Aventis Reports Full-Year Results for 2002.

Business Editors

STRASBOURG, France--(BUSINESS WIRE)--Feb. 5, 2003

Aventis, (AVE)(AVEP.PA)(AVEP.FK)

- Aventis meets ambitious growth targets for third consecutive year despite a more challenging market and industry environment in 2002: Core business sales activity rises 11.6% and net income climbs 28% Core business EPS rises 27% to EUR 2.62 (EUR 3.31 before goodwill amortization) U.S. sales activity increases 21.4%, strategic brands sales activity rises 28.3%

- Product leadership reinforced in key therapeutic areas and complemented by successful introduction of future growth drivers: Lantus and Ketek continue successful roll-out in key markets Aventis plans to submit several new drugs for approval in 2003/2004 New products expected to contribute significantly to sales growth between 2002 and 2007

- Aventis expects continued strong earnings growth in 2003 and beyond Financial flexibility to further strengthen the pharmaceutical business of Aventis

Aventis today reported consolidated group net sales of EUR 20.622 billion for 2002 compared with EUR 22.941 billion in 2001. This decline in group sales is attributable to structural changes and the divestment of non-core activities, mainly Aventis CropScience in the course of 2002. Group net income rose to EUR 2.091 billion compared to EUR 1.505 billion in 2001. Consolidated earnings per share (EPS) for the Aventis group increased to EUR 2.64 in 2002 compared to EUR 1.91 in 2001. These consolidated results include contributions from non-core activities.

Strong performance despite a more challenging market environment: Core business sales activity increases by 11.6%, net income climbs 28%

In 2002, the core business recorded net sales of EUR 17.591 billion, an increase of 11.6% on an activity basis (excluding currency effects) compared to EUR 16.576 billion in 2001. Gross margin increased to 74.1% from 73.3% in 2001. EBITA increased by 19% to EUR 4.505 billion, while the EBITA margin rose 2.8 percentage points to 25.6%. Net income grew 28% to EUR 2.081 billion from EUR 1.630 billion, while EPS grew 27% to EUR 2.62 from EUR 2.07. (The core business of Aventis includes prescription drugs, human vaccines and corporate activities and the earnings contribution from the 50% equity interest in the animal health joint venture Merial).

Sales of strategic brands rise 28.3% on an activity basis in 2002 and represent 54.6% of total prescription drug sales

Prescription drugs recorded sales of EUR 16.026 billion in 2002, an activity increase of 11.1% compared to sales of EUR 15.168 billion in 2001. Sales of strategic brands, a group of key brand-name prescription drugs, rose 28.3% on an activity basis to EUR 8.751 billion and accounted for 54.6% of total prescription drug sales, up from 47.3% in 2001.

The human vaccines business generated sales of EUR 1.580 billion, representing a sharp increase of 16.3% compared to 2001.

Aventis delivers on ambitious targets for third consecutive year

"2002 was a very successful year for Aventis in a challenging environment: We were able to maintain the strong growth momentum in our core business and to meet our ambitious targets for the third consecutive year since the creation of Aventis. This was the result of the strong performance of our strategic brands and vaccines as well as our success in key geographic markets, led by the United States. At the same time, we transformed Aventis into a pure pharmaceutical company, simplified our structure and formed a new management team," said Igor Landau, Chairman of the Management Board.

Based on the financial results of 2002, which were reviewed by the Supervisory Board at its meeting on February 4, 2003, the Management Board will propose to the Annual General Meeting of Shareholders on April 17, 2003, a dividend of EUR 0.70 per share to shareholders of record as of April 22, 2003. The total dividend payment, which is scheduled for distribution on May 22, 2003, would be approximately EUR 560 million.

Aventis expects continued strong earnings growth in 2003 and beyond

"For 2003 and beyond, the pharmaceutical industry will continue to face several challenges, such as additional healthcare cost-containment efforts and more demanding approval procedures for new products. However, the mid- to long-term growth trends for the industry are intact: There is a tremendous need for better therapies for serious, chronic or life-threatening diseases - such as cancer, cardiovascular conditions or diabetes - while new technologies and a better understanding of many diseases will enable us to offer patients better treatments," said Igor Landau.

