October 19, 2007
For Immediate Release

3M Achieves Record Third-Quarter Sales and Earnings

Per-Share Earnings Rise 12% On Record Sales Of $6.2 Billion; Company Raises Full-Year Earnings Expectations

St. Paul, Minn – 3M (NYSE:MMM) today announced its sales and profit results for the third quarter of 2007.

The company posted record third-quarter sales of $6.2 billion, an increase of 5.5 percent. Sales rose 9.4 percent adjusted for recently divested businesses, primarily the company’s branded pharmaceuticals business.

Third-quarter net income was a record $960 million, or $1.32 per share, versus $894 million, or $1.18 per share, in the third quarter of 2006. Net income and earnings per share increased 7.4 percent and 11.9 percent, respectively. Included in these results is a net benefit from special items of $20 million, or $0.03 per share, in the third quarter of 2007, and a net gain of $10 million, or $0.01 per share, in last year’s third quarter (items d-f).

The company’s pharmaceuticals business, which was divested during the fourth quarter of 2006 and the first quarter of 2007, earned $0.07 per share in last year’s third quarter. Excluding special items in both periods and excluding the 2006 earnings from the now-divested pharmaceuticals business, earnings per share increased 17 percent.

“The strength of the 3M portfolio was evident in the third quarter as we again generated record sales,” said George W. Buckley, 3M chairman, president and CEO. “All of our businesses posted positive worldwide local-currency sales growth, led by a 17 percent increase in Health Care. Geographic diversity was also an important factor as all regions drove positive growth in local currencies, led by double-digit performances in Europe and Latin America. We leveraged this growth into a 12 percent improvement in earnings per share, and I would like to thank the entire 3M team for their hard work in achieving it.”

Buckley continued. “Our growth plans remain on track and are gaining momentum. We continue to accelerate investment in research and development, sales and marketing, and in simplification of our supply chains, while maintaining superior returns. By leveraging 3M’s many strengths, including market-leading global franchises, world-class technology to solve customer problems and an ever-expanding market presence, and combining them with an enthusiastic and talented workforce, we are well-positioned to take 3M to a higher level.”

Executive Summary

• Revenues of $6.2 billion, up 5.5 percent from 2006 and up 9.4 percent excluding the impact of businesses divested within the past year
• Local-currency sales, including the impact of acquisitions, up 6.3 percent
• Acquisitions closed within the past year added 2.1 percent to third-quarter sales growth
• Currency impacts added 3.1 points to overall sales growth
• Reported operating income for the quarter increased 6.2 percent to $1.4 billion; excluding special items in the third quarter of both this year and last, operating income increased 3.3 percent; further excluding the 2006 earnings from the now-divested branded pharmaceuticals business, operating income improved by 9.1 percent
• Reported earnings per share of $1.32, up 12 percent from the third quarter of 2006; excluding special items in both periods, earnings per share increased by more than 10 percent; further excluding 2006 earnings of the pharmaceuticals business, per-share earnings increased 17 percent
• Returned $900 million to shareholders through cash dividends and repurchases of shares in the third quarter, bringing the year-to-date total up to $3.8 billion

Key Financial Highlights

Third-quarter worldwide sales totaled $6.2 billion, up 5.5 percent compared to the third quarter of 2006. Local-currency sales including acquisitions increased 6.3 percent and foreign exchange impacts added 3.1 percent in the quarter. Divestitures, primarily the recent sale of the company’s branded pharmaceuticals business, reduced reported sales growth by 3.9 percent. Local-currency sales including acquisitions increased 16.6 percent in Health Care, 6.7 percent in Safety, Security and Protection Services, 5.4 percent in Industrial and Transportation, 4.3 percent in Electro and Communications, 3.5 percent in Consumer and Office, and 1 percent in Display and Graphics.

