<SUBMISSION>
<ACCESSION-NUMBER>0000950123-05-000379
<TYPE>S-3/A
<PUBLIC-DOCUMENT-COUNT>3
<FILING-DATE>20050114
<DATE-OF-FILING-DATE-CHANGE>20050114
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>SCHEIN HENRY INC
<CIK>0001000228
<ASSIGNED-SIC>5047
<IRS-NUMBER>113136595
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1226
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>S-3/A
<ACT>33
<FILE-NUMBER>333-120246
<FILM-NUMBER>05531092
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>135 DURYEA RD
<CITY>MELVILLE
<STATE>NY
<ZIP>11747
<PHONE>6318425500X6867
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>135 DURYEA RD
<CITY>MELVILLE
<STATE>NY
<ZIP>11747
</MAIL-ADDRESS>
</FILER>
<DOCUMENT>
<TYPE>S-3/A
<SEQUENCE>1
<FILENAME>y04660a1sv3za.htm
<DESCRIPTION>AMENDMENT NO. 1 TO FORM S-3
<TEXT>
<HTML>
<HEAD>
<TITLE>AMENDMENT NO. 1 TO FORM S-3</TITLE>
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>


<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left"><FONT size="1">

</FONT></DIV>
<P align="right" style="font-size: 10pt"><B>Registration
No.&nbsp;333-120246</B>
<DIV align="left"><FONT size="1">

</FONT></DIV>


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<P align="center" style="font-size: 14pt"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</B>

<DIV align="center" style="font-size: 12pt"><B>WASHINGTON, D.C. 20549</B>
</DIV>

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<P align="center" style="font-size: 18pt"><B>AMENDMENT NO. 1</B>
<P align="center" style="font-size: 18pt"><B>TO</B>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 18pt"><B>FORM S-3</B>

<P align="center" style="font-size: 10pt"><B>REGISTRATION STATEMENT<BR>
UNDER<BR>
THE SECURITIES ACT OF 1933</B>



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<P align="center" style="font-size: 24pt"><B>HENRY SCHEIN, INC.</B>

<DIV align="center" style="font-size: 10pt">(Exact name of Registrant as specified in its charter)</DIV>


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    <TD width="30%">&nbsp;</TD>
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<TR valign="bottom">
    <TD align="center" valign="top"><B>Delaware</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>135 Duryea Road</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>11-3136595</B></TD>
</TR>

<TR valign="bottom">
    <TD align="center" valign="top">
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>Melville, New York 11747</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD align="center" valign="top">
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>(631)&nbsp;843-5500</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD nowrap align="center" valign="top">(State or other jurisdiction<BR>of
incorporation or organization)
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" valign="top">(Address, including zip code, and
telephone number,<BR>
including area code, of Registrant&#146;s<BR>
principal executive offices)
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" valign="top">(I.R.S. Employer<br>Identification Number)</TD>
</TR>


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<P align="center" style="font-size: 10pt"><B>Stanley M. Bergman<BR>
Chairman, Chief Executive Officer, President and Director<BR>
Henry Schein, Inc.<BR>
135 Duryea Road<BR>
Melville, New York 11747<BR>
Telephone: (631)&nbsp;843-5500<BR>
Fax: (631)&nbsp;843-5658</B><BR>
(Name, address, including zip code, and telephone number, including area code, of agent for service)


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<P align="center" style="font-size: 10pt">Copies of communications to:



<P align="center" style="font-size: 10pt"><B>Julie M. Allen, Esq.<BR>
Proskauer Rose LLP<BR>
1585 Broadway<BR>
New York, New York 10036<BR>
Telephone: (212)&nbsp;969-3000<BR>
Fax: (212)&nbsp;969-2900</B>


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<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Approximate date of commencement of proposed sale to the public: </B>At such
time or times after the effective date of this Registration Statement as the
selling securityholders shall determine.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the only securities being registered on this Form are being offered
pursuant to dividend or interest reinvestment plans, please check the following
box. <FONT face="Wingdings">&#111;</FONT>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If any of the securities being registered on this Form are to be offered
on a delayed or continuous basis pursuant to Rule&nbsp;415 under the Securities Act
of 1933, other than securities offered only in connection with dividend or
interest reinvestment plans, check the following box. <FONT face="Wingdings">&#254;</FONT>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If this Form is filed to register additional securities for an offering
pursuant to Rule 462(b) under the Securities Act, please check the following
box and list the Securities Act registration statement number of the earlier
effective registration statement for the same offering.<FONT face="Wingdings">&#111;</FONT>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If this Form is a post-effective amendment filed pursuant to Rule 462(c)
under the Securities Act, check the following box and list the Securities Act
registration statement number of the earlier effective registration statement
for the same offering. <FONT face="Wingdings">&#111;</FONT>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If delivery of the prospectus is expected to be made pursuant to Rule&nbsp;434,
please check the following box. <FONT face="Wingdings">&#111;</FONT>

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<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left" style="font-size: 10pt"><B>The Registrant hereby undertakes to amend this registration statement on such
date or dates as may be necessary to delay its effective date until the
Registrant shall file a further amendment which specifically states that this
registration statement shall thereafter become effective in
accordance with Section&nbsp;8(a) of the Securities Act of 1933 or until the registration statement
shall become effective on such date as the Commission, acting pursuant to said
Section&nbsp;8(a), may determine.</B>


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<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left"><FONT size="1">

</FONT></DIV>
<P align="center" style="font-size: 10pt">SUBJECT TO COMPLETION,
DATED JANUARY &nbsp;&nbsp;, 2005
<DIV align="left"><FONT size="1">

</FONT></DIV>



<P style="padding: 5px; border: 3px double #848284; font-size: 10pt; color: #FF0000"><B>The information in this prospectus is not complete and may be changed. The
selling securityholders may not sell these securities until the registration
statement filed with the Securities and Exchange Commission is effective. This
prospectus is not an offer to sell these securities and it is not soliciting an
offer to buy these securities in any state where the offer or sale is not
permitted.</B>


<P align="center" style="font-size: 10pt"><B>$240,000,000<BR>
(Aggregate Principal Amount)</B><BR>
<IMG SRC="y04660a1y0466000.gif" alt="&#091;HENRY SCHEIN LOGO&#093;">



<P align="center" style="font-size: 10pt"><B>3.00% Convertible Contingent Senior Notes due 2034 and<BR>
the Common Stock Issuable Upon Conversion of the Notes</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We issued the notes in a private placement on August&nbsp;9, 2004. This
prospectus will be used by selling securityholders to resell their notes and
the common stock issuable upon conversion of their notes. We will not receive
any proceeds from this offering.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The notes are convertible, at your option, initially at a conversion ratio
of 10.7898 shares of our common stock per note, which is the equivalent
conversion price of approximately $92.68 per share, subject to adjustments
described elsewhere in this prospectus, in the following circumstances:


<P>

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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if the last sale price of our common stock is above 130% of the
conversion price measured over a specified number of trading days;</TD>
</TR>

</TABLE>


<P>

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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>during the five business-day period following any 10 consecutive
trading-day period in which the average of the trading prices for the
notes for that 10 trading-day period was less than 98% of the average
conversion value for the notes during that period;</TD>
</TR>

</TABLE>


<P>

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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if the notes have been called for redemption;</TD>
</TR>

</TABLE>


<P>

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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>upon the occurrence of a fundamental change, as described herein; or</TD>
</TR>

</TABLE>


<P>

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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>upon the occurrence of specified corporate transactions described herein.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon conversion, we will satisfy our conversion obligation with respect to
the principal amount of the notes to be converted in cash, with any remaining
amount to be satisfied in shares of our common stock.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The notes bear interest at a rate of 3.00% per year. We will also pay
contingent interest during any six-month interest period beginning August&nbsp;20,
2010 if the average trading price of the notes is above specified levels.
Interest on the notes is payable on February&nbsp;15 and August&nbsp;15 of each year,
beginning on February&nbsp;15, 2005. The notes will mature on August&nbsp;15, 2034.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The notes are subject to special United States federal income tax rules.
For a discussion of the special tax regulations governing contingent payment
debt instruments, see &#147;Certain U.S. Federal Income Tax Considerations.&#148;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We may redeem some or all of the notes on or after August&nbsp;20, 2010.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You may require us to purchase all or a portion of your notes on August
15, 2010, 2014, 2019, 2024 and 2029 at a repurchase price equal to the
principal amount plus accrued and unpaid interest. In addition, you may require
us to repurchase all or a portion of your notes upon a fundamental change at a
repurchase price equal to 100% of the principal amount plus accrued and unpaid
interest plus, under certain circumstances, a make whole premium.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There is no public market for the notes and we do not intend to apply for
listing of the notes on any securities exchange or for quotation of the notes
through any automated quotation system. The notes currently trade on the
Private Offerings, Resales and Trading through Automated Linkages Market,
commonly referred to as The PORTAL Market. However, once notes are sold under
this prospectus, these notes will no longer trade on The PORTAL Market.


<DIV align="left"><FONT size="1">

</FONT></DIV>
<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shares of our common stock are traded on the Nasdaq National Market under
the symbol &#147;HSIC.&#148; The last reported sale price of the
shares on January&nbsp;12, 2005
was $68.69&nbsp;per share.
<DIV align="left"><FONT size="1">

</FONT></DIV>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The notes are our general senior unsecured obligations. As of September
25, 2004, we had approximately $533.5&nbsp;million of debt outstanding,
approximately $59.8&nbsp;million of which was indebtedness of Henry Schein&#146;s
subsidiaries that is structurally senior in right of payment to the notes.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We will not receive any proceeds from the sale by the selling
securityholders of the notes or the common stock issuable upon conversion of
the notes. The selling securityholders may offer the notes or the underlying
common stock, in negotiated transactions or otherwise, at market prices
prevailing at the time of sale or at negotiated prices. In addition, the common
stock may be offered from time to time through ordinary brokerage transactions
on the Nasdaq National Market. The selling securityholders may be deemed to be
&#147;underwriters&#148; as defined in the Securities Act of 1933. If any broker-dealers
are used by the selling securityholders, any commissions paid to broker-dealers
and, if broker-dealers purchase any notes or common stock as principals, any
profits received by such broker-dealers on the resale of the notes as common
stock, may be deemed to be underwriting discounts or commissions under the
Securities Act of 1933. In addition, any profits realized by the selling
securityholders may be deemed to be underwriting commissions. Other than


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="left" style="font-size: 10pt">selling commissions and fees and stock transfer taxes, we will pay all
expenses of the registration of the notes and the common stock and certain
other expenses as set forth in the registration rights agreement.

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<P align="center" style="font-size: 10pt"><B>This investment involves significant risks. See the &#147;Risk Factors&#148; section beginning on page 17.</B>


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<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Neither the Securities and Exchange Commission nor any state securities
commission has approved or disapproved of these securities or determined if
this prospectus is truthful or complete. Any representation to the contrary is
a criminal offense.


<DIV align="left"><FONT size="1">

</FONT></DIV>
<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
date of this prospectus is &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2005.
<DIV align="left"><FONT size="1">

</FONT></DIV>


<P align="center" style="font-size: 10pt">2
</DIV>

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

<P align="center" style="font-size: 10pt"><B>TABLE OF CONTENTS</B>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">

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    <TD width="1%">&nbsp;</TD>
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<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><A href="#101">IMPORTANT NOTICE TO READERS</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><A href="#102">INDUSTRY AND MARKET DATA</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><A href="#103">SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><A href="#104">SUMMARY</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><A href="#105">RISK FACTORS</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><A href="#106">USE OF PROCEEDS</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><A href="#107">RATIO OF EARNINGS TO FIXED CHARGES</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><A href="#108">DIVIDEND HISTORY AND POLICY</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><A href="#109">PRICE RANGE OF COMMON STOCK</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><A href="#110">SELLING SECURITYHOLDERS</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><A href="#111">PLAN OF DISTRIBUTION</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><A href="#112">DESCRIPTION OF THE NOTES</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><A href="#113">DESCRIPTION OF CAPITAL STOCK</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">55</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><A href="#114">CERTAIN U.S. FEDERAL INCOME TAX CONSIDERATIONS</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">56</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><A href="#115">CERTAIN ERISA CONSIDERATIONS</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">63</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><A href="#116">LEGAL MATTERS</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">64</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><A href="#117">EXPERTS</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">64</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><A href="#118">WHERE YOU CAN FIND MORE INFORMATION</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">64</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><A href="#119">INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">64</TD>
    <TD>&nbsp;</TD>
</TR>


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<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y04660a1exv8w1.htm">EX-8.1: LEGAL OPINION OF PROSKAUER ROSE LLP</A></FONT></TD></TR>
</TABLE>
</DIV>


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<A name="101"></A>
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<P align="center" style="font-size: 10pt"><B>IMPORTANT NOTICE TO READERS</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This prospectus is part of a registration statement that we filed with the
Securities and Exchange Commission (the &#147;SEC&#148;) using a &#147;shelf&#148; registration
process. Under this shelf registration process, the selling securityholders
may, from time to time, offer notes or shares of our common stock owned by
them. Each time the selling securityholders offer notes or common stock under
this prospectus, they will provide a copy of this prospectus and, if
applicable, a copy of a prospectus supplement. You should read both this
prospectus and, if applicable, any prospectus supplement together with the
information incorporated by reference in this prospectus and if applicable, any
supplement hereto. See &#147;Where You Can Find More Information&#148; for more
information.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You should rely only on the information contained or incorporated or
deemed to be incorporated by reference in this prospectus. We have not, and the
selling securityholders have not, authorized anyone to provide you with
different information. Neither the notes nor any shares of common stock
issuable upon conversion of the notes are being offered in any jurisdiction
where the offer or sale is not permitted. The information contained in this
prospectus speaks only as of the date of this prospectus and the information in
the documents incorporated or deemed to be incorporated by reference in this
prospectus speaks only as of the respective dates those documents were filed
with the SEC.

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<DIV align="left">
<A name="102"></A>
</DIV>

<P align="center" style="font-size: 10pt"><B>INDUSTRY AND MARKET DATA</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have obtained some industry and market share data from third party
sources that we believe to be reliable. In many cases, however, we have made
statements in this prospectus regarding our industry and our position in the
industry based on our experience in the industry and our own investigation of
market conditions. We cannot assure you that any of these assumptions are
accurate or that they correctly reflect our position in our industry.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<HR align="center" size="1" noshade width="25%">


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<A name="103"></A>
</DIV>

<P align="center" style="font-size: 10pt"><B>SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This prospectus includes forward-looking statements within the meaning of
Section&nbsp;27A of the Securities Act and Section&nbsp;21E of the Securities Exchange
Act of 1934, including without limitation the statements under &#147;Summary&#148; and
&#147;Risk Factors.&#148; The words &#147;believe,&#148; &#147;may,&#148; &#147;could,&#148; &#147;anticipate,&#148; &#147;plan,&#148;
&#147;expect,&#148; &#147;intend,&#148; &#147;estimate,&#148; and similar expressions are intended to
identify forward-looking statements. Those statements concern, among other
things, our intent, belief, or current expectations with respect to our
operating and growth strategies, our capital expenditures, financing or other
matters, stock repurchase intentions, securities offerings or sales, regulatory
matters pertaining to us specifically and the industry in general, industry
trends, competition, risks attendant to foreign operations, reliance on key
manufacturers and suppliers, litigation, environmental matters, and other
factors affecting our financial condition or results of operations. These
forward-looking statements involve known and unknown risks, uncertainties and
other factors which may cause our actual results, performance and achievements,
or industry results, to be materially different from any future results,
performance, or achievements expressed or implied by such forward-looking
statements. Factors that could cause actual results to differ materially
include, among others:


<P>

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    <TD width="1%">&nbsp;</TD>
    <TD>competitive factors;</TD>
</TR>

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<P>

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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>changes in the healthcare industry;</TD>
</TR>

</TABLE>


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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>changes in government regulations that affect us;</TD>
</TR>

</TABLE>


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    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>financial risks associated with our international operations;</TD>
</TR>

</TABLE>


<P>

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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>fluctuations in quarterly earnings;</TD>
</TR>

</TABLE>


<P>

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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>transitional challenges associated with acquisitions,
including our acquisition of Demedis GmbH and Euro Dental Holding
GmbH;</TD>
</TR>

</TABLE>


<P>

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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>regulatory and litigation risks;</TD>
</TR>

</TABLE>


<P>

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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the dependence on our continued product development,
technical support and successful marketing in our technology
segment;</TD>
</TR>

</TABLE>


<P>

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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our dependence upon sales personnel and key customers;</TD>
</TR>

</TABLE>


<P>

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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our dependence on our senior management;</TD>
</TR>

</TABLE>


<P>

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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our dependence on third parties for the manufacture and supply of our products;</TD>
</TR>

</TABLE>


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    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>possible increases in the cost of shipping our products or
other service trouble with our third-party shippers;</TD>
</TR>

</TABLE>


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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>risks from rapid technological change;</TD>
</TR>

</TABLE>


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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>risks from potential increases in variable interest rates; and</TD>
</TR>

</TABLE>


<P>

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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the other factors described under the caption &#147;Risk Factors&#148; in this prospectus.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All forward-looking statements included in this prospectus are based on
information available to us on the date of this prospectus. We undertake no
obligation to update publicly or revise any forward-looking statement, whether
as a result of new information, future events, or otherwise. All subsequent
written and oral forward-looking statements attributable to us or persons
acting on our behalf are expressly qualified in their entirety by the
cautionary statements contained throughout this prospectus.


<P align="center" style="font-size: 10pt">4
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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="104"></A>
</DIV>

<P align="center" style="font-size: 10pt"><B>SUMMARY</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This summary highlights some information from this prospectus, but it may
not contain all of the information that is important to you. You should read
this summary together with the entire prospectus, especially &#147;Risk Factors&#148;
beginning on page 17.


<DIV align="left"><FONT size="1">

</FONT></DIV>
<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless otherwise indicated or the context otherwise requires, all
references to &#147;us,&#148; &#147;we,&#148; &#147;our,&#148; and &#147;the company&#148; refer to Henry Schein, Inc.,
the issuer of the notes, and its subsidiaries, all references to &#147;Henry Schein&#148;
refer to Henry Schein, Inc. and not its subsidiaries and all references to
&#147;notes&#148; or &#147;3.00% notes&#148; refer to the 3.00% Convertible Contingent Senior Notes
due 2034. Our fiscal year
ends on the last Saturday in December. The information in this summary takes
into account our recent acquisition of Demedis GmbH and Euro Dental Holding
GmbH. See &#147;&#151; Recent Developments.&#148;
<DIV align="left"><FONT size="1">

</FONT></DIV>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This prospectus is offering an aggregate principal amount of $240,000,000
of our 3.00% Convertible Contingent Senior Notes due 2034 and the shares of our
common stock issuable upon conversion of the notes. The selling securityholders
acquired the notes in connection with a private placement on August&nbsp;9, 2004 and
the resultant resale by the initial purchasers of the notes under Rule&nbsp;144A of
the Securities Act.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are receiving no proceeds from the sale of securities offered for sale
hereunder. We have agreed to pay the expenses associated with registering the
securities of the selling securityholders. We may suspend the use of this
prospectus during certain periods of time described in the section of this
prospectus entitled &#147;Description of Notes&#148; if the prospectus would, in our
judgment, contain a material misstatement or omission as a result of an event
that has occurred and is continuing, and we determine in good faith that the
disclosure of this material non-public information would have a material
adverse effect on us and our subsidiaries taken as a whole.


<P align="center" style="font-size: 10pt"><B>HENRY SCHEIN, INC.</B>



<P align="left" style="font-size: 10pt"><B>General</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are the largest distributor of healthcare products and services
primarily to office-based healthcare practitioners in the combined North
American and European markets. We serve more than 450,000 customers worldwide,
including dental practices and laboratories, physician practices and veterinary
clinics, as well as government and other institutions. We believe that we have
a strong brand identity due to our more than 70&nbsp;years of experience
distributing healthcare products. We have established strategically located
distribution centers to enable us to better serve our customers and increase
our operating efficiency. This infrastructure, together with broad product and
service offerings at competitive pricing and a strong commitment to customer
service, enables us to be a single source of supply for our customers&#146; needs,
as well as to provide convenient ordering and rapid, accurate and complete
order fulfillment. We are headquartered in Melville, New York, employ more than
9,000 people and have operations in the United States, Canada, the United
Kingdom, the Netherlands, Belgium, Germany, France, Austria, Spain, the Czech
Republic, Luxembourg, Italy, Ireland, Switzerland, Portugal, Australia and New
Zealand. We also have affiliates in Iceland and Israel.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We conduct our business through two segments: healthcare distribution and
technology. These segments offer different products and services to the same
customer base. The healthcare distribution segment consists of our dental,
medical (including veterinary) and international groups. Products distributed
consist of consumable products, small equipment, laboratory products, large
dental equipment, branded and generic pharmaceuticals, vaccines, surgical
products, diagnostic tests, infection control products and vitamins.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our dental group serves over 75% of the estimated 135,000 office-based
dental practices in the combined United States and Canadian dental market.
Based upon an estimated $4.4&nbsp;billion combined United States and Canadian dental
market, our share of this market was approximately 30% in 2003.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our medical group serves over 45% of the estimated 230,000 office-based
physician practices, as well as surgical centers and other alternate care
settings throughout the United States. We also serve over 70% of the


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<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="left" style="font-size: 10pt">estimated 24,000 veterinarian clinics in the United States. Based upon an
estimated $7.1&nbsp;billion combined market, our share of this market was
approximately 16% in 2003.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our international group serves over 195,000 practices in 15 countries
outside of North America and is a leading Pan-European healthcare supplier
serving office-based dental, medical, and veterinary practices. Based upon an
estimated $5.7&nbsp;billion Western European dental, medical and veterinary market
in which we operate, our share of this market was approximately 9% in 2003.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our technology group provides software, technology, and other value-added
services to healthcare providers, primarily in the United States and Canada.
Our value-added practice solutions include practice management software systems
for dental practices and for veterinary clinics. Our technology group offerings
also include financial services and continuing education services for
practitioners.


<P align="left" style="font-size: 10pt"><B>Industry</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The healthcare products distribution industry as it relates to
office-based healthcare practitioners is highly fragmented and diverse. This
industry, which encompasses the dental, medical and veterinary markets, was
estimated to produce revenues of approximately $17&nbsp;billion in 2003 in the
combined North American and European markets. The industry ranges from sole
practitioners working out of relatively small offices to group practices or
service organizations comprising anywhere from a few practitioners to a large
number of practitioners who have combined or otherwise associated their
practices.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due in part to the inability of office-based healthcare practitioners to
store and manage large quantities of supplies in their offices, the
distribution of healthcare supplies and small equipment to office-based
healthcare practitioners has traditionally been characterized by frequent,
small quantity orders, and a need for rapid, reliable and substantially
complete order fulfillment. The purchasing decisions within an office-based
healthcare practice are typically made by the practitioner or an administrative
assistant, and supplies and small equipment are generally purchased from more
than one distributor with one distributor generally serving as the primary
supplier.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The healthcare products distribution industry continues to experience
growth due to the aging population, increased healthcare awareness, the
proliferation of medical technology and testing, new pharmacology treatments
and expanded third-party insurance coverage. In addition, the physician market
continues to benefit from procedures and diagnostic testing shifting from
hospitals to alternate-care sites, particularly physicians&#146; offices, despite
significantly lower costs of procedures. As the cosmetic surgery and elective
procedure markets continue to grow, physicians are increasingly performing more
of these procedures in their offices.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We believe that consolidation within the industry will continue to result
in a number of distributors, particularly those with limited financial and
marketing resources, seeking to combine with larger companies that can provide
opportunities for growth. This consolidation may also continue to result in
distributors seeking to acquire companies that can enhance their current
product and service offerings or provide opportunities to serve a broader
customer base.


<P align="left" style="font-size: 10pt"><B>Competitive Strengths</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have more than 70&nbsp;years of experience in distributing products to
healthcare practitioners resulting in strong awareness of the &#147;Henry Schein&#148;
name. Our competitive strengths include:


<P>

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    <TD width="1%">&nbsp;</TD>
    <TD><I>Direct sales and marketing expertise</I>. Our sales and
marketing efforts are designed to establish and solidify customer
relationships through personal visits by field sales representatives
and frequent direct marketing contact, emphasizing our broad product
lines, competitive prices and ease of order placement. The key
elements of our direct sales and marketing efforts are:</TD>
</TR>

</TABLE>


<P>

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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Field sales consultants</I>. We have over 1,900
field sales consultants, including equipment sales
specialists, covering major North American and international
markets. These</TD>
</TR>

</TABLE>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"><TR valign="top" style="font-size: 10pt; color: #textcolor#; background: #bgcolor#">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>consultants complement our direct marketing and telesales
efforts and enable us to better market, service and support
the sale of more sophisticated products and equipment.</TD>
</TR>

</TABLE>


<P>

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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Direct marketing</I>. During 2003, we distributed
more than 31&nbsp;million pieces of direct marketing material,
including catalogs, flyers, order stuffers and other
promotional materials to approximately 650,000 existing and
potential office-based healthcare customers.</TD>
</TR>

</TABLE>


<P>

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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Telesales</I>. We support our direct marketing
effort with approximately 1,200 inbound and outbound telesales
representatives who facilitate order processing and generate
new sales through direct and frequent contact with customers.</TD>
</TR>

</TABLE>


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Broad product and service offerings at competitive prices</I>.
We offer a broad range of products and services to our customers, at
competitive prices, in the following categories:</TD>
</TR>

</TABLE>


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Consumable supplies and equipment</I>. We offer
approximately 90,000 SKUs to our customers in North America,
of which approximately 70,000 are offered to our dental
customers, approximately 30,000 are offered to our medical
customers and approximately 40,000 are offered to our
veterinary customers. We offer approximately 75,000 SKUs to
our customers in Europe.</TD>
</TR>

</TABLE>


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Technology and other value-added products and
services</I>. We sell practice management software systems to our
dental and veterinary customers. Our practice management
software products provide practitioners with patient treatment
history, billing, accounts receivable analyses and management,
appointment calendars, electronic claims processing and word
processing programs. Through June&nbsp;26, 2004, over 44,000 of our
Dentrix and Easy Dental&#174; software systems and over 6,000 of
our AVImark&#174; veterinary software systems have been installed.</TD>
</TR>

</TABLE>


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Repair services</I>. We have 135 equipment sales and
service centers worldwide that provide a variety of repair
services for our healthcare customers. Our technicians provide
installation and repair services for dental handpieces,
dental, medical and veterinary small equipment, table top
sterilizers and large equipment.</TD>
</TR>

</TABLE>


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Financial services</I>. We offer our customers
assistance in operating their practices by providing access to
a number of financial services and products at rates that we
believe are generally lower than what they would be able to
secure independently.</TD>
</TR>

</TABLE>


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Commitment to superior customer service</I>. We maintain a
strong commitment to providing superior customer service. We
frequently monitor our customer service through customer surveys,
focus groups and statistical reports. Our customer service policy
primarily focuses on:</TD>
</TR>

</TABLE>


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Exceptional order fulfillment</I>. We estimate that
approximately 99% of items ordered in the United States and
Canada are shipped without back ordering and are shipped on
the same business day the order is received.</TD>
</TR>

</TABLE>


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Streamlined ordering process</I>. Customers may
place orders 24 hours a day, 7&nbsp;days a week (&#147;24/7&#148;) by mail,
fax, telephone, e-mail and by using our computerized order
entry systems, our 24/7 automated phone service and our
Internet sites.</TD>
</TR>

</TABLE>


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Integrated management information systems</I>. Our information
systems generally allow for centralized management of key functions,
including accounts receivable, inventory, accounts payable, payroll,
purchasing, sales and order fulfillment. These systems allow us to
manage our growth and deliver superior customer service, properly
target customers and manage financial performance and monitor daily
operational statistics.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt">7
</DIV>

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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 style="font-family: 'Times New Roman',Times,serif">

<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Effective purchasing</I>. We believe that effective purchasing
is a key element to maintaining and enhancing our position as a
low-cost provider of healthcare products. We continuously evaluate
our purchase requirements and suppliers&#146; offerings and prices in
order to obtain products at the best possible cost.</TD>
</TR>

</TABLE>


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Efficient distribution</I>. We distribute our products from our
strategically located distribution centers. We maintain optimal
inventory levels in order to satisfy customer demand for prompt
delivery and complete order fulfillment. These inventory levels are
managed on a daily basis with the aid of our management information
systems. Once an order is entered, it is electronically transmitted
to the distribution center nearest the customer&#146;s location and a
packing slip for the entire order is printed for order fulfillment.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><B>Business Strategy</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our objective is to be the largest distributor of healthcare products and
services to office-based healthcare practitioners. To accomplish this, we will
apply our competitive strengths in executing the following strategies:


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Increase penetration of our existing customer base</I>. We
intend to increase sales to our existing customer base and enhance
our position as their primary vendor. In the U.S. dental market,
total consumable sales per practitioner are estimated to be
approximately $25,000, of which our average U.S. dental customer&#146;s
sales are approximately $8,000 (or 32%) of those sales. In the U.S.
medical market, total sales per practitioner are estimated to be
approximately $12,000, of which our average U.S. medical customer&#146;s
sales are approximately $4,000 (or 33%) of those sales. In the
Western European dental market total sales per practitioner are
estimated to be approximately $20,000, of which our average Western
European dental customer&#146;s sales are approximately $3,000 (or 15%)
of those sales.</TD>
</TR>

</TABLE>


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Increase the number of customers we serve</I>. This strategy
includes increasing the number and productivity of field sales
consultants as well as utilizing our customer database to focus our
marketing efforts.</TD>
</TR>

</TABLE>


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Leverage our value-added products and services</I>. We intend to
increase cross-selling efforts for key product lines. In the dental
business, we have significant cross-selling opportunities between
our dental practice management software users and our dental
distribution customers. In the medical business, we have
opportunities to expand our vaccine, injectables and other
pharmaceuticals sales to medical distribution customers, as well as
cross-selling core products with these key products.</TD>
</TR>

</TABLE>


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Pursue strategic acquisitions and joint ventures</I>. Since the
beginning of 1999, we have acquired over 25 companies engaged in
businesses that are complementary to ours, including six companies
in 2004. Our acquisition strategy includes acquiring entities that
will provide additional sales that will be channeled through our
existing infrastructure, acquiring access to additional product
lines, acquiring regional distributors with networks of field sales
consultants and expanding internationally.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><B>Recent Developments</B>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
January&nbsp;10, 2005, we acquired the dental distribution business
of Ash Temple Limited, a privately held full-service dental
distributor based in Concord, Ontario, with revenues of approximately
$100 million in the fiscal year 2004.

