April 26, 2007
For Immediate Release

3M Reports Record First Quarter Sales and Earnings

First Quarter Reported EPS up 58.1% to $1.85 per share

St. Paul, Minn – 3M (NYSE:MMM) today reported record first-quarter 2007 earnings of $1.4 billion or $1.85 per share, up 52.2 percent and 58.1 percent, respectively, from the first quarter of 2006. First quarter 2007 net income includes a net gain of $422 million, or $0.57 per share, from the sale of the company’s branded pharmaceuticals business in Europe, net of various other special items (a-c).

“Our strategy for achieving higher growth while maintaining superior financial returns is working well, as evidenced by this quarter’s broad-based growth and profitability,” said George W. Buckley, 3M chairman, president and CEO. “Quarterly sales grew by 6.1 percent, reaching an all-time high, and we delivered record net income – all while investing in additional capacity to build and sustain growth in the future. Importantly, we were able to overcome the impact of the pharmaceutical business divestiture, as sales improved by almost 10 percent ex-pharma and earnings grew at double-digit rates. Our exceptionally strong start in 2007 gives me great confidence in our people around the world to keep accelerating growth and leveraging it to the bottom line.”

Executive Summary

• Revenues of $5.9 billion, up 6.1 percent from 2006. Excluding the impact of divested branded pharmaceuticals business, sales increased nearly 10 percent.
• Local currency sales, including the impact of acquisitions, up 7.4 percent from 2006.
• Negative 3.8 percent impact on sales growth due to the divestiture of branded pharmaceuticals business.
• Reported operating income for the quarter increased 53.5 percent to $2.1 billion including $653 million net benefit from special items (a-c).
• Reported net income of $1.4 billion up 52.2 percent including $422 million of after-tax net benefit from special items (a-c).
• Reported earnings per share of $1.85, up 58.1 percent from 2006 including $0.57 net benefit from special items (a-c).
• Returned $1.5 billion to shareholders through cash dividend and repurchase of shares.

Key Financial Highlights

First-quarter worldwide sales in U.S. dollars totaled $5.9 billion, up 6.1 percent compared to the first quarter of 2006. Local-currency sales including acquisitions increased 7.4 percent, and foreign exchange impacts added 2.5 percent in the quarter. Divestitures, namely the recent sale of the company’s branded pharmaceuticals business, reduced reported sales growth by 3.8 percent. Local-currency sales including acquisitions increased 20.4 percent in Health Care, 15 percent in Safety, Security and Protection Services, 8.2 percent in Consumer and Office, 4 percent in Industrial and Transportation and 1.2 percent in Electro and Communications. Local-currency sales decreased by 0.8 percent in Display and Graphics, largely due to difficult year-on-year comparisons resulting from last year’s first-quarter inventory buildup within the LCD industry. First-quarter net income was $1.4 billion, or $1.85 per share, versus $899 million, or $1.17 per share, in the first quarter of 2006. Net income and earnings per share increased 52.2 percent and 58.1 percent, respectively. The divested pharmaceuticals business contributed 5 cents per share in the comparable quarter last year. First quarter 2007 net income included a net profit of $422 million, or $0.57 per share, due to a gain on the sale of the branded pharmaceuticals business in Europe that closed in January, net of various other special items (a-c).

“The great strength of our brands, manufacturing capabilities and broad geographic distribution network, combined with the tremendous efforts across the company to invigorate 3M’s core businesses are producing tangible results,” said Buckley. “Our ability to deliver products that embody innovative 3M technology to make our customers more successful will accelerate growth well into the future.”

Business Segment Discussion

Industrial and Transportation

• Sales increased 6.7 percent to $1.8 billion.
• Sales up 4 percent in local currencies, including 0.9 percent from acquisitions.
• Growth strongest in industrial adhesives and tapes, automotive aftermarket and abrasives businesses.
• Solid international performance with growth led by Europe and Asia Pacific.
• Solid operational performance, with profits up 8.2 percent and operating margin of 23 percent.

• Sales of $962 million, up 24.4 percent excluding impact of divestiture of branded pharmaceutical business.
• Local-currency sales growth of 20.4% including 5.6% from acquisitions; all health care businesses generating significant growth, led by drug delivery systems.
• Pharma divestiture reduced reported sales by 24.9%.
• Operating income increased 12.7% excluding Pharma and special items.
• Sales growing in all geographic regions, led by U.S. and Europe.
• 3M ESPE “Most Innovative Company” in dental industry for second consecutive year.

• Sales up slightly to $921 million, a first-quarter record.
• Outstanding sales and profit performance in commercial graphics.
• LCD industry inventories now better balanced with consumer demand, unlike last year. Optical film sales down year-on-year as a result.
• Observing more rational capital expansion plans from big LCD OEMs.
• Profits were $295 million; strong operational discipline drove 32 percent margin.

