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C. R. Bard, Inc.

2003 Annual Report

ABOUT BARD

C. R. Bard, Inc. is a leading multinational developer,
manufacturer, and marketer of innovative, life-enhancing
medical technologies in the fields of Vascular, Urology,
Oncology and Surgical Specialty products.

Bard markets its products and services worldwide to
hospitals, individual healthcare professionals, extended
care facilities and alternate site facilities.

Bard pioneered the development of single-patient-use
medical products for hospital procedures; today Bard
is dedicated to pursuing technological innovations that
offer superior clinical benefits while helping to reduce
overall costs.

Contents
1 Financial Highlights
3 Letter to Shareholders
7 An Integrated Approach
to Customers’ Needs
16 Product Group Review
17 Charles Russell Bard
Award Recipients
18 Board of Directors
19 Corporate Officers
and Organization
20 Corporate Data
Form 10-K enclosed
in back cover pocket

a charge for corporate severance related costs of $4.181.2.7 million after tax ($0.008.273.2.2.181.100 Net income $0.400 $00. This report contains forward-looking statements.07 diluted earnings per share).99 3.3 million after tax ($0. 2002 and 2003 affect the comparability of the company’s results of operations (in dollars) between periods. certain events in each of 2001. A copy is enclosed with this mailing.0 million after tax ($0.84 .03 diluted earnings per share) and a charge for product line asset write-downs of $3.64.500 Diluted earnings per share $0000. 2001 per SFAS 142.90 2001 2002 2003 Research and development expense $00.86 .35 $0.0155.7.67 diluted earnings per share).3 1.0003.24 diluted earnings per share) of +2% +5% goodwill amortization.08 diluted earnings per share) and a gain from the reversal of certain legal accruals of $3.25 Diluted Earnings Per Share* (in dollars) 2.143.0003.0081.1 million after tax ($0. FINANCIAL HIGHLIGHTS Net Sales (in millions of dollars) (All dollar figures in thousands except per share data) 2001 2002 2003 1.87 Dividends per share $0000.3.300 Closing stock price $000. Please refer to our detailed statement regarding forward-looking information in the Annual Report on Form 10-K for the year ended December 31.41 diluted earnings per share). 1 .273.700 $0.5 million after tax ($0.06 diluted earnings per share). The total of these items is $35.168. 2003.50 $000.400 Number of employees 000.04 diluted earnings per share) and the final adjustment of 2002 restructuring charges and reserves for certain items of $1. a gain from a legal settlement of $2.800 $1.67 diluted earnings per share).31 diluted earnings per share).53.08 diluted earnings per share). 2003 – Included in the company’s 2003 earnings are the following items: a charge for a legal verdict in the amount of $35.433.86 $0.75 $0000.0000.1 Operations as of and for the year ended December 31: +8% +13% Net sales $1.700 000.8 1. The total of these items is $21.200 $.0.00 $0.35 3. Goodwill amortization is not required for fiscal years beginning after December 15. the accuracy of which is necessarily subject to risks and uncertainties. 2002 – Included in the company’s 2002 earnings are the following items: a charge related to the termination of the Tyco merger agreement of $4.087.0 million after tax ($0. 2001 2002 2003 Certain prior-year amounts have been reclassified to conform with the current year presentation.2 million after tax ($0.8 million after tax ($0.94 $0.7.6 million after tax ($0. charges related to divisional and manufacturing consolidation projects of $16.87 +12% +16% 2001 2002 2003 *Excluding the items identified below Dividends Per Share As discussed below.433.300 $1.58.20 Diluted earnings per share – excluding the items identified below $0000.61.5 million after tax ($0.90 2001 – Included in the company’s 2001 earnings is approximately $12.0.84 $0000.700 0.99 $0000.000 $0.2 million after tax ($0. .

Ring John H. Timothy M. Weiland Chairman and President and Chief Executive Officer Chief Operating Officer 2 .