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On December 2, 2004,
we entered into a multi-year agreement with ID Biomedical Corporation to
distribute ID Biomedical&#146;s Fluviral&#174; influenza vaccine. The
agreement will commence upon approval of Fluviral&#174; by the U.S. Food
and Drug Administration (FDA), which could be as early as 2005 if the
FDA provides expedited approval of the ID Biomedical application, and
will terminate in 2014. Once Fluviral&#174; is approved by the FDA, ID
Biomedical plans to manufacture up to an estimated 15 million doses
for the U.S. market in 2005, and increase production to approximately
38 million doses by 2007. Similarly, we will increase the number of
Fluviral&#174; doses we purchase over that time, and by 2007 will have
approximately 19 million doses per year available for distribution to
our customers. Our purchase commitment under the agreement calls for
us to pay ID Biomedical an amount per dose based each year on the
market price then prevailing. At today&#146;s market price, this
commitment will aggregate approximately $45 million for 2005,
increasing to approximately $113 million in 2007.
<DIV align="left"><FONT size="1">

</FONT></DIV>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In October&nbsp;2004, we revised guidance for 2004 earnings per diluted share
to $3.03 &#151; $3.07 from our previously issued guidance reported on August&nbsp;27,
2004 of $3.55 &#151; $3.61, as a result of a press release issued by Chiron
Corporation stating that Chiron will not supply Fluvirin&#174; influenza vaccine to
the U.S. market for the current influenza season. On October&nbsp;5, 2004, Chiron
announced that this was the result of action by the U.K. regulatory body, the
Medicines and Healthcare Products Regulatory Agency (MHRA), to temporarily
suspend Chiron&#146;s license to manufacture Fluvirin&#174; influenza vaccine in Chiron&#146;s
Liverpool, U.K. facility. We are the primary distributor of Fluvirin&#174; to the
U.S. market and Chiron is currently our primary supplier of the influenza
vaccine. It is not yet


<P align="center" style="font-size: 10pt">8
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="left" style="font-size: 10pt">known whether the MHRA will lift the suspension in time for Chiron to
produce the Fluvirin&#174; influenza vaccine for the 2005-2006 influenza season.


<P align="left" style="font-size: 10pt"><B>Acquisition of the Demedis Group</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On June&nbsp;18, 2004, we acquired all of the outstanding equity shares of
Demedis GmbH (&#147;Demedis&#148;) (excluding its Austrian operations), a leading
full-service distributor of dental consumables and equipment in Germany,
Austria, and the Benelux countries, and Euro Dental Holding GmbH (&#147;EDH&#148;), which
included KRUGG S.p.A., Italy&#146;s leading distributor of dental consumable
products, and DentalMV GmbH (otherwise known as &#147;Muller &#038; Weygandt,&#148; or &#147;M&#038;W&#148;).
We refer to these entities collectively as the &#147;Demedis Group.&#148; Excluding
sales for M&#038;W and Austrodent, the acquired companies recorded net sales of
approximately EUR 285&nbsp;million for the fiscal year ended September&nbsp;30, 2003.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As part of our agreement with the German regulatory authorities, we agreed
to divest M&#038;W shortly after the consummation of the acquisition. On July&nbsp;16,
2004, this divestiture was completed for EUR 50.0&nbsp;million, including the
assumption of debt of approximately EUR 27.5&nbsp;million, resulting in a reduction
of the purchase price for the Demedis Group.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As part of the agreement to divest M&#038;W, we were entitled to receive 50% of
the net sale proceeds in excess of EUR 55.0&nbsp;million, in the event M&#038;W was
subsequently resold before June&nbsp;18, 2005. On September&nbsp;24, 2004, an agreement
was signed to resell M&#038;W for an amount that resulted in us realizing a share of
the net sales proceeds equal to EUR 26.4&nbsp;million, which we received in October
2004. The accrual of this receivable as of September&nbsp;25, 2004 was treated as a
reduction of the purchase price for the Demedis Group.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The regulatory authorities are continuing their review of our pending
acquisition of the Demedis Group&#146;s business in Austria, which operates under
the Austrodent brand. Of the total purchase price for the Demedis Group, EUR
11.0&nbsp;million was attributable to Austrodent In the event that we do not
receive regulatory approval to acquire Austrodent, we are entitled to receive
the proceeds through a sale of Austrodent, net of selling costs, up to EUR 11.0
million.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Excluding its Austrian operations and giving effect to the additional
proceeds received from the divestiture and subsequent resale of M&#038;W as
discussed above, the purchase price for the Demedis Group was approximately EUR
183.1&nbsp;million, including transaction costs and the assumption of debt. We
financed the acquisition primarily with cash on hand, borrowings under our
existing revolving credit facility and the proceeds of a bridge loan in the
amount of $150&nbsp;million. The lenders under the bridge loan were JPMorgan Chase
Bank and Lehman Commercial Paper Inc., affiliates of the initial purchasers.
The bridge loan was repaid in full with the net proceeds from the issuance of
notes on August&nbsp;9, 2004.


<P align="center" style="font-size: 10pt">* * * *



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our principal executive offices are located at 135 Duryea Road, Melville,
New York 11747, and our telephone number is (631)&nbsp;843-5500. Our Internet
website is <I>www.henryschein.com</I>. None of the information on or hyperlinked from
our website is part of this prospectus.


<P align="center" style="font-size: 10pt">9
</DIV>

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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 style="font-family: 'Times New Roman',Times,serif">

<P align="center" style="font-size: 10pt"><B>Selected Financial Data</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following selected financial data, with respect to our financial
position and results of operations for each of the nine month periods ended
September&nbsp;25, 2004 and September&nbsp;27, 2003 and the five fiscal years ended
December&nbsp;27, 2003, December&nbsp;28, 2002, December&nbsp;29, 2001, December&nbsp;30, 2000 and
December&nbsp;25, 1999 set forth below, has been derived from, should be read in
conjunction with and is qualified in its entirety by reference to, our
consolidated financial statements and the notes thereto, incorporated by
reference in this prospectus. The consolidated financial information for each
of the nine month periods ended September&nbsp;25, 2004 and September&nbsp;27, 2003 is
derived from our unaudited financial statements. The results of operations of
any interim period are not necessarily indicative of the results to be expected
for a full year.

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">

<!-- Begin Table Head --><TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>Nine Months Ended</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="19"><B>Years Ended</B><HR size="1" noshade></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Sept. 25,</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Sept. 27,</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>December 27,</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>December 28,</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>December 29,</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>December 30,</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>December 25,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2004</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2003</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2003</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2002</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2001</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2000</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>1999</B><HR size="1" noshade></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="28"><B>(In thousands, except per share data)</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>


<!-- End Table Head -->

<!-- Begin Table Body -->
<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><B>Statements of Operations
Data:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Net sales</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">2,865,946</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">2,406,881</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">3,353,805</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">2,825,001</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">2,558,243</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">2,381,721</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">2,284,544</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Gross profit</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">756,570</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">673,446</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">927,194</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">794,904</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">699,324</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">647,901</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">608,596</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Selling, general and
administrative expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">593,530</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">498,811</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">693,475</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">598,635</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">551,574</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">520,288</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">489,364</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Merger, integration and
restructuring (credits)
costs(1)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(734</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,024</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,467</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Operating income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">163,040</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">174,635</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">233,719</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">197,003</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">147,750</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">112,589</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">105,765</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Other expense, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(5,565</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(6,375</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(7,943</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(6,574</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(7,399</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(16,055</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(15,982</TD>
    <TD nowrap>)</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Income before taxes,
minority interest, equity
in earnings (losses)&nbsp;of
affiliates and loss on sale
of discontinued operation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">157,475</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">168,260</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">225,776</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">190,429</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">140,351</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">96,534</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">89,783</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Taxes on income from
continuing operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(58,466</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(62,982</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(84,378</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(70,510</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(51,930</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(36,150</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(35,589</TD>
    <TD nowrap>)</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Minority interest in net
income of subsidiaries</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(1,707</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(1,974</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(2,807</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(2,591</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(1,462</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(1,757</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(1,690</TD>
    <TD nowrap>)</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Equity in earnings (losses)
of affiliates</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,331</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">676</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">931</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">659</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">414</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(1,878</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(2,192</TD>
    <TD nowrap>)</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Net income from continuing
operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">98,633</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">103,980</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">139,522</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">117,987</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">87,373</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">56,749</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50,312</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Loss on sale of
discontinued operation, net
of tax(2)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(2,012</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(2,012</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Net income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">98,633</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">101,968</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">137,510</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">117,987</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">87,373</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">56,749</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50,312</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Earnings from continuing
operations per common
share:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Basic</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">2.26</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">2.38</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">3.19</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">2.71</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">2.06</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">1.38</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">1.24</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Diluted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.20</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.32</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.63</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.01</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.35</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.21</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Earnings per common share:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Basic</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">2.26</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">2.33</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">3.15</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">2.71</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">2.06</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">1.38</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">1.24</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Diluted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.20</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.27</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.06</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.63</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.01</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.35</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.21</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Weighted-average common
shares outstanding:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Basic</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43,737</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43,706</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43,709</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43,489</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">42,366</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41,244</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40,585</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Diluted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44,884</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44,896</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44,988</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44,872</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43,545</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">42,007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41,438</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><B>Net Sales Data by Market:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Healthcare Distribution (3):</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Dental(4)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">1,146,243</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">985,318</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">1,364,812</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">1,227,273</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">1,121,394</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">1,087,073</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">1,056,406</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Medical(5)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,055,677</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">957,909</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,338,084</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,093,956</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">982,569</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">851,301</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">767,258</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:20px; text-indent:-10px">International(6)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">603,181</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">409,181</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">576,628</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">437,046</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">398,071</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">389,946</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">403,140</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:30px; text-indent:-10px">Total Healthcare
Distribution</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,805,101</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,352,408</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,279,524</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,758,275</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,502,034</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,328,320</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,226,804</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Technology(7)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">60,845</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">54,473</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">74,281</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">66,726</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">56,209</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">53,401</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">57,740</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Total Net Sales</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">2,865,946</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">2,406,881</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">3,353,805</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">2,825,001</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">2,558,243</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">2,381,721</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">2,284,544</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><B>Balance Sheet Data:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Total assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">2,212,271</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">1,696,987</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">1,819,370</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">1,558,052</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">1,385,428</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">1,231,068</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">1,204,102</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Long-term debt</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">522,767</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">245,389</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">247,100</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">242,561</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">242,169</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">266,224</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">318,218</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Minority interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,367</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,041</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,532</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,748</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,786</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,996</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,855</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Stockholders&#146; equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,059,314</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">952,120</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,004,118</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">861,217</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">680,457</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">579,060</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">517,867</TD>
    <TD>&nbsp;</TD>
</TR>


<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">

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    <TD width="47%"></TD>
    <TD width="5%"></TD>
    <TD width="47%"></TD>
</TR>

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<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top"><I>(footnotes on following page)</I></TD>
</TR>


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</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">10
</DIV>

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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 style="font-family: 'Times New Roman',Times,serif">


<P>

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


<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top">
    <TD width="1%" nowrap align="right">(1)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">In 2002, we revised our original estimates of our anticipated merger,
integration and restructuring costs. This change in estimates is
attributable to facts and circumstances that arose subsequent to the
original charges. As a result, we recorded additional expenses and
reversed certain of our previously recorded expenses. Merger, integration
and restructuring costs consisted primarily of investment banking, legal,
accounting and advisory fees, severance costs and benefits, facility
costs, write-offs of duplicate management information systems and other
assets.</TD>
</TR>

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

<TR valign="top">
    <TD width="1%" nowrap align="right">(2)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">In the third quarter of 2003, we sold PMA Bode GmbH, an x-ray film
distribution business located in Germany, which was a component of our
healthcare distribution business. Due to immateriality, we have not
reflected the operating results of PMA Bode separately as a discontinued
operation for any of the periods presented.</TD>
</TR>

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

<TR valign="top">
    <TD width="1%" nowrap align="right">(3)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">Consists of consumable products, small equipment, laboratory products,
large dental equipment, branded and generic pharmaceuticals, vaccines,
surgical products, diagnostic tests, infection control products and
vitamins.</TD>
</TR>

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

<TR valign="top">
    <TD width="1%" nowrap align="right">(4)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">Consists of products sold in the United States and Canada.</TD>
</TR>

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

<TR valign="top">
    <TD width="1%" nowrap align="right">(5)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">Consists of products sold in the United States medical and veterinary
markets.</TD>
</TR>

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

<TR valign="top">
    <TD width="1%" nowrap align="right">(6)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">Consists of products sold in the dental, medical and veterinary markets,
primarily in Europe.</TD>
</TR>

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

<TR valign="top">
    <TD width="1%" nowrap align="right">(7)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">Consists of practice management software and other value-added products
and services, which are sold principally to healthcare professionals in
the Untied States and Canada.</TD>
</TR>

</TABLE>



<P align="center" style="font-size: 10pt">11
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="center" style="font-size: 10pt"><B>The Offering</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>The following summary contains basic information about the notes and is
not intended to be complete. It does not contain all the information that will
be important to a holder of the securities. For a more complete understanding
of the notes, please refer to the section of this document entitled
&#147;Description of Notes.&#148;</I>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="85%">

<!-- Begin Table Head --><TR valign="bottom">
    <TD width="49%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="48%">&nbsp;</TD>
</TR>

<!-- End Table Head -->

<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Issuer
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Henry Schein, Inc.</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Seller
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">One or more of the securityholders. See
&#147;Selling Securityholders.&#148; We are not the
selling securityholders.</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Securities Offered
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$240,000,000 aggregate principal amount of
3.00% Convertible Contingent Senior Notes due
2034, which we refer to as the notes, and
common stock issuable upon conversion of the
notes.</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Maturity Date
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">August&nbsp;15, 2034.</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Ranking
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The notes are our general senior unsecured
obligations and rank equal in right of
payment with all of our existing and future
senior unsecured indebtedness. Accordingly,
they are:</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#149; subordinated in right of payment to all of
Henry Schein&#146;s existing and future secured
indebtedness;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#149; structurally subordinated to all existing
and future indebtedness and other liabilities
of Henry Schein&#146;s subsidiaries (other than
indebtedness and other liabilities owed to
Henry Schein);</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#149; <I>pari passu </I>in right of payment to Henry
Schein&#146;s existing and future senior unsecured
indebtedness; and</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#149; senior in right of payment to Henry
Schein&#146;s future subordinated indebtedness.
As of September&nbsp;25, 2004, we had
approximately $533.5&nbsp;million of debt
outstanding, approximately $59.8&nbsp;million of
which was indebtedness of Henry Schein&#146;s
subsidiaries that is structurally senior in
right of payment to the notes.</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Interest
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The notes bear interest at a rate of 3.00%
per year. Interest on the notes is payable on
February&nbsp;15 and August&nbsp;15 of each year,
beginning February&nbsp;15, 2005.</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Contingent Interest
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">We will also pay contingent interest to the
holders of notes during any six-month period
commencing with the six-month period
beginning August&nbsp;20, 2010, if the average of
the trading prices (as described elsewhere in
this prospectus) of the notes for the five
consecutive trading days ending on the second
trading day immediately preceding the
relevant six-month period equals 120% or more
of the principal amount of the notes.</TD>
</TR>


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</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">12
</DIV>

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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 style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="85%">

<!-- Begin Table Head --><TR valign="bottom">
    <TD width="49%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="48%">&nbsp;</TD>
</TR>

<!-- End Table Head -->

<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The rate of contingent interest payment in
respect of any six-month period will equal
0.25% of the average trading price of the
notes over the measuring period triggering
the contingent interest payment. Interest and
contingent interest will be computed on the
basis of a 360-day year comprised of twelve
30-day months.</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Conversion Rights
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The notes are convertible, at your option,
initially at a conversion ratio of 10.7898
shares of our common stock per note, which is
the equivalent conversion price of
approximately $92.68 per share, subject to
adjustments described elsewhere in this
prospectus in the following circumstances:</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#149; during any fiscal quarter, if the closing
price of our common stock for a period of at
least 20 trading days in the period of 30
consecutive trading days ending on the last
trading day of the preceding fiscal quarter
is more than 130% of the conversion price;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#149; during the five business-day period
following any 10 consecutive trading-day
period in which the average of the trading
prices (as described below under &#147;Description
of the Notes &#151; Conversion Rights &#151; Conversion
Upon Satisfaction of Market Price
Conditions&#148;) for the notes, for that 10
trading-day period was less than 98% of the
average conversion value for the notes during
that period;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#149; if the notes have been called for
redemption;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#149; upon the occurrence of a fundamental change
described under &#147;Description of the Notes &#151;
Conversion Rights &#151; Conversion Upon a
Fundamental Change;&#148; or</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#149; upon the occurrence of specified corporate
transactions described under &#147;Description of
the Notes &#151; Conversion Rights.&#148;
The conversion rate (and hence the conversion
price) may be adjusted for certain reasons,
but will not be adjusted for accrued
interest, if any.</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Upon conversion, we will satisfy our
conversion obligation with respect to the
principal amount of the notes to be converted
in cash, with any remaining amount to be
satisfied in shares of our common stock. See
&#147;Description of the Notes &#151; Payment Upon
Conversion.&#148;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Upon any conversion, subject to certain
exceptions, you will not receive any cash
payment representing accrued and unpaid
interest. See &#147;Description of the Notes &#151;
Conversion Rights.&#148;</TD>
</TR>


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</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">13
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="85%">

<!-- Begin Table Head --><TR valign="bottom">
    <TD width="49%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="48%">&nbsp;</TD>
</TR>

<!-- End Table Head -->

<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Notes called for redemption may be
surrendered for conversion until the close of
business one business day prior to the
redemption date.</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Sinking Fund
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">None.</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Optional Redemption by Henry Schein
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">We may not redeem the notes prior to August
20, 2010. We may redeem some or all of the
notes on or after August&nbsp;20, 2010 at a
redemption price equal to 100% of the
principal amount of the notes plus any
accrued and unpaid interest to, but
excluding, the date of optional redemption.
See &#147;Description of the Notes &#151; Optional
Redemption by Henry Schein.&#148;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Optional Repurchase Right of Holders
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">You may require us to repurchase all or a
portion of your notes on August&nbsp;15, 2010,
2014, 2019, 2024 and 2029 at a repurchase
price equal to 100% of the principal amount
of the notes plus any accrued and unpaid
interest to, but excluding, the date of
repurchase. See &#147;Description of the Notes &#151;
Repurchase of Notes at the Option of Holder.&#148;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Fundamental Change Repurchase Right of Holders
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">You may require us to repurchase all or a
portion of your notes upon a fundamental
change (as described under &#147;Description of
the Notes &#151; Repurchase at the Option of the
Holder &#151; Fundamental Change Put&#148;) at a
repurchase price equal to 100% of the
aggregate principal amount of the notes plus
any accrued and unpaid interest, if any, to,
but excluding, the date of repurchase plus,
under certain circumstances, a make whole
premium.</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">We will satisfy our repurchase obligation
with respect to the principal amount of the
notes to be repurchased in cash plus, under
certain circumstances, a make whole premium
payable in the same form of consideration
into which our common stock has been
exchanged or converted.</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Make Whole Premium Upon a Fundamental
Change
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">On or prior to August&nbsp;20, 2010, upon the
occurrence of a fundamental change, under
certain circumstances, we will pay, in
addition to the repurchase price, a make
whole premium on notes converted in
connection with, or tendered for repurchase
upon, the fundamental change. The make whole
premium will be payable, in the same form of
consideration into which our common stock has
been exchanged or converted, both for notes
tendered for purchase and for notes converted
in connection with the fundamental change.</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The amount of the make whole premium, if any,
will be based on our stock price on the
effective date of the fundamental change. A
description of how the make whole premium
will be determined and a table showing the
make whole premium that would apply at
various stock prices and fundamental change
effective dates is set forth under
&#147;Description of the Notes &#151; Determination of
the Make Whole Premium.&#148; No make whole
premium will be paid if</TD>
</TR>


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</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">14
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="85%">

<!-- Begin Table Head --><TR valign="bottom">
    <TD width="49%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="48%">&nbsp;</TD>
</TR>

<!-- End Table Head -->

<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">the stock price is
less than $65.73 per share or if the stock
price exceeds $164.00 per share (in each
case, subject to normal adjustment).</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Form, Denomination and Registration
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The notes were issued in fully registered
form, in denominations of $1,000 and are
represented by a global note deposited with
the trustee as custodian for The Depository
Trust Company, which we refer to as DTC, and
registered in the name of Cede &#038; Co., DTC&#146;s
nominee.</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Beneficial interests in the global securities
will be shown on, and any transfers will be
effected only through, records maintained by
DTC and its participants. Notes in
certificated form will be issued in exchange
for the global note only under limited
circumstances on the terms set forth in the
indenture. See &#147;Description of the Notes &#151;
Form, Denomination and Registration.&#148;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Use of Proceeds
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">We will not receive any of the proceeds from
the sale by the selling securityholders of
the notes or shares of common stock
underlying the notes.</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Registration Rights
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">We have agreed to use our commercially
reasonable best efforts to keep the shelf
registration statement, of which this
prospectus forms a part, effective until the
earliest of:</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#149; two years after the last date of original
issuance of any of the notes;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#149; the date when the holders of the notes and
the common stock issuable upon conversion of
the notes are able to sell all these
securities without restrictions pursuant to
Rule&nbsp;144(k) under the Securities Act; and</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#149; the date when all of the notes and the
common stock into which the notes are
convertible are registered under the shelf
registration statement and sold in accordance
with it or cease to be outstanding.

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">We are required to pay you additional amounts
if we fail to comply with our agreement to
register the notes and the common stock
issuable upon conversion of the notes within
the time periods specified above. See
&#147;Description of the Notes &#151; Registration
Rights.&#148;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">U.S. Federal Income Tax Consequences of
Owning the Notes
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">We have agreed and each holder of the notes
is deemed to have agreed pursuant to the
indenture to treat the notes as &#147;contingent
payment debt instruments&#148; subject to the
contingent payment debt regulations. As a
result, a holder is required, for federal
income tax purposes, to accrue and include
amounts in income interest on a constant
yield to maturity basis at a rate comparable
to the rate at which we would borrow in a
fixed-rate, noncontingent, nonconvertible
borrowing (which we have determined to be
6.56%) even</TD>
</TR>


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</DIV>



<P align="center" style="font-size: 10pt">15
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="85%">

<!-- Begin Table Head --><TR valign="bottom">
    <TD width="49%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="48%">&nbsp;</TD>
</TR>

<!-- End Table Head -->

<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">though the holder will receive
interest payments on the notes at a
significantly lower rate. A holder therefore
will recognize taxable income significantly
in excess of cash received while the notes
are outstanding. In addition, under the
indenture, a holder generally will recognize
ordinary income, rather than capital gain,
upon a sale, exchange, conversion, or
redemption of the notes at a gain. See
&#147;Certain U.S. Federal Income Tax Considerations.&#148;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Trading
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The notes issued in the initial private
offering are eligible for trading on Nasdaq&#146;s
screen-based automated trading system known
as PORTAL, &#147;Private Offerings, Resale and
Trading through Automated Linkages.&#148; However,
notes sold using this prospectus will no
longer be eligible for trading in the PORTAL
Market.</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Nasdaq National Market Symbol For Our Common
Stock
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Our common stock is traded on the Nasdaq
National Market under the symbol &#147;HSIC.&#148;</TD>
</TR>


<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt"><B>Risk Factors</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You should read the &#147;Risk Factors&#148; section to understand the risks
associated with an investment in the notes.



<P align="center" style="font-size: 10pt">16
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="105"></A>
</DIV>

<P align="center" style="font-size: 10pt"><B>RISK FACTORS</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>You should carefully consider the following risk factors, in addition to
the other information presented in this prospectus and the documents
incorporated by reference into this prospectus, in evaluating us, our business
and an investment in the notes. Any of the following risks, as well as other
risks and uncertainties, could harm our business and financial results and
cause the value of the notes to decline, which in turn could cause you to lose
all or part of your investment. The risks below are not the only ones that we
face. Additional risks not currently known to us or that we currently deem
immaterial also may impair our business.</I>


<P align="center" style="font-size: 10pt"><B>Risks Relating to Our Company</B>


<P align="left" style="font-size: 10pt"><B>The healthcare products distribution industry is highly competitive and we may
not be able to compete successfully.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We compete with numerous companies, including several major manufacturers
and distributors. Some of our competitors have greater financial and other
resources than we do which could allow them to compete more successfully. Most
of our products are available from several sources and our customers tend to
have relationships with several distributors. Competitors could obtain
exclusive rights to market particular products which we would then be unable to
market. Manufacturers could also increase their efforts to sell directly to
end-users and by-pass distributors like us. Industry consolidation among
healthcare products distributors, the unavailability of products, whether due
to our inability to gain access to products or interruptions in supply from
manufacturers, or the emergence of new competitors could also increase
competition. In the future, we may be unable to compete successfully and
competitive pressures may reduce our revenues.

<P align="left" style="font-size: 10pt"><B>The healthcare industry is experiencing changes which could adversely affect
our business.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The healthcare industry is highly regulated and subject to changing
political, economic and regulatory influences. In recent years, the healthcare
industry has undergone significant change driven by various efforts to reduce
costs, including the reduction of spending budgets by government and private
insurance programs, such as Medicare, Medicaid and corporate health insurance
plans, pressures relating to potential healthcare reform, trends toward managed
care, consolidation of healthcare distribution companies, collective purchasing
arrangements among office-based healthcare practitioners and reimbursements to
customers. If we are unable to react effectively to these and other changes in
the healthcare industry, our operating results could be adversely affected. In
addition, the enactment of any significant healthcare reforms could have a
material adverse effect on our business.

<P align="left" style="font-size: 10pt"><B>We must comply with government regulations governing the distribution of
pharmaceuticals and medical devices and additional regulations could negatively
affect our business.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our business is subject to requirements under various local, state,
federal and international governmental laws and regulations applicable to the
manufacture and distribution of pharmaceuticals and medical devices. Among the
federal laws with which we must comply are the Controlled Substances Act and
the Federal Food, Drug, and Cosmetic Act, including the Prescription Drug
Marketing Act of 1987 and the Safe Medical Devices Act. Such laws:


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>regulate the storage and distribution, labeling, handling,
record keeping, manufacturing and advertising of drugs and medical
devices;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>subject us to inspection by the Federal Food and Drug
Administration and the Drug Enforcement Administration;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>regulate the transportation of certain of our products that
are considered hazardous materials;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>require registration with the Federal Food and Drug
Administration and the Drug Enforcement Administration;
</TD>
</TR>
</TABLE>

<P align="center" style="font-size: 10pt">17
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>require us to coordinate returns of products that have been
recalled and subject us to inspection of our recall procedures; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>impose reporting requirements if a pharmaceutical or medical
device causes serious illness, injury or death.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our business is also subject to requirements of foreign governmental laws
and regulations affecting our operations abroad.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The failure to comply with any of these regulations or the imposition of
any additional regulations could negatively affect our business. There can be
no assurance that current or future U.S. or foreign government regulations will
not adversely affect our business.

<P align="left" style="font-size: 10pt"><B>Our international operations are subject to inherent risks, which could
adversely affect our operating results.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;International operations are subject to risks that may materially
adversely affect our business, results of operations and financial condition.
The risks that our international operations are subject to include:


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>difficulties and costs relating to staffing and managing foreign operations;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>difficulties in establishing channels of distribution;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>fluctuations in the value of foreign currencies;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>longer payment cycles of foreign customers and difficulty of
collecting receivables in foreign jurisdictions;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>repatriation of cash from our foreign operations to the United States;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>cumbersome regulatory requirements;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>unexpected difficulties in importing or exporting our products;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>imposition of import/export duties, quotas, sanctions or penalties; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>unexpected regulatory, economic and political changes in foreign markets.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a result of our acquisition of the Demedis Group, our foreign
operations are significantly larger and, therefore, our exposure to the risks
inherent in international operations has become greater.

<P align="left" style="font-size: 10pt"><B>We experience fluctuations in quarterly earnings. As a result, we may fail to
meet or exceed the expectations of securities analysts and investors, which
could cause our stock price to decline.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our business has been subject to seasonal and other quarterly
fluctuations. Net sales and operating profits generally have been higher in
the third and fourth quarters due to the timing of sales of software, equipment
and seasonal products (including influenza vaccine), purchasing patterns of
office-based healthcare practitioners and year-end promotions. Net sales and
operating profits generally have been lower in the first quarter, primarily due
to increased sales in the prior two quarters. Quarterly results may also be
adversely affected by a variety of other factors, including:


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>costs of developing new applications and services;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>costs related to acquisitions of technologies or businesses;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the timing and amount of sales and marketing expenditures;</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">18
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<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>general economic conditions, as well as those specific to the healthcare industry and related industries;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the timing of the release of functions of our technology-related products and services; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our success in establishing additional business relationships.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any change in one or more of these or other factors could cause our annual
or quarterly operating results to fluctuate. If our operating results do not
meet market expectations, our stock price may decline.

<P align="left" style="font-size: 10pt"><B>Because we do not manufacture the products we distribute, we are dependent upon
third parties for the manufacture and supply of our products.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We obtain substantially all of our products from third-party suppliers.
Generally, we do not have long-term contracts with our suppliers, committing
them to supply products to us. Therefore, suppliers may not provide the
products we need in the quantities we request. Because we do not control the
actual production of the products we sell, we may be subject to delays caused
by interruption in production based on conditions outside of our control. In
the event that any of our third-party suppliers were to become unable or
unwilling to continue to provide the products in required volumes, we would
need to identify and obtain acceptable replacement sources on a timely basis.
There is no guarantee that we will be able to obtain such alternative sources
of supply on a timely basis, if at all. An extended interruption in the supply
of our products, especially the supply of our influenza vaccine and any other
high sales volume product, would have an adverse effect on our results of
operations, which most likely would adversely affect the value of our common
stock.


<P align="left" style="font-size: 10pt"><B>Our expansion through acquisitions and joint ventures involves several risks.</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have expanded our domestic and international markets in part through
acquisitions and joint ventures, and we expect to continue to make acquisitions
and enter into joint ventures in the future. Such transactions involve numerous
risks, including possible adverse effects on our operating results or the
market price of our common stock. Some of our acquisitions and future
acquisitions may also give rise to an obligation by us to make contingent
payments or to satisfy certain repurchase obligations, which payments could
have an adverse effect on our results of operations. In addition, integrating
acquired businesses and joint ventures:


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>may result in a loss of customers or product lines of the acquired businesses or joint ventures;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>requires significant management attention; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>may place significant demands on our operations, information systems and financial resources.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There can be no assurance that our future acquisitions or joint ventures
will be successful. Our ability to continue to successfully effect acquisitions
and joint ventures will depend upon the following:


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the availability of suitable acquisition or joint venture
candidates at acceptable prices;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our ability to consummate such transactions, which could
potentially be prohibited due to national or international antitrust
regulations; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the availability of financing on acceptable terms, in the
case of non-stock transactions.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt"><B>We face inherent risk of exposure to product liability and other claims in the
event that the use of the products we sell results in injury.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our business involves a risk of product liability and other claims and
from time to time we are named as a defendant in cases as a result of our
distribution of pharmaceutical and other healthcare products. Additionally, we
own a majority interest in a company that manufactures dental implants and we
are subject to the potential risk of


<P align="center" style="font-size: 10pt">19
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<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="left" style="font-size: 10pt">product liability or other claims relating to the manufacture of products
by that entity. One of the potential risks we face in the distribution of our
products is liability resulting from counterfeit products infiltrating the
supply chain. In addition, some of the products that we transport and sell are
considered hazardous materials. The improper handling of such materials or
accidents involving the transportation of such materials could subject us to
liability. We have insurance policies, including product liability insurance,
covering risks and in amounts we consider adequate. Additionally, in many cases
we are covered by indemnification from the manufacturer of the product.
However, we cannot assure you that the coverage maintained by us is sufficient
to cover future claims or will be available in adequate amounts or at a
reasonable cost, or that indemnification agreements will provide adequate
protection for us. A successful claim brought against us in excess of available
insurance or indemnification, or any claim that results in significant adverse
publicity against us, could harm our business.