• Sales increased 9.9 percent to $814 million.
• Local-currency sales growth was 8.2 percent, including a point of growth due to the acquisition of Nylonge.
• DIY retail channel rebounds from Q4 with double-digit sales and profit growth.
• Solid growth in consumer mass retail channel.
• Broad-based sales growth performance led by US and Europe.
• Awarded “Global Supplier of the Year” by Staples, Inc.
• Outstanding leverage with profits up 18.1 percent; margins up 150 basis points to 21.7 percent.

• Sales were $758 million, up 18.7 percent.
• Growth in local currency of 15 percent, including 10 percent from acquisitions, primarily Security Printing Systems, Ltd.
• Broad-based sales growth led by respiratory protection, window film and cleaning solutions for commercial buildings and corrosion protection products.
• Sequential rebound in roofing granules but sales still down year-on-year.
• Intense focus on operational excellence drove a 14.9 increase in profits.

• Sales increased 3.6 percent to $668 million.
• Local-currency growth of 1.2 percent, primarily acquisition-driven.
• Outstanding sales and profit growth in electrical markets, with new products driving growth.
• Double-digit growth in communications markets; global infrastructure build continues to fuel 3M growth.
• Sales declines in flexible circuits and other electronic solutions.
• Relentless focus on productivity drove operating margin of 16.6 percent; margins were a record 19.5 percent excluding special items.

Outlook

3M also reiterated its 2007 sales and earnings expectations. The company continues to expect 2007 earnings per share to be in the range of $5.20 to $5.45. This includes an estimated full year 2007 gain, net of costs from special items, of approximately $0.60 to $0.70 per share, primarily due to the sale of the company’s branded pharmaceuticals business in Europe. 3M also expects full-year, local-currency sales growth, adjusted for the divestiture of its branded pharmaceuticals business, to be between 6 and 10 percent, which includes approximately 1.8 percentage points from acquisitions closed as of today. Including the branded pharmaceuticals sales in 2006, total local-currency sales growth for 2007 is expected to be between 2 and 6 percent.

George W. Buckley, and Patrick D. Campbell, senior vice president and chief financial officer, will conduct an investor teleconference at 9 a.m. Eastern Time (8 a.m. Central Time) today. Investors can access a Webcast of this conference, along with related charts and materials, at http://investor.3M.com.

Forward-Looking Statements

This news release contains forward-looking information (within the meaning of the Private Securities Litigation Reform Act of 1995) about the company’s financial results and estimates, business prospects, and products under development that involve substantial risks and uncertainties. You can identify these statements by the use of words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” “will,” and other words and terms of similar meaning in connection with any discussion of future operating or financial performance. Among the factors that could cause actual results to differ materially are the following: (1) worldwide economic conditions; (2) competitive conditions and customer preferences; (3) foreign currency exchange rates and fluctuations in those rates; (4) the timing and acceptance of new product offerings; (5) the availability and cost of purchased components, compounds, raw materials and energy (including oil and natural gas and their derivatives) due to shortages, increased demand or supply interruptions (including those caused by natural and other disasters and other events); (6) the impact of acquisitions, strategic alliances, divestitures, and other unusual events resulting from portfolio management actions and other evolving business strategies, and possible organizational restructuring; (7) generating less productivity improvements than estimated; and (8) legal proceedings, including significant developments that could occur in the legal and regulatory proceedings described in the company’s Annual Report on Form 10-K for the year ended Dec. 31, 2006 (the “Report”). Changes in such assumptions or factors could produce significantly different results. A further description of these factors is located in the Report under Part I, Item 1A , “Risk Factors.” The information contained in this news release is as of the date indicated. The company assumes no obligation to update any forward-looking statements contained in this news release as a result of new information or future events or developments.

About 3M - A Global, Diversified Technology Company

Every day, 3M people find new ways to make amazing things happen. Wherever they are, whatever they do, the company’s customers know they can rely on 3M to help make their lives better. 3M's brands include Scotch, Post-it, Scotchgard, Thinsulate, Scotch-Brite, Filtrete, Command and Vikuiti. Serving customers around the world, the people of 3M use their expertise, technologies and global strength to lead in major markets including consumer and office; display and graphics; electronics and telecommunications; safety, security and protection services; health care; industrial and transportation. For more information, including the latest product and technology news, visit www.3M.com.

Scotch, Post-it, Scotchgard, Thinsulate, Scotch-Brite, Filtrete, Command and Vikuiti are trademarks of 3M.

3M is a trademark of 3M. Used under license in Canada.