Alcon Independent Director Committee Reviewing Novartis' Merger Proposal

Independent Director Committee Reviewing Novartis' Merger Proposal

HUENENBERG, Switzerland - January 4,

2010 - Alcon, Inc. (NYSE: ACL) announced that Novartis AG (NYSE: NVS) has

exercised its option to purchase the remaining shares in Alcon owned by Nestle

S.A. at a weighted average price of US$180 per share in cash. Upon

consummation of the purchase, Novartis would own an approximate 77 percent

interest in Alcon. Alcon also announced that Novartis had submitted a

proposal to the Alcon Board of Directors relating to the remaining approximate

23 percent publicly-held minority interest pursuant to which Alcon would merge

with and into Novartis under Swiss merger law and minority holders of

publicly-held shares would receive 2.8 Novartis shares for each of Alcon's

publicly-traded shares. Based on the Novartis share price on December

30, 2009, Novartis' merger proposal values each publicly-traded share of Alcon

at approximately US$153.

The proposed merger would be

conditioned upon, among other things, approval by the Alcon Board of Directors,

the closing of the purchase and sale transaction between Novartis and Nestle

relating to the Novartis option exercise as well as receipt of required

regulatory approvals.

The Alcon Board of Directors

established an Independent Director Committee of the Alcon Board of Directors in

2008 in connection with Novartis' initial purchase of approximately 25 percent

of the Alcon shares from Nestle in order to protect the interests of the

minority holders of publicly-held Alcon shares in transactions such as Novartis'

merger proposal. The Committee is composed of three independent

directors: Lodewijk de Vink, Joan W. Miller, M.D. and Thomas G.

Plaskett. In connection with its review of the Novartis merger

proposal, the Committee has retained Greenhill & Co. as independent

financial advisor and Sullivan & Cromwell LLP as independent legal advisor

and will thoroughly review the Novartis merger proposal in an effort to secure

the best attainable value for the minority holders of publicly-held Alcon

shares. The Committee notes that neither the Committee nor the

management of Alcon participated in the preparation of Novartis' merger

The Committee is working closely with

its advisors to evaluate the terms of the proposed merger, including the form

and amount of consideration. In particular, the Committee notes that

Novartis' implied per share valuation of Alcon of approximately US$153

represents an approximate 15 percent discount to the weighted average call price

of US$180 to be paid by Novartis to Nestle for Nestle's approximate 52 percent

interest in Alcon. The Committee continues to have confidence in

Alcon management's ability to deliver superior value to its

The Committee will inform the Alcon

shareholders of the Committee's formal position on Novartis' merger

proposal once the Committee completes its evaluation. The

Committee has also retained Brunswick Group as external communications

Inc. is the world's leading eye care company, with sales of approximately $6.3

billion in 2008. Alcon, which has been dedicated to the ophthalmic

industry for 65 years, researches, develops, manufactures and markets

pharmaceuticals, surgical equipment and devices, contacts lens solutions and

other vision care products that treat diseases, disorders and other

of the eye. Alcon operates in 75 countries and sells products in 180

markets. For more information on Alcon, Inc., visit the Company's web

site at www.alcon.com.

Caution Concerning Forward-Looking

Statements. This press release may contain forward-looking statements

within the meaning of the United States Private Securities Litigation Reform Act

of 1995. Any forward-looking statements reflect the views of the Committee as of

the date of this press release with respect to future events and are based on

assumptions and subject to risks and uncertainties. Given these uncertainties,

you should not place undue reliance on these forward-looking statements. There

can be no guarantee that Novartis or Alcon will achieve any particular future

financial results or future growth rates or that Novartis or Alcon will be able

to realize any potential synergies, strategic benefits or opportunities as a

result of the consummation of the Novartis purchase or the proposed

merger. Except to the extent required under the federal securities

laws and the rules and regulations promulgated by the Securities and Exchange

Commission, we undertake no obligation to publicly update or revise any of these

forward-looking statements, whether to reflect new information or future events

or circumstances or otherwise.

Lipin/Jennifer Lowney

Group (212) 333-3810