<P align="left" style="font-size: 10pt"><B>Our technology segment depends upon continued product development, technical
support and successful marketing.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Competition among companies supplying practice management software is
intense and increasing. Our future sales of practice management software will
depend on, among other factors:


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the effectiveness of our sales and marketing programs;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our ability to enhance our products; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our ability to provide ongoing technical support.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We cannot be sure that we will be successful in introducing and marketing
new software or software enhancements, or that such software will be released
on time or accepted by the market. Our software products, like software
products generally, may contain undetected errors or bugs when introduced or as
new versions are released. We cannot be sure that future problems with
post-release software errors or bugs will not occur. Any such defective
software may result in increased expenses related to the software and could
adversely affect our relationships with the customers using such software. We
do not have any patents on our software, and rely upon copyright, trademark and
trade secret laws, as well as contractual and common law protections. We cannot
assure you that such legal protections will be available or enforceable to
protect our software products.

<P align="left" style="font-size: 10pt"><B>Our revenues depend on our relationships with capable sales personnel as well
as key customers, vendors and manufacturers of the products we distribute.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our future operating results depend on our ability to maintain
satisfactory relationships with qualified sales personnel as well as key
customers, vendors and manufacturers. If we fail to maintain our existing
relationships with such persons or fail to acquire relationships with such key
persons in the future, our business may suffer.

<P align="left" style="font-size: 10pt"><B>Our future performance is materially dependent upon our senior management.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our future success is substantially dependent upon the efforts and
abilities of members of our existing senior management, particularly Stanley M.
Bergman, Chairman, Chief Executive Officer and President, among others. The
loss of the services of Mr.&nbsp;Bergman could have a material adverse effect on our
business. We have an employment agreement with Mr.&nbsp;Bergman. We do not currently
have &#147;key man&#148; life insurance policies on any of our employees. Competition for
senior management is intense, and we may not be successful in attracting and
retaining key personnel.

<P align="left" style="font-size: 10pt"><B>Increases in the cost of shipping or service trouble with our third-party
shippers could harm our business.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shipping is a significant expense in the operation of our business. We
ship almost all of our U.S. orders by United Parcel Service, Inc. and other
delivery services, and typically bear the cost of shipment. Accordingly, any
significant increase in shipping rates could have an adverse effect on our
operating results. Similarly, strikes or other service interruptions by those
shippers could cause our operating expenses to rise and adversely affect our
ability to deliver products on a timely basis.


<P align="center" style="font-size: 10pt">20
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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt"><B>We may not be able to respond to technological change effectively.</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Traditional healthcare supply and distribution relationships are being
challenged by electronic on-line commerce solutions. Our distribution business
is characterized by rapid technological developments and intense competition.
The advancement of on-line commerce will require us to cost-effectively adapt
to changing technologies, to enhance existing services and to develop and
introduce a variety of new services to address changing demands of consumers
and our clients on a timely basis, particularly in response to competitive
offerings. Our inability to anticipate and effectively respond to changes on a
timely basis could have an adverse effect on our business.


<P align="left" style="font-size: 10pt"><B>We are exposed to the risk of an increase in interest rates.</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the fourth quarter of 2003, we entered into interest rate swap
agreements to exchange our fixed rate interest rates for variable interest
rates payable on our $230&nbsp;million senior notes. Our fixed interest rates on the
senior notes were 6.94% and 6.66% for the $130&nbsp;million and $100&nbsp;million senior
notes, respectively. The variable rate is comprised of LIBOR plus the spreads
and resets on the interest due dates for the senior notes. As a result of these
interest rate swap agreements, as well as our existing variable rate credit
lines and loan agreements, we are exposed to risk from fluctuations in interest
rates. For example, a hypothetical 100 basis points increase in interest rates
would increase our annual interest expense by approximately $2.7&nbsp;million.

<P align="left" style="font-size: 10pt"><B>Our acquisition of the Demedis Group may not result in the benefits and revenue
growth we expect.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On June&nbsp;18, 2004, we acquired the Demedis Group. See &#147;Summary &#151; Recent
Developments.&#148; We are in the process of integrating these companies and
assimilating the operations, services, products and personnel of each company
with our management policies, procedures and strategies. We cannot be sure that
we will achieve the benefits of revenue growth that we expect from this
acquisition or that we will not incur unforeseen additional costs or expenses
in connection with this acquisition. To effectively manage our expected future
growth, we must continue to successfully manage our integration of the Demedis
Group and continue to improve our operational systems, internal procedures,
accounts receivable and management, financial and operational controls. If we
fail in any of these areas, our business could be adversely affected.


<P align="center" style="font-size: 10pt"><B>Risks Relating to an Investment in the Notes and the Common Stock</B>

<P align="left" style="font-size: 10pt"><B>Our indebtedness could
adversely affect our financial health and prevent us from fulfilling
our obligations under the notes.</B>

<TABLE width="90%">
<TR><TD style="font-size: 1pt; color: #FFFFFF"><B>Our indebtedness could adversely affect our financial health and prevent us
from fulfilling our obligations under the notes.</B></TD>
</TR>
</TABLE>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of September&nbsp;25, 2004, we had total indebtedness of $533.5&nbsp;million.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our indebtedness could have important consequences to you. For example, it could:


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>make it more difficult for us to satisfy our obligations with respect to these notes;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>increase our vulnerability to general adverse economic and industry conditions;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>reduce the availability of our cash flow to fund working
capital, capital expenditures, investment efforts and other general
corporate needs;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>limit our flexibility in planning for, or reacting to,
changes in our business and the industry in which we operate;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>adversely affect vendor payment terms;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>place us at a competitive disadvantage compared to our competitors with less leverage;
</TD>
</TR>
</TABLE>

<P align="center" style="font-size: 10pt">21
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<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>expose us to the risk of increased interest rates because
some of our debt has variable interest rates; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>limit our ability to borrow additional funds.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any default under the agreements governing our indebtedness, including a
default under our credit facility that is not waived by the required lenders,
and the remedies sought by the holders of such indebtedness could make us
unable to pay principal and interest on the notes and substantially decrease
the market value of the notes.

<P align="left" style="font-size: 10pt"><B>We may not have the funds necessary to repurchase the notes or pay the amounts
due upon conversion of the notes when necessary.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In certain circumstances you may require us to repurchase all or a portion
of your notes to the extent set forth in this prospectus. In addition, upon
conversion of the notes, we are obligated to satisfy our conversion obligation
with respect to the conversion value of the notes to be converted in cash. If
you were to require us to repurchase your notes, including following a change
in control that constitutes a fundamental change, or you were to convert your
notes, we cannot be sure that we will have sufficient cash or other financial
resources at that time or would be able to arrange financing to pay the amount
required in cash. Our ability to repurchase the notes or pay the settlement
amount in those events may be limited by law, by the indenture, by the terms of
other agreements relating to our senior debt and by indebtedness and agreements
that we may enter into in the future which may replace, supplement or amend our
existing or future debt. If you were to require us to repurchase your notes,
including following a change in control that constitutes a fundamental change
when we are prohibited from repurchasing or redeeming the notes, we could seek
the consent of lenders to repurchase the notes or could attempt to refinance
the borrowings that contain this prohibition. If we do not obtain a consent or
refinance these borrowings, we could remain prohibited from repurchasing the
notes. In addition, we could seek to obtain third-party financing to pay for
any amounts due in cash upon conversion, but we cannot be sure that such
third-party financing will be available on commercially reasonable terms, if at
all. Our failure to repurchase the notes or make the required payments upon
conversion would constitute an event of default under the indenture under which
we will issue the notes, which might constitute a default under the terms of
our other indebtedness at that time.

<P align="left" style="font-size: 10pt"><B>Despite current indebtedness levels, we and our subsidiaries may still be able
to incur substantially more debt. This could further exacerbate the risks
associated with our indebtedness.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We and our subsidiaries may be able to incur substantial additional
indebtedness in the future. The terms of the indenture pursuant to which the
notes were issued do not restrict us or our subsidiaries from incurring
additional indebtedness. The covenants under our revolving credit facility and
our existing senior notes limit our capacity for additional borrowings. As of
September&nbsp;25, 2004, the amount available under our revolving credit facility
was approximately $200.0&nbsp;million, and we had approximately $73.0&nbsp;million
available cash. If new indebtedness is incurred by us or our subsidiaries, the
indebtedness risks that we and they face would be exacerbated.

<P align="left" style="font-size: 10pt"><B>The notes are subordinated to any secured debt of Henry Schein and all
indebtedness of Henry Schein&#146;s subsidiaries.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The notes are not secured by any of our assets or those of our
subsidiaries. Currently, we have no secured indebtedness. However, the notes
will be effectively subordinated to any secured debt that we may incur in the
future. In any liquidation, dissolution, bankruptcy, or other similar
proceeding, the holders of our secured debt may assert rights against the
secured assets in order to receive full payment of their debt before the assets
may be used to pay the holders of the notes. In addition, in the event of a
bankruptcy, liquidation, or reorganization of any of Henry Schein&#146;s
subsidiaries, holders of their indebtedness and their trade creditors will
generally be entitled to payment of their claims from the assets of those
subsidiaries before any assets of the subsidiaries are made available for
distribution to Henry Schein. As of September&nbsp;25, 2004, the notes were
effectively junior to approximately $59.8&nbsp;million of debt plus other
liabilities (including trade payables) of our subsidiaries.


<P align="center" style="font-size: 10pt">22
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="left" style="font-size: 10pt"><B>We will be required to generate significant cash to service our indebtedness.
Our ability to generate cash depends on many factors beyond our control.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our ability to make payments on and to refinance our indebtedness,
including these notes, and to fund working capital needs, acquisitions,
repurchases of common stock and capital expenditures resulting from increased
sales and special inventory forward buy-in opportunities, pursuing growth
opportunities and managing funding needs will depend on our ability to generate
cash in the future. This, to a certain extent, is subject to general economic,
financial, competitive, legislative, regulatory, and other factors that are
beyond our control.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We cannot assure you that our business will generate sufficient cash flow
from operations, or that future borrowings will be available to us under our
credit facility to enable us to pay our indebtedness or to fund other liquidity
needs. If the notes are converted or we are required to repurchase the notes,
we are obligated to satisfy our conversion or repurchase obligation with
respect to the principal amount or conversion value, as applicable, of the
notes to be converted or repurchased in cash. In addition, we will need to
refinance all of our indebtedness, including these notes, on or before
maturity. We cannot assure you that we will be able to satisfy our conversion
or repurchase obligations or refinance any of our indebtedness on commercially
reasonable terms or at all.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If our cash flows and capital resources are insufficient to fund our debt
service obligations, we may be forced to reduce or delay capital expenditures,
sell assets, seek additional capital, or seek to restructure or refinance our
indebtedness, including the notes. These alternative measures may not be
successful and may not permit us to meet our scheduled debt service
obligations. In the absence of such operating results and resources, we could
face substantial liquidity problems and might be required to sell material
assets or operations to attempt to meet our debt service and other obligations.
Our borrowing agreements restrict our ability to sell assets and use the
proceeds from the sales. We may not be able to consummate those sales or to
obtain the proceeds which we could realize from them and these proceeds may not
be adequate to meet any debt service obligations then due.

<P align="left" style="font-size: 10pt"><B>You should consider the U.S. federal income tax consequences of owning the notes.</B>



<DIV align="left"><FONT size="1">

</FONT></DIV>
<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Because
we and each holder of the notes agreed in the indenture to treat the notes
as &#147;contingent payment debt instruments&#148; subject to the contingent payment debt
regulations, a holder will recognize taxable income significantly in excess of
cash received while the notes are outstanding. In addition, under the
indenture, a holder generally will recognize ordinary income, rather than
capital gain, upon a sale, exchange, conversion, or redemption of the notes at
a gain. See &#147;Certain U.S. Federal Income Tax Considerations.&#148;
<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left" style="font-size: 10pt"><B>The notes do not contain certain restrictive covenants, and there is limited
protection in the event of a change of control.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The indenture under which the notes were issued does not contain
restrictive covenants that would protect you from several kinds of transactions
that may adversely affect you. In particular, the indenture does not contain
covenants that will limit our ability to pay dividends or make distributions on
or redeem our capital stock or limit our ability to incur additional
indebtedness and, therefore, protect you in the event of a highly leveraged
transaction or other similar transaction. In addition, the requirement that we
offer to repurchase the notes upon a fundamental change is limited to the
transactions specified in the definition of a &#147;fundamental change&#148; under
&#147;Description of the Notes &#151; Repurchase of Notes at Option of Holders -
Fundamental Change Put.&#148; Accordingly, we could enter into certain transactions,
such as acquisitions, refinancings or a recapitalization, that could affect our
capital structure and the value of our common stock but would not constitute a
fundamental change.

<P align="left" style="font-size: 10pt"><B>Because the notes are represented by global securities registered in the name
of a depositary, you are not a &#147;holder&#148; under the indenture and your ability to
transfer the notes could be limited.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The notes are represented by one global security registered in the name of
Cede &#038; Co. as nominee for The Depository Trust Company (&#147;DTC&#148;). Except in the
limited circumstances described in this prospectus, owners of beneficial
interests in the global security are not entitled to receive physical delivery
of the notes in certificated form and are not considered &#147;holders&#148; of the notes
under the indenture for any purpose. Instead, owners must rely on the
procedures of DTC and its participants to protect their interests under the
indenture. In addition, because the laws of


<P align="center" style="font-size: 10pt">23
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<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="left" style="font-size: 10pt">some states require that certain persons take physical delivery in
definitive form of securities that they own, you may be unable to transfer your
notes to those persons.

<P align="left" style="font-size: 10pt"><B>There may not be a liquid market for the notes, and you may not be able to sell
your notes at attractive prices or at all.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There is currently no trading market for the notes. The notes currently
trade on The PORTAL market. However, no notes sold under this prospectus will
trade on the PORTAL Market. We do not intend to list the notes on any national
or other securities exchange, or on the Nasdaq National Market. Accordingly,
no public market for the notes may develop, and any market that develops may
not last. Even if an active trading market were to develop, the notes could
trade at prices that may be lower than the initial offering price. The trading
price of the notes will depend on many factors, including:


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>prevailing interest rates and interest rate volatility;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the markets for similar securities;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our financial condition, results of operations and prospects;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the publication of earnings estimates or other research
reports and speculation in the press or investment community;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>changes in our industry and competition; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>general market and economic conditions.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a result, we cannot assure you that you will be able to sell the notes
at attractive prices or at all.


<P align="left" style="font-size: 10pt"><B>The market price for our common stock may be highly volatile.</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The market price for our common stock may be highly volatile. A variety of
factors may have a significant impact on the market price of our common stock,
including:


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the publication of earnings estimates or other research
reports and speculation in the press or investment community;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>changes in our industry and competitors;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our financial condition, results of operations and prospects;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any future issuances of our common stock, which may include
primary offerings for cash, issuances in connection with business
acquisitions, and the grant or exercise of stock options from time
to time;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>general market and economic conditions; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any outbreak or escalation of hostilities.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, the Nasdaq National Market can experience extreme price and
volume fluctuations that can be unrelated or disproportionate to the operating
performance of the companies listed on Nasdaq. Broad market and industry
factors may negatively affect the market price of our common stock, regardless
of actual operating performance. In the past, following periods of volatility
in the market price of a company&#146;s securities, securities class action
litigation has often been instituted against companies. This type of
litigation, if instituted, could result in substantial costs and a diversion of
management&#146;s attention and resources, which would harm our business.


<P align="center" style="font-size: 10pt">24
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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Volatility in the market price of our common stock may make it more
difficult for you to sell the common stock you receive on conversion of the
notes. In addition, because the notes are convertible into our common stock,
subject to satisfaction of certain specified conditions, the value of the notes
will likely also be affected by the factors summarized above.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although we have not requested a rating for the notes, the notes may be
rated by Standard &#038; Poor&#146;s and Moody&#146;s. We cannot assure you that any of those
rating agencies will assign a rating to the notes or, if assigned, what such
ratings will be. In addition, we cannot assure you that any rating so assigned
will remain for any period of time, or that a rating will not be lowered or
withdrawn entirely by a rating agency if, in that rating agency&#146;s judgment,
future circumstances relating to the basis of the rating, such as adverse
changes in our business, so warrant. An adverse change in any current or future
rating could cause the liquidity or market value of the notes to decline
significantly.

<P align="left" style="font-size: 10pt"><B>Certain provisions in our governing documents and other documents to which we
are a party may discourage third party offers to acquire us that might
otherwise result in our stockholders receiving a premium over the market price
of their shares.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The provisions of our certificate of incorporation and by-laws may make it
more difficult for a third party to acquire us, may discourage acquisition
bids, and may limit the price that certain investors might be willing to pay in
the future for shares of our common stock. These provisions, among other
things:


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>require the affirmative vote of the holders of at least 60%
of the shares of common stock entitled to vote to approve a merger,
consolidation, or a sale, lease, transfer or exchange of all or
substantially all of our assets; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>require the affirmative vote of the holders of at least 66
2/3% of our common stock entitled to vote to:</TD>
</TR>

</TABLE>


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>remove a director; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to amend or repeal our by-laws, with certain limited exceptions.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, the Henry Schein, Inc. 1994 Stock Incentive Plan, the Henry
Schein, Inc. 1996 Non-Employee Director Stock Incentive Plan and the Henry
Schein, Inc. 2001 Non-Employee Director Incentive Plan provide for accelerated
vesting of stock options upon a change in control, and certain agreements
between us and our executive officers provide for increased severance payments
if those executive officers are terminated without cause within two years after
a change in control. We are also afforded the protections of Section&nbsp;203 of the
Delaware General Corporation Law, which could have similar effects.



<P align="center" style="font-size: 10pt">25
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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="106"></A>
</DIV>

<P align="center" style="font-size: 10pt"><B>USE OF PROCEEDS</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We will not receive any proceeds from the resale of the notes or the
underlying common stock by selling securityholders.

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

<P align="center" style="font-size: 10pt"><B>RATIO OF EARNINGS TO FIXED CHARGES</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Set forth below is information concerning our ratio of earnings to fixed
charges on a consolidated basis for the periods indicated. This ratio shows the
extent to which our business generates enough earnings after the payment of all
expenses other than interest to make the required interest payments on the
notes.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For purposes of computing the ratios of earnings to fixed charges,
&#147;earnings&#148; consist of income from continuing operations before income taxes and
fixed charges. &#147;Fixed charges&#148; consist of interest on all indebtedness and an
interest factor attributable to rentals. The percent of rental expense
included in the calculation of fixed charges is a reasonable approximation of
the interest factor.

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">

<!-- Begin Table Head --><TR valign="bottom">
    <TD width="28%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Years Ended</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Nine Months</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B><!-- nbsp --></B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Ended</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>December 25,</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>December 30,</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>December 29,</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>December 28,</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>December 27,</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Sept. 25,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>1999</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2000</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2001</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2002</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2003</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2004</B><HR size="1" noshade></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="23"><B>(In thousands, except for ratios)</B></TD>
</TR>


<!-- End Table Head -->

<!-- Begin Table Body -->
<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><B>Fixed Charges:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Interest expense,
including
amortization of
debt issuance</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:20px; text-indent:-10px">costs</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">$</TD>
    <TD align="right">(17,324</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">$</TD>
    <TD align="right">(20,409</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">$</TD>
    <TD align="right">( 17,324</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">$</TD>
    <TD align="right">(17,960</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">$</TD>
    <TD align="right">(18,311</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">$</TD>
    <TD align="right">( 12,367</TD>
    <TD nowrap>)</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Portion of rental
expense deemed to
represent interest.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(8,513</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(9,811</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(8,608</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(8,514</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(8,877</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(7,933</TD>
    <TD nowrap>)</TD>
</TR>

<TR style="font-size: 1px">
    <TD><DIV style="margin-left:20px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:20px; text-indent:-10px"><B>Total fixed charges</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">$</TD>
    <TD align="right">( 25,837</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">$</TD>
    <TD align="right">( 30,220</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">$</TD>
    <TD align="right">( 25,932</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">$</TD>
    <TD align="right">( 26,474</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">$</TD>
    <TD align="right">( 27,188</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">$</TD>
    <TD align="right">( 20,300</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:20px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><B>Earnings:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Income (loss)&nbsp;from
continuing
operations before
income taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">89,783</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">96,534</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">140,351</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">190,429</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">225,776</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">157,475</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Fixed charges</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">( 25,837</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(30,220</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(25,932</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">( 26,474</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">( 27,188</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(20,300</TD>
    <TD nowrap>)</TD>
</TR>

<TR style="font-size: 1px">
    <TD><DIV style="margin-left:20px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Total earnings
(loss)&nbsp;for
computation of
ratio</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">63,946</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">66,314</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">114,419</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">163,955</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">198,588</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">137,175</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:20px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:20px; text-indent:-10px"><B>Ratio of earnings
to fixed charges</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.47</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.19</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.41</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.19</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.30</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.76</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">26
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="108"></A>
</DIV>

<P align="center" style="font-size: 10pt"><B>DIVIDEND HISTORY AND POLICY</B>



<DIV align="left"><FONT size="1">

</FONT></DIV>
<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We did not declare any cash dividends on our common stock
during the fiscal years ended December&nbsp;25, 2004,
December&nbsp;27, 2003 and December&nbsp;28, 2002. We
currently do not anticipate declaring any cash dividends on our common stock in
the foreseeable future. We intend to retain earnings to finance the expansion
of our business and for general corporate purposes, including our stock
repurchase program. Any declaration of dividends will be at the discretion of
our Board of Directors and will depend upon the earnings, financial condition,
capital requirements, level of indebtedness, contractual restrictions with
respect to payment of dividends and other factors. Our revolving credit
agreement, as well as the agreements governing our existing senior notes, limit
the distribution of dividends without the prior written consent of the lenders.
<DIV align="left"><FONT size="1">

</FONT></DIV>

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

<P align="center" style="font-size: 10pt"><B>PRICE RANGE OF COMMON STOCK</B>



<DIV align="left"><FONT size="1">

</FONT></DIV>
<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our common stock trades on the Nasdaq National Market under the symbol
&#147;HSIC.&#148; As of December&nbsp;25, 2004, there were 43,325,214 shares of our common
stock issued and outstanding. As of December 25, 2004, there were
approximately 300 holders of record of our common stock. We list in the table below information on the
high and low sales prices of our common stock during the periods indicated as
reported on the Nasdaq National Market.
<DIV align="left"><FONT size="1">

</FONT></DIV>


<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="55%">

<!-- Begin Table Head --><TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>Price Range of</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B><!-- nbsp --></B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>Common Stock</B><HR size="1" noshade></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Fiscal Year and Quarter</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>High</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Low</B><HR size="1" noshade></TD>
</TR>


<!-- End Table Head -->

<!-- Begin Table Body -->
<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><B>Fiscal 2004</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="padding-top: 0em">
    <TD><DIV style="margin-left:10px; text-indent:-10px">1st Quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">74.01</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">65.91</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">2nd Quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">79.44</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">61.98</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">3rd Quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">68.01</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">59.83</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">4th Quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">70.42</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">56.15</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><B>Fiscal 2003</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">1st Quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">46.60</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">34.17</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">2nd Quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">54.15</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40.89</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">3rd Quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">60.32</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51.50</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">4th Quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">70.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">55.34</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="padding-top: 0em; background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><B>Fiscal 2002</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">1st Quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">46.11</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">35.34</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">2nd Quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50.59</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43.10</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">3rd Quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">54.98</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39.00</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">4th Quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">57.73</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40.30</TD>
    <TD>&nbsp;</TD>
</TR>


<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>


<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For the last reported sales price of our common stock on a recent date,
see the cover page of this prospectus.


<P align="center" style="font-size: 10pt">27
</DIV>

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

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<P align="center" style="font-size: 10pt"><B>SELLING SECURITYHOLDERS</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We originally issued the notes in a private placement to the several
initial purchasers represented by Lehman Brothers, Inc. and J.P. Morgan
Securities Inc. (the &#147;initial purchasers&#148;) on August&nbsp;9, 2004. The notes were
resold by the initial purchasers to qualified institutional buyers within the
meaning of Rule&nbsp;144A under the Securities Act in transactions exempt from
registration under the Securities Act. The notes and the shares of common stock
issuable upon the conversion of the notes that may be offered pursuant to this
prospectus are being offered by the selling securityholders, which includes
their transferees, distributees, pledgees or donees or their successors.


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<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth information with respect to the selling
securityholders and the principal amounts of notes beneficially owned by each
selling securityholder that may be offered pursuant to this prospectus. The
information is based on information provided by or on behalf of the selling
securityholders on or prior to January&nbsp;13, 2005. The selling securityholders
may offer all, some or none of the notes or the common stock into which the
notes are convertible. Because the selling securityholders may offer all or
some portion of the notes or common stock, we cannot estimate the amount of the
notes or the common stock that will be held by the selling securityholders upon
termination of any of these sales. In addition, the selling securityholders
identified below may have sold, transferred or otherwise disposed of all or a
portion of their notes since the date on which they provided the information
regarding their notes in transactions exempt from the registration requirements
of the Securities Act. The percentage of notes outstanding beneficially owned
by each selling securityholder is based on $240.0&nbsp;million aggregate principal
amount of notes outstanding.
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<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The number of shares of common stock issuable upon conversion of the
notes shown in the table below assumes conversion of the full amount of notes
held by each selling securityholder at an initial conversion rate of 10.7898
shares of common stock per $1,000 principal amount of notes and a cash
payment in lieu of any fractional shares.
The number of shares of common stock issuable upon conversion of the notes shown in the table
below also assumes that we would satisfy our conversion obligation entirely with common stock.
However, pursuant to the terms of the Indenture, we will satisfy in cash our conversion obligation
with respect to the principal amount of the notes to be converted, with any remaining amount to
be satisfied in shares of our common stock.
See &#147;Description of the Notes &#151;
Conversion Rights &#151; Payment Upon Conversion.&#148; This conversion price is subject
to adjustment in certain events. Accordingly, the number of conversion shares
may increase or decrease from time to time. No selling securityholder named in
the table below beneficially owns one percent or more of our common stock,
based on 43,325,214 shares of common stock outstanding on
December&nbsp;25, 2004. Information concerning other selling securityholders will be set forth in
prospectus supplements or, if appropriate, post-effective amendments to the
registration statement of which this prospectus is a part, from time to time,
if required. The number of shares of common stock owned by the other selling
securityholders or any future transferee from any such holder assumes that they
do not beneficially own any common stock other than common stock into which the
notes are convertible.
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<P align="center" style="font-size: 10pt">28
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<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="60%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
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    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Principal Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Common</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>of Notes</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Stock</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Common</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Beneficially Owned</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Percentage of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Owned</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Stock</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>and Offered</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Notes</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Prior to</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Registered</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Selling Security Holder (1)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Hereby (1)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Outstanding</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Conversion</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Hereby</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Acuity Master Fund, Ltd. (2)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,880,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.20</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#150;&#150;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31,074</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Argent Classic Convertible Arbitrage Fund
(Bermuda) Ltd. (3)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5,420,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.26</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#150;&#150;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">58,480</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Argent Classic Convertible Arbitrage Fund
L.P. (4)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">980,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#150;&#150;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,574</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Argent Classic Convertible Arbitrage Fund
II, L.P. (5)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">120,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#150;&#150;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,294</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">BNP Paribas Equity Strategies, SNC (c)(6)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,215,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#150;&#150;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,109</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">BP Amoco PLC Master Trust (7)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">560,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#150;&#150;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,042</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Barclays Global Investors Diversified Alpha
Plus Funds (8)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">222,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#150;&#150;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,395</TD>
    <TD>&nbsp;</TD>
</TR>


