COVIDIEN REPORTS FISCAL 2007 NET SALES OF $10.2 BILLION.

Retail Products sales of $164 million in the fourth quarter were 23% below last year's $213 million. The sales decline resulted primarily from lower infant care volume, attributable to the planned withdrawal from several low-margin, private-label contracts, coupled with greater price competition by branded competitors.

For fiscal 2007, sales of Retail Products declined 13% to $744 million from $855 million a year ago.

FISCAL 2008 OUTLOOK

Consistent with prior guidance, the company estimates sales growth for the 2008 fiscal year will be in the 3% - 5% range, excluding the impact of foreign exchange, or 4% - 6% including foreign exchange at current rates. Net sales, including foreign exchange at current rates, are expected to grow 6% to 8% versus 2007 in the Medical Devices segment, 3% to 6% in Pharmaceutical Products and 7% to 10% in Imaging Solutions. The company expects sales in Medical Supplies to be flat to down 3%, with Retail Products sales flat to down 5%. Consistent with prior guidance, the operating margin is expected to be in the 19% - 20% range and we anticipate the effective tax rate will be in the 30% - 32% range for fiscal 2008, excluding the impact of one-time items.

ABOUT COVIDIEN LTD.

Covidien is a leading global healthcare products company that creates innovative medical solutions for better patient outcomes and delivers value through clinical leadership and excellence. Covidien manufactures, distributes and services a diverse range of industry-leading product lines in five segments: Medical Devices, Pharmaceutical Products, Imaging Solutions, Medical Supplies and Retail Products. With 2007 revenue of $10 billion, Covidien has more than 43,000 employees worldwide in 57 countries, and its products are sold in over 130 countries.

For more information, call 508/452-4372 and visit http://www.covidien.com.