Cover Page To Our Shareholders Issues and Answers: Contributions That Count Enterprise Profile Financials Summary Financial Review Report of Management Report of Ernst & Young LLP, Independent Auditors Financial Statements Notes to Consolidated Financial Statements Corporate Information Board of Directors and Officers

THE ISSUE “ Worldwide, there are as many as 150 million people with diabetes, making it one of the most prevalent chronic diseases in the world. Moreover, that total could double by 2020 as diets ‘improve’ around the world and people become more sedentary.” - Dr. Roger S. Mazze, Chief Academic Officer, International Diabetes Center, and Professor, University of Minnesota Medical School OUR EXPERTISE BD has long been a leader in diabetes care–from pioneering needle technology for the comfort of insulin-injecting patients to training and education for patients and care-givers. As a result, the Company and its constituents share a strong bond. BD is highly regarded for understanding and caring about customers and for making innovative, high quality and dependable products. BD broadens range of diabetes care products with introduction of blood glucose monitors In order to avoid complications, the American Diabetes Association recommends that people with diabetes keep their blood glucose values within a range of 80 to 120 mg/dl. Maintaining that level requires a significant commitment; as a result, many patients’ blood glucose levels fall outside those parameters. In a major step forward in diabetes management, the BD Latitude Diabetes Management System has been introduced in Canada, with its U.S. launch set for early 2003. The only product of its type, the BD Latitude system makes monitoring and treatment more convenient by organizing everything the patient needs to test and inject, including the blood glucose monitor, lancets, test strips and needles.     Using a BD Ultra-Fine 33-gauge lancet–the thinnest lancet ever–patients take a tiny .3 microliter blood sample from their finger and apply it to a test strip. Results are delivered in five seconds on a large, easy-to-read display. An important breakthrough is a downloadable memory capability that allows patients and healthcare providers to track insulin data and blood glucose values. The tiny sample size and fast read time are also featured in a companion product, the BD Logic blood glucose monitor.     In addition to these significant new products, BD over the past year expanded its line of insulin pen needles with the introduction of a 5-millimeter needle, the shortest in the world. BD also introduced an insulin syringe with a halfunit scale for more precise dosing, a benefit for children and people using small amounts of insulin. OUR CONTRIBUTION With recent product introductions, BD has entered the blood glucose monitoring (BGM) segment of the market–a strategically significant move that broadens its strong insulin delivery franchise to a more fully integrated diabetes portfolio. Competitively, BD’s BGM products offer several key advantages, including the thinnest lancet, fast testing time and complete data management system, while requiring a very small blood sample.