<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Calamos&#174; Market Neutral Fund &#150; Calamos&#174;
Investment Trust (9)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">14,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.83</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#150;&#150;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">151,057</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Canadian Imperial Holdings Inc.(c)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">9,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.75</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#150;&#150;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">97,108</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Celebrity IAM Ltd. (10)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,800,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.17</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#150;&#150;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,211</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Chrysler Corporation Master Retirement
Trust (c)(11)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3,995,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.66</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#150;&#150;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43,105</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Coda Capital Management, LLC (a)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">200,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#150;&#150;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,157</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Coda Capital ND Portfolio (a)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">100,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#150;&#150;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,078</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Coda-KHPE Convertible Portfolio (a)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">350,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#150;&#150;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,776</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Consulting Group Capital Markets Fund (12)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">150,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#150;&#150;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,618</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Consulting Group Capital Markets Funds (13)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,650,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#150;&#150;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,803</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Convertible Securities Fund</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">20,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#150;&#150;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">215</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">CooperNeff Convertible Strategies (Cayman)
Master Fund, LP (14)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,017,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#150;&#150;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,973</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Delta Air Lines Master Trust &#150; CV (c)(15)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">735,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#150;&#150;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,930</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Delta Pilots Disability &#038; Survivorship
Trust &#150; CV (c)((16)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">400,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#150;&#150;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,315</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Descartes Offshore Ltd. (17)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,900,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.04</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#150;&#150;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52,870</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Descartes Partners L.P. (18)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,800,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#150;&#150;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,421</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">F.M. Kirby Foundation, Inc. (c)(19)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">605,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#150;&#150;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,527</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Forest Fulcrum Fund LP (b)(20)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">231,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#150;&#150;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,492</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Forest Global Convertible Fund, Ltd., Class
A-5 (21)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">678,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#150;&#150;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,315</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Forest Multi-Strategy Master Fund SPC, on
behalf of its Muti-Strategy Segregated
Portfolio (22)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">522,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#150;&#150;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,632</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">FrontPoint Convertible Arbitrage Fund, L.P.
(23)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.08</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#150;&#150;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">53,949</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gartmore Convertible Fund (a)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">450,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#150;&#150;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,855</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Grace Convertible Arbitrage Fund, Ltd. (24)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.08</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#150;&#150;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">53,949</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">HFR CA Global Opportunity Master Trust (25)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">138,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#150;&#150;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,488</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">HFR RVA Select Performance Master Trust (26)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">87,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#150;&#150;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">938</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Hotel Union &#038; Hotel Industry of Hawaii
Pension Plan (27)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">150,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#150;&#150;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,618</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">ING Convertible Fund (28)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,900,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.21</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#150;&#150;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31,290</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">ING VP Convertible Portfolio (29)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">100,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#150;&#150;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,078</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10pt">29
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="60%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Principal Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Common</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>of Notes</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Stock</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Common</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Beneficially Owned</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Percentage of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Owned</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Stock</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>and Offered</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Notes</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Prior to</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Registered</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Selling Security Holder (1)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Hereby (1)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Outstanding</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Conversion</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Hereby</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Institutional Benchmarks Master Fund Ltd.
(30)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">632,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#150;&#150;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,819</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">International Truck &#038; Engine Corporation
Non-Contributory Retirement Plan Trust
(c)(31)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">455,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#150;&#150;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,909</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">International Truck &#038; Engine Corporation
Retiree Health Benefit Trust (c)(32)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">180,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#150;&#150;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,942</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">International Truck &#038; Engine Corporation
Retirement Plan for Salaried Employees
Trust (c)(33)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">435,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#150;&#150;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,693</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">JP Morgan Securities Inc. (a)(b)(34)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,464,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.03</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#150;&#150;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26,586</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">LLT Limited (35)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">117,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#150;&#150;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,262</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Laurel Ridge Capital, LP</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#150;&#150;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,579</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Lehman Brothers Inc. (a)(b)(36)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">20,848,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">8.69</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#150;&#150;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">224,945</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Lyxor/Convertible Arbitrage Fund Limited
(37)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">192,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#150;&#150;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,071</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Lyxor/Forest Fund Limited (38)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">513,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#150;&#150;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,535</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">McMahan Securities Co. L.P. (a)(b)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,500,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.04</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#150;&#150;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26,974</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Microsoft Corporation (a)(c)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">665,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#150;&#150;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,175</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Motion Picture Industry Health Plan &#150;
Active (c)(39)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">75,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#150;&#150;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">809</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Motion Picture Industry Health Plan &#150;
Retiree (c)(40)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">55,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#150;&#150;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">593</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Nations Convertible Securities Fund</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3,980,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.66</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#150;&#150;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">42,943</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">OCM Convertible Trust (c)(41)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,395,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#150;&#150;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,051</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">OCM Global Convertible Securities Fund
(c)(42)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">125,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#150;&#150;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,348</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Partner Reinsurance Company Ltd. (c)(43)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">715,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#150;&#150;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,714</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Polaris Vega Fund L.P. (44)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,250,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#150;&#150;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,277</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Qwest Occupational Health Trust (c)(45)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">125,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#150;&#150;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,348</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Royal Bank of Canada (a)(c)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.67</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#150;&#150;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43,159</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">S.A.C. Arbitrage Fund, LLC (46)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.67</TD>
    <TD>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#150;&#150;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43,159</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SG Americas Securities, LLC (a)(b)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">108,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#150;&#150;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,165</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SSI Blended Market Neutral L.P. (47)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">209,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#150;&#150;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,255</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SSI Hedged Convertible Market Neutral L.P.
(48)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">300,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#150;&#150;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,236</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Singlehedge US Convertible Arbitrage Fund
(49)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">327,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#150;&#150;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,528</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Sphinx Convertible Arb Fund SPC (50)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">474,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#150;&#150;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,114</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Sphinx Convertible Arbitrage SPC (51)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">183,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#150;&#150;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,974</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">State Employees&#146; Retirement Fund of the
State of Delaware (c)(52)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">970,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#150;&#150;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,466</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Sturgeon Limited (53)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">249,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#150;&#150;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,686</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Sunrise Partners Limited Partnership (c)(54)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,750,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.98</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#150;&#150;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51,251</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SuttonBrook Capital Portfolio, LP (55)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">15,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.25</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#150;&#150;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">161,847</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">The City of Southfield (56)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">22,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#150;&#150;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">237</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">The Estate of James Campbell 03394 (57)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">50,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#150;&#150;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">539</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">The Estate of James Campbell 08968 (58)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">30,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#150;&#150;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">323</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">The Estate of James Campbell 11222 (59)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">411,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#150;&#150;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,434</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">UBS AG
London F/B/O HFS (60)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.08</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#150;&#150;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">53,949</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">UnumProvident Corporation (a)(c)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">320,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#150;&#150;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,452</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Viacom Inc.
Pension Plan Master Trust (61)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">12,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#150;&#150;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">129</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Vicis
Capital Master Fund (62)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">6,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.50</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#150;&#150;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">64,738</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Xavex
Convertible Arbitrage 4 Fund (63)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">51,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#150;&#150;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">550</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Xavex
Convertible Arbitrage 10 Fund (64)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">480,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#150;&#150;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,179</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Zurich Institutional Benchmarks Master Fund
Ltd. (65)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">258,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#150;&#150;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,783</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10pt">30
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left"><FONT size="1">

</FONT></DIV>



<P>
<HR size="1" width="18%" align="left" noshade color="#000000">

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top">
    <TD width="1%" nowrap align="left">*</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">Less than 1%.</TD>
</TR>

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

<TR valign="top">
    <TD width="1%" nowrap align="left">a)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">This selling securityholder is an SEC-reporting company.</TD>
</TR>

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

<TR valign="top">
    <TD width="1%" nowrap align="left">b)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">This selling securityholder is a broker-dealer.</TD>
</TR>

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

<TR valign="top">
    <TD width="1%" nowrap align="left">c)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">This selling securityholder is an affiliate of a broker-dealer.</TD>
</TR>

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

<TR valign="top">
    <TD width="1%" nowrap align="left">1)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">Information regarding the selling securityholders may change from time to time. Any such
changed information will be set forth in supplements to this prospectus if and when necessary.</TD>
</TR>

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

<TR valign="top">
    <TD width="1%" nowrap align="left">2)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">Howard Needle and David J. Harris have voting and dispositive power over the registrable
securities held by this selling securityholder.</TD>
</TR>

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

<TR valign="top">
    <TD width="1%" nowrap align="left">3)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">Argent Financial Group (Bermuda), Ltd., Nathanial Brown and Robert Richardson have voting and
dispositive power over the registrable securities held by this selling securityholder.</TD>
</TR>

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

<TR valign="top">
    <TD width="1%" nowrap align="left">4)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">Argent Management Company, LLC, Nathanial Brown and Robert Richardson have voting and
dispositive power over the registrable securities held by this selling securityholder.</TD>
</TR>

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

<TR valign="top">
    <TD width="1%" nowrap align="left">5)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">Argent Management Company, LLC, Nathanial Brown and Robert Richardson have voting and
dispositive power over the registrable securities held by this selling securityholder.</TD>
</TR>

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

<TR valign="top">
    <TD width="1%" nowrap align="left">6)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">Christian Menestrier, the chief executive officer of CooperNeff Advisors, Inc., has sole
voting and dispositive power over the registrable securities held by this selling
securityholder.</TD>
</TR>

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

<TR valign="top">
    <TD width="1%" nowrap align="left">7)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">John Gottfurcht, George Douglas and Amy Jo Gottfurcht have voting and dispositive power over
the registrable securities held by this selling securityholder.</TD>
</TR>

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

<TR valign="top">
    <TD width="1%" nowrap align="left">8)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">Forest Investment Management LLC has sole voting and dispositive power over the registrable
securities held by this selling securityholder. Forest Investment Management LLC is wholly
owned by Forest Partners II LP. Michael A. Boyd Inc. is the General Partner of Forest
Partners II LP, and Michael A. Boyd is the sole owner of Michael A. Boyd Inc.</TD>
</TR>

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

<TR valign="top">
    <TD width="1%" nowrap align="left">9)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">Nick Calamos has sole voting and dispositive power over the registrable securities held by
this selling securityholder.</TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>
<P align="center" style="font-size: 10pt">31
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

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<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">10)&nbsp;&nbsp;</TD>
    <TD>Descartes Capital LLC, the Investment Advisor to this selling securityholder, has sole voting
and dispositive power over the registrable securities held by this selling securityholder.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">11)&nbsp;&nbsp;</TD>
    <TD>Oaktree Capital Management LLC is the investment manager of the selling securityholder with
respect to the registrable securities held by this selling securityholder. It does not own
any equity interest in the selling securityholder but has voting and dispositive power over
the registrable securities. Lawrence Keele is a principal of Oaktree Capital Management LLC
and is the portfolio manager for the selling securityholder. Mr.&nbsp;Keele, Oaktree Capital
Management LLC and all employees and members of Oaktree Capital Management LLC disclaim
beneficial ownership of the registrable securities, except for their pecuniary interest
therein.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">12)&nbsp;&nbsp;</TD>
    <TD>John Gottfurcht, George Douglas and Amy Jo Gottfurcht have voting and dispositive power over
the registrable securities held by this selling securityholder.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">13)&nbsp;&nbsp;</TD>
    <TD>Nick Calamos has sole voting and dispositive power over the registrable securities held by
this selling securityholder.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">14)&nbsp;&nbsp;</TD>
    <TD>Christian Menestrier, the chief executive officer of CooperNeff Advisors, Inc., has sole
voting and dispositive power over the registrable securities held by this selling
securityholder.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">15)&nbsp;&nbsp;</TD>
    <TD>Oaktree Capital Management LLC is the investment manager of the selling securityholder with
respect to the registrable securities held by this selling securityholder. It does not own
any equity interest in the selling securityholder but has voting and dispositive power over
the registrable securities. Lawrence Keele is a principal of Oaktree Capital Management LLC
and is the portfolio manager for the selling securityholder. Mr.&nbsp;Keele, Oaktree Capital
Management LLC and all employees and members of Oaktree Capital Management LLC disclaim
beneficial ownership of the registrable securities, except for their pecuniary interest
therein.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">16)&nbsp;&nbsp;</TD>
    <TD>Oaktree Capital Management LLC is the investment manager of the selling securityholder with
respect to the registrable securities held by this selling securityholder. It does not own
any equity interest in the selling securityholder but has voting and dispositive power over
the registrable securities. Lawrence Keele is a principal of Oaktree Capital Management LLC
and is the portfolio manager for the selling securityholder. Mr.&nbsp;Keele, Oaktree Capital
Management LLC and all employees and members of Oaktree Capital Management LLC disclaim
beneficial ownership of the registrable securities, except for their pecuniary interest
therein.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">17)&nbsp;&nbsp;</TD>
    <TD>Descartes Capital LLC, the Investment Advisor to this selling securityholder, has sole voting
and dispositive power over the registrable securities held by this selling securityholder.</TD>
</TR>

</TABLE>
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<P align="center" style="font-size: 10pt">32
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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">18)&nbsp;&nbsp;</TD>
    <TD>Descartes Capital LLC, the General Partner of this selling securityholder, has sole voting
and dispositive power over the registrable securities held by this selling securityholder.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">19)&nbsp;&nbsp;</TD>
    <TD>Oaktree Capital Management LLC is the investment manager of the selling securityholder with
respect to the registrable securities held by this selling securityholder. It does not own
any equity interest in the selling securityholder but has voting and dispositive power over
the registrable securities. Lawrence Keele is a principal of Oaktree Capital Management LLC
and is the portfolio manager for the selling securityholder. Mr.&nbsp;Keele, Oaktree Capital
Management LLC and all employees and members of Oaktree Capital Management LLC disclaim
beneficial ownership of the registrable securities, except for their pecuniary interest
therein.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">20)&nbsp;&nbsp;</TD>
    <TD>Forest Investment Management LLC has sole voting and dispositive power over the registrable
securities held by this selling securityholder. Forest Investment Management LLC is wholly
owned by Forest Partners II LP. Michael A. Boyd Inc. is the General Partner of Forest
Partners II LP, and Michael A. Boyd is the sole owner of Michael A. Boyd Inc.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">21)&nbsp;&nbsp;</TD>
    <TD>Forest Investment Management LLC has sole voting and dispositive power over the registrable
securities held by this selling securityholder. Forest Investment Management LLC is wholly
owned by Forest Partners II LP. Michael A. Boyd Inc. is the General Partner of Forest
Partners II LP, and Michael A. Boyd is the sole owner of Michael A. Boyd Inc.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">22)&nbsp;&nbsp;</TD>
    <TD>Forest Investment Management LLC has sole voting and dispositive power over the registrable
securities held by this selling securityholder. Forest Investment Management LLC is wholly
owned by Forest Partners II LP. Michael A. Boyd Inc. is the General Partner of Forest
Partners II LP, and Michael A. Boyd is the sole owner of Michael A. Boyd Inc.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">23)&nbsp;&nbsp;</TD>
    <TD>FrontPoint Convertible Arbitrage Fund GP, LLC is the general partner of FrontPoint
Convertible Arbitrage Fund, L.P. FrontPoint Partners LLC is the managing member of FrontPoint
Convertible Arbitrage Fund GP, LLC and as such, has voting and dispositive power over the
securities held by this selling securityholder. Philip Duff, W. Gillespie Caffray and Paul
Ghaffari are members of the board of managers of FrontPoint Partners LLC and are the sole
members of its management committee. Mr.&nbsp;Duff, Mr.&nbsp;Caffray and Mr.&nbsp;Ghaffari and FrontPoint
Partners LLC and FrontPoint Convertible Arbitrage Fund GP, LLC each disclaim beneficial
ownership of the securities held by this selling securityholder except for their pecuniary
interest therein.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">24)&nbsp;&nbsp;</TD>
    <TD>Bradford Whitmore and Michael Brailov have voting and dispositive power over the registrable
securities held by this selling securityholder.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">25)&nbsp;&nbsp;</TD>
    <TD>Forest Investment Management LLC has sole voting and dispositive power over the registrable
securities held by this selling securityholder. Forest Investment Management LLC is wholly
owned by Forest Partners II LP. Michael A. Boyd Inc. is the General</TD>
</TR>


</TABLE>
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<P align="center" style="font-size: 10pt">33
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</FONT></DIV>
<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;&nbsp;&nbsp;</TD>
    <TD>Partner of Forest Partners II LP, and Michael A. Boyd is the sole owner of Michael A. Boyd
Inc.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">26)&nbsp;&nbsp;</TD>
    <TD>Forest Investment Management LLC has sole voting and dispositive power over the registrable
securities held by this selling securityholder. Forest Investment Management LLC is wholly
owned by Forest Partners II LP. Michael A. Boyd Inc. is the General Partner of Forest
Partners II LP, and Michael A. Boyd is the sole owner of Michael A. Boyd Inc.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">27)&nbsp;&nbsp;</TD>
    <TD>John Gottfurcht, George Douglas and Amy Jo Gottfurcht have voting and dispositive power over
the registrable securities held by this selling securityholder.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">28)&nbsp;&nbsp;</TD>
    <TD>Anu Sahai has sole voting and dispositive power over the registrable securities held by this
selling securityholder.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">29)&nbsp;&nbsp;</TD>
    <TD>Anu Sahai has sole voting and dispositive power over the registrable securities held by this
selling securityholder.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">30)&nbsp;&nbsp;</TD>
    <TD>John Gottfurcht, George Douglas and Amy Jo Gottfurcht have voting and dispositive power over
the registrable securities held by this selling securityholder.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">31)&nbsp;&nbsp;</TD>
    <TD>Oaktree Capital Management LLC is the investment manager of the selling securityholder with
respect to the registrable securities held by this selling securityholder. It does not own
any equity interest in the selling securityholder but has voting and dispositive power over
the registrable securities. Lawrence Keele is a principal of Oaktree Capital Management LLC
and is the portfolio manager for the selling securityholder. Mr.&nbsp;Keele, Oaktree Capital
Management LLC and all employees and members of Oaktree Capital Management LLC disclaim
beneficial ownership of the registrable securities, except for their pecuniary interest
therein.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">32)&nbsp;&nbsp;</TD>
    <TD>Oaktree Capital Management LLC is the investment manager of the selling securityholder with
respect to the registrable securities held by this selling securityholder. It does not own
any equity interest in the selling securityholder but has voting and dispositive power over
the registrable securities. Lawrence Keele is a principal of Oaktree Capital Management LLC
and is the portfolio manager for the selling securityholder. Mr.&nbsp;Keele, Oaktree Capital
Management LLC and all employees and members of Oaktree Capital Management LLC disclaim
beneficial ownership of the registrable securities, except for their pecuniary interest
therein.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">33)&nbsp;&nbsp;</TD>
    <TD>Oaktree Capital Management LLC is the investment manager of the selling securityholder with
respect to the registrable securities held by this selling securityholder. It does not own
any equity interest in the selling securityholder but has voting and dispositive power over
the registrable securities. Lawrence Keele is a principal of Oaktree Capital Management LLC
and is the portfolio manager for the selling securityholder. Mr.&nbsp;Keele, Oaktree Capital
Management LLC and all employees and</TD>
</TR>


</TABLE>
<DIV align="left"><FONT size="1">

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<P align="center" style="font-size: 10pt">34
</DIV>

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</FONT></DIV>

<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;&nbsp;&nbsp;</TD>
    <TD>members of Oaktree Capital Management LLC disclaim beneficial ownership of the registrable
securities, except for their pecuniary interest therein.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">34)&nbsp;&nbsp;</TD>
    <TD>JP Morgan Securities Inc. acted as joint book runner for Henry Schein, Inc., in connection
with the original sale of the notes pursuant to Rule&nbsp;144A under the Securities Act.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">35)&nbsp;&nbsp;</TD>
    <TD>Forest Investment Management LP has sole voting power and shared investment control over the
registrable securities held by this selling securityholder. Forest Investment Management LP
is wholly owned by Forest Partners II. Michael A. Boyd Inc. is the sole General Partner of
Forest Partners II. and Michael A. Boyd is the sole owner of Michael A. Body, Inc.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">36)&nbsp;&nbsp;</TD>
    <TD>Lehman Brothers Inc. acted as joint book runner for Henry Schein, Inc., in connection with
the original sale of the notes pursuant to Rule&nbsp;144A under the Securities Act.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">37)&nbsp;&nbsp;</TD>
    <TD>Christian Menestrier, the chief executive officer of CooperNeff Advisors, Inc., has sole
voting and dispositive power over the registrable securities held by this selling
securityholder.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">38)&nbsp;&nbsp;</TD>
    <TD>Forest Investment Management LLC has sole voting and dispositive power over the registrable
securities held by this selling securityholder. Forest Investment Management LLC is wholly
owned by Forest Partners II LP. Michael A. Boyd Inc. is the General Partner of Forest
Partners II LP, and Michael A. Boyd is the sole owner of Michael A. Boyd Inc.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">39)&nbsp;&nbsp;</TD>
    <TD>Oaktree Capital Management LLC is the investment manager of the selling securityholder with
respect to the registrable securities held by this selling securityholder. It does not own
any equity interest in the selling securityholder but has voting and dispositive power over
the registrable securities. Lawrence Keele is a principal of Oaktree Capital Management LLC
and is the portfolio manager for the selling securityholder. Mr.&nbsp;Keele, Oaktree Capital
Management LLC and all employees and members of Oaktree Capital Management LLC disclaim
beneficial ownership of the registrable securities, except for their pecuniary interest
therein.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">40)&nbsp;&nbsp;</TD>
    <TD>Oaktree Capital Management LLC is the investment manager of the selling securityholder with
respect to the registrable securities held by this selling securityholder. It does not own
any equity interest in the selling securityholder but has voting and dispositive power over
the registrable securities. Lawrence Keele is a principal of Oaktree Capital Management LLC
and is the portfolio manager for the selling securityholder. Mr.&nbsp;Keele, Oaktree Capital
Management LLC and all employees and members of Oaktree Capital Management LLC disclaim
beneficial ownership of the registrable securities, except for their pecuniary interest
therein.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">41)&nbsp;&nbsp;</TD>
    <TD>Oaktree Capital Management LLC is the investment manager of the selling securityholder with
respect to the registrable securities held by this selling securityholder.</TD>
</TR>

</TABLE>
<DIV align="left"><FONT size="1">

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<P align="center" style="font-size: 10pt">35
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<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;&nbsp;&nbsp;</TD>
    <TD>It does not own any equity interest in the selling securityholder but has voting and
dispositive power over the registrable securities. Lawrence Keele is a principal of Oaktree
Capital Management LLC and is the portfolio manager for the selling securityholder. Mr.
Keele, Oaktree Capital Management LLC and all employees and members of Oaktree Capital
Management LLC disclaim beneficial ownership of the registrable securities, except for their
pecuniary interest therein.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">42)&nbsp;&nbsp;</TD>
    <TD>Oaktree Capital Management LLC is the investment manager of the selling securityholder with
respect to the registrable securities held by this selling securityholder. It does not own
any equity interest in the selling securityholder but has voting and dispositive power over
the registrable securities. Lawrence Keele is a principal of Oaktree Capital Management LLC
and is the portfolio manager for the selling securityholder. Mr.&nbsp;Keele, Oaktree Capital
Management LLC and all employees and members of Oaktree Capital Management LLC disclaim
beneficial ownership of the registrable securities, except for their pecuniary interest
therein.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">43)&nbsp;&nbsp;</TD>
    <TD>Oaktree Capital Management LLC is the investment manager of the selling securityholder with
respect to the registrable securities held by this selling securityholder. It does not own
any equity interest in the selling securityholder but has voting and dispositive power over
the registrable securities. Lawrence Keele is a principal of Oaktree Capital Management LLC
and is the portfolio manager for the selling securityholder. Mr.&nbsp;Keele, Oaktree Capital
Management LLC and all employees and members of Oaktree Capital Management LLC disclaim
beneficial ownership of the registrable securities, except for their pecuniary interest
therein.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">44)&nbsp;&nbsp;</TD>
    <TD>Gregory R. Levinson has sole voting and dispositive power over the registrable securities
held by this selling securityholder.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">45)&nbsp;&nbsp;</TD>
    <TD>Oaktree Capital Management LLC is the investment manager of the selling securityholder with
respect to the registrable securities held by this selling securityholder. It does not own
any equity interest in the selling securityholder but has voting and dispositive power over
the registrable securities. Lawrence Keele is a principal of Oaktree Capital Management LLC
and is the portfolio manager for the selling securityholder. Mr.&nbsp;Keele, Oaktree Capital
Management LLC and all employees and members of Oaktree Capital Management LLC disclaim
beneficial ownership of the registrable securities, except for their pecuniary interest
therein.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">46)&nbsp;&nbsp;</TD>
    <TD>Pursuant to investment agreements, each of S.A.C. Capital
Advisors, LLC, and S.A.C. Capital Management, LLC, share all
investment and voting power with respect to the registrable
securities held by S.A.C. Arbitrage Fund, LLC. Steven A. Cohen
controls both S.A.C. Capital Advisors, LLC, and S.A.C. Capital
Management, LLC. Each of S.A.C. Capital Advisors, LLC, S.A.C. Capital
Management, LLC, and Mr. Cohen disclaim beneficial ownership of any
of the registrable securities.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">47)&nbsp;&nbsp;</TD>
    <TD>John Gottfurcht, George Douglas and Amy Jo Gottfurcht have voting and dispositive power over
the registrable securities held by this selling securityholder.</TD>
</TR>

</TABLE>
<DIV align="left"><FONT size="1">

</FONT></DIV>
<P align="center" style="font-size: 10pt">36
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<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">48)&nbsp;&nbsp;</TD>
    <TD>John Gottfurcht, George Douglas and Amy Jo Gottfurcht have voting and dispositive power over
the registrable securities held by this selling securityholder.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">49)&nbsp;&nbsp;</TD>
    <TD>Christian Menestrier, the chief executive officer of CooperNeff Advisors, Inc., has sole
voting and dispositive power over the registrable securities held by this selling
securityholder.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">50)&nbsp;&nbsp;</TD>
    <TD>John Gottfurcht, George Douglas and Amy Jo Gottfurcht have voting and dispositive power over
the registrable securities held by this selling securityholder.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">51)&nbsp;&nbsp;</TD>
    <TD>Forest Investment Management LLC has sole voting and dispositive power over the registrable
securities held by this selling securityholder. Forest Investment Management LLC is wholly
owned by Forest Partners II LP. Michael A. Boyd Inc. is the General Partner of Forest
Partners II LP, and Michael A. Boyd is the sole owner of Michael A. Boyd Inc.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">52)&nbsp;&nbsp;</TD>
    <TD>Oaktree Capital Management LLC is the investment manager of the selling securityholder with
respect to the registrable securities held by this selling securityholder. It does not own
any equity interest in the selling securityholder but has voting and dispositive power over
the registrable securities. Lawrence Keele is a principal of Oaktree Capital Management LLC
and is the portfolio manager for the selling securityholder. Mr.&nbsp;Keele, Oaktree Capital
Management LLC and all employees and members of Oaktree Capital Management LLC disclaim
beneficial ownership of the registrable securities, except for their pecuniary interest
therein.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">53)&nbsp;&nbsp;</TD>
    <TD>CooperNeff Advisors, Inc. has sole investment control and shared voting power over the
registrable securities held by this selling securityholder. Christian Menestrier is the chief
executive officer of CooperNeff Advisors, Inc.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">54)&nbsp;&nbsp;</TD>
    <TD>S. Donald Sussman has sole voting and dispositive power over the registrable securities held
by this selling securityholder.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">55)&nbsp;&nbsp;</TD>
    <TD>SuttonBrook Capital Management LP, a registered investment advisor, has sole voting and
dispositive power over the registrable securities held by this selling securityholder.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">56)&nbsp;&nbsp;</TD>
    <TD>John Gottfurcht, George Douglas and Amy Jo Gottfurcht have voting and dispositive power over
the registrable securities held by this selling securityholder.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">57)&nbsp;&nbsp;</TD>
    <TD>John Gottfurcht, George Douglas and Amy Jo Gottfurcht have voting and dispositive power over
the registrable securities held by this selling securityholder.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">58)&nbsp;&nbsp;</TD>
    <TD>John Gottfurcht, George Douglas and Amy Jo Gottfurcht have voting and dispositive power over
the registrable securities held by this selling securityholder.</TD>
</TR>

</TABLE>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10pt">37
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left"><FONT size="1">

</FONT></DIV>
<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">59)&nbsp;&nbsp;</TD>
    <TD>John Gottfurcht, George Douglas and Amy Jo Gottfurcht have voting and dispositive power over
the registrable securities held by this selling securityholder.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">60)&nbsp;&nbsp;</TD>
    <TD>Dominic Lynch has sole voting and dispositive power over the
registrable securities held by this selling securityholder.</TD>
</TR>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">61)&nbsp;&nbsp;</TD>
    <TD>John Gottfurcht, George Douglas and Amy Jo Gottfurcht have voting and dispositive power over
the registrable securities held by this selling securityholder.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">62)&nbsp;&nbsp;</TD>
    <TD>John Succo, Shad Stastney and Sky Lucas have voting and dispositive power over the
registrable securities held by this selling securityholder.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">63)&nbsp;&nbsp;</TD>
    <TD>Forest Investment Management LLC has sole voting and dispositive power over the registrable
securities held by this selling securityholder. Forest Investment Management LLC is wholly
owned by Forest Partners II LP. Michael A. Boyd Inc. is the General Partner of Forest
Partners II LP, and Michael A. Boyd is the sole owner of Michael A. Boyd Inc.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">64)&nbsp;&nbsp;</TD>
    <TD>Argent International Management Company, LLC, Nathanial Brown and Robert Richardson have
voting and dispositive power over the registrable securities held by this selling
securityholder.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">65)&nbsp;&nbsp;</TD>
    <TD>Forest Investment Management LLC has sole voting and dispositive power over the registrable
securities held by this selling securityholder. Forest Investment Management LLC is wholly
owned by Forest Partners II LP. Michael A. Boyd Inc. is the General Partner of Forest
Partners II LP, and Michael A. Boyd is the sole owner of Michael A. Boyd Inc.</TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>


<P align="center" style="font-size: 10pt">38
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="111"></A>
</DIV>

<P align="center" style="font-size: 10pt"><B>PLAN OF DISTRIBUTION</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The selling securityholders and their successors, which includes their
transferees, distributees, pledgees or donees or their successors, may sell the
notes and the underlying common stock directly to purchasers or through
underwriters, broker-dealers or agents. Underwriters, broker-dealers or agents
may receive compensation in the form of discounts, concessions or commissions
from the selling securityholders or the purchasers. These discounts,
concessions or commissions may be in excess of those customary in the types of
transactions involved.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The notes and the underlying common stock may be sold in one or more transactions :


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>at fixed prices;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>at prevailing market prices at the time of sale;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>at prices related to such prevailing market prices;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>at varying prices determined at the time of sale; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>at negotiated prices.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Such sales may be effected in transactions in the following manner (which
may involve crosses or block transactions):


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>on any national securities exchange or quotation service on
which the notes or the common stock may be listed or quoted at the
time of sale;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in the over-the-counter market;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in transactions otherwise than on such exchanges or services or in the over-the-counter market;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>through the writing of options, whether such options are
listed on an options exchange or otherwise; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>through the settlement of short sales.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Selling securityholders may enter into hedging transactions with
broker-dealers or other financial institutions which may in turn engage in
short sales of the notes or the underlying common stock and deliver these
securities to close out such short positions, or lend or pledge the notes or
the common stock into which the notes are convertible to broker-dealers that in
turn may sell these securities.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;From time to time, one or more of the selling securityholders may
distribute, devise, gift, pledge, hypothecate or grant a security interest in
some or all of the securities owned by them. Any such distributees, devisees or
donees will be deemed to be selling securityholders. Any such pledges, secured
parties or persons to whom the securities have been hypothecated will, upon
foreclosure in the event of default, be deemed to be selling securityholders.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The aggregate proceeds to the selling securityholders from the sale of the
notes or underlying common stock will be the purchase price of the notes or
common stock less any discounts and commissions. A selling securityholder
reserves the right to accept and, together with their agents, to reject, any
proposed purchase of notes or common stock to be made directly or through
agents. We will not receive any of the proceeds from this offering.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our underlying common stock is quoted on the Nasdaq National Market. We do
not intend to list the notes for trading on any national securities exchange or
on the Nasdaq National Market. We cannot guarantee that any trading market will
develop for the notes.


<P align="center" style="font-size: 10pt">39
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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The notes and underlying common stock may be sold in some states only
through registered or licensed brokers or dealers. The selling securityholders
and any underwriters, broker-dealers or agents that participate in the sale of
the notes and common stock into which the notes are convertible may be
&#147;underwriters&#148; within the meaning of Section&nbsp;2(11) of the Securities Act. Any
discounts, commissions, concessions or profit they earn on any resale of the
shares may be underwriting discounts and commissions under the Securities Act.
Selling securityholders who are &#147;underwriters&#148; within the meaning of Section
2(11) of the Securities Act will be subject to the prospectus delivery
requirements of the Securities Act. The selling securityholders have
acknowledged that they understand their obligations to comply, and have agreed
to comply, with the prospectus delivery requirements and other provisions of
the Securities Act and the Exchange Act, and the respective rules thereunder,
particularly Regulation&nbsp;M thereunder, in connection with any offering of the
securities offered hereby.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, any securities covered by this prospectus which qualify for
sale pursuant to Rule&nbsp;144 or Rule&nbsp;144A of the Securities Act may be sold under
Rule&nbsp;144 or Rule&nbsp;144A rather than pursuant to this prospectus. A selling
securityholder may not sell any notes or common stock described herein and may
not transfer, devise or gift such securities by other means not described in
this prospectus.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If required, the specific notes or common stock to be sold, the names of
the selling securityholders, the respective purchase prices and public offering
prices, the names of any agent, dealer or underwriter, and any applicable
commissions or discounts with respect to a particular offer will be set forth
in an accompanying prospectus supplement or, if appropriate, a post-effective
amendment to the registration statement of which this prospectus is a part.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the registration rights agreement filed as an exhibit to the
registration statement of which this prospectus is a part, we and the selling
securityholders will be indemnified by each other against certain liabilities,
including certain liabilities under the Securities Act or will be entitled to
contribution in connection with these liabilities.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have agreed to pay substantially all of the expenses incidental to the
registration, offering and sale of the notes and underlying common stock to the
public other than applicable transfer taxes and commissions, fees and discounts
of underwriters, brokers, dealers and agents.