"At Aventis, our existing strategic brands and vaccines, which address critical medical needs, have significant potential for incremental growth. A number of new products in key therapeutic areas will also contribute substantially to our future performance. We therefore expect to continue to deliver strong earnings growth in 2003 and beyond. For 2003, sales growth for our core business is expected to be in the high single digits, excluding the impact of currency, while earnings per share for the core business are expected to achieve a growth rate in the mid to high teens. For 2004, we expect a similar profile for growth as in 2003" Igor Landau concluded.

Strong cash flow and debt-reduction provide financial flexibility to further strengthen pharmaceutical business

Cash flow from core business activities as well as the proceeds from divestments and the deconsolidation of debt associated with the divested businesses led to a significant reduction in net debt to EUR 3.452 billion at the end of 2002 compared to EUR 9.196 billion at the end of 2001. "In 2003, we are targeting a strong operating cash flow in our core business, supplemented by divestitures of non-core activities. This should help us to further deleverage our balance sheet and provide us with the financial flexibility to strengthen our pharmaceutical business," said Patrick Langlois, Vice Chairman of the Management Board and Chief Financial Officer of Aventis.

U.S. sales activity rises 21.4 % and represents 39% of core business sales

In the United States, core business sales rose 21.4% on an activity basis to EUR 6.859 billion in 2002 compared to EUR 5.964 billion in 2001. The United States accounted for 39% of total core business sales compared to 36% in 2001 and 33% in 2000.

Despite the negative impact of cost containment measures in key European countries, Aventis was able to expand sales, thanks to the growth of its strategic brands in the major markets. This was due to the successful introduction of innovative drugs, such as the novel antibiotic Ketek (telithromycin) in France and the anti-diabetic agent Lantus (insulin glargine) in the United Kingdom. In France, the biggest European market for Aventis, sales activity rose by 4.7% to EUR 2.295 billion and in Germany by 2.9% to EUR 1.086 billion. In Italy, sales activity increased 7.2% to EUR 628 million and in the United Kingdom by 21.4% to EUR 448 million.

In Japan, the world's second-largest pharmaceutical market, core business sales activity increased 2.7% to EUR 923 million as the performance of the strategic brands more than compensated for the declining contribution of older products.

Product leadership in key therapeutic areas complemented by successful introduction of future growth drivers

In 2002, Aventis achieved leadership positions in key therapeutic areas with its strategic brands, such as:

- Allegra/Telfast (fexofenadine), for the treatment of

allergies, delivered strong growth with sales of EUR 2.030

billion, an activity increase of 22.1%. In the U.S., sales

activity increased by 22.2% to EUR 1.730 billion in 2002 and

Allegra became the leading non-sedating prescription

antihistamine. Since the onset of OTC competition in November

2002, the number of new prescriptions and total prescriptions

of Allegra increased compared to the same period in 2001.

Trials are underway in the United States to investigate the

use of Allegra in a wide range of disease states, including

year round (perennial) allergies and indoor allergies.

Clinical trials are also in progress looking at Allegra as a

potential treatment for mild to moderate asthma.

In the pending patent litigation against Barr Laboratories and

Impax, a trial date has been set for September 2004. Therefore

the potential emergence of any generic form of fexofenadine is

considered unlikely prior to the fourth quarter 2004, unless

all issues pending in the case are decided by a summary

judgment adverse to Aventis in the absence of a trial.

- Lovenox/Clexane (enoxaparin sodium) for the prophylaxis and

treatment of arterial and venous thrombosis, including deep

vein thrombosis (DVT), unstable angina (UA), and non-Q-wave

myocardial infarction (NQMI), generated sales of EUR 1.563

billion, an activity increase of 13.3%. In the U.S. sales of

Lovenox increased 10% on an activity basis to EUR 1.013

billion in 2002. This deceleration of growth is related mainly

to a FDA warning letter issued early 2002 concerning patients

with prosthetic heart valves and adjustments to trade

inventory levels. Aventis has since submitted a revised

labelling to the FDA and strengthened its sales force efforts

to support the future growth of Lovenox in its key

indications.

Lovenox/Clexane is the leading antithrombotic agent in terms

of sales and number of patients treated worldwide and in the

U.S. Lovenox further advanced its leading position for two key

indications - DVT medical prophylaxis and unstable angina - in

the course of 2002. A number of treatment guidelines and

studies further differentiated and supported Lovenox in 2002.