you will see why we are confident of our approach – seamless transition period.4 million. up 42% over 2002 concluded. and we hit a new high of 11 percent net sales RECOVERY ® vena cava filter were major contributors.20 (up 9%) as reported • In our specialty access business. Bard businesses brought many new a director of the company. our company has never performed • In our endovascular business.TO OUR SHAREHOLDERS: These are exciting times at Bard. in particular. New products. and our carotid stent trial will begin later this year. we completed our executive management transition true source of our innovation.5% versus 54. Our service to customers a tribute to our employees. Longfield on August 7th. expanding our leadership Looking back over Bard’s excellent financial performance positions in several markets and creating momentum for for the past five years. to our future collaboration as he continues to serve as During this past year. Our self- growth in the fourth quarter of 2003. product codes across our four businesses – balances the At Bard we have a great sense of pride and optimism about risks inherent in a competitive industry and contributes the work we do in helping people lead longer. Bard has delivered consistent momentum throughout 2003. We achieved excellent financial results in market. As you read through the pages of this annual and. – giving clinicians greater flexibility in the use of vena • Gross profit margin – 57. it was business as usual at Bard during this report. customized. $422. Our diversified product from the outstanding commitment of our employees and the portfolio – some 100 product lines covering nearly 10. We want to recognize Bill’s one that is particularly well suited to customers and outstanding leadership during his tenure and look forward differentiates us in the medical technology industry. We are disciplined in our application of this philosophy.S. The RECOVERY filter was the first of its kind in the • Net sales growth – 13% as reported. Entering the market at mid-year. Bard’s consistent financial performance is century-old practice at Bard. At Bard we believe being a market leader – having a number We are pleased to report that our company is performing one or two position – is critical to being successful in any exceedingly well. we gained significant better. • Net income – $168.000 leadership of our management team throughout the company. 2003 and continued to make great progress with our strategic In 2003. collaboration between our sales force and clinicians. flexible and integrated approach to meet their distribute and market medical technologies that make a needs – providing a broad array of clinical and business difference in patients’ lives all over the world. such as our net sales growth of between 7 and 10 percent on a constant CONQUESTTM PTA balloon catheter.5 million (up 9%) as reported Joining the product line in 2004 is our VACORATM vacuum • Net income – $203. healthier and significantly to Bard’s consistency and reliability. we have a lot to be excited about. On all fronts. continued to provide significant growth in Full Year 2003 Financial Highlights: this area. FLUENCYTM stent graft and currency basis. Clinical trials for our AV access stent graft have • R&D expenditures – $87. Our call-point focused structure engenders natural their efforts in achieving this goal. Bard ‘experts’ who understand first-hand the needs of after an eight-year term as Bard’s chairman and chief executive our customers and enable us to respond with innovative officer.8% product lines continued to provide great growth in this business in 2003. This relationship creates following the retirement of William H. We commend solutions. roughly 80% of our net sales came from product growth initiatives. who have successfully converted differentiates us in the industry because we develop a their desire to help people into the ability to manufacture. led by our innovative financial achievements for the year were strong.0 million Our implantable port and. which will compete in the largest items identified in the financial highlights on page 1 segment of the breast biopsy device market. 9% constant currency U. our PICC catheter • Debt to total capital ratio (at year end) – 13.3% in 2002 cava filters. our expanding peripheral stent products. as a result. Our commitment to the patients we One of our key operating imperatives is cultivating and serve motivates us in our work every day and contributes advancing our relationships with customers – nearly a to our success. the In 2003. • EPS – $3. 3 . This success emanates – in no small part – lines in which we are market leaders. For 19 straight quarters.7 million (up 15%) excluding the assisted biopsy device. products and therapies to market. more productive lives. we introduced our new • EPS – $3. LUMINEXXTM stent. Our Board of Directors and senior management team products and solutions targeted specifically to meet these developed and executed a comprehensive succession plan opportunities.87 (up 16%) excluding the items identified HEMOSPLIT ® dialysis access catheter with its proprietary split in the financial highlights on page 1 tip design. future growth: Historically speaking. it has met with • Cash and short-term investments (at year end) – strong demand and made a significant contribution to sales.

Staff Vice President – Manufacturing Frank Maloit. Vice President – Operations . Staff Vice President – Corporate Procurement Scott Mummert. Staff Vice President – Manufacturing Joe Cherry. Staff Vice President – Manufacturing Projects Ted Doorley. Director – Facilities John Moran.Bard’s Worldwide Operations Management Team (from back to front clockwise) Mark Walaska. Director – Operational Excellence Kevin Phoenix.

• In July. Their knowledge and counsel manufacturing facility in Kulim. We were Long-term Growth Initiatives especially pleased to see strong growth in our international As we have seen in 2003. evidenced by an increase in R&D spending over the past • We also continued our solid growth in sales and market two years. production planning and information accuracy in operations: and timeliness – while standardizing. the efficiencies generated from business. Joseph A. growing businesses.ft. we made several small productivity of our efforts and create a steady stream of acquisitions to strengthen this franchise. deployed at the call-point level. we see continued opportunity for While we continue to target at least 12 percent earnings growth growth abroad. these streamlining programs have provided the fuel we need to fund our long-term growth In the next several years. This facility will benefits will also help fuel investments for future growth. Kedah. and their commitment to this company is steadfast. we completed a major expansion of our planning to investment strategy. has provided the leadership. Most important. our Board of Directors has provided expertise and guidance on a variety of issues. Inc. Board and Organizational Changes We anticipate a Q2 2004 opening of this facility. and the assets of Source Tech efforts with strategic acquisitions of technologies. growing segments of our markets. world-class manufacturing performance.• Our soft tissue repair business continued its strong construction of a 170. Foley catheter generated from these improvements in three specific areas: with BACTI-GUARD®*silver coating continues to gain market • Technology Investment through Research and share on its proven record for dramatically reducing urinary Development – Our commitment to R&D investment is tract infections – benefiting both the patient and hospital. this facility is expected to open our VENTRALEXTM and COMPOSIX ® KUGEL® products. of an Enterprise Resource Planning (ERP) system.4 billion enterprise in sales in 2003. We have implemented world-class outstanding clinical benefits to patients diagnosed with R&D processes across our businesses to maximize the prostate cancer. five years. Throughout the year. growing more than 20 percent for the fourth facility in Humaco. which focus and determination to make it happen. They included certain innovative technologies. tissue sales in the U. integrating and • Manufacturing cost improvements were the primary driver simplifying our business processes. the BARDEX ® I. We would like to acknowledge and thank our has the potential to increase our revenue growth rate above manufacturing employees all over the world for their continued the range we have consistently delivered during the last dedication and commitment to operational excellence. Our ventral hernia repair franchise.ft. Cherry. areas and constructed new laboratories. Malaysia. primary contributor to our performance in 2003. with a consistent flow of information across the organization. from succession • In August. During 2003. the ERP system will enhance order illustrates a few of the more notable accomplishments processing. This new approach will of the 3. where are vital. we believe each of these initiatives initiatives. businesses and in Europe.C. we broke ground on a 412.S.S.000 sq. and Imagyn • Business Development – We will complement our R&D Medical Technologies. we are investing the incremental dollars • In our urology business. and we thank him for his outstanding effort. We also initiated 5 . Today.S. our business transactions. which provides $100 million in Q4 2003. The following Among its many benefits. These transactions reflect our strategy to lines or businesses – targeting opportunities in the faster be a consolidator in the brachytherapy business. from $53 million in 2001 to a run rate of nearly share within Bard’s brachytherapy business. we have enhanced and expanded existing production We thank each of them for their valuable contribution. assets of Prostate Services of America. to U. LLC. Joe will enable Bard to conduct business on a common platform has made an indelible mark on redefining Bard’s future. product Medical. while maintaining the agility of a decentralized organization. state-of-the-art The resources saved and efficiencies gained from these distribution center in Covington. Inc. customers. Operations Review • Sales Force Expansion – In 2003.S. we increased our sales Over the past several years we have made significant force by 10 percent in the U.000 sq. manufacturing and and deployment of our sales organizations in the balance distribution have generated considerable savings for the of our U. Sized and designed to support consecutive year. Clearly. for our shareholders. with more than 75 percent of our soft operations provide the funding to support our growth plans. was the in Q4 2005. concentrating on our fastest improvements to our manufacturing structure and processes.2% increase in gross margins as a percent of net allow us to leverage the scale of a $1. Puerto Rico.. company. At the helm of this tremendous effort. allow us the flexibility to process consolidated orders for products from all of our businesses. We are currently evaluating the size Our efforts to refine purchasing. Another significant initiative underway is the implementation vice president of operations.. led by Bard’s strategic growth plans. Georgia.