<P align="center" style="font-size: 10pt">40
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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="112"></A>
</DIV>

<P align="center" style="font-size: 10pt"><B>DESCRIPTION OF THE NOTES</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Henry Schein, Inc. issued the notes under the indenture dated as of August
9, 2004, between Henry Schein, Inc. and The Bank of New York, as trustee. The
terms of the notes include those provided in the indenture, the notes and those
provided in the registration rights agreement dated as of August&nbsp;9, 2004,
between Henry Schein, Inc. and the initial purchasers of the notes.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following description is only a summary of the material provisions of
the notes, the indenture and the registration rights agreement. We urge you to
read these documents in their entirety because they, and not this description,
define your rights as holders of the notes. You may request copies of these
documents at our address set forth below under &#147;Where You Can Find More
Information.&#148;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;When we refer to &#147;Henry Schein&#148; in this &#147;Description of the Notes,&#148; we
refer only to Henry Schein, Inc., a Delaware corporation, and not its
subsidiaries.


<P align="left" style="font-size: 10pt"><B>Brief Description of the Notes</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The notes:


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>are limited to $240&nbsp;million aggregate principal amount;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>bear interest at a rate of 3.00% per year, payable on
February&nbsp;15 and August&nbsp;15 of each year beginning on February&nbsp;15,
2005;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>bear contingent interest during any six-month interest period
beginning August&nbsp;20, 2010 if the average trading price of the notes
is above the levels described below under &#147;Contingent Interest;&#148;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>are general senior unsecured obligations of Henry Schein,
and, as unsecured indebtedness of Henry Schein, are effectively
subordinated to all secured indebtedness of Henry Schein and all
indebtedness and liabilities of Henry Schein&#146;s subsidiaries;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>are convertible into our common stock as described below
under &#147;Conversion Rights;&#148;</TD>
</TR>

</TABLE>


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the conversion rate and the conversion price are
subject to adjustments as described under &#147;&#151; Conversion Rights
&#151; Conversion Rate Adjustments;&#148;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>upon conversion, we will satisfy our conversion
obligation with respect to the principal amount of the notes
to be converted in cash with any remaining amount to be
satisfied in shares of our common stock, as described under
&#147;Payment Upon Conversion &#151; Cash Payment of Principal Upon
Conversion;&#148;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if you convert your notes in connection with a
fundamental change, under certain circumstances, you will also
receive accrued and unpaid interest to the conversion date,
plus a make whole premium, which will be an amount determined
as set forth under &#147;Determination of the Make Whole Premium&#148;
and which will be payable in the same form of consideration
into which our common stock has been exchanged or converted;</TD>
</TR>

</TABLE>


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>are redeemable at our option beginning on August&nbsp;20, 2010 at
a redemption price equal to 100% of the aggregate principal amount
of the notes, plus accrued and unpaid interest to the redemption
date, as set forth under &#147;Optional Redemption by Henry Schein;&#148;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>are subject to repurchase by us, at your option, on August
15, 2010, August&nbsp;15, 2014, August&nbsp;15, 2019, August&nbsp;15, 2024 and
August&nbsp;15, 2029 at a repurchase price equal to 100% of the aggregate
principal amount of the notes plus accrued and unpaid interest to
the repurchase date, as set forth under &#147;Repurchase of Notes at the
Option of the Holder &#151; Optional Put;&#148;
</TD>
</TR>
</TABLE>

<P align="center" style="font-size: 10pt">41
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<DIV style="font-family: 'Times New Roman',Times,serif">

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>are subject to repurchase by us, at your option, if a
fundamental change occurs, at a repurchase price equal to 100% of
the aggregate principal amount of the notes plus accrued and unpaid
interest to the repurchase date, plus, under certain circumstances,
a make whole premium, which will be in an amount determined as set
forth under &#147;Determination of the Make Whole Premium&#148; and which will
be payable in the same form of consideration into which our common
stock has been exchanged or converted, as set forth under &#147;&#151;
Repurchase at the Option of the Holder &#151; Fundamental Change Put,&#148;
and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>are due on August&nbsp;15, 2034, unless earlier converted,
redeemed by us at our option or repurchased by us at your option.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the indenture, we agreed, and by acceptance of a beneficial interest
in the notes, each beneficial owner of notes is deemed to have agreed, among
other things, for United States federal income tax purposes, to treat the notes
as indebtedness that is subject to the regulations governing contingent payment
debt instruments. For purposes of those regulations, holders will be required
to treat the fair market value of any stock received upon any conversion or
repurchase of the notes as a contingent payment and will recognize ordinary
income, if any, upon a sale, exchange, conversion or redemption of the notes at
a gain. Although the discussion herein assumes that this treatment is correct,
the characterization of instruments such as the notes and the application of
those regulations are uncertain in several respects. See &#147;Certain U.S. Federal
Income Tax Considerations.&#148;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The indenture does not contain any financial covenants and does not
restrict us from paying dividends, incurring additional indebtedness or issuing
or repurchasing our other securities. The indenture also does not protect
holders in the event of a highly leveraged transaction or a fundamental change
of Henry Schein except to the extent described below under &#147;Repurchase at the
Option of the Holder &#151; Fundamental Change Put.&#148;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No sinking fund is provided for the notes. The notes are not subject to
legal or covenant defeasance.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The notes will be issued only in registered form, in minimum denominations
of $1,000 and in integral multiples of $1,000 above that amount. The notes will
initially be represented by one or more global notes, deposited with the
trustee as custodian for DTC, and registered in the name of Cede &#038; Co., DTC&#146;s
nominee. If certificated notes are issued, you may present them for conversion,
registration of transfer or exchange at our office or agency in New York City,
which initially will be an office of the trustee in New York City.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You may not sell or otherwise transfer the notes and the common stock
issuable upon conversion of the notes except in compliance with the provisions
set forth below under &#147;Notice to Investors.&#148;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For information regarding conversion, registration of transfer and
exchange of notes represented by global securities, see &#147;Form, Denomination and
Registration.&#148;


<P align="left" style="font-size: 10pt"><B>Interest</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The notes bear interest from August&nbsp;9, 2004 at the rate of 3.00% per year.
We will pay interest on the notes semi-annually on February&nbsp;15 and August&nbsp;15 of
each year to the holders of record at the close of business on the preceding
February 1 and August&nbsp;1, respectively, beginning February&nbsp;15, 2005. There are
two exceptions to the preceding sentence:


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In general, we will not pay accrued and unpaid interest on
any note that is converted into our common stock. See &#147;&#151; Conversion
Rights.&#148; If a holder of notes converts its notes after a record date
for an interest payment but prior to the corresponding interest
payment date, it will receive interest accrued and paid on these
notes on the interest payment date, notwithstanding the conversion
of these notes prior to such interest payment date, because that
holder will have been the holder of record on the corresponding
record date. But, at the time such holder surrenders those notes for
conversion, it will be required to remit to us an amount equal to
the interest that will be paid on the interest payment date. The
preceding sentence does not apply to a holder which has delivered a
notice of conversion to us or which converts, after a record date
for an interest</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">42
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<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"><TR valign="top" style="font-size: 10pt; color: #textcolor#; background: #bgcolor#">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>payment date but prior to the corresponding interest payment date,
notes that we call for redemption prior to such conversion on a
redemption date that is on or prior to the third business day after
such interest payment date.</TD>
</TR>

</TABLE>


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>We will pay interest to a person other than the holder of
record on the record date if we redeem, or holders elect to require
us to repurchase, the notes on a date that is after the record date
and on or prior to the corresponding interest payment date. In this
instance, we will pay accrued and unpaid interest on the notes being
redeemed to, but excluding, the redemption date to the same person
to whom we will pay the principal of those notes.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><B>Contingent Interest</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We will pay contingent interest to the holders of notes during any
six-month period commencing on August&nbsp;20, 2010, if the average trading price
(as defined below under &#147;Conversion Rights &#151; Conversion Upon Satisfaction of
Market Price Conditions&#148;) of the notes for the five consecutive trading days
ending on the second trading day immediately preceding the first day of the
applicable six-month period equals or exceeds 120% of the principal amount of
the notes.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The rate of contingent interest payable in respect of any six-month period
will equal 0.25% of the average trading price of the notes over the measuring
period triggering the contingent interest payment.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The six-month periods for which contingent interest may be payable are
from (and including) February&nbsp;15 to (but excluding) August&nbsp;15, and from (and
including) August&nbsp;15 to (but excluding) February&nbsp;15; provided that the first
six month period, if contingent interest is due, will commence on August&nbsp;20,
2010. We will pay contingent interest, if any, on the notes on February&nbsp;15 and
August&nbsp;15 of each year to the holders of record at the close of business on the
preceding February 1 and August&nbsp;1, respectively.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon determination that note holders will be entitled to receive
contingent interest which may become payable during a relevant six-month
period, on or prior to the start of such six-month period, we will issue a
press release and publish such information on our website.


<P align="left" style="font-size: 10pt"><B>Interest and Principal Payments Generally</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except as provided below, we will pay interest, contingent interest,
additional interest and default rate interest, which we refer to herein
collectivity as &#147;interest&#148;, on:


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>notes represented by a global security to DTC by wire
transfer in immediately available funds;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>definitive notes having an aggregate principal amount of
$5,000,000 or less by check mailed to the holders of these notes;
and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>definitive notes having an aggregate principal amount of more
than $5,000,000 by wire transfer in immediately available funds at
the election of the holders of these notes.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At maturity, we will pay interest on the definitive notes at our office or
agency in New York City, which initially will be the office or agency of the
trustee in New York City.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We will pay principal on:


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>notes represented by a global security to DTC in immediately available funds; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>definitive notes at our office or agency in New York City,
which initially will be the office or agency of the trustee in New
York City.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt">43
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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest is computed on the basis of a 360-day year consisting of twelve
30-day months. If a payment date is not a business day, payment will be made on
the next succeeding business day, and no additional interest will accrue in
respect of such payment.


<P align="left" style="font-size: 10pt"><B>Conversion Rights</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Holders of notes may convert any outstanding notes (or portions of
outstanding notes) at a conversion rate of 10.7898 shares per $1,000 principal
amount of notes under the circumstances described below. The conversion rate
is, however, subject to adjustment as described below.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon conversion, we will satisfy our conversion obligation with respect to
the principal amount of the notes to be converted in cash, with any remaining
amount to be satisfied in shares of our common stock, as described under
&#147;Payment Upon Conversion &#151; Cash Payment of Principal Upon Conversion.&#148; A holder
may convert only in denominations of $1,000 principal amount and whole
multiples thereof.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We will not issue fractional shares of our common stock upon conversion of
notes. Instead, we will pay a cash adjustment based upon the closing price of
our common stock on the trading day immediately preceding the conversion date.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>General</I>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Holders may surrender notes for conversion prior to stated maturity if any
of the following conditions is satisfied:


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>during any fiscal quarter, if the closing price of our common
stock for a period of at least 20 trading days in the period of 30
consecutive trading days ending on the last trading day of the
preceding fiscal quarter is more than 130% of the conversion price
on that 30th trading day;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>during the five business-day period following any 10
consecutive trading-day period in which the average of the trading
prices of the notes, as determined following a request from a holder
to make a determination, for that 10 trading-day period was less
than 98% of the average conversion value for the notes during that
period, subject to certain limitations described below;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if the notes have been called for redemption;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>upon the occurrence of a fundamental change, as described below; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>upon the occurrence of specified corporate transactions discussed below.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you have exercised your right to require us to repurchase your notes as
described below, you may convert the notes only if you withdraw your notice of
exercise of repurchase and convert your notes prior to the close of business on
the applicable repurchase date.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Conversion Upon Satisfaction of Market Price Conditions</I>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A holder may surrender any of its notes for conversion into our common
stock during any fiscal quarter if the closing price of our common stock, for
at least 20 trading days in the 30 trading-day period ending on the last day of
the preceding fiscal quarter, exceeds 130% of the conversion price per note on
that 30th trading day.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The &#147;closing price&#148; of our common stock on any date means the closing per
share sale price (or if no closing sale price is reported, the average of the
bid and ask prices or, if more than one in either case, the average of the
average bid and the average ask prices) on such date as reported on the Nasdaq
National Market or, if our common stock is not traded on the Nasdaq National
Market, on the principal securities exchange or inter-dealer quotation system
on which our common stock is then traded. In the absence of such quotations, we
are entitled to determine the sales price on the basis of these quotations as
we consider applicable.


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<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The &#147;conversion price&#148; per note as of any day equals the quotient of the
principal amount of a note, divided by the number of shares of common stock
issuable upon conversion of the notes on that day. The conversion agent, which
is The Bank of New York, will, on our behalf, determine daily if the notes are
convertible as a result of the closing price of our common stock and notify us
and the trustee.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A holder also may surrender any of its notes for conversion into our
common stock during the five business-day period following any 10 consecutive
trading-day period in which the average of the trading prices for the notes for
that 10 trading-day period was less than 98% of the average conversion value
for the notes during that period; <I>provided, however</I>, that after August&nbsp;15,
2029, if on the date of any conversion pursuant to this condition and the notes
are not otherwise convertible, the closing sale price of our common stock is
between the conversion price and 130% of the conversion price, the holder will
receive cash equal to the principal amount of the notes being converted.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding anything to the contrary herein, the conversion agent
shall have no obligation to determine the trading price of the notes unless we
have requested that it make such determination; and we have no obligation to
make such request unless so requested by a holder. At such time as a written
request is made by a holder, we shall instruct the conversion agent to
determine the trading price per note beginning on the next trading day and on
each successive trading day for 10 consecutive trading days until the trading
price per note is greater than or equal to 98% of the average conversion value.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Conversion value&#148; is equal to the product of the closing price for our
common stock on a given day multiplied by the then current conversion rate,
which is the number of shares of common stock into which each $1,000 principal
amount note is then convertible. &#147;Average conversion value&#148; is equal to the sum
of the conversion values for each trading day in the relevant period divided by
the number of trading days in the period.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The &#147;trading price&#148; of a note on any date of determination means the
average of the secondary market bid quotations per note obtained by us or the
conversion agent for $10&nbsp;million aggregate principal amount of notes at
approximately 3:30 p.m., New York City time, on such determination date from
three independent nationally recognized securities dealers we select, provided
that if:


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>at least three such bids cannot reasonably be obtained by us
or the conversion agent, but two such bids are obtained, then the
average of the two bids shall be used, and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>only one such bid can reasonably be obtained by us or the
conversion agent, this one bid shall be used; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>either we or the conversion agent cannot reasonably obtain at
least one bid for $10&nbsp;million aggregate principal amount of the
notes from a nationally recognized securities dealer, or in our
reasonable judgment, the bid quotations are not indicative of the
secondary market value of the notes,</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">then the trading price of the notes will equal less than 98% of (a)&nbsp;the
then-applicable conversion rate of the notes multiplied by (b)&nbsp;the closing
price of our common stock on such determination date, appropriately adjusted.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The conversion agent will initially be The Bank of New York. We may change
the conversion agent, but the conversion agent will not be our affiliate. The
conversion agent will solicit bids from securities dealers that are believed by
us to be willing to bid for the notes.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Conversion Upon Notice of Redemption</I>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A holder may surrender for conversion any notes called for redemption at
any time prior to the close of business on the day that is one business day
prior to the redemption date, even if it is not otherwise convertible at such
time. If a holder has already delivered a purchase notice or a fundamental
change purchase notice with respect to a note, however, the holder may not
surrender that note for conversion until the holder has withdrawn the notice in
accordance with the indenture.


<P align="center" style="font-size: 10pt">45
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<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Conversion Upon a Fundamental Change</I>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If a fundamental change (as defined under &#147;Repurchase of Notes at the
Option of the Holder &#151; Fundamental Change Put&#148;) occurs, a holder will have the
right to convert notes at any time beginning 15 calendar days prior to the date
announced by us as the anticipated effective date of the fundamental change and
until and including the date which is 15 calendar days after the date that is
the actual effective date of the fundamental change. If a holder converts notes
in connection with a fundamental change, the holder will receive:


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>cash equal to the principal amount of the notes being
converted with any remaining amount to be satisfied in shares of our
common stock (if the notes are surrendered for conversion prior to
the earlier of the actual effective date of the fundamental change
and the record date for receiving distributions in connection with a
fundamental change) or cash equal to the principal amount of the
notes being converted with any remaining amount to be satisfied in
the same form of consideration into which our common stock has been
exchanged or converted (if notes are surrendered for conversion
after such date; provided that, if such date is the record date, the
holder will receive such consideration on the actual effective
date);</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>under certain circumstances, a make whole premium, which will
be in an amount determined as set forth under &#147;&#151; Determination of
the Make Whole Premium&#148; and which will be payable on the fundamental
change repurchase date in the consideration in which our common
stock has been exchanged or converted; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if a holder is entitled to a make whole premium, accrued and
unpaid interest to, but excluding, the conversion date.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If a holder has submitted any or all of such holder&#146;s notes for
repurchase, such holder&#146;s conversion rights on the notes so subject to
repurchase will expire at the close of business on the business day preceding
the repurchase date, unless we default in the payment of the repurchase price.
If a holder has submitted any notes for repurchase, such notes may be converted
only if the holder submits a withdrawal notice, and if the notes are evidenced
by a global note, the holder must comply with appropriate DTC procedures.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Conversion Upon Specified Corporate Transactions</I>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If:


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>we distribute to all holders of our common stock certain
rights, exercisable for a period expiring within 60&nbsp;days of the date
of distribution, entitling them to purchase common stock at less
than the current market price of our common stock (or securities
convertible into our common stock) on the record date for such
distribution, or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>we distribute to all holders of our common stock our assets,
debt securities or certain rights to purchase our securities, which
distribution has a per share value exceeding 5% of the closing price
of our common stock on the business day preceding the declaration
date for such distribution,</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">we must notify the holders of notes at least 20&nbsp;days prior to the ex-dividend
date for such distribution. Once we have given such notice, holders may
surrender their notes for conversion at any time until the earlier of close of
business on the business day prior to the ex-dividend date or our announcement
that such distribution will not take place. No adjustment to the ability of a
holder to convert will be made if the holder will otherwise participate in the
distribution without conversion.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, if we are party to a consolidation, merger or binding share
exchange pursuant to which our common stock would be converted into cash,
securities or other property, a holder may surrender notes for conversion at
any time from and after the date which is 15&nbsp;days prior to the anticipated
effective date of the transaction until 15&nbsp;days after the actual effective date
of such transaction. If we are a party to a consolidation, merger or binding
share exchange pursuant to which our common stock is converted into cash,
securities or other


<P align="center" style="font-size: 10pt">46
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<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="left" style="font-size: 10pt">property, then at the effective time of the transaction, the right to
convert a note into our common stock will be changed into a right to convert it
into the kind and amount of cash, securities or other property which the holder
would have received if the holder had converted its notes immediately prior to
the transaction. If the transaction also constitutes a &#147;fundamental change,&#148; as
defined below, the holder can require us to purchase all or a portion of its
notes as described under &#147;Repurchase of Notes at Option of Holders &#151;
Fundamental Change Put.&#148;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Conversion Procedures</I>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except as set forth in the next paragraph, on conversion of a note, a
holder will not receive any interest that has accrued on these notes since the
prior interest payment date. By delivering to the holder the conversion value,
together with a cash payment, if any, in lieu of fractional shares, we will
satisfy our obligation with respect to the notes. That is, accrued but unpaid
interest will be deemed to be paid in full rather than canceled, extinguished
or forfeited.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We will not pay accrued and unpaid interest on any note that is converted
into our common stock, except under certain limited circumstances described
below. If a holder of notes converts after a record date for an interest
payment but prior to the corresponding interest payment date, it will receive
on the interest payment date interest accrued and paid on such notes,
notwithstanding the conversion of such notes prior to such interest payment
date because such holder will have been the holder of record on the
corresponding record date. However, at the time such holder surrenders such
notes for conversion, it must pay us an amount equal to the interest that has
accrued and will be paid on the interest payment date. The preceding sentence
does not apply, however, to a holder that converts, after a record date for an
interest payment but prior to the corresponding interest payment date, notes
that are called by us for redemption prior to such conversion on a redemption
date that is on or prior to the third business day after such interest payment
date. Accordingly, if we redeem notes on a date after a record date for an
interest payment but on or prior to the third business day after the
corresponding interest payment date, and prior to the redemption date the
holder of such notes chooses to convert such notes, the holder will not be
required to pay us, at the time it surrenders such notes for conversion, the
amount of interest on such notes it will receive on the interest payment date.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You will not be required to pay any issue or transfer taxes or duties
relating to the issuance or delivery of our common stock if you exercise your
conversion rights, but you will be required to pay any issue or transfer taxes
or duties which may be payable relating to any transfer involved in the
issuance or delivery of common stock in a name other than yours. If you convert
any note within two years after its original issuance, the common stock
issuable upon conversion will not be issued or delivered in a name other than
yours unless the applicable restrictions on transfer have been satisfied. See
&#147;Notice to Investors.&#148; Certificates representing shares of our common stock
will be issued or delivered only after all applicable issue and transfer taxes
and duties, if any, payable by you have been paid.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To convert interests in a note represented by a global security, you must
deliver to The Depository Trust Company, or DTC, the appropriate instruction
form for conversion pursuant to DTC&#146;s conversion program. To convert a note
represented by a definitive security, you must:


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>complete the conversion notice on the back of the notes (or a
facsimile thereof);</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>deliver the completed conversion notice and the notes to be
converted to the specified office of the conversion agent;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>pay all funds required, if any, relating to interest on the
notes to be converted to which you are not entitled; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>pay all issue and transfer taxes or duties, if any, as
described in the preceding paragraph.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The conversion date will be the date on which all of the foregoing
requirements have been satisfied. The notes will be deemed to have been
converted as of the close of business on the conversion date. Cash will be paid


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<P align="left" style="font-size: 10pt">and a certificate for any shares of our common stock into which the notes
are converted (and cash in lieu of any fractional shares) will be delivered as
soon as practicable on or after the conversion date.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The conversion agent, which will be initially The Bank of New York, will,
on our behalf, determine if the notes are convertible as a result of the market
price of our common stock on a daily basis, in the case of the right to convert
upon satisfaction of market price conditions, and at the end of each quarter,
in the case of the other bases upon which holders may convert their notes, in
each case, notifying us and the trustee.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Conversion Rate Adjustments</I>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We will adjust the initial conversion rate for certain events, including:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;the issuance of shares of our common stock to holders of our common
stock as a dividend or a distribution on our common stock, in which event the
conversion rate will be adjusted by multiplying the conversion rate by a
fraction:


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the numerator of which is the sum of (a)&nbsp;the number of shares
of our common stock outstanding at the close of business on the
record date fixed for the dividend or distribution plus (b)&nbsp;the
total number of shares constituting the dividend or distribution;
and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the denominator of which is the number of shares of our
common stock outstanding at the close of business on the record date
fixed for the dividend or distribution;</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;subdivisions, splits and combinations of our common stock, in which
event the conversion rate will be proportionately increased or reduced;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;issuance by us of rights or warrants to all holders of our common
stock entitling holders to subscribe for or purchase shares of our common stock
(or securities convertible into our common stock) for less than (or having a
conversion price per share less than) their current market price, in which
event the conversion rate will be adjusted by multiplying the conversion rate
by a fraction:


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the numerator of which is the sum of (a)&nbsp;the number of shares
of our common stock outstanding at the close of business on the
record date fixed for the distribution plus (b)&nbsp;the total number of
additional shares of our common stock offered for subscription or
purchase (or into which the convertible securities so offered are
convertible); and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the denominator of which is the sum of (a)&nbsp;the number of shares of our common stock outstanding at the close of business on
the record date fixed for the distribution plus (b)&nbsp;the total number
of shares of our common stock that the aggregate offering price of
the total number of shares offered (or the aggregate offering price
of the convertible securities so offered) for subscription or
purchase would purchase at the current market price;</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)&nbsp;distributions to all holders of our common stock of our assets, debt
securities, shares of our capital stock or rights or warrants to purchase our
securities (excluding (A)&nbsp;any dividend, distribution or issuance covered by
clause (1)&nbsp;or (3)&nbsp;above, (B)&nbsp;any dividend or distribution in connection with a
reclassification, change, consolidation, statutory share exchange, merger,
combination, sale or conveyance resulting in a change in the conversion
consideration pursuant to the fifth succeeding paragraph, and (C)&nbsp;any dividend
or distribution paid exclusively in cash), in which event the conversion rate
will be adjusted by multiplying the conversion rate by a fraction:


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the numerator of which is the current market
price of a share of our common stock; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the denominator of which is (a)&nbsp;the current
market price of a share of our common stock minus (b)&nbsp;the fair
market value, as determined by our board of directors, except
as described in the following paragraph, of the portion of
those assets, debt securities, shares</TD>
</TR>

</TABLE>

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<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"><TR valign="top" style="font-size: 10pt; color: #textcolor#; background: #bgcolor#">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>of capital stock or rights or warrants so distributed
applicable to one share of common stock.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the event that we make a distribution to all holders of our common stock
consisting of capital stock of, or similar equity interests in, a subsidiary,
the conversion rate will be adjusted based on the market value of the
securities so distributed relative to the market value of our common stock, in
each case based on the average of the closing sale prices of those securities
for the 10 trading days commencing on and including the fifth trading day after
the date on which &#147;ex-divided&#148; trading commences for such dividend or
distribution on the principal securities market on which the securities are
then traded;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5)&nbsp;distributions by us consisting exclusively of cash to all holders of
our common stock, in which event the conversion rate will be adjusted by
multiplying the conversion rate by a fraction:


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the numerator of which will be the current market price per
share of our common stock; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the denominator of which will be (a)&nbsp;the current market price
per share of our common stock minus (b)&nbsp;the amount per share of such
dividend or distribution; and</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6)&nbsp;purchases of our common stock pursuant to a tender offer made by us or
any of our subsidiaries to the extent that the same involves an aggregate
consideration that, together with:


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">(A)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the aggregate of cash and the fair market value of any other
consideration paid in any other tender offer by us or any of our
subsidiaries for our common stock expiring within the 12&nbsp;months preceding
the expiration of such tender offer for which no adjustment has been made,
plus</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">(B)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the aggregate amount of any all-cash distributions referred to in clause
(5)&nbsp;above to all holders of our common stock within 12&nbsp;months preceding
the expiration of such tender offer for which no adjustments have been
made,</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">exceeds 5% of our market capitalization on the expiration of such tender offer,
in which event the conversion rate will be adjusted by multiplying the
conversion rate by a fraction:



<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the numerator of which will be the product of (a)&nbsp;the number
of shares of our common stock outstanding (including any tendered shares) at the expiration of the tender offer and (b)&nbsp;the current
market price of a share of our common stock at such expiration time;
and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the denominator of which will be (a)&nbsp;the product of (X)&nbsp;the
number of shares of our common stock outstanding (including any
tendered shares) at the expiration of the tender offer and (Y)&nbsp;the
current market price of our common stock at such expiration time
minus (b)&nbsp;the amount by which such combined amounts exceeds 5% of
our market capitalization.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Current market price&#148; on any date means the average of the closing prices
per share of common stock (as adjusted) for the 10 consecutive trading days
prior to such date. Our &#147;market capitalization&#148;, on any date, means the product
of the current market price of our common stock as of the last time tenders
could have been made pursuant to such tender offer multiplied by the number of
shares of our common stock outstanding on such date.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If rights or warrants for which an adjustment to the conversion rate has
been made expire unexercised, the conversion rate will be readjusted to take
into account the actual number of such rights or warrants which were exercised.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If we were to issue rights pursuant to a rights plan, if holders of notes
exercising the right of conversion attaching thereto after the date the rights
separate from the underlying common stock are not entitled to receive the
rights that would otherwise be attributable (but for the date of conversion) to
the shares of common stock received upon conversion, the conversion rate will
be adjusted as though the rights were being distributed to holders of common
stock on the date of such separation. If such an adjustment is made and the
rights are later redeemed,


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<P align="left" style="font-size: 10pt">invalidated or terminated, then a corresponding reversing adjustment will
be made to the conversion rate on an equitable basis.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We will not be required to make an adjustment in the conversion rate
unless the adjustment would require a change of at least 1% in the conversion
rate; provided that we will carry forward any adjustments that are less than 1%
of the conversion rate, take such carried-forward adjustments into account in
any subsequent adjustments, and make such carried forward adjustments,
regardless of whether the aggregate adjustment is less than 1%, within one year
of the first such adjustment carried forward or if we have called the notes for
redemption.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If we:


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>reclassify or change our common stock (other than changes in
par value or resulting from a subdivision or combination); or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>consolidate or combine with or merge into or are a party to a
binding share exchange with any person or sell or convey to another
person all or substantially all of our property and assets,</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">and the holders of our common stock receive (or the common stock is converted
into) stock, other securities or other property or assets (including cash or
any combination thereof) with respect to or in exchange for their common stock,
then, the notes shall be converted into the kind and amount of shares of stock
and other securities or property or assets that the holders of the notes would
have been entitled to receive upon such reclassification, change, merger,
consolidation, combination, sale, conveyance or share exchange. At the
effective time of the transaction the holders of the notes may convert the
notes into the consideration they would have received if they had converted
their notes immediately prior to the reclassification, change, consolidation,
combination, merger, sale or conveyance. We may not become a party to any such
transaction unless its terms are consistent with the foregoing.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the event we elect to make a distribution described under (3)&nbsp;or (4)&nbsp;of
the first paragraph of this subsection &#147;&#151; Conversion Rate Adjustments,&#148; which,
in the case of (4), has a per share value equal to more than 5% of the closing
price of our shares of common stock on the business day immediately preceding
the declaration date for the distribution, we will be required to give notice
to the holders of notes at least 20&nbsp;days prior to the ex-dividend date for the
distribution and, upon the giving of notice, the notes may be surrendered for
conversion at any time until the close of business on the business day prior to
the ex-dividend date or until we announce that the distribution will not take
place. No adjustment to the conversion rate or the ability of a holder of a
note to convert will be made if the holder will otherwise participate in the
distribution without conversion.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the case of any distribution described under (4)&nbsp;of the first paragraph
of this subsection &#147;&#151; Conversion Rate Adjustments,&#148; in which (1)&nbsp;the fair
market value of such distribution applicable to one share of common stock
equals or exceeds the average of the closing prices of the common stock over
the 10 consecutive trading-day period immediately prior to the record date for
such distribution or (2)&nbsp;the average of the closing prices of the common stock
over the 10 consecutive trading-day period immediately prior to the record date
for such distribution exceeds the fair market value of such distribution by
less than $1.00, then, in each such case, rather than being entitled to an
adjustment in the conversion rate, adequate provision shall be made so that
each holder of a note shall have the right to receive upon conversion of a
note, in addition to shares of our common stock, the kind and amount of such
distribution such holder would have received if the holder had converted its
notes immediately prior to the record date for determining the shareholders
entitled to receive the distribution.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If a taxable distribution to holders of our common stock or other
transaction occurs which results in any adjustment of the conversion rate, you
may in certain circumstances be deemed to have received a distribution subject
to United States federal income tax as a dividend. In certain other
circumstances, the absence of an adjustment may result in a taxable dividend to
the holders of our common stock. See &#147;Certain U.S. Federal Income Tax
Considerations.&#148;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To the extent permitted by law, from time to time we may increase the
conversion rate by any amount for any period of at least 20&nbsp;days. In that case,
we will give at least 15&nbsp;days&#146; notice of the increase. We may also increase the
conversion rate, as our board of directors deems advisable to avoid or diminish
any income tax to


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<P align="left" style="font-size: 10pt">holders of our common stock resulting from any dividend or distribution of
stock (or rights to acquire stock) or from any event treated as such for income
tax purposes. In no event will we take any action that would require adjustment
to the conversion rate, nor will we adjust the conversion rate, if such
conversion rate adjustment would require us to issue, upon conversion of the
notes, a number of shares of our common stock that would require us to obtain
prior shareholder approval under the rules and regulations of the Nasdaq
National Market, and, if applicable, the rules of the exchange or quotation
system on which our common stock is then traded without obtaining such prior
shareholder approval.


