Tyco Reports 2002 Results

PEMBROKE, Bermuda -- Tyco International Ltd. (NYSE - TYC, BSX - TYC, LSE - TYI) today said that it filed its annual report on Form 10-K reporting on its financial results for the fiscal year 2002, which ended on September 30. The report includes an unqualified audit opinion from PricewaterhouseCoopers LLP, the Company's independent auditors. The Company also filed a Form 8-K report with the Securities and Exchange Commission regarding the previously announced review and analysis of the Company's accounting and governance practices and procedures. In addition, Tyco said that it has recorded pre-tax charges of $382 million in its fiscal 2002 results. This reflects audit adjustments for the 2002 fiscal year as well as corrections of errors in prior years. Of these charges, $186 million is attributable to the recent modification the Company made to the connection fee recognized for the ADT dealer program at the time a customer's system is installed. This amount covers the impact during the fiscal years 1999-2001. As a result of the pre-tax charges, the Company's net loss after taxes for fiscal 2002 increased to $9.4 billion from the $9.1 billion reported on October 24th. Summary of Findings of Accounting and Governance Review The purpose of the accounting and corporate governance review was to review Tyco's 1999-2002 reported revenues, profits, cash flow, internal auditing and control procedures, accounting for major acquisitions and reserves, the use of non-recurring charges, the personal use of corporate assets, the use of corporate funds to pay personal expenses, employee loan and loan forgiveness programs, and corporate governance issues. The review included an examination of 15 mergers and acquisitions with an aggregate purchase price of $30.1 billion excluding debt assumed in connection with purchase accounting transactions. In summary, it was concluded that:

The Company's 8-K filing includes details on the findings of the accounting and governance review. Tyco International Ltd.