Third-quarter net income was $960 million, or $1.32 per share, versus $894 million, or $1.18 per share, in the third quarter of 2006, an increase of 7.4 percent and 11.9 percent, respectively. Excluding special items in both periods, net income and earnings per share increased 6.4 percent and 10.3 percent, respectively. The company’s pharmaceuticals business, which was sold in multiple transactions during the fourth quarter of 2006 and the first quarter of 2007, earned $0.07 per share in last year’s third quarter.

For the first nine months of 2007, sales increased 6.5 percent to $18.3 billion, driven by a 7.7 percent increase in local-currency sales, including acquisitions. Year-to-date earnings were $4.42 per share, up 26.3 percent over 2006, and up 11.8 percent excluding special items (a-f) in both periods. Adjusting for the 2006 earnings from the now-divested branded pharmaceuticals business, year-to-date per-share earnings increased 17.7 percent.

Business Segment Discussion

Industrial and Transportation

• Sales rose 9.3 percent to $1.8 billion
• Sales up 5.4 percent in local currencies, including 1.2 percent from acquisitions
• Broad-based sales performance: strongest growth in industrial adhesives and tapes, automotive, automotive aftermarket and abrasives businesses
• Local-currency sales down slightly in diaper components business; working aggressively to improve working relationships with key OEMs
• Positive growth in all major geographic regions with exceptional growth in Europe and Latin America
• Solid operational performance, with profits up 11.4 percent and 20.9 percent operating margin

• Sales exceeded $1 billion, an increase of 2 percent
• Local-currency sales up slightly
• LCD film sales increased slightly both year-on-year and sequentially
• Strongest growth in Latin America, with sales up double-digits
• Operating profit of $288 million; profits up in commercial graphics and traffic safety systems, down 11 percent in optical systems
• Aggressive productivity actions drove company-high 28.5 percent operating margin

• Sales of $961 million, up 21 percent excluding impact of divestiture of branded pharmaceutical business
• Local-currency sales growth of 16.6 percent including 4.6 percent from acquisitions
• All health care businesses generated double-digit sales growth, led by drug delivery, medical and health information systems
• Pharma divestiture reduced reported sales by 24 percent
• Double-digit sales growth in all major geographic regions, adjusted for the pharmaceutical divestiture
• Operating income of $259 million, up 13.7 percent, excluding pharma and special items; outstanding 26.9 percent margin

• Sales increased 5.9 percent to $898 million
• Local-currency sales growth of 3.5 percent, including a point from acquisitions
• Strongest growth in home care and do-it-yourself businesses
• Sales growth led by Europe and APAC
• Generated positive US growth despite soft sales trends amongst big-box retailers
• Operating margins of 21.3 percent

• Sales of $766 million, up 11 percent
• Sales growth in local currency of 6.7 percent
• Broad-based sales growth led by security systems, respiratory protection and corrosion protection products; recent acquisitions adding significantly to overall growth
• Continued sales softness in roofing granules business, which impacted total segment sales growth by about 2 points
• Profits up 11 percent to $157 million; operating margins of 20.5 percent

• Sales grew 7.6 percent to $714 million
• Local-currency growth of 4.3 percent, including a point from acquisitions
• Outstanding sales and profit growth in both electrical and communication/telecom markets
• Sluggish consumer electronics market continues to dampen overall growth
• Outstanding productivity with profits up 16.4 percent to $140 million; margins of 19.6 percent, excluding special items during the quarter

Outlook

3M raised its 2007 full-year earnings expectations for the second consecutive quarter. The company now expects reported earnings to be in the range of $5.54 to $5.62 per share versus a prior estimate of $5.40 to $5.60. The new guidance includes an estimated full year 2007 net gain of approximately $0.60 to $0.65 per share, due to special items—primarily the completed 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 within a range of 7 to 8 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 and the Quarterly Report on Form 10-Q for the quarter ended March 31, 2007 (the “Reports”). Changes in such assumptions or factors could produce significantly different results. A further description of these factors is located in the Reports under “Risk Factors” in Part I, Item 1A (Annual Report) and in Part II, Item 1A (Quarterly Report). 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.

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