Q2 2002 to Q1 2003 Comparison($ U.S. Millions)

Non-GAAP (1)

Operating profitability is improving as we continue to implement our profit enhancement program

Changes related to

European

Est. Wage

Q2 2002

FX Impact

Increases

All Other

Q1 2003

Sales

$ 5,353

$ 250

-

$ (129)

$ 5,474

Gross Margin(1)

293

14

-

(10)

297

% of Sales(1)

5.48%

5.42%

Operating Expense(1)

262

13

6

(31)

250

% of Sales(1)

4.89%

4.56%

Operating Profit(1)

31

1

(6)

21

47

% of Sales(1)

0.58%

0.86%

(1) Excludes reorganization costs, major cost reduction program expenses and special items. Please refer to supporting bridge slides for reconciliation of GAAP to Non-GAAP financial measures.

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