882095--3/3/2006--GILEAD_SCIENCES

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Substantially all of our revenues are derived from sales of a limited number of products. If we are unable to maintain or continue increasing sales of our HIV products, our results of operations may be adversely affected. If we fail to commercialize new products or expand the indications for existing products, our prospects for future revenues and our stock price may be adversely affected. If significant safety issues arise for our marketed products, our sales may decline, which would adversely affect our results of operations. Our operations depend on compliance with complex FDA and comparable international regulations. Failure to obtain broad approvals on a timely basis or to achieve continued compliance could delay or halt commercialization of our products. We depend on contract research organizations and our results of clinical trials are uncertain and may not support continued development of a product pipeline, which would adversely affect our prospects for future revenue growth. Manufacturing problems could delay product shipments and regulatory approvals, which may adversely affect our results of operations. We may not be able to obtain materials necessary to manufacture our products, which could limit our ability to generate revenues. We depend on relationships with other companies for sales and marketing performance and revenues. Failure to maintain these relationships, poor performance by these companies or disputes with these other companies could negatively impact our business. Expenses associated with clinical trials and sales fluctuations as a result of inventory levels held by wholesalers may cause our earnings to fluctuate, which could adversely affect our stock price. Approximately half of our product sales occurs outside the United States, and currency fluctuations may cause our earnings to fluctuate, which could adversely affect our stock price. We face credit risks from our European customers that may adversely affect our results of operations. Our plan to supply Viread and Truvada to certain developing countries under our Access Program may expose us to unforeseen liabilities and risks. Our product revenues could be reduced by imports from countries where our products are available at lower prices. In some countries, we may be required to grant compulsory licenses for our products or face generic competition for our products. Our existing products are subject to reimbursement from government agencies and other third parties. Pharmaceutical pricing and reimbursement pressures may reduce profitability. Our results of operations could be adversely affected by future health care reforms. We may not be able to obtain effective patents to protect our technologies from use by competitors and patents of other companies could require us to stop using or pay for the use of required technology. We may face significant liability resulting from our products that may not be covered by insurance and successful claims could materially reduce our earnings. Expensive litigation may reduce our earnings. Changes in our effective income tax rate could reduce our earnings. Recently adopted changes in accounting for stock options will significantly reduce our earnings.

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882095--3/3/2006--GILEAD_SCIENCES_INC