Lilly (Eli) & Co
5 March 2002


THIS IS A NON REGULATORY ANNOUNCEMENT


Refer to: (317) 433-9899 - Edward Sagebiel 
          (317) 276-3655 - Edward West


                 LILLY OFFERS $12 FLAT FEE PER PRESCRIPTION 
               FOR MILLIONS OF NEEDY SENIORS WITHOUT COVERAGE
    LillyAnswers SM Program Helps Medicare Beneficiaries Achieve Potential 
            Annual Savings on Average of $600 per Lilly Prescription


To assist those seniors and people with disabilities enrolled in Medicare, who
most need help in purchasing vital prescription drugs, Eli Lilly and Company
(NYSE: LLY) today announced the creation of the LillyAnswers patient assistance
program. The centerpiece of the program, the LillyAnswers card, allows low-
income seniors without prescription drug coverage to pay a flat fee of $12 for a
30-day supply of any Lilly retail drug 1. Eligible participants can save an
average of nearly $52.00 per 30-day prescription, or an average of $600 per year
per medication under Lilly's $12 fee. 2

LillyAnswers will provide eligible Medicare beneficiaries access to Lilly's
portfolio of retail products for illnesses such as osteoporosis, diabetes,
depression, and schizophrenia - chronic diseases that afflict nearly 18 million
or one of every two seniors 3. These products include Evista(R) for
osteoporosis, Humulin(R) and Humalog(R) for diabetes, Prozac(R) for depression,
and Zyprexa(R) for schizophrenia.

"LillyAnswers will provide real savings, right away, to Medicare beneficiaries
in the greatest need," said Sidney Taurel, chairman of the board, president and
CEO of Eli Lilly and Company. Seniors with an annual income below $18,000 per
individual or $24,000 per household, with no prescription drug coverage, are
eligible for the LillyAnswers program. It offers immediate help to the more than
five million Americans who qualify.


(1) Excludes controlled substances as well as products not distributed by retail
    pharmacies

(2) Based on 3/1/02 Internet survey sample of retail prices for common Lilly
    products at major U.S. pharmacy chains

(3) PhRMA New Medicines in Development for Older Americans, 2000


"Families, caregivers, communities and companies such as ours all recognize many
seniors need extra assistance at this time," commented Taurel. "While developing
innovative medicines is our mission, we know that individuals must have access
to those medicines in order for that innovation to be of any real value. We hope
and expect that Congress will enact federal legislation that provides broad
prescription drug coverage to all seniors. In the meantime, we decided to act
now in order to provide this assistance to individuals in need."

LillyAnswers builds on the company's long tradition of providing patient
assistance. In 2001, the LillyCares program provided more than $200 million of
products to over 370,000 seniors and uninsured patients. "Through LillyAnswers,
we simplified and amplified our commitment to seniors who need medication in
order to live longer, healthier, and more active lives," said Taurel.

In addition to offering a month's prescription for a flat $12 fee, LillyAnswers
will provide additional help to seniors and families facing the complex
challenges illness presents. Included in the LillyAnswers assistance package is
One Care Street TM, an award-winning program in which patients can build a
personalized and convenient information resource, complete with nutritional
guidance, exercise recommendations, alternative treatments and medicines, and
step-by-step health action guides.


Estimated Annual Cost Savings of Lilly Prescription Drugs with LillyAnswers
 
Prescription    Surveyed Retail          LillyAnswers       Annual Savings
Medication          Price*             $12 monthly fee
                                          annalized

Evista              $782.74                $144.00            $638.74

Humulin             $543.80                $144.00      =     $399.80

Prozac            $1,000.29                $144.00            $856.29

 
* Based on typical elderly doses and 3/1/02 Internet survey sample of retail
prices for common Lilly products at major U.S. pharmacy chains


"Lilly has taken an important step in helping the neediest of seniors gain
access to critical prescription drugs," said U.S. Health and Human Services
Secretary Tommy Thompson. "This innovative approach demonstrates the private
sector's willingness to address this important issue between now and the time we
implement Medicare reform. We thank them for stepping forward."

"Lilly believes drug coverage for all Medicare beneficiaries is long past due
and that its design is critical. We believe that market-based prescription drug
coverage for all Medicare beneficiaries is the best long-term solution to
provide all seniors access to the medicines they need," said Taurel. "We are
moving forward with LillyAnswers because even legislation enacted tomorrow will
take significant time - perhaps years - to implement. Between now and then, we
are committed to two things: to help seniors in greatest need and to do whatever
we can to support the speedy enactment of Medicare reform that benefits all
seniors."

"Seniors should not have to choose between paying for groceries or taking
prescription drugs," said U.S. Senator Evan Bayh (D-IN). "while we commit
ourselves to crafting a long-term, comprehensive solution, Lilly's effort is an
important first step toward helping seniors."

"It's befitting that the first company to develop and manufacture insulin would
offer assistance to our country's neediest seniors, too many of whom suffer from
diabetes," said John H. Graham IV, Chief Executive Officer, American Diabetes
Association. "Eli Lilly and Company has been a dedicated partner in our fight
against this disease. Today's announcement is another example of their continued
efforts."

The $12 flat fee charged to eligible seniors covers the cost of distributing
products and determining eligibility and only partially offsets pharmacists'
costs. "We appreciate the leadership and cooperation of America's pharmacists in
administering this important program for needy seniors," said Taurel.

Additionally, a wide range of government leaders and organizations have lent
their support to the LillyAnswers program.


HOW TO APPLY

Beginning March 5, Medicare-enrolled seniors and disabled who meet eligibility
requirements can apply for a LillyAnswers card by calling 1-877-RX-LILLY to
request an application. Program enrollment is free, and the application process
takes two to four weeks. Participating pharmacies will begin accepting the card
April 1, and once a patient receives a LillyAnswers card in the mail, he or she
will be covered for 12 months for Lilly retail products purchased at
participating pharmacies. LillyAnswers will be administered by Argus Health
Systems, Inc., an independent provider of pharmacy claims processing.

Lilly, a leading innovation-driven corporation, is developing a growing
portfolio of best-in-class pharmaceutical products by applying the latest
research from its own worldwide laboratories and from collaborations with
eminent scientific organizations. Headquartered in Indianapolis, Ind., Lilly
provides answers - through medicines and information - for some of the world's
most urgent medical needs.


                      This information is provided by RNS
            The company news service from the London Stock Exchange