Note 1 - Description of the Plan

General -- The Pfizer Savings Plan for Employees Resident in Puerto Rico (the Plan), originally adopted in 1990 as the Pfizer Savings and Investment Plan for Employees Resident in Puerto Rico is a defined contribution savings plan. As of December 31, 2003, participation in the Plan was open to all employees of Pfizer Pharmaceuticals LLC (the "Plan Sponsor"), and all employees of affiliates of the Plan Sponsor, who with permission of the Plan Sponsor or Pfizer Inc. (the "Parent") have adopted the Plan. Currently the Plan is open to Pfizer Pharmaceuticals LLC, Pfizer Pharmaceuticals, Inc., Pfizer Pharmaceuticals Limited, Pfizer Corporation and Park Davis & Co. (Puerto Rico Branch) (collectively, the "Company") employees in Puerto Rico who meet certain eligibility and participation requirements. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974, as amended.

Under Puerto Rico law, any qualified plan involving pre-tax contributions or involving cash or deferred arrangement must comply with one of two nondiscrimination tests.  For the fiscal years ended December 31, 2003 and 2002, the Plan complied with both discrimination tests.

Effective April 1, 2003, the Warner-Lambert Savings and Stock Plan for Colleagues in Puerto Rico (WLSPPR) was transferred along with its assets and liabilities into the Plan. As a result, the WLSPPR was merged into the Plan.  Simultaneously, the Plan changed its name from the Pfizer Savings and Investment Plan for Employees in Puerto Rico to the Pfizer Savings Plan for Employees Resident in Puerto Rico.

The following is a general description of certain provisions of the Plan. Participants should refer to the Plan document for a complete description of the Plan.

Contributions -- Each participant may make contributions on an after-tax basis and/or a before-tax basis (that is, choose to reduce his or her compensation and have the Company contribute on his or her behalf). Before-tax contributions are subject to certain restrictions under the Puerto Rico Internal Revenue Code of 1994, as amended. Contributions of up to 3% of compensation are matched 100% by the Company and the next 3% is matched 50%.  Employee contributions in excess of 6% are not matched. Participants who are eligible employees are permitted to rollover into the Plan eligible distributions from other qualified employer sponsored savings plans and conduit IRAs.

The trustee of the Plan is Banco Popular de Puerto Rico, and the custodian of the Plan, Northern Trust Company, also manages investments in certain investment funds and therefore, are deemed a related party. The Plan's trust agreement provides that any portion of any of the funds may, pending its permanent investment or distribution, be invested in short-term investments.

Eligibility and Vesting -- Generally, all employees of the Company who are resident in Puerto Rico are eligible to enroll in the Plan on their date of hire. Generally, a participant is immediately vested in the full value of his or her accounts (i.e., participant's and employer's contributions).

Loans to Participants -- Plan participants are permitted to borrow against their vested account balance. The minimum amount a participant may borrow is $1,000 and the maximum amount is the lesser of 50% of the vested account balance reduced by any current outstanding loan balance, or $50,000, reduced by the highest outstanding loan balance in the preceding 12 months.

Under the terms of the Plan, loans must be repaid within five years, unless the funds are used to purchase a primary residence. Primary residence loans must be repaid over 6 to 15 years at the participant's option. The interest rate on all loans is based on the prime rate plus 1%. Interest paid by the participant is credited to the participant's account.

Benefit Payments -- Generally, upon separation from service, retirement or disability, a participant may elect to receive a lump sum distribution currently or at any time up to the later of 13 months after termination or age 65, subject to the provisions of the Plan.  In the event of a participant's death, a spouse beneficiary generally may elect payment currently or defer payments until the later of 13 months from the date of death or when the participant would have reached age 65.  A nonspouse beneficiary generally may defer payment up until 13 months from the date of death.

Withdrawals -- A participant in the Plan may withdraw all or part of his or her account balance subject to the provisions of the Plan.

Plan Termination -- The Plan Sponsor and the Parent expect to continue the Plan indefinitely, but necessarily reserves the right to amend, suspend or discontinue it in whole or in part, at any time, by action of the Plan Sponsor's Board of Managers, the Board of Directors of the Parent or the authorized designee(s) of either of them.  In the event of termination of the Plan, each participant shall receive the full value of their account balance as though they had retired as of the date of such termination.  No part of the invested assets established pursuant to the Plan will at any time revert to the Company.