- Taxotere (docetaxel), for the treatment of locally advanced or

metastatic breast cancer and non-small-cell lung cancer

(NSCLC), achieved sales of EUR 1.261 billion, an increase of

32.7% compared to 2001. In 2002 and early 2003, Aventis

obtained additional approvals reinforcing the leading position

of this cancer treatment.

Taxotere is already the leading second-line treatment for

non-small cell lung cancer (NSCLC) with nearly 50 percent of

the estimated EUR 400 million second-line market. At the end

of 2002, the use of Taxotere was approved in the U.S. and in

the EU in combination with cisplatin for first-line treatment

of NSCLC in patients who have not received prior chemotherapy.

This approval gives Taxotere access to the estimated EUR 1.5

to EUR 1.7 billion first-line treatment market for NSCLC.

For the treatment of breast cancer, the European Commission

approved in January 2003 the use of Taxotere in combination

with Xeloda (capecitabine) for patients with locally advanced

or metastatic cancer after failure of chemotherapy. In

addition, interim results from a major international study

presented at the American Society of Clinical Oncology meeting

in May demonstrated the potential benefits of the use of

Taxotere in adjuvant treatment of early-stage breast cancer.

Aventis intends to submit this indication for approval in

2003.

Other development activities are underway in different types

of cancer, such as for gastric, prostate as well as head and

neck cancer, to extend the unique profile and contribute to

the future growth of Taxotere.

- Delix/Tritace (ramipril), an ACE inhibitor approved for the

treatment of hypertension, heart failure and for preventing

stroke, heart attack and cardiovascular death in patients at

risk for cardiovascular events, generated sales of EUR 923

million in 2002, an activity increase of 34.2% compared to

2001. Delix/Tritace is expected to become the next blockbuster

drug of Aventis.

- The vaccines business of Aventis Pasteur performed strongly

again in 2002 with sales rising to EUR 1.580 billion, rising

16.3% on an activity basis compared to EUR 1.425 billion in

2001.

Pediatric combination vaccines recorded the highest sales for

the vaccines business of EUR 495 million (+21.1% activity

variance) in line with the strong performance of the entire

portfolio of pediatric vaccines of Aventis Pasteur. Polio

vaccines increased to EUR 304 million (+11.9% activity

variance). Sales of flu vaccines were in line with the

previous year, amounting to EUR 458 million (+1.5% activity

variance) despite the market reentry of a competitor who had

stopped manufacturing flu vaccines in 2001. (Product sales

figures include non-consolidated sales in Europe by Aventis

Pasteur MSD, a joint venture with Merck & Co.)

The strong growth of the vaccines business was driven by the

U.S. market where sales totaled EUR 972 million in 2002, an

increase of 21.2% on an activity basis compared to 2001.

Daptacel, an acellular pertussis vaccine against diphtheria,

tetanus and pertussis was licensed and launched in the U.S. in

May 2002. Aventis Pasteur also addressed the severe shortage

of an adult tetanus and diphtheria vaccine in the U.S. after a

leading manufacturer had withdrawn unexpectedly from the

market in 2001.

In 2003, Aventis Pasteur will invest more than EUR 150 million

to strengthen its industrial capacities and to further support

its future growth potential.

New products to contribute significantly to sales growth between 2002 and 2007

In 2002, Aventis also made substantial progress in strengthening its portfolio of strategic brands, with the approval of new products in key markets. "Our new products such as Lantus, Ketek and the once-a-week dosage form of Actonel showed strong uptake in the markets in which they were introduced. We expect that together with the other drugs which we intend to launch during the coming years, they should contribute significantly to sales growth between 2002 and 2007," said Richard Markham, Vice Chairman of the Management Board and Chief Operating Officer of Aventis.

In 2002, the key new growth drivers for Aventis were:

- Lantus (insulin glargine), for the treatment of type 1 and

type 2 diabetes, achieved sales of EUR 299 million in 2002

compared to EUR 94 million in 2001. Lantus is the first and

only basal insulin that provides 24 hour insulin coverage with

one easily administered dose at any time of day. Lantus has

been shown to help diabetes patients establish improved

metabolic control with less nocturnal hypoglycemia compared to

NPH insulin. Lantus has the potential to fundamentally

transform the treatment of diabetes and improve the lives of

patients through an aggressive treat-to-target approach for

HbA1c levels, convenient dosing, and earlier insulinization.

Lantus is currently available in the U.S., Germany, the UK and

Ireland, and the global launch of Lantus will continue through

2003 and 2004.

- Ketek (telithromycin), is the first ketolide antibiotic for

the treatment of upper and lower respiratory tract infections,

including those caused by bacteria resistant to some commonly

used antibiotics. In the course of 2002, Ketek was launched in

all major EU and Latin American markets. At the beginning of

January 2003, the FDA Scientific Advisory Committee

recommended the approval of Ketek tablets (800 mg oral dose

once daily) for the treatment of acute exacerbations of

chronic bronchitis, acute sinusitis and community-acquired

pneumonia as well as for the use in treating penicillin- and

macrolide-resistant strains of S. pneumoniae in

community-acquired pneumonia and acute sinusitis. On January

24, 2003, Aventis received an approvable letter from the FDA.

In the approvable letter the FDA requested that Aventis

provide additional analyses and information prior to marketing

approval. Additional clinical studies were not requested.

- Actonel (risedronate sodium), for the treatment and prevention

of osteoporosis, is being co-developed and co-marketed by

Aventis and Procter & Gamble through the Alliance for Better

Bone Health. In 2002, Actonel generated combined sales for

Aventis and Procter & Gamble of EUR 539 million compared to

EUR 309 million in 2001. Since the launch of the 35-mg

once-a-week dosage form of Actonel in the U.S. in June 2002,

Actonel's share of new prescriptions has increased to

17.5% from 12.3%. In December 2002, the once-a-week form was

approved in 15 European countries, including Sweden, France,

Germany, Italy, Spain and the UK for the treatment of

postmenopausal osteoporosis to reduce the risk of vertebral

fractures as well as to reduce the risk of hip fractures. The

launch of this more convenient dosage form is expected to take

place in most European countries throughout 2003.

Aventis expects to submit several new drugs for approval in 2003/2004

In 2002, Aventis invested EUR 3.141 billion (or 17.9% of sales) in research and development in its core business compared to EUR 2.891 billion in 2001. Aventis has currently more than 40 compounds in clinical development, including over 25 in early-stage development and more than 15 in late-stage development. In 2002, Aventis had 13 submissions and 11 approvals in the U.S., the EU and Japan.

Aventis intends to submit several new drugs for approval in the U.S. and in Europe in 2003 and 2004, including:

- Alvesco (ciclesonide) is an inhaled corticosteroid for the

treatment of chronic persistent asthma for patients 4 years of

age and older, which Aventis is co-developing in the United

States with Altana Pharma. Alvesco is a potentially important

advance in asthma therapy due to excellent efficacy, low side

effects, convenience and unique

pharmacokinetic/pharmacodynamic profile. Aventis is currently

conducting phase III studies for the NDA submission in the

U.S. and expects to submit Alvesco in the second half of 2003.

- Insulin glulisine (1964), a fast-acting insulin analog for

type 1and type 2 diabetes intended to broaden and complement

the Aventis diabetes portfolio. The product is on track for

regulatory submissions in the U.S. and EU in 2003. The

international development program for insulin glulisine is

designed to achieve competitive labeling at launch, including

flexible mealtime dosing and a pump application for continuous

subcutaneous infusion.

- Genasense (oblimersen sodium) is a novel targeted drug

candidate currently in multiple phase II and phase III

clinical trials to test its ability to optimize the

effectiveness of chemotherapy in patients with both

hematologic cancers and solid tumors. In April 2002, Aventis

and Genta Inc. agreed to jointly develop and commercialize

this innovative antisense oligonucleotide, which works by

specifically inhibiting the production of Bcl-2, a protein

made by cancer cells that is thought to block therapy-induced

cell death.

- Pentacel, a new acellular pertussis combination vaccine as a

primary vaccination against pertussis, diphtheria, tetanus,

polio and Haemophilus influenzae type b in infants. This

vaccine is currently in phase III studies in infants and the

U.S. launch is targeted for 2005.

- Menactra, a conjugate vaccine for the prevention of

meningococcal meningitis with enhanced immunogenicity and

stronger and longer lasting responses through conjugate

technology. This vaccine is also in phase III studies in

adolescents and is targeted to be launched in the U.S. in

2005.

