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Tuesday, September 12, 2006

Dear Mr Dolan: You're Fired!

The Board of Directors of Bristol-Myers Squibb Company (BMY) announced today that Peter R. Dolan will leave the position of chief executive officer, effective immediately. The Board has appointed James M. Cornelius, a director of the company since January 2005 and chairman emeritus of Guidant Corporation, to act as interim chief executive officer.

They also shot the general counsel.

The Board also announced that Richard K. Willard will leave the position of senior vice president and general counsel, effective immediately. Sandra Leung, vice president and corporate secretary, was appointed to act as interim general counsel. Former Federal Judge Louis J. Freeh, a director of the company and former general counsel of MBNA America, will serve as advisor to Ms. Leung. Mr. Willard has agreed to assist in the transition.

They may come out later and say it was a peaceful or agreed to situation, but both Dolan and the general counsel needed an axe more than an executioner late on his rent payments. It looks like the board feared serious reprisals if they didn't go along with that independent recommendation yesterday. The company could have appointed the Easter Bunny as the new interim-CEO amnd the street would have been happier than they were with Dolan, so it looks like the company did the right thing.

BMY shares have responded with a $1.00 jump and are up over 4% at $24.41.

Jon C. Ogg
September 12, 2006

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