Note 2 - Summary of Significant Accounting Policies

Basis of Accounting -- The financial statements of the Plan are prepared on the accrual basis of accounting.

Use of Estimates -- The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and changes therein and disclosure of contingent assets and liabilities at the date of the financial statements.  Actual results could differ from those estimates.

Investment Valuation -- Company common stock is valued at the closing market price on the last business day of the year. Collective trust funds and mutual funds are recorded at fair value based on the closing market prices of the underlying investments held by the fund on the last business day of the year. Interest-bearing deposits are recorded at cost, which approximates fair value.

The Plan's investments include funds that invest in various types of investment securities and in various companies within various markets. Investment securities, including Pfizer Inc. common stock, are exposed to several risks such as interest rate, market, and credit risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of the investments will occur in the near term and that such changes could materially affect the amounts reported in the Plan's financial statements and schedules.

Security Transactions -- Purchases and sales of securities are reflected on a trade-date basis.

Net Appreciation/(Depreciation) in Fair Value of Investments -- Net appreciation/(depreciation) in fair value of investments includes realized and unrealized gains and losses. Realized gains and losses on sales of investments represent the difference between the net proceeds and the cost of the investments (average cost if less than the entire investment is sold). Unrealized gains and losses of investments represent the difference between the cost of the investments and their fair value at the end of the year. Additionally, it reflects the reversal of the unrealized gains and losses as of the end of the prior year.

Loan Fund -- The Loan Fund maintains participant loan activity. Interest earned on participant loans is not included in this fund.

Net Investment Income -- Dividend income is recorded on the ex‑dividend date. Interest income is recorded as earned. Interest income from participant loans is recorded by the Trustee as earned in the nonparticipant and participant directed funds in the same proportion as the original loan issuance.

Note 3 - Transfers Into the Plan

Effective April 1, 2003, Warner-Lambert Savings and Stock Plan for Colleagues in Puerto Rico (WLSSP) was merged into the Plan. As a result, net assets of WLSSP participants in the amount of $38,692,859 were transferred into the Plan. In March 2003, the Company sold the Adams confectionary business and Schick-Wilkinson Sword shaving products business. As a result, in 2003, net assets of Plan participants who were employees of these businesses in the amount of $604,730 were transferred out of the Plan.

Note 4 - Income Taxes

No provision has been made for Puerto Rico income tax in reliance upon a determination letter dated March 25, 1992 issued by the Puerto Rico Department of Treasury ("Treasury"), with an effective date of January 1, 1990 which states that the Plan meets the requirements of Section 1165(a) of the Puerto Rico Internal Revenue Code of 1994, (the "Code") as amended, and that the trust established thereunder is entitled to exemption.

Effective January 1, 1997 and October 1, 1998, the Plan was amended and a separate determination letter dated September 24, 1999 was obtained from the Treasury, which states that the Plan's qualified status was not affected due to such amendments. The 2003 restated Plan is in the process of being submitted before the Treasury and a favorable outcome is expected. Plan administrator and the Plan's legal and tax counsel believe that the Plan is designed and is currently being operated in compliance with all the applicable requirements. Therefore, no provision has been made for Puerto Rico income taxes.

Contributions made to the Plan by the Company, including before-tax contributions made on the employees' behalf by the Company and the appreciation on all funds in the employees' accounts, are not taxable to the employees under the Code while these amounts remain in the Plan and the Plan maintains its qualified status.

Note 5 -- Plan Administration

The U.S. Savings Plan Committee of the Plan monitors and reports on the selection and termination of the trustee and investment managers and on the investment activity and performance.

Note 6 -- Significant Investments

The following investments represent 5% or more of the Plan's net assets available for plan benefits.

Note 7 - Administrative Costs

Except for certain investment management fees, all costs and expenses of administering the Plan are paid and absorbed by the Company.

Note 8 - Net Appreciation/(Depreciation) in Fair Value of Investments

The Plan's investments (including gains and losses on investments sold, as well as held during the year) appreciated/(depreciated) in value as follows: