3M Reports Net Income of $988 Million; Sales Increase 9 Percent to $6.5 Billion.

Company Reaffirms 2008 EPS Growth of Greater Than 10 Percent

ST. PAUL, Minn. -- 3M (NYSE: MMM) today announced first-quarter sales of $6.5 billion, an increase of 8.9 percent over last year. Net income was $988 million, or $1.38 per share, versus $1.4 billion, or $1.85 per share in the first quarter of 2007. Included in first quarter 2007 results are net gains of $422 million, or $0.57 per share, from the sale of the company's branded pharmaceuticals business in Europe, net of other various special items (a-c). Excluding the impact of these items, first quarter 2008 earnings per share increased 7.8 percent.

"Our first-quarter results demonstrate the strength of 3M's global presence and the power of our diverse business portfolio," said George W. Buckley, 3M chairman, president and CEO. "Two-thirds of our sales came from our international subsidiaries, and growth in many developing economies enabled us to overcome economic challenges in the U.S. and to fund investments to secure the future of our enduring franchises. I applaud the efforts and dedication of 3M employees worldwide for delivering these results."

Four of the company's six global businesses achieved double-digit profit growth in the quarter, namely Industrial and Transportation, Health Care, Safety Security and Protection Services, and Electro and Communications, which more than offset profit declines in 3M's Consumer and Office and Display and Graphics businesses.

Buckley continued. "While economic conditions are uncertain, we remain focused on critical growth drivers including 3M's world-renowned research and development capability, continued investment in our many enduring franchises, strategic acquisitions and new manufacturing plants that will improve our ability to serve customers. We will continue to balance growth and operational excellence in order to meet our commitments to our shareholders and to our customers around the world."

Executive Summary

* Revenues of $6.5 billion, up 8.9 percent from 2007.

* Local-currency sales, including the impact of acquisitions, up 3 percent from 2007.

* Currency impacts added 6.1 percent to sales in the quarter.

* Operating income increased 3.6 percent to $1.5 billion, excluding special items in the first quarter of 2007 (a-c).

* Earnings per share of $1.38, up 7.8 percent, excluding special items in the first quarter of 2007 (a-c).

* Returned $863 million to shareholders through cash dividends and share repurchases.

Key Financial Highlights

First-quarter worldwide sales totaled $6.5 billion, an increase over last year of 8.9 percent. Local-currency sales including acquisitions increased 3 percent, and foreign exchange impacts added 6 points to growth in the quarter. Local-currency sales including acquisitions increased 9.6 percent in Industrial and Transportation, 6.4 percent in Safety, Security and Protection Services, 5.9 percent in Health Care and 3.3 percent in Electro and Communications, but declined by 9.1 percent in Display and Graphics and 2.5 percent in Consumer and Office. First-quarter net income was $988 million, or $1.38 per share, versus $946 million, or $1.28 per share, in the first quarter of 2007, excluding special items. Net income and earnings per share increased 4.4 percent and 7.8 percent respectively, excluding special items.

Business Segment Discussion

Industrial and Transportation

* Sales increased 17.1 percent to $2.1 billion.

* Sales up 9.6 percent in local currencies, including 4 percent from acquisitions.

* Broad-based sales performance with double-digit sales growth in virtually all product divisions and in all major geographies.

* 3M Clean Sanding Systems--including a new line of professional power tools with Filtrete[TM] technology--driving abrasives growth worldwide.

* Automotive Aftermarket abrasives for professional auto body shops continue to outperform in a competitive market.

* Superior operational performance, with profits up 15.2 percent to $472 million; operating margins of 22.6 percent.

Health Care

* Sales rose 12 percent to $1.1 billion.

* Local-currency sales growth of 5.9 percent including 0.8 percent from acquisitions.

* Strongest sales growth in medical, dental and orthodontics businesses.

* Positive sales growth in all major geographies, led by Europe.

* Dental business seeing strong interest in new Filtek[TM] restorative system.

* Medical division recently launched new Tegaderm[TM] infection prevention product for IV sites.

* Operating income increased 19.6 percent to $321 million, with margins of nearly 30 percent, excluding special items in the first quarter of 2007.

Display and Graphics

* Sales declined 5.9 percent to $871 million, with local-currency sales down 9.1 percent

* Optical sales down 16 percent with profits down 50 percent.

* Positive sales growth in Traffic Safety Systems and Commercial Graphics, which was more than offset by lower-than-expected sales in Optical Systems.

