Bristol-Myers Squibb  New Brunswick Facility – Environmental & Personal Injury Lawsuits  North Brunswick Township Board of Education  OTHER PROCEEDINGS  Italy Investigation  SEC Germany Investigation  Since May 2008, over 250 lawsuits have been filed against the Company in New Jersey Superior Court by or on behalf of current and  former residents of New Brunswick, New Jersey who live or have lived adjacent to the Company’s New Brunswick facility. The  complaints either allege various personal injuries damages resulting from alleged soil and groundwater contamination on their  property stemming from historical operations at the New Brunswick facility, or are claims for medical monitoring. A portion of these  complaints also assert claims for alleged property damage. In October 2008, the New Jersey Supreme Court granted Mass Tort status  to these cases and transferred them to the New Jersey Superior Court in Atlantic County for centralized case management purposes.  The Company intends to defend itself vigorously in this litigation. Discovery is ongoing. Since October 2011, over 100 additional  cases have been filed in New Jersey Superior Court and removed by the Company to United States District Court, District of New  Jersey. It is not possible at this time to reasonably assess the outcome of these lawsuits or the potential impact on the Company.  As previously disclosed, in October 2003, the Company was contacted by counsel representing the North Brunswick, NJ Board of  Education (BOE) regarding a site where waste materials from E.R. Squibb and Sons may have been disposed from the 1940’s through  the 1960’s. Fill material containing industrial waste and heavy metals in excess of residential standards was discovered during an  expansion project at the North Brunswick Township High School, as well as at a number of neighboring residential properties and  adjacent public park areas. In January 2004, the New Jersey Department of Environmental Protection (NJDEP) sent the Company and  others an information request letter about possible waste disposal at the site, to which the Company responded in March 2004. The  BOE and the Township, as the current owners of the school property and the park, are conducting and jointly financing soil  remediation work and ground water investigation work under a work plan approved by the NJDEP, and have asked the Company to  contribute to the cost. The Company is actively monitoring the clean-up project, including its costs. To date, neither the school board  nor the Township has asserted any claim against the Company. Instead, the Company and the local entities have negotiated an  agreement to attempt to resolve the matter by informal means, and avoid litigation. A central component of the agreement is the  provision by the Company of interim funding to help defray cleanup costs and assure the work is not interrupted. The Company  transmitted interim funding payments in December 2007 and November 2009. The parties commenced mediation in late 2008;  however, those efforts were not successful and the parties moved to a binding allocation process. The parties are expected to conduct  fact and expert discovery, followed by formal evidentiary hearings and written argument. Hearings likely will be scheduled for mid- to-late 2013. In addition, in September 2009, the Township and BOE filed suits against several other parties alleged to have  contributed waste materials to the site. The Company does not currently believe that it is responsible for any additional amounts  beyond the two interim payments totaling $4 million already transmitted. Any additional possible loss is not expected to be material.  In July 2011, the Public Prosecutor in Florence, Italy (Italian Prosecutor) initiated a criminal investigation against the Company’s  subsidiary in Italy (BMS Italy). The allegations against the Company relate to alleged activities of a former employee who left the  Company in the 1990s. The Italian Prosecutor also had requested interim measures that a judicial administrator be appointed to  temporarily run the operations of BMS Italy. In October 2012, the parties reached an agreement to resolve the request for interim  measures which resulted in the Italian Prosecutor withdrawing the request and this request was accepted by the Florence Court. It is  not possible at this time to assess the outcome of the underlying investigation or its potential impact on the Company.  In October 2006, the SEC informed the Company that it had begun a formal inquiry into the activities of certain of the Company’s  German pharmaceutical subsidiaries and its employees and/or agents. The SEC’s inquiry encompasses matters formerly under  investigation by the German prosecutor in Munich, Germany, which have since been resolved. The Company understands the inquiry  concerns potential violations of the Foreign Corrupt Practices Act (FCPA). The Company is cooperating with the SEC.  In March 2012, the Company received a subpoena from the SEC. The subpoena, issued in connection with an investigation under the  FCPA, primarily relates to sales and marketing practices in various countries. The Company is cooperating with the government in its  investigation of these matters.  FCPA Investigation 70