Construction Begins on Lilly's New Biotech Plant in Carolina, Puerto Rico.

Business Editors, Health/Medical Writers

Eli Lilly and Company (NYSE:LLY)

World-class $450 million facility to create hundreds of new jobs,

while meeting future needs of patients with diabetes

At its groundbreaking ceremony today, Eli Lilly and Company management said its new manufacturing facility -- to be one of the world's largest biotech projects -- represents not only 450 new jobs but also a new beginning for the company's operations in Puerto Rico. The new facility will manufacture Humalog(R), Lilly's lifesaving biotechnology product derived from recombinant DNA that is used worldwide in the treatment of diabetes.

"With the construction of this facility, we begin a new era in our successful operations in Puerto Rico," said Maria Crowe, president of Lilly's manufacturing operations on the island. "We established our first manufacturing plant in 1965, and since then have developed a strong base of skilled and highly motivated employees who produce Evista(R), Zyprexa(R), Prozac(R) and other Lilly products. Today we reach yet another milestone for our Puerto Rico operations as we begin construction on this state-of-the-art facility to manufacture Humalog."

Crowe explained that effective communication, a win-win partnership approach, and a relationship of mutual respect with local government officials and the Carolina Municipality were influential in the decision to expand in the northern municipality.

Governor Sila Calderon, Economic Development and Commerce Secretary Ramon Cantero Frau, Puerto Rico Industrial Development Company (PRIDCO) Executive Director William Riefkol and Carolina Mayor Jose Aponte de la Torre joined Lilly officials on the grounds of the company's operations in Carolina.

"We are pleased with Lilly's decision to build this new facility and strengthen its presence in Puerto Rico," said Governor Calderon. "Lilly's investment not only positively affects the island's economy but provides important career opportunities for many Puerto Rican residents and professionals."

The plans for the new facility have been revised since the initial announcement of the project in April 2001. Since then, the company has acquired property, filed permits, completed conceptual design and begun hiring new employees. Additionally, the construction design has been expanded to include a dedicated warehouse facility, a utility building, an administration building and an independent laboratory facility for the site -- thus increasing the total investment from $250 million to $450 million and raising the number of new employees from 300 to 450.

Lilly Puerto Rico currently employs approximately 1,100 workers at three plants in Carolina and Mayaguez and 220 in its sales and marketing offices in San Juan. New jobs to be created as a result of the new facility include positions for biochemists, microbiologists, protein scientists, manufacturing operations, and administrative personnel. Local hiring began in mid-2001 with some 75 new employees hired to date. Hiring will continue over the next two years until the 300,000-square-foot facility becomes fully operational by late 2004.

People interested in applying for positions should send their resumes via e-mail to [e-mail].

The World Health Organization is predicting an increase in the number of people with diabetes around the world from 150 million to more than 300 million by the year 2025. According to the Centers for Disease Control and Prevention, within the United States, there are now more than 16 million people with diabetes. Diabetes is the seventh leading cause of death among Americans, contributing to the deaths of nearly 200,000 people a year.

The American Diabetes Association reports that Puerto Rico suffers from one of the highest incidence rates of diabetes in the world with more than 450,000 of its four million citizens diagnosed with the disease.

"Diabetes touches so many lives," said Pedro Granadillo, Lilly senior vice president. "We all know a family member, friend or coworker who suffers from diabetes. Unfortunately, the global prevalence of the disease will grow in the coming years. This new facility demonstrates Lilly's commitment to people with diabetes by providing them with the Lilly insulin products they will need to manage their illness."

Lilly's commitment to diabetes care spans more than eight decades. In 1923, the company introduced Iletin(R), the world's first commercially available insulin. In what experts in the field called the most significant breakthrough in diabetes care since the 1920s, Lilly again made history in 1982 with the introduction of Humulin(R), insulin identical to that produced by the human body. Humulin is the first human-health-care product created using recombinant DNA technology. Humalog, a rapid-acting insulin product that offers greater dosing convenience to improve blood-sugar control was launched in 1996.

To access Lilly's diabetes care web page, go to www.lillydiabetes.com or www.lillydiabetesenespanol.com for the Spanish version.

In May 2002, Lilly announced plans to build a $425 million insulin manufacturing facility in Prince William County, Virginia. The facility will formulate, fill and package all forms of Humalog and Humulin.

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, Indiana, Lilly provides answers -- through medicines and information -- for some of the world's most urgent medical needs. Additional information about Lilly is available at www.lilly.com.

Humalog(R)(insulin lispro, Lilly)

Humulin(R)(human insulin of recombinant DNA origin, Lilly)

Iletin(R)(insulin, Lilly)