* Commercial graphics business gaining traction with new 'extreme vehicle film wraps' that conform and adhere to concave or deep channeled surfaces.

* Projection Systems business launched the new 3M Mobile Projection Technology, an ultra-compact, LED-illuminated projection engine designed for personal electronic devices.

* Operating profits were $187 million, with a 21.5 percent margin.

Safety, Security and Protection Services

* Sales of $859 million, up 13.4 percent.

* Sales growth in local currency of 6.4 percent, including 1.9 percent from acquisitions.

* Broad-based sales growth led by respiratory protection, protective window films and cleaning solutions for commercial buildings, and corrosion protection products.

* Double-digit sales growth in Europe, Asia Pacific and Latin America.

* Track and Trace business extended its innovative product line with a new Dynatel Pipe/Cable Locator, specially designed for locating underground pipes.

* Profits up 12.4 percent to $204 million, with operating margins of 23.7 percent.

Consumer and Office

* Sales up 2.6 percent to $838 million.

* Local-currency sales declined 2.5 percent, largely due to slower sales in the U.S. retail market.

* Positive local-currency growth across Asia Pacific, Europe and Latin America.

* Recently named Partner of the Year by Target, Best Category Manager (Post-it(R) team) by Staples and Vendor of the Year by both Sam's Club in Brazil and Wal-Mart in Mexico.

* Post-it(R) Flags sponsored Oprah Winfrey's first-ever global Web event.

* Profits of $166 million, with operating margins of 19.8 percent.

Electro and Communications

* Sales increased 9.2 percent to $725 million.

* Local-currency growth of 3.3 percent, including one point from acquisitions.

* Positive sales growth in all major geographies, led by double-digit gains in Asia Pacific and Latin America.

* Double-digit local-currency sales growth in two largest businesses: Electrical Markets and Electronics Markets Materials.

* Electronic Solutions introduced a new lightweight, handheld electrostatic discharge detector.

* Announced a partnership with Companhia de Transmissao de Energia Electrica Paulista (CTEEP), one of Brazil's largest electric utilities, where 3M will install its Aluminum Conductor Composite Reinforced (ACCR) to upgrade key elements of the CTEEP transmission network.

* Operating profits up 13.6 percent to $146 million, with margins exceeding 20 percent, excluding special items in the first quarter of 2007.

Outlook

3M reiterated its 2008 earnings expectations. The company continues to expect full-year 2008 earnings to increase a minimum of 10 percent over 2007 earnings-per-share of $4.98, which excludes special items. 3M also expects operating margins of 22.5 to 23.5 percent and a tax rate of 31.5 to 32.5 percent for the year. The company expects annual capital expenditures to be in the range of $1.3 to $1.4 billion, down from a previous forecast of $1.4 to $1.5 billion.

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 fewer 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, 2007 (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 "Risk Factors" in Part I, Item 1A (Annual 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 recognized leader in research and development, 3M produces thousands of innovative products for dozens of diverse markets. 3M's core strength is applying its more than 40 distinct technology platforms - often in combination - to a wide array of customer needs. With $24 billion in sales, 3M employs 75,000 people worldwide and has operations in more than 60 countries. For more information, visit www.3M.com.

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* 3M's Display and Graphics segment created the Projection Systems Department by combining Visual Systems, 3M Precision Optics Inc. and the Company's mobile display technology. The new department will focus on bringing 3M technology to the projection market, providing customers with a centralized resource dedicated to developing differentiated solutions. Visual Systems (previously in the Electro and Communications segment) serves the world's office and education markets with overhead projectors and transparency films, as well as equipment and materials for electronic and multimedia presentations. 3M Precision Optics Inc. and the Company's mobile display technology were previously part of the Optical Systems Division within the Display and Graphics segment.

* 3M's Touch Systems business (previously in the Display and Graphics segment), which includes touch screens and touch monitors, was transferred to the Electro and Communications segment. Touch Systems brings synergistic technologies and strong alignment with 3M's electronics' divisions and markets.

* Certain adhesives and tapes in the Industrial Adhesives and Tapes business (Industrial and Transportation segment) were transferred to the Consumer and Office segment, primarily related to the Stationery Products business and Construction and Home Improvement business.

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3M had no special items for the three months ended March 31, 2008. For the three-months ended March 31, 2007, refer to the preceding notes (a) through (c) and the preceding reconciliation of operating income by business segment for a discussion and summary of items that impacted reported business segment operating income.