Alcon obtained approval for listing on SIX Swiss Exchange and New York Stock Exchange
Alcon will seek effectiveness of Form 20-F registration statement from the US Securities and Exchange Commission
Alcon will enter key Swiss SMI® and SPI® indices on first trading day
Alcon's credit rating confirmed as investment grade (Baa2 by Moody's Investor Service and BBB by S&P Global Ratings) in line with medtech peer group
Alcon has secured debt financing of USD 3.5 billion
Basel, March 22, 2019 - Novartis today confirmed that certain important conditions precedent for the 100% spin-off of the Alcon eye care business have been met, including receipt of certain necessary authorizations and rulings. Completion of the transaction, by way of a distribution of a dividend in kind to Novartis shareholders and ADR (American Depositary Receipt) holders, is expected to be on April 9, 2019. In the distribution, each Novartis shareholder will receive 1 Alcon share for every 5 Novartis shares/ADRs they hold on April 8, 2019, close of business.

Approval has been given, subject to customary conditions, by the SIX Exchange Regulation for the listing of the shares of Alcon Inc. on the SIX Swiss Exchange (SIX) pursuant to the International Reporting Standard. Authorization has also been received for the listing of shares in Alcon Inc. on the New York Stock Exchange (NYSE).

Alcon will seek effectiveness of the Alcon Inc. Form 20-F registration statement from the US Securities and Exchange Commission (SEC). The Alcon Inc. 20-F registration statement is available at www.sec.gov and can also be accessed at the following link after its publication with the SEC: https://www.novartis.com/sites/www.novartis.com/files/alcon-20f-filing-2019.pdf.

Shares in Alcon Inc. are expected to be listed and traded from April 9, 2019 on the SIX and the NYSE under the ticker symbol "ALC". Alcon will also be included in both the Swiss Market Index (SMI®) and Swiss Performance Index (SPI®) from the first day of trading, as recently announced by the SIX.

Alcon has secured debt financing of USD 3.5 billion through a group of banks. The Alcon credit rating will be investment grade following the spin-off. Moody's Investor Service and S&P Global Ratings have rated Alcon at Baa2 and BBB, respectively, with a stable outlook.

Bank of America Merrill Lynch and UBS AG are advising Novartis on the transaction.

Important information about the Alcon spin-off
Shares of Novartis will continue to trade on the SIX under the symbol "NOVN". Any holders of Novartis shares who sell them prior to the close of trading on April 8, 2019 will also be forfeiting their right to receive Alcon shares in the distribution. Novartis ADRs will continue to trade "regular-way" on NYSE under the symbol "NVS". Any holders of Novartis ADRs who sell them "regular-way" prior to the close of trading on April 8, 2019 will also be forfeiting their right to receive Alcon shares in the distribution.

Between the ADR record date of April 1, 2019 and through April 10, 2019, Novartis ADR holders cannot convert their Novartis ADRs into Novartis ordinary shares and vice versa.

As opposed to a typical US domestic spin-off, and in order to align trading between the Swiss and US markets, there will be no "ex-distribution" trading of Novartis ADRs, nor "when-issued" trading of Alcon shares, prior to the spin-off. Shareholders will not have the ability to trade Novartis ADRs ex-dividend on the NYSE during the period between the day before the ADR record date and the spin-off completion date and will not have the ability to trade Alcon on a "when-issued basis" on either the SIX or the NYSE prior to the spin-off. Beginning on April 9, 2019, shareholders will be able to trade Alcon shares in the regular-way market on both the SIX and NYSE under the symbol "ALC".

Timeline for planned April 9, 2019 spin-off[1]

Date Event
February 28, 2019 Approval of the planned 100% spin-off of Alcon eye care business at the Annual General Meeting of shareholders of Novartis AG
March 29, 2019 Last day for conversion of ADRs into Novartis shares (and vice versa)
April 1, 2019 ADR record date
April 8, 2019 Cum-dividend date (last day of trading Novartis shares and ADRs including right to receive Alcon shares)
April 8, 2019, close of business Distribution of Alcon shares to Novartis ADR holders (payment date for ADR holders)[2]
April 9, 2019 Ex-dividend date (first day of trading Novartis shares and ADRs excluding the right to receive Alcon shares)
Listing and first day of trading of Alcon shares on the SIX (9.00am CET) and the NYSE (9:30am EST)
Inclusion of Alcon in the SMI® and SPI® Indices
April 9, 2019 or shortly after[3] Credit of Alcon shares to Novartis shareholders by their bank or broker
April 11, 2019 First day ADR holders may again convert their Novartis ADRs into Novartis ordinary shares (and vice-versa)
On or around April 23, 2019 Distribution of net cash proceeds for fractions of shares[4]
[1] Summary description only; for more detail on the expected timeline for the spin-off, please refer to the Alcon Inc. Form 20-F and the Swiss listing prospectus, once available
[2] ADR holders should consult with their intermediary or broker concerning the mechanics of owning Alcon Shares held in street accounts and the date as of which they can expect to begin trading Alcon Shares through their intermediary or broker
[3] Shareholders should contact their bank, broker or other nominee for further information about their account and when they will be able to begin trading their Alcon shares
[4] For details regarding the aggregation and sale of fractional shares, please refer to the Alcon Inc. Form 20-F and the Swiss listing prospectus, once available

Disclaimer
This press release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995, that can generally be identified by words such as "plans," "will," "secured," "expected," etc.etc.

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