Medical Devices sales of $1.7 billion in the first quarter were 18% above the $1.4 billion in the comparable quarter of last year. Operational growth was 11%, reflecting new products and increased volume. Operationally, sales in Endomechanical advanced, as both laparoscopic instruments and stapling products registered good growth. The Energy double-digit quarterly sales gain was again due to a sharp increase in sales of vessel sealing products, partially offset by a continued slowdown in capital-related hardware products. In Soft Tissue Repair, sales of mesh and biosurgery products again rose rapidly, but growth in the product line was restrained by flat sales of sutures. In the Oximetry and Monitoring product line, sales gains were aided by the Aspect acquisition, as well as by higher sales of sensors. In Airway and Ventilation, the double-digit quarterly sales increase primarily reflected exceptional growth for ventilators, largely due to orders related to the H1N1 pandemic outside the United States. The increase was partially offset by lower sales of sleep products following the divestiture of the diagnostics product line. Vascular sales climbed at a strong double-digit pace, due to the addition of VNUS and Bacchus products, both of which surpassed our expectations, coupled with good growth in sales of compression products.

Pharmaceuticals sales of $616 million in the first quarter were 12% below the prior year ™s $697 million, including favorable foreign exchange of about 2 percentage points to the 2010 quarterly results and Oxy ER contributing $96 million in sales to the year-ago quarter. Excluding both these factors, first-quarter sales were essentially unchanged. Sales in the quarter benefited from a double-digit increase in radiopharmaceuticals, aided by a supply situation that improved from the year before. Operationally, sales of contrast products were below those of a year ago. Sales of Active Pharmaceutical Ingredients and Specialty Chemicals both declined, due to lower volumes and weakness in microelectronic chemicals, respectively. Excluding Oxy ER, sales of Specialty Pharmaceuticals were even with those of the prior year, as higher sales of generic products were offset by lower branded sales.

Medical Supplies first-quarter sales of $443 million were 2% above the $435 million reported in the comparable quarter of the previous year. The increase was primarily due to favorable foreign exchange, which drove higher reported sales of Nursing Care and Medical Surgical products.

In the first quarter of fiscal 2010, Covidien purchased approximately 500,000 ordinary shares under its previously announced share buyback program.