DeFord. when he began his career exceptional service to Bard. Kelly to group vice president. he began strengthening the company achievements in 2003 are symbolic of the strength and with an impressive list of acquisitions. • In the early years. we want to thank you. our former vice president. to yield improved returns for our shareholders. In 2003. resources. But the financial achievements tell only a part of the story of the Sincerely. and John A. Ted was president and chief executive officer of Barnes Group Inc. We look forward to serving you well in 2004 and beyond. clearly reflected in the company’s performance embodied in this annual report. Martin to our Board. Brian R. revenues have nearly doubled and earnings have more than tripled. his decision to divest the cardiology Finally.. and we will miss her counsel. enhanced our productivity and simply medical affairs. he focused on improving the company’s core Our number one operating goal is to increase our revenue functions and leveraging them across our decentralized structure. we will pursue opportunities in growing markets Looking back on his years at Bard’s helm. growth rate through a very deliberate and thoughtful Thanks to Bill’s tireless efforts. outpacing the S&P 500 over the same period.D. Bill Longfield stepped down from his position clinical affairs. we welcomed Theodore E. Ring John H. yet confident decisions over the years. Chairman and President and we want to express our sincere gratitude to Bill for his enlightened Chief Executive Officer Chief Operating Officer leadership. A TRIBUTE TO WILLIAM H. an investment in Outlook Bard’s stock in 1989 would have increased 305 percent by the time With further increases in product innovation and sales of Bill’s retirement. His success in this regard is and share your high expectations for Bard. the Board elected five new corporate officers: Amy S. Weiland On behalf of Bard employees and shareholders around the world. Timothy M. A long-time advocate for employees and their contribution to the organization. Bill initiated a series of programs aimed at recognizing and rewarding their excellence – including the Charles Russell Bard award. Herzlinger. the patients we serve. our • In the second phase. insight and leadership can be exemplified in three stages: ultimately. Our employees are eager to meet the and proficient in executing the fundamentals. at Bard. today Bard is very disciplined operating strategy. Paul and Brian P. We look forward to the insight and experience Ted will bring to the Board in the coming years. M. and. Lowry to vice president and treasurer. we are grateful for your continued confidence to reward our loyal shareholders. a manufacturer of precision metal parts and distributor of industrial supplies. until his retirement in December 1998. With great fervor. Bill set his sights on growing the business employees. To put this achievement in perspective. in recognition of our commitment to customers. Bard’s superior performance and consistent reliable growth are a tribute to Bill’s bold. Bill’s tremendous to enhance our consistent and reliable performance and. Bill encouraged and rewarded employees who volunteered in national and local programs to help neighbors and strangers alike. vision and courage. our shareholders. Longfield legacy. In 1997. 2003. Bill set out to enhance Bard’s culture. Scott T. 2004 shareholders and ultimately. orchestrated with grace and vision. LONGFIELD This year we bid farewell to one of our long-standing directors. who retired after more than eight years of made Bard a better place. Services organization. we bid farewell to one of our distinguished corporate significant contributions to our organization – actions that have officers. a professor of business administration at Harvard Business School. he created Bard’s Corporate Healthcare diversity of Bard and we are very excited about the future. Adwers. challenges inherent in such an endeavor. Indeed.. From the time of his arrival at Bard 14 years ago. as Bard’s chairman and chief executive officer – a move he science and technology. was truly a guiding light for our company. regulatory and On August 7. Regina E. Regina. Ph. Since 1989. 6 .. his steadfast commitment to our March 1.D. for your business put Bard on a path toward solid and steady growth. Barry to vice president. Shortly after assuming the role of president in 1991. loyalty and support. We wish Jim well in his retirement. Bill made a series of difficult decisions and In 2003. improved our performance. James R. On behalf of our management team and • In his final phase. Since our last annual report to shareholders. who retired from the Board after 13 years of distinguished service. to vice president.

S. Today.Our approach to the market provides a comprehensive. hospitals face unprecedented challenges including an aging population who require greater care. In the pages that follow. we establish a collaborative relationship – a working partnership – with our customers. integrated strategy that responds to many of the issues facing hospitals today. Bard is more than a supplier of products. we stay close to the clinicians who use our products every day. hospital service costs and administrative expenses are increasing sharply and this trend promises to continue.AN INTEGRATED APPROACH TO CUSTOMERS’ NEEDS Healthcare market dynamics play a significant role in the way our customers do business. customers to address economic and business issues. We believe this approach – combining clinical solutions with product innovation and integrated business programs – provides significant value to our customers by addressing many of their specific needs. declining reimbursement rates and a demand for more technology-intensive treatments. we highlight a few examples of our flexible approach to help customers meet the demands of today’s global healthcare market. CLINICAL SOLUTIONS PRODUCT INNOVATION INTEGRATED BUSINESS PROGRAMS 7 . As a result. Bard recognizes these substantive challenges. Through our seven autonomous operating units and our sales and marketing organizations around the world. which provides a broad business perspective across all of our product lines and works with U. As a result. Complementing this structure is our Corporate Healthcare Services organization.

