixed base
maintained by the Non-U.S.&nbsp;Holder in the United States).
Under certain circumstances, effectively connected interest
income received by a corporate Non-U.S.&nbsp;Holder may be
subject to an additional &#147;branch profits tax&#148; at a 30%
rate (or a lower applicable treaty rate, provided certain
certification requirements are met). Subject to the discussion
of backup withholding below, such effectively connected interest
income generally will be exempt from U.S.&nbsp;federal
withholding tax if a Non-U.S.&nbsp;Holder delivers a properly
executed IRS Form W-8ECI to the payor.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Sale, Retirement or Other Taxable
Disposition.</FONT></I><FONT size="2"> Subject to the discussion
of backup withholding below, a Non-U.S.&nbsp;Holder generally
will not be subject to U.S.&nbsp;federal income or withholding
tax on any gain recognized on the sale, retirement or other
taxable disposition of the notes, unless (i)&nbsp;the
Non-U.S.&nbsp;Holder is an individual who is present in the
United States for
</FONT>

<P align="center"><FONT size="2">S-21
</FONT>

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<DIV align="left">
<FONT size="2">183 or more days in the taxable year of
disposition and certain other conditions are met, or
(ii)&nbsp;the gain is effectively connected with the conduct of
a U.S.&nbsp;trade or business by the Non-U.S.&nbsp;Holder (and,
if an income tax treaty applies, is attributable to a permanent
establishment or fixed base maintained by the
Non-U.S.&nbsp;Holder in the United States).
</FONT>
</DIV>

<P align="left">
<B><FONT size="2">Information Reporting and Backup
Withholding</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">U.S.&nbsp;Holders.</FONT></I><FONT size="2">
Generally, information reporting will apply to payments of
principal and interest on the notes to a U.S.&nbsp;Holder and to
the proceeds of sale or other disposition of the notes, unless
the U.S.&nbsp;Holder is an exempt recipient (such as a
corporation). Backup withholding generally will apply to such
payments (currently at a rate of 28%), if a U.S.&nbsp;Holder
fails to provide a correct taxpayer identification number or a
certification of exempt status or fails to report in full
dividend and interest income. Backup withholding is not an
additional tax. Any amount withheld under the backup withholding
rules generally will be allowed as a refund or credit against a
U.S.&nbsp;Holder&#146;s U.S.&nbsp;federal income tax liability,
provided that the required information is timely furnished to
the Internal Revenue Service (the &#147;IRS&#148;).
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Non-U.S.&nbsp;Holders.</FONT></I><FONT size="2">
Generally, payments of interest on the notes to a
Non-U.S.&nbsp;Holder and the amount of any tax withheld from
such payments must be reported annually to the IRS and to the
Non-U.S.&nbsp;Holder. Copies of these information returns may be
made available by the IRS to the tax authorities of the country
in which the Non-U.S.&nbsp;Holder is a resident under the
provisions of an applicable tax treaty. Under certain
circumstances, information reporting also would apply to
payments of principal on the notes, and backup withholding of
U.S.&nbsp;federal income tax (currently at a rate of 28%) may
apply to payments of principal and interest on the notes to a
Non-U.S.&nbsp;Holder if the Non-U.S.&nbsp;Holder fails to
certify under penalties of perjury that it is not a
U.S.&nbsp;person.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Payments of the proceeds of the sale or other
disposition of the notes to or through a foreign office of a
U.S.&nbsp;broker or of a foreign broker with certain specified
U.S.&nbsp;connections will be subject to information reporting
requirements, but generally not backup withholding, unless
(i)&nbsp;the broker has evidence in its records that the payee
is not a U.S.&nbsp;person and the broker has no actual knowledge
or reason to know to the contrary or (ii)&nbsp;the payee
otherwise establishes an exemption. Payments of the proceeds of
a sale or other disposition of the notes to or through the
U.S.&nbsp;office of a broker will be subject to information
reporting and backup withholding unless the payee certifies
under penalties of perjury that it is not a U.S.&nbsp;person
(and the payor has no actual knowledge or reason to know to the
contrary) or otherwise establishes an exemption.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Any amount withheld under the backup withholding
rules generally will be allowed as a refund or credit against a
Non-U.S.&nbsp;Holder&#146;s U.S.&nbsp;federal income tax
liability, provided that the required information is timely
furnished to the IRS.
</FONT>

<P align="center"><FONT size="2">S-22
</FONT>

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<DIV align="left">
<A name='108'></A>
</DIV>

<!-- link1 "UNDERWRITING" -->

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Subject to the terms and conditions set forth in
the underwriting agreement and a terms agreement each dated
June&nbsp;22, 2004, each of the underwriters has severally
agreed to purchase, and we have agreed to sell to each
underwriter, the principal amount of notes set forth opposite
the name of each underwriter:
</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="73%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="10%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="10%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="6"></TD>
</TR>

<TR>
    <TD colspan="6" align="center" nowrap><HR size="1" noshade></TD>
</TR>

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

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

<TR>
    <TD colspan="6"></TD>
</TR>

<TR>
    <TD colspan="6" 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">Banc of America Securities LLC
    </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">120,000,000</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">Deutsche Bank Securities Inc.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">120,000,000</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">J.P. Morgan Securities Inc.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">120,000,000</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">ABN AMRO Incorporated
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">48,000,000</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">Citigroup Global Markets Inc.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">48,000,000</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">Wachovia Capital Markets, LLC
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">48,000,000</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">BNP Paribas Securities Corp.
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">24,000,000</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">Daiwa Securities America Inc.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">24,000,000</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">Lazard Fr&#232;res &#38; Co. LLC
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">24,000,000</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">Merrill Lynch, Pierce, Fenner &#38; Smith<BR>
    Incorporated
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">24,000,000</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 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">Total
    </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">600,000,000</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">Under the terms and conditions of the
underwriting agreement, if the underwriters take any of the
notes, then they are obligated to take and pay for all the notes.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The notes are a new issue of securities with no
established trading market and will not be listed on any
national securities exchange. The underwriters have advised us
that they intend to make a market for the notes, but they have
no obligation to do so and may discontinue market-making at any
time without providing any notice. No assurance can be given as
to the liquidity of any trading market for the notes.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The underwriters initially propose to offer part
of the notes directly to the public at the offering price
described on the cover page of this prospectus supplement and
part of the notes to certain dealers at a price that represents
a concession not in excess of 0.40% of the principal amount of
the notes. The underwriters may allow, and any such dealer may
reallow, a concession not in excess of 0.25% of the principal
amount of the notes to certain other dealers. After the initial
offering of the notes, the underwriters may from time to time
vary the offering price and other selling terms.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We have also agreed to indemnify the underwriters
against certain liabilities, including liabilities under the
Securities Act of 1933, as amended, or to contribute to payments
which the underwriters may be required to make in respect of any
such liabilities.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In connection with the offering of the notes, the
underwriters may engage in transactions that stabilize, maintain
or otherwise affect the price of the notes. Specifically, the
underwriters may overallot in connection with the offering of
the notes, creating a short position. In addition, the
underwriters may bid for, and purchase, notes in the open market
to cover short positions or to stabilize the price of the notes.
Any of these activities may stabilize or maintain the market
price of the notes above independent market levels. The
underwriters are not required to engage in any of these
activities, and may end any of them at any time.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our expenses associated with this offering, to be
paid by us, are estimated to be $925,000.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Certain of the underwriters will make the notes
available for distribution on the internet through a proprietary
web site and/or a third-party system operated by Market Axess
</FONT>

<P align="center"><FONT size="2">S-23
</FONT>

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<DIV align="left">
<FONT size="2">Corporation, an internet-based communications
technology provider. Market Axess Corporation is providing the
system as a conduit for communications between those
underwriters and their respective customers and is not a party
to any transactions. Market Axess Corporation, a registered
broker-dealer, will receive compensation from those underwriters
based on transactions they conduct through the system. Those
underwriters will make the notes available to their respective
customers through the Internet distributions, whether made
through a proprietary or third-party system, on the same terms
as distributions made through other channels.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Daiwa Securities America Inc., or Daiwa, has
entered into an agreement with SMBC Securities, Inc. or SMBC,
pursuant to which SMBC provides certain advisory and/or other
services to Daiwa, including in respect of this offering. In
return for the provision of such services by SMBC to Daiwa,
Daiwa will pay to SMBC a mutually agreed upon fee. Lazard
Fr&#232;res &#38; Co. LLC, or Lazard, has entered into an
agreement with Mitsubishi Securities (USA), Inc., or Mitsubishi,
pursuant to which Mitsubishi provides certain advisory and/or
other services to Lazard, including services in respect of this
offering. In return for the provision of such services by
Mitsubishi to Lazard, Lazard will pay to Mitsubishi a mutually
agreed upon fee.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In the ordinary course of their respective
businesses, certain of the underwriters or their affiliates have
engaged, and may in the future engage, in commercial banking
and/or investment banking transactions with us and our
affiliates. In particular, certain of the underwriters or their
affiliates, are lenders under our revolving credit facilities.
</FONT>

<DIV align="left">
<A name='109'></A>
</DIV>

<!-- link1 "LEGAL MATTERS" -->

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Certain legal matters in connection with the
notes will be passed upon for us by Shearman&nbsp;&#38; Sterling
LLP, New York, New York, and for underwriters by Simpson
Thacher&nbsp;&#38; Bartlett LLP, New York, New York.
</FONT>

<DIV align="left">
<A name='110'></A>
</DIV>

<!-- link1 "EXPERTS" -->

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Ernst&nbsp;&#38; Young LLP, independent auditors,
have audited our consolidated financial statements and schedule
incorporated by reference or included in the 2003
Form&nbsp;10-K, as set forth in their reports, which are
incorporated by reference herein. Our financial statements and
schedule are incorporated by reference in reliance on Ernst
&#38; Young LLP&#146;s report, given on their authority as
experts in accounting and auditing.
</FONT>

<DIV align="left">
<A name='111'></A>
</DIV>

<!-- link1 "WHERE YOU CAN FIND MORE INFORMATION" -->

<P align="center">
<B><FONT size="2">WHERE YOU CAN FIND MORE INFORMATION</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We file annual, quarterly and current reports,
proxy statements and other information with the SEC. You may
read and copy any document we file at the SEC&#146;s public
reference room at 450&nbsp;Fifth Street, N.W., Washington, D.C.
20549. Please call the SEC at 1-800-SEC-0330 for further
information on the public reference room. Our SEC filings are
also available to the public from the SEC&#146;s website at
http://www.sec.gov. You may also inspect the information we file
with the SEC at the New York Stock Exchange, 20 Broad Street,
New York, New York 10005.
</FONT>

<P align="left">
<B><FONT size="2">Incorporation by Reference</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We are &#147;incorporating by reference&#148;
specific documents that we file with the SEC, which means that
we can disclose important information to you by referring you to
those documents that are considered part of this prospectus
supplement. Information that we file subsequently with the SEC
will automatically update and supercede this information. We
incorporate by reference the documents listed below, and any
documents that we file with the SEC under Section&nbsp;13(a),
13(c), 14 or 15(d) of the Securities Exchange Act of 1934, as
amended, after the
</FONT>

<P align="center"><FONT size="2">S-24
</FONT>

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<DIV align="left">
<FONT size="2">date of this prospectus supplement until the
termination of the offering of all of the securities registered
pursuant to the registration statement of which the accompanying
prospectus is a part:
</FONT>
</DIV>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">our Annual Report on Form&nbsp;10-K for the year
    ended December&nbsp;31, 2003;
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">our definitive 2004 Proxy Statement on
    Schedule&nbsp;14A;
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">our Quarterly Report on Form&nbsp;10-Q for the
    quarter ended March&nbsp;31, 2004; and
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">our Current Reports on Form&nbsp;8-K filed on
    June&nbsp;1, 2004 and June&nbsp;4, 2004 (only Item&nbsp;2 and
    Item&nbsp;7 relating to the Advanced Bionics acquisition).
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">You may also request a copy of these filings, at
no cost, by writing or telephoning our investor relations
department at the following address:
</FONT>

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

<TR>
    <TD width="64%"><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="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="27%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="5" align="center" valign="top">
    <FONT size="2">Boston Scientific Corporation
    </FONT></TD>
</TR>

<TR>
    <TD colspan="5" align="center" valign="top">
    <FONT size="2">One Boston Scientific Place
    </FONT></TD>
</TR>

<TR>
    <TD colspan="5" align="center" valign="top">
    <FONT size="2">Natick, Massachusetts 01760-1537
    </FONT></TD>
</TR>

<TR>
    <TD colspan="5" align="center" valign="top">
    <FONT size="2">Attention: Investor Relations, MS-C2
    </FONT></TD>
</TR>

<TR>
    <TD colspan="5" align="center" valign="top">
    <FONT size="2">Telephone: (508)-650-8555
    </FONT></TD>
</TR>

<TR>
    <TD align="center" valign="top" colspan="5">
    <FONT size="2">email:&nbsp;Investor_Relations@bsci.com
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">S-25
</FONT>
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<DIV align="left">
<FONT size="2"> <U>PROSPECTUS</U>
</FONT>
</DIV>

<P align="center">
<FONT size="5">BOSTON SCIENTIFIC CORPORATION
</FONT>

<P align="center">
Senior Debt Securities, Subordinated Debt Securities,

<DIV align="center">
Preferred Stock, Depositary Shares, Common Stock, Warrants,
</DIV>

<DIV align="center">
Stock Purchase Contracts and Stock Purchase Units
</DIV>

<P align="center">
<B><FONT size="5">BSC CAPITAL TRUST</FONT></B>

<DIV align="center">
<B><FONT size="5">BSC CAPITAL TRUST II</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="5">BSC CAPITAL TRUST III</FONT></B>
</DIV>

<DIV align="center">
<B>Trust Preferred Securities</B>
</DIV>

<DIV align="center">
<B>Guaranteed as set forth herein by</B>
</DIV>

<DIV align="center">
<B><FONT size="5">BOSTON SCIENTIFIC CORPORATION</FONT></B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Boston Scientific Corporation (&#147;Boston
Scientific&#148; or the &#147;Company&#148;) may offer and sell
from time to time, together or separately, the following
securities in one or more series: (i)&nbsp;its unsecured senior
debt securities (the &#147;Senior Debt Securities&#148;) and its
unsecured subordinated debt securities (the &#147;Subordinated
Debt Securities&#148; and, together with the Senior Debt
Securities, the &#147;Debt Securities&#148;), consisting of
debentures, notes or other evidences of indebtedness;
(ii)&nbsp;shares of its preferred stock, par value $0.01 per
share (the &#147;Preferred Stock&#148;); (iii)&nbsp;depositary
shares representing entitlement to all rights and preferences of
a fraction of a share of Preferred Stock of a specific series
(the &#147;Depositary Shares&#148;); (iv)&nbsp;shares of its
common stock, par value $0.01 per share (the &#147;Common
Stock&#148;); (v)&nbsp;warrants to purchase any of the foregoing
Debt Securities, Preferred Stock, Depositary Shares or Common
Stock (the &#147;Warrants&#148;); (vi)&nbsp;stock purchase
contracts (the &#147;Stock Purchase Contracts&#148;) to purchase
Common Stock or Preferred Stock; (vii)&nbsp;stock purchase units
(the &#147;Stock Purchase Units&#148;), each Stock Purchase Unit
representing ownership of a Stock Purchase Contract and Trust
Preferred Securities (as defined below) or other debt
obligations of third parties, including U.S. government or
government agency securities securing the holder&#146;s
obligation to purchase Common Stock or Preferred Stock under the
Stock Purchase Contracts. The Senior Debt Securities,
Subordinated Debt Securities, Preferred Stock, Depositary
Shares, Warrants, Common Stock, Stock Purchase Contracts, Stock
Purchase Units and the Trust Preferred Securities are
collectively called the &#147;Securities.&#148;
</FONT>

<DIV align="right">
<I><FONT size="2">(Continued on next page)</FONT></I>
</DIV>

<P align="center">
<HR size="1" width="27%" align="center" noshade>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2"> THESE SECURITIES HAVE NOT BEEN APPROVED OR
DISAPPROVED BY THE SECURITIES AND EXCHANGE COMMISSION OR ANY
STATE SECURITIES COMMISSION NOR HAS THE COMMISSION OR ANY STATE
SECURITIES COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF
THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.</FONT></B>

<P align="center">
<HR size="1" width="27%" align="center" noshade>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2"> The Securities may be offered and sold to or
through underwriters, dealers or agents as designated from time
to time, or directly to one or more other purchasers or through
a combination of such methods. See &#147;Plan of
Distribution.&#148; If any underwriters, dealers or agents are
involved in the sale of any of the Securities, their names, and
any applicable purchase price, fee, commission or discount
arrangements between or among them, will be set forth, or will
be calculable from the information set forth, in the applicable
Prospectus Supplement. See &#147;Plan of Distribution&#148; for
indemnification arrangements for agents, dealers and
underwriters.
</FONT>

<P align="center">
<FONT size="2">The date of this Prospectus is June&nbsp;3, 1999.
</FONT>

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<DIV align="left">
<FONT size="2"> <I>(Continued from front page)</I>
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">BSC Capital Trust, BSC Capital Trust&nbsp;II and
BSC Capital Trust&nbsp;III (each a &#147;Trust&#148;), each a
statutory business trust formed under the laws of the State of
Delaware, may each offer and sell from time to time, preferred
securities, representing preferred undivided beneficial
interests in the assets of their respective Trust (&#147;Trust
Preferred Securities&#148;). The Company will own all of the
undivided beneficial ownership interests represented by the
common securities of each Trust (&#147;Trust Common
Securities&#148; and, together with the Trust Preferred
Securities, the &#147;Trust Securities&#148;). To the extent
described herein, the Company will guarantee (each, a
&#147;Trust Guarantee&#148;) the payment of periodic cash
distributions (&#147;Distributions&#148;) with respect to Trust
Preferred Securities out of monies held by the Trusts and
payments on liquidation, redemption or otherwise with respect to
the Trust Preferred Securities. See &#147;Description of Trust
Preferred Securities&#148; and &#147;Description of Trust
Guarantee.&#148; Each Trust Guarantee (i)&nbsp;will rank junior
and subordinate in right of payment to all other liabilities of
the Company, except indebtedness of the Company that by its
terms is subordinate or pari passu to such Trust Guarantee, and
(ii)&nbsp;will rank pari passu with most senior preferred or
preference stock of the Company. See &#147;Description of Trust
Guarantee&nbsp;&#151; Status of Trust Guarantee.&#148;
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">This prospectus may not be used to consummate
sales of securities unless accompanied by a prospectus
supplement.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company may issue and sell Subordinated Debt
Securities from time to time in one or more series to a Trust or
a trustee of a Trust in connection with the investment of
proceeds from an offering of Trust Securities. Subordinated Debt
Securities purchased by a Trust may be subsequently distributed
pro rata to holders of Trust Securities of such Trust in
connection with the dissolution of such Trust upon the
occurrence of certain events as may be described in one or more
supplements to this Prospectus (each, a &#147;Prospectus
Supplement&#148;). See &#147;Description of Trust Preferred
Securities&#148; and &#147;Description of Trust
Guarantee&nbsp;&#151; Status of the Trust Guarantee.&#148;
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">One or more related Prospectus Supplements will
set forth the form in which the Securities are to be issued and
certain specific terms of the particular Securities described in
this Prospectus, including, where applicable, the following:
(i)&nbsp;in the case of Debt Securities, the specific
designation, aggregate principal amount, ranking as Senior Debt
Securities or Subordinated Debt Securities, maturity, premium,
if any, interest rate, time and method of calculating interest,
if any, date on which interest, if any, shall be payable, place
where principal of, premium, if any, and interest, if any, on
such Debt Securities will be payable, the currencies or currency
units in which principal of, premium, if any, and interest, if
any, on such Debt Securities will be payable, any terms of
redemption or conversion, any sinking fund provisions, the
purchase price, any right of the Company to defer payment of
interest on the Debt Securities and the maximum length of such
deferral period and other special terms; (ii)&nbsp;in the case
of Preferred Stock or Depositary Shares, the specific
designation, stated value and liquidation preference per share
and number of shares offered, the purchase price, dividend rate
(which may be fixed or variable), method of calculating payment
of dividends, place where dividends on such Preferred Stock will
be payable, any terms of redemption or conversion, dates on
which dividends shall be payable and dates from which dividends
shall accrue, voting and other rights, including whether
interests in the Preferred Stock will be represented by
Depositary Shares and, if so, the fraction of a share of
Preferred Stock represented by each Depositary Share;
(iii)&nbsp;in the case of Common Stock, the number of shares
offered, the initial offering price, market price and dividend
information; (iv)&nbsp;in the case of Warrants, the specific
designation, the number, purchase price, exercise price and
other terms thereof, as well as the terms on which, and the
securities for which, the Warrants may be exercised; (v)&nbsp;in
the case of Stock Purchase Contracts, the number of shares of
Common Stock issuable thereunder, the purchase price of the
Common Stock, the date on which the Common Stock is required to
be purchased by the holders of the Stock Purchase Contracts, any
periodic
</FONT>

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

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<DIV align="left">
<FONT size="2">payments required to be made by the Company to
the holders of the Stock Purchase Contracts or vice versa, and
the terms of the offering and sale thereof; (vi)&nbsp;in the
case of Stock Purchase Units, the specific terms of the Stock
Purchase Contracts and any Trust Preferred Securities or debt
obligations of third parties securing the holder&#146;s
obligation to purchase the Common Stock under the Stock Purchase
Contracts, and the terms of the offering and sale thereof; and
(vii)&nbsp;in the case of Trust Preferred Securities, the
specific designation, number of securities, liquidation amount
per security, purchase price, distribution rate (or method of
calculation thereof), dates on which distributions shall be
payable and dates from which distributions shall accrue, any
voting rights, terms for any conversion or exchange into other
securities, any redemption, exchange or sinking fund provisions,
any other rights, preferences, privileges, limitations or
restrictions relating to the Trust Preferred Securities,
specific terms and provisions of the Trust Guarantee and the
terms upon which the proceeds of the sale of the Trust Preferred
Securities shall be used to purchase a specific series of
Subordinated Debt Securities.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company, by filing the Registration Statement
of which this Prospectus is a part, is seeking flexibility with
respect to the offering of the Securities to the public. While
it is likely that the offering price to the public of the
Securities will be less, in no event will the offering price to
the public of the Securities exceed U.S.$1.2 billion in the
aggregate (or its equivalent (based on the applicable exchange
rate of the time of issue), if the Securities are offered for
consideration denominated in one or more foreign currencies or
currency units as shall be designated by the Company). The
Securities may be offered, separately or together, in separate
series, in amounts at prices and on terms to be determined at
the time of sale and set forth in an accompanying Prospectus
Supplement. The applicable Prospectus Supplement will also
contain information, where applicable, about certain
U.S.&nbsp;federal income tax considerations.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Common Stock is listed on the New York Stock
Exchange under the trading symbol &#147;BSX.&#148; The
Prospectus Supplement will state whether any Securities offered
thereby will be listed on any national securities exchange.
</FONT>

<P align="center">
<HR size="1" width="27%" align="center" noshade>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">CERTAIN PERSONS PARTICIPATING IN THIS OFFERING
MAY ENGAGE IN TRANSACTIONS THAT STABILIZE, MAINTAIN, OR
OTHERWISE AFFECT THE PRICES OF THE SECURITIES OFFERED HEREBY,
INCLUDING STABILIZING TRANSACTIONS, THE PURCHASE OF SECURITIES
TO COVER SYNDICATE SHORT POSITIONS AND THE IMPOSITION OF PENALTY
BIDS. THE UNDERWRITERS MAY OVER-ALLOT OR EFFECT TRANSACTIONS
WHICH STABILIZE OR MAINTAIN THE MARKET PRICES OF THE SECURITIES
AT LEVELS ABOVE THOSE WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN
MARKET. FOR A DESCRIPTION OF THESE ACTIVITIES, SEE &#147;PLAN OF
DISTRIBUTION.&#148;</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">No dealer, salesperson or other individual has
been authorized to give any information or to make any
representation not contained or incorporated by reference in
this Prospectus or any accompanying Prospectus Supplement and,
if given or made, such information or representation must not be
relied upon as having been authorized by the Company, any of the
Trusts or any underwriter, dealer or agent. Neither this
Prospectus nor any accompanying Prospectus Supplement
constitutes an offer to sell or a solicitation of any offer to
buy any of the securities hereby or thereby offered in any
jurisdiction where, or to any person to whom, it is unlawful to
make such offer or solicitation. Neither the delivery of this
Prospectus or any accompanying Prospectus Supplement, nor any
sale made hereunder or thereunder shall create any implication
that the information herein or therein is correct as of any time
subsequent to the date hereof or thereof or that there has been
no change in the affairs of the Company or any of the Trusts
since such date or, in the case of information incorporated
herein or therein by reference, the date of filing such
information with the Commission.</FONT></B>

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

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<DIV align="left">
<A name='112'></A>
</DIV>

<!-- link1 "AVAILABLE INFORMATION" -->

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company is subject to the informational
requirements of the Securities Exchange Act of 1934, as amended
(the &#147;Exchange Act&#148;), and, in accordance therewith,
files reports, proxy statements and other information with the
Securities and Exchange Commission (the &#147;Commission&#148;).
Such reports, proxy statements and other information can be
inspected and copied at the public reference facilities
maintained by the Commission at Room&nbsp;1024, Judiciary Plaza,
450 Fifth Street, N.W., Washington, D.C. 20549 and at the
following regional offices: in Chicago, at Citicorp Center,
500&nbsp;W. Madison, Suite 1400, Chicago, Illinois 60661 and in
New York, at Seven World Trade Center, 13th Floor, New York, New
York 10048. Copies of such material can be obtained from the
Public Reference Section of the Commission at 450 Fifth Street,
N.W., Washington, D.C. 20549 at prescribed rates. The Commission
also maintains a site on the world wide web at
http://www.sec.gov that contains reports, proxy and information
statements and other information filed electronically by the
Company. In addition, reports, proxy statements and other
information concerning the Company may be inspected at the
offices of the New York Stock Exchange, 20 Broad Street, New
York, New York 10005.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">This Prospectus constitutes part of a combined
Registration Statement on Form&nbsp;S-3 (together with all
amendments and exhibits thereto, the &#147;Registration
Statement&#148;) filed by the Company and each of the Trusts
with the Commission under the Securities Act of 1933, as amended
(the &#147;Securities Act&#148;). As permitted by the rules and
regulations of the Commission, this Prospectus and any
accompanying Prospectus Supplement omits certain of the
information contained in the Registration Statement. For further
information with respect to the Company, each of the Trusts and
the Securities offered hereby, reference is hereby made to the
Registration Statement and to the exhibits and the financial
statements, notes and schedules filed as a part thereof or
incorporated by reference therein, copies of which may be
obtained as provided in the preceding paragraph. Statements
contained herein and any accompanying Prospectus Supplement
concerning the provisions of any documents are necessarily
summaries of such documents and are not necessarily complete,
and each statement is qualified in its entirety by reference to
the copy of the applicable document filed with the Commission,
which may be obtained as described above.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">No separate financial statements of any of the
Trusts have been included or incorporated by reference herein.
The Company and the Trusts do not consider that such financial
statements would be material to holders of Trust Preferred
Securities because (i)&nbsp;all of the voting securities of each
Trust are owned, directly or indirectly, by the Company, a
reporting company under the Exchange Act, (ii)&nbsp;each of the
Trusts has and will have no independent operations, but exists
for the sole purpose of issuing securities representing
undivided beneficial interests in its assets and investing the
proceeds thereof in Subordinated Debt Securities issued by the
Company, and (iii)&nbsp;the Company&#146;s obligations, which
are described herein and in any accompanying Prospectus
Supplement, pursuant to each Declaration (as defined herein)
(including the obligation to pay the expenses of each Trust),
the Indenture and any supplemental indentures thereto, the
Subordinated Debt Securities issued to any of the Trusts and the
Trust Guarantees, taken together, constitute a full and
unconditional guarantee, on a subordinated basis, by the Company
of payments due on the Trust Preferred Securities. See &#147;The
Trusts,&#148; &#147;Description of Trust Preferred
Securities&#148; and &#147;Description of Trust Guarantee.&#148;
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">None of the Trusts are currently subject to the
information reporting requirements of the Exchange Act. Upon the
effectiveness of the Registration Statement, each Trust will
become subject to such requirements; however, each of the Trusts
intends to seek and expects to receive exemption therefrom. Each
of the Trusts is a newly formed special purpose entity, has no
operating history or independent operations and is not engaged
in and does not propose to engage in any activity other than its
holding as trust assets the Subordinated Debt Securities and the
issuance of the Trust Securities.
</FONT>

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

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<DIV align="left">
<A name='113'></A>
</DIV>

<!-- link1 "INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE" -->

<P align="center">
<B><FONT size="2">INCORPORATION OF CERTAIN DOCUMENTS BY
REFERENCE</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following documents filed by the Company with
the Commission (File No.&nbsp;1-11083) are incorporated herein
by reference:
</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 December&nbsp;31, 1998,
    as amended by a Form&nbsp;10-K/ A dated April&nbsp;28, 1999 and
    a Form&nbsp;10-K/ A2 dated June&nbsp;2, 1999 (collectively, the
    &#147;1998 Form&nbsp;10-K&#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;The Company&#146;s Quarterly Report on
    Form&nbsp;10-Q for the quarterly period ended March&nbsp;31,
    1999 (the &#147;March&nbsp;1999 Form&nbsp;10-Q&#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">3.&nbsp;The description of the Common Stock set
    forth in the Company&#146;s Registration Statement on
    Form&nbsp;8-A filed pursuant to Section&nbsp;12 of the Exchange
    Act on April&nbsp;3, 1992, and any amendment or report filed for
    the purpose of updating such description.
    </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;The Company&#146;s Current Report filed
    on Form&nbsp;8-K dated September&nbsp;25, 1998, as amended by a
    Form 8-K/ A dated November&nbsp;24, 1998 and a Form&nbsp;8-K/ A2
    dated March&nbsp;31, 1999.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">All documents and reports filed with the
Commission by the Company pursuant to Section&nbsp;13(a), 13(c),
14 or 15(d)&nbsp;of the Exchange Act after the date of this
Prospectus and prior to the termination of the offering of the
Securities offered hereby shall be deemed to be incorporated by
reference in this Prospectus and to be a part of this Prospectus
from the dates of filing of such documents or reports. Any
statement contained herein or in a document incorporated or
deemed to be incorporated by reference herein shall be deemed to
be modified or superseded for purposes of this Prospectus to the
extent that a statement contained herein, in any other
subsequently filed document which also is or is deemed to be
incorporated by reference herein or in the accompanying
Prospectus Supplement modifies or supersedes such statement. Any
such statement so modified or superseded shall not be deemed,
except as so modified and superseded, to constitute a part of
this Prospectus.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company will provide without charge to each
person to whom a Prospectus is delivered, upon written or oral
request of such person, a copy of any of the documents
incorporated herein by reference (other than exhibits to such
documents that are not specifically incorporated by reference
therein). Written requests should be directed to Investor
Relations, Boston Scientific Corporation, One Boston Scientific
Place, Natick, Massachusetts 01760-1537. Telephone requests may
be directed to (508)&nbsp;650-8000.
</FONT>

<P align="center">
<B><FONT size="2">CERTAIN FORWARD-LOOKING STATEMENTS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">This Prospectus, the accompanying Prospectus
Supplement and the documents incorporated herein by reference
contain forward-looking statements. The Company desires to take
advantage of the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995 and is including this
statement for the express purpose of availing itself of the
protections of the safe harbor with respect to all
forward-looking statements. Forward-looking statements contained
in this Prospectus, the accompanying Prospectus Supplement and
the documents incorporated herein by reference include, but are
not limited to, statements with respect to, and the
Company&#146;s performance may be affected by: (a)&nbsp;the
Company&#146;s ability to obtain benefits from the acquisition
of Schneider Worldwide, formerly a member of the Medical
Technologies Group of Pfizer, Inc. (the &#147;Schneider
Acquisition&#148;), including purchased research and development
and physician and hospital relationships; (b)&nbsp;the process,
outlays and plan for the integration of businesses acquired by
the Company, and the successful and timely implementation of the
related plans of rationalization; (c)&nbsp;the impact and timing
of the Company&#146;s supply chain initiatives; (d)&nbsp;the
potential impacts of continued consolidation among healthcare
providers, trends towards managed care and economically
motivated buyers, <BR>
</FONT></I>