<P align="left" style="font-size: 10pt"><B>Payment Upon Conversion</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We will satisfy in cash our conversion obligation with respect to the
principal amount of the notes to be converted, with any remaining amount to be
satisfied in shares of our common stock.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The settlement amount will be computed as follows:


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a cash amount equal to the lesser of (i)&nbsp;the aggregate
principal amount of the notes to be converted and (ii)&nbsp;the
applicable stock price (as defined below) multiplied by the
conversion rate then in effect; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if the product of the applicable stock price and the
conversion rate then in effect exceeds the aggregate principal
amount of the notes to be converted, a number of shares equal to (i)
the aggregate principal amount of notes to be converted divided by
1,000 and multiplied by (ii) (a)&nbsp;the conversion rate then in effect
minus (b) $1,000 divided by the applicable stock price.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Settlement in cash and/or shares of our common stock will occur on the
second trading day following the final trading day of the cash settlement
average period (as defined below). Such day will be the 22nd trading day
following our receipt of a holder&#146;s conversion notice (if such holder does not
retract such conversion notice and assuming the holder has satisfied all other
conversion requirements), unless conversion is:


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in connection with a redemption, in which case such day will
be the redemption date; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>during the period beginning twenty-five trading days
preceding the maturity date and ending one trading day preceding the
maturity date, in which case such day will be the maturity date.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The &#147;applicable stock price&#148; means, in respect of a conversion date, the
average closing sale price of our common stock over the twenty trading-day
period (the &#147;cash settlement average period&#148;);


<P>


<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>beginning on the trading day following our receipt of a
holder&#146;s conversion notice; provided, however, that, as described
below, if a holder submits its conversion notice during the period
beginning twenty-five trading days preceding the maturity date and
ending one trading day preceding the maturity date, the cash
settlement averaging period will end on the second trading day
preceding the maturity date;</TD>
</TR>

</TABLE>


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>ending on the second trading day preceding the redemption
date, if we have called the notes for redemption; and</TD>
</TR>

</TABLE>


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>ending on the second trading day preceding the maturity date,
with respect to conversion notices received during the period
beginning twenty-five trading days preceding the maturity date and
ending one trading day preceding the maturity date.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><B>Optional Redemption by Henry Schein</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prior to August&nbsp;20, 2010, the notes will not be redeemable at our option.
Beginning on August&nbsp;20, 2010, we may redeem the notes for cash at a redemption
price for a note equal to 100% of the aggregate principal amount thereof, as a
whole at any time, or from time to time in part. We will give not less than 20
days nor more than 60



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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="left" style="font-size: 10pt">days notice of redemption by mail to holders of notes. Notes or portions of
notes called for redemption will be convertible by the holder until the close
of business on the business day prior to the redemption date. In addition to
the amounts indicated above, the redemption price will include any accrued and
unpaid interest.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If we redeem less than all of the outstanding notes, the trustee shall
select the notes to be redeemed on a pro rata basis if permitted by the
procedures of DTC, or otherwise by lot, in principal amounts of $1,000 or
integral multiples of $1,000. If a portion of a holder&#146;s notes is selected for
partial redemption and the holder converts a portion of the notes, the
converted portion shall be deemed to be the portion selected for redemption.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any notice of redemption shall include, among other things:


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a statement regarding your right to convert the notes; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the date by which the notes called for redemption may be converted.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><b>Repurchase of Notes at the Option of Holder</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Optional
Put</I>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On August&nbsp;15, 2010, August&nbsp;15, 2014, August&nbsp;15, 2019, August&nbsp;15, 2024 and
August&nbsp;15, 2029, holders may require us to purchase any outstanding notes for
which the holder has properly delivered and not withdrawn a written purchase
notice at a price for a note equal to 100% of the aggregate principal amount
thereof, as a whole or in part, subject to certain additional conditions.
Holders may submit their notes for purchase to the paying agent at any time
from the opening of business on the date that is 20 business days prior to the
purchase date until the close of business on the business day prior to the
purchase date. The purchase price will also include any accrued and unpaid
interest.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We will be required to give notice on a date not less than 20 business
days prior to each purchase date to all holders at their addresses shown in the
register of the registrar, and to beneficial owners as required by applicable
law, stating the procedures that holders must follow to require us to purchase
their notes as described below.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The purchase notice given by each holder electing to require us to
purchase notes shall be given so as to be received by the paying agent no later
than the close of business on the third business day prior to the purchase date
and must state:


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the certificate numbers of the holder&#146;s notes to be delivered
for purchase;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the portion of the principal amount of notes to be purchased,
which must be $1,000 or an integral multiple of $1,000; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>that the notes are to be purchased by us pursuant to the
applicable provisions of the indenture and the notes.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A holder may withdraw any purchase notice by delivering a written notice
of withdrawal to the paying agent prior to the close of business on the
purchase date. The notice of withdrawal shall state:


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the principal amount being withdrawn;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the certificate numbers of the holder&#146;s notes being withdrawn; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the principal amount, if any, of the notes that remains subject to the purchase notice.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with any purchase offer, we will:


<P align="center" style="font-size: 10pt">52
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<DIV style="font-family: 'Times New Roman',Times,serif">

<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>comply with the provisions of Rule&nbsp;13e-4, Rule l4e-1 and any
other tender offer rules under the Exchange Act which may then be
applicable; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if necessary, file Schedule&nbsp;TO or any other required schedule
or form under the Exchange Act.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our obligation to pay the purchase price for a note for which a purchase
notice has been delivered and not validly withdrawn is conditioned upon the
delivery of the notes, together with necessary endorsements, to the paying
agent at any time after delivery of the purchase notice. We will cause the
purchase price for such notes to be paid in cash promptly following the later
of the purchase date or the time of delivery of such notes.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the paying agent holds money or securities sufficient to pay the
purchase price of the notes on the business day following the purchase date in
accordance with the terms of the indenture, then, immediately after the
purchase date, the notes will cease to be outstanding and interest on the notes
will cease to accrue, whether or not the notes are delivered to the paying
agent. Thereafter, all other rights of the holder shall terminate, other than
the right to receive the purchase price upon delivery of the notes.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our ability to purchase notes may be limited by the terms of our then
existing borrowing agreements, applicable law, as well as our ability to obtain
funds for such purchase through dividends and other payments by our
subsidiaries, which are subject to regulatory restrictions.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We may not purchase any notes at the option of holders if an event of
default with respect to the notes has occurred and is continuing, other than a
default in the payment of the purchase price with respect to such notes.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Fundamental
Change Put</I>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If a fundamental change (as defined below) occurs at any time prior to the
maturity of the notes, holders will have the right to require us to repurchase,
at the repurchase price described below, all or part of the outstanding notes
for which a written repurchase notice has been properly delivered and not
withdrawn. Notes submitted for repurchase must be $1,000 in principal amount or
whole multiples thereof.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The repurchase price will equal 100% of the principal amount of the notes
being repurchased, plus any accrued and unpaid interest to, but excluding, the
repurchase date, payable in cash plus, under certain circumstances, a make
whole premium payable in the same form of consideration into which our common
stock has been exchanged or converted. However, if the repurchase date is after
a record date and on or prior to the corresponding interest payment date, the
interest will be paid on the repurchase date to the holder of record on the
record date.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The amount of the make whole premium will be determined as described under
&#147;Determination of the Make Whole Premium.&#148;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We may be unable to repurchase outstanding notes in cash upon a
fundamental change. Our ability to repurchase notes with cash in the future may
be limited by the terms of our then-existing borrowing agreements. In addition,
the occurrence of a fundamental change could cause an event of default under
the terms of our then-existing borrowing agreements. We cannot assure you that
we would have the financial resources, or would be able to arrange financing,
to pay the repurchase price in cash.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A &#147;fundamental change&#148; is any transaction or event (whether by means of an
exchange offer, liquidation, tender offer, consolidation, merger, combination,
reclassification, recapitalization or otherwise) in connection with which 50%
or more of our common stock is exchanged for, converted into, acquired for or
constitutes solely the right to receive, consideration which is not at least
90% common stock that is:


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>listed on, or immediately after the transaction or event will
be listed on, a United States national securities exchange; or</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt">53
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<DIV style="font-family: 'Times New Roman',Times,serif">

<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>approved, or immediately after the transaction or event will
be approved, for quotation on the Nasdaq National Market or any
similar United States system of automated dissemination of
quotations of securities prices.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On or before the 10th business day after the occurrence of a fundamental
change, we will provide to all record holders at their addresses shown in the
register of the registrar and to beneficial owners as required by applicable
law, the trustee and the paying agent, a written notice of the occurrence of
the fundamental change and the resulting repurchase right. Such notice shall
state, among other things, the event causing the fundamental change and the
procedures holders must follow to require us to repurchase notes.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The repurchase date will be a date specified by us in the notice of a
fundamental change that is not less than 20 nor more than 35 business days
after the date of the notice of a fundamental change.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To exercise the fundamental change repurchase right, a holder must
deliver, prior to the close of business on or prior to the business day
preceding the repurchase date, a written notice to the paying agent of such
holder&#146;s exercise of its repurchase right (together with the notes to be
repurchased, if certificated notes have been issued). The repurchase notice
must state:


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if a holder holds a beneficial interest in a global note, the
repurchase notice must comply with appropriate DTC procedures; if a
holder holds certificated notes, the note certificate numbers;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the portion of the principal amount of notes to be
repurchased, which must be $1,000 or whole multiples thereof; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>that the notes are to be repurchased by us pursuant to the
applicable provisions of the notes and the indenture.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A holder may withdraw a repurchase notice at any time prior to the close
of business on the business day preceding the repurchase date by delivering a
written notice of withdrawal to the paying agent. If a repurchase notice is
given and withdrawn during that period, we will not be obligated to repurchase
the notes listed in the repurchase notice. The withdrawal notice must state:


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if a holder holds a beneficial interest in a global note, the
withdrawal notice must comply with appropriate DTC procedures; if a
holder holds certificated notes, the certificate numbers of the
withdrawn notes;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the principal amount of the withdrawn notes; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the principal amount, if any, which remains subject to the repurchase notice.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payment of the repurchase price for a note for which a repurchase notice
has been delivered and not withdrawn is conditioned upon book-entry transfer or
delivery of the note, together with necessary endorsements, to the paying
agent, as the case may be. Payment of the repurchase price for the note will be
made promptly following the later of the repurchase date and the time of
book-entry transfer or delivery of the note, as the case may be.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the paying agent holds on the repurchase date cash or shares of our
common stock sufficient to pay the repurchase price of the notes that holders
have elected to require us to repurchase, then, on the repurchase date:


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the notes will cease to be outstanding and interest will
cease to accrue, whether or not book-entry transfer of the notes has
been made or the notes have been delivered to the paying agent, as
the case may be; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>all other rights of the holders will terminate, other than
the right to receive the repurchase price upon delivery or transfer
of the notes.</TD>
</TR>

</TABLE>


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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with any repurchase, we will, to the extent applicable:


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>comply with the provisions of Rule&nbsp;13e-4 and any other tender
offer rules under the Exchange Act that may be applicable at the
time of the offer to repurchase the notes;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>file a Schedule&nbsp;TO or any other schedule required in
connection with any offer by us to repurchase the notes; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>comply with all other federal and state securities laws in
connection with any offer by us repurchase the notes.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This fundamental change repurchase right could discourage a potential
acquirer of Henry Schein. However, this fundamental change repurchase feature
is not the result of management&#146;s knowledge of any specific effort to obtain
control of us by means of a merger, tender offer, solicitation or otherwise, or
part of a plan by management to adopt a series of anti-takeover provisions.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our obligation to repurchase the notes upon a fundamental change would not
necessarily afford holders protection in the event of a highly leveraged or
other transaction involving us that may adversely affect holders. We also
could, in the future, enter into certain transactions, including certain
recapitalizations, that would not constitute a fundamental change but would
increase the amount of our (or our subsidiaries&#146;) outstanding debt. The
incurrence of significant amounts of additional debt could adversely affect our
ability to service our then existing debt, including the notes.


<P align="left" style="font-size: 10pt"><B>Determination of the Make Whole Premium</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On or prior to August&nbsp;20, 2010, upon the occurrence of a fundamental
change, we will pay a make whole premium upon the repurchase of the notes, as
described above under &#147;&#151; Repurchase of Notes at the Option of the Holder &#151;
Fundamental Change Put,&#148; and upon the conversion of the notes, as described
above under &#147;&#151; Conversion Rights &#151; Conversion Upon a Fundamental Change.&#148; If a
holder converts outstanding notes, the holder will receive the make whole
premium on the fundamental change repurchase date.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The make whole premium will be equal to a percentage of the principal
amount of the notes. The make whole premium will be in addition to, and not in
substitution for, any cash, securities, or other assets otherwise due to
holders of notes upon conversion or repurchase. The make whole premium will be
determined by reference to the table below and is based on the date on the date
on which the fundamental change becomes effective (the &#147;effective date&#148;) and
the price paid per share of our common stock in the transaction constituting
the fundamental change (the &#147;stock price&#148;). If holders of our common stock
receive only cash in the transaction constituting the fundamental change, the
stock price will equal the cash amount paid per share; in all other cases, the
stock price will equal the average closing sale price of our common stock (as
defined under &#147;Conversion Rights &#151; Conversion Upon Satisfaction of Market Price
Conditions&#148;) over the ten trading-day period ending on the trading day
preceding the effective date.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth the make whole premiums:


<P align="center" style="font-size: 10pt"><B>Make Whole Premium Upon Fundamental Change<BR>
(% of Principal Amount)</B>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">

<!-- Begin Table Head --><TR valign="bottom">
    <TD width="22%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Effective Date</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>$65.73</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>$80.00</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>$94.00</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>$108.00</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>$122.00</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>$136.00</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>$150.00</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>$164.00</B><HR size="1" noshade></TD>
</TR>


<!-- End Table Head -->

<!-- Begin Table Body -->
<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">August&nbsp;9, 2004</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12.41</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21.81</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18.66</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16.29</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14.48</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13.06</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.92</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">August&nbsp;15, 2005</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.80</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19.05</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15.89</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13.60</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.92</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.65</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.66</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">August&nbsp;15, 2006</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.74</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16.67</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13.40</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.14</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.56</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8.43</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.58</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">August&nbsp;15, 2007</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.79</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14.22</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.78</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8.55</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.14</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.47</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">August&nbsp;15, 2008</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.76</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.43</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.76</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.62</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.39</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.68</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.26</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">August&nbsp;15, 2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.50</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.80</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.89</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.13</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.43</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.16</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.04</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">August&nbsp;20, 2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.00</TD>
    <TD>&nbsp;</TD>
</TR>


<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">55
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The exact stock price and effective date may not be set forth on the
table. In such event:


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If the stock price is between two stock price amounts on the
table or the effective date is between two dates on the table, the
make whole premium will be determined by straight-line interpolation
between make whole premium amounts set forth for the higher and
lower stock price amounts and the two dates, as applicable, based on
a 365&nbsp;day year.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If the stock price is in excess of $164.00 per share (subject
to adjustment as described below), no make whole premium will be
paid.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If the stock price is less than $65.73 (subject to adjustment
as described below), no make whole premium will be paid.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The stock prices set forth in the table will be adjusted as of any date on
which the conversion rate of the notes is adjusted. The adjusted stock prices
will equal the stock prices applicable immediately prior to such adjustment
multiplied by a fraction, the numerator of which is the conversion rate
immediately prior to the adjustment giving rise to the stock price adjustment
and the denominator of which is the conversion rate as so adjusted.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We will pay the make whole premium solely in the same form of
consideration into which shares of our common stock have been exchanged or
converted in connection with the transaction constituting the fundamental
change. If holders of our common stock have the right to elect the form of
consideration received in the transaction constituting the fundamental change,
then for purposes of determining the form of consideration to be delivered in
respect of the make whole premium, the consideration into which a share of our
common stock has been exchanged or converted shall be deemed to equal the
aggregate consideration distributed in respect of all shares of our common
stock divided by the total number of shares of common stock participating in
the distribution.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For purposes of determining the value of the consideration to be delivered
in respect of the make whole premium, the value will be calculated as follows:


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>securities that are traded on a United States national
securities exchange or approved for quotation on the Nasdaq National
Market or any similar system of automated dissemination of
quotations of securities prices will be valued based on the average
closing price or last sale price, as applicable, over the ten
trading-day period ending on the trading day preceding the
repurchase date;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>other securities, assets or property (other than cash) will
be valued based on 98% of the average of the fair market value of
such securities, assets or property (other than cash) as determined
by two independent nationally recognized investment banks selected
by the trustee; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>100% of any cash.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Because the market price of our common stock will be determined prior to
the applicable repurchase date, holders will bear the market risk that the
applicable securities will decline in value between the date the market price
is calculated and the applicable repurchase date.


<P align="left" style="font-size: 10pt"><B>Events of Default</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each of the following constitutes an event of default under the indenture:


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>default in the payment when due;</TD>
</TR>

</TABLE>


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>of the principal amount of notes;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>of the redemption or purchase price of notes;</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt">56
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">

<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>of the premium (including any make whole premium) on notes; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>of the conversion obligation following (i)&nbsp;any
conversion as a result of the trading price of the notes being
less than 98% of the conversion value of the notes, (ii)&nbsp;any
call for redemption or (iii)&nbsp;fundamental change;</TD>
</TR>

</TABLE>


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>default in the payment when due of any interest, contingent
interest or additional interest, in each case, when due and payable,
and continuance of such default for a period of 30&nbsp;days;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>default in the performance of or breach of any other of our
covenants or agreements in the indenture or under the notes (other
than a default specified above) following notice of such default by
the trustee or the holders of 25% or more in aggregate principal
amount of the notes and such default or breach continues for a
period of 60 consecutive days after receipt by Henry Schein of such
notice;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a default under any indebtedness for money borrowed by us,
any of our subsidiaries that is a &#147;significant subsidiary&#148; (within
the meaning of Regulation&nbsp;S-X under the Exchange Act) or any group
of two or more subsidiaries that, taken as a whole, would constitute
a &#147;significant subsidiary&#148;, the aggregate outstanding principal
amount of which is in an amount in excess of $25&nbsp;million, for a
period of 30&nbsp;days after written notice to us by the trustee or to us
and the trustee by holders of at least 25% in aggregate principal at
maturity amount of the notes then outstanding, which default:</TD>
</TR>

</TABLE>


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>is caused by a failure to pay when due principal
or interest on such indebtedness by the end of the applicable
grace period, if any, unless such indebtedness is discharged; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>results in the acceleration of such indebtedness,
unless such acceleration is waived, cured, rescinded or
annulled; and</TD>
</TR>

</TABLE>


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>certain events of bankruptcy, insolvency, receivership or
reorganization with respect to us or any substantial part of our
property.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If an event of default specified in the last bullet point above occurs and
is continuing, then automatically the aggregate principal amount of the notes
and any accrued and unpaid interest, contingent interest and additional
interest through such date shall become immediately due and payable. If any
other event of default shall occur and be continuing (the default not having
been cured or waived as provided under &#147;Modification and Waiver&#148; below), the
trustee or the holders of at least 25% in aggregate principal amount of the
notes then outstanding may declare the aggregate principal amount of the notes
and any accrued and unpaid interest, contingent interest and additional
interest through such date, due and payable. Upon any such acceleration the
trustee may, at its discretion, proceed to protect and enforce the rights of
the holders of notes by appropriate judicial proceedings. Such declaration may
be rescinded with the written consent of the holders of a majority in aggregate
principal amount of the notes then outstanding upon the conditions provided in
the indenture.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are required to furnish annually to the trustee a statement as to the
fulfillment of our obligations under the indenture.


<P align="left" style="font-size: 10pt"><B>Modification and Waiver</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The indenture (including the terms and conditions of the notes) may be
modified or amended by us and the trustee, without the consent of the holder of
any notes, for the purposes of, among other things:


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>adding to our covenants for the benefit of the holders of notes;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>surrendering any right or power conferred upon us;</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt">57
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<DIV style="font-family: 'Times New Roman',Times,serif">

<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>providing for the assumption of our obligations to the
holders of notes in the case of a permitted merger, consolidation,
conveyance, sale, transfer or lease;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>complying with the requirements of the SEC in connection with
the registration of the notes under the Securities Act and the
qualification of the indenture under the Trust Indenture Act,
provided that such modification or amendment does not, in the good
faith opinion of our board of directors and the trustee, adversely
affect the interests of the holders of notes in any material
respect;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>reducing the conversion price, provided that the reduction
will not adversely affect the interests of the holders of the notes
(after taking into account tax and other consequences of such
reduction);</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>adding or modifying any provision of the indenture; provided
that such addition or modification does not, in the good faith
opinion of our board of directors and the trustee, adversely affect
the interests of the holders of notes;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>adding guarantees with respect to the notes; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>curing any ambiguity or omission, or correcting or
supplementing any defective provision or inconsistency contained in
the indenture or the notes; provided that such modification or
amendment does not, in the good faith opinion of our board of
directors and the trustee, adversely affect the interests of the
holders of notes in any material respect.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Modifications and amendments to the indenture or to the terms and
conditions of the notes may also be made, and past defaults by us may be
waived, with the written consent of the holders of at least a majority in
aggregate principal amount of the notes at the time outstanding.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;However, no such modification, amendment or waiver may, without the
written consent or the affirmative vote of the holder of each note so affected:


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>change the stated maturity of any notes;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>reduce the principal amount, redemption price or purchase
price (including fundamental change purchase price or make-whole
redemption premium) on any notes;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>change the currency of payment of such notes or interest
thereon;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>alter the manner of calculation or rate of accrual of
interest (including contingent interest and additional interest) on
any notes or extend the time of payment of any such amount;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>except as otherwise permitted or contemplated by provisions
concerning corporate reorganizations, adversely affect the
repurchase option of holders or adversely affect the conversion
rights of holders of the notes;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>reduce the percentage in aggregate principal amount of notes
outstanding necessary to modify or amend the indenture or to waive
any past default; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>impair the right to institute suit for the enforcement of any
payment with respect to, or conversion of, any notes.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><B>Merger and Sales of Assets</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The indenture provides that Henry Schein may not consolidate with or merge
into any other person or convey, transfer or lease its properties and assets
substantially as an entirety to another person unless, among other things,


<P align="center" style="font-size: 10pt">58
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<DIV style="font-family: 'Times New Roman',Times,serif">

<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Henry Schein is the continuing corporation, or the resulting,
surviving or transferee person is organized and existing under the
laws of the United States, any state thereof or the District of
Columbia;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if Henry Schein is not the surviving corporation, such person
assumes all obligations of Henry Schein under the notes and the
indenture; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Henry Schein or such successor is not then or immediately
thereafter in default under the indenture.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The occurrence of certain of the foregoing transactions could also
constitute a fundamental change.


<P align="left" style="font-size: 10pt"><B>Governing Law</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The indenture and the notes are governed by, and construed in accordance
with, the laws of the State of New York.


<P align="left" style="font-size: 10pt"><B>Registration Rights</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We entered into a registration rights agreement, dated as of August&nbsp;9,
2004, with the initial purchasers of the notes for the benefit of the holders
of the notes. Pursuant to that agreement, we agreed to, at our expense:


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>file with the SEC not later than 90&nbsp;days after the date of
original issuance of the notes, a registration statement on such
form as we deem appropriate covering resales by holders of the notes
and the common stock issuable upon conversion of the notes;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>use our commercially reasonable best efforts to cause such
registration statement to become effective as promptly as is
practicable, but in no event later than 180&nbsp;days after the date of
original issuance of the notes; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>use our commercially reasonable best efforts to keep the
registration statement effective until the earliest of:</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;two years after the last date of original issuance of any of the
notes;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;the date when the holders of the notes and the common stock issuable
upon conversion of the notes are able to sell all such securities immediately
without restrictions under Rule 144(k) under the Securities Act; or


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;the date when all of the notes and the common stock issuable upon
conversion of the notes are registered under the shelf registration statement
and disposed of in accordance with the shelf registration statement or cease to
be outstanding.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not less than 20 business days prior to the effectiveness of this shelf
registration statement, we mailed a notice of registration statement and
selling securityholder election and questionnaire to each holder who purchased
notes from the initial purchaser to obtain certain information regarding the
holder for inclusion in this prospectus. We have named in this shelf
registration statement, as a selling securityholder, each holder that has
returned to us a completed and signed election and questionnaire within 10
business days of receipt thereof. Upon receipt of such a completed
questionnaire from a holder following the effectiveness of the shelf
registration statement, we will, within 30 business days, file such amendments
to the shelf registration statement or supplements to a related prospectus as
are necessary to permit such holder to be named as a selling securityholder in
the prospectus; <I>provided, however</I>, that we will not be obligated to file (i)
more than one such pre-effective amendment or supplement for all holders during
one fiscal quarter and (ii)&nbsp;more than one post-effective amendment for all
holders during one three-month period, and <I>provided further</I>, in all such cases
involving supplements or amendments (whether pre-effective or post


<P align="center" style="font-size: 10pt">59
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="left" style="font-size: 10pt">effective), we will only be obligated to make a filing when the principal
amount of notes to be included in such amendment or supplement is more than $1
million.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;When we file the shelf registration statement, we will:


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>provide to each holder for whom the shelf registration
statement was filed copies of the prospectus that is a part of the
shelf registration statement;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>notify each such holder when the shelf registration statement has become effective;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>notify each such holder of the commencement of any suspension period; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>take certain other actions as are required to permit
unrestricted resales of the notes and the common stock issuable upon
conversion of the notes.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each holder who sells securities pursuant to the shelf registration statement generally will be:


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>required to be named as a selling holder in the related prospectus;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>required to deliver a prospectus to the purchaser;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>subject to certain of the civil liability provisions under
the Securities Act in connection with the holder&#146;s sales; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>bound by the provisions of the registration rights agreement
that are applicable to the holder (including certain indemnification
rights and obligations).</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each holder must notify us not later than three business days prior to any
proposed sale by that holder pursuant to the shelf registration statement. This
notice will be effective for five business days. We may suspend the holder&#146;s
use of the prospectus for a period not to exceed 45&nbsp;days in any 90-day period,
and not to exceed an aggregate of 120&nbsp;days in any 360-day period, if


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the prospectus would, in our reasonable judgment, contain a
material misstatement or omission as a result of an event that has
occurred and is continuing; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>we reasonably determine that the disclosure of this material
non-public information would have a material adverse effect on us
and our subsidiaries taken as a whole.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;However, if the disclosure relates to a previously undisclosed proposed or
pending material business transaction, the disclosure of which would impede our
ability to consummate such transaction, we may extend the suspension period
from 45&nbsp;days to 60&nbsp;days. Each holder, by its acceptance of a note, agrees to
hold any communication by us in response to a notice of a proposed sale in
confidence.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon the initial sale of notes or common stock issued upon conversion of
the notes, each selling holder will be required to deliver a notice of such
sale, in substantially the form attached as an exhibit to the indenture, to the
trustee and us. The notice will, among other things:


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>identify the sale as a transfer pursuant to the shelf
registration statement;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>certify that the prospectus delivery requirements, if any, of
the Securities Act have been complied with; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>certify that the selling holder and the aggregate principal
amount of notes or number of shares, as the case may be, owned by
such holder are identified in the related prospectus in accordance
with the applicable rules and regulations under the Securities Act.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt">60
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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If,


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the shelf registration statement has not been filed prior to
or on the 90th day following the earliest date of original issuance
of any of the notes; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the shelf registration statement has not been declared
effective prior to or on the 180th day following the earliest date
of original issuance of any of the notes (the &#147;effectiveness target
date&#148;); or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>at any time after the effectiveness target date, the
registration statement ceases to be effective or fails to be usable
and (1)&nbsp;we do not cure the registration statement within five
business days by a post-effective amendment or a report filed
pursuant to the Exchange Act or (2)&nbsp;if applicable, we do not
terminate the suspension period, described above, by the 45th or
60th day, as the case may be, or the suspension periods exceed an
aggregate of 120&nbsp;days in any 360-day period (each, a &#147;registration
default&#148;), then</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">additional interest will accrue on the notes, from and including the day
following the registration default to but excluding the day on which the
registration default has been cured. Additional interest will be paid
semi-annually in arrears, in cash, on each February&nbsp;15 and August&nbsp;15,
commencing on the first semi-annual payment due on the first interest payment
date following the date on which such additional interest begins to accrue, and
will accrue at a rate per year equal to:



<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>0.25% of the applicable amount, as described below, of a note
to and including the 90th day following such registration default;
and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>0.50% of the applicable amount of a note from and after the
91st day following such registration default.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In no event will additional interest accrue at a rate per year exceeding
0.50%. The term &#147;applicable amount&#148; means, with respect to each $1,000
principal amount of the notes, the sum of the aggregate principal amount of the
notes or, if no notes are then outstanding, such sum calculated as if such
notes were then outstanding.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If a shelf registration statement covering the resales of the notes and
common stock into which the notes are convertible is not effective, the notes
may not be sold or otherwise transferred except in accordance with the
provisions set forth under &#147;Notice to Investors.&#148; In addition, holders should
be aware of the following Interpretation A.65 of the July&nbsp;1997 SEC Manual of
Publicly Available Telephone Interpretations regarding short selling: &#147;<I>An
issuer filed a </I><I>Form S-3</I><I> registration statement for a secondary offering of
common stock which is not yet effective. One of the selling shareholders wanted
to do a short sale of common stock &#147;against the box&#148; and cover the short sale
with registered shares after the effective date. The issuer was advised that
the short sale could not be made before the registration statement becomes
effective, because the shares underlying the short sale are deemed to be sold
at the time such sale is made. There would, therefore, be a violation of
Section&nbsp;5 if the shares were effectively sold prior to the effective date.</I>&#148;


<P align="left" style="font-size: 10pt"><B>Information Concerning the Trustee</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Bank of New York will serve as trustee, paying agent, conversion
agent, registrar and custodian with regard to the notes. Continental Stock
Transfer and Trust is the transfer agent and registrar for our common stock.
The trustee or its affiliates may from time to time in the future provide
banking and other services to us in the ordinary course of their business.