In addition to these products, other promising projects currently in late-stage development include:

Flavopiridol, an innovative chemotherapeutic agent that induces cell cycle arrest and cell death through the inhibition of cyclin-dependent kinases, a key enzyme system controlling cell growth. Flavopiridol has demonstrated synergistic effects in combination with other cytotoxic agents and has also shown antitumor activity in early clinical studies. Aventis is initiating phase III trials for Flavopiridol in combination with the chemotherapy agents Taxotere (targeting lung cancer) and Campto (targeting colon cancer); regulatory submissions are planned for 2005/2006.

Exubera, a novel approach to delivering insulin in a dry powder formulation by inhalation. Exubera is being developed for patients with type 1 and type 2 diabetes through a collaboration with Pfizer. Phase III efficacy trials have been completed and additional studies are underway to strengthen the long-term safety data. Regulatory filings in the U.S. and in Europe are being planned pending more comprehensive data analysis.

Merial

In 2002, sales by the animal health business Merial - a 50-50 joint venture with Merck & Co. accounted for using the equity method - rose 4% on an activity basis to EUR 1.825 billion. Sales by Merial are not consolidated in the Aventis core business sales.

Non-core activities

In total, sales from non-core activities declined to EUR 3.066 billion in 2002 compared to EUR 6.439 billion in 2001, while the earnings contribution was almost neutral. The decrease in sales is mainly attributable to divestment of the Animal Nutrition business and Aventis CropScience in the first half of 2002.

Aventis is dedicated to improving life by treating and preventing human disease through the discovery and development of innovative prescription drugs for important therapeutic areas as well as human vaccines. Aventis corporate headquarters are in Strasbourg, France. For more information, please visit: www.aventis.com

Statements in this news release other than factual or historical information, including but not limited to statements of or relating to Aventis' financial projections, plans and objectives for future operations, predictions of future product sales or economic performance, and assumptions underlying or relating to any such statements, are forward-looking statements subject to risks and uncertainties. Actual results could differ materially depending on factors such as the availability of resources, the timing and effects of regulatory actions, the success of new products, the strength of competition, the success of research and development efforts, the outcome of significant litigation, the effectiveness of patent protection, the effects of currency exchange fluctuations, and other factors. Estimates of future product sales can be particularly subject to uncertainty due to the multitude of factors that could cause actual results to differ materially. Such factors include, but are not limited to, adverse outcomes in patent infringement litigation; entry into the market of new products, or of generic or over-the-counter versions of Aventis' products or of competing products; undesirable or untimely regulatory or legislative actions, such as forced conversion of prescription drugs to over-the-counter status; inability to obtain regulatory approval to market drugs for certain indications; and limitations on revenues imposed by volume purchasers, government entities, and by operation of law. Aventis disclaims any obligation to revise or update any such forward-looking statement. Additional information regarding risks and uncertainties is set forth in the current Annual Report on Form 20-F of Aventis on file with the Securities and Exchange Commission.

Brand names appearing in italics throughout this document are trademarks of Aventis, and/or its affiliates, with the exception of trademarks that may be used under license by Aventis and/or its affiliates, such as Actonel, a trademark of Procter & Gamble Pharmaceuticals, Alvesco, a trademark of Altana Pharma AG, Campto, a trademark of Kabushiki Kaisha Yakult Honsha, Copaxone, a trademark of Teva Pharmaceuticals Industries, Exubera, a trademark of Pfizer Products Inc, Genasense, a trademark of Genta Inc, Tavanic, a trademark of Daiichi Pharmaceutical Co Ltd, as well as trademarks owned by competitors, such as Xeloda, a trademark of the Roche Group.

Provisional timing of upcoming events:

Week of April 28, 2003               Report on Q1 results
April 17, 2003                       Aventis Annual General Meeting
Week of July 28, 2003                Report on Q2 results
Week of October 27, 2003             Report on Q3 results

Note to editors:

The annual results will be presented at an Aventis press conference in London today at 9:30 a.m. (10:30 a.m. CET), to be followed by an Aventis analyst conference in London at 12:30 a.m. GMT (1:30 p.m. CET). A digital media center with speeches, presentations, press photos as well as a webcast of t he press and analyst conferences will be available on the Internet at: www.aventis.com/2002results