<P align="center"><FONT size="2">5
</FONT>
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<DIV align="left">
<I><FONT size="2">healthcare cost containment, more stringent
regulatory requirements and more vigorous enforcement
activities; (e)&nbsp;the Company&#146;s belief that it is well
positioned to take advantage of opportunities for growth that
exist in the markets it serves; (f)&nbsp;the Company&#146;s
continued commitment to refine existing products and procedures
and to develop new technologies that provide simpler, less
traumatic, less costly and more efficient diagnosis and
treatment; (g)&nbsp;the Company&#146;s ability to launch
products on a timely basis, including products resulting from
purchased research and development; (h)&nbsp;risks associated
with international operations; (i)&nbsp;the potential effect of
foreign currency fluctuations on revenues, expenses and
resulting margins and the trend toward increasing sales and
expenses denominated in foreign currencies; (j)&nbsp;the
Company&#146;s belief that its effective tax rate for 1999 will
only increase slightly from 1998; (k)&nbsp;the ability of the
Company to manage accounts receivable, manufacturing costs and
inventory levels and mix and to react effectively to the
changing managed care environment and worldwide economic
conditions; (l)&nbsp;the ability of the Company to meet its
projected cash needs through the end of 1999; (m)&nbsp;the
ability of the global information systems to improve supply
chain management; (n)&nbsp;the effect of litigation and
compliance activities on the Company&#146;s legal provision;
(o)&nbsp;costs and risks associated with implementing Year 2000
compliance and business process reengineering; (p)&nbsp;timely
and uninterrupted supply of the
NIR&#174;</FONT></I><FONT size="2"> <I>coronary stent and the
Company&#146;s cost to purchase the NIR&#174;</I> <I>stent;
(q)&nbsp;the ability to realize improved long-term returns on
the Company&#146;s investments with a direct selling presence in
emerging markets; (r)&nbsp;the ability of the Company to obtain
more permanent financing to re-finance a portion of its
commercial paper and amounts borrowed under the Company&#146;s
revolving credit facilities, to comply with its debt ratio
through an equity issuance and to place its commercial paper at
reasonable rates; (s)&nbsp;the Company&#146;s expectation that a
minimum of $700 million of short-term debt supported by the
Company&#146;s revolving credit facilities will remain
outstanding through the next twelve months; (t)&nbsp;the
Company&#146;s ability to fund development of purchased
technology and to realize value assigned to in-process research
and development and other intangible assets; (u)&nbsp;the impact
of stockholder class action, patent, product liability and other
litigation, the outcome of the U.S. Department of Justice
investigation, and the adequacy of the Company&#146;s product
liability insurance; (v)&nbsp;the potential impact resulting
from the euro conversion, including adaptation of information
technology systems, competitive implications related to pricing
and foreign currency considerations; and (w)&nbsp;the timing,
size and nature of strategic initiatives available to the
Company. Several important factors, in addition to the specific
factors discussed in connection with each of the forward-looking
statements contained herein, in the accompanying Prospectus
Supplement and in the documents incorporated herein by
reference, could affect the future results of the Company and
could cause those results to differ materially from those
expressed in the forward-looking statements contained herein, in
the accompanying Prospectus Supplement and in the documents
incorporated herein by reference. Such additional factors
include, among other things, future economic, competitive and
regulatory conditions, demographic trends, third-party
intellectual property, financial market conditions and future
business decisions of Boston Scientific and its competitors, all
of which are difficult or impossible to predict accurately and
many of which are beyond the control of Boston Scientific.
Therefore, the Company wishes to caution each reader of this
Prospectus, the accompanying Prospectus Supplement and the
documents incorporated herein by reference to consider carefully
these factors as well as the specific factors discussed with
each forward-looking statement and as disclosed in the
Company&#146;s filings with the Securities and Exchange
Commission as such factors, in some cases, have affected, and in
the future (together with other factors) could affect, the
ability of the Company to implement its business strategy and
may cause actual results to differ materially from those
contemplated by the statements expressed herein and in the
documents incorporated herein by reference.</I>
</FONT>
</DIV>

<P align="center"><FONT size="2">6
</FONT>

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<DIV align="left">
<A name='115'></A>
</DIV>

<!-- link1 "THE COMPANY" -->

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company is a worldwide developer,
manufacturer and marketer of minimally invasive medical devices.
Medical professionals use the Company&#146;s products in a broad
range of interventional medical specialties, including
cardiology, gastroenterology, neuro-endovascular therapy,
pulmonary medicine, radiology, urology and vascular surgery. The
Company&#146;s products are generally inserted into the human
body through natural openings or small incisions in the skin and
can be guided to most areas of the anatomy to diagnose and treat
a wide range of medical problems. These products provide
effective alternatives to traditional surgery by reducing
procedural trauma, complexity, risk to the patient, cost and
recovery time. In recent years, the Company has bolstered its
growth through several strategic acquisitions and alliances.
Most recently, on September&nbsp;10, 1998, the Company acquired
Schneider Worldwide, formerly a member of the Medical Technology
Group of Pfizer Inc. (&#147;Pfizer&#148;), for approximately
$2.1&nbsp;billion in cash. The purchase price was funded by the
issuance of commercial paper.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The principal executive offices of the Company
are located at One Boston Scientific Place, Natick,
Massachusetts 01760-1537. Its telephone number is
(508)&nbsp;650-8000.
</FONT>

<DIV align="left">
<A name='116'></A>
</DIV>

<!-- link1 "TRUSTS" -->

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Each Trust is a statutory business trust formed
under Delaware law pursuant to (i)&nbsp;a separate declaration
of trust (each, as amended and restated, a
&#147;Declaration&#148;) executed by the Company as sponsor for
such trust (the &#147;Sponsor&#148;), the Regular Trustees (as
defined herein) and the Delaware Trustee (as defined herein) of
such trust and (ii)&nbsp;the filing of a certificate of trust
with the Secretary of State of the State of Delaware on
September&nbsp;25, 1998, with respect to BSC Capital Trust, and
on September&nbsp;29, 1998, with respect to the other Trusts.
The Company and each Institutional Trustee (as defined herein)
will qualify the applicable Declaration as an indenture under
the Trust Indenture Act of 1939, as amended (the &#147;Trust
Indenture Act&#148;). Each Trust exists for the exclusive
purposes of (i)&nbsp;issuing and selling Trust Securities,
(ii)&nbsp;investing the gross proceeds from the sale of such
Trust Securities in Subordinated Debt Securities and
(iii)&nbsp;engaging in only those other activities necessary or
incidental thereto.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company will own directly or indirectly all
of the Trust Common Securities of each Trust. The Trust Common
Securities of each Trust will rank pari passu, and the
applicable Trust will make payments thereon pro rata, with the
Trust Preferred Securities of such Trust except that, if any
event of default has occurred and is continuing under its
Declaration, the rights of holders of the Trust Common
Securities to payment in respect of distributions and payments
upon liquidation, redemption or otherwise will be subordinated
to the rights of holders of the Trust Preferred Securities of
such Trust. The Company will acquire Trust Common Securities of
each of the Trusts in an aggregate liquidation amount equal to
at least 3% of the total capital of each such Trust.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The term of each Trust is approximately
45&nbsp;years, but each Trust may be dissolved earlier as
provided in its Declaration. The business and affairs of each of
the Trusts will be conducted by the trustees (the &#147;Capital
Trustees&#148;) appointed by the Company as the direct or
indirect holder of all of the Trust Common Securities of each
such Trust. As holder of the Trust Common Securities, the
Company will be entitled to appoint, remove or replace any of,
or increase or reduce the number of Capital Trustees of each of
the Trusts. The applicable Declaration governs the duties and
obligations of the Capital Trustees. A majority of the Capital
Trustees (the &#147;Regular Trustees&#148;) of each of the
Trusts will be persons who are employees or officers of, or who
are affiliated with, the Company. One Capital Trustee of each
Trust will be a financial institution that is unaffiliated with
the Company and has minimum capital and surplus of not less than
$50.0 million. That institution acts as property trustee and as
indenture trustee (the &#147;Institutional Trustee&#148;) for
the purpose of compliance with the provisions of the Trust
</FONT>

<P align="center"><FONT size="2">7
</FONT>
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<DIV align="left">
<FONT size="2">Indenture Act pursuant to terms set forth in the
applicable Prospectus Supplement. In addition, unless the
Institutional Trustee for a Trust maintains a principal place of
business in the State of Delaware and otherwise meets the
requirements of applicable law, one Capital Trustee of such
Trust will be an entity having a principal place of business in,
or a natural person resident of, the State of Delaware (the
&#147;Delaware Trustee&#148;). The Company will pay all fees and
expenses related to the Trusts and any offering of Trust
Securities.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The rights of the holders of the Trust Preferred
Securities, including economic rights, rights to information and
voting rights, are set forth in Declaration, the Delaware
Business Trust Act, as amended (the &#147;Trust Act&#148;), and
the Trust Indenture Act. See &#147;Description of Trust
Preferred Securities.&#148;
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Unless otherwise specified in the applicable
Prospectus Supplement, the Institutional Trustee for each of the
Trusts is The Chase Manhattan Bank; Attention: Corporate Trust
Administration. Unless otherwise specified in the applicable
Prospectus Supplement, The Chase Manhattan Bank Delaware will
serve as the Delaware Trustee for each of the Trusts, and its
address in the State of Delaware is 1201&nbsp;North Market
Street, Wilmington, New Castle County, Delaware 19801,
Attention: Corporate Trust Administration. The principal place
of business of each of the Trusts is c/o Boston Scientific
Corporation, One Boston Scientific Place, Natick, Massachusetts
01760-1537, telephone number (508)&nbsp;650-8000.
</FONT>

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

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<DIV align="left">
<A name='117'></A>
</DIV>

<!-- link1 "USE OF PROCEEDS" -->

<P align="center">
<B><FONT size="2">USE OF PROCEEDS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company intends to use the net proceeds from
the sale of the Securities (including Subordinated Debt
Securities issued to any of the Trusts in connection with the
investment by any such Trust of all of the proceeds from the
sale of Trust Preferred Securities) for general corporate
purposes, including, without limitation, repurchases or
redemptions of the Company&#146;s outstanding debt securities or
other reductions of the Company&#146;s outstanding borrowings,
working capital, business acquisitions, investments in or loans
to subsidiaries, capital expenditures or for such other purposes
as may be specified in the applicable Prospectus Supplement.
</FONT>

<DIV align="left">
<A name='118'></A>
</DIV>

<!-- link1 "RATIO OF EARNINGS TO FIXED CHARGES" -->

<P align="center">
<B><FONT size="2">RATIO OF EARNINGS TO FIXED CHARGES</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The ratios of earnings to fixed charges of the
Company on a consolidated basis for the periods indicated were
as follows (unaudited):
</FONT>

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

<TR>
    <TD width="44%"><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="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="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><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="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="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><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="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><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="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><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="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Three Months</FONT></B></TD>
    <TD></TD>
    <TD colspan="19"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Ended March 31,</FONT></B></TD>
    <TD></TD>
    <TD colspan="19" align="center" nowrap><B><FONT size="1">Year Ended December 31,</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="19" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">1999</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">1998</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">1998</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">1997</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">1996</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">1995</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">1994</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>
    <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>
    <TD 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><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4.99</FONT></TD>
    <TD><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" nowrap><FONT size="2">8.44</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><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" nowrap><FONT size="2">7.24</FONT></TD>
    <TD><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" nowrap><FONT size="2">15.76</FONT></TD>
    <TD><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" nowrap><FONT size="2">5.07</FONT></TD>
    <TD><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" nowrap><FONT size="2">16.98</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">Coverage deficiency (in thousands)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><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">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(279,774</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">For purposes of calculating the ratio of earnings
to fixed charges, &#147;earnings&#148; consist of income (loss)
before income taxes and the cumulative effect of a change in
accounting plus net distributed equity in earnings of equity
investees and fixed charges less capitalized interest.
&#147;Fixed charges&#148; consist of interest expense,
capitalized interest, amortization of debt issuance expenses and
discount and an appropriate portion of rental expense that
represents a reasonable approximation of the interest factor.
&#147;Coverage deficiency&#148; consists of earnings, as defined
above, less fixed charges.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The ratios of earnings to fixed charges for all
periods presented are not necessarily indicative of the results
that may be expected for any future periods, and reflect
merger-related and special charges recorded in conjunction with
the Company&#146;s acquisitions and strategic alliances
consummated through March&nbsp;31, 1999. The Company had a
coverage deficiency in 1998 as a result of noncash special
charges of $646 million recorded in connection with the
acquisition of Schneider Worldwide and other merger-related
initiatives. These ratios should be read in conjunction with the
Company&#146;s consolidated financial statements (including
notes thereto) included in the 1998 Form&nbsp;10-K and the
Company&#146;s condensed consolidated financial statements
(including notes thereto) included in the March&nbsp;1999
Form&nbsp;10-Q.
</FONT>

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

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<DIV align="left">
<FONT size="2"> <A name='119'></A>
</FONT>
</DIV>

<!-- link1 "DESCRIPTION OF DEBT SECURITIES" -->

<P align="center">
<B><FONT size="2">DESCRIPTION OF DEBT SECURITIES</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">The following description of the terms of the
Debt Securities sets forth certain general terms and provisions
of the Debt Securities to which any Prospectus Supplement may
relate. Particular terms of the Debt Securities offered by any
Prospectus Supplement and the extent, if any, to which such
general provisions may apply to any series of Debt Securities
will be described in the Prospectus Supplement relating to such
Debt Securities. This description does not purport to be
complete and is subject to, and qualified in its entirety by
reference to, all of the provisions of the Indenture (as defined
herein), including the definitions therein of certain terms and
those terms made part of such Indenture by reference to the
Trust Indenture Act, as in effect on the date of such Indenture,
and to such Debt Securities. Unless otherwise indicated, certain
capitalized terms used below and not defined have the respective
meanings assigned to them in the Indenture. <BR>
</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company may issue Debt Securities from time
to time in one or more series. Senior Debt Securities and/or
Subordinated Debt Securities may be issued under an indenture,
as amended or supplemented from time to time (as so supplemented
or amended, the &#147;Indenture&#148;) between the Company and
The Chase Manhattan Bank, as trustee (the &#147;Trustee&#148;),
and in the form that has been filed as an exhibit to the
Registration Statement of which this Prospectus is a part. The
Indenture will be subject to and governed by the Trust Indenture
Act.
</FONT>

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Debt Securities will be unsecured obligations
of the Company. The Indebtedness represented by (i)&nbsp;Senior
Debt Securities will rank on a parity with all other unsecured
and unsubordinated Indebtedness of the Company and
(ii)&nbsp;Subordinated Debt Securities will be unsecured and
subordinated in right of payment to the prior payment in full of
all Senior Indebtedness (as defined below) of the Company. See
&#147;&#151; Subordination.&#148;
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Indenture will provide for the issuance by
the Company from time to time of Debt Securities in one or more
series. The aggregate principal amount of Debt Securities which
may be issued under the Indenture will be unlimited and the
Indenture will set forth the specific terms of any series of
Debt Securities or provide that such terms shall be set forth
in, or determined pursuant to, an authorizing resolution and/or
a supplemental indenture, if any, relating to such series.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Reference is made to the Prospectus Supplement
relating to the particular series of Debt Securities offered
thereby for a description of the terms of such Debt Securities
in respect of which this Prospectus is being delivered,
including the following, as applicable:
</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">(i)&nbsp;the form and title of such Debt
    Securities and whether such Debt Securities are Senior Debt
    Securities or Subordinated Debt Securities;
    </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">(ii)&nbsp;any limit on the aggregate principal
    amount of such series of Debt Securities;
    </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">(iii)&nbsp;the date or dates on which the
    principal of such Debt Securities is payable, or the method by
    which such dates will be determined or extended;
    </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">(iv)&nbsp;the rate or rates at which such Debt
    Securities shall bear interest, if any, the date or dates from
    which such interest will accrue, the Interest Payment Dates on
    which such interest will be payable, the right, if any, of the
    Company to defer or extend an Interest Payment Date and the
    Regular Record Date, if any, for interest payable on any
    Registered Security on any Interest Payment Date, or the method
    by which any of the foregoing shall be determined, and the basis
    upon which interest will be calculated if other than on the
    basis of a 360-day year of twelve 30-day months;
    </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">(v)&nbsp;the place or places, if any, other than
    or in addition to the Borough of Manhattan, The City of New
    York, where the principal of, and premium, if any, and interest,
    if any, on
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">10
</FONT>
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    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

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    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">such Debt Securities will be payable, where any
    Registered Securities of the series may be surrendered for
    registration of transfer, where such Debt Securities may be
    surrendered for exchange, where such Debt Securities that are
    convertible or exchangeable may be surrendered for conversion or
    exchange, as applicable and, if different than the location
    specified in the Indenture, the place or places where notices or
    demands to or upon the Company in respect of such Debt
    Securities and such Indenture may be served;
    </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">(vi)&nbsp;the period or periods within which, the
    price or prices at which, the currency or currencies in which,
    and other terms and conditions upon which such Debt Securities
    may be redeemed, in whole or in part, at the option of the
    Company or a Holder, if the Company or a Holder thereof is to
    have that option;
    </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">(vii)&nbsp;the obligation or the right, if any,
    of the Company to redeem, repay or purchase such Debt Securities
    pursuant to any sinking fund or analogous provision or at the
    option of a Holder thereof, and the period or periods within
    which, the price or prices at which, the currency or currencies
    in which, and other terms and conditions upon which such Debt
    Securities will be redeemed, repaid or purchased, in whole or in
    part, pursuant to such obligation;
    </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">(viii)&nbsp;if other than denominations of $1,000
    and any integral multiple thereof, the denomination or
    denominations in which any Registered Securities of such series
    will be issuable and, if other than denominations of $5,000, the
    denomination or denominations in which any Bearer Securities of
    such series will be issuable;
    </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">(ix)&nbsp;if other than the Trustee, the identity
    of each Security Registrar and/or Paying Agent;
    </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">(x)&nbsp;if other than the principal amount
    thereof, the portion of the principal amount of such Debt
    Securities that will be payable upon declaration of acceleration
    of the Maturity thereof under the Indenture, or the method by
    which such portion shall be determined;
    </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">(xi)&nbsp;if other than U.S. dollars, the
    currency or currencies (including currency unit or units) in
    which payment of principal of, or premium, if any, or interest,
    if any, on such Debt Securities will be payable or in which such
    Debt Securities will be denominated, and the particular
    provisions applicable thereto in accordance with, in addition to
    or in lieu of any provisions of the Indenture;
    </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">(xii)&nbsp;whether the amount of payments of
    principal of, or premium, if any, or interest, if any, on such
    Debt Securities may be determined with reference to an index,
    formula or other method (which index, formula or method may be
    based, without limitation, on one or more currencies,
    commodities, equity indices or other indices), and the manner in
    which such amounts will be determined;
    </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">(xiii)&nbsp;whether the principal of, or premium,
    if any, or interest, if any, on such Debt Securities are to be
    payable, at the election of the Company or a Holder thereof, in
    a currency or currencies other than that in which such Debt
    Securities are denominated or stated to be payable, the period
    or periods within which (including the Election Date), and the
    terms and conditions upon which such election may be made, and
    the time and manner of determining the exchange rate between the
    currency in which such Debt Securities are denominated or stated
    to be payable and the currency or currencies in which such Debt
    Securities are to be so payable, in each case in accordance
    with, in addition to or in lieu of any of the provisions of the
    Indenture;
    </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">(xiv)&nbsp;the designation of the initial
    Exchange Rate Agent, if any;
    </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">(xv)&nbsp;the applicability, if any, of the
    defeasance or covenant defeasance provisions of the Indenture to
    such Debt Securities, and any provisions in modification of, in
    addition to or in lieu of any of the provisions of the Indenture;
    </FONT></TD>
</TR>