V. . MNA (right). Ohio. Senior Product Manager – PICC and Midline Catheters. Nurse Specialist Brenda McKay (left). of Christ Hospital in Cincinnati. and Territory Sales Manager Rick Naylor (center). Manager Clinical Education.I. discusses PICC catheter placement at a patient’s bedside with Bard Access Systems employees Paul Blackburn. RN.

training for more than 3.” receive an intravenous catheter in their hand or forearm. The radiology lab is able to focus unfavorable patient outcomes. catheter lasts on more technical procedures. program considers the patient’s diagnosis. While an I. ADVANTAGE program. insertion of a vascular access device to deliver medication This program allows nurses to master a technically challenging or nutrition during their hospital stay. access devices wasn’t always enough to ensure good clinical The savings per PICC placement were considerable: $800 outcomes for patients. Hospital Bard’s ASSESSMENT ADVANTAGE program offers I. Bard needed to develop a way to help per line. More than 90 percent of patients admitted to a hospital require and medical condition and recommends treatment algorithms.000.V. The McKay says. One such solution is the ASSESSMENT ADVANTAGESM program A better outcome is achieved through Bard’s ASSESSMENT available through Bard Access Systems. and determine.000 clinicians per year under central and midline catheters. difference in our hospital.” better solutions. Currently. approach eliminates the need for multiple needlesticks and “The ASSESSMENT ADVANTAGE program has made a tremendous provides increased comfort and convenience.V. “It works. Since they placed more than 1. like a PICC catheter. Utah. and physicians no longer need 48 to 72 hours. a PICC lasts from 10 to 73 days.AN INTEGRATED APPROACH TO CUSTOMERS’ NEEDS A Clinical Approach: The ASSESSMENT ADVANTAGESM Program Bard’s commitment to customers extends beyond providing needlesticks. and peripherally inserted this program. wouldn’t be where we are today without the ASSESSMENT When patients are admitted to a hospital. Patients who require longer-term venous an extensive array of products. Sometimes. reduce costs and standardize inventory. “Our nursing effective and reduces the nurses’ workload.” to be called for difficult I. hospital staff break out of their traditional care patterns the hospital saved more than $800. access.V. Brenda realized that providing a broad offering of innovative vascular and her colleagues at Christ Hospital conducted a cost analysis. they frequently ADVANTAGE program. Nurse Specialist. staff is happier because they get reliable vascular access for From her experience. nurse administration is thrilled with the significant cost savings specialists the training and resources they need to choose of having nurses place PICC catheters at the bedside. For the patient. Ohio. We help customers address access – even beyond their hospital stay – often have a PICC their daily challenges and improve patient outcomes (or another catheter designed for long-term access to the with comprehensive clinical.V.V. The catheter often needs to be replaced due to blockages or vascular irritation from antibiotics. catheter placements. drug therapy. discharged. and patients are happier because they get only one venipunctures are not cost effective and can result in needlestick – not several. a subsidiary of Bard. Brenda acknowledges. the most appropriate type of Christ Hospital is just one of many customers who believe vascular access device that could be used for the duration in Bard’s commitment to enhancing clinical care. in which patients are evaluated at located in Salt Lake City. Bard Access Systems catheter at the bedside versus the radiology suite. attests. Brenda McKay. when appropriate. “We of the patient’s care. “Multiple patients. educational and operational central venous system) placed when they are ready to be programs. resulting in multiple 9 . this outcomes. For the hospital. Bard Access Systems procedure – inserting a PICC catheter at bedside – increasing is the market leader in vascular access devices and offers their skills and value to the institution. this isn’t the best approach. at admission. the insertion of a PICC catheter upon admission is cost of Christ Hospital in Cincinnati. central catheters (PICCs).000 lines last year. Those who do are identified initial phase of care – enabling them to achieve better patient as candidates for a PICC catheter. Bard provides an extensive array of products including implantable ports. To evaluate cost savings associated with placing a PICC Working closely with customers. This program helps customers admission – where clinicians determine whether the patient incorporate longer term vascular access solutions into the will need extended I.” Brenda says.” I.

a surgeon at Sentara Leigh Hospital in Norfolk. provides insight on the unique design features of the VENTRALEXTM hernia repair patch to Dr. Virginia. Stephen Wohlgemuth. .Davol Territory Sales Manager Kyle Stephenson (left).

