FINANCIAL HIGHLIGHTS Debt to  Total Capitalization Edwards  used its strong  cash flows  to continue to  reduce total debt  in  2001. June 30, 2000 56.0% Dec. 31, 2000 49.0% Dec. 31, 2001 40.0% 2001 40.0% 2000 49.0% 2000 56.0% Gross Profit as a  Percentage of Sales Edwards  has improved  its gross profit  margin through  recent divestitures  and strong sales  of higher-margin  Cardiac Surgery  products. 1999 46.5% 2000 47.0% 2001 53.2% Net  Income * (in millions) Recording  24%  growth in  2001 , Edwards exceeded its  20%  net income growth goal. * Pro forma and excluding non-recurring charges (see Net Income (Loss), page 20). 2001 $63 2000 $51 1999 $41 1998 $27 R&D as a  Percentage of Sales * Edwards is committed  to enriching its product  pipeline by increasing  investments in R & D. * Pro forma and excluding  divested product lines  (see Research & Development  Expenses, page 17). 2001 8.7% 2000 7.6% 1999 6.6% 1998 6.5% 9 Edwards Lifesciences Corporation 8 Edwards Lifesciences Corporation