</TABLE>

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

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

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    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">(xvi)&nbsp;provisions, if any, granting special
    rights to Holders of such Debt Securities upon the occurrence of
    such events as may be specified;
    </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">(xvii)&nbsp;any deletions from, modifications of
    or additions to the Events of Default or covenants of the
    Company specified in the Indenture with respect to such Debt
    Securities, whether or not such Events of Default or covenants
    are consistent with the Events of Default or covenants set forth
    herein;
    </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">(xviii)&nbsp;whether such Debt Securities are to
    be issuable as Registered Securities, Bearer Securities (with or
    without coupons), or both, any restrictions applicable to the
    offer, sale or delivery of Bearer Securities, whether any such
    Debt Securities are to be issuable initially in temporary global
    form and whether any such Debt Securities are to be issuable in
    permanent global form with or without coupons and, if so,
    whether beneficial owners of interests in any such permanent
    global Security may exchange such interests for Debt Securities
    of such series and of like tenor of any authorized form and
    denomination and the circumstances under which any such
    exchanges may occur, if other than in the manner provided in the
    Indenture, whether Registered Securities of the series may be
    exchanged for Bearer Securities of the series (if permitted by
    applicable laws and regulations), and the circumstances under
    which and the place or places where any such exchanges may be
    made and if Debt Securities of any series are to be issuable in
    global form, the identity of any initial depository therefor;
    </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">(xix)&nbsp;the date as of which any Bearer
    Securities of the series and any temporary global Security
    representing Outstanding Securities of the series will be dated
    if other than the date of original issuance of the first Debt
    Security of the series to be issued;
    </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">(xx)&nbsp;the Person to whom any interest in any
    Registered Security of the series will be payable, if other than
    the Person in whose name that Debt Security (or one or more
    Predecessor Securities) is registered at the close of business
    on the Regular Record Date for such interest, the manner in
    which, or the Person to whom, any interest on any Bearer
    Security of the series shall be payable, if other than upon
    presentation and surrender of the coupons appertaining thereto
    as they severally mature, and the extent to which, or the manner
    in which, any interest payable on a temporary global Security on
    an Interest Payment Date will be paid if other than in the
    manner provided in the Indenture;
    </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">(xxi)&nbsp;if such Debt Securities are to be
    issuable in definitive form (whether upon original issue or upon
    exchange of a temporary Security of such series) only upon
    receipt of certain certificates or other documents or
    satisfaction of other conditions, the form and/or terms of such
    certificates, documents or conditions;
    </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">(xxii)&nbsp;if such Debt Securities are to be
    issued upon the exercise of warrants, the time, manner and place
    for such Debt Securities to be authenticated and delivered;
    </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">(xxiii)&nbsp;whether, under what circumstances
    and the currency or currencies in which the Company will pay
    Additional Amounts as contemplated by the Indenture on such Debt
    Securities to any Holder who is not a United States person
    (including any modification to the definition of such term) in
    respect of any tax, assessment or governmental charge and, if
    so, whether the Company will have the option to redeem such Debt
    Securities rather than pay such Additional Amounts (and the
    terms of any such option);
    </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">(xxiv)&nbsp;if such Debt Securities are to be
    convertible into or exchangeable for any securities of any
    Person (including the Company), the terms and conditions upon
    which such Debt Securities will be so convertible or
    exchangeable;
    </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">(xxv)&nbsp;whether the Debt Securities are
    subject to subordination and the terms of such subordination; and
    </FONT></TD>
</TR>

</TABLE>

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

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<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">(xxvi)&nbsp;any other terms, conditions, rights
    and preferences relating to such Debt Securities.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">With respect to Debt Securities of any series
denominated in U.S. dollars, the Registered Securities of such
series, other than Registered Securities issued in global form
(which may be of any denomination), will be issuable in
denominations of $1,000 and any integral multiple thereof and
the Bearer Securities of such series, other than Bearer
Securities issued in global form (which may be of any
denomination), will be issuable in a denomination of $5,000,
unless otherwise provided in the applicable Prospectus
Supplement. The Prospectus Supplement relating to a series of
Debt Securities denominated in any currency other than U.S.
dollars or a composite currency will specify the denominations
thereof.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">One or more series of Debt Securities may be sold
at a substantial discount below their stated principal amount,
bearing no interest or interest at a rate which is below market
rates at the time of issuance. One or more series of Debt
Securities may be floating rate debt securities which are
exchangeable for fixed rate debt securities. The Company will
describe certain federal income tax consequences and special
considerations, if any, applicable to each series of Debt
Securities in the Prospectus Supplement relating thereto.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Unless otherwise indicated in the applicable
Prospectus Supplement, interest, if any, on any Registered
Security which is payable, and is punctually paid or duly
provided for, on any Interest Payment Date will be paid to the
Person in whose name such Security is registered at the close of
business on the Regular Record Date for such interest at the
office or agency of the Company maintained for such purpose as
set forth in the Indenture; <I>provided, however</I>, that the
Company may, at its option, pay each installment of interest, if
any, on any Registered Security by (i)&nbsp;mailing a check for
such interest installment, payable to or upon the written order
of the Person entitled thereto as set forth in the Indenture, to
the address of such Person as it appears on the Security
Register or (ii)&nbsp;transferring an amount equal to such
interest installment to an account located in the United States
maintained by the payee.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Holders may present Debt Securities for exchange
and may present registered Debt Securities for transfer, in the
manner, at the places and subject to the restrictions set forth
in the Indenture and the Debt Securities and described in the
applicable Prospectus Supplement. The Company will charge no
service fees for any transfer or exchange of the Debt
Securities, but the Company may require payment of a sum
sufficient to cover any tax or other governmental charge payable
in connection therewith.
</FONT>

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Debt Securities of a series may be issued in
whole or in part in the form of one or more fully registered
Global Securities that will be deposited with, or on behalf of,
a depositary (the &#147;Depositary&#148;) identified in the
Prospectus Supplement relating to such series. Unless and until
it is exchanged in whole or in part for Debt Securities in
definitive registered form, a Global Security may not be
transferred except as a whole by the Depositary for such Global
Security to a nominee of such Depositary or by a nominee of such
Depositary to such Depositary or another nominee of such
Depositary or by such Depositary or any such nominee to a
successor of such Depositary or a nominee of such successor.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The specific terms of the Depositary arrangement
with respect to any Debt Securities of a series will be
described in the Prospectus Supplement relating to such series.
The Company anticipates that the following provisions will apply
to all Depositary arrangements.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Upon the issuance of a Global Security, the
Depositary for such Global Security will credit, on its
book-entry registration and transfer system, the respective
principal amounts of the Debt Securities represented by such
Global Security to the accounts of persons that have accounts
with such Depositary (&#147;participants&#148;). The accounts to
be credited shall be designated by the
</FONT>

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

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<DIV align="left">
<FONT size="2">underwriters or agents with respect to such Debt
Securities or by the Company if such Debt Securities are offered
and sold directly by the Company. Ownership of beneficial
interests in a Global Security will be limited to participants
or persons that may hold interests through participants.
Ownership of participant&#146;s interests in a Global Security
will be shown on, and the transfer of that ownership will be
effected only through, records maintained by the Depositary for
such Global Security. Ownership of beneficial interests in a
Global Security will be shown on, and the transfer of that
ownership will be effected only through, records maintained by
participants or persons that hold through participants. The laws
of some states require that certain purchasers of securities
take physical delivery of such securities in definitive form.
Such limits and such laws may impair the ability to transfer
beneficial interests in a Global Security.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">So long as the Depositary for a Global Security,
or its nominee, is the registered owner of such Global Security,
such Depositary or such nominee, as the case may be, will be
considered the sole owner or holder of the Debt Securities
represented by such Global Security for all purposes under the
Indenture. Except as set forth below, owners of beneficial
interests in a Global Security will not be entitled to have Debt
Securities of the series represented by such Global Security
registered in their names, will not receive or be entitled to
receive physical delivery of Debt Securities of such series in
definitive form and will not be considered the owners or holders
thereof under the Indenture.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Principal, premium, if any, and any interest
payments on Debt Securities registered in the name of a
Depositary or its nominee will be made to the Depositary or its
nominee, as the case may be, as the registered owner of a Global
Security representing such Debt Securities. None of the Company,
the Trustee, any Paying Agent or the Security Registrar for such
Debt Securities will have any responsibility or liability for
any aspect of the records relating to or payments made on
account of beneficial ownership interests in the Global Security
or Securities for such Debt Securities or for maintaining,
supervising or reviewing any records relating to such beneficial
ownership interests.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company expects that the Depositary for a
series of Debt Securities, upon receipt of any payment of
principal, premium or interest, will credit immediately
participants&#146; accounts with payments in amounts
proportionate to their respective beneficial interests in the
principal amount of the Global Security or Securities for such
Debt Securities as shown on the records of such Depositary. The
Company also expects that payments by participants to owners of
beneficial interests in such Global Security or Securities held
through such participants will be governed by standing
instructions and customary practices, as is now the case with
securities held for the accounts of customers in bearer form or
registered in &#147;street name,&#148; and will be the
responsibility of such participants.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Further, if the Company so specifies with respect
to the Debt Securities of a series, an owner of a beneficial
interest in a Global Security representing Debt Securities of
such series may, on terms acceptable to the Company, receive
Debt Securities of such series in definitive form. In any such
instance, an owner of a beneficial interest in a Global Security
will be entitled to have Debt Securities of the series
represented by such Global Security equal in principal amount to
such beneficial interest registered in its name and will be
entitled to physical delivery of such Debt Securities in
definitive form.
</FONT>

<P align="left">
<B><FONT size="2">Events of Default</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Indenture provides that the following shall
constitute Events of Default with respect to any series of Debt
Securities thereunder:
</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">(i)&nbsp;default in the payment of any interest
    on any Debt Security of such series, when it becomes due and
    payable, and continuance of such default for a period of
    30&nbsp;days;
    </FONT></TD>
</TR>

</TABLE>

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

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<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">(ii)&nbsp;default in the payment of the principal
    of or premium, if any, on any Debt Security of such series when
    due either at its Maturity, upon acceleration, redemption or
    otherwise;
    </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">(iii)&nbsp;default in the deposit of any sinking
    fund payment, when and as due by the terms of the Debt
    Securities of such series and the Indenture;
    </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">(iv)&nbsp;default in the performance, or breach,
    of any covenant or agreement of the Company in the Indenture
    which affects or is applicable to Debt Securities of such series
    (other than a default in the performance, or breach of a
    covenant or agreement which is specifically dealt with elsewhere
    in the Indenture), and continuance of such default or breach for
    a period of 60&nbsp;days after there has been given to the
    Company by the Trustee, or to the Company and the Trustee by
    Holders of at least 25% in aggregate principal amount of all
    outstanding Securities of such series, a written notice thereof;
    </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">(v)&nbsp;certain events in bankruptcy, insolvency
    or reorganization of the Company; 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">(vi)&nbsp;any other Event of Default provided
    with respect to Debt Securities of such series.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">No Event of Default with respect to a particular
series of Debt Securities issued under the Indenture necessarily
constitutes an Event of Default with respect to any other series
of Debt Securities issued thereunder.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Indenture provides that if an Event of
Default specified in clause&nbsp;(i), (ii), (iii), (iv) or (vi)
above occurs and is continuing, either the Trustee or the
Holders of at least 25% in aggregate principal amount of the
Outstanding Debt Securities of such series may declare the
principal of all such Debt Securities (or, in the case of
Original Issue Discount Securities or Indexed Securities, such
portion of the principal amount thereof as may be specified in
the terms thereof) to be due and payable immediately. If an
Event of Default specified in clause&nbsp;(v) above occurs and
is continuing, then the principal of all such Debt Securities
(or, in the case of Original Issue Discount Securities or
Indexed Securities, such portion of the principal amount thereof
as may be specified in the terms thereof) will be due and
payable immediately, without any declaration or other act on the
part of the Trustee or any Holder. In certain cases, Holders of
a majority in principal amount of the outstanding Debt
Securities of any series may, on behalf of Holders of all such
Debt Securities, rescind and annul a declaration of acceleration.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Indenture provides that the Trustee will not
be liable for any action taken, suffered or omitted by it in
good faith and believed by it to be authorized or within the
discretion or rights or powers conferred upon it by the
Indenture. The Indenture provides that no Holder of Debt
Securities of any series may institute any proceedings, judicial
or otherwise, to enforce the Indenture except in the case of
failure of the Trustee thereunder to act for 60 days after it
has received a request to enforce the Indenture by Holders of at
least 25% in aggregate principal amount of the then Outstanding
Debt Securities of such series (in the case of an Event of
Default specified in clause&nbsp;(i), (ii), (iii), (iv) or (vi)
above) or a request to enforce the Indenture by Holders of at
least 25% in aggregate principal amount of all of the Debt
Securities then Outstanding (in the case of an Event of Default
specified in clause (v)&nbsp;above), and an offer of reasonable
indemnity. This provision will not prevent any Holder of Debt
Securities from enforcing payment of principal thereof, and
premium, if any, and interest, if any, thereon at the respective
due dates thereof. Holders of a majority in aggregate principal
amount of the Debt Securities of any series then outstanding may
direct the time, method and place of conducting any proceeding
for any remedy available to the Trustee or exercising any trust
or power conferred on it with respect to Debt Securities of such
series. The Trustee may, however, refuse to follow any direction
that it determines may not lawfully be taken or would be illegal
or in conflict with such Indenture or involve it in personal
liability or which would be unjustly prejudicial to Holders not
joining therein.
</FONT>

<P align="center"><FONT size="2">15
</FONT>

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Indenture provides that the Trustee will,
within 90&nbsp;days after the occurrence of a default with
respect to any series of Debt Securities thereunder, give to
Holders of Debt Securities of such series notice of such default
if such default has not been cured or waived. Except in the case
of a default in the payment of principal of, or premium, if any,
or interest on, or in the payment of any sinking fund
installment in respect of, any Debt Securities of such series,
the Trustee will be protected in withholding such notice if it
determines in good faith that the withholding of such notice is
in the interest of Holders of the Debt Securities of such series.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company will be required to file annually
with the Trustee an Officers&#146; Certificate as to compliance
with all conditions and covenants under the terms of the
Indenture.
</FONT>

<P align="left">
<B><FONT size="2">Modification and Waiver</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Modifications of and amendments to the Indenture
may be made by the Company and the Trustee thereunder with the
consent of Holders of a majority in principal amount of the
outstanding Debt Securities of each series issued under the
Indenture that is affected by such modification or amendment;
<I>provided, however</I>, that no such modification or amendment
may, without the consent of the Holder of each Outstanding Debt
Security affected thereby: (i)&nbsp;change the Stated Maturity
of the principal of, or premium, if any, or any installment of
interest on any Debt Security of such series, or reduce the
principal amount thereof, or premium, if any, or the rate of
interest, if any, thereon, or change any obligation of the
Company to pay Additional Amounts (except as contemplated or
permitted by the Indenture), or reduce the amount of principal
of an Original Issue Discount Security of such series that would
be due and payable upon a declaration of acceleration of the
Maturity thereof or the amount thereof provable in bankruptcy,
or adversely affect any right of repayment at the option of any
Holder of any Debt Security of such series, or change any Place
of Payment where, or the currency in which, any Debt Security of
such series or premium, if any, or interest thereon is payable,
or impair the right to institute suit for the enforcement of any
such payment on or after the Stated Maturity thereof (or, in the
case of redemption or repayment at the option of the Holder, on
or after the Redemption Date or Repayment Date, as the case may
be), or adversely affect any right to convert or exchange any
Debt Security; (ii)&nbsp;reduce the percentage in principal
amount of the Outstanding Debt Securities of any series, the
consent of whose Holders is required for any supplemental
indenture, for any waiver of compliance with certain provisions
of the Indenture or certain defaults applicable to such series
thereunder and their consequences provided for in the Indenture,
or reduce the quorum or voting with respect to Debt Securities
of such series; or (iii)&nbsp;modify any of the provisions
relating to supplemental indentures requiring the consent of
Holders or relating to the waiver of past defaults or relating
to the waiver of certain covenants, except to increase any such
percentage or to provide that certain other provisions of the
Indenture which affect such series cannot be modified or waived
without the consent of the Holder of each Outstanding Debt
Security affected thereby.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company may, with respect to any series of
Debt Securities, omit in any particular instance to comply with
certain restrictive provisions of the Indenture if Holders of at
least a majority in principal amount of all Outstanding Debt
Securities affected by such term, provision or condition, by Act
of such Holders, waive such compliance in such instance with
such term, provision or condition, but no such waiver will
extend to or affect such term, provision or condition except to
the extent so expressly waived, and, until such waiver will
become effective, the obligations of the Company and the duties
of the Trustee to Holders of Debt Securities of such series in
respect of any such term, provision or condition will remain in
full force and effect. Holders of a majority in principal amount
of the outstanding Debt Securities of each series (in the case
of an Event of Default specified in clause&nbsp;(i), (ii),
(iii), (iv) or (vi) in &#147;Events of Default,&#148; above) or
the Holders of a majority in principal amount of all of the Debt
</FONT>