knows the market intimately. the product is the procedure. and surgeons were looking for a new with surgical mesh prosthetic devices than do hernias device to simplify and perfect the procedure – while positively repaired surgically with sutures alone (about 11 percent).000 people suffer with umbilical hernias have a lower recurrence rate (about 1 percent) when repaired every year in the U. we believe one of the best outcomes of a collaborative. This. and in Cranston. collaborating with surgeons throughout designed in conjunction with new procedures – one where the process. “Because the VENTRALEX patch is inserted with In 2000. As the staff demonstrated one prototype in particular. a team of Davol employees gathered a group of minimal manipulation in the abdominal area and held in general surgeons to review prototypes of new hernia repair place with intra-abdominal pressure and just a few sutures.AN INTEGRATED APPROACH TO CUSTOMERS’ NEEDS An Innovative Approach: VENTRALEXTM Hernia Patch For decades. Dr. Wohlgemuth explains. which encourages tissue ingrowth to secure we added “innovation” as a fourth core value. assist the surgeon in Through their collaborative customer relationships and positioning the mesh patch accurately in the body.. the company moved swiftly with innovative R&D process is the development of new products product development. or expanded customers’ changing needs and increases our ability polytetrafluoroethylene. satisfaction with the VENTRALEX device has transcended his Virginia. Dr. Wohlgemuth We believe one of the primary reasons Bard is the market had been seeking. they discovered an unmet need. Wohlgemuth began using the VENTRALEX patch immediately a hernia patch specifically designed to repair umbilical and has adopted the product for all of his adult umbilical defects – or hernias of the navel area. barrier that minimizes adhesions to respond with unique technology solutions. The discomfort are significantly reduced. mesh material. With this valuable input. hernia repairs. while minimizing the potential for unwanted adhesions of the bowel to the patch. leader in the hernia repair business is that our creative The patch also has an innovative design that allows it to team at Davol. “This is the real deal. to the prosthesis – exactly the feature Dr. The VENTRALEX patch is just Davol introduced the VENTRALEXTM hernia patch to the market. At Bard. The other our emphasis on innovation enables us to anticipate side of the patch has a smooth ePTFE. Bard has embraced three core operating On one side of the small. the device’s unique strap attachment. Wohlgemuth’s System and a partner at Norfolk Surgical Group in Norfolk.” This helps shorten surgeons immediately noted this specific concept was exactly recovery time and allows patients to return to their normal the solution they sought for the repair of umbilical hernias. our surgical specialties subsidiary located pop open and lie flat in the intra-abdominal space. “patients’ post-operative pain and they could sense the growing excitement in the room. in addition. Within nine months of the product’s initial concept. usually within a day or two. recalls he had been searching for a mesh hernia daily practice. daily routine. ingrowth. Increasing the patch in place and help close off the hernia. Rhode Island. 11 . market research efforts. he now works with Bard to train repair patch with a material that would encourage tissue other surgeons in the use of new hernia repair technology. round patch is a layer of polypropylene values: quality. affecting patient outcomes. MD.” devices.” he remembers thinking. Stephen Wohlgemuth. He was delighted when he had the opportunity to work with the VENTRALEX patch for the first time.S. integrity and service. Several years ago. Umbilical hernias An estimated 150. such a product – defining a specific technique. a surgeon at Sentara Hospital making its use intuitive to surgeons. Dr. and thus.

Senior Manager. Klaus Amendt (second from left). Amendt are Angiomed team members (left to right). Research and Development. . Senior Product Manager. Germany. Research and Development. Sylvie Lombardi. Germany. an internist and senior physician of the Angiology. Jürgen Dorn. a hospital in Mannheim. Vascular Stents. Cardiology and Acute Geriatrics Department at Diakoniekrankenhaus Mannheim. and Gerold Ehmen. demonstrates the deployment of the LUMINEXX™ vascular stent at Bard’s Angiomed facilities in Karlsruhe. Conferring with Dr.Dr. Project Manager.

self-expanding stent them for surgery. allowing me to deploy product enhancements or developing new technologies it more accurately. tubular-shaped a preferred choice in many clinical applications. “Revascularization from Bard. “Because of its markers. which he believes limit growth of tissue around the device and improve the longevity of the stent once it is implanted. with a simple outpatient procedure. we believe getting innovative products to market allows the stent to expand to a pre-set size and shape when first doesn’t necessarily guarantee success.. which Dr.A.AN INTEGRATED APPROACH TO CUSTOMERS’ NEEDS An Innovative Approach: LUMINEXXTM Vascular Stent* As a global company focused on innovation. on the 6F BARD S. Klaus Amendt. Diakoniekrankenhaus Mannheim. it works in the United States. Patients who were unsuccessfully treated with is evident in the design of the stent and the delivery system balloon angioplasty or those with large occlusions had even used to deploy it. In the past.” he explains. a hospital in Mannheim. “The LUMINEXXTM vascular stent is a product that of blocked arteries can improve patients’ quality of life by addresses not only the limitations of balloon angioplasty. Ultimately. Amendt observes. Germany. limiting pain and increasing their ability to function.F. is all too familiar with the previous limitations Dr. The device is made I can open their vessels and keep them open longer.” Dr. of these properties makes this nitinol self-expanding stent Prior to the availability of vascular stents – tiny. Amendt says. an internist and senior physician of the offers the only “tipless” design in the market – a feature Angiology. The LUMINEXX vascular stent is mounted fewer treatment choices. denotes Secure Adhesive Free.” of nitinol. patients with peripheral arterial disease had limited clinical a Bard business located in Karlsruhe. Bard’s 400 “And unlike certain other stents. known for its visibility and radial force. a unique material with thermal memory that At Bard.. the LUMINEXX stent doesn’t employee-strong R&D organization can respond by initiating shorten significantly during placement. Bard has introduced its fourth generation of self-expanding nitinol stents in five years. Now.TM**delivery system catheter. it offers advantages over current stent technology.E.and one that we embrace. Amendt.” comments Dr. Its innovation options. Germany. the LUMINEXX vascular stent is good for patients. “Peripheral arterial disease affects in treating the disease and the value of the new stents quality and length of life. The combination targeted specifically to meet market needs.” I couldn’t do anything for those patients with large blockages Dr. devices used to maintain the opening of veins and arteries – The LUMINEXX vascular stent was developed by Angiomed. Cardiology and Acute Geriatrics Department at that helps increase stent placement accuracy.F. 13 .E. With the recent market to market with a product that meets our customers’ needs launch of the LUMINEXX stent with the PERFORMAXX GRIPTM is a winning strategy. Amendt cites some of the advantages he sees with the LUMINEXX vascular stent. Dr. or for whom balloon angioplasty didn’t work – except send The LUMINEXX stent is an innovative. exceptionally well in arteries where visibility is crucial to **S. accurate stent deployment.A. Amendt explains. stent deployment system. He also values the LUMINEXX vascular stent design and configuration. Being first exposed to body temperatures. One of the device’s most distinguishing features is its four proprietary PUZZLETM radiopaque markers *The LUMINEXX vascular stent is not currently available at both ends of the stent.