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<P align="left" style="font-size: 10pt"><B>Form, Denomination and
Registration</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Denomination
and Registration</I>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The notes are issued in fully registered form, without coupons, in
denominations of $1,000 principal amount and whole multiples of $1,000.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Global
Notes: Book-Entry Form</I>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except as provided below, the notes are evidenced by one global security
deposited with the trustee as custodian for DTC, and registered in the name of
Cede &#038; Co. as DTC&#146;s nominee.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Record ownership of the notes represented by a global security may be
transferred, in whole or in part, only to another nominee of DTC or to a
successor of DTC or its nominee, except as set forth below. Owners of
beneficial interests in the notes may hold their interests in the notes
represented by a global security directly through DTC if such owner is a
participant in DTC, or indirectly through organizations which are direct DTC
participants if such owner is not a participant in DTC. Transfers between
direct DTC participants will be effected in the ordinary way in accordance with
DTC&#146;s rules and will be settled in same-day funds. Owners may also beneficially
own interests in the notes represented by a global security held by DTC through
certain banks, brokers, dealers, trust companies and other parties that clear
through or maintain a custodial relationship with a direct DTC participant,
either directly or indirectly.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;So long as Cede &#038; Co., as nominee of DTC, is the registered owner of the
notes represented by a global security, Cede &#038; Co. for all purposes will be
considered the sole holder of the notes. Except as provided below, owners of
beneficial interests in the notes represented by a global security:


<P>

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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>will not be entitled to have certificates registered in their names;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>will not receive or be entitled to receive physical delivery of certificates in definitive form; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>will not be considered holders of the notes represented by a global security.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The laws of some states require that certain persons take physical
delivery of securities in definitive form. Consequently, the ability of an
owner of a beneficial interest in a note represented by a global security to
transfer the beneficial interest in the notes represented by a global security
to such persons may be limited.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We will wire, through the facilities of the trustee, payments of
principal, premium, if any, and interest payments on the notes represented by a
global security to Cede &#038; Co., the nominee of DTC, as the registered owner of
the notes represented by a global security. None of Henry Schein, the trustee
and any paying agent will have any responsibility or be liable for paying
amounts due on the notes represented by a global security to owners of
beneficial interests in the notes represented by a global security.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It is DTC&#146;s current practice, upon receipt of any payment of principal of
and premium, if any, and interest on the notes represented by a global
security, to credit participants&#146; accounts on the payment date in amounts
proportionate to their respective beneficial interests in the notes represented
by the global security, as shown on the records of DTC. Payments by DTC
participants to owners of beneficial interests in notes represented by the
global security held through DTC participants will be the responsibility of DTC
participants, as is now the case with securities held for the accounts of
customers registered in &#147;street name.&#148;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you would like to convert your notes into common stock pursuant to the
terms of the notes, you should contact your broker or other direct or indirect
DTC participant to obtain information on procedures, including proper forms and
cut-off times, for submitting those requests.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Because DTC can only act on behalf of DTC participants, who in turn act on
behalf of indirect DTC participants and other banks, your ability to pledge
your interest in the notes represented by a global security to


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<P align="left" style="font-size: 10pt">persons or entities that do not participate in the DTC system, or
otherwise take actions in respect of such interest, may be affected by the lack
of a physical certificate.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Neither Henry Schein nor the trustee (nor any registrar, paying agent or
conversion agent under the indenture) will have any responsibility for the
performance by DTC or direct or indirect DTC participants of their obligations
under the rules and procedures governing their operations. DTC has advised us
that it will take any action permitted to be taken by a holder of the notes,
including, without limitation, the presentation of the notes for conversion as
described below, only at the direction of one or more direct DTC participants
to whose account with DTC interests in the notes represented by a global
security are credited and only for the principal amount of the notes for which
directions have been given.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;DTC has advised us as follows: DTC is a limited purpose trust company
organized under the laws of the State of New York, a member of the Federal
Reserve System, a &#147;clearing corporation&#148; within the meaning of the Uniform
Commercial Code and a &#147;clearing agency&#148; registered pursuant to the provisions
of Section&nbsp;17A of the Securities Exchange Act of 1934, as amended. DTC was
created to hold securities for DTC participants and to facilitate the clearance
and settlement of securities transactions between DTC participants through
electronic book-entry changes to the accounts of its participants, thereby
eliminating the need for physical movement of certificates. Participants
include securities brokers and dealers, banks, trust companies and clearing
corporations and may include certain other organizations, such as the initial
purchaser of the notes. Certain DTC participants or their representatives,
together with other entities, own DTC. Indirect access to the DTC system is
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.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although DTC has agreed to the foregoing procedures in order to facilitate
transfers of interests in the notes represented by a global security among DTC
participants, it is under no obligation to perform or continue to perform such
procedures, and such procedures may be discontinued at any time. If DTC 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 cause notes to be
issued in definitive form in exchange for the notes represented by a global
security. None of Henry Schein, the trustee or any of their respective agents
will have any responsibility for the performance by DTC, direct or indirect DTC
participants of their obligations under the rules and procedures governing
their operations, including maintaining, supervising or reviewing the records
relating to, or payments made on account of, beneficial ownership interests in
notes represented by a global security.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;According to DTC, the foregoing information with respect to DTC has been
provided to its participants and other members of the financial community for
informational purposes only and is not intended to serve as a representation,
warranty or contract modification of any kind.


<P align="left" style="font-size: 10pt"><B>Discharge of the Indenture</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We may satisfy and discharge our obligations under the indenture by
delivering to the trustee for cancellation all outstanding notes or by
depositing with the trustee, the paying agent or the conversion agent, if
applicable, after the notes have become due and payable, whether at stated
maturity, or any redemption date, or any purchase date, or upon conversion or
otherwise, cash or shares of common stock (as applicable under the terms of the
indenture) sufficient to pay all of the outstanding notes and paying all other
sums payable under the indenture by us.


<P align="left" style="font-size: 10pt"><B>Calculations in Respect of Notes</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We or our agents will be responsible for making all calculations called
for under the notes. These calculations include, but are not limited to,
determination of the trading prices of the notes and the closing prices of our
common stock and amounts of contingent interest and additional interest, if
any, payable on the notes. We or our agents will make all these calculations in
good faith and, absent manifest error, these calculations will be final and
binding on holders of notes. We, or our agents, will provide a schedule of
these calculations to the trustee, and the trustee is entitled to rely upon the
accuracy of these calculations without independent verification.


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<P align="left" style="font-size: 10pt"><B>Limitations of Claims in Bankruptcy</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If a bankruptcy proceeding is commenced in respect of Henry Schein, the
claim of the holder of a note is, under Title 11 of the United States Code,
limited to the aggregate principal amount of the notes. In addition, the
holders of the notes are effectively subordinated to the indebtedness and other
obligations of our subsidiaries.


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

<P align="center" style="font-size: 10pt"><B>DESCRIPTION OF CAPITAL STOCK</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>The following summary does not purport to be complete and is subject to,
and qualified in its entirety by, our amended and restated certificate of
incorporation and amended and restated by-laws, each as amended to date, which
are incorporated herein by reference, and by the provisions of applicable law.</I>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our authorized capital stock consists of 120,000,000 shares of common
stock having a par value of $.01 per share and 1,000,000 shares of preferred
stock having a par value of $.01 per share.


<P align="left" style="font-size: 10pt"><B>Common Stock</B>


<DIV align="left"><FONT size="1">

</FONT></DIV>
<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of
December&nbsp;25, 2004, there were 43,325,214 shares of our common stock
issued and outstanding. As of November&nbsp;3, 2004, an aggregate of 2,618,357
shares of common stock were available for issuance under the Henry Schein, Inc.
1994 Stock Incentive Plan, as amended, and 1996 Non-Employee Director Stock
Incentive Plan, as amended. In addition, we have 750,000 shares available for
issuance pursuant to our Henry Schein, Inc. 2004 Employee Stock Purchase Plan.
<DIV align="left"><FONT size="1">

</FONT></DIV>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All of our outstanding shares are fully paid and nonassessable. The
holders of our common stock are entitled to one vote for each share held of
record by them on all matters voted upon, and the stockholders may not cumulate
votes. This means that the owners of a majority of our outstanding shares of
common stock may elect all of our directors. Subject to the rights of holders
of any future series of preferred stock which may be designated and issued,
each outstanding share of our common stock is entitled to participate equally
in any distribution of our net assets made to our stockholders in any
liquidation, dissolution or winding up, and is entitled to participate equally
in dividends as and when declared by our Board of Directors. There are no
redemption, sinking fund, conversion or preemptive rights with respect to the
shares of common stock. All shares of common stock have equal rights and
preferences.


<P align="left" style="font-size: 10pt"><B>Preferred Stock</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The rights, preferences and privileges of the holders of our common stock
are subject to, and may be adversely affected by, the rights of the holders of
shares of any series of our preferred stock that we may designate and issue in
the future. At present, no shares of our preferred stock have been issued. We
have no present plans to issue any shares of preferred stock.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our Board of Directors is authorized, subject to certain limitations
prescribed by law, without further stockholder approval, to issue from time to
time up to an aggregate of 1,000,000 shares of preferred stock in one or more
series with such designations and such powers, preferences and rights, and such
qualifications, limitations or restrictions (which may differ with respect to
each series) as our Board of Directors may fix by resolution. Unless otherwise
provided by board resolution, the consent of the holders of our common stock or
any class or series of our preferred stock shall not be required for the
issuance by our Board of Directors of any other series of preferred stock. No
dividend may be declared on the outstanding shares of any series of our
preferred stock unless a dividend is declared on all outstanding shares of our
preferred stock of each other series entitled to cumulative dividends then
outstanding which ranks senior to or equally as to dividends with the series in
question.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accordingly, our Board of Directors, without stockholder approval, may
issue shares of preferred stock with terms (including terms with respect to
redemption, sinking fund, dividend, liquidation, preemptive, conversion and
voting rights and preferences) that could adversely affect the voting power and
other rights of holders of the common stock.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our undesignated shares of preferred stock may have the effect of
discouraging an attempt, through the acquisition of a substantial number of
shares of common stock, to acquire control of us with a view to affecting a
merger, sale or exchange of assets or a similar transaction. For example, our
Board of Directors could issue shares of preferred stock as a dividend to
holders of our common stock or place such shares privately with purchasers who
may side with our Board of Directors in opposing a takeover bid. The anti-
takeover effects of our undesignated preferred stock may deny our stockholders the receipt of a premium on their shares and
may also have a depressive effect on the market price of our common stock.

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<DIV align="left">
<A name="114"></A>
</DIV>

<P align="center" style="font-size: 10pt"><B>CERTAIN U.S. FEDERAL INCOME TAX CONSIDERATIONS</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following is a summary of the material U.S. federal income tax
consequences, as of the date of this prospectus, of the purchase, ownership,
and disposition of the notes and, where noted, the common stock into which the
notes may be converted. Except where noted, this summary deals only with notes
held as a capital asset by a holder who purchases the notes on original issue
at its initial offering price, and it does not deal with special situations.
For example, this summary does not address:


<P>

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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>tax consequences to holders who may be subject to special tax
treatment, such as dealers in securities or currencies, traders in
securities that elect to use the mark-to-market method of accounting
for their securities, financial institutions, regulated investment
companies, real estate investment trusts, tax-exempt entities or
insurance companies;</TD>
</TR>

</TABLE>


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>tax consequences to persons holding the notes as part of a
hedging, constructive sale or conversion, straddle or other risk
reducing transaction;</TD>
</TR>

</TABLE>


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>tax consequences to U.S. holders (as defined below) of the
notes whose &#147;functional currency&#148; is not the U.S. dollar;</TD>
</TR>

</TABLE>


<P>

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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>except where noted, the U.S. federal estate, gift or
alternative minimum tax consequences, if any, to holders of the
notes; or</TD>
</TR>

</TABLE>


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any state, local or foreign tax consequences.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If a partnership holds the notes, the tax treatment of a partner will
generally depend upon the status of the partner and the activities of the
partnership. If you are a partner of a partnership holding the notes, you
should consult your own tax advisors.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The discussion below is based upon the provisions of the Internal Revenue
Code of 1986, as amended (the &#147;Code&#148;), its legislative history, and regulations
thereunder, published rulings and judicial decisions as of the date of this
prospectus. Those authorities are subject to change, possibly retroactively.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No statutory, administrative or judicial authority directly addresses the
treatment of all aspects of the notes or instruments identical to the notes for
U.S. federal income tax purposes. The Internal Revenue Service (&#147;IRS&#148;) has
issued a revenue ruling with respect to instruments similar to the notes. This
revenue ruling supports certain aspects of the tax treatment described below.
No rulings have been sought or are expected to be sought from the IRS with
respect to any of the U.S. federal income tax consequences discussed below. As
a result, no assurance can be given that the IRS will agree with the tax
characterizations and the tax consequences described below.


<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you are considering the purchase of the notes, you should consult your
own tax advisors concerning the U.S. federal income tax consequences of
purchasing, owning and disposing of the notes and/or our common stock in light
of your particular circumstances and any consequences arising under the laws of
any state, local or foreign taxing jurisdiction. You should also consult with
your tax advisor concerning any possible enactment of legislation that would
affect your investment in the notes in your particular circumstances.


<P align="left" style="font-size: 10pt"><B>Classification of the Notes</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the indenture governing the notes, we and each holder of the notes
agree, for U.S. federal income tax purposes, to treat the notes as indebtedness
that is subject to the &#147;noncontingent bond method&#148; for accruing interest


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<P align="left" style="font-size: 10pt">as set forth in the applicable Treasury regulations governing contingent
payment debt instruments (the &#147;Contingent Debt Regulations&#148;) in the manner
described below. The remainder of this discussion assumes that the notes will
be so treated and does not address any possible differing treatments of the
notes. As noted above, the application of the Contingent Debt Regulations to
instruments such as the notes is uncertain in several respects, and no private
letter rulings have been sought by us from the IRS with respect to any of the
tax consequences discussed below. Accordingly, no assurance can be given that
the IRS or a court will agree with the treatment described herein. Any
differing treatment could affect the amount, timing and character of income,
gain or loss in respect of an investment in the notes. In particular, a holder
might be required to accrue interest at a lower rate, might not recognize
income, gain or loss upon conversion of the notes to common stock, and might
recognize capital gain or loss upon a taxable disposition of its notes. Holders
should consult their tax advisors concerning the tax treatment of holding the
notes in their particular circumstances.


<P align="left" style="font-size: 10pt"><B>U.S. Holders</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following discussion is a summary of certain U.S. federal income tax
consequences that will apply to you if you are a U.S. holder of notes.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For purposes of this discussion, a U.S. holder is a beneficial owner of notes who or that is:


<P>

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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a citizen or resident of the U.S.;</TD>
</TR>

</TABLE>


<P>

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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a corporation or partnership created or organized in or under
the laws of the U.S. or any political subdivision of the U.S.;</TD>
</TR>

</TABLE>


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>an estate the income of which is subject to U.S. federal
income taxation regardless of its source; or</TD>
</TR>

</TABLE>


<P>

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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a trust (1)&nbsp;that is subject to the primary supervision of a
court within the U.S. and the control of one or more U.S. persons as
defined in Section&nbsp;7701(a)(30) of the Code or (2)&nbsp;that has a valid
election in effect under applicable Treasury regulations to be
treated as a U.S. person.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As discussed more fully below, the effects of applying the noncontingent
bond method will be (1)&nbsp;to require each U.S. holder, regardless of such
holder&#146;s usual method of tax accounting, to use an accrual method with respect
to the interest income on the notes, (2)&nbsp;to require each U.S. holder to accrue
interest income in excess of interest payments, including any contingent
interest payments, actually received, and (3)&nbsp;generally to result in ordinary
income, rather than capital gain, treatment of any gain and any loss (to the
extent such loss does not exceed the U.S. holder&#146;s prior inclusions of interest
on the notes) on the sale, exchange or other disposition of the notes.


<P align="left" style="font-size: 10pt"><B>Accrual of Interest</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You will be required to accrue an amount of interest income for U.S.
federal income tax purposes, for each accrual period prior to and including the
maturity date of the notes, that equals:


<P>

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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the product of (i)&nbsp;the adjusted issue price (as defined
below) of the notes as of the beginning of the accrual period; and
(ii)&nbsp;the comparable yield to maturity (as defined below) of the
notes, adjusted for the length of the accrual period;</TD>
</TR>

</TABLE>


<P>

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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>divided by the number of days in the accrual period; and</TD>
</TR>

</TABLE>


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>multiplied by the number of days during the accrual period that you held the notes.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The issue price of the notes will be the first price at which a
substantial amount of the notes are sold to persons other than bond houses,
brokers or similar persons or organizations acting in the capacity of
underwriters, placement agents or wholesalers. The adjusted issue price of the
notes will be its issue price increased by any interest previously accrued,
determined without regard to any adjustments to interest accruals described
below, and decreased by the projected amounts of any projected payments
previously made with respect to the notes.


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<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the Contingent Debt Regulations, you will be required to accrue
interest in income in each year, regardless of your usual method of accounting,
on a constant yield to maturity basis based on the &#147;comparable yield&#148; of the
notes which we are required to determine. The comparable yield of the notes
generally will be the rate, as of the initial issue date, at which we would
issue a fixed rate nonconvertible debt instrument with no contingent payments
but with terms and conditions similar to the notes, including the level of
subordination, term, timing of payments and general market conditions. We have
determined that the comparable yield is an annual rate of 6.56%, compounded
semi-annually.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are required to make available to you the comparable yield and, solely
for U.S. federal income tax purposes, a projected payment schedule that
includes the actual interest payments, if any, on the notes, and estimates the
amount and timing of contingent interest payments and payment upon maturity on
the notes, taking into account the fair market value of the common stock that
might be paid upon a conversion of the notes. You may obtain the projected
payment schedule by submitting a written request for it to us at the address
set forth in &#147;Summary.&#148; By purchasing the notes, you agree in the indenture to
be bound by our determination of the comparable yield and projected payment
schedule. For U.S. federal income tax purposes, you must use the comparable
yield and the schedule of projected payments in determining your original issue
discount accruals, and the adjustments thereto described below, in respect of
the notes.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The comparable yield and the projected payment schedule are provided by us
solely for the determination of your interest and adjustments thereof in
respect of the notes for U.S. federal income tax purposes and do not constitute
a projection or representation regarding the amounts that such U.S. holder will
actually receive as a result of owning the notes.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Because income accrued on the notes will constitute interest for U.S.
federal income tax purposes, corporate holders of the notes will not be
entitled to the dividends-received deduction with respect to that income.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Adjustments to interest accruals on the notes</I>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the actual contingent payments made on the notes for any year differ
from the projected contingent payments for that year, an adjustment for the
difference will be made to taxable income for that year. If, for any year you
receive actual payments with respect to the notes that in the aggregate exceed
the total amount of projected payments for that year, you will incur a net
positive adjustment equal to the amount of such excess. The net positive
adjustment will be treated as additional original issue discount for that year.
For these purposes, the payments for a year include the fair market value of
property received for that year.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you receive in a taxable year actual payments with respect to the notes
for that taxable year that in the aggregate are less than the amount of
projected payments for that year, you will incur a net negative adjustment
equal to the amount of the deficit. A net negative adjustment will:


<P>

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    <TD width="3%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>first, reduce the amount of interest required to be accrued
for the current year;</TD>
</TR>

</TABLE>


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>second, any excess net negative adjustment will be treated as
ordinary loss to the extent of your total prior interest inclusions
with respect to the notes (which includes any prior net positive
adjustments), reduced to the extent such interest was offset by
prior net negative adjustments; and</TD>
</TR>

</TABLE>


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>third, any excess net negative adjustments will be treated as
a regular adjustment in one or more succeeding taxable years, and,
if not used by the time the notes are sold or mature, will be
treated as a reduction in the amount realized on sale, exchange or
retirement of the notes.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Sale, exchange, conversion or redemption</I>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Your adjusted tax basis in the notes generally will equal your original
purchase price for the notes, increased by any interest previously accrued
(determined without regard to any net positive or net negative adjustments to
interest accruals as described above under &#147;Adjustment to interest accruals on
the Notes&#148;), and decreased by the projected amount of any projected payments
previously scheduled to be made on the notes.


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<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon the sale, exchange, conversion, repurchase or redemption of the
notes, you will recognize taxable gain or loss. As a holder of the notes, you
agree that under the Contingent Debt Regulations, you will treat the fair
market value of our common stock that you receive on conversion as a contingent
payment. The amount of taxable gain or loss on a sale, exchange, conversion,
repurchase or redemption will equal the difference between: (a)&nbsp;the amount of
cash plus the fair market of any other property you receive including the fair
market value of any shares of our common stock you receive as adjusted in
accordance with the following paragraph, and (b)&nbsp;your adjusted tax basis in the
notes.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any excess net negative adjustments in the year in which the notes are
sold, exchanged, converted or redeemed will reduce your amount realized on the
notes.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain recognized on the sale, exchange, conversion or redemption of the
notes will generally be treated as ordinary interest income; any loss will be
ordinary loss to the extent of your total prior net original issue discount
inclusions with respect to the notes, and thereafter, capital loss (which will
be long-term if the notes are held for more than one year). The deductibility
of net capital losses is subject to limitations.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Given the uncertain tax treatment of instruments such as the notes, you
should consult your tax advisors concerning the tax treatment on conversion of
the notes and the ownership of our common stock resulting therefrom.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Constructive distributions</I>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The conversion price of the notes will be adjusted in certain
circumstances. (See &#147;Description of the Notes &#151; Conversion Rights &#151; Conversion
Rate Adjustments&#148; above). Under section 305(c) of the Code, adjustments (or
failures to make adjustments) that are considered to have the effect of
increasing your proportionate interest in our assets or earnings may in some
circumstances result in a deemed distribution to you, even though you have not
received any cash or property as a result of such adjustments. Any deemed
distributions will be taxable as a dividend, return of capital, or capital gain
in accordance with the earnings and profits rules under the Code.


<P align="left" style="font-size: 10pt"><B>Common Stock</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Your tax basis in our common stock received upon conversion of the notes
will equal the then current fair market value of the common stock. Your holding
period for our common stock received will commence on the day immediately
following the date of conversion.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Dividends</I>


<DIV align="left"><FONT size="1">

</FONT></DIV>
<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Distributions to U.S. holders with respect to the common stock will be
treated as ordinary dividend income to the extent of our current or accumulated
earnings and profits as determined for U.S. federal income tax purposes. The
amount of any distribution in excess of our current and accumulated earnings
and profits will first be applied to reduce your tax basis in the common stock,
and any amount in excess of tax basis will be treated as gain from the sale or
exchange of your common stock. Any such dividend will be eligible for the
dividends-received deduction if the U.S. holder is an otherwise qualifying
corporate holder that meets the holding period and other requirements for the
dividends-received deduction. In general, qualified dividends paid to
non-corporate taxpayers in taxable years beginning before January&nbsp;1, 2009, are
taxable at a maximum rate of 15%, provided that the holder has a holding period
of more than 60&nbsp;days during the 121-day period beginning 60&nbsp;days before the
ex-dividend date and meets other requirements.
<DIV align="left"><FONT size="1">

</FONT></DIV>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Dispositions</I>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon a disposition of common stock a U.S. holder will recognize capital
gain or loss in an amount equal to the difference between the amount realized
and such U.S. holder&#146;s adjusted tax basis in the common stock. Capital gains of
individuals derived in respect of assets with a holding period of greater than
one year are eligible for


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<P align="left" style="font-size: 10pt">reduced rates of taxation. In general, the maximum rate of U.S. federal
income tax for non-corporate taxpayers is currently 15% for long-term capital
gain recognized before January&nbsp;1, 2009, and 35% for short-term capital gain.
For corporate taxpayers, both long-term and short-term capital gains are
subject to a maximum U.S. federal income tax rate of 35%. The deductibility of
capital losses is subject to limitations.


<P align="left" style="font-size: 10pt"><B>Non-U.S. Holders</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following is a summary of the U.S. federal tax consequences that will
apply to you if you are a non-U.S. holder of notes or shares of common stock.
The term &#147;non-U.S. holder&#148; means a beneficial owner of the notes that is not a
United States person for U.S. federal income tax purposes.


<DIV align="left"><FONT size="1">

</FONT></DIV>
<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Special rules may apply to certain non-U.S. holders such as &#147;controlled
foreign corporations,&#148; &#147;passive foreign investment companies,&#148;
corporations that accumulate earnings to avoid
federal income tax or, in certain circumstances, U.S. expatriates. Such
non-U.S. holders should consult their own tax advisors to determine the U.S.
federal, state, local and other tax consequences that may be relevant to them
in their particular circumstances. As discussed above with respect to U.S.
holders, by purchasing the notes, you agree in the indenture to be bound by our
determination of the comparable yield and projected payment schedule.
<DIV align="left"><FONT size="1">

</FONT></DIV>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Payments with respect to the notes</I>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The 30% U.S. federal withholding tax will not apply to any payment to you
of principal or interest (including amounts taken into income under the accrual
rules described above under &#147;U.S. Holders&#148; and the issuance of common stock
pursuant to a conversion) on the notes, provided that:


<P>

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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>you do not actually or constructively own 10% or more of the
total combined voting power of all classes of our stock that are
entitled to vote within the meaning of Section&nbsp;871(h)(3) of the Code
and the regulations thereunder;</TD>
</TR>

</TABLE>


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>you are not a controlled foreign corporation that is related
to us through stock ownership;</TD>
</TR>

</TABLE>


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>(a)&nbsp;you provide your name and address and certify, under
penalties of perjury, that you are not a United States person (which
certification may be made on an IRS Form W-8BEN (or other applicable
form)), or (b)&nbsp;you hold your notes through certain foreign
intermediaries or foreign partnerships and you satisfy the
certification requirements of applicable Treasury regulations; and</TD>
</TR>

</TABLE>


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our common stock continues to be actively traded within the
meaning of Section&nbsp;871(h)(4)(C)(v)(I) of the Code and we are not a
&#147;United States real property holding corporation&#148; (as discussed
below).</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you cannot satisfy the requirements described above, payments of
interest (including original issue discount) and any gain treated as ordinary
income realized on the sale, exchange or other disposition of the notes will be
subject to the 30% U.S. federal withholding tax unless you provide us with a
properly executed (1)&nbsp;IRS Form W-8BEN (or other applicable form) claiming an
exemption from or reduction in withholding under the benefit of an applicable
tax treaty or (2)&nbsp;IRS Form W-8ECI (or other applicable form) stating that
interest (including original issue discount) paid on the notes is not subject
to withholding tax because it is effectively connected with your conduct of a
trade or business in the U.S.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you are engaged in a trade or business in the U.S. and interest
(including original issue discount) on the notes is effectively connected with
the conduct of that trade or business, you will be subject to U.S. federal
income tax on that interest on a net income basis (although exempt from the 30%
U.S. federal withholding tax discussed above) generally in the same manner as
if you were a U.S. person as defined under the Code, subject to any
modification provided under an applicable income tax treaty. In addition, if
you are a foreign corporation, you may be subject to a &#147;branch profits tax&#148;
equal to 30% (or lower applicable treaty rate) of your earnings and profits for
the taxable year, subject to adjustments, that are effectively connected with
your conduct of a trade or business in the


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<P align="left" style="font-size: 10pt">U.S. For this purpose, interest (including original issue discount) will
be included in the earnings and profits of such foreign corporation.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As more fully described under &#147;Description of the Notes &#151; Registration
Rights,&#148; upon the occurrence of certain enumerated events we may be required to
pay additional amounts to you. Payments of such additional amounts may be
subject to U.S. federal withholding tax.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Payments on common stock and constructive dividends</I>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any dividends paid to you with respect to the shares of common stock (and
any deemed dividends resulting from certain adjustments, or failure to make
adjustments, to the number of shares of common stock to be issued upon
conversion, see &#147;&#151; U.S. Holders &#151; Constructive distributions&#148; above) will be
subject to U.S. federal withholding tax at a 30% rate or such lower rate as may
be specified by an applicable income tax treaty. However, dividends that are
effectively connected with the conduct of a trade or business within the U.S.
or, where an applicable treaty so provides, dividends that are attributable to
a U.S. permanent establishment, are not subject to the withholding tax, but
instead are subject to U.S. federal income tax on a net income basis at
applicable graduated individual or corporate rates. Certain certification and
disclosure requirements must be complied with in order for effectively
connected income to be exempt from withholding. Any such effectively connected
dividends received by a foreign corporation may, under certain circumstances,
be subject to an additional &#147;branch profits tax&#148; at a 30% rate or such lower
rate as may be specified by an applicable income tax treaty.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A non-U.S. holder of shares of common stock who wishes to claim the
benefit of an applicable treaty rate is required to satisfy applicable
certification and other requirements. If you are eligible for a reduced rate of
U.S. federal withholding tax pursuant to an income tax treaty, you may obtain a
refund of any excess amounts withheld by filing an appropriate claim for refund
with the IRS.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Sale, exchange or redemption of notes or of shares of common stock</I>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any gain realized upon the sale, exchange or other disposition (other than
a conversion or redemption) of notes or upon the sale, exchange, redemption or
other disposition of a share of common stock generally will not be subject to
U.S. federal income tax unless:


<P>

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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>such gain is effectively connected with your conduct of a
trade or business in the U.S.,</TD>
</TR>

</TABLE>


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>you are an individual who is present in the U.S. for 183&nbsp;days
or more in the taxable year of that disposition, and certain other
conditions are met, or</TD>
</TR>

</TABLE>


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>we are or have been a &#147;U.S. real property holding
corporation&#148; for U.S. federal income tax purposes.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We believe that we are not and do not anticipate becoming a &#147;United States
real property holding corporation&#148; for U.S. federal income tax purposes. If we
are or become a &#147;United States real property holding corporation&#148; for U.S.
federal income tax purposes and our common stock is and continues to be
regularly traded on an established securities market only a non-U.S. holder of
common stock who holds or held (at any time during the shorter of the five year
period preceding the date of disposition or the non-U.S. holder&#146;s holding
period) more than five percent of our common stock will be subject to U.S.
federal income tax on the disposition of our common stock.


<P align="left" style="font-size: 10pt"><B>U.S. Federal Estate Tax</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The U.S. federal estate tax will not apply to notes owned by you at the
time of your death, provided that any payment to you with respect to the notes
(including original issue discount) would be eligible for exemption from the
30% federal withholding tax under the rules described above without regard to
the certification requirement described therein. However, shares of common
stock held by you at the time of your death will be included in your gross
estate for U.S. federal estate tax purposes unless an applicable estate tax
treaty provides otherwise.


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<P align="left" style="font-size: 10pt"><B>Backup Withholding and Information Reporting</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>U.S. Holders</I>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you are a U.S. holder of notes, information reporting requirements will
generally apply to all payments we make to you and to the proceeds from a sale
of notes or shares of common stock made to you, unless you are an exempt
recipient such as a corporation. A backup withholding tax, currently at a rate
of 28%, will apply to those payments if you fail to provide a taxpayer
identification number, or a certification of exempt status, or if you fail to
report in full interest income. Any amounts so withheld generally will be
allowed as a credit against the U.S. holder&#146;s U.S. federal income tax
liability, provided that required information is furnished to the IRS.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Non-U.S. Holders</I>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In general, if you are a non-U.S. holder you will not be subject to backup
withholding and information reporting with respect to payments of interest or
dividends that we make to you provided that we do not have actual knowledge or
reason to know that you are a United States person, as defined in the Code, and
you have satisfied the certification requirements described above under &#147;&#151;
Non-U.S. Holders &#151; Payments with respect to the notes.&#148; In general, we must
report annually to the IRS and to each non-U.S. holder any payments on the
notes and our common stock and the proceeds from their sale or other
disposition, regardless of whether withholding was required. Copies of these
information returns may also be made available under the provisions of a
specific treaty or agreement to the tax authorities of the country in which the
non-U.S. holder resides.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, if you are a non-U.S. holder you will not be subject to
backup withholding or information reporting with respect to the proceeds of the
sale of notes or shares of common stock within the U.S. or conducted through
certain U.S.-related financial intermediaries, if (i)&nbsp;the payor receives the
statement described above and does not have actual knowledge that you are a
U.S. person, as defined in the Code, or (ii)&nbsp;you otherwise establish an
exemption.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Backup withholding is not an additional tax. Any amounts withheld under
the backup withholding rules will be allowed as a refund or a credit against
your U.S. federal income tax liability provided the required information is
furnished to the IRS.