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

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<DIV align="left">
<FONT size="2">Securities then Outstanding (in the case of an
Event of Default specified in clause&nbsp;(v) in &#147;Events of
Default,&#148; above) may, on behalf of all such Holders, waive
any past default under the Indenture with respect to Debt
Securities of that series except a default in the payment of the
principal of, or premium, if any, or interest, if any, on any
such Debt Security and except a default in respect of a covenant
or provision the modification or amendment of which would
require the consent of the Holder of each outstanding Debt
Security affected thereby.
</FONT>
</DIV>

<P align="left">
<B><FONT size="2">Merger, Consolidation, or Sale of
Assets</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company shall not consolidate with or merge
with or into any other corporation or transfer all or
substantially all of its property and assets as an entirety to
any Person, unless (i)&nbsp;either the Company shall be the
continuing Person, or the Person (if other than the Company)
formed by such consolidation or into which the Company is merged
or to which all or substantially all of the properties and
assets of the Company as an entirety are transferred is a
corporation organized and existing under the laws of the United
States or any State thereof or the District of Columbia which
expressly assumes all of the obligations of the Company under
each series of Debt Securities and the Indenture with respect to
each such series and (ii)&nbsp;immediately before and
immediately after giving effect to such transaction, no Event of
Default and no event which, after notice or passage of time or
both, would become an Event of Default shall have occurred and
be continuing. Notwithstanding the foregoing, any Subsidiary may
consolidate with, merge with or into or transfer all or part of
its properties and assets to the Company or any other Subsidiary
or Subsidiaries.
</FONT>

<P align="left">
<B><FONT size="2">Limitation on Liens</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Indenture will provide that with respect to
each series of Senior Debt Securities, unless otherwise set
forth in the related Prospectus Supplement, the Company will
not, and will not permit any of its Subsidiaries to, directly or
indirectly, create, incur, assume or suffer to exist any Lien
upon any of its property, assets or revenues, whether now owned
or hereafter acquired, except for: (i)&nbsp;Liens for taxes not
yet due or which are being contested in good faith by
appropriate proceedings; <I>provided </I>that adequate reserves
with respect thereto are maintained on the books of the Company
or its Subsidiaries, as the case may be, in conformity with
GAAP; (ii)&nbsp;carriers&#146;, warehousemen&#146;s,
mechanics&#146;, materialmen&#146;s, repairmen&#146;s or other
like Liens arising in the ordinary course of business that are
not overdue for a period of more than 60&nbsp;days or which are
being contested in good faith by appropriate proceedings;
(iii)&nbsp;pledges or deposits in connection with workers&#146;
compensation, unemployment insurance and other social security
legislation and deposits securing liability to insurance
carriers under insurance or self-insurance arrangements;
(iv)&nbsp;deposits to secure the performance of bids, trade
contracts (other than for borrowed money), leases, statutory
obligations, surety and appeal bonds, performance bonds and
other obligations of a like nature incurred in the ordinary
course of business; (v)&nbsp;easements, rights-of-way,
restrictions and other similar encumbrances incurred in the
ordinary course of business which, in the aggregate, are not
substantial in amount and which do not in any case materially
detract from the value of the property subject thereto or
materially interfere with the ordinary conduct of the business
of the Company or such Subsidiary; (vi)&nbsp;Liens in existence
on the date of the first issuance by the Company of Senior Debt
Securities issued pursuant to the Indenture; <I>provided</I>
that no such Lien is spread to cover any additional property
after such date and that the amount of Debt secured thereby is
not increased; (vii)&nbsp;Liens securing Debt of the Company and
its Subsidiaries incurred to finance the acquisition of fixed or
capital assets; provided that (A)&nbsp;such Liens will be
created substantially simultaneously with the acquisition of
such fixed or capital assets, (B)&nbsp;such Liens do not at any
time encumber any property other than the property financed by
such Debt and (C)&nbsp;the amount of Debt secured thereby is not
increased; (viii)&nbsp;Liens on the property or assets of a
corporation that becomes a Subsidiary after the date hereof;
<I>provided </I>that (A)&nbsp;such Liens existed at the time
such corporation became a Subsidiary and were not created in
anticipation
</FONT>

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

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<DIV align="left">
<FONT size="2">thereof, (B)&nbsp;any such Lien is not spread to
cover any property or assets or such corporation after the time
such corporation becomes a Subsidiary, and (C)&nbsp;the amount
of Debt secured thereby is not increased; and (ix)&nbsp;Liens
(not otherwise permitted hereunder) (A)&nbsp;which secure
obligations not exceeding the greater of $100.0 million or 15%
of Consolidated Net Worth of the Company, in each case in
aggregate amount at any time outstanding, or (B)&nbsp;with
respect to which the Company effectively provides that the
Senior Debt Securities outstanding hereunder are secured equally
and ratably with (or, at the option of the Company, prior to)
the Debt secured by such Lien.
</FONT>
</DIV>

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If so specified in the Prospectus Supplement with
respect to Debt Securities of any series, the Company at its
option, (i)&nbsp;will be discharged from any and all obligations
in respect of the Debt Securities of such series (except for
certain obligations to register the transfer or exchange of Debt
Securities of such series, replace stolen, lost or mutilated
Debt Securities of such series, maintain Paying Agencies, and
hold money for payment in trust) or (ii)&nbsp;will not be
subject to certain specified covenants with respect to the Debt
Securities of such series as set forth in the related Prospectus
Supplement, in each case if the Company deposits with the
Trustee, in trust, money or Government Obligations which through
the payment of interest thereon and principal thereof in
accordance with their terms will provide money in an amount
sufficient to pay all the principal (including any mandatory
sinking fund payments) of, and interest on, the Outstanding Debt
Securities of such series on the dates such payments are due in
accordance with the terms of such Debt Securities. To exercise
any such option, the Company is required to deliver to the
Trustee an Opinion of Counsel to the effect that the deposit and
related defeasance would not cause the Holders of the Debt
Securities of such series to recognize income, gain or loss for
federal income tax purposes and, in the case of a discharge
pursuant to clause (i), either a ruling to such effect received
from or published by the U.S. Internal Revenue Service or an
opinion that there has been a change in applicable federal
income tax law to such effect. The Company is required to
deliver to the Trustee an Officer&#146;s Certificate stating
that no Event of Default with respect to the Debt Securities of
such series has occurred and is continuing.
</FONT>

<P align="left">
<B><FONT size="2">Conversion Rights and Exchange
Rights</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The terms and conditions, if any, upon which any
of the Debt Securities are convertible into or exchangeable for
Common Stock or other securities or property of the Company will
be set forth in the related Prospectus Supplement. Such terms
shall include the conversion or exchange price (or manner of
calculation thereof), the exchange or conversion period,
provisions as to whether conversion or exchange is mandatory at
the option of the Holder or at the option of the Company, and
may include provisions pursuant to which the number of shares,
other securities or property of the Company to be received by
the Holders of Debt Securities would be calculated. The
conversion or exchange price of any Debt Securities of any
series that is convertible into Common Stock, Preferred Stock or
Depositary Shares of the Company may be adjusted for any stock
dividends, stock splits, reclassification, combinations or
similar transactions, as set forth in the applicable Prospectus
Supplement.
</FONT>

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Certain provisions of the Indenture relating to
the subordination of the Subordinated Debt Securities are
summarized below. The extent to which a particular series of
Subordinated Debt Securities is subordinated to other
indebtedness of the Company will be set forth in the Prospectus
Supplement for that series and the Indenture may be modified by
a supplemental indenture to reflect such subordination
provisions. The particular terms of subordination of an
</FONT>

<P align="center"><FONT size="2">18
</FONT>

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<DIV align="left">
<FONT size="2">issue of Subordinated Debt Securities may
supersede the general provisions of the Indenture summarized
below.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Upon any distribution to creditors of the Company
in a liquidation, dissolution or reorganization, payment of the
principal of, premium, if any, and interest, if any, on the
Subordinated Debt Securities will be subordinated to the extent
provided in the Indenture in right of payment to the prior
payment in full of all Senior Indebtedness, but the obligation
of the Company to make payment of the principal of and premium,
if any, and interest, if any, on the Subordinated Debt
Securities will not otherwise be affected. Except as provided in
a Prospectus Supplement and the related supplemental indenture,
if any, no payment of principal or interest may be made on the
Subordinated Debt Securities at any time if a default on Senior
Indebtedness exists that permits the holders of such Senior
Indebtedness to accelerate its maturity and the default is the
subject of judicial proceedings or the Company has received
notice of such default. Such supplemental indenture may also
provide that Subordinated Debt Securities issued thereunder are
subordinated and junior in right of payment to the prior payment
in full of future senior subordinated debt securities, if any.
After all Senior Indebtedness is paid in full and until the
Subordinated Debt Securities are paid in full, Holders of the
Subordinated Debt Securities will be subrogated to the rights of
holders of Senior Indebtedness to the extent that distributions
otherwise payable to such Holders have been applied to the
payment of Senior Indebtedness. By reason of such subordination,
in the event of any distribution of assets upon insolvency,
certain general creditors of the Company may recover more,
ratably, than holders of Subordinated Debt Securities.
</FONT>

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Indenture provides that, except during the
continuance of an Event of Default, the Trustee will perform
only such duties as are specifically set forth in the Indenture.
During the existence of an Event of Default, the Trustee will
exercise such rights and powers vested in it under the Indenture
and use the same degree of care and skill in its exercise as a
prudent person would exercise under the circumstances in the
conduct of such person&#146;s own affairs.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Indenture and the provisions of the Trust
Indenture Act incorporated by reference therein contain
limitations on the rights of the Trustee, should it become a
creditor of the Company, to obtain payment of claims in certain
cases or to realize on certain property received by it in
respect of any such claim as security or otherwise. The Trustee
is permitted to engage in other transactions with the Company or
any Affiliate; <I>provided, however</I>, that if such Trustee
acquires any conflicting interest (as defined in the Indenture
or in the Trust Indenture Act), it must eliminate such conflict
or resign.
</FONT>

<P align="left">
<B><FONT size="2">No Personal Liability of Officers, Directors,
Employees or Stockholders</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">No director, officer, employee or stockholder, as
such, of the Company or any of its affiliates will have any
personal liability in respect of the obligations of the Company
under the Indenture or the Debt Securities by reason of his, her
or its status as such.
</FONT>

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Indenture is, and the Debt Securities offered
hereby will be, governed by and construed in accordance with the
laws of the State of New York.
</FONT>

<DIV align="left">
<A name='120'></A>
</DIV>

<!-- link1 "DESCRIPTION OF PREFERRED STOCK" -->

<P align="center">
<B><FONT size="2">DESCRIPTION OF PREFERRED STOCK</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">The following description of the terms of the
Preferred Stock sets forth certain general terms and provisions
of any series of Preferred Stock to which any Prospectus
Supplement may relate. Particular terms of the Preferred Stock
offered by any Prospectus Supplement and the</FONT></I>

<P align="center"><FONT size="2">19
</FONT>
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<DIV align="left">
<I><FONT size="2">extent, if any, to which such general
provisions may apply to any series of Preferred Stock so offered
will be described in the Prospectus Supplement relating to such
Preferred Stock. This description does not purport to be
complete and is subject to and qualified in its entirety by
reference to the provisions of the Second Restated Certificate
of Incorporation of the Company as amended (the
&#147;Charter&#148;), and the Certificate of Designation (the
&#147;Certificate of Designation&#148;) relating to a particular
series of Preferred Stock which will be in the form filed or
incorporated by reference in the Registration Statement of which
this Prospectus is a part at or prior to the time of the
issuance of such series of Preferred Stock.</FONT></I>
</DIV>

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under the Charter and the Restated By-laws of the
Company (the &#147;By-laws&#148;), which are filed as exhibits
to the Registration Statement of which this Prospectus is a
part, the board of directors of the Company (the &#147;Board of
Directors&#148;) is authorized without further shareholder
action to adopt resolutions providing for the issuance of up to
50,000,000 shares of Preferred Stock, in one or more series, and
to fix by resolution any of the powers, designations,
preferences and relative dividend participation, option or other
rights thereof, including dividend rights, conversion rights,
voting rights, redemption terms and liquidation preferences, and
the number of shares constituting each such series. Preferred
Stock, upon issuance against full payment of the purchase price
therefor, will be fully paid and nonassessable. As of the date
of this Prospectus, the Company had no shares of Preferred Stock
outstanding.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Prospectus Supplement relating to a
particular series of Preferred Stock offered will describe the
specific terms, including, where applicable: (i)&nbsp;the title,
designation, number of shares and stated value of such Preferred
Stock; (ii)&nbsp;the price at which such Preferred Stock will be
issued; (iii)&nbsp;the dividend rates, if any (or method of
calculation), whether such rate is fixed or variable or both,
and the dates on which dividends will be payable, whether such
dividends will be cumulative or noncumulative and, if
cumulative, the dates from which dividends shall commence to
cumulate; (iv)&nbsp;the dates on which the Preferred Stock will
be subject to redemption and the applicable redemption prices;
(v)&nbsp;any redemption or sinking fund provisions;
(vi)&nbsp;the convertibility or exchangeability of such
Preferred Stock; (vii)&nbsp;if other than United States dollars,
the currency or currencies (including composite currencies) in
which such Preferred Stock is denominated and/or in which
payments will or may be payable; (viii)&nbsp;the method by which
amounts in respect of such Preferred Stock may be calculated and
any commodities, currencies or indices, or the value, rate or
price relevant to such calculation; (ix)&nbsp;the place where
dividends and other payments on the Preferred Stock are payable
and the identity of the transfer agent, registrar and dividend
disbursement agent for the Preferred Stock; (x)&nbsp;any listing
of such Preferred Stock on any securities exchange; and
(xi)&nbsp;any additional dividend, liquidation, redemption,
sinking fund, voting and other rights, preferences, privileges,
limitations and restrictions.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The federal income tax consequences and special
considerations applicable to any such series of Preferred Stock
will be generally described in the Prospectus Supplement related
thereto.
</FONT>

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Unless otherwise specified in the Prospectus
Supplement relating to a particular series of Preferred Stock,
each series of Preferred Stock will rank pari passu as to
dividends and liquidation rights in all respects with each other
series of Preferred Stock.
</FONT>

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Holders of Preferred Stock of each series will be
entitled to receive cash dividends, when and as declared by the
Board of Directors out of assets of the Company legally
available for
</FONT>

<P align="center"><FONT size="2">20
</FONT>

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<DIV align="left">
<FONT size="2">payment, at such rates and on such dates as will
be set forth in the Prospectus Supplement relating to such
series of Preferred Stock. Each dividend will be payable to
holders of record as they appear on the stock books of the
Company on the record dates fixed by the Board of Directors or a
duly authorized committee thereof. Different series of the
Preferred Stock may be entitled to dividends at different rates
or based upon different methods of determination. Such rates may
be fixed or variable or both. Dividends on any series of the
Preferred Stock may be cumulative or noncumulative as provided
in the Prospectus Supplement relating thereto. Except as
provided in the related Prospectus Supplement, no series of
Preferred Stock will be entitled to participate in the
Company&#146;s earnings or assets.
</FONT>
</DIV>

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Unless otherwise stated in the related Prospectus
Supplement, in the event of any voluntary or involuntary
liquidation, dissolution or winding up of the Company, holders
of each series of Preferred Stock will be entitled to receive
out of assets of the Company available for distribution to
shareholders, before any distribution of assets is made to
holders of the Common Stock or any other class of stock ranking
junior to such series of Preferred Stock upon liquidation,
liquidating distributions in an amount set forth in the
Prospectus Supplement related to such series of Preferred Stock,
plus an amount equal to all accrued and unpaid dividends up to
the date fixed for distribution for the current dividend period
and, if such series of the Preferred Stock is cumulative, for
all dividend periods prior thereto, all as set forth in the
Prospectus Supplement with respect to such series of Preferred
Stock. If, upon any voluntary or involuntary liquidation,
dissolution or winding up of the Company, amounts payable with
respect to a series of Preferred Stock and any other shares of
capital stock of the Company ranking pari passu as to any
distribution with such series of Preferred Stock are not paid in
full, holders of such series of Preferred Stock and of such
other shares will share ratably in any such distribution of
assets of the Company in proportion to the full respective
preferential amounts to which they are entitled. After payment
in full of the liquidating distribution to which they are
entitled, holders of Preferred Stock will not be entitled to any
further participation in any distribution of assets by the
Company.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Neither the sale, conveyance, exchange or
transfer of all or substantially all of the property and assets
of the Company, the consolidation or merger of the Company with
or into any other corporation, nor the merger or consolidation
of any other corporation into or with the Company, will be
deemed to be a liquidation, dissolution or winding up of the
Company.
</FONT>