Inova Health System. . CHE (right). Assistant Vice President for Materials Management.Bard Regional Vice President Harriet Overbeck. provides on-site consulting to Gary Wagner.

most prestigious hospitals. authority to make a difference. established the Corporate Healthcare Services organization To make this work. who meets with his RVP. we believe being a good partner. The savings that I have realized the largest. on a regular looking at ways to refine and improve the device from basis. I wanted to give Bard the chance to address this opportunity. Bard plan to utilize their e-commerce solution for Bard purchases.” The foundation of representing a consolidated Bard.taking into and standardize our electronic product files across all the consideration their structure and the way they operate. and provide programs and services customized to of our other suppliers. says he values this approach for many reasons. This approach helps to guarantee that Bard changes to improve a product. According to Gary. with physicians and other healthcare professionals within “We had a scenario where some physicians suggested their call points.” Gary says. “It is their willingness to jump Corporate Healthcare Services includes a staff of senior in where and when I need them. In my experience. she can get have to say and do what they can to help us accomplish things done.AN INTEGRATED APPROACH TO CUSTOMERS’ NEEDS Providing Business Solutions: Corporate Healthcare Services In addition to meeting our customers’ clinical needs Gary felt electronic order processing might be an approach with innovative technology and programs.” Bard RVP. as well as a supplier.” Gary explains. Harriet Overbeck.” At Bard.S. “Bard has demonstrated through actions. the RVPs have the respect and – have demonstrated their commitment to my organization. In short. Assistant Vice President for Materials Management After speaking with Harriet. Along with demonstrates the value of this approach.” and believed that the best opportunity to achieve this goal was Gary explains.. “It’s this key administrative and financial personnel who are responsible type of service and true integration with my institution that for an institution’s overall relationship with Bard. It is a true business partnership. not just words. some of these physicians at Inova. the physician’s perspective. they supported our efforts to clean up to improve our alignment with customers. even when I value our relationship and recognize Bard as a business other companies have corporate positions similar to the partner.” he explains. the RVPs work side-by-side trust he has established with Harriet and Bard has facilitated with the professional sales representatives from each of our a relationship where each can communicate issues openly seven operating units – supporting their specific clinical focus and freely.. “Instead of products. approach enhances our ability to also address their “With the help of Bard’s people. to move to a more paperless transaction environment. Together. make commitments on behalf “This is the type of service that sets Bard apart from many of Bard.” According to Gary. they are Gary.. programs and initiatives are addressing our just looking at other suppliers who made similar products. Nearly a decade ago. “Harriet can institute change. customers’ needs at all levels. “Bard makes our goals. integrated delivery from this initiative alone have contributed significantly to systems and group purchasing organizations in the U.is good business. Faced with the challenge of multiple procurement applications and processes in use across the facilities within his system. facilities. Virginia.” These corporate Regional Vice Presidents (RVPs) focus on “This assistance was invaluable to us.” Gary Wagner. Bard’s unique that would help streamline these processes and reduce costs. Gary had a specific objective to reduce his supply chain budget their interest in identifying and meeting customer needs. we were able to lay out a economic and business issues. 15 .” he explains. “They listen to what we meet the needs of my organization. me meeting my supply chain budget. in order to make doing sales executives who work with top-level administration at business with Bard easier. she assembled a team of Bard for Inova Health System in Falls Church. has a great engineers and manufacturing representatives to meet with deal of firsthand experience with Bard’s customer approach. the individuals often don’t have the same breadth of authority to represent their company. “My RVP – and the entire Bard team that stands behind her Within the Bard structure..” things happen much more quickly than many other suppliers.

2 390.3 +11% +11% +12% +12% +19% Performance Irrigation Soft Tissue 30% 27% Orthopaedic and Hysteroscopic Devices Performance Irrigation – – 2003 Total Laparoscopic Devices and Accessories Net Sales Hemostasis -7% -7% Hemostasis Topical Blood Clotting Products Total Surgical 19% 17% Surgical 19% 1998 1999 2000 2001 2002 2003 Five Year Compound Growth Rate: 12.2 250.5 +4% +2% +8% +8% +8% Urine Collection Devices Basic Drainage 7% 5% Ureteral Catheters and Stents Urology Continence 8% 5% 32% Continence Injectable Bulking Agents Urological Specialties 8% 5% Surgical Continence Products Total Urology 8% 5% (slings and sling materials) Pelvic Floor Repair Products 2003 Total Continence Management Devices Net Sales Urological Specialties Brachytherapy Services.0% *Under Development Urology Key Products 2003 Net Sales Growth Net Sales Basic Drainage Full Year 2003 (in millions of dollars) Urinary Catheters and Trays Constant Infection Control Foley Catheters Urology Reported Currency 339.4 164.5 272.0 336.3 +8% +7% +4% +4% +18% Atrial Fibrillation Ablation* Electrophysiology 9% 1% Temporary Pacing Electrodes 2003 Total Computerized EP Lab Systems Endovascular 32% 23% Net Sales Endovascular (Interventional Radiology) Grafts 7% 1% Biopsy Products Total Vascular 18% 11% Peripheral Angioplasty Catheters Vascular Vena Cava Filters 21% Peripheral Vascular Stents Stent Grafts Grafts Dialysis Access Grafts Peripheral Vascular Grafts 1998 1999 2000 2001 2002 2003 Abdominal Thoracic Grafts Five Year Compound Growth Rate: 8.9 259.7 307.0 253.5 182.6 205.6% Surgical Specialties Key Products 2003 Net Sales Growth Net Sales Soft Tissue Reconstruction Full Year 2003 (in millions of dollars) Inguinal Hernia Repair Products Constant Ventral Hernia Repair Products Surgical Specialties Reported Currency 148. Seeds and Accessories Specialty Foley Catheters 1998 1999 2000 2001 2002 2003 Stone Management Devices Five Year Compound Growth Rate: 5.9% .8% Oncology Key Products 2003 Net Sales Growth Net Sales Specialty Access Full Year 2003 (in millions of dollars) Implantable Ports Constant Chronic Catheters Oncology Reported Currency 213.2 241.PRODUCT GROUP REVIEW Vascular Key Products 2003 Net Sales Growth Net Sales Electrophysiology (EP) Full Year 2003 (in millions of dollars) Diagnostic Electrode Catheters Constant Therapeutic Electrode Catheters Vascular Reported Currency 209.2 229.1 419.8 353.7 451.3 +12% +6% +9% +9% +12% PICCs and Midlines Specialty Access 20% 17% Dialysis Access Catheters Ultrasound Scanners Gastrointestinal -4% -6% Oncology Gastrointestinal Total Oncology 12% 10% 2003 Total 23% Feeding Devices Net Sales Interventional Stents Endoscopic Instruments Biliary Devices Bronchoscopy Devices 1998 1999 2000 2001 2002 2003 Five Year Compound Growth Rate: 9.1 238.0 226.0 274.6 299.6 361.

