ALCON, INC. B sch 69 P.O. Box 62 H nenberg, Switzerland 2007 FINANCIAL REPORT ALCON, INC. 2007 FINANCIAL REPORT TABLE OF CONTENTS Page Reference Management's Report on Internal Control over Financial Reporting 3 Reports

H nenberg, Switzerland

2007 FINANCIAL REPORT

2007 FINANCIAL REPORT

MANAGEMENT'S REPORT ON INTERNAL CONTROL OVER FINANCIAL

Alcon, Inc.'s management is responsible for establishing and maintaining

adequate internal control over financial reporting. Alcon, Inc.'s internal control system

was designed to provide reasonable assurance to the Company's management regarding the

reliability of financial reporting and the preparation and fair presentation of its

published consolidated financial statements.

All internal control systems, no matter how well designed, have inherent

limitations. Therefore, even those systems determined to be effective may not prevent or

detect misstatements and can provide only reasonable assurance with respect to financial

statement preparation and presentation. Also, projections of any evaluation of

effectiveness to future periods are subject to the risk that controls may become inadequate

because of changes in conditions, or that the degree of compliance with the policies or

procedures may deteriorate.

Alcon, Inc. acquired a majority interest in WaveLight AG during November

2007. Management excluded from its assessment of the effectiveness of Alcon, Inc.'s

internal control over financial reporting as of December 31, 2007 WaveLight AG's internal

control over financial reporting associated with total assets of $208.1 million and sales

of $15.1 million included in the consolidated financial statements of Alcon, Inc. and its

subsidiaries as of and for the year ended December 31, 2007. Management did not assess the

effectiveness of internal control over financial reporting at WaveLight AG due to the

complexity associated with assessing internal controls during integration

Alcon, Inc.'s management assessed the effectiveness of the Company's

internal control over financial reporting as of December 31, 2007. In making this

assessment, it used the criteria established in Internal

Control--Integrated Framework issued by the Committee of

Sponsoring Organizations of the Treadway Commission (COSO). Based on this assessment,

management has concluded that, as of December 31, 2007, Alcon, Inc.'s internal control over

financial reporting is effective based on those criteria.

OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Board of Directors and Shareholders of

We have audited the accompanying consolidated balance sheets of Alcon, Inc.

and subsidiaries as of December 31, 2007 and 2006, and the related consolidated statements

of earnings, shareholders' equity and comprehensive income, and cash flows for each of the

years in the three-year period ended December 31, 2007. These consolidated financial

statements are the responsibility of the Company's management. Our responsibility is to

express an opinion on these consolidated financial statements based on our

We conducted our audits in accordance with the standards of the Public

Company Accounting Oversight Board (United States). Those standards require that we plan

and perform the audit to obtain reasonable assurance about whether the financial statements

are free of material misstatement. An audit includes examining, on a test basis, evidence

supporting the amounts and disclosures in the financial statements. An audit also includes

assessing the accounting principles used and significant estimates made by management, as

well as evaluating the overall financial statement presentation. We believe that our audits

provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above

present fairly, in all material respects, the financial position of Alcon, Inc. and its

subsidiaries as of December 31, 2007 and 2006, and the results of their operations and

their cash flows for each of the years in the three-year period ended December 31, 2007, in

conformity with U.S. generally accepted accounting principles.

As discussed in note 9 to the consolidated financial statements, effective

January 1, 2007, the Company implemented FASB Interpretation No. 48,

Accounting for Uncertainty in Income

Taxes, an interpretation of FASB

As discussed in notes 1 and 16 to the consolidated financial statements,

effective December 31, 2006, the Company implemented the recognition and related disclosure

provisions of Statement of Financial Accounting Standards No. 158,

Employers' Accounting for Defined Benefit Pension and Other

Postretirement Plans.

As discussed in notes 1 and 12 to the consolidated financial statements,

effective January 1, 2006, the Company implemented Statement of Financial Accounting

Standards No. 123(R), Share-Based

We also have audited, in accordance with the standards of the Public Company

Accounting Oversight Board (United States), Alcon, Inc.'s internal control over financial

reporting as of December 31, 2007 based on criteria established in

Internal Control--Integrated Framework issued

by the Committee of Sponsoring Organizations of the Treadway Commission (COSO), and our

report dated March 17, 2008 expressed an unqualified opinion on the effectiveness of the

Company's internal control over financial reporting.

OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Board of Directors and Shareholders of

We have audited Alcon, Inc.'s internal control over financial reporting as

of December 31, 2007, based on criteria established in Internal

Control--Integrated Framework issued by the Committee of

Sponsoring Organizations of the Treadway Commission (COSO). Alcon, Inc.'s management is

responsible for maintaining effective internal control over financial reporting and for its

assessment of the effectiveness of internal control over financial reporting, included in

the accompanying Management's Report on Internal Control over

Financial Reporting. Our responsibility is to express an opinion

on management's assessment and an opinion on the Company's internal control over financial

reporting based on our audit.

We conducted our audit in accordance with the standards of the Public

Company Accounting Oversight Board (United States). Those standards require that we plan

and perform the audit to obtain reasonable assurance about whether effective internal

control over financial reporting was maintained in all material respects. Our audit

included obtaining an understanding of internal control over financial reporting, assessing

the risk that a material weakness exists, and testing and evaluating the design and

operating effectiveness of internal control based on the assessed risk. Our audit also

included performing such other procedures as we considered necessary in the circumstances.

We believe that our audit provides a reasonable basis for our opinion.

A company's internal control over financial reporting is a process designed

to provide reasonable assurance regarding the reliability of financial reporting and the

preparation of financial statements for external purposes in accordance with generally

accepted accounting principles. A company's internal control over financial reporting

includes those policies and procedures that (1) pertain to the maintenance of records that,

in reasonable detail, accurately and fairly reflect the transactions and dispositions of

the assets of the company; (2) provide reasonable assurance that transactions are recorded