[caption id="attachment_9277" align="aligncenter" width="747"] Press Release[/caption]

• Multiyear alliance underpins the Novartis commitment to leverage data & artificial intelligence (AI) to transform how medicines are discovered, developed and commercialized
• Novartis to establish AI innovation lab to empower its associates to use AI across the business
• Joint research activities will include co-working environments on Novartis Campus (Switzerland), at Novartis Global Service Center in Dublin, and at Microsoft Research Lab (UK) ? starting with tackling personalized therapies for macular degeneration; cell & gene therapy; and drug design

Basel, and Redmond, October 1, 2019 ??Novartis today announced an important step in reimagining medicine by founding the Novartis AI innovation lab and by selecting Microsoft Corp. as its strategic AI and data-science partner for this effort. The new lab aims to significantly bolster Novartis AI capabilities from research through commercialization and help accelerate the discovery and development of transformative medicines for patients worldwide.

As part of the strategic collaboration announced, Novartis and Microsoft have committed to a multi-year research and development effort. This strategic alliance will focus on two core objectives:

• AI Empowerment. The lab will aim to bring the power of AI to the desktop of every Novartis associate. By bringing together vast amounts of Novartis datasets with Microsoft?s advanced AI solutions, the lab will aim to create new AI models and applications that can augment our associates? capabilities to take on the next wave of challenges in medicine.
• AI Exploration. The lab will use the power of AI to tackle some of the hardest computational challenges within the life sciences, starting with generative chemistry, image segmentation & analysis for smart and personalized delivery of therapies, and optimization of cell and gene therapies at scale.

Microsoft and Novartis will also collaborate to develop and apply next-generation AI platforms and processes that support future programs across these two focus areas. The overall investment will include project funding, subject-matter experts, technology, and tools.

Vas Narasimhan, CEO of Novartis, said, ?As Novartis continues evolving into a focused medicines company powered by advanced therapy platforms and data science, alliances like this will help us deliver on our purpose to reimagine medicine to improve and extend lives. Pairing our deep knowledge of human biology and medicine with Microsoft?s leading expertise in AI could transform the way we discover and develop medicines for the world.?

Microsoft CEO, Satya Nadella, added, ?Our strategic alliance will combine Novartis? life sciences expertise with the power of Azure and Microsoft AI. Together, we aim to address some of the biggest challenges facing the life sciences industry today and bring AI capabilities to every Novartis employee so they can unlock new insights as they work to discover new medicines and reduce patient costs.?

Novartis Data & Digital Novartis is focusing itself as a leading medicines company powered by advanced therapies and data science.?Going big on data and digital?is a key strategic pillar that helps Novartis realize that ambition. Data science and digital technologies allow the company to reimagine how it innovates in R&D, engages with patients and customers, and increases operational efficiencies. Novartis focuses its efforts around four strategic digital priority areas:

• Scaling 12 digital lighthouse projects: Build a strong foundation and jumpstart digital transformation
• Make Novartis digital: sharing, learning and talent acquisition
• Becoming the #1 partner in the tech ecosystem: bridge Novartis with external expertise
• Bolder moves: lead through future disruptive healthcare scenarios with large-scale partnerships

Disclaimer This press release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 that can generally be identified by words such as ?to transform,? ?multiyear,? ?commitment,? ?to found,? ?aims,? ?vision,? ?potential,? ?can,? ?will,? ?plan,? ?expect,? ?anticipate,? ?committed,? or similar terms, or regarding the development or adoption of potentially transformational technologies and business models and the collaboration with Microsoft; or by express or implied discussions regarding potential marketing approvals, new indications or labeling for the healthcare products described in this press release, or regarding potential future revenues from collaboration with Microsoft or such products. You should not place undue reliance on these statements. Such forward-looking statements are based on our current beliefs and expectations regarding future events, and are subject to significant known and unknown risks and uncertainties. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those set forth in the forward-looking statements. There can be no guarantee that the collaboration with Microsoft will achieve any or all of its intended goals or objectives, or in any particular time frame. Neither can there be any guarantee that any healthcare products described in this press release will be submitted or approved for sale or for any additional indications or labeling in any market, or at any particular time. Nor can there be any guarantee that the collaboration with Microsoft or such products will be commercially successful in the future. In particular, our expectations regarding the collaboration with Microsoft and such products could be affected by, among other things, uncertainties involved in the development or adoption of potentially transformational technologies and business models; the uncertainties inherent in research and development of new healthcare products, including clinical trial results and additional analysis of existing clinical data; regulatory actions or delays or government regulation generally, including potential regulatory actions or delays with respect to the collaboration with Microsoft; global trends toward health care cost containment, including government, payor and general public pricing and reimbursement pressures and requirements for increased pricing transparency; our ability to obtain or maintain proprietary intellectual property protection; the particular prescribing preferences of physicians and patients; general political, economic and trade conditions; safety, quality or manufacturing issues; potential or actual data security and data privacy breaches, or disruptions of our information technology systems, and other risks and factors referred to in Novartis AG?s current Form 20-F on file with the US Securities and Exchange Commission. Novartis is providing the information in this press release as of this date and does not undertake any obligation to update any forward-looking statements contained in this press release as a result of new information, future events or otherwise. About Novartis Novartis is reimagining medicine to improve and extend people?s lives. As a leading global medicines company, we use innovative science and digital technologies to create transformative treatments in areas of great medical need. In our quest to find new medicines, we consistently rank among the world?s top companies investing in research and development. Novartis products reach more than 750 million people globally and we are finding innovative ways to expand access to our latest treatments. About 108 000 people of more than 140 nationalities work at Novartis around the world. Find out more at?www.novartis.com. Novartis is on Twitter. Sign up to follow @Novartis at?http://twitter.com/novartisnews For Novartis multimedia content, please visit?www.novartis.com/news/media-library For questions about the site or required registration, please contact media.relations@novartis.com About Microsoft Microsoft (Nasdaq ?MSFT? @microsoft) enables digital transformation for the era of an intelligent cloud and an intelligent edge. Its mission is to empower every person and every organization on the planet to achieve more. Novartis Media Relations E-mail: media.relations@novartis.com