NJ Corporate Healthcare Services Director. Mexico Bard Sdn. RI 17 . Cranston. GA Director of Distribution Bard Corporate and Logistics Abtihal Raji-Kubba Murray Hill. Sherry Ana Ma Gonzalez Rhonda R. Warburton Plant Manager Noorizan Binti Din (not pictured) Bard Reynosa Production Manager Reynosa. Kedah. GA Bard Access Systems Salt Lake City. Tessier Senior Product Development Engineer Davol Inc. These outstanding employees were nominated by their colleagues for their exemplary performance and commitment to Bard’s principles of Quality.CHARLES RUSSELL BARD AWARD RECIPIENTS We are pleased to present to our shareholders the 2003 winners of the Charles Russell Bard Award. UT John G. Bhd. From left to right seated: From left to right standing: Carey L. These individuals have also demonstrated the highest of personal values through a dedication to community and family. Largo Controller Sales and Marketing Manager Senior Human Resources Bard Urological Bard de Espana Representative – Covington. Integrity. Camfield Bard Medical Bill Williams III Executive Secretary Covington. GA Barcelona. Product Development Covington. Service and Innovation. Spain Training & Development Patricia M. Malaysia Philip A. Kulim.

Inc. President and Chief Executive Officer Corporation. White has since 1989. Inc. Ring Marc C. from 1996 to to January 2004. is a recipient of the prestigious Horatio Alger award and serves as a director of the Horatio Alger Association. Martin Chairman. Henkel William H.. Officer since 1995. having of Applera Corporation (formerly known as PE been Chairman and Chief Executive Officer of Corporation) (life science systems and products) AmeriChoice Corporation and its predecessor companies since September 1995. age 57. Herbert L. Longfield Theodore E. Group Vice President from Systems) (document imaging solutions) since been a director since 1975 and having been Chairman. Inc.BOARD OF DIRECTORS Timothy M. Anthony Welters Tony L. Health Corporation. Welters Ingersoll-Rand Company and AT&T Corporation. Mr. Committee. (formerly Pitney Bowes Office connectors and components) since January 2004.White President and Chief Executive Officer of AmeriChoice Chairman. and Corporate Vice December 2001. Services. Dunnigan has been Committee. He is also a director of member of the Compensation Committee. having been President Mr. Illuminating Company and The Brink’s Company. Executive Committee. from 1998 to 1999. He is also a director of The United He is also a director of Deere & Company. member of the Executive Committee. He is also a director of Pitney Bowes Inc. age 46. Applera Corporation and Horizon Applera Corporation. and Imagistics International Inc. President and Chief Operating Officer of Officer from September 1991 to June 1994. Mr. Mr. December 1993 to April 1997. President and Chief Executive Officer December 1998. age 65. Mr. Breslawsky T. a UnitedHealth Group Company. Governance Committee Compensation Committee. age 49. having been Group President from International Inc. December 1993. Mr. and serves as Vice Chairman of the Board of Trustees for the Morehouse School of Medicine in Atlanta. Governance Committee and Compensation Committee. having been Group Vice President and President and Chief Operating Officer from April to since June 1994 and President and Chief Operating from 1990 to 1995 and President and Chief Executive October 1999. age 64. Martin has been a Textron. Inc. age 55. President and Chief Executive Officer of Retired Chairman. Vice Chairman from 1994 to 1996 and President Chief Executive Officer from 1985 to 1997 and President since August 2003 and is a member of the Executive of Pitney Bowes Office Systems from 1990 to 1994. Inc. having been Barnes Group Inc. Finance Committee and Regulatory Mr. Mr. from 1980 to 1994. having been President and Chief President and Chief Executive Officer from October 2000 President – Human Resources from June 1992 to Operating Officer of Pitney Bowes Inc. President and Chief Executive Officer Retired President and Chief Executive Officer of Ingersoll-Rand Company (manufacturer of industrial of the Company since August 2003. Finance Committee. Ring has been a director 2001. Kevin Dunnigan Chairman and Chief Executive Officer of the Company Chairman and Chief Executive Officer of Imagistics Chairman of Thomas & Betts Corporation (electrical since August 2003. Audit Committee. President and Chief Executive Officer since parts and distributor of industrial supplies) since President and Chief Executive Officer since October 1999 September 1995. He is also a director of and Regulatory Compliance Committee. Audit Committee. age 61. Welters has been a director been a director since 1996 and is a member of the since 1999 and is a member of the Executive Committee. and Finance Committee. (manufacturer of precision metal products and components) since May 2000. Longfield has been a director since 1990 and is a director since October 2003 and is a member of the of Textron Industrial Products from 1995 to 1998. Governance a director of Manor Care. having April 1997 to August 2003. Henkel has been a director since 2002 and is a and Regulatory Compliance Committee. age 66. 18 . having been Chairman. He is also Compliance Committee. West Pharmaceutical Ingersoll-Rand Company. PRO MACH. He is also a director of West Pharmaceutical Services. Chairman from 1992 to May 2000. Breslawsky has been a director since 1996 a director since 1994 and is a member of the Executive and is a member of the Audit Committee and Finance Committee. Mr.. Unisys Corporation and Committee and Regulatory Compliance Committee.