<P align="left">
<B><FONT size="2">Redemption and Sinking Fund</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The terms, if any, on which shares of a series of
Preferred Stock may be subject to optional or mandatory
redemption, in whole or in part, or may have the benefit of a
sinking fund, will be set forth in the Prospectus Supplement
relating to such series.
</FONT>

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Except as indicated below or in the applicable
Prospectus Supplement, or except as expressly required by
applicable law, holders of Preferred Stock issued pursuant to
this Prospectus and any related Prospectus Supplement will not
be entitled to vote.
</FONT>

<P align="left">
<B><FONT size="2">Conversion and Exchange Rights</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The terms, if any, on which shares of any series
of Preferred Stock are convertible or exchangeable will be set
forth in the Prospectus Supplement relating thereto. The
Prospectus Supplement will describe the securities or rights
into which such shares of Preferred Stock are convertible or
exchangeable (which may include other Preferred Stock, Debt
Securities, Depositary Shares, Common Stock or other securities
or rights of the Company (including rights
</FONT>

<P align="center"><FONT size="2">21
</FONT>

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<DIV align="left">
<FONT size="2">to receive payment in cash or securities based on
the value, rate or price of one or more specified commodities,
currencies or indices) or securities of other issuers or a
combination of the foregoing), and the terms and conditions upon
which such conversions or exchanges will be effected including
the initial conversion or exchange prices or rules, the
conversion or exchange period and any other related provisions.
Such terms may include provisions for conversion or exchange,
either mandatory, at the option of the holder, or at the option
of the Company, in which case the consideration to be received
by holders of such series of Preferred Stock would be calculated
as of a time and in the manner stated in such Prospectus
Supplement.
</FONT>
</DIV>

<P align="left">
<B><FONT size="2">Transfer Agent and Registrar</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The transfer agent, registrar and dividend
disbursement agent for each series of Preferred Stock will be
designated in the related Prospectus Supplement.
</FONT>

<DIV align="left">
<A name='121'></A>
</DIV>

<!-- link1 "DESCRIPTION OF DEPOSITARY SHARES" -->

<P align="center">
<B><FONT size="2">DESCRIPTION OF DEPOSITARY SHARES</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">The following description of the terms of the
Depository Shares sets forth certain general terms and
provisions of Depositary Shares to which any Prospectus
Supplement may relate. Particular terms of the Depositary Shares
offered by any Prospectus Supplement, and the related Deposit
Agreement and Depositary Receipt, and the extent, if any, to
which such general provisions may apply to such Deposit
Agreement, Depositary Shares and Depositary Receipt, will be
described in the Prospectus Supplement relating to such
Depositary Shares. This description does not purport to be
complete and is subject to, and qualified in its entirety by
reference to, the provisions of the applicable Deposit
Agreement, which will be in the form filed or incorporated by
reference in the Registration Statement of which this Prospectus
is a part at or prior to the time of the issuance of such
Depositary Shares, as well as the Charter or any Certificate of
Designation describing the applicable series of Preferred Stock.
<BR>
</FONT></I>

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company may, at its option, elect to offer
fractional interests in shares of a series of Preferred Stock as
Depositary Shares, rather than full shares of Preferred Stock.
In such event, receipts (&#147;Depositary Receipts&#148;) for
such Depositary Shares will be issued by the Company, each of
which will represent a fraction of a share of a particular class
or series of Preferred Stock, as described in the related
Prospectus Supplement.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Shares of any series of Preferred Stock
represented by Depositary Shares will be deposited under a
separate deposit agreement (a &#147;Deposit Agreement&#148;),
between the Company and a bank or trust company selected by the
Company having its principal office in the United States and
having a combined capital and surplus of at least
$50&nbsp;million (a &#147;Preferred Stock Depositary&#148;). The
Prospectus Supplement relating to a series of Depositary Shares
will set forth the name and address of the Depositary with
respect to such Depositary Shares. Subject to the terms of the
Deposit Agreement, each owner of a Depositary Share will be
entitled, in proportion to the applicable fraction of a share of
Preferred Stock represented by such Depositary Share, to all of
the rights, preferences and privileges of the Preferred Stock
represented thereby (including dividend, voting, conversion,
exchange, redemption, and liquidation rights, if any).
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Depositary Shares will be evidenced by Depositary
Receipts issued pursuant to the applicable Deposit Agreement.
Depositary Receipts will be distributed to those persons
purchasing the fractional interests in shares of Preferred Stock
as described in the applicable Prospectus Supplement.
</FONT>

<P align="center"><FONT size="2">22
</FONT>
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<P align="left">
<B><FONT size="2">Dividends and Other Distributions</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Preferred Stock Depositary will distribute
all cash dividends or other cash distributions received in
respect of a series of Preferred Stock to the record holders of
Depositary Receipts relating to such Preferred Stock in
proportion, insofar as possible, to the number of such
Depositary Receipts owned by such holders on the relevant record
date (subject to certain obligations of holders to file proofs,
certificates and other information and to pay certain charges
and expenses to such Preferred Stock Depositary). The Preferred
Stock Depositary will distribute only such amount, however, as
can be distributed without attributing to any holder of
Depositary Shares a fraction of one cent, and the balance not so
distributed will be held by the Preferred Stock Depositary and
added to and treated as part of the next sum received by such
Preferred Stock Depositary for distribution to record holders of
Depositary Shares then outstanding.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In the event of a distribution other than in
cash, the Preferred Stock Depositary will distribute property
received by it to the record holders of Depositary Shares
entitled thereto, in proportion to the number of such Depositary
Shares owned by such holders, unless the Preferred Stock
Depositary determines that it is not feasible to make such
distribution, in which case the Preferred Stock Depositary may,
with the approval of the Company, adopt such method as it deems
equitable and practicable to effect such distribution, including
the public or private sale of such property and distribution of
the net proceeds from such sale to such holders.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The amount so distributed to record holders of
Depositary Receipts in any of the foregoing cases will be
reduced by any amount required to be withheld by the Company or
the Preferred Stock Depositary on account of taxes.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Deposit Agreement will also contain
provisions relating to the manner in which any subscription or
similar rights offered by the Company to holders of the
Preferred Stock will be made available to holders of Depositary
Shares.
</FONT>

<P align="left">
<B><FONT size="2">Redemption of Depositary Shares</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If a series of Preferred Stock represented by
Depositary Shares is subject to redemption, the Depositary
Shares will be redeemed from the proceeds received by the
Preferred Stock Depositary resulting from redemption, in whole
or in part, of such class or series of Preferred Stock held by
the Preferred Stock Depositary. The redemption price per
Depositary Share will be equal to the applicable fraction of the
redemption price and other amounts per share, if any, payable in
respect of such class or series of Preferred Stock. Whenever the
Company redeems Preferred Stock held by the Preferred Stock
Depositary, the Preferred Stock Depositary will redeem as of the
same redemption date the number of Depositary Shares
representing shares of Preferred Stock so redeemed. If fewer
than all of the Depositary Shares are to be redeemed, the
Depositary Shares to be redeemed will be selected by lot or pro
rata as may be determined to be equitable by the Preferred Stock
Depositary.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">After the date fixed for redemption, the
Depositary Shares so called for redemption will no longer be
deemed to be outstanding and all rights of the holders of the
Depositary Shares will cease, except the right to receive the
redemption price upon such redemption. Any funds deposited by
the Company with the Preferred Stock Depositary for any
Depositary Shares which the holders thereof fail to redeem shall
be returned to the Company after a period of two years from the
date such funds are so deposited.
</FONT>

<P align="left">
<B><FONT size="2">Voting the Preferred Stock</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Upon receipt of notice of any meeting at which
the holders of a class or series of Preferred Stock are entitled
to vote, the Preferred Stock Depositary will mail the
information contained
</FONT>

<P align="center"><FONT size="2">23
</FONT>

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<DIV align="left">
<FONT size="2">in such notice of meeting to record holders of
the Depositary Receipts evidencing the Depositary Shares of such
class or series of Preferred Stock. Each record holder of such
Depositary Receipts on the record date (which will be the same
date as the record date for the related class or series of
Preferred Stock) will be entitled to instruct the Preferred
Stock Depositary as to the exercise of the voting rights
pertaining to the amount of Preferred Stock represented by such
holder&#146;s Depositary Shares. The Preferred Stock Depositary
will endeavor, insofar as practicable, to vote the number of
shares of Preferred Stock represented by such Depositary Shares
in accordance with such instructions, and the Company will agree
to take all reasonable action which may be deemed necessary by
the Preferred Stock Depositary in order to enable the Preferred
Stock Depositary to do so. The Preferred Stock Depositary will
abstain from voting the Preferred Stock to the extent it does
not receive specific instructions from the holder of Depositary
Shares representing such shares of Preferred Stock. The
Preferred Stock Depositary will not be responsible for any
failure to carry out any instruction to vote, or for the manner
or effect of any such vote made, as long as any such action or
non-action is taken in good faith and does not result from the
negligence or willful misconduct of the Preferred Stock
Depositary.
</FONT>
</DIV>

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In the event of the liquidation, dissolution or
winding up of the Company, whether voluntary or involuntary,
holders of each Depositary Receipt will be entitled to the
fraction of the liquidation preference accorded each share of
related Preferred Stock as set forth in the related Prospectus
Supplement.
</FONT>

<P align="left">
<B><FONT size="2">Conversion and Exchange of Preferred
Stock</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If any series of Preferred Stock underlying the
Depositary Shares is subject to provisions relating to its
conversion or exchange, as set forth in the applicable
Prospectus Supplement relating thereto, each record holder of
Depositary Receipts will have the right or obligation to convert
or exchange the Depositary Shares represented by such Depositary
Receipts pursuant to the terms thereof.
</FONT>

<P align="left">
<B><FONT size="2">Amendment and Termination of the Deposit
Agreement</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The form of Depositary Receipt evidencing the
Depositary Shares and any provision of the Deposit Agreement may
be amended at any time by agreement between the Company and the
Preferred Stock Depositary. However, amendments, if any, which
materially and adversely alter the rights of holders of
Depositary Receipts or that would be materially and adversely
inconsistent with the rights of holders of the underlying
Preferred Stock, will be ineffective unless such amendment has
been approved by holders of at least a majority of the
Depositary Shares then outstanding under such Deposit Agreement.
Every holder of outstanding Depositary Receipts at the time such
amendment, if any, becomes effective will be deemed, by
continuing to hold such Depositary Receipt, to consent to such
amendment and to be bound by the applicable Deposit Agreement as
amended thereby.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">A Deposit Agreement may be terminated by the
Company upon not less than 30&nbsp;days&#146; prior written
notice to the Preferred Stock Depositary if a majority of each
class or series of Preferred Stock subject to such Deposit
Agreement consents to such termination, whereupon the Preferred
Stock Depositary will deliver or make available to each holder
of Depositary Receipts, upon surrender of the Depositary
Receipts held by such holder, such number of whole or fractional
shares of Preferred Stock as are represented by the Depositary
Shares evidenced by such Depositary Receipts, together with any
other property held by the Preferred Stock Depositary with
respect to such Depositary Receipts. Additionally, a Deposit
Agreement will automatically terminate if (i)&nbsp;all
outstanding Depositary Shares related thereto have been
redeemed, (ii)&nbsp;there has been a final distribution in
respect of the Preferred Stock underlying
</FONT>

<P align="center"><FONT size="2">24
</FONT>

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<DIV align="left">
<FONT size="2">such Depositary Shares in connection with any
liquidation, dissolution or winding up of the Company and such
distribution has been distributed to the holders of the related
Depositary Receipts or (iii)&nbsp;each share of related
Preferred Stock has been converted into capital stock of the
Company not so represented by Depositary Shares.
</FONT>
</DIV>

<P align="left">
<B><FONT size="2">Charges of Depositary</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company will pay all transfer and other taxes
and governmental charges arising solely from the existence of
the depositary arrangements. The Company will pay the Preferred
Stock Depositary&#146;s fees and charges in connection with the
initial deposit of the Preferred Stock and initial issuance of
Depositary Receipts and any redemption or conversion of the
Preferred Stock. Holders of Depositary Receipts will pay all
other transfer and other taxes, governmental charges and fees
and charges of the Preferred Stock Depositary that are not
expressly provided for in the Deposit Agreement.
</FONT>

<P align="left">
<B><FONT size="2">Resignation and Removal of
Depositary</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">A Preferred Stock Depositary may resign at any
time by delivering to the Company notice of its election to do
so, and the Company may at any time remove any Preferred Stock
Depositary. Any such resignation or removal will take effect
upon the appointment of a successor Depositary and such
successor Depositary&#146;s acceptance of the appointment. Such
successor Depositary must be appointed within 60&nbsp;days after
delivery of the notice of resignation or removal and must be a
bank or trust company having its principal office in the United
States and having a combined capital and surplus of at least
$50.0 million.
</FONT>

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Preferred Stock Depositary will forward all
reports and communications from the Company which are delivered
to the Preferred Stock Depositary and which the Company is
required or otherwise determines to furnish to holders of the
Preferred Stock.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Neither any Preferred Stock Depositary nor the
Company will be liable if it is prevented or delayed by law or
any circumstance beyond its control in performing its
obligations under a Deposit Agreement. The obligations of the
Company and any Preferred Stock Depositary under a Deposit
Agreement will be limited to performing in good faith their
duties thereunder (in the case of any action or inaction in the
voting of a class or series of Preferred Stock represented by
the Depositary Shares), gross negligence or willful misconduct
excepted. The Company and any Preferred Stock Depositary will
not be obligated under the Deposit Agreement to prosecute or
defend any legal proceeding in respect of any Depositary Shares,
Depositary Receipts or shares of any Preferred Stock represented
thereby unless satisfactory indemnity is furnished. The Company
and the Preferred Stock Depositary may rely upon written advice
of counsel or accountants, or information provided by persons
presenting shares of Preferred Stock for deposit, holders of
Depositary Receipts or other persons believed to be competent to
give such information and on documents believed to be genuine
and to have been signed and presented by the proper party or
parties.
</FONT>

<DIV align="left">
<A name='122'></A>
</DIV>

<!-- link1 "DESCRIPTION OF COMMON STOCK" -->

<P align="center">
<B><FONT size="2">DESCRIPTION OF COMMON STOCK</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">The following description of the terms of the
Common Stock sets forth certain general provisions of the Common
Stock as contained in the Charter and By-laws and is qualified
in its entirety by reference to the Charter and
By-laws.</FONT></I>

<P align="center"><FONT size="2">25
</FONT>
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<P align="left">
<B><FONT size="2">General</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company is currently authorized to issue up
to of 600,000,000 shares of Common Stock. As of March&nbsp;31,
1999, there were approximately 395.7 million shares of Common
Stock outstanding. All outstanding shares of Common Stock are
fully paid and nonassessable. The Common Stock is listed on the
NYSE under the symbol &#147;BSX.&#148;
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Holders of Common Stock have no preemptive,
subscription, redemption or conversion rights and the Common
Stock is not subject to redemption. The rights, preferences and
privileges of holders of Common Stock are subject to, and may be
adversely affected by, the rights of holders of any series of
Preferred Stock, whether currently outstanding or designated and
issued in the future. See &#147;Description of Preferred
Stock.&#148;
</FONT>

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Subject to the preferences of holders of
Preferred Stock, holders of Common Stock are entitled to
dividends and other distributions when, as and if declared by
the Board of Directors out of funds legally available therefor
and shall share equally on a per share basis in all such
dividends and other distributions.
</FONT>

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Except as otherwise provided by law or by the
designation of the preferences, limitations and relative rights
of any series of Preferred Stock, the voting power of the
Company is held by holders of the Common Stock. Each holder of
Common Stock is entitled to one vote for each share held.
Holders of Common Stock are not entitled to cumulative voting
rights and, therefore, holders of a plurality of shares voting
in the election of directors may elect the entire class of the
Board of Directors standing for election at a shareholders&#146;
meeting at which a quorum is present. In that event, holders of
the remaining shares of Common Stock would not be able to elect
any director to the Board of Directors. The Company&#146;s
Charter requires that the Board of Directors be staggered,
consisting of three classes of directors which are as nearly
equal in number as possible.
</FONT>

<P align="left">
<B><FONT size="2">Liquidation and Dissolution</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Except as otherwise provided by the designation
of the preferences, limitations and relative rights of any
series of Preferred Stock, in the event of any liquidation,
dissolution, or winding up of the Company, whether voluntary or
involuntary, after payment has been made to holders of each
series of Preferred Stock of the full amount to which they are
entitled, holders of shares of Common Stock will be entitled to
share, ratably according to the number of shares of Common Stock
held by them, in all remaining assets available for distribution
to holders of the Common Stock.
</FONT>

<P align="left">
<B><FONT size="2">Certain Provisions of Delaware Law, the
Charter and the By-laws</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company is subject to the provisions of the
General Corporate Law of Delaware. Section&nbsp;203 of the
General Corporate Law of Delaware prohibits a publicly-held
Delaware corporation from engaging in a &#147;business
combination&#148; with an &#147;interested stockholder&#148; for
a period of three years after the date of the transaction in
which the person became an interested stockholder, unless the
business combinations are approved in a prescribed manner. A
&#147;business combination&#148; includes mergers, assets sales,
and other transactions resulting in a financial benefit to the
interested stockholder. Subject to certain exceptions, an
&#147;interested stockholder&#148; is a person who, together
with affiliates owns, or within three years did own, 15% or more
of the corporation&#146;s voting stock.
</FONT>