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<A name="115"></A>
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<P align="center" style="font-size: 10pt"><B>CERTAIN ERISA CONSIDERATIONS</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following is a summary of certain considerations associated with the
purchase, ownership and disposition of the notes and common stock issuable upon
conversion of the notes by employee benefit plans that are subject to Title I
of the U.S. Employee Retirement Income Security Act of 1974, as amended
(&#147;ERISA&#148;), plans, individual retirement accounts and other arrangements that
are subject to Section&nbsp;4975 of the Code or provisions under United States
federal, state, local, non-U.S. or other laws or regulations that are similar
to such provisions of ERISA or the Code (collectively, &#147;similar laws&#148;); and
entities whose underlying assets are considered to include &#147;plan assets&#148; of
such plans, accounts and other arrangements (each a &#147;plan&#148;).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following discussion is general in nature and is not intended to be
all inclusive. Due to the complexity of these rules and the penalties that may
be imposed upon persons involved in non-exempt prohibited transactions, it is
particularly important that fiduciaries or other persons considering purchasing
notes or shares of common stock issuable upon conversion of the notes on behalf
of, or with the assets of, any plan, consult with their counsel to determine
whether such plan is subject to Title I of ERISA, Section&nbsp;4975 of the Code
and/or any similar laws and whether an exemption would be applicable to the
purchase and holding of the notes and the common stock issuable upon conversion
of the notes.


<P align="left" style="font-size: 10pt"><B>General Fiduciary Matters</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ERISA and the Code impose certain duties on persons who are fiduciaries of
a plan subject to Title I of ERISA or Section&nbsp;4975 of the Code (an &#147;ERISA
plan&#148;) and prohibit certain transactions involving the assets of an ERISA plan
and its fiduciaries or other interested parties. Under ERISA and the Code, any
person who exercises any discretionary authority or control over the
administration of such an ERISA plan or the management or disposition of the
assets of such an ERISA plan, or who renders investment advice for a fee or
other compensation to such an ERISA plan, is generally considered to be a
fiduciary of the ERISA plan.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In considering the purchase of notes or common stock issuable upon
conversion of the notes to be held as the assets of any plan, a fiduciary
should determine whether the investment in the notes or the common stock
issuable upon conversion of the notes is in accordance with the documents and
instruments governing the plan and the applicable provisions of ERISA, the Code
or any similar law relating to a fiduciary&#146;s duties to the plan, including,
without limitation, the prudence, diversification, delegation of control and
prohibited transaction provisions of ERISA, the Code and any other applicable
similar laws. Plan fiduciaries should also consider the entire discussion
under the preceding section entitled &#147;Certain U.S. Federal Income Tax
Considerations,&#148; as material contained therein may be relevant to any decision
by a plan to purchase notes (or common stock issuable upon conversion of the
notes).


<P align="left" style="font-size: 10pt"><B>Prohibited Transaction Issues</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;406 of ERISA and Section&nbsp;4975 of the Code prohibit ERISA plans
from engaging in specified transactions involving plan assets with persons or
entities who are &#147;parties in interest&#148; (within the meaning of Section&nbsp;3(14) of
ERISA) or &#147;disqualified persons&#148; (within the meaning of Section&nbsp;4975 of the
Code), unless an exemption is available. A party in interest or disqualified
person that engaged in a non-exempt prohibited transaction may be subject to
excise taxes and other penalties and liabilities under ERISA and the Code. In
addition, the fiduciary of the ERISA plan that engaged in a non-exempt
prohibited transaction may be subject to penalties and liabilities under ERISA
and the Code.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The purchase and holding of the notes (or common stock issuable upon
conversion of the notes) by an ERISA plan with respect to which we or the
initial purchaser, are considered a party in interest or a disqualified person
may constitute or result in a direct or indirect prohibited transaction under
Section&nbsp;406 of ERISA and/or Section&nbsp;4975 of the Code, unless the notes (or
common stock issuable upon conversion of the notes) are acquired and held in
accordance with an applicable statutory, class or individual prohibited
transaction exemption. In this regard, the U.S. Department of Labor (the &#147;DOL&#148;)
has issued prohibited transaction class exemptions, or &#147;PTCEs,&#148; that may apply
to the purchase and holding of the notes. These class exemptions include,
without limitation, PTCE 91-38 regarding bank collective investment funds, PTCE
90-1 regarding insurance company pooled separate accounts, PTCE 84-14 regarding
transactions determined by independent qualified professional asset
managers, PTCE 95-60 regarding life insurance company general accounts and PTCE
96-23 regarding transactions determined by in-house asset managers. There can
be no assurance that all of the conditions of any such exemptions will be
satisfied.

<P align="center" style="font-size: 10pt">74
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="116"></A>
</DIV>

<P align="center" style="font-size: 10pt"><B>LEGAL MATTERS</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The validity of the notes offered hereby and the shares of common stock
issuable upon conversion thereof will be passed upon for us by Proskauer Rose
LLP, New York, New York.

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

<P align="center" style="font-size: 10pt"><B>EXPERTS</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The consolidated financial statements of Henry Schein, Inc. as of December
27, 2003 and December&nbsp;28, 2002 and for each of the three years in the period
ended December&nbsp;27, 2003, incorporated by reference in this prospectus, have
been audited by BDO Seidman, LLP, an independent registered public accounting
firm.

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

<P align="center" style="font-size: 10pt"><B>WHERE YOU CAN FIND MORE INFORMATION</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are subject to the informational requirements of the Exchange Act, and
file reports, proxy statements and other information with the Commission. These
reports, proxy statements and other information may be inspected and copied at
the public reference facilities maintained by the Commission at Judiciary
Plaza, 450 Fifth Street, N.W., Washington, D.C. 20549. You may obtain
information on the operation of the Public Reference Room by calling the
Commission at (800)&nbsp;SEC-0330. The Commission also maintains a website that
contains reports, proxy and information statements and other information
regarding registrants like us that file electronically with the Commission (at
www.sec.gov).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You should rely only upon the information provided in this prospectus or
incorporated herein by reference. We have not authorized anyone to provide you
with different information. You should not assume that the information
contained in this prospectus, including any information incorporated herein by
reference, is accurate as of any other date other than that set forth on the
front cover of this prospectus.

<DIV align="left">
<A name="119"></A>
</DIV>

<P align="center" style="font-size: 10pt"><B>INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In this document, we &#147;incorporate by reference&#148; the information we file
with the SEC, which means that we can disclose important information to you by
referring to that information. The information incorporated by reference is
considered to be a part of this prospectus, and later information filed with
the SEC will update and supersede this information. We incorporate by reference
the documents listed below and any future filings made with the SEC under
Sections&nbsp;13(a), 13(c), 14 or 15(d) of the Securities Exchange Act of 1934 after
the date of this prospectus and until this offering is completed. The documents
incorporated by reference are:


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our Quarterly Reports on Form 10-Q for the quarters ended
March&nbsp;27, 2004, June&nbsp;26, 2004 and September&nbsp;25, 2004;</TD>
</TR>

</TABLE>


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our Annual Report on Form 10-K for the year ended December&nbsp;27, 2003;</TD>
</TR>

</TABLE>


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our Definitive Proxy Statement filed with the SEC on April&nbsp;27, 2004; and</TD>
</TR>

</TABLE>


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our current reports on Form 8-K filed on April&nbsp;27, 2004, July
2, 2004, August&nbsp;12, 2004, August&nbsp;30, 2004, October&nbsp;6, 2004 and
October&nbsp;26, 2004.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you request, in writing or orally, a copy of any or all of the
documents incorporated by reference, we will send to you the copies requested
at no charge. However, we will not send exhibits to such documents unless such
exhibits are specifically incorporated by reference in such documents. You
should direct requests for such copies to: Henry Schein, Inc., 135 Duryea Road,
Melville, New York 11747, Attn: Investor Relations, facsimile number: (631)
843-5975.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We maintain an Internet website at <I>www.henryschein.com</I>. Our website and
information at that site, or linked to that site, are not incorporated into
this prospectus.


<P align="center" style="font-size: 10pt">75
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any statement made in this prospectus or in a document incorporated or
deemed to be incorporated by reference in this prospectus will be deemed to be
supplemented, modified or superseded for purposes of this prospectus to the
extent that a statement contained in this prospectus or in any subsequently
filed document that is also incorporated or is deemed to be incorporated by
reference in this prospectus supplements, modifies or supersedes such
statement. Any such statement so modified or superseded will be deemed not,
except as so modified or superseded, to constitute a part of this prospectus.


<P align="center" style="font-size: 10pt">76
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<HR size="4" noshade color="#000000" style="margin-top: -5px">
<HR size="1" noshade color="#000000" style="margin-top: -10px">








<P align="center" style="font-size: 10pt"><B>$240,000,000<BR>
(Aggregate Principal Amount)</B><BR>



<IMG SRC="y04660a1y0466000.gif" alt="&#091;HENRY SCHEIN LOGO&#093;">



<P align="center" style="font-size: 10pt"><B>3.00% Convertible Contingent Senior Notes due 2034 and<BR>
the Common Stock Issuable Upon Conversion of the Notes</B>


&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<HR align="center" size="1" noshade width="25%">


<P align="center" style="font-size: 10pt"><B>PROSPECTUS</B>


&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<HR align="center" size="1" noshade width="25%">


<P>
<HR size="1" noshade color="#000000" style="margin-top: -2px">
<HR size="4" noshade color="#000000" style="margin-top: -10px">








<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="center" style="font-size: 10pt"><B>PART II</B>



<P align="center" style="font-size: 10pt"><B>INFORMATION NOT REQUIRED IN PROSPECTUS</B>



<P align="left" style="font-size: 10pt"><B>Item&nbsp;14. Other Expenses of Issuance and Distribution.</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth an estimate (other than with respect to the
Registration Fee) of the expenses payable by Henry Schein in connection with
the sale and distribution of the securities being registered hereby, other than
underwriting discounts and commissions:

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">

<!-- Begin Table Head --><TR valign="bottom">
    <TD width="87%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>

<!-- End Table Head -->

<!-- Begin Table Body -->
<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Securities and Exchange Commission Registration fee</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">30,408</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Printing</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,000</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Accounting fees and expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,000</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Legal fees and expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50,000</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Miscellaneous</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,000</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>

<TD align="right">102,408</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>


<!-- End Table Body -->
</TABLE>
</DIV>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Henry Schein will bear all expenses shown above. The selling
securityholders will bear all underwriting discounts and selling commissions
and transfer taxes applicable to the sale of the notes and the common stock
issuable upon conversion of the notes registered pursuant to this registration
statement.


<P align="left" style="font-size: 10pt"><B>Item&nbsp;15. Indemnification of Directors and Officers.</B>



<DIV align="left"><FONT size="1">

</FONT></DIV>
<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Delaware General Corporation
Law.</I> Section 145 of the Delaware General Corporation Law grants
a corporation the power to indemnify its officers and directors, under certain circumstances and
subject to certain conditions and limitations as stated therein, against expenses, including
attorneys&#146; fees, judgments, fines and amounts paid in settlement actually and reasonably incurred
by them as a result of threatened, pending or completed actions, suits or proceedings
brought against them by reason of the fact that the person is or was an officer or director of
the corporation or served at the request of the corporation if they acted in good faith and
in a manner they reasonably believed to be in or not opposed to the best interests of the
corporation, and, with respect to any criminal action or proceeding, had no reasonable cause
to believe their conduct was unlawful.
<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>
<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Amended
and Restated Certificate of Incorporation.</I> Henry Schein&#146;s
Amended and Restated Certificate of Incorporation provides that it shall indemnify to the
extent authorized by the General Corporation Law of the State of Delaware each person who
was or is a party or is threatened be made a party to or is involved in any pending or
completed action, suit or proceeding, whether civil, criminal, administrative or investigative,
by reason of the fact that he or she (1) is or was a director or officer of Henry Schein or
(2) is or was serving at the request of Henry Schein as a director, officer, employee or agent
of another corporation, partnership, joint venture, trust or other enterprise, including service
with respect to employee benefit plans, against all expense, liability and loss (including
attorneys&#146; fees, judgments, fines, ERISA excise taxes or penalties and amounts paid or
to be paid in settlement) actually and reasonably incurred or suffered by such person in
connection therewith. Such indemnification obligation continues after a person ceases to be a
director, officer, employee or agent and inures to the benefit of his or her heirs, executors
and administrators. Henry Schein may purchase and maintain insurance to protect itself and any
director, officer, employee or agent of Henry Schein or another corporation, partnership, joint
venture, trust or other enterprise, including service with respect to employee benefit plans,
against any such expense, liability or loss.
<DIV align="left"><FONT size="1">

</FONT></DIV>


<P align="center" style="font-size: 10pt">II-1
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insofar as indemnification for liabilities arising under the Securities
Act of 1933, as amended (the &#147;Securities Act&#148;) may be permitted to directors,
officers and controlling persons of Henry Schein pursuant to the foregoing
provisions, or otherwise, Henry Schein has been advised that in the opinion of
the Securities and Exchange Commission such indemnification is against public
policy as expressed in the Securities Act and is, therefore, unenforceable.


<P align="left" style="font-size: 10pt"><B>Item&nbsp;16. Exhibits</B>


<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">

<!-- Begin Table Head --><TR valign="bottom">
    <TD width="7%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="90%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Exhibit Number</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Description of Exhibit</B><HR size="1" noshade></TD>
</TR>


<!-- End Table Head -->

<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.1**
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Certificate Evidencing Shares of Common Stock</TD>
</TR>

<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.2***
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Indenture by and between Henry Schein, Inc. and The Bank of New York, as trustee,
dated as of August&nbsp;9, 2004, including form of Note</TD>
</TR>

<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.3***
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Note (included in Exhibit&nbsp;4.2)</TD>
</TR>

<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.4***
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Registration Rights Agreement dated as of August&nbsp;9, 2004 among Henry Schein, Lehman
Brothers, Inc. and J.P. Morgan Securities Inc. as Initial Purchasers</TD>
</TR>

<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">5.1**
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Legal Opinion of Proskauer Rose LLP</TD>
</TR>

<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>


<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">8.1*
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Legal Opinion of Proskauer Rose LLP
as to certain U.S. federal income tax considerations.</TD>
</TR>


<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">12.1**
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Statement regarding Computation of Ratio of Earnings to Fixed Charges</TD>
</TR>

<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">23.1**
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent of BDO Seidman LLP</TD>
</TR>

<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">23.2**
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent of Proskauer Rose LLP (contained in Exhibit&nbsp;5.1 to this registration statement)</TD>
</TR>

<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">24.1**
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Power of Attorney (contained in the signature pages to this registration statement)</TD>
</TR>

<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">25.1**
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Statement of Eligibility under the Trust Indenture Act of 1939, as amended, of The
Bank of New York, as trustee</TD>
</TR>


<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>



<P>

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


<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="bottom">


</TR>

<TR valign="top">
    <TD width="1%" nowrap align="right">*</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">Filed herewith.</TD>
</TR>

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

<TR valign="bottom">

<TD align="right" valign="top"><DIV align="left"><FONT size="1">

</FONT></DIV></TD>
</TR>

<TR valign="top">
    <TD width="1%" nowrap align="right">**</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">Previously filed with the registrant&#146;s
Registration Statement on Form S-3 filed November 5, 2004.</TD>
</TR>
<TR valign="bottom">

<TD align="right" valign="top"><DIV align="left"><FONT size="1">

</FONT></DIV></TD>
</TR>

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

<TR valign="bottom">

<TD align="right" valign="top"><DIV align="left"><FONT size="1">

</FONT></DIV></TD>
</TR>

<TR valign="top">
    <TD width="1%" nowrap align="right">***</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">Incorporated by reference from our quarterly report on Form 10-Q for the
fiscal quarter ended September&nbsp;25, 2004 previously filed with the SEC.</TD>
</TR>
<TR valign="bottom">

<TD align="right" valign="top"><DIV align="left"><FONT size="1">

</FONT></DIV></TD>
</TR>

</TABLE>



<P align="left" style="font-size: 10pt"><B>Item&nbsp;17. Undertakings</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The undersigned Registrant hereby undertakes:


<P>

<P align="left" style="font-size: 10pt">(A)(1) To file, during any period in which offers or sales
are being made, a post-effective amendment to this
registration statement:


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To include any prospectus required by Section&nbsp;10(a)(3) of the
Securities Act;</TD>
</TR>

</TABLE>


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To reflect in the prospectus any facts or events arising
after the effective date of the registration statement (or the most
recent post-effective amendment thereof) which, individually or in
the aggregate, represent a fundamental change in the information set
forth in the registration statement. Notwithstanding the foregoing,
any increase or decrease in volume of securities offered (if the
total dollar value of securities offered would not exceed that which
was registered) and any deviation from the low or high end of the
estimated maximum offering range may be reflected in the form of
prospectus filed with the Commission pursuant to Rule 424(b) if, in
the aggregate, the changes in</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">II-2
</DIV>

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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 style="font-family: 'Times New Roman',Times,serif">


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"><TR valign="top" style="font-size: 10pt; color: #textcolor#; background: #bgcolor#">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>volume and price represent no more than a 20% change in the maximum
aggregate offering price set forth in the &#147;Calculation of Registration
Fee&#148; table in the effective registration statement; and</TD>
</TR>

</TABLE>


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To include any material information with respect to the plan
of distribution not previously disclosed in the registration
statement or any material change to such information in the
registration statement;</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:6%; font-size: 10pt">provided, however, that paragraphs (A)(1)(i) and (A)(1)(ii) above do
not apply if the information required to be included in a
post-effective amendment by those paragraphs is contained in periodic
reports filed with or furnished to the Commission by the Registrant
pursuant to section 13 of 15(d) of the Securities Exchange Act of 1934
that are incorporated by reference in this registration statement.


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>That, for the purpose of determining any liability under the
Securities Act, each such post-effective amendment shall be deemed to
be a new registration statement relating to the securities offered
therein, and the offering of such securities at that time shall be
deemed to be the initial bona fide offering thereof.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;&nbsp;&nbsp;</TD>
    <TD>To remove from registration by means of a post-effective amendment
any of the securities being registered which remain unsold at the
termination of the offering.</TD>
</TR>

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



<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">(B)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>For purposes of determining any liability under the Securities Act of
1933, each filing of the Registrant&#146;s annual report pursuant to Section
13(a) or Section 15(d) of the Securities Exchange Act of 1934 (and, where
applicable, each filing of an employee benefit plan&#146;s annual report
pursuant to Section 15(d) of the Securities Exchange Act of 1934) that is
incorporated by reference in the registration statement shall be deemed to
be a new registration statement relating to the securities offered
therein, and the offering of such securities at that time shall be deemed
to be the initial bona fide offering thereof.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">(C)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Insofar as indemnification for liabilities arising under the Securities
Act of 1933 may be permitted to directors, officers and controlling
persons of the Registrant pursuant to the provisions described in Item&nbsp;15
hereof or otherwise, the Registrant has been advised that in the opinion
of the Securities and Exchange Commission such indemnification is against
public policy as expressed in the Securities Act and is, therefore,
unenforceable. In the event that a claim for indemnification against such
liabilities (other than the payment by the Registrant of expenses incurred
or paid by a director, officer or controlling person of the Registrant in
the successful defense of any action, suit or proceeding) is asserted by
such director, officer or controlling person in connection with the
securities being registered, the Registrant will, unless in the opinion of
counsel the matter has been settled by controlling precedent, submit to a
court of appropriate jurisdiction the question whether such
indemnification by it is against public policy as expressed in the
Securities Act and will be governed by the final adjudication of such
issue.</TD>
</TR>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">(D)</td>
    <TD width="1%">(1)</td>
<td>For purposes of determining any liability under the Securities Act of
1933, the information omitted from the form of prospectus filed as part of
this registration statement in reliance upon Rule&nbsp;430A and contained in a
form of prospectus filed by the Registrant pursuant to Rule&nbsp;424(b)(1) or
(4)&nbsp;or 497(h) under the Securities Act shall be deemed to be part of this
registration statement as of the time it was declared effective.</td>


<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>For the purpose of determining any liability under the Securities
Act of 1933, each post-effective amendment that contains a form of
prospectus shall be deemed to be a new registration statement relating
to the securities offered therein, and the offering of such securities
at that time shall be deemed to be the initial bona fide offering
thereof.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">(E)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The undersigned Registrant hereby undertakes to file an application for
the purpose of determining the eligibility of the trustee to act under
subsection (a)&nbsp;of Section&nbsp;310 of the Trust Indenture Act (the &#147;TIA&#148;) in
accordance with the rules and regulations prescribed by the Commission
under Section&nbsp;305(b)(2) of the TIA.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt">II-3
</DIV>

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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 style="font-family: 'Times New Roman',Times,serif">

<P align="center" style="font-size: 10pt"><B>SIGNATURES</B>



<DIV align="left"><FONT size="1">

</FONT></DIV>
<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Act, the Registrant
certifies that it has reasonable grounds to believe that it meets all of the
requirements for filing on Form S-3 and has duly authorized this
amendment no.&nbsp;1 to registration
statement to be signed on its behalf by the undersigned, thereunto duly
authorized, in the City of Melville and State of New York, on the
14th&nbsp;day of
January, 2005.
<DIV align="left"><FONT size="1">

</FONT></DIV>


<DIV align="left"><FONT size="1">

</FONT></DIV>
<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top">&nbsp;</TD>
    <TD colspan="3"><B>HENRY SCHEIN, INC.</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD>&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000">/s/
Steven Paladino
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD>Steven Paladino&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">Title: Executive Vice President,<br>
Chief Financial Officer and Director&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left" style="font-size: 10pt">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the
Securities Act, this amendment no.&nbsp;1 to registration
statement has been signed by the following persons in their respective
capacities and on the respective dates set forth opposite their names.

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">

<!-- Begin Table Head --><TR valign="bottom">
    <TD width="36%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="37%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="17%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>Signature</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Capacity</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Date</B><HR size="1" noshade></TD>
</TR>


<!-- End Table Head -->

<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" nowrap valign="top">/s/ Stanley M. Bergman*<BR>
<HR size="1" noshade>
Stanley M. Bergman</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
Chairman, Chief Executive Officer,<BR>
President and Director<BR>
(Principal Executive Officer)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">January&nbsp;14, 2005</TD>
</TR>


<TR valign="bottom" style="padding-top: 1em">
    <TD align="center" nowrap valign="top">/s/ Gerald A. Benjamin*<BR>
<HR size="1" noshade>
Gerald A. Benjamin</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">January&nbsp;14, 2005</TD>
</TR>

<TR valign="bottom" style="padding-top: 1em">
    <TD align="center" nowrap valign="top">/s/ James P. Breslawski*<BR>
<HR size="1" noshade>
James P. Breslawski</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">January&nbsp;14, 2005</TD>
</TR>

<TR valign="bottom" style="padding-top: 1em">
    <TD align="center" nowrap valign="top">/s/ Mark E. Mlotek*<BR>
<HR size="1" noshade>
Mark E. Mlotek</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">January&nbsp;14, 2005</TD>
</TR>

<TR valign="bottom" style="padding-top: 1em">
    <TD align="center" nowrap valign="top">/s/ Barry J. Alperin*<BR>
<HR size="1" noshade>
Barry J. Alperin</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">January&nbsp;14, 2005</TD>
</TR>

<TR valign="bottom" style="padding-top: 1em">
    <TD align="center" nowrap valign="top">/s/ Pamela Joseph*<BR>
<HR size="1" noshade>
Pamela Joseph</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">January&nbsp;14, 2005</TD>
</TR>

<TR valign="bottom" style="padding-top: 1em">
    <TD align="center" nowrap valign="top">/s/ Donald J. Kabat*<BR>
<HR size="1" noshade>
Donald J. Kabat</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">January&nbsp;14, 2005</TD>
</TR>


<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>


<P align="center" style="font-size: 10pt">II-4
</DIV>

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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 style="font-family: 'Times New Roman',Times,serif">


<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">

<!-- Begin Table Head --><TR valign="bottom">
    <TD width="36%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="37%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="17%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>Signature</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Capacity</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Date</B><HR size="1" noshade></TD>
</TR>


<!-- End Table Head -->

<!-- Begin Table Body -->
<TR valign="bottom" style="padding-top: 1em">
    <TD align="center" nowrap valign="top">/s/ Marvin H. Schein*<BR>
<HR size="1" noshade>
Marvin H. Schein</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">January&nbsp;14, 2005</TD>
</TR>

<TR valign="bottom" style="padding-top: 1em">
    <TD align="center" nowrap valign="top">/s/ Irving Shafran*<BR>
<HR size="1" noshade>
Irving Shafran</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">January&nbsp;14, 2005</TD>
</TR>

<TR valign="bottom" style="padding-top: 1em">
    <TD align="center" nowrap valign="top">/s/ Philip A. Laskawy*<BR>
<HR size="1" noshade>
Philip A. Laskawy</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">January&nbsp;14, 2005</TD>
</TR>

<TR valign="bottom" style="padding-top: 1em">
    <TD align="center" nowrap valign="top">/s/ Norman S. Matthews*<BR>
<HR size="1" noshade>
Norman S. Matthews</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">January&nbsp;14, 2005</TD>
</TR>

<TR valign="bottom" style="padding-top: 1em">
    <TD align="center" nowrap valign="top">/s/ Dr. Louis W. Sullivan*<BR>
<HR size="1" noshade>
Dr. Louis W. Sullivan</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">January&nbsp;14, 2005</TD>
</TR>

<TR valign="bottom" style="padding-top: 1em">
    <TD align="center" nowrap valign="top">/s/ Dr. Margaret A.
Hamburg*<BR>
<HR size="1" noshade>
Dr. Margaret A. Hamburg</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">January&nbsp;14, 2005</TD>
</TR>

<TR valign="bottom" style="padding-top: 1em">
    <TD align="left" nowrap valign="top">* By Steven Paladino,
attorney-in-fact<BR>pursuant to a power of attorney previously filed.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>


<TR valign="bottom" style="padding-top: 1em">
    <TD align="center" nowrap valign="top">/s/ Steven Paladino<BR>
<HR size="1" noshade>
Steven Paladino</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
Executive Vice President,<BR>
Chief Financial<br>
Officer and Director<BR>
(Principal Financial and<BR>
Accounting Officer)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">January&nbsp;14, 2005</TD>
</TR>


<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left"><FONT size="1">

</FONT></DIV>



<P align="center" style="font-size: 10pt">II-5
</DIV>


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<DOCUMENT>
<TYPE>EX-8.1
<SEQUENCE>2
<FILENAME>y04660a1exv8w1.htm
<DESCRIPTION>EX-8.1: LEGAL OPINION OF PROSKAUER ROSE LLP
<TEXT>
<HTML>
<HEAD>
<TITLE>EX-8.1:</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="right" style="font-size: 10pt">Exhibit&nbsp;8.1



<P align="center" style="font-size: 10pt">&#091;PROSKAUER ROSE LLP LETTERHEAD&#093;



<P align="center" style="font-size: 10pt">TAX OPINION AND CONSENT OF PROSKAUER ROSE LLP



<DIV align="left"><FONT size="1">

</FONT></DIV>
<P align="left" style="font-size: 10pt">January&nbsp;14, 2005<BR>
Board of Directors of<BR>
Henry Schein, Inc.<BR>
135 Duryea Road<BR>
Melville, New York 17747
<DIV align="left"><FONT size="1">

</FONT></DIV>


<P align="left" style="font-size: 10pt">Ladies and Gentlemen:


<P align="left" style="font-size: 10pt">You have requested our tax opinion in connection with the filing by Henry Schein, Inc., a Delaware
corporation (the &#147;Company&#148;), with the Securities and Exchange Commission of a Registration
Statement on Form&nbsp;S-3 (the &#147;Registration Statement&#148;) under the Securities Act of 1933 (the
&#147;Securities Act&#148;) relating to the registration of an aggregate principal amount of $240,000,000 of
3.00% Convertible Contingent Senior Notes due 2034 of the Company (the &#147;Notes&#148;) and 2,589,552
shares of common stock, par value $0.01 per share, of the Company issuable in certain circumstances
upon conversion of the Notes (the &#147;Conversion Shares&#148;) to be offered and sold by certain selling
securityholders listed in the Registration Statement (the &#147;Selling Securityholders&#148;).



<P align="left" style="font-size: 10pt">We have participated in the preparation of the Registration Statement, and have examined such
records, documents and other instruments as we have deemed relevant, and have discussed with
representatives of the Company and such other persons such questions of fact, as we have deemed
proper and necessary as a basis for rendering this opinion. We have also assumed without
investigation the authenticity of any document submitted to us as an original, the conformity to
the original of any document submitted to us as a copy, the authenticity of the originals of such
latter documents, the genuineness of all signatures and the legal capacity of natural persons
signing such documents.



<P align="left" style="font-size: 10pt">This opinion is based on relevant provisions of the Internal Revenue Code of 1986, as amended,
Treasury Regulations thereunder (including proposed and temporary regulations) and interpretations
of the foregoing as expressed in court decisions, administrative determinations and legislative
history, as of the date hereof. These provisions and interpretations are subject to change, which
may or may not be retroactive in effect. Our opinion is not binding on the Internal Revenue Service
or on the courts and, therefore, provides no guarantee or certainty as to results. In addition, our
opinion is based on certain factual representations and assumptions described herein. Any change
occurring after the date hereof in, or a variation from, any of the foregoing bases for our opinion
could affect the conclusions expressed below.



<P align="left" style="font-size: 10pt">Based on the foregoing, and in reliance thereon, we are of the opinion that the statements made in
the Offering Memorandum under the caption &#147;Certain U.S. Federal Income Tax Considerations,&#148; insofar
as they purport to constitute summaries of matters of United States




<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="left" style="font-size: 10pt">federal income tax law and regulations or legal conclusions with respect thereto, constitute
accurate summaries of the matters set forth therein in all material respects.



<P align="left" style="font-size: 10pt">We hereby consent to the filing of this opinion as an exhibit to the Registration Statement in the
prospectus contained in the Registration Statement. In so doing, we do not admit that we are in the
category of persons whose consent is required under Section&nbsp;7 of the Securities Act or the rules
and regulations of the Securities and Exchange Commission thereunder.



<P align="left" style="font-size: 10pt">Very truly yours,



<P align="left" style="font-size: 10pt">Proskauer Rose LLP




<P align="center" style="font-size: 10pt">&nbsp;
</DIV>


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