P. S. Georgia President. F. LaFever J. J. W. W. D. Murray Hill. Kelly International: Japan General Manager (acting) Group Vice President J. Wedlock Chief Financial Officer Bard Endoscopic Technologies Managing Director B.CORPORATE OFFICERS ORGANIZATION Timothy M. Georgia F. Cherry Area Vice President Vice President – Corporate Healthcare Services Operations J. Gurnari. Shick Bard Nordic Scott T. E. Collins Vice President and General Manager President Todd C. Jr. Ring Bard Access Systems International: Asia. VA S. P. J. New Jersey General Manager Vice President – Science and Technology Davol Bard France B. DeFord. M. Massachusetts Senior Vice President and M. Massachusetts President Amy S. Barry J. Karagiannoglou Charles P. Ganser President General Manager Vice President – Cranston. P. Atkinson Vice President – General Manager Human Resources Investor Relations E. Kelly F. Last James L. L. Natale President President Senior Vice President and Covington. Kelly Brian P. Corporate Healthcare Services Benelux/Nordic/South Africa Bard Peripheral Vascular J. Weiland Bard Canada President and Bard Electrophysiology P. Jorba Vice President – Government and Public Relations General Manager Information Technology H. B. Ph. Napolitano Joseph A. Glass Vice President Bard Limited Bronwen K. McDermott Area Vice President Vice President – President Regulatory and Clinical Affairs Tempe. C. Schermerhorn Bard Australia Lowell. Americas. Rhode Island Regulatory Sciences Bard Hellas S. Grent Brian R. Paul Bard Medical Group Vice President Bard Europe D. Spicer John A. Mellen Vice President – Strategic Planning and Business Development Jean F. Altenhoff Nadia J. R. NJ General Manager Treasurer Robert L.D. J. M. Lowry Vice President K. Australia Chairman and J. Arizona Central Europe H. Persson Vice President and Murray Hill. Utah John H. Miller Assistant Secretary 19 . Grom General Manager Vice President and Controller Bard Iberia Vincent J. J. Beasley J. R. Kelleher Chief Executive Officer President President Salt Lake City. Kelly Gainesville. Bernstein Bard Urological Area Vice President Vice President. G. P. Deleplanque Christopher D. Bohan Billerica. Curry Chief Operating Officer T. Mirsky General Counsel and Secretary President Italy/Iberia/Middle East Export Covington. Natale Angiomed President J.

Bacti-Guard is a registered trademark of Adhesive Technology (International) Licensing. Fluency.m. Bard. All investor relations inquiries or requests for additional Direct Deposit of Dividends or past copies of the company’s Annual Report on Form 10-K Shareholders receiving a dividend check may have payments or Quarterly Reports on Form 10-Q filed with the Securities deposited directly into their checking or savings account at any and Exchange Commission should be addressed to: financial institution participating in the ACH network. Luminexx. April 21. Their address and Financial information is also available at www. 2004 Record Date Payment Date P. New Jersey 07974 for direct deposit of dividends.equiserve. simply contact EquiServe. Assessment Advantage is a registered service mark of C. N.R. Through Eric J.R. New Jersey 07078-2778 and other share transfer matters to the above address. Rhode Island 02940-3081 Third July 26 August 6 e-mail: equiserve@equiserve. Inc. All Rights Reserved. Kugel and Recovery are registered trademarks of C. 2004 and economical way for shareholders to initiate and increase their Dolce Hamilton Park investment in Bard through the purchase of shares with voluntary 175 Park Avenue cash payments and all or part of their dividends. Bard.O. Inc. 730 Central Avenue For details or enrollment in the DirectSERVICE Program or Murray Hill. Hemosplit. Bard.CORPORATE DATA Corporate Offices Registrar and Transfer Agent 730 Central Avenue EquiServe Trust Company.crbard. Wednesday.V. Bard. Inc.com Providence. Bard S.R. to shareholders for this service.crbard. Copyright © 2004 C.E.com Fourth October 25 November 5 Existing shareholders: (800) 446-2617 2005 First January 24 February 4 Non-shareholders inquiring about the program: (800) 828-1639 Be sure to include a reference to C. lost certificates Short Hills. Inc. Stock Listed DirectSERVICE Program for Shareholders New York Stock Exchange Registered shareholders and non-shareholders may purchase Symbol: BCR Bard common stock at any time with a low fee structure compared with normal brokerage fees.A. 20 This report is printed on recycled paper . Shick an Electronic Funds Transfer. Rhode Island 02940-3069 (800) 446-2617 Auditors Web site: www. Box 43081 Second May 3 May 14 Providence. or an affiliate. Kennedy Parkway Please direct inquiries regarding change of address. Cash payments Florham Park. Bardex. New Jersey 07932 may be made by mail or through automatic monthly deductions Shareholder Information from your bank account. PerforMAXX Grip. Bard.O. New Jersey 07974 Stockholder Relations (908) 277-8000 P. Bard. Composix.R. There is no charge C. Conquest. B. (908) 277-8413 who administers these programs for Bard.com KPMG LLP 150 John F. *Bacti-Guard® silver alloy coating is licensed from Adhesive Technology (International) Licensing.R. Bard. Bard. Vacora and Ventralex are trademarks of C.A.A.V. Dividends may be reinvested in Bard Annual Meeting stock at no cost to the shareholder.F. or an affiliate. c/o EquiServe Trust Company. Inc. The program is a convenient 10:00 a. Inc. Inc. DirectSERVICE Program Proposed Next Four Dividend Dates for Shareholders of C. your dividend can be deposited Vice President – Investor Relations electronically on the dividend payment date.. Murray Hill. N. B.R. Box 43069 Web site: www. or an affiliate.com convenient “800” numbers are shown below.R..

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New Jersey 07974 . R. 730 Central Avenue Murray Hill.C. Inc. Bard.