<P align="center"><FONT size="2">26
</FONT>

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As permitted by the General Corporation Law of
Delaware, the Company&#146;s Charter provides that Directors of
the Company will not be personally liable to the Company or its
stockholders for monetary damages for breach of fiduciary duty
as a Director, except in certain circumstances involving
wrongful acts, such as the breach of a directors duty of loyalty
or acts or omissions which involve intentional misconduct or a
knowing violation of law. The Company&#146;s Charter and By-laws
also contain provisions requiring the Company to indemnify the
Company Directors and officers to the fullest extent permitted
by the General Corporate Law of Delaware. In addition, the
Company has entered into indemnification agreements with each of
its Directors and executive officers. These agreements provide
rights of indemnification substantially similar to and in
certain respects broader than those provided by the Charter and
By-laws.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Certificate and the By-laws provide that the
Board of Directors be divided into three classes of Directors as
nearly equal in size as possible, with staggered three year
terms. The Charter provides that vacancies on the Board may only
be filled by a majority of the Board then in office and further
provides that Directors may only be removed by the affirmative
vote of holders of at least 80% of the voting power of all the
then outstanding shares of stock entitled to vote generally in
the election of Directors.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Charter provides that stockholder action can
only be taken at an annual or special meeting of stockholders
and that the business permitted to be conducted at any meeting
of stockholders is limited to the business brought before the
meeting by the Chairman of the Board or the President of the
Company or at the request of a majority of the members of the
Board. The Charter and By-laws provide that special meetings of
stockholders can be called only by the Chairman of the Board of
the Company or pursuant to a resolution approved by a majority
of the total number of Directors which the Company would have if
there were no vacancies on the Board. Stockholders are not
permitted to call a special meeting or to require that the Board
call a special meeting of stockholders.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Charter prohibits the Company, with certain
exceptions, from purchasing any shares of the Company&#146;s
stock from any person, entity or group that beneficially owns 5%
or more of the Company&#146;s voting stock at an above-market
price, unless a majority of the Company&#146;s disinterested
stockholders approve the transaction. In addition, the Charter
empowers the Board, when considering a tender offer or merger or
acquisition proposal, to take into account factors in addition
to potential economic benefits to stockholders and to consider
constituencies other than stockholders.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The General Corporation Law of Delaware provides
generally that the vote of a majority of shares entitled to vote
is required to act on most matters and to amend a
corporation&#146;s certificate of incorporation. The Certificate
and the By-laws contain provisions requiring the affirmative
vote of the holders of at least 80% of the voting stock, voting
together as a single class, to amend certain provisions of the
Charter and the By-laws, including certain of the foregoing
provisions. Such a supermajority vote would be in addition to
any separate class vote that might in the future be required
with respect to shares of Preferred Stock then outstanding.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The foregoing and other provisions of Delaware
law and the Company&#146;s Charter and By-laws could make more
difficult the acquisition of the Company by means of a tender
offer, a proxy contest or otherwise. These provisions may have
the effect of delaying, deferring or preventing a change in
control of the Company, may discourage bids for the Common Stock
at a premium over the market price of the Common Stock and may
adversely affect the market price of the Common Stock.
</FONT>

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The transfer agent and registrar for the Common
Stock is Boston Equiserve.
</FONT>

<P align="center"><FONT size="2">27
</FONT>

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<DIV align="left">
<A name='123'></A>
</DIV>

<!-- link1 "DESCRIPTION OF WARRANTS" -->

<P align="center">
<B><FONT size="2">DESCRIPTION OF WARRANTS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">The following description of the terms of the
Warrants sets forth certain general terms and provisions of the
Warrants to which any Prospectus Supplement may relate.
Particular terms of the Warrants offered by any Prospectus
Supplement and the extent, if any, to which such general
provisions may apply to the Warrants so offered will be
described in the Prospectus Supplement relating to such
Warrants. This description does not purport to be complete and
is subject to, and qualified in its entirety by reference to,
the provisions of the Warrant Agreement relating to each series
of Warrants, which will be in the form filed or incorporated by
reference in the Registration Statement at or prior to the time
of the issuance of such series of Warrants. <BR>
</FONT></I>

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company may issue Warrants to purchase Debt
Securities, Preferred Stock, Depositary Shares, Common Stock or
any combination thereof (collectively, the &#147;Underlying
Warrant Securities&#148;). Such Warrants may be issued
independently or together with any such series of Underlying
Warrant Securities and may be attached or separate from such
Underlying Warrant Securities. Each series of Warrants will be
issued under a separate warrant agreement (each, a &#147;Warrant
Agreement&#148;) to be entered into between the Company and a
warrant agent (&#147;Warrant Agent&#148;). The Warrant Agent
will act solely as an agent of the Company in connection with
the Warrants of such series and will not assume any obligation
or relationship of agency for or with holders or beneficial
owners of Warrants.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">An applicable Prospectus Supplement will describe
the terms of any series of Warrants in respect of which this
Prospectus is being delivered, including the following:
(i)&nbsp;the title of such Warrants; (ii)&nbsp;the aggregate
number of such Warrants; (iii)&nbsp;the price or prices at which
such Warrants will be issued; (iv)&nbsp;the currency or
currencies, including composite currencies, in which the price
of such Warrants may be payable; (v)&nbsp;the designation and
terms of the Underlying Warrant Securities purchasable upon
exercise of such Warrants and the number of such Underlying
Warrant Securities issuable upon exercise of such Warrants;
(vi)&nbsp;the price at which and the currency or currencies,
including composite currencies, in which the Underlying Warrant
Securities purchasable upon exercise of such Warrants may be
purchased; (vii)&nbsp;the date on which the right to exercise
such Warrants shall commence and the date on which such right
will expire; (viii)&nbsp;whether such Warrants will be issued in
registered form or bearer form; (ix)&nbsp;if applicable, the
minimum or maximum amount of such Warrants which may be
exercised at any one time; (x)&nbsp;if applicable, the
designation and terms of the Underlying Warrant Securities with
which such Warrants are issued and the number of such Warrants
issued with each such Underlying Warrant Security; (xi)&nbsp;if
applicable, the date on and after which such Warrants and the
related Underlying Warrant Securities will be separately
transferable; (xii)&nbsp;information with respect to book-entry
procedures, if any; (xiii)&nbsp;if applicable, a discussion of
certain U.S. federal income tax considerations; and
(xiv)&nbsp;any other terms of such Warrants, including terms,
procedures and limitations relating to the exchange and exercise
of such Warrants.
</FONT>

<P align="left">
<B><FONT size="2">Amendments and Supplements to Warrant
Agreement</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Warrant Agreement for a series of Warrants
may be amended or supplemented without the consent of the
holders of the Warrants issued thereunder to effect changes that
are not inconsistent with the provisions of the Warrants and
that do not adversely affect the interests of the holders of the
Warrants.
</FONT>

<P align="center"><FONT size="2">28
</FONT>

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<DIV align="left">
<A name='124'></A>
</DIV>

<!-- link1 "DESCRIPTION OF STOCK PURCHASE CONTRACTS AND STOCK PURCHASE UNITS" -->

<P align="center">
<B><FONT size="2">DESCRIPTION OF STOCK PURCHASE
CONTRACTS</FONT></B>

<DIV align="center">
<B><FONT size="2">AND STOCK PURCHASE UNITS</FONT></B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">The following description of the terms of the
Stock Purchase Contracts and Stock Purchase Units sets forth
certain general terms and provisions of the Stock Purchase
Contracts and/or Stock Purchase Units to which any Prospectus
Supplement may relate. Particular terms of the Stock Purchase
Contracts and/or Stock Purchase Units offered by any Prospectus
Supplement and the extent, if any, to which such general
provisions may apply to the Stock Purchase Contracts and/or
Stock Purchase Units so offered will be described in the
Prospectus Supplement relating to such Stock Purchase Contracts
and/or Stock Purchase Units. <BR>
</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company may issue Stock Purchase Contracts,
including contracts obligating holders to purchase from the
Company, and the Company to sell to holders, a specified number
of shares of Common Stock, Preferred Stock or Depositary Shares
at a future date. The consideration per share of Common Stock,
Preferred Stock or Depositary Shares may be fixed at the time
that the Stock Purchase Contracts are issued or may be
determined by reference to a specific formula set forth in the
Stock Purchase Contracts. Any such formula may include
anti-dilution provisions to adjust the number of shares issuable
pursuant to such Stock Purchase Contract upon the occurrence of
certain events. The Stock Purchase Contracts may be issued
separately or as a part of units (&#147;Stock Purchase
Units&#148;), consisting of a Stock Purchase Contract and Debt
Securities, Trust Preferred Securities or debt obligations of
third parties, including U.S. Treasury securities, in each case
securing holders&#146; obligations to purchase Common Stock,
Preferred Stock or Depositary Shares under the Stock Purchase
Contracts. The Stock Purchase Contracts may require the Company
to make periodic payments to holders of the Stock Purchase
Units, or vice versa, and such payments may be unsecured or
prefunded. The Stock Purchase Contracts may require holders to
secure their obligations thereunder in a specified manner.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Each applicable Prospectus Supplement will
describe the terms of any Stock Purchase Contracts or Stock
Purchase Units. The description in the Prospectus Supplement
will not purport to be complete and will be qualified in its
entirety by reference to the Stock Purchase Contracts, and, if
applicable, collateral arrangements and depositary arrangements,
relating to such Stock Purchase Contracts or Stock Purchase
Units.
</FONT>

<DIV align="left">
<A name='125'></A>
</DIV>

<!-- link1 "DESCRIPTION OF TRUST PREFERRED SECURITIES" -->

<P align="center">
<B><FONT size="2">DESCRIPTION OF TRUST PREFERRED
SECURITIES</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">The following description of the terms of the
Trust Preferred Securities sets forth certain general terms and
provisions of the Trust Preferred Securities to which any
Prospectus Supplement may relate. Particular terms of the Trust
Preferred Securities offered by any Prospectus Supplement and
the extent, if any, to which such general terms and provisions
may apply to the Trust Preferred Securities so offered will be
described in the Prospectus Supplement relating to such Trust
Preferred Securities. <BR>
</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Each Trust may issue, from time to time, one or
more series of Trust Preferred Securities having terms described
in the Prospectus Supplement relating thereto. The Declaration
authorizes the Regular Trustees of each Trust to issue one or
more series of Trust Preferred Securities on behalf of the
respective Trust. Each Declaration will be qualified as an
indenture under the Trust Indenture Act. The Institutional
Trustee for each Trust, an independent trustee, will act as
indenture trustee for the Trust Preferred Securities to be
issued by such Trust for purposes of compliance with the Trust
Indenture Act.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Trust Preferred Securities will have such
terms, including with respect to distributions, redemption,
voting, liquidation rights and such other preferred, deferred or
other special rights or such restrictions as shall established
by the Regular Trustees of the applicable Trust in accordance
with the Declaration of such Trust or as shall be set forth in
such Declaration or made part of such Declaration by the Trust
Indenture Act.
</FONT>

<P align="center"><FONT size="2">29
</FONT>
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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Reference is made to the Prospectus Supplement
relating to the Trust Preferred Securities of the applicable
Trust for specific terms of such Trust Preferred Securities,
including (i)&nbsp;the distinctive designation of such Trust
Preferred Securities; (ii)&nbsp;the aggregate number of Trust
Preferred Securities to be issued by such Trust; (iii)&nbsp;the
annual distribution rate (or method of determining such rate)
for such Trust Preferred Securities and the date or dates upon
which such distributions will be payable; <I>provided,
however</I>, that distributions on the Trust Preferred
Securities shall, subject to any deferral provisions, and any
provisions for payment of defaulted distributions, be payable on
a periodic basis to holders of Trust Preferred Securities as of
a record date in each period during which Trust Preferred
Securities are outstanding; (iv)&nbsp;any right of such Trust to
defer periodic distributions on such Trust Preferred Securities
as a result of any interest deferral right exercised by the
Company on the Subordinated Debt Securities held by such Trust;
(v)&nbsp;whether distributions on such Trust Preferred
Securities will be cumulative, and, in the case of Trust
Preferred Securities having such cumulative distribution rights,
the date or dates or the method of determining the date or dates
from which distributions on such Trust Preferred Securities will
be cumulative; (vi)&nbsp;the amount or amounts which will be
paid out of the assets of such Trust to holders of Trust
Preferred Securities upon voluntary or involuntary dissolution,
winding-up or termination of such Trust; (vii)&nbsp;the
obligation or option, if any, of such Trust to purchase or
redeem Trust Preferred Securities and the price or prices at
which, the period or periods within which, and the terms and
conditions upon which, such Trust Preferred Securities will be
purchased or redeemed, in whole or in part, pursuant to such
obligation or option; (viii)&nbsp;the voting rights, if any, of
such Trust Preferred Securities in addition to those required by
law, including the number of votes per Trust Preferred Security
and any requirement for the approval by holders of such Trust
Preferred Securities as a condition to specified action or
amendments to the applicable Declaration; (ix)&nbsp;the terms
and conditions, if any, upon which the Subordinated Debt
Securities may be distributed to holders of Trust Preferred
Securities; (x)&nbsp;if applicable, any securities exchange upon
which such Trust Preferred Securities shall be listed;
(xi)&nbsp;whether such Trust Preferred Securities are
convertible or exchangeable, and if so, the securities or rights
into which such Trust Preferred Securities are convertible or
exchangeable, and the terms and conditions upon which such
conversions or exchanges will be effected; (xii)&nbsp;the method
by which amounts payable in respect of such Trust Preferred
Securities may be calculated and any commodities, currencies,
currency units or composite currencies, or indices, or value,
rate or price, relevant to such calculation; and (xiii)&nbsp;any
other relevant rights, preferences, privileges, limitations or
restrictions of such Trust Preferred Securities not inconsistent
with the applicable Declaration or with applicable law.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">All Trust Preferred Securities offered will be
guaranteed by the Company to the extent set forth below under
&#147;Description of Trust Guarantee.&#148; The Trust Guarantees
of the Company, when taken together with the Company&#146;s
obligations under the Subordinated Debt Securities and the
relevant supplemental indenture, and its obligations under each
Declaration, including the Company&#146;s obligations to pay
costs, expenses, debts and liabilities of each Trust (other than
with respect to the Trust Securities), will provide a full and
unconditional guarantee, on a subordinated basis, of amounts due
on the Trust Preferred Securities. The payment terms of the
Trust Preferred Securities issued by a Trust will be the same as
the Subordinated Debt Securities issued to such Trust by the
Company. The Prospectus Supplement relating to any offering of
Trust Preferred Securities will describe certain U.S. federal
income tax considerations applicable thereto.
</FONT>

<P align="left">
<B><FONT size="2">Trust Common Securities</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In connection with the issuance of Trust
Preferred Securities, a Trust will issue Trust Common
Securities. Each Declaration authorizes the Regular Trustees to
issue on behalf of a Trust one or more series of Trust Common
Securities having such terms, including with respect to
distributions, redemption, voting, liquidation rights or other
restrictions as shall be
</FONT>

<P align="center"><FONT size="2">30
</FONT>

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<DIV align="left">
<FONT size="2">established by such Regular Trustees in
accordance with such Declaration or as shall otherwise be set
forth therein. The terms of Trust Common Securities of a Trust
will be substantially identical to the terms of the related
Trust Preferred Securities of such Trust, and such Trust Common
Securities will rank pari passu, and payments will be made
thereon pro rata, with such Trust Preferred Securities except
that, upon an event of default under its Declaration, the rights
of holders of such Trust Common Securities to payment in respect
of distributions and payments upon liquidation, redemption and
otherwise will be subordinated to the rights of holders of such
Trust Preferred Securities. Except in certain limited
circumstances, Trust Common Securities will also carry the right
to vote to appoint, remove or replace any of the Capital
Trustees of the applicable Trust. The Company will own directly
or indirectly all of the Trust Common Securities of each of the
Trusts.
</FONT>
</DIV>

<DIV align="left">
<A name='126'></A>
</DIV>

<!-- link1 "DESCRIPTION OF TRUST GUARANTEE" -->

<P align="center">
<B><FONT size="2">DESCRIPTION OF TRUST GUARANTEE</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">The following description of the terms of the
Trust Guarantees which will be executed and delivered by the
Company for the benefit of holders from time to time of Trust
Preferred Securities sets forth certain general terms and
provisions of the Trust Guarantees to which any Prospectus
Supplement may relate. This description does not purport to be
complete and is subject to, and qualified in its entirety by
reference to all of the provisions in each Trust Guarantee,
which will be in the form filed with or incorporated by
reference in the Registration Statement of which this Prospectus
is a part at or prior to the time of issuance of Trust Preferred
Securities, and those made part of the Trust Guarantee by the
Trust Indenture Act, as in effect on the date of such Trust
Guarantee, and to such Trust Preferred Securities. <BR>
</FONT></I>

