Novartis Finance S.A. completed the placement

of EUR 750,000,000 Guaranteed Notes due 2023, EUR 750,000,000 Guaranteed Notes

due 2030 and EUR 750,000,000 Guaranteed Notes due 2038. The 2023 Notes were

issued at 99.655% of their principal amount with an interest of 0.500% and will

mature on 14 August 2023 at their nominal value. The 2030 Notes were issued at

99.957% of their principal amount with an interest of 1.375% and will mature on

14 August 2030. The 2038 Notes were issued at 99.217% of their principal amount

with an interest of 1.700% and will mature on 14 August 2038. The Notes are

guaranteed by Novartis AG. They have been provisionally admitted to trading at

the SIX Swiss Exchange and are expected to be listed there as well.

Novartis Finance S.A. completed the placement

of EUR 750,000,000 Guaranteed Notes due 2023, EUR 750,000,000 Guaranteed Notes

due 2030 and EUR 750,000,000 Guaranteed Notes due 2038. The 2023 Notes were

issued at 99.655% of their principal amount with an interest of 0.500% and will

mature on 14 August 2023 at their nominal value. The 2030 Notes were issued at

99.957% of their principal amount with an interest of 1.375% and will mature on

14 August 2030. The 2038 Notes were issued at 99.217% of their principal amount

with an interest of 1.700% and will mature on 14 August 2038. The Notes are

guaranteed by Novartis AG. They have been provisionally admitted to trading at

the SIX Swiss Exchange and are expected to be listed there as well.

Barclays Bank PLC, BNP Paribas and Deutsche

Bank AG, London Branch acted as Joint Lead Managers and HSBC Bank plc, Société

Générale and The Royal Bank of Scotland plc (trading as NatWest Markets) as

Co-Managers.

Bär & Karrer acted as Swiss legal advisor

to Novartis in this transaction. The team included Thomas U. Reutter, Alexander

von Jeinsen and Daniel Raun (all Capital Markets) as well as Susanne Schreiber

and Cyrill Diefenbacher (both Tax).