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Each Trust Guarantee will be qualified as an
indenture under the Trust Indenture Act. Chase Manhattan Bank,
an independent trustee, will act as indenture trustee under each
Trust Guarantee (the &#147;Guarantee Trustee&#148;) for the
purposes of compliance with the provisions of the Trust
Indenture Act. Pursuant to each Trust Guarantee, unless
otherwise specified in the applicable Prospectus Supplement, the
Company will agree, to the extent set forth therein, to pay in
full, on a subordinated basis, to holders of Trust Preferred
Securities, the Trust Guarantee Payments (as defined herein)
(except to the extent paid by the applicable Trust), as and when
due, regardless of any defense, right of set-off or counterclaim
which such Trust may have or assert. The following payments or
distributions with respect to Trust Preferred Securities, to the
extent not paid by or on behalf of the applicable Trust (the
&#147;Guarantee Payments&#148;), will be subject to a Trust
Guarantee (without duplication): (i)&nbsp;any accrued and unpaid
distributions which are required to be paid on Trust Preferred
Securities, to the extent the applicable Trust has funds
available therefor; (ii)&nbsp;with respect to any Trust
Preferred Securities called for redemption by a Trust, the
redemption price (the &#147;Redemption Price&#148;) and all
accrued and unpaid distributions to the date of redemption, to
the extent such Trust has funds available therefor and
(iii)&nbsp;upon a voluntary or involuntary dissolution,
winding-up or termination of a Trust (other than in connection
with the distribution of Subordinated Debt Securities to holders
of Trust Preferred Securities or the redemption of all of the
Trust Preferred Securities), the lesser of (a)&nbsp;the
aggregate of the liquidation amount and all accrued and unpaid
distributions on the Trust Preferred Securities to the date of
payment, to the extent such Trust has funds available therefor,
and (b)&nbsp;the amount of assets of such Trust remaining
available for distribution to holders of Trust Preferred
Securities in liquidation of such Trust. The Company&#146;s
obligation to make a Guarantee Payment may be satisfied by
direct payment of the required amounts by the Company to holders
of Trust Preferred Securities or by causing the applicable Trust
to pay such amounts to such holders.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Trust Guarantees will not apply to any
payment of distributions except to the extent a Trust has funds
available therefor. If the Company does not make interest or
principal
</FONT>

<P align="center"><FONT size="2">31
</FONT>
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<DIV align="left">
<FONT size="2">payments on the Subordinated Debt Securities
purchased by a Trust, such Trust will not have funds available
for, and will not pay, distributions on Trust Preferred
Securities.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company has also agreed separately to
guarantee the obligations of each Trust with respect to Trust
Common Securities (the &#147;Common Securities Guarantee&#148;)
to the same extent as a Trust Guarantee, except that upon an
Event of Default under a Declaration, holders of Trust Preferred
Securities shall have priority over holders of Trust Common
Securities with respect to distributions and payments on
liquidation, redemption or otherwise.
</FONT>

<P align="left">
<B><FONT size="2">Certain Covenants of the Company</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Unless otherwise specified in the applicable
Prospectus Supplement, in the applicable Trust Guarantee, the
Company will covenant that, so long as any applicable Trust
Preferred Securities remain outstanding, if there shall have
occurred any event that would constitute an event of default
under such Trust Guarantee or Declaration, then (a)&nbsp;the
Company will not declare or pay any dividend on, make any
distributions with respect to, or redeem, purchase, acquire or
make a liquidation payment with respect to, any of its capital
stock (other than (i)&nbsp;purchases or acquisitions of capital
stock of the Company in satisfaction of the Company&#146;s
obligations under any employee benefit plans, systematic stock
repurchase program, or in satisfaction of its obligations
pursuant to any contract or security outstanding on the date of
such event requiring the Company to purchase its capital stock,
(ii)&nbsp;as a result of a reclassification of the
Company&#146;s capital stock or the exchange or conversion of
one class or series of the Company&#146;s capital stock for
another class or series of the Company&#146;s capital stock,
(iii)&nbsp;the purchase of fractional interests in shares of the
Company&#146;s capital stock pursuant to the conversion or
exchange provisions of such capital stock or the security being
so converted or exchanged, (iv)&nbsp;dividends or distributions
in capital stock of the Company (or rights to acquire capital
stock) or repurchases or redemptions of capital stock solely
from the issuance or exchange of capital stock, and
(v)&nbsp;redemptions or repurchases of any rights outstanding
under a shareholder rights plan), (b)&nbsp;the Company will not
make any payment of interest, principal or premium, if any, on
or repay, repurchase or redeem any of its debt securities which
rank junior to the Subordinated Debt Securities and (c)&nbsp;the
Company will not make any guarantee payments with respect to the
foregoing (other than payments pursuant to a Trust Guarantee or
a Common Securities Guarantee).
</FONT>

<P align="left">
<B><FONT size="2">Modification of the Trust Guarantee;
Assignment</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Except with respect to any changes that do not
adversely affect the rights of holders of Trust Preferred
Securities (in which case no consent will be required), a Trust
Guarantee may be amended only with the prior approval of holders
of not less than a majority in liquidation amount of the
outstanding Trust Preferred Securities issued by the applicable
Trust. The manner of obtaining any such approval of holders of
the Trust Preferred Securities will be set forth in the
accompanying Prospectus Supplement. All guarantees and
agreements contained in the Trust Guarantee will bind the
successors, assigns, receivers, trustees and representatives of
the Company and will inure to the benefit of holders of the
applicable Trust Preferred Securities then outstanding.
</FONT>

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">A Trust Guarantee will terminate (a)&nbsp;upon
full payment of the Redemption Price of all applicable Trust
Preferred Securities then outstanding, (b)&nbsp;upon
distribution of the Subordinated Debt Securities held by such
Trust to the applicable holders of Trust Preferred Securities or
(c)&nbsp;upon full payment of the amounts payable in accordance
with the Declaration upon liquidation of a Trust. A Trust
Guarantee will continue to be effective or will be reinstated,
as the case may be, if at any time any holder of Trust Preferred
Securities must restore payment of any sums paid to it under
Trust Preferred Securities or a Trust Guarantee.
</FONT>

<P align="center"><FONT size="2">32
</FONT>

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<P align="left">
<B><FONT size="2">Events of Default</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">An event of default under a Trust Guarantee will
occur upon the failure of the Company to perform any of its
payment or other obligations thereunder.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Holders of a majority in liquidation amount of
the Trust Preferred Securities issued by a Trust will have the
right to direct the time, method and place of conducting any
proceeding for any remedy available to the applicable Guarantee
Trustee or to direct the exercise of any trust or power
conferred upon such Guarantee Trustee. If a Guarantee Trustee
fails to enforce a Trust Guarantee, any record holder of Trust
Preferred Securities may institute a legal proceeding directly
against the Company to enforce such holder&#146;s rights under
such Trust Guarantee without first instituting a legal
proceeding against the applicable Trust, such Guarantee Trustee
or any other person or entity. Notwithstanding the foregoing, if
the Company has failed to make a payment required under a Trust
Guarantee, a record holder of Trust Preferred Securities may
directly institute a proceeding against the Company for
enforcement of such Trust Guarantee for such payment to the
record holder of Trust Preferred Securities of the principal of
or interest on the applicable Debt Securities on or after the
respective due dates specified in the Debt Securities, and the
amount of the payment will be based on the holder&#146;s pro
rata share of the amount due and owing on all Trust Preferred
Securities issued by the applicable Trust. The Company waives
any right or remedy to require that any action be brought first
against each Trust or any other person or entity before
proceeding directly against the Company.
</FONT>

<P align="left">
<B><FONT size="2">Status of the Trust Guarantees</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Each of the Trust Guarantees will constitute an
unsecured obligation of the Company and will rank
(i)&nbsp;subordinate and junior in right of payment to all other
liabilities of the Company, except those liabilities of the
Company made pari passu or subordinate by their terms;
(ii)&nbsp;pari passu with most senior preferred or preference
stock now or hereafter issued by the Company and with any
guarantee now or hereafter entered by the Company in respect of
any preferred or preference stock of any affiliate of the
Company; and (iii)&nbsp;senior to the Common Stock of the
Company. The terms of the Trust Preferred Securities provide
that each holder of Trust Preferred Securities, by acceptance
thereof, agrees to the subordination provisions and other terms
of the Trust Guarantee relating thereto.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Each Trust Guarantee will constitute a guarantee
of payment and not of collection (that is, the guaranteed party
may institute a legal proceeding directly against the Company to
enforce its rights under the guarantee without instituting a
legal proceeding against any other person or entity).
</FONT>

<P align="left">
<B><FONT size="2">Information Concerning the Guarantee
Trustee</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Guarantee Trustee, prior to the occurrence of
a default with respect to a Trust Guarantee, undertakes to
perform only such duties as are specifically set forth in the
applicable Trust Guarantee and, after default, will exercise the
same degree of care as a prudent individual would exercise in
the conduct of his or her own affairs. Subject to such
provisions, the Guarantee Trustee is under no obligation to
exercise any of the powers vested in it by a Trust Guarantee at
the request of any holder of Trust Preferred Securities, unless
offered reasonable indemnity against the costs, expenses and
liabilities which might be incurred thereby. The foregoing will
not relieve the Guarantee Trustee, upon the occurrence of an
event of default under a Trust Guarantee, from exercising the
rights and powers vested in it by such Trust Guarantee.
</FONT>

<P align="center"><FONT size="2">33
</FONT>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Trust Guarantees will be governed by and
construed in accordance with the laws of the State of New York.
</FONT>

<DIV align="left">
<A name='127'></A>
</DIV>

<!-- link1 "PLAN OF DISTRIBUTION" -->

<P align="center">
<B><FONT size="2">PLAN OF DISTRIBUTION</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company may sell the Securities and the
Trusts may sell the Trust Preferred Securities being offered
hereby may be sold in any one or more of the following ways from
time to time: (i)&nbsp;through agents; (ii)&nbsp;to or through
underwriters; (iii)&nbsp;through dealers; and/or
(iv)&nbsp;directly by the Company or, in the case of Trust
Preferred Securities, by the Trusts, to purchasers.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The distribution of the Securities may be
effected from time to time in one or more transactions at a
fixed price or prices, which may be changed, at market prices
prevailing at the time of sale, at prices related to such
prevailing market prices or at negotiated prices.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Offers to purchase Securities may be solicited
directly by the Company or the Trusts or by agents designated by
the Company or the Trusts from time to time. Any such agent
involved in the offer or sale of the Securities in respect of
which this Prospectus is delivered will be named, and any
commissions payable by the Company or by any Trust to such agent
will be set forth, in the applicable Prospectus Supplement.
Unless otherwise indicated in such Prospectus Supplement, any
such agent will be acting on a reasonable best efforts basis for
the period of its appointment (ordinarily five business days or
less). Any such agent may be deemed to be an underwriter, as
that term is defined in the Securities Act, of the Securities so
offered and sold.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If Securities are sold by means of an
underwritten offering, the Company and, in the case of an
offering of Trust Preferred Securities, the applicable Trust,
will execute an underwriting agreement with an underwriter or
underwriters at the time an agreement for such sale is reached,
and the names of the specific managing underwriter or
underwriters, as well as any other underwriters, the respective
amounts underwritten and the terms of the transaction, including
commissions, discounts and any other compensation of the
underwriters and dealers, if any, will be set forth in the
applicable Prospectus Supplement which will be used by the
underwriters to make resales of the Securities in respect of
which this Prospectus is being delivered to the public. If
underwriters are utilized in the sale of any Securities in
respect of which this Prospectus is being delivered, such
Securities will be acquired by the underwriters for their own
account and may be resold from time to time in one or more
transactions, including negotiated transactions, at fixed public
offering prices or at varying prices determined by the
underwriters at the time of sale. Securities may be offered to
the public either through underwriting syndicates represented by
managing underwriters or directly by one or more underwriters.
If any underwriter or underwriters are utilized in the sale of
Securities, unless otherwise indicated in the applicable
Prospectus Supplement, the underwriting agreement will provide
that the obligations of the underwriters are subject to certain
conditions precedent and that the underwriters with respect to a
sale of such Securities will be obligated to purchase all such
Securities if any are purchased.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company or any of the Trusts, as applicable,
may grant to the underwriters options to purchase additional
Securities, to cover over-allotments, if any, at the initial
public offering price (with additional underwriting commissions
or discounts), as may be set forth in the Prospectus Supplement
relating thereto. If the Company or any such Trust, as
applicable, grants any over-allotment option, the terms of such
over-allotment option will be set forth in the Prospectus
Supplement for such Securities.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If a dealer is utilized in the sale of the
Securities in respect of which this Prospectus is delivered, the
Company or any of the Trusts, as applicable, will sell such
Securities to the dealer, as principal. The dealer may then
resell such Securities to the public at varying prices to be
determined by such dealer at the time of resale. Any such dealer
may be deemed to be an
</FONT>

<P align="center"><FONT size="2">34
</FONT>

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left">
<FONT size="2">underwriter, as such term is defined in the
Securities Act, of the Securities so offered and sold. The name
of the dealer and the terms of the transaction will be set forth
in the Prospectus Supplement relating thereto.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Offers to purchase Securities may be solicited
directly by the Company or any of the Trusts, as applicable, and
the sale thereof may be made by the Company or any of the Trusts
directly to institutional investors or others, who may be deemed
to be underwriters within the meaning of the Securities Act with
respect to any resale thereof. The terms of any such sales will
be described in the Prospectus Supplement relating thereto.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Securities may also be offered and sold, if so
indicated in the applicable Prospectus Supplement, in connection
with a remarketing upon their purchase, in accordance with a
redemption or repayment pursuant to their terms, or otherwise,
by one or more firms (&#147;remarketing firms&#148;), acting as
principals for their own accounts or as agents for the Company
or any of the Trusts, as applicable. Any remarketing firm will
be identified and the terms of its agreement, if any, with the
Company or any such Trust and its compensation will be described
in the applicable Prospectus Supplement. Remarketing firms may
be deemed to be underwriters, as that term is defined in the
Securities Act, in connection with the Securities remarketed
thereby.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If so indicated in the applicable Prospectus
Supplement, the Company or any of the Trusts, as applicable, may
authorize agents and underwriters to solicit offers by certain
institutions to purchase Securities from the Company or any such
Trust at the public offering price set forth in the applicable
Prospectus Supplement pursuant to delayed delivery contracts
providing for payment and delivery on the date or dates stated
in the applicable Prospectus Supplement. Such delayed delivery
contracts will be subject only to those conditions set forth in
the applicable Prospectus Supplement. A commission indicated in
the applicable Prospectus Supplement will be paid to
underwriters and agents soliciting purchases of Securities
pursuant to delayed delivery contracts accepted by the Company
or any of the Trusts, as applicable.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Agents, underwriters, dealers and remarketing
firms may be entitled under relevant agreements with the Company
or any of the Trusts, as applicable, to indemnification by the
Company or any such Trust against certain liabilities, including
liabilities under the Securities Act, or to contribution with
respect to payments which such agents, underwriters, dealers and
remarketing firms may be required to make in respect thereof.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Each series of Securities will be a new issue
and, other than the Common Stock, which is listed on the New
York Stock Exchange, will have no established trading market.
The Company may elect to list any series of Securities on an
exchange, and in the case of the Common Stock, on any additional
exchange, but, unless otherwise specified in the applicable
Prospectus Supplement, the Company shall not be obligated to do
so. No assurance can be given as to the liquidity of the trading
market for any of the Securities.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Agents, underwriters, dealers and remarketing
firms may, engage in transactions with, or perform services for,
the Company and its subsidiaries in the ordinary course of
business.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The place and time of delivery for Securities
will be set forth in the accompanying Prospectus Supplement for
such Securities.
</FONT>

<DIV align="left">
<A name='128'></A>
</DIV>

<!-- link1 "LEGAL MATTERS" -->

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The validity of the Securities will be passed
upon for the Company, BSC Capital Trust, BSC Capital Trust II
and BSC Capital Trust III, as the case may be, by Shearman &#38;
Sterling, New York, New York. Certain matters of Delaware Law
relating to the validity of the Trust Preferred Securities will
be passed upon for the Company and the Trusts by Prickett,
Jones, Elliott &#38; Kristol, special counsel to the Company,
BSC Capital Trust, BSC Capital Trust II and BSC Capital
</FONT>

<P align="center"><FONT size="2">35
</FONT>

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left">
<FONT size="2">Trust III. If the Securities are being
distributed in an underwritten offering, the validity of the
Securities will be passed upon for the underwriters by counsel
identified in the related Prospectus Supplement.
</FONT>
</DIV>

<DIV align="left">
<A name='129'></A>
</DIV>

<!-- link1 "EXPERTS" -->

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The consolidated financial statements and
financial statement schedule of the Company incorporated by
reference and included, respectively, in the Company&#146;s 1998
Form&nbsp;10-K, have been audited by Ernst &#38; Young LLP,
independent auditors, as set forth in their reports thereon
incorporated by reference and included therein and incorporated
herein by reference. Such consolidated financial statements and
financial statement schedule have been incorporated herein by
reference in reliance upon such reports, given upon the
authority of such firm as experts in accounting and auditing.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The combined balance sheets of Schneider
Worldwide, formerly a business of Pfizer Inc., as of
December&nbsp;31, 1997 and 1996, and the related combined
statements of income and cash flows for each of the years in the
three-year period ended December&nbsp;31, 1997, are incorporated
by reference herein and in the registration statement in
reliance upon the report of KPMG LLP, independent certified
public accountants, incorporated by reference herein, and upon
the authority of said firm as experts in accounting and auditing.
</FONT>

<P align="center"><FONT size="2">36
</FONT>
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

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

<P align="center">
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<DIV>&